Luxury hotels will continue to dominate the local hotel sector as they will have a majority share in the supply of new rooms. Qatar hotels are expected to add 14,150 rooms through 2022 and around 80% of those rooms will be reserved for five and four star hotels.
“It is estimated that 14,150 keys are in the works until 2022 and 80% of the expected supply is designated with a rating of 4 or 5 stars,” noted a report released yesterday by real estate consultancy ValuStrat. “Assuming there are no construction delays, the total supply could exceed 44,000 rooms by the end of 2022,” the report said.
Showing resilience in a difficult situation caused by the COVID-19 pandemic, Qatar’s hotel sector added nearly 1,558 keys in the first six months of 2021, according to the report.
Major projects unveiled in the first half of the year include Hilton Salwa Beach Resort, Jouri Murwab Hotel, Cielo Hotel Lusail, Bentley Luxury Hotel & Suites, Banyan Tree Doha at La Cigale Mushaireb and Marriott Executive Apartments City Center. Hyatt Residences West Bay has been renamed Marriott Executive Apartments City Center.
The total supply of the hotel market in the first half of 2020 was 29,858 (22,139 hotel keys and 7,719 hotel apartments). Qatar’s hotel sector has shown signs of recovery. The average occupancy rate was estimated at 60 percent in the first half of this year, up 7 percent over the same period last year. Likewise, the average ADR (Average Daily Rates) and RevPAR (Revenue Per Available Room) increased by 16% and 24% respectively in the first half of this year compared to the same period in 2020.
The increase in occupancy rate and revenue per available room in hotels is a result of government measures, hotel initiatives and increased economic activity in the country.
The occupancy rate is only expected to improve over the next few months as COVID-19 cases continue to decline and more people are getting vaccinated. This will instill greater confidence in citizens and residents and encourage them to enjoy summer vacations in local hotels. The year 2020 has started with an optimistic outlook with a 30% year-over-year increase in visitor volume in the first two months of the year compared to 2019.