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Doha Q2 2016 ReviewHotel Market
Quarterly Report
Doha | Hotels
Q2 2016
Doha Q2 2016 Review | Aug 2016 | Hotels | Colliers International2
Q2 2014 Q2 2015 Q2 2016 ForecastFY 2016
DohaSUPPLY
Doha saw an influx of 538 hotel keys in Q2 2016. The
most recent openings included properties such as the
Moevenpick Al Aziziyah and the Centro Capital Doha.
Supply is expected to grow at a strong pace, with a large
pipeline over the next few years. However, more than
20% of the announced forthcoming supply has already
been delayed by one or more years, which leaves more
time for the market to absorb the new supply.
MARKET PERFORMANCE
Due to a drop in oil prices, slowing economic activity and
Ramadan, hotels experienced a decline in demand during
the second quarter of 2016. The hotel market occupancy
is forecasted to close 2016 at 64%, which is still relatively
higher than the occupancy rate in some GCC cities who
are also heavily reliant on the corporate segment.
OUTLOOK
Slowing economic activity is expected to shift demand
for hospitality accommodation towards hotels offering
more affordable room rates.
On the other hand, the upcoming demand generators
such as Lusail City and Msheireb Downtown are
expected to increase the appeal of Doha as a leisure
destination. The increase in leisure tourism will be
gradual over time, and will result in a more diversified
demand base, reducing the risk of being reliant on one
major segment.
KPIs | YOY % CHANGE
OCC
ADR
+15% +1% -13% -11%Occ 64%
-7%US$ 182
-6% +11% -11%
PROJECTED HOTEL SUPPLY │NO. OF KEYS
Source: STR Global, Colliers International
WHAT TO EXPECT
RevPAR
Source: Colliers International
Leisure Demand
Branded Economy & Midscale Hotels
Leisure demand expected to
increase with the growing
number of leisure attractions.
An increase in price-conscious
corporate guests seeking easy
access to the airport and West
Bay.
+4%
Delays in hotel openings
Delays in the delivery of hotel
projects will have a positive
impact on the competitive
landscape of the market.
14,34916,243
17,673
21,19423,567
Q2 2015 Q2 2016 2016(f) 2017(f) 2018(f)
Doha Q2 2016 Review | August 2016 | Hotels | Colliers International
INTRODUCTION
West Bay is currently represented by 4,178
hotel keys, predominantly 4 and 5-star hotels,
serving mostly corporate and governmental
clientele.
SUPPLY
The announced future hospitality supply is
overwhelmingly 5-star with an expected
average growth of 14% until 2018, with only
one 4-star hotel announced.
The high land cost makes it more challenging for
investors to consider midscale hotels, hence
no such projects are announced in West Bay.
HOTEL PERFORMANCE
Q2 2016 saw a substantial drop in both
occupancy and ADR resulting in a 19% decline
in RevPAR. Corporate demand has decreased as
a result of falling oil prices. In addition to the
market slowdown, the holy month of Ramadan
contributed to the decline in occupancy as well.
Online Travel agents remain an important
source of bookings for the leisure segment,
despite impacting the profitability of the
bookings. Demand from GCC families is typically
seen during weekends as high-end hospitality
offerings West Bay discount their room rates.
OUTLOOK
West Bay is expected to maintain its segment
mix with the corporate market accounting for
more than 75%. The online booking channels
are expected to gain momentum as a result of
the slowed growth in corporate demand.
The announced future supply is expected to
increase the number of fine dining and specialty
restaurants within the district.
With the current decline in RevPAR, hotels
should focus on other sources of income such
as F&B. If successfully implemented, F&B
revenue can account for as much as room
revenue, or even more in some cases. Having a
more attractive F&B offering will also lead to a
more appealing property, thus having the
District in Focus:
West BayCURRENT SUPPLY WEST BAY - HOTELS
Source: STR Global, Colliers International
WHAT TO EXPECT
WEST BAY | KPIs | YOY % CHANGE
OCC
ADR
RevPAR
Q2 2014 Q2 2015 Q2 2016 ForecastFY 2016
+18% -5% -7%-7%
Occ 65%
-8%US$205 -8% +11% -12%+12%
Lifestyle Hotels
Lifestyle hotels with a focus on
offering unique dining experiences
and a differentiated concept will
stand out in a competitive market.
4
28%
6
50%
3
22%
0% 20% 40% 60% 80% 100%
No. Properties
No. Keys
Luxury Upper Upscale Upscale
3
Source: Colliers International
Branded F&B
Hotels that introduce new,
branded and interesting F&B
concepts will be able to
compensate part of the drop in
room revenue.
Doha Q2 2016 Review | Aug 2016 | Hotels | Colliers International
Data for July 2016
Source: Olery; Colliers International
4
GUEST EXPERIENCE INDEX (GEI) - SCORE MAPPING - BY SUBMARKET
RATING BY TYPE OF GUEST
District: West Bay & Diplomatic Area had the
highest GEI rating (85) for the month of July.
