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Addis Ababa, Ethiopia, posted Africa’s highest average daily rate (ADR), according to the most recent 12-month data from STR (formerly Smith Travel Research).
From July 2018 through June 2019, the city registered an absolute ADR of US$163.79 when measured in constant currency (fixed exchange rate that removes the effects of inflation). The figure was a 1.1% increase year on year. The next closest STR-defined markets in Africa were Accra, Ghana (US$160.34) and Lagos, Nigeria (US$132.51).
“Addis Ababa continues to maintain high ADR levels when compared internationally,” said Thomas Emanuel, a director of 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.”
Addis Ababa will also host the Africa Hotel Investment Forum (AHIF) from September 23-25 at the Sheraton Addis hotel.
“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, MD, Bench Events (AHIF organiser). “Our delegates will be looking carefully to see if the addition of a lot of 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 period was 58.4%, up 6.5% year on year. Cairo and Giza were the continent’s occupancy leaders at 74.5%. Cape Town Centre, South Africa (65.0%), ranked second, followed by Accra (59.7%).