Qatar’s hospitality sector is in full swing, and it’s not slowing down anytime soon. With tourism numbers on the rise and a limited supply of new hotels, the demand for rooms is higher than ever. According to a recent study by Cushman & Wakefield, this combination of growing interest and limited hotel supply is expected to keep boosting hotel occupancy rates and revenue for the rest of the year.
More Rooms, More Visitors, Better Performance
By mid-2025, Qatar’s hotels had expanded to 41,240 rooms, thanks to new additions like the Andaz in West Bay and the Rosewood in Lusail Marina. Despite these additions, demand is still strong, especially in 1 to 3-star hotels, which had the highest occupancy rates at 82.9%. This is likely due to fewer of these budget-friendly hotels available compared to luxury ones. Serviced apartments also saw great performance, with occupancy reaching 80.04% between April and June.
On the revenue side, things are looking positive too. Average daily rates rose by 6% in the second quarter of 2025, and revenue per available room (RevPAR) rose by 2.5%, reaching QR321. It’s clear that the industry is not just surviving but thriving.
More Tourists, More Business
Qatar’s tourism has been strong as well. The country welcomed 2.6 million international visitors in the first half of 2025, a 3% increase from the previous year. One of the main reasons for this growth is the upcoming GCC Unified Tourist Visa, which will make it easier for people to travel to multiple Gulf countries. There’s also expanded air connectivity to Australia, thanks to a new partnership between Qatar Airways and Virgin Australia, which will bring in even more tourists.
Why Are New Hotels Slow to Come?
While tourism is booming, the private sector is being cautious about new hotel developments. Experts believe that the pace of new hotel projects won’t pick up until there’s clearer evidence that raising average daily rates will lead to long-term profitability. So, for now, the focus is on making the most of the existing hotels and the influx of visitors.
Looking Ahead: A Bright Future
With strong tourism, limited new hotel supply, and a focus on strategic development, Qatar’s hospitality sector is set for a bright future. The country’s tourism performance, coupled with steady revenue growth, means the industry will continue to flourish in the coming years.
Qatar’s tourism and hospitality scene is on the rise, and with more visitors coming in every year, the country is positioning itself as a regional tourism hub. The outlook for the sector is promising, and it will be exciting to see how it evolves in the coming years.
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