Doha, Qatar: Recent data from the authorities reveal that occupancy levels range between 44 percent and 58 percent during the first seven months of the year among standard category hotels, eventuating on adding more keys for leisure purposes.
A report by Qatar’s first homegrown real estate project, Hapondo asserts that hotels are also competing for occupancy. “Hotels for long stays is not a new concept, but its popularity has increased in Qatar recently. Hotels [in Qatar] are known for high-quality service and convenience, which appeal to several tenants,” it said.
On average, the deluxe category outperformed the standard keys ranging between 54 percent and 77 percent during Q3 2023.
Analysts at the research platform remarked, “In anticipation of the FIFA World Cup Qatar 2022 and the country’s future tourism prospects, the hotel construction boom over the last few years has led to a significant increase in hotel rooms.”
Currently, however, the hotel keys have increased significantly with an estimation of 12,109 five-star hotel rooms, 2,219 four-star hotel rooms, and 9,470 three-star hotel rooms, respectively.
The data highlights that the hospitality market has attracted travelers worldwide for longer periods of stay at an affordable daily rate to address their high vacancies.
On the other hand, hotel apartments still tend to be even more expensive than regular furnished apartments. The statistics provided in the report signal that one-bedroom apartments in Al Sadd amount to QR142 per sq m per month or QR8,500 per month in median price.
However, the gap is smaller in Qatar’s prime locations such as Najma offering QR108 vs QR96, indicating that the hotels are competing head-on with apartments in terms of cost.
The report further adds that “It is premium that some tenants are willing to pay because of service. Hotels offer housekeeping, laundry, concierge, and security services that many furnished apartments cannot provide.”
Meanwhile, from the sales perspective, various branded residencies are welcomed to the market including St. Regis and Four Seasons, which are operated by hospitality companies at The Pearl Qatar. However, these residential products offer the same promise of high-quality service for owners.
As per data provided by Knight Frank’s Global Branded Residencies 2023 report, over 10 percent of all luxury branded residence projects across the globe are in the Middle Eastern region, while 60 percent of the projects are yet to be completed.
