Qatar’s hotel market set for growth with 845 new keys in 2025, double-digit revenue gains – ValuSTrat

QATAR – Qatar has scheduled the delivery of 845 new hotel keys in 2025, predominantly in the 4- and 5-star categories, according to research firm ValuStrat.

This addition boosts the country’s total hospitality stock to approximately 41,240 keys. Of the total stock, 68% are 4- to 5-star hotels, 7.7% fall within the 1- to 3-star category, and 24.3% comprise hotel apartments.

Average Daily Rate (ADR) reached QR453 in Q2 2025, a 6.5% year-on-year increase. Revenue Per Available Room (RevPAR) jumped 21.2% to QR322 (US$88), buoyed by events like Toy and Food Festivals, exhibitions, and MICE activities.

Occupancy rate rose to 71%, marking a 13.2% yearly increase. Visitor numbers increased by 1.1 million from the previous quarter, hitting 2.6 million in H1 2025, with GCC travelers accounting for 36%.

Hotel segment-wise ADR was QR653.5 9 (US$178.9) for 5-star, QR187.2(US$51.2) for 4-star, and QR233.2(US$63.8) for 3-star hotels.

Qatar’s retail market totaled 5.5 million sq m gross leasable area (GLA), split between 2.5 million GLA organized retail and 3 million GLA unorganized retail.

Retail rental rates varied. Median monthly rates for shopping centers fell 2% QoQ to QR178.8(US$171) per sq m and 5.9% YoY.

Street retail rents inside Doha remained stable QoQ but fell 5% YoY. Outside Doha, rents declined slightly by 1% QoQ and 3% YoY.

Notable street retail drops of nearly 10% YoY were observed in specific areas such as Al Sadd and Fereej Bin Mahmoud.

Qatar’s upscale hotel focus and steady tourism growth position the country as a developing luxury and business destination.

These performance trends sustain optimism for continued sector expansion and diversified investment opportunities.

Qatar’s hotel market has seen massive investment momentum, with an estimated US$7 billion slated for planned hotel room supply delivery by 2025.

This pace reflects a robust commitment to expanding its hospitality infrastructure as part of the National Tourism Sector Strategy 2030.

The country aims to grow its hospitality stock by 89% to over 56,000 keys by 2025, significantly enhancing its luxury offering as 76% of planned rooms target the 4- and 5-star segments.

Key global hotel operators, including Marriott and Hilton, are expanding to seize Qatar’s growing market, with international operators controlling over 62% of keys by 2025.

Investments also focus on transforming Qatar into a business and leisure hub, with flagship projects like Lusail Marina highlighting upscale developments. This strong investment foundation underpins Qatar’s ongoing hotel performance gains and tourism growth.

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