Qatar’s Hospitality Sector Remains Resilient

​Doha: Qatar’s hospitality industry continues to show a healthy recovery and event-driven resilience, according to the newly released Q2 2025 Hotel Performance Index (K-HPI) from KPMG Qatar, yesterday.

The index reveals that despite the absence of mega-events like the FIFA World Cup, Qatar’s hotel sector is stabilising at performance levels higher than pre-COVID benchmarks.

The K-HPI, which uses Q1 2019 as its baseline (Index = 100), evaluates performance across all key accommodation categories from 1-star hotels to 5-star properties, as well as deluxe and standard hotel apartments.

By Q2 2025, the index stood at 118.8, confirming that the sector remains 18.8 percent above its pre-pandemic benchmark.

“This tells us that Qatar’s tourism economy is becoming less reliant on rare mega-events and more grounded in consistent regional demand and repeat visitation,” said Mariem Faridh, a Doha-based hospitality analyst at Gulf Hospitality Insights.

Following a dramatic dip in 2020 due to the COVID-19 pandemic, Qatar’s hotel sector began a gradual recovery in 2021.

The K-HPI data shows a major spike in Q4 2022, when the FIFA World Cup drove the index to an extraordinary 314.0, reflecting record-breaking hotel occupancy and pricing.

After the World Cup, the market cooled in 2023, returning to levels near the long-term average. However, Q1 2024 saw a fresh surge to 139.9, fueled by the AFC Asian Cup and an influx of regional tourists.

This spike has since tapered slightly but remains above historical averages in Q2 2025.

“The World Cup was a historic high, but what’s remarkable is the sustained performance after that peak,” said another expert, Marcus Delano.

“The current 118.8 reading is healthy, and the trajectory is positive.”

Analysts say the current momentum is not being driven solely by sports but also by Qatar’s broader tourism diversification efforts, including medical tourism, business travel, and cultural events.

The Qatar National Tourism Council has introduced new promotional campaigns targeting the GCC, Europe, and Asia-Pacific markets.

“We are seeing more three and four-star hotels performing steadily, especially in Lusail and Al Wakra. That points to growth in mid-market travel, not just premium visitors,” noted Delano.

KPMG’s report projects that RevPAR (Revenue per Available Room) will continue trending upward in the second half of 2025, bolstered by upcoming events such as the Doha Jewellery and Watches Exhibition, the World Horticultural Expo 2026 (preparatory phase), and a growing number of MICE (Meetings, Incentives, Conferences, and Exhibitions) activities.

The development of new branded properties, especially deluxe hotel apartments, is also reshaping guest preferences.

“Guests are staying longer and looking for value-added experiences,” said Dr. Layan Sharif, a hospitality trends consultant.

The expert also noted that “Apartment hotels and blended service models are closing the gap between leisure and business travel.”

The Q2 2025 K-HPI data signals a maturing hotel market, with sustained growth, more diversified guest profiles, and a stronger mid-tier segment.

Researchers stress that the sector appears to have found its footing and its formula for long-term stability.

Dr. Sharif further added, “Qatar’s hotel industry has learned to breath on its own, and that’s the sign of a truly sustainable tourism economy.”