Colliers: Doha FY 2016 review

Quarterly report from Colliers International on the Doha hotel's market

Source: Olery; Colliers International
Source: Olery; Colliers International



Doha has seen an influx of more than 1,300 keys over the last one year, primarily in the five-star segment. New hotel openings in Q4 2016 include Intercontinental Residence (82 units) and AlRayyan, Curio Collection (201 keys). Branded supply is expected to increase by a CAGR of 18% from 2017 to 2019. While significant supply is expected to enter the five-star and four-star segments over the next few years, some delays are expected, which leaves more time for the market to absorb the new supply.

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Drop in oil prices resulted in slowing economic activity and corporate spending. The major hospitality districts in Doha experienced a drop in occupancy and average rate, with hotels in Doha Downtown and West Bay Lagoon being the most affected. The hotel market occupancy is forecasted to close at 64% in 2017.


While Doha has predominantly been a business destination, it is expected to see growth in leisure tourism in the coming years. The recent opening of Mall of Qatar (December 2016) and the upcoming demand generators such as Doha Festival City, Lusail City and Msheireb Downtown are expected to increase the appeal of Doha as a leisure destination. The gradual increase in leisure tourism over time is expected to help in diversifying the demand base for the city.

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