AHIF 2017: Africa’s hotel supply projected to grow 11 per cent

AHIF 2017: Africa’s Hotel Supply Projected To Grow 11 Per Cent

AHIF 2017: Africa’s hotel supply projected to grow 11 per cent

Ahead of the Africa Hotel Investment Forum, STR has highlighted Africa’s key hotel development in addition to performance trends.

AHIF 2017: Africa’s Hotel Supply Projected To Grow 11 Per Cent

Based on August 2017 data, Africa currently shows 301 hotel projects inside pipeline, accounting for 57,011 rooms, or 11 per cent of the continent’s existing room supply.

AHIF 2017: Africa’s Hotel Supply Projected To Grow 11 Per Cent

Ahead of his AHIF presentation on Wednesday, October 11th, Thomas Emanuel, STR’s director of business development, commented on recent performance trends inside market.

AHIF 2017: Africa’s Hotel Supply Projected To Grow 11 Per Cent

“Across Africa, we’ve seen mixed performance results to date,” Emanuel said.

AHIF 2017: Africa’s Hotel Supply Projected To Grow 11 Per Cent

“In local currencies, rates are up in several countries, including Egypt, Morocco in addition to South Africa, yet in many instances, you need to consider exchange rates to see the full picture.

AHIF 2017: Africa’s Hotel Supply Projected To Grow 11 Per Cent

“Meanwhile, some various other markets are already experiencing performance declines as a result of supply growth, such as Nigeria, Ethiopia in addition to Algeria, so This particular will be very interesting to see how these markets respond as more rooms continue to come online.”

AHIF 2017: Africa’s Hotel Supply Projected To Grow 11 Per Cent

As of August, Egypt hotels posted a 70.1 per cent increase in average daily rate to EGP1,185.53.

While the country’s ADR has remained above EGP1,000 each month since November 2016, the devaluation of the Egyptian pound has significantly inflated figures.

When reported in US dollars, Egypt’s ADR declined 17.2 per cent for the January to August 2017 time period, dropping to an actual level of US$66.54.

Occupancy, on the various other hand, rose 17.2 per cent to 52.7 per cent.

At the market level, Cairo posted an 8.5 per cent increase in occupancy in addition to a 72.5 per cent increase in ADR (down 16.2 per cent in US dollars), resulting in 87.2 per cent growth in revenue per available room to EGP997.58.

Although Sharm El Sheikh recorded a 13.9 per cent increase in occupancy for the first eight months of the year, the market’s actual occupancy level was only 40.4 per cent.

STR analysts note which security concerns continue to hinder Sharm El Sheik’s hotel demand.

With the current pipeline representing more than half of the market’s existing hotel rooms, STR analysts expect which supply growth will continue pressuring Nigeria’s occupancy levels inside near future.

August year-to-date data shows a 1.2 per cent decline in occupancy to 44.3 per cent yet a 6.8 per cent increase in ADR to NGN47,819.53.

When measured in US dollars, however, ADR declined 23.3 per cent to US$149.58.

The market currently faces several challenges, with security concerns as well as struggles in Lagos due to the low oil prices.

Hotels in Ethiopia have experienced mixed performance levels thus far in 2017, with occupancy down 6.7 per cent to 51.6 per cent in addition to ADR up eight per cent to ETB4,914.13.

STR analysts note which the country’s number of room nights available increased 4.2 per cent compared with the first eight months of 2016, which has affected occupancy levels.

For the month of August, RevPAR was down 5.4 per cent to ETB1,834.81, mainly the result of a 4.2 per cent drop in occupancy.

Rate performance has been stronger on weekdays than weekends This particular year, indicating growth in corporate business, yet occupancy levels are down for both weekdays in addition to weekends.

STR’s data sample inside hotel industry comprises more than 58,000 hotels in addition to 7.8 million hotel rooms around the entire world.

Pipeline data reported by STR is actually gathered coming from major chains, proprietary software, management companies in addition to independent sources.

AHIF 2017: Africa’s hotel supply projected to grow 11 per cent

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