Hotel supply grows 2.2% YoY to 42,000 keys by June

Doha, Qatar saw its hospitality and serviced-apartment market expand to 42,131 keys by the end of the second quarter in 2026, marking a 2.2% increase from the previous year's 41,240 keys, as reported by Cushman & Wakefield. The market's confidence in its long-term growth is further supported by the continued development of Qatar's accommodation infrastructure.

High-end accommodation, including five-star hotels, grew by 2.3% to 20,312 keys, while serviced hotel apartments increased by 9.6% to 11,003 keys. Conversely, mid-scale four-star hotels and economy one-to-three-star accommodations experienced declines of 5.3% and 5.1%, respectively. This realignment toward luxury and extended-stay properties suggests an industry adapting to high-value corporate contracts and longer-stay travel segments.

The sector's proactive operational adaptation was critical during broader regional conflicts that halted inbound travel in March, creating temporary performance challenges throughout the quarter. Despite these challenges, the hotel industry entered the new year with strong momentum, following a record-breaking 5.1 million international visitors the previous year.

Analysts highlight that Qatar's hotel industry opened the new year with remarkable strength, with robust demand led by an exceptional January occupancy rate of 84.1%, up from 79% in February 2025. First-quarter performance remained encouraging, with an average occupancy of 68% and a 1.5% increase in Average Daily Rates to QR448.9 year-on-year.

However, Q2 occupancy softened to 52%, a 23.5% quarter-on-quarter decline, and international arrivals dropped to 618,000, a 44.7% annual decrease. Despite regional disruptions, Qatar's hospitality landscape is expected to rebound with strong fundamentals and major international events like MotoGP Qatar and the Formula 1 Qatar Airways Grand Prix in the final months of the year.