Around 7,000 hotel keys to be added for FIFA World Cup in Nov
Doha: Around 5,000 to 7,000 hotel keys are expected to be delivered for the FIFA World Cup Qatar in November 2022. Hotels and serviced apartments are expected to deliver approximately 37,000 keys, or 45,000 rooms in time for the World Cup. Demand for World Cup accommodation will dominate the market in the coming months, said a senior official during an event yesterday.
Cushman and Wakefield Qatar, an international real estate consultancy hosted a real estate market update seminar and discussed Qatar’s third quarter (Q3) real estate market review. The event also saw a panel discussion entitled ‘What about the After Party’ – Qatar Real Estate Post-FIFA 2022.
Addressing the seminar, Johnny Archer, Director, Consulting & Research at Cushman & Wakefield Qatar said: “We estimate that between 5,000 and 7,000 keys may be complete in time for the FIFA World Cup in November 2022. International supply delays over the past two years have delayed the opening of a number of hotels that were due to complete in 2021 and 2022. We estimate that in the region of 45,000 rooms/37,000 keys (hotels, hotel apartments and serviced apartments) will be delivered by November 2022. Tournament accommodation will be bolstered by cruise ships, camping facilities, apartments and villas”.
According to the Q3 report, “In August 2022, the supply of hotel keys in Qatar reached 30,847, of which 75 percent are hotel rooms and 25 percent are hotel apartments. Of the available hotel rooms, 65 percent are classed as 5-star with less than 10 percent classed as 3-star or below. As the FIFA World Cup in November 2022 approaches, we expect new supply to accelerate”.
Hotels and serviced apartments are expected to deliver approximately 37,000 keys, or 45,000 rooms in time for the World Cup. Demand for World Cup accommodation will dominate the market in the coming months. The Supreme Committee for Delivery and Legacy has reserved 80 percent of overall hotel supply for the tournament; however, any unrequired supply is expected to be returned to hotels in early October, freeing up rooms for the wider market, the report noted.
Speaking about what happens after the World Cup, Archer said: “We expect 20,000 – 30,000 residential units of various types to be released to the market. Many in January 2023, but other held on longer lease terms may be filtered back over time. We expect demand to drop initially, before stabilising and increasing gradually. Also, residents to relocate and trade up taking advantage of falling rents. Projects under construction will complete, adding to existing supply in 2023 and 2024”.
FIFA World Cup Qatar 2022 has resulted in a spike in demand for residential supply which has become particularly evident since Q2, 2022. The surge in demand has resulted in limited vacancy and escalating rents. “We estimate that more than 30,000 residential units have been held back from the market in recent months to meet the potential demand from visitors in November and December,” the report noted.
Speaking about World Cup opportunities, Archer said that Qatar will receive an unprecedented opportunity to showcase the country to a global audience. World Cups in Germany, Russia, and South Africa boosted their profile and reputation as tourist destinations in the three years after the event. Each country noted an uplift in visitor numbers in the three years post-event. There was 22 percent to 27 percent growth in Revenue Per Available room (RevPAR) post World Cup. Hotels that benefitted most were 7-10 years old.
He added that Qatar Airways’ widespread network, coupled with a vastly increased profile for Qatar post-2022 should help to increase the percentage of stop-over visits with transit passengers.
Archer also gave an overview of the office and retail market of Qatar. Edd Brookes, General Manager of Cushman & Wakefield Qatar and Head of Middle East moderated the event.
Source: The Peninsula