For a comprehensive review of the Africa market, click below:
HVS In-Depth Africa Hotel Valuation Index:
2021
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2016
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2015
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2014
Kenya had an extraordinary election year in 2017. While the election itself in August was relatively peaceful, it was annulled after the supreme court found evidence of irregularities. The second vote, two months later, was boycotted by the opposition in fear that not enough was done to check the irregularities. At the end of November 2017, Uhuru Kenyatta with his pro-business and pro-international investment approach, was sworn in for a second five-year term as president of Kenya as he pledged to work for national unity.
On the tourism front, unlike previous election years where tourism visitation and earnings had declined by 10%-15% in the election year, the airport arrivals in Kenya increased by 2.1% while the Kenyan Ministry of Tourism announced that tourism earnings hit a decade high. What is even more remarkable is that international visitation increased by 6.8% year on year in 2017 reflecting well on the performance of the popular tourist destinations in Kenya
Mombasa is one of East Africa’s largest port cities and the second largest hotel market in Kenya. With beautiful white sandy beaches, warm ocean waters and favourable weather conditions, Mombasa is a great beach destination. The city which dates back to 900 AD has a rich history to showcase along with eclectic cuisines. While the destination was popular among European travellers from 1970s to 1990s, a series of unrest and elections led to an adverse impact on its tourism industry. However, the industry has repositioned itself to cater to the rising spending power of the East African countries and capturing the meeting and conference market. Further, the completion of the modern Standard Gauge Railway (SGR) that replaced the century old railways built by the British has boosted travel to coastal towns reducing travel time to about 5 hours from Nairobi. Quality hotels in the market have witnessed growth in occupancy since the end of 2017 and we foresee demand increasing as the government strives to improve infrastructure, connectivity and visa on arrival facilities
The lack of new supply will certainly underpin improved performance and increase in hotel Market Value.
The widespread impact of the coronavirus (COVID-19) has had an unprecedented impact on hotels and hotel values worldwide.
Consequently, the latest HVI analysis may no longer reflect the most current measure of lodging industry strength or the
hospitality investment market.
In each of our offices across the globe, we are working tirelessly to analyze the impact of recent events and provide timely
insights to help you navigate these uncharted waters. Because it is unclear how long the pandemic will last or how long related
restrictions will be in place, we are updating our analyses on a weekly basis using the most current data.
Additionally, examination of value trends in prior cycles can provide useