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Trends

KENYA

  • Fractional Home Ownership

  • Increasing of Market Stake by International Hotel Chains

  • Improved Hotelier Service Standards

  • Dual Branding

NIGERIA

  • Nigeria remains an attractive market for major hotel brands with a strong infrastructure for urban visitors.

  • The MICE (Meetings, Incentives, Conference & Exhibitions) sector will drive guest nights and overall room revenue.

  • The mid-scale market will present the best opportunities for growth.

  • Hotel room revenue for the five markets as a group will increase at a 5.8% compound annual rate to R50.6 billion in 2023 from R38.1 billion in 2018.

UAE

  • The UAE real estate is one of the most important sectors in the national economy and it expected to emerge strongly in the post-COVID-19 era. The market will get strength from key factors including strong appetite, Expo 2020 and cost reduction etc. when the crisis of COVID-19 pandemic is over.

  • The hospitality industry is hopeful that guests from within the UAE and GCC will start travelling and spending on staycations by late May/early June or so.

  • The Expo will guarantee six months of MICE (Meetings, Incentives, Conference & Exhibitions) business - but it will depend on who gets a slice of the pie,” said an Abu Dhabi based hotel executive in Abu Dhabi.

Challenges

KENYA

  • Possible political tensions during electioneering periods.

  • Environmental challenges such as the prolonged floods and drought periods.

  • Slow infrastructural developments as well as poor road networks in the parks.

  • High cost of operations for hotel commerce translates to increased adoption of technological solutions.

  • Some parts of Kenya such as the North are still red zones for international travellers, escalated by the negative publicity from international media. 

NIGERIA

  • Insufficient flights

  • Inaccurate hotel grading system

  • High travellers’ demand

  • Personalizing the customer experience is a new concept

  • High rate of competitiveness

UAE

  • With travel completely halted, hotels and holiday homes are empty.

  • OCccupancy rates are usually booming and expensive at a whopping 85 per cent and with average daily room rates close to Dh1,000. However, this year it is on the other end of the spectrum, wherein the occupancy rate is as low as 20 per cent and room rates at Dh500.