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Hotels in Addis Ababa, Ethiopia, posted Africa’s highest average daily rate (ADR) for twelve months ending June 30, 2019. According to data provided by STR, a company that provides premium data benchmarking, analytics and marketplace insights for global hospitality sectors, Addis Ababa registered an absolute ADR of US$163.79 when measured in constant currency, which removes the effects of inflation, from July 2018 through June 2019. The figure was a 1.1 percent increase year over year.

The next closest STR-defined markets in Africa were Accra Area, Ghana (US$160.34) and Lagos Area, Nigeria (US$132.51).

Addis Ababa’s occupancy over the same 12-month time period was 58.4 percent, up 6.5 percent over the previous year. Cairo/Giza was the continent’s occupancy leader at 74.5 percent. Cape Town Centre, South Africa (65.0 percent), ranked second in the metric followed by Accra Area (59.7 percent).

“Addis Ababa continues to maintain high ADR levels when compared internationally,” said Thomas Emanuel, a director for 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 host Africa Hotel Investment Forum on 23-25 September at the Sheraton Addis.