Qatar witnessed a substantial increase in tourist arrivals, boosting hotel performance throughout last year. The hospitality real estate sector has been boosted significantly by the increase in tourist arrivals in 2024.
The number of hotel keys in Qatar has reached record levels. An increase of 1,240 keys during 2024 saw the total number increase to 40,405 by the end of December. Supply remains dominated by luxury hotels, according to the latest report.
According to Qatar Tourism, 19,410 hotel rooms are classified as 5 Star, while only 3,038 hotel rooms are classified as 3 Star or below. There are currently 9,925 hotel apartments in Qatar.
"We estimate that more than 80 per cent of these apartments are categorised as 'Deluxe', with many situated within 5-star hotel establishments." While the pace of new development has slowed, some notable additions to Qatar's hotel supply recently have been recently: The OQ Hotel in Lusail and West Walk Retaj Hotel in Al Waab.
The annual visitors to Qatar surpassed five million for the first time in 2024. This represents a 28 per cent increase from the previous record of 3.9 million visitors in 2023. The GCC represented 41 per cent of the 5.08 million visitors to Qatar in 2024, with 23 per cent originating from Europe. 37 per cent of visitors arrived by road, highlighting that Saudi Arabia still represents Qatar's largest single tourist market, according to Qatar Tourism.
The increase in tourist arrivals, coupled with the slow delivery of new supplies, has positively impacted performance metrics in the hotel sector. According to the report, occupancy rates for Q4 climbed to 77 per cent, up from 69 per cent in the fourth quarter of 2023. The increase in occupancy rates towards year-end contributed to an overall hotel occupancy of 69 per cent for 2024 compared to 58 per cent in 2023.
The increase in visitors and occupancy rates has boosted the Average Daily Rates generated by hotel rooms, which generally trended downwards between 2015 and 2022 as the supply of rooms in Qatar grew. The overall Average Daily Rate for hotel rooms during the fourth quarter was QR463 – a year-on-year increase of 12 per cent, according to data.
Improved hotel performance metrics in the last year reflect the success of Qatar Tourism's international marketing campaign since the World Cup and illustrate the benefit of Qatar's focus on hosting international business and leisure events, the number of which continues to increase annually.
