Hospitality sector to see extra 3,900 keys this year

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Qatar’s hospitality segment is expected to see the addition of nearly 3,900 keys this year, of which 60% were completed by the end of third quarter, regional consulting firm ValuStrat has said in a market review.
Notable hotel openings included Mondrian Doha, Al Mansour Plaza and Premier Inn Education City. During the first eight months of 2017, hotel visitors reached 1.69mn.
Average daily rate (ADR) and hotel revenue per available room (RevPAR) declined by 8.5% and 9% respectively over the past 12 months. Three-star hotels experienced an 8% rise in occupancy over the same period, despite a 13% rise in supply.
“This is probably due to a growing interest for reasonably priced serviced accommodation,” ValuStrat said.
With the completion of North Gate Mall and Doha Souq, total retail gross leaseable area (GLA) exceeded 1.65mn sq m.
Due to ‘Shop Qatar’ and Eid festivals, super-regional and regional malls were able to attract “substantial footfall” during the third quarter.
Regional malls achieved footfall of up to 2mn during the period.
“There has been a supply boom in the retail sector since the beginning of 2017 compared to previous years.
Nevertheless, new malls delivered to the market achieved high occupancy levels together with firm rental rates.
In the medium term, as more supply comes on the market in areas already dense with retail offerings, the performance of older shopping malls may come under pressure,” said ValuStrat Qatar general manager Pawel Banach.
New Hamad Port was inaugurated with the capacity to handle a potential of 7.5mn shipping containers.
The government launched numerous initiatives to support the growth of industrial and logistical properties.
Average monthly asking rents for warehouses recorded a 5% quarterly drop.
Owing to the geopolitical challenges, the influx in demand encouraged local producers and dairy manufacturers to increase production capacity, ValuStrat said. (Source)