Markets & Performance
Horwath HTL Market Report: South Africa Market Update & COVID-19 Impact
On 26 March 2020 as we said our goodbyes to colleagues, we did not foresee that six months later many hotels across South Africa would remain closed.
Addis Ababa Leads Africa In Hotel Room Rates
Addis Ababa, Ethiopia, posted Africa’s highest average daily rate (ADR), according to the most recent 12-month data from STR (https://STR.com/). The market will play host to the Africa Hotel Investment Forum (AHIF) (https://www.AHIF.com/) on 23-25 September at the Sheraton Addis.
HVS Market Pulse: Cape Town
Cape Town is one of the most multicultural cities in the world, reflecting its role as a major destination for immigrants and expatriates to South Africa. As of 2018, the city had an estimated population of 4.5 million. The CTICC CEO Julie-May Ellingson has announced a R900m CTICC 2 development, this planned all glass sky bridge between the two parts of Cape Town International Convention Centre could become the mother city’s latest tourist attraction.
HVS Market Pulse: Johannesburg
Johannesburg has become a destination of choice for business due to an outstanding reputation for quality and affordability. As of 2018 the city had an estimated population of 8.3 million. The city generates 16% of South African GDP and employs 12% of the national workforce. Johannesburg is the home to the Johannesburg Securities Exchange (JSE) that is rated as one of the top 20 exchanges in the world in terms of market capitalization.
BON Hotels acquires 4-star boutique hotel, Die Kliphuis in Standerton
BON Hotels announced the acquisition of Die Kliphuis, a boutique hotel located in Standerton, to augment the group's fast-growing portfolio. This elegant, sandstone homestead, steeped in history, has over the past 100 years served as a maternity home, a boarding house for young ladies, an officers' mess in the Anglo Boer war and a parsonage. Set in peaceful surroundings with gracious living and a high standard of comfort and cuisine, the property will be positioned as a 4-star, boutique hotel, and renamed Die Kliphuis Standerton by BON Hotels.
New Research Shows South Africa As Africa’s Largest Travel & Tourism Economy In 2018
Travel & Tourism in South Africa contributed 1.5 million jobs and ZAR425.8 billion to the economy in 2018, making it the largest tourism economy in Africa, according to the World Travel & Tourism Council's (WTTC) annual review of the economic impact and social importance of the sector released today.
Ghana Raises Africa's Leisure Tourism Bar
"Continued economic growth in many African countries is driving greater interest in the continent from a tourism perspective but it's interesting to see that Ghana, in particular, is proving increasingly attractive as a leisure tourism destination," says Wayne Troughton, CEO of specialist global hospitality and tourism consultancy HTI Consulting."In many ways, this is not surprising," he says, "particularly considering Ghana's natural beauty and unspoiled coastline, its cultural and historical heritage as well as it's relative political safety under the new government elected in December 2016," he states.
Cape Town’s Tourism Figures Indicate Steady Recovery
Figures released by Cape Town's big attractions, Cape Town International Airport and STR's Destination Report indicate mixed performance for December 2018. The second half of the year has shown that the city's recovery in terms of tourism is stabilising, notwithstanding a poor performance in the early part of 2018.
Market Report Senegal
Senegal benefits from a strategic location on the West coast of Africa bordering the North Atlantic Ocean, and represents a gate-way to the landlocked Sahelian countries. According to United Nations projections, the population of Senegal should reach 40 million by 2050, underlining the great potential for the domestic market.
Horwath HTL Industry Report: Rwanda
Rwanda is no longer a newcomer into the tourism scene - it has paved its own way to becoming a leading eco-tourism and MICE destination, anchored in its vision, values, aspirations and leadership. Now is the time to invest in this country full of opportunities and possibilities.
Airbnb Delivers Opportunity, Not Direct Threat, To South African Hotel Industry
"Whilst theres much thats been said about the traditional hotel industry bemoaning the new home-sharing economy, the fact remains that, companies like Airbnb who dynamically blend tech and travel are not for hotels to fear, even as the rental room giant continues to enjoy rapid growth in Africa," says Wayne Troughton, CEO of specialist hospitality and real estate consultancy firm, HTI Consulting.
Global hotel chains plan expansion in Francophone Africa
The facts and figures behind an unprecedented hotel expansion in Francophone Africa are revealed in the latest research by W Hospitality Group, the international experts in hotels, tourism and leisure based in Lagos, Nigeria.
Marrakech is an African hospitality hot spot, according to STR data
Based on H1 2018 figures from STR, the leading provider of data and analytics for the global hotel industry, Marrakech has emerged as a standout performer among key African cities.
STR: Middle East and Africa hotel performance for Q2 2018
Hotels in the Middle East reported negative Q2 2018 performance results, while hotels in Africa posted growth across the three key performance metrics, according to data from STR.U.S. dollar constant currency, Q2 2018 vs. Q2 2017Middle East
Horwath HTL Industry Report: Senegal: Tourism and Hotel Market Overview
As a model of democracy, Senegal has also one of the most resilient economies in West Africa. Thanks to dynamic business and leisure tourism boosted by major public infrastructure projects, the country succeeds in captivating international investor's interest. As a consequence, writes the team from Horwath HTL Ivory Coast, Dakar's hotel pool has further strengthened whilst secondary clusters are developing at a steady pace (mainly in Petite Côte region, Diamniadio).
