Hospitality Sector Poised for Steady Gains

Doha: Qatar’s hospitality sector is showing strong momentum as the country experiences a surge in tourism.

With visitor numbers on the rise and a limited pipeline of new hotel developments, industry analysts expect occupancy rates and revenue metrics to strengthen in the coming months.

A recent study by Cushman & Wakefield revealed that the combination of growing demand and controlled supply positions the market for steady gains throughout the year.

Overall hotel capacity expanded to 41,240 rooms by June, with new additions including the Andaz in West Bay and the Rosewood in Lusail Marina, as per Qatar Tourism’s latest data.

Within the sector, 1 to 3 star hotels recorded the highest occupancy at 82.9 percent, likely due to limited supply in comparison to four and five-star hotels.

Serviced apartments also performed well, achieving 80.04 percent occupancy between April and June.

Average daily rates rose by 6 percent during the second quarter (Q2) of 2025, while year-to-date performance fell slightly by 1 percent year-on-year (YoY).

Revenue per available room increased by 2.5 percent to QR321, reflecting steady revenue growth.

“The Cushman & Wakefield report highlights that Qatar’s hotel sector is benefiting from both strategic infrastructure development and a growing diversity of international visitors,” said Daniel, a regional hospitality leader.

 “With the pipeline of new hotels in Doha remaining limited, occupancy and revenue metrics could continue to improve if inbound tourism sustains its current momentum.”

On the other hand, Qatar’s tourism sector maintained a robust performance in the first half of 2025, as Qatar Tourism reported that average hotel occupancies reached 71 percent, a 2-percentage point increase from H 1 2024.

The country also welcomed a record-breaking 2.6 million international visitors in the first six months of the year, marking a 3 percent YoY increase.

Visitors from other GCC countries made up the largest share at 36 percent, followed by Europe by 26 percent, Asia and Oceania by 22 percent, the Americas by 7 percent, other Arab countries by 7 percent, and Africa by 2 percent.

Key developments supporting long-term growth include the GCC Unified Tourist Visa, which is set to facilitate multi-country Gulf travel from late 2025, and expanded air connectivity to Australia through the Qatar Airways–Virgin Australia partnership, expected to increase visitor numbers and extend stays.

Despite strong performance, Cushman & Wakefield notes that private sector appetite for new hotel development remains subdued.

Researchers suggest that this is unlikely to change until sustained increases in average daily rates demonstrate clear profitability.

The report further reinforces Qatar’s position as a leading regional tourism hub, with steady growth in visitors, robust hotel performance, and initiatives aimed at enhancing long-term tourism potential.