Qatar’s hospitality real estate sector has experienced significant growth, driven by a surge in tourist arrivals in 2024. According to recent reports, the number of hotel keys in Qatar reached record levels, with a notable increase of 1,240 keys during the year, bringing the total to 40,405 by the end of December. The supply remains dominated by luxury hotels, with 19,410 of the 40,405 hotel rooms classified as 5-star.
Qatar Tourism reported that the country saw more than 5 million visitors in 2024, a 28% increase compared to 2023. The largest portion of visitors came from the GCC (41%), with 23% from Europe, and 37% arrived by road, with Saudi Arabia being Qatar’s largest single tourist market.
The surge in visitors has had a positive impact on the hotel sector, improving key performance metrics. Hotel occupancy rates increased to 77% in Q4 2024, up from 69% in Q4 2023, contributing to a year-end average of 69% occupancy for the year. This increase has also led to a rise in Average Daily Rates (ADR), which saw a 12% year-on-year increase in Q4, reaching QR463 per room.
While new hotel development has slowed, there have been notable additions, such as The OQ Hotel in Lusail and the West Walk Retaj Hotel in Al Waab. The growth in tourism and the improved performance of Qatar’s hospitality sector reflect the success of Qatar Tourism’s international marketing efforts and the country’s increasing prominence as a global destination for business and leisure events, including high-profile events like the FIFA World Cup and the Geneva International Motor Show.
