Qatar’s hospitality industry witnesses growth trajectory in hotel numbers and occupancy
Qatar’s hospitality industry posted solid gains in the first half of the year, with hotel supply and occupancy both
on the rise, according to global property consultancy Knight Frank.
An additional 718 hotel rooms came
online in H1 2025, pushing total supply to 41,463 rooms, about 60 percent of
which are operated by international brands. The country is on track to reach
44,562 rooms by the end of 2027 in line with its national tourism strategy.
Occupancy levels edged up 0.3
percentage points to 70.7% over the past 12 months. While the average daily
rate (ADR) dipped 0.2% to QR454 ($124.2), revenue per available room (RevPAR)
rose 2.9% to QR321 ($87.8).
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ranks first in tourism growth in the region
“Occupancy has continued to grow
across all segments, despite a slight increase in supply, driven by demand from
regional tourists and business travelers,” said Oussama El Kadiri, Partner –
Head of Hospitality, Tourism & Leisure Advisory at Knight Frank. “Upcoming
events such as Formula 1 Qatar in November 2025 and the launch of Art Basel in
2026, supported by enhanced air connectivity, will further boost international
arrivals.”
Qatar’s tourism diversification
strategy—anchored in high-end retail, cultural destinations such as Msheireb
and Katara, and the active promotion of conferences and exhibitions—is reinforcing
the country’s status as a global hospitality hub.
The strength of the hospitality
sector is mirrored in retail. Prime lifestyle assets continue to command the
highest rents at QR272 per sq. m. per month, supported by high footfall and
integrated dining and entertainment offerings. Lifestyle food and beverage
(F&B) units have also proven resilient, with average rents at QR231 per sq.
m. per month amid robust consumer demand for experiential dining.
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visitors central to Qatar’s tourism growth
The broader tourism landscape
remains buoyant. Qatar welcomed 5.05 million visitors in 2024, up 24.6% from
2023, with growth driven by regional campaigns and expanding cultural, retail
and sports tourism. New destination retail developments in Lusail, Msheireb and
Doha Port have intensified competition, though projects with curated tenant
mixes and leisure integration continue to outperform in occupancy and footfall.
“Looking ahead, rental growth will
depend on operators’ ability to adapt to evolving consumption patterns,
increasing demand for mixed-use, walkable destinations, and the importance of
placemaking to create experience-led environments,” El Kadiri added.
Source: Zawya