By Modupe Gbadeyanka
A report released by a firm reputed for providing analytics and marketplace insights for global hospitality sectors, STR, has said Addis Ababa, Ethiopia, posted Africa’s highest average daily rate (ADR).
The 12-month data from STR stated that from July 2018 through June 2019, Addis Ababa registered an absolute ADR of $163.79 when measured in constant currency, which removes the effects of inflation, adding that the figure was a 1.1 percent increase year over year.
According to the report, the next closest STR-defined markets in Africa were Accra Area, Ghana with $160.34 and Lagos Area, Nigeria with $132.51.
“Addis Ababa continues to maintain high ADR levels when compared internationally,” said Mr Thomas Emanuel, a director for STR. “The city has multiple demand drivers, such as a growing economy, successful airline and its status as the diplomatic capital for Africa. Air connections and ease of access compared with other cities also factor in the equation for strong demand, which provides hoteliers with the confidence to maintain rate levels.
“With healthy performance comes interest in investment. The market’s pipeline is strong with 22 hotels and 4,820 rooms in active development. We will continue to monitor these new openings to see how the market reacts once these additional rooms open.”
From September 23-25, 2019, the hospitality market will play host to the Africa Hotel Investment Forum (AHIF) at the Sheraton Addis.
At the next month’s event, Mr Emanuel will present the latest hotel performance and development insights on Tuesday, September 24 of AHIF.
“Hosting high-profile international meetings like AHIF is one factor that has helped Addis to maintain its position as the city with the most expensive hotel accommodation in Africa,” said Matthew Weihs, Managing Director, Bench Events (AHIF organiser). “Our delegates will be looking carefully to see if the addition of a lot more high-quality accommodation and meeting space will depress room rates or help Addis become even more attractive as a destination.”
Addis Ababa’s occupancy over the same 12-month time period was 58.4 percent, up 6.5 percent year over year. Cairo and Giza was the continent’s occupancy leader at 74.5 percent. Cape Town Centre, South Africa (65.0 percent), ranked second in the metric followed by Accra Area (59.7 percent).
Aduragbemi Omiyale