Qatar’s hotel industry occupancy is forecast to expand 1.8% and ADR by 3.3%, leading to an expected 5.2% rise in RevPAR.

By Santhosh V Perumal/Business Reporter

Qatar’s hotel industry may see a “positive” growth in both occupancy and average daily rate (ADR) to drive revenue per available room (RevPAR) up by 5.2% in 2014 and 5.4% in 2015, according to an international consultant PricewaterhouseCoopers (PwC).

Occupancy is forecast to expand 1.8% and ADR by 3.3%, leading to an expected 5.2% in RevPAR, PwC said in a report. In 2015, the occupancy is poised to grow 1.9% and ADRs by 3.4%, resulting in an expected 5.4% jump in RevPAR.

Finding that hotels recorded 1.3mn visitors in 2013, which is an increase of 8.3% from 2012, the report said ongoing rate reductions resulting from high levels of competition has led to a decline in the ADR during 2012-2013 by almost 20%, which in turn has driven down the RevPAR by 11%.

However, considering the extent of supply that came into Doha during 2013, occupancy levels recovered very strongly in 2013 with rates of 65.8%, the highest since 2009, reflecting the increasing number of leisure visitors that the city is attracting.

The new hotels to be completed by 2014 include Four Seasons at The Pearl, Hilton Garden Inn Doha Al Sadd, Pullman West Bay, Kempinski Marsa Malaz and Hotel Missonu Doha, adding more than 3,000 additional keys, it found. “These hotels will be adding an additional approximately 3,200 rooms to the city,” it added.

Driven by the goal of honouring commitments related to the FIFA World Cup 2022, Doha is witnessing a massive infrastructure transformation with major developments in planning or under construction.

The real estate and infrastructure projects to be completed in the coming years include the Lusail Development, Barwa Commercial Avenue, Doha Festival City, Doha Metro and others which are expected to boost tourism in the city. Some 4,759 rooms are scheduled for completion during 2014 and 2015, along with the addition of 188 apartments, 392 residences and 25 suites.

“Doha will be hosting a large number of venues for the 2022 FIFA World Cup, which will have a positive impact on tourism and hotel values,” the report said, adding they would also benefit from extensive infrastructural initiatives associated with the World Cup preparation.

PwC said demand for hotel accommodation is anticipated to increase as more visitors are expected to visit Doha in the run-up to the FIFA World Cup 2022.

Highlighting that Qatar has planned for the development of several hotels in Doha in the next five years, the report said the country is planning to enhance the number of hotel rooms to 95,000 by 2022 from the current 15,000.

In addition, the new Hamad International Airport, which was opened last month, and the expansion of Qatar Airways are likely to positively impact tourism of Doha, it found.

With the country investing heavily in every sector of the economy, including sports, Qatar is seen as an investment hub that is attracting companies from all around the world to come and be part of the overall growth of the sports and tourism industry, PwC said.