By Sarah Townsend
DTZ's Q2 report warns new supply in hospitality market has started to impact performance
Qatar hotel revenues dropped by 17.8 percent over the year to April 2016, and occupancy rates plummeted by 64 percent, according to figures from DTZ’s Q2 Qatar Market Report.
Almost 5,000 hotel keys have been added to Qatar’s stock over the past 18 months and the additional supply has started to impact performance in the second quarter of 2016, DTZ’s report said.
Occupancy levels were down 64 percent in April 2016 compared to 72 percent in the same month in 2015, while average daily rates saw a year-on-year decline of 6.5 percent from QR551 ($151) in April 2015 to QR515 ($141) in April 2016.
And revenue per available room (RevPAR) fell by 17.8 percent from QR399 ($109.6) in April 2015 to QR328 ($90.1) in April 2016.
The supply of new hotels in Qatar crossed 20,700 by the start of 2016, figures from Qatar Tourism Authority (QTA) show, and DTZ’s report shows that Doha has 123 hotel and hotel apartment complexes at present – 88 percent of which is categorised as either four-star or five-star.
DTZ associate director of consulting and research, Johnny Archer, told a media event in Doha to mark the launch of the report on Wednesday: “This definitely is a challenge in the hospitality market over the next few years in terms of trying to maintain and increase occupancy levels and performance measures.”
He was quoted in local media as saying: “This trend is likely to continue in the short term as 85 percent of upcoming establishments in the development pipeline fall within these high-end categories, although 30 percent of the development pipeline has yet to be classified.”
QTA figures show that the number of tourist arrivals in Qatar increased by 3.7 percent year-on-year in 2015, DTZ’s report said. However, despite this rise, overall hotel occupancy rates declined by 2 percent to 71 percent in 2015.
Citing figures from Qatar’s Ministry of Development Planning and Statistics, DTZ said occupancy rates dropped by a further 8 percent to 64 percent compared to the same month in 2015.
Qatar aims to increase overall annual tourist arrivals to 7 million by 2030.