Qatar could see its hospitality market grow by 89% to over 56,000 hotel keys by 2025.

The figures are according to research carried out by global property consultancy firm, Knight Frank, with the delivery of the planned hotel room supply forecast to cost approximately USD7 billion.

Adam Stewart, the company’s Partner – Head of Qatar, said: “Officially, around 30,000 keys had been delivered by the end of 2021, and we estimate that another 3,800 keys will have been delivered by the time the World Cup commences. “Looking beyond the World Cup, however, reveals some incredible ambitions. The tourism and hospitality sectors are expected to contribute 12% of GDP by 2030, making them worth about USD55 billion, by which time tourist arrivals are forecast to be closing in on 7 million.”

Faisal Durrani, Partner – Head of Middle East Research, Knight Frank, added: “While there is palpable excitement in Doha as the FIFA World Cup Qatar 2022 draws near, for the country’s hospitality sector the best is yet to come. Indeed, with nearly 27,000 hotel keys expected to be delivered in the next three years, there will be a phenomenal change in Qatar’s hotel offering by the end of 2025. The near doubling in capacity to over 56,000 rooms will be in a post-World Cup environment and comes as the country prepares for an anticipated visitor influx following heightened interest in Qatar once the excitement of the World Cup subsides. “

Indeed, with new theme park attractions planned in Lusail such as the new Winter Wonderland and Aquatar on Qetaifan Island, which promises to deliver the world’s tallest waterslide, the seeds of a vibrant tourism and hospitality market are starting to take shape.”

The research also revealed that a change in the peninsula’s top hotel operators is expected by 2025, with IHG, for instance, dropping out of the top three by number of rooms under management. Faisal Durrani explained: “The Marriott Group will continue to fortify its position as Qatar’s leading hotel operator, with about 8,800 rooms under management by 2025, up 152% on today. Accor and Hilton Hotels & Resorts will round off the top three, together controlling nearly 10,000 rooms, or a third of total hotel keys. The big change however will be in the form of IHG slipping to fourth place, with about 3,500 rooms, from second place today.”

International operators will also claim a larger market share by 2025 up to at least 62% compared with the current 59% and that is without the 17% of new rooms as yet unallocated to an operator.

Knight Frank’s analysis shows that 76% of planned rooms will be classed as either four or five stars, up from the current 69%, and only 14% will be graded at three star or lower. However, Faisal Durrani said this could lead to operators targeting budget travellers with options such as all inclusive. ✤

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