Using a 12-month moving average and U.S. dollar constant currency to remove the impact of currency fluctuations, Africa’s RevPAR was up 6.4% to US$67.10 as of August 2019
ADDIS ABABA, Ethiopia, September 24, 2019/ — Revenue per available room (RevPAR), the key hotel industry performance metric, has grown for 87 consecutive months amid a period of low supply growth and strong demand, according to STR (https://STR.com/) director Thomas Emanuel in his presentation at the Africa Hotel Investment Forum (https://www.AHIF.com/) (AHIF).
Using a 12-month moving average and U.S. dollar constant currency to remove the impact of currency fluctuations, Africa’s RevPAR was up 6.4% to US$67.10 as of August 2019. Average daily rate (ADR), up 3.3%, has had more of an impact on that growth than occupancy (+2.9).
“Africa has shown one of the better supply and demand balances on a global level,” Emanuel said. “The continent’s industry continues to expand alongside rapidly developing economies and infrastructure, so there is definite investment opportunity even though finding the right opportunity is challenging. The prospects of greater supply growth as well as political and economic instability can also create difficult situations for the region’s hotel industry moving forward.”
Other highlights from Emanuel’s presentation:
- Despite its massive geographical area, Africa has just roughly 5,000 hotels. Only four countries in Africa offer more than 50,000 rooms: Egypt, Morocco, Tunisia and South Africa.
- Accor and Marriott International represent the largest inventory presence in Africa (http://bit.ly/2lfFgsM). Six years ago, there were 18 countries with no globally branded hotels. Today, there are only seven countries in that category.
- Dakar, Senegal, has seen RevPAR rise since 2017. New supply in Senegal has been more focused away from Dakar, and more toward Saly and the Blaise Diagne International Airport. Supply is however expected to ramp up in Dakar ahead of the Summer Youth Olympics in 2022.
- There is significant performance variance across Morocco, but Casablanca continues to pull down overall figures for the country.
- New supply continues to have a negative effect on performance in Nairobi, Kenya.
- Addis Ababa has seen significant demand growth thanks to more corporate business and expanded air routes.
Distributed by APO Group on behalf of STR.