Lagos ranks third in hotel room rates in Africa – STR
Addis Ababa posted Africa’s highest ADR of $163.79, followed by Accra ($160.34) and Lagos ($132.51).
Lagos, Nigeria's commercial capital, has been ranked third in absolute average daily rate (ADR) in Africa by STR, an American hospitality data-solutions company. ADR in the hospitality industry represents the average rental income for each hotel room sold for a specific day. It is a financial indicator used in measuring how successful the performance of a hotel is against other hotels that have similar characteristics, according to Xotels, an independent hotel management company.
Lagos's ADR from July 2018 through June 2019 was $132.51. The city came behind Accra Area, Ghana (which had $160.34) and Addis Ababa, which posted Africa’s highest ADR of $163.79, according to STR. In a statement released on Thursday, the Tennessee-based company providing premium data benchmarking, analytics and marketplace insights for global hospitality sectors said Addis Ababa's latest ADR was a 1.1 percent year-over-year increase.
STR said the multiple factors driving the Ethiopian capital's performance include a growing economy, successful airline and its status as the diplomatic capital for Africa. Other demand drivers are air connections and ease of access compared with other cities, providing hoteliers with the confidence to maintain rate levels.
“Addis Ababa continues to maintain high ADR levels when compared internationally,” said Thomas Emanuel, a director at STR. “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.”
Emanuel will present the latest 12-month data from STR on hotel performance and development insights at the upcoming Africa Hotel Investment Forum (AHIF), a premier hotel investment conference in Africa. The conference, which brings together international hotel owners, investors, financiers, management companies and their advisers will take place in Addis Ababa on 23-25 September at the Sheraton Addis.
“Hosting high-profile international meetings like AHIF is one factor that has helped Addis to maintain its position as the city with the most expensive hotel accommodation in Africa,” said Matthew Weihs, Managing Director of Bench Events, the organizer of AHIF. “Our delegates will be looking carefully to see if the addition of a lot more high-quality accommodation and meeting space will depress room rates or help Addis become even more attractive as a destination.”
Addis Ababa’s occupancy over the same 12-month was 58.4 percent, up 6.5 percent year-over-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).
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