Qatar’s hospitality sector witnessed solid growth during the first half of the year as 718 more hotel rooms came online thus taking the total supply to 41,463 rooms, to global property consultancy Knight Frank.
Approximately 60% of this supply consists of international branded hotels. Now recognised as a leading regional lifestyle and leisure destination, Qatar is on track to reach 44,562 hotel rooms by the end of 2027, in line with the government’s national tourism strategy, it stated.
Occupancy rates edged up by 0.3% to 70.7% over the past 12 months. Although the average daily rate softened by 0.2% to QR454 ($124.2), RevPAR (revenue per available room) increased by 2.9% to QR321 ($87.8).
Oussama El Kadiri, Partner – Head of Hospitality, Tourism & Leisure Advisory, said: "Occupancy has continued to grow across all segments, despite a slight increase in supply, driven by demand from regional tourists and business travellers. Upcoming events, such as the launch of Art Basel in 2026 and Formula 1 Qatar in November 2025, and enhanced airlift, are expected to boost international tourism."
"The country’s commitment to diversifying tourism experiences with high-end shopping, cultural centres such as Msheireb and Katara, and active promotion of conferences and exhibitions, is solidifying Qatar’s position as an international hospitality hub," he stated.
This is also reflected in the retail market, where prime lifestyle assets continue to command the highest rents, averaging QR 272 psm per month. These prime formats benefit from high footfall, strong branding and integrated food and beverage (F&B) offerings that enhance the customer experience.
Similarly, lifestyle F&B units remained resilient with rents reaching QR231 psm per month, underpinned by consumer demand for dining and experiential destinations.
The tourism landscape remains healthy, following a 24.6% surge in visitors in 2024 to 5.05 million, up from 4 million in 2023. This growth is being fuelled by increased regional promotional campaigns and the continued development of cultural, retail and sports tourism offerings.
New destination retail venues in Lusail, Msheireb and Doha Port, have increased competition across all retail segments.
However, developments offering curated tenant mixes, leisure integration and public realm enhancements have outperformed in terms of both occupancy and footfall, stated El Kadiri.
"Looking ahead, rental growth will depend on operators’ ability to adapt to evolving consumption patterns; growing demand for mixed-use, walkable destinations; and the role of placemaking to create experience-led environments that attract and retain tenants and consumers," he added.-TradeArabia News Service
