Research

JLL Releases Hotel Market Reports for Addis Ababa, Dar es Salaam & Nairobi

JLL has released their latest Hotel Market reports focussing on Addis Ababa, Dar es Salaam and Nairobi.

Some of the key findings for each each is:

Addis Ababa – Addis Ababa has experienced high demand growth in the past decade and benefits from a diversified demand mix driven by diplomatic, NGO and corporate travellers, with the leisure segment growing off a low base. Demand growth outlook is strong with high domestic and regional economic growth set to increase the size of the corporate market alongside the diplomatic and NGO segments. The expanding network and fleet of Ethiopian Airlines will continue to improve the status of Addis Ababa as an aviation hub with further hotel demand a necessary spin off. Announced new quality hotel supply amounts to 3,081 rooms, a growth of 98% on the existing 3,130 quality hotel rooms provided by the top 31 hotels currently operational. JLL anticipates that 50% of this or 1,540 rooms will enter the market in the next five years.

Read the full report for Addis Ababa here: JLL Hotel Market Outlook – Addis Ababa Ethiopia April 2016

Dar es Salaam – Hotel demand in Dar es Salaam is driven by its status as one of the main commercial hubs in East Africa and the gateway to a strong leisure offering in the rest of the country. The demand growth outlook is positive with continued economic growth, increasing regional trade and improving air access. Hotel performance was relatively strong in 2015 with market occupancy at 66% despite new supply entering the market.Since 2000 hotel room supply in the quality segment has grown by 6% per annum with growth now expected to speed up. The total number of hotel rooms in Dar es Salaam is forecast to grow by 8% per annum between 2016 and 2020, with projects totaling 1,421 new keys having been announced. JLL expects that 80% of this supply will come to fruition meaning an increase of 1,137 keys.

Read the full report for Dar es Salaam here: JLL Hotel Market Outlook – Dar es Salaam Tanzania April 2016

Nairobi – Nairobi is the leading hotel market in East Africa and the third largest is Sub-Saharan Africa in terms of overall demand and has a diverse market mix including international, regional and domestic business travel, a strong NGO sector, as well as a significant contribution from leisure travel. Nairobi has firmly positioned itself as the preferred regional corporate headquarter location in East Africa, which will continue to drive strong demand from business travellers. JLL forecasts this demand to continue to grow at 7% – 9% per annum over the coming five years, yet this will depend on a stable security environment and may not be high enough to soak up additional supply coming into the market.

Read the full report for Nairobi here: JLL Hotel Market Outlook – Nairobi Kenya April 2016