Qatar’s hospitality sector recorded an estimated 71% occupancy rate in the first quarter of 2025, according to real estate consultancy ValuStrat. The country welcomed approximately 1.5 million visitors during the period, with GCC nationals comprising 36% of the total.

ValuStrat’s latest country report highlighted tourism as a key contributor to economic activity in Q1, supported by seasonal events including Eid celebrations, jewelry exhibitions, desert and food festivals, cruise arrivals, and MICE (Meetings, Incentives, Conferences, and Exhibitions) events.

Qatar’s hotel supply stood at 40,787 keys, according to Qatar Tourism estimates, with 68% of the inventory concentrated in the 4- and 5-star segments.

Mid-range hotels (1- to 3-star) made up 7.7% of the total, while hotel apartments accounted for 24.3%. Approximately 845 new hotel keys are expected to enter the market this year, primarily in the upper-tier categories.

Despite strong visitation numbers, hotel performance metrics showed a modest year-on-year decline.

The Average Daily Rate (ADR) fell 6.4% to $122, while Revenue Per Available Room (RevPAR) dropped 10.7% to $87. ADRs for 5-star properties averaged $143, while 3-star and 4-star hotels posted rates of $48 and $60, respectively.

ValuStrat noted that the Qatari government has prioritized real estate and tourism in 2025, introducing new investment-friendly policies and regulatory reforms to boost economic diversification.

“The first quarter of 2025 reflected a broadly stable real estate landscape in Qatar, with most sectors experiencing either consolidation or modest downward adjustments,” said Anum Hassan, Head of Research (Qatar) at ValuStrat.

The firm’s Residential Capital Values Index held steady at 96.5 points, benchmarked to a base of 100 in Q1 2021. Both apartment and villa sub-indices showed no notable movement during the quarter.

Retail leasing values remained stable, while the industrial sector posted growth, with rents for ambient and cold storage facilities rising by 2.8% and 3.6%, respectively. Hassan also cited an uptick in commercial activity, attributed to streamlined business setup procedures for foreign investors.

“In the months ahead, we anticipate further seasonal adjustments, particularly during the summer period, as the market continues to demonstrate resilience while adapting to evolving dynamics,” Hassan added.