Africa -  Uganda - Kampala

Kampala had an exceptional year in terms of additional hotel supply in 2017. While the city’s premium brand, Kampala Serena Hotel expanded its inventory, the year saw the opening of the 124-room Golden Tulip Canaan, a 296-room Pearl of Africa (opened with a partial inventory) and a 141-room Naguru Skyz that opened in December 2017. While the short-term pressure on the hotel occupancies is likely to continue in 2018 and 2019 with the additional Hilton Garden Inn nearing completion, we believe that the additional branded supply will help the market become a more organised/mature market with multiple branded offerings. The other notable fact is that the new supply is coming in at the midscale price point resulting in faster absorption in the market and reflects good planning on the part of developers and brands.

Even as Kampala awaits the decongestion of its highways through ongoing infrastructure projects, it is forecast to growth at ~5% for the next three years. The opening of the Express way to Entebbe Airport is hugely important. While under the rule of President Museveni, Uganda has experienced stability and economic growth, his extension of presidential terms in 2005 and the presidential age limit in 2017 have raised concerns both within the country and outside as he has cleared the decks for a potential sixth presidential term. East Africa’s political stability, after Kenyan elections and a peace treaty between Ethiopia and Eritrea, could also contribute to the Uganda’s growth in the medium to long term provided the internal political situation remains stable.

Exchange Rate:

Exchange Rate 2016 Exchange Rate 2017 Change 2016/2017 Exchange Rate 2018 Change 2017/2018
US$ 1 0 0
Uganda - Kampala 0.00029 0.00027 -6.9% 0.00027 0.0%

Change In Value For Market:

Legend
Significant Value Increase: Greater than +10%
Moderate Value Increase: Between +3% and +10%
Stable Values: Between -3% and +3%
Moderate Value Decline: Between -3% and -10%
Significant Value Decline: Less than -10%

Uganda - Kampala RevPAR Change

Uganda - Kampala RevPAR

Year RevPAR
2015 75.10
2016 75.68
2017 72.46
2018 (f) 70.20
2019 (f) 78.23
2020 (f) 82.43

For more information, please contact:

Tim Smith, MRICS
[email protected]
  • +27 797 342296 (w)
Rishabh Thapar
[email protected]
  • +27 0 792790584 (m)
Laura Dutrieux
[email protected]