Comment: Qatar hotels market data from TRI

Key performance data from the HotStats Survey from TRI Consulting

Chris Hewett, associate director, TRI Consulting.
Chris Hewett, associate director, TRI Consulting.

As with most GCC markets in 2016, Doha’s hotels faced several challenges during the year, which included a strong US dollar, low oil prices, weaker economic activity and supply increases.

Lower economic activity resulted in softer demand levels in 2016, with Doha hotels achieving an average occupancy of 65.9%, 4.4 percentage points lower than 2015. The stronger dollar impacted the spending power of visitors, forcing hoteliers to offer competitive room rates, which resulted in ADR falling 12.5% to US$181.4.

The fall in both demand and average rates saw RevPAR weaken by 17.9% to $119.5 and continuing the downward decline which started in mid-2015.

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Lower F&B demand compounded the softer room revenue, resulting in Total Revenue Per Available Room (TRevPAR) dropping 13% to $299.53 and Gross Operating Profit per Available Room (GOPPAR) decreasing by 23.3% to $106.04.

We anticipate challenges in will continue through the first half of 2017 as economic indicators suggest growth is unlikely to strengthen; however, as oil prices remain stable and Qatar key infrastructure projects commence, we expect to see market conditions improve in the latter half of 2017 and early 2018.

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