Qatar hotels at bursting as World Cup fever grips nation: Report

“Amidst the increasing global recession fears, Qatar’s economic outlook remains positive bolstered by the increasing level of gas output along with the FIFA World Cup tournament, which will positively influence the overall economy and lead to higher spending,” the report said.

Although the average occupancy rate dropped by 8.4 percentage points, the average daily rate (ADR) saw an increase of 14.7 percent, the report said, with the revenue per available room (RevPAR) rate marginally dropping by 0.1 percent.

The average occupancy rate also a decrease of 14.6 percentage points. Over the same period, the ADR rate increased by 13.4 percent, whilst the average RevPAR dropped by 3.2 percent, the report said adding that Qatar’s occupancy rate is expected to reach close to full occupancy by late December.

“The extraordinary growth in Qatar’s built environment over recent years has impacted market performance over this period and this trend has continued in most cases into 2022, where we have seen softening in performance indicators across most sectors. Although we expect, and to a degree have already seen, an uptick in performance in the hospitality and residential sectors around the World Cup tournament, we forecast this trend to ease after this period,” CBRE’s MENA head of research Taimur Khan said.

Qatar is also set to open 10,799 additional rooms in 2023, “where some of this upcoming supply is an overspill from the supply which was expected to be delivered in 2022,” the report said.

CBRE also said that although the industry’s KPIs are anticipated to decelerate post-World Cup, the infrastructure reinforcements undertaken in recent years will likely provide ongoing support to the industry going forward.

Khan added: “Given recently revised real estate regulations, easing of business and new visa regulations, we expect the fundamentals to improve and support the sector’s performance in the longer-run.”