Africa -  Ethiopia - Addis Ababa

Ethiopia is projected to be one of the fastest growing economies in Africa over the next 3-year period with GDP growth rate forecast of ~8%. Moreover, the recent peace between Ethiopia and Eritrea promises to open up trade and transportation links between the countries if the leaders follow through with their commitments. On the tourism arrivals, Ethiopia has seen a double-digit compounded annual growth in arrivals from almost every continent over the last five-year period. Bole International Airport’s ongoing expansion (from passenger handling capacity of 7 million to 22 million) and the national carrier’s growth plans in the region are likely to result in further growth of tourist arrivals in the country.

Addis Ababa, the capital and the biggest hotel market in Ethiopia has less than 1,500 international chain affiliated rooms in the city, however, a supply of over 2,000 branded rooms including brands under the umbrella of Marriott, Accor, Hyatt, Wyndham, Movenpick, Best Western and Sarovar are under various stages of construction. While we expect the proposed supply to drive down occupancy in 2019 and 2020, the room nights sold are likely to grow by an average of 12% year-on-year. Historically, difficulty of doing business in the country, administrative procedures, access to credit and foreign exchange have resulted in long delays in the opening of hotels, however, recent announcements by the government give hope that these challenges may be overcome. As Ethiopia’s economy expands we expect the leisure and meeting and conference segments to grow rapidly thereby benefiting tier two hotel markets.

Exchange Rate:

Exchange Rate 2016 Exchange Rate 2017 Change 2016/2017 Exchange Rate 2018 Change 2017/2018
US$ 1 0 0
Ethiopia - Addis Ababa 0.04336667 0.0411138 -5.2% 0.03592 -12.6%

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%

Ethiopia - Addis Ababa RevPAR Change

Ethiopia - Addis Ababa RevPAR

Year RevPAR
2015 127.32
2016 106.61
2017 103.52
2018 (f) 110.95
2019 (f) 111.72
2020 (f) 104.37

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]