Type of Property: 5-star hotels achieved the
highest GEI rating of 85, followed by 4-star
hotels with 79. The lower score in the 3-star
segment shows a lack of quality midscale hotels.
purposes were the most satisfied, with a rating
of 82.19 out of 100, suggesting a lack of hotels
that are properly set up for leisure tourism.
GEI - BY TYPE OF PROPERTY GEI - TOP 10 BRANDS
Source: Olery; Colliers International
Source: Olery; Colliers International
Source: Olery; Colliers International
77Doha Airport
&
City Centre85
West Bay and
Diplomatic
Area
84West Bay
Lagoon
Score out of 100 Doha GEI - 79
The Guest Experience Index (GEI)
are based on online guest reviews and represent a weighted score on a scale from 1 to 100.
68.38
77.21
77.67
82.19
60.00 65.00 70.00 75.00 80.00 85.00
Group
Families
Couples
Business
Rating out of 100
Rank Brand GEI
1 Four Seasons 90.2
2 InterContinental 90.1
3 W Hotel 89.4
4 Crowne Plaza 88.7
5 Kempinski 88.1
6 Grand Heritage 86.7
7 Wyndham Grand 86.1
8 Marriott 85.8
9 Melia 85.7
10 Ritz-Carlton 85.7
71
79
85
73
60
65
70
75
80
85
90
Hotel - 3
stars
Hotel - 4
stars
Hotel - 5
stars
Hotel
Apartments
Score
out
of
100
Doha Q2 2016 Review | Aug 2016 | Hotels | Colliers International5
Colliers International Hotels
Colliers International Hotels division is a global network of specialist consultants in hotel, resort,
marina, golf, leisure an spa sectors, dedicated to providing strategic advisory services to owners,
developers and government institutions to extract best values from projects and assets. The
foundation of our service is the hands-on experience of our team combined with the intelligence
and resources of global practice. Through effective management of the hospitality process,
Colliers delivers tangible financial benefits to clients. With offices in Dubai, Abu Dhabi, Jeddah,
Riyadh and Cairo, Colliers International Hotels combines global expertise with local market
knowledge.
SERVICES AT A GLANCE
The team can advise throughout the key phases and lifecycle of projects
• Destination / Tourism / Resort / Brand Strategy
• Market and Financial Feasibility Study
• Development Consultancy & Highest and Best Use Analysis
• Operator Search, Selection and Contract Negotiation
• Pre-Opening Budget Analysis and Operational Business Plan
• Owner Representative / Asset Management / Lenders Asset Monitoring
• Site and Asset Investment Sale and Acquisition/Due Diligence
• RICS Valuations for Finance Purposes and IPOs
Our hotels team in the MENA region:
$9 39,200 8,880billion keys Hotel keys
investment value of valued under asset management
projects advised
About Colliers InternationalColliers International is a leading global real estate services company with more than 16,000 skilled professionals operating in 66 countries. With an enterprising culture and significant employee ownership, Colliers professionals provide a full range of services to real estate occupiers, owners and investors worldwide. Services include strategic advice and execution for property sales, leasing and finance; global corporate solutions; property, facility and project management; workplace solutions; appraisal, valuation; customized research; and thought leadership consulting. Colliers professionals think differently, share great ideas and offer thoughtful and innovative advice that help clients accelerate their success. Colliers has been ranked among the top 100 outsourcing firms by the
11 consecutive years, more than any other real estate services firm.
In MENA, Colliers International has provided leading advisory services through its regional offices located in Dubai, Abu Dhabi, Riyadh and Jeddah since 1996. The latest annual real estate survey by Euromoney Best AdvisorArabia.
colliers.com
Colliers International, 2016
The information contained herein has been obtained from sources deemed reliable. While every reasonable effort has been made to
ensure its accuracy, we cannot guarantee it. No responsibility is assumed for any inaccuracies. Readers are encouraged to consult their
professional advisors prior to acting on any of the material contained in this report.
554 offices in
66 countries on
6 continentsUnited States: 153
Canada: 34
Latin America: 24
Asia Pacific: 231
EMEA: 112
$2.5billion in
annual revenue
2billion square feet
under management
16,000professionals
and staff
Colliers International | MENA Region
Dubai | United Arab Emirates
+971 4 453 7400
For further information,
please contact:
Filippo Sona
Director | Head of Hotels | MENA Region
Main +971 4 453 7400
Mobile +971 55 899 6102
Peter Bibby
Country Director | Qatar
Main +971 4 453 7400
Mobile +974 3356 9433
Saahil Lalit
Associate Director | Hotels | MENA Region
Main +971 4 453 7400
Mobile +971 55 732 2727
