Nairobi and Kigali, Rwanda, have been ranked as two of the least attractive hospitality investment markets in East Africa due to the current oversupply and limited demand respectively.
Leading hospitality investment experts Wayne Troughton of HTI consulting said that in East Africa, the Top Investment Hospitality Markets are Kampala, Addis Ababa, and Dar es Salaam.
Addis Ababa, which currently has the highest Average Daily Room rates (ADRs) on the continent, has been regarded as an attractive option, but Troughton cautioned that the market remains challenging due to a lack of forex, which has been a drag on developers trying to complete hotel developments.
According to Troughton, the most popular hospitality investment opportunity on the continent at the moment includes midscale urban hotel assets of 150 rooms, which are located close to corporates, conferencing centers and transport nodes.
Kampala has been fronted as one of the next hubs for hospitality investments due to the current limited branded supply, and with the oil prices entering a recovery period. Troughton said the City provides a strategic and attractive opportunity for investors.
In another instance, international hospitality Carlson Rezidor has announced the opening of its third outlet in Kenya. The Radisson Blu Hotel & Residence is located State House, the Nairobi Arboretum Park and within easy reach of the city’s more upscale commercial and residential zones including Kilimani, Upperhill and the CBD.
Tim Cordon, senior area vice president, Middle East & Africa, Radisson Hotel Group said, “the residence is the first internationally branded extended stay product in the city and complements our other properties in Nairobi; Radisson Blu Hotel, Nairobi Upperhill and Park Inn by Radisson Nairobi Westlands.”
The facility will feature 122 hotel rooms and suites.