DOHA: Qatar’s hospitality and serviced-apartment market expanded its room inventory to 42,131 keys by the end of the second quarter of 2026, registering a 2.2 percent increase compared to 41,240 keys a year earlier, according to the latest real estate report by Cushman & Wakefield.
The report highlighted that confidence in the market’s long-term trajectory is further reflected in the continued expansion of Qatar’s overall accommodation infrastructure.
Capital investment remained particularly focused on high-end and versatile accommodation types, with five-star hotel inventory growing by 2.3 percent to 20,312 keys, and serviced hotel apartments jumping by 9.6 percent to reach 11,003 keys.
Meanwhile, mid-scale four-star supply adjusted downward by 5.3 percent to 7,750 keys, and economy one-to-three-star properties saw a 5.1 percent contraction.
This strategic realignment toward luxury and extended-stay apartments illustrates a flexible industry actively pivoting toward high-value corporate contracts and longer-stay travel segments.
This proactive operational adaptability proved crucial when broader regional conflicts halted inbound travel starting in March, creating temporary performance headwinds throughout the second quarter of the year.
The sector witnessed strategic expansion through the first half of 2026, building upon the historic momentum of a record-breaking 5.1 million international visitors in the prior year.
Analysts at the research consultancy stress that the country’s hotel industry surged into the new year with remarkable strength, while hotel operators and developers have continued to grow and adapt their asset offerings to position the market for long-term stability.
Industry leaders noted that the year opened with robust demand across the country, led by an exceptional January occupancy rate of 84.1 percent, a significant leap from the 79 percent recorded during the same period in 2025.
Although February saw a minor, fractional shift below the previous year’s figures, overall first-quarter performance remained highly encouraging.
First-quarter occupancy averaged 68 percent, supported by resilient pricing power that pushed Average Daily Rates up by 1.5 percent year-on-year to QR448.9.
Market experts emphasise that this strong start highlighted the underlying global appetite for Qatar’s tourism offerings following its consecutive record-setting years.
Qatar Tourism data revealed that Q2 occupancy softened to 52 percent, representing a 23.5 percent quarter-on-quarter drop and a dip from the 71 percent and 70.7 percent levels registered in Q2 2025 and Q2 2024 respectively.
International arrivals fell to 618,000 in Q2 2026, marking a 44.7 percent annual drop from 1.12 million visitors in Q2 2025 and a 45.4 percent decline from the first quarter of 2026. Reflecting the quieter demand environment, the quarter’s Average Daily Rates settled at QR378.8, down 16.4 percent year-on-year.
The data notes that despite the regional disruptions, the outlook for Qatar’s hospitality landscape remains anchored in strong fundamentals and highly anticipated international events scheduled for the final months of the year.
The report also underscores that the industry is well-positioned to capture renewed international visitor flows in the months ahead as sports tourism takes center stage, led by major global spectacles including MotoGP Qatar in November and the Formula 1 Qatar Airways Grand Prix.
