Qatar's hotel market occupancy rate is forecast to close at 66% at the end of 2016, according to a new Colliers International report despite the drop in both occupancy and ADR which resulted in a 25% decline RevPAR.
The quarterly report titled: ‘Doha Q3 2016 Review' said that the country had seen a growth of more than 1,500 keys over the last one year and “more significant supply is expected in the next few years however, a delay in the supply will see more time for the market to absorb the existing supply.”
When it comes to supply, the current market is dominated by five-star hotels and out of the future supply in the pipeline 44% are five-star hotels and 48% are four-star hotels.
But the Qatar hospitality sector is suffering from the after effects of the economic slowdown.
Hotelier Middle East earlier reported that a report from Ernst & Young (EY) has said that the Middle East’s hospitality sector may be impacted over the coming year by the recent fall in oil prices. In Downtown Doha about 18% of future hotel supply has seen a delay of about two years.