Cape Town Calling: Undoing the impact of ‘Day Zero’ on Tourism
At the end of 2017, one of the most picturesque cities in the world, Cape Town, announced a 'Day Zero' to create awareness among its citizens of the severity of its ongoing water crisis. The day marked to be as early as March 2018 at one point of time has been pushed out to 2020 (or potentially 'never') in light of the city's commendable efforts in changing their lifestyle and focusing on water conservation in all aspects of their day-to-day living. It was heartening to see industries, buildings, farmers, hoteliers, each and every citizen coming together for a common cause and making an effort to reduce water consumption. Just for perspective, Cape Town has reduced its water consumption by 60% down to daily consumption levels of as low as ~500-550 million litres a day, a reduction from the 1.2 billion litres per day mark, just three years ago.The hotel and tourism industry has been at the forefront of a lot of these initiatives. While most of the consumption in the city is residential, hotels seemed to be the ones that took the limelight on water consumption. The hotel industry reacted by closing swimming pools, installing borewells, fitting taps with aerators, using sea water for air-conditioning, implemented the use of paper towels instead of hand towels to reduce the laundry load, installing wastewater treatment plants, removing bath plugs, encouraging guests to take two-minute showers, creating awareness and sharing best practices to switch to a greener lifestyle and more. With the efforts of the city, and some blessed rain showers, the dam levels in Cape Town are back up to 48% as of 2 July (as compared to 25% this time in 2017) and rising with a healthy rainfall predicted through the rest of the winter months. While the citizens are cautiously optimistic, this experience over the last year has left citizens environmentally conscious and waterwise.In January 2018, when I traveled to another country, I would have a longer shower, as a relief to my 60 second shower routine, however 6 months later, having realised the impact of conservation and adjusting to a more waterwise routine, I felt no need to have a long shower upon travels abroad. I feel Cape Town can not only claim its fame for being resilient against the drought and becoming a water wise city but it's citizens/visitors can now be ambassadors of sustainable tourism when they travel. Cape Town is one among a host of cities around the world that may face a water crisis and we may have learnt our lesson earlier than others.In gaining this wisdom however, the city of Cape town's hotels and overall tourism has suffered a blow in terms of declining occupancy and visitation considering the publicity that 'day zero' gained across the world. The city along with the globe now needs to market its comeback and the fact that the destination is a water wise sustainable tourism destination, along with the numerous other tourism accolades that stand to its name. Tourists use a fraction of the water and with so many places to see in and around Cape Town, exploring the mountains, beaches and vineyards, who has time for a long shower anyway. We look forward to welcoming the water wise global travelers to the wonders of Cape Town and Western Cape; and getting back on track for the unprecedented tourist arrivals that the city deserves.
Cape Town defends hotel market share
Cape Town retains the biggest share of planned hotel development in South Africa despite showing a decrease in total planned rooms, according to a regional focus from the influential annual hotel pipeline survey by W Hospitality Group.Cape Town has 25% of the South African development pipeline, with 1,063 rooms in six hotels. Durban now has 16% with 697 rooms in five hotels, an increase of 40% in terms of total rooms on last year.Pretoria has 11% of the pipeline with 463 rooms in three hotels. Johannesburg has only 10% of the pipeline with 432 rooms in four hotels and Umhlanga has 7% of the pipeline with 298 rooms in two hotels.Compared with last year, development is slowing in Cape Town and Pretoria, with the number of planned rooms down 22% and 28% respectively. In contrast Durban, Johannesburg and Umhlanga are seeing growth of 40%, 23% and 113% respectively.W Hospitality Group's Managing Director, Trevor Ward said: "Whilst Cape Town continues to offer great opportunities for hotel investment, it is exciting to see new hotel construction projects all over South Africa, in places such as: Addo, Ballito, Boschendaal, Hermanus, Kruger, Malelane, Mossel Bay, Nelspruit, Paarl, Polokwane, Port Elizabeth, Rosebank, St. Francis, Stellenbosch, Tsitsikama and Umfolozi.This year's pipeline report, now in its 10th edition, has 41 contributors, reporting 418 deals with over 100 brands across Africa. Year-on-year performance for Africa as a whole in 2018 shows growth, but more muted than in recent years - 25% growth in the number of pipeline rooms in 2015; 19% in 2016, and 13% in 2017, much the same as the 14 per cent growth in 2018.Hotel development in Africa in general and South Africa in particular will be a core topic on the agenda of the Africa Hotel Investment Forum (AHIF) Regional Briefing, taking place in Cape Town on 13th June, where speakers will include senior executives from Hilton, Marriott and other leading brands plus economists, financiers and expert advisors to the hospitality industry.