Security, geographical misconceptions and infrastructure named as some of the factors
A recent report by STR Global, a hospitality research firm has revealed a number of factors that could be influencing the pricing of hotels across various African capitals. The report majorly noted that despite having some of the continent’s recognized chains as well as renowned global brands; the hotel rate in the Kenyan capital, Nairobi is almost double that of the more advanced South African capital – Johannesburg.
The report released ahead of the Africa Hotel Investment Forum (AHIF) scheduled to take place by the end of this month notes that in contrast to other major African capitals, such as Lagos, Cairo and Cape Town, Nairobi’s hotel rates have remained fairly stable in the past year despite the low occupancy rates due to the rampant security threats and travel advisories. The industry also suffered greatly due to misconceptions during the Ebola outbreak in West Africa.
Among other factors, infrastructure, ease of transport (airways) and political stability have played a key role in formulating hotel pricing. For instance, Ethiopian capital –Addis Ababa is still grappling with a shortage …read more