By Peter Alagos/Business Reporter
Growth in Qatar’s hotel and serviced apartment segment is forecast to climb 27% to reach a total of ‘23,086 keys’ by the end of 2016, an industry expert from Colliers International said.
Speaking at the Arabian Hotel Investment Conference business briefing, in partnership with Katara Hospitality, at the Sharq Village & Spa Resort in Doha, Filippo Sona, director, head (Hotels) at Colliers International Mena, said Doha’s hotel supply totalled 15,760 keys, and another 2,366 keys in the serviced apartment supply in 2015.
Citing the Doha Full Year 2015 Review from Colliers International, Sona said a total of 1,460 keys opened in 2015 (from 14,300 in 2014), despite a slowdown on corporate demand due to low oil prices.
“Doha is predominantly a business destination, with the corporate segment accounting for more than 60% of the hotel demand. Due to a dip in oil prices and slowing economic activity, Doha experienced a slow growth in corporate demand in 2015. This trend is expected to continue in the coming year, with Doha’s hotel RevPAR (revenue per available room) forecast to decrease by 4% in 2016,” Sona said.
He said the market presents development opportunities within the midscale hotels and serviced apartments. “The limited presence of these asset classes in Doha offers owners and investors a potential opportunity to target this market gap,” he said.
According to the report by Colliers International, supply is expected to grow at a compound annual growth rate (CAGR) of 9%, with Msheireb Downtown Regeneration project representing an addition of 655 keys in 2016.
The report further said serviced apartments present an opportunity to attract more expatriates to the country, and would also appeal to leisure GCC guests.
There is also a market for branded mid-scale hotels among price-conscious corporate guests. However, oil fluctuations in the global market can have a negative impact on corporate demand, it added.
Lusail City was also forecast to create a new destination and attraction for tourists, potentially causing a mid-to-long-term increase in leisure demand. “The shift of activity north of the city centre will particularly benefit hotels near the West Bay Lagoon and The Pearl,” the report said.
In the long-term, the World Cup was forecast to “drastically increase leisure demand and awareness of Doha,” particularly leading up to the competition.
The report also emphasised that “it is important for future hotel developments to consider the fundamental long-term demand characteristics and competitive landscape of Doha beyond the years leading up to the event.”
Citing a report by online hotel and travel data provider, Olery, Sona said due to “high quality,” five-star hotels in West Bay Lagoon scored 85 out of 100 in the Guest Experience Index (GEI) rating for December 2015, followed by West Bay and Diplomatic Area (84 for four-star hotels), and Doha Airport and city centre (77, three-star hotels).
The performance of Doha’s luxury spa market remained stable in 2015, with the average revenue per treatment of QR562 and spas achieving an average daily sale of 23 treatments, according to Sona.
“The overall spa market showed greater resilience towards market fluctuations compared to hotel room performance… as additional hotel supply continues to grow, competition within the spa market will likely also increase as new hotels introduce fresh and differentiated spa concepts. In the short term, however, anecdotal comments by operators show a positive outlook for the spa market performance in 2016,” he added.
LEAVE A COMMENT Your email address will not be published. Required fields are marked*
French Naval College graduated 14 Qatari officers
Gulf institutions continue to be bullish on Qatar bourse
Qatar First Bank makes QR1.2mn net profit in 4th quarter of 2020
Qatar seen to play key role in Islamic finance growth in non-Muslim countries: CMU-Q experts
G20 moves towards consensus on IMF reserve firepower boost
Judge in Google case disturbed that even ‘incognito’ users are tracked
Indian equities slump with rupee and bonds amid broad Asia selloff
Asian bourses tumble as interest rate hike fears intensify
India exits recession amid risks from resurgence in virus cases