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Kenya’s hotel sector to add 2,400 rooms by 2021

International hotel companies which have expressed interest in Kenya include Marriott, Sheraton, Ramada, Hilton Garden Inn, Mövenpick Hotel and Four Points by Sheraton/FILE

 NAIROBI, Kenya, Oct 23 – 13 new hotels are expected to open in Kenya over the next four years adding 2,400 room and expanding the hotel capacity by 13 percent.

A report by consultancy firm PwC estimates that the number of available rooms to increase from 18,600 in 2016 to 21,000 in 2021, a 2.5pc compound annual increase.

“Helped by an increase in flights to Kenya, lower park fees, a stable economy, and ongoing growth in domestic tourism, we project guest nights to build on their recent momentum and rise at a 4.1% compound annual rate during the next five years,” states the African Insights Hotel Outlook: 2017 – 2021.

Among the international hotels expanding or setting up in Kenya include Sheraton, Ramada, Hilton, Best Western, Radisson, Marriott and Movenpick.

However, occupancy rates will decline over the next two years before edging up from 2019 due to the oversupply of rooms.

Guest nights will total an estimated 4.4 million in 2021, a 4.1 percent compound annual increase from 3.6 million in 2016, notes the PwC report.

In 2016, South Africa and Mauritius registered double-digit growth in hotel revenues but Nigeria is projected to make the most gains in room revenue over the next five years.

Kenya’s revenues with grow by 7.5pc annually helped by a strong domestic economy, incentives and government investment in infrastructure.

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