Qatar's Hotel Boom: Surpassing 40,000 Rooms by 2024 Amidst Preparations

Qatar's Hotel Boom: Surpassing 40,000 Rooms by 2024 Amidst Preparations By A Robin - December 17, 2023
Old Doha Port

Old Doha Port

The cumulative hotel room supply in the country has exceeded 38,000 and is poised to surpass 40,000 rooms by 2024 with the completion of various ongoing projects, as per a research report.

Over the past 18 months, the total room supply has witnessed a growth of more than 25%, primarily fueled by Qatar's imperative to offer accommodation for the FIFA World Cup Qatar 2022, according to a quarterly real estate report by Cushman and Wakefield.

The report outlines upcoming hotels slated to open in the near future, including Andaz Doha, Four Seasons Resort and Residences at the Pearl Island, NH Collection Oasis Doha Hotel, Rixos Qetaifan North, Rosewood Doha, and Waldorf Astoria West Bay.

The report noted that despite stable occupancy rates in Q3 compared to the same period last year, there has been a significant increase in supply. Occupancy rates for July and August in Q3 2023 were recorded at 52% and 53%, respectively, while the same period in 2022 reported rates of 55% and 52%.

The average daily rates for the entire hotel sector decreased from QR440 to QR404 in Q3, signaling a growing value for guests as a larger number of hotels compete for patronage.

The report highlighted the post-pandemic recovery in the international tourism market, with arrivals notably higher in Qatar this year. However, the increased hotel supply has impacted the performance metrics of many establishments, creating a notable disparity between higher-quality entities outperforming others in the sector.

Meanwhile, Qatar's strategic focus on expanding international sporting and conference events has contributed to increased occupancy during the quarter, alongside various tournaments and events.

By A Robin - December 17, 2023

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