Nairobi, Lagos hotels suffer, Cairo and Cape Town upbeat

June 13, 2016
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According to STR, Cairo is starting to recover with the compound of annual growth rate for revenue per available room going up by 14.9 percent for the five year period/FILE
According to STR, Cairo is starting to recover with the compound of annual growth rate for revenue per available room going up by 14.9 percent for the five year period/FILE

, NAIROBI, Kenya, Jun 13 – Hotel markets in Nairobi and Lagos have both suffered setbacks predominantly due to safety concerns, figures submitted by hospitality data and analytics specialist STR show.

Revenue per available room over the five year period to 2015 was down 5.3 percent in Nairobi and 8.9 percent in Lagos.

Nairobi started 2016 with a 3.5 percent decline in revenue per available room for 2016 Q1 compared with 2015 Q1 mainly due to a 10.1 percent decline in occupancy.

Lagos on the other hand recorded flat performance in 2016 Q1 with a decline in occupancy levelling out an increase in average daily rate.

Cairo and Cape Town’s markets have however experienced strong performances over the past five years despite political turmoil in Cairo.

According to STR, Cairo is starting to recover with the compound of annual growth rate for revenue per available room going up by 14.9 percent for the five year period.

“Demand in Cairo has fluctuated significantly since the Arab Spring in 2011 and the regime shift in 2013. However, occupancy is starting to recover and the hotel development pipeline remains fairly robust,” Philip Wooler, STR’s Middle East and Africa director said.

On its part, Cape Town’s positive growth – its compound of annual growth of revenue per available room was up 13.6 percent – was despite time taken to absorb the extra room capacity created for the 2010 World Cup.

“A weak South African Rand has helped make the country an affordable destination for international tourists.”

Despite the a 3.1 percent decline in revenue per available room at the start of 2016, Dar es Salaam was noted to have experienced growth which is attributed to its being considered relatively safe.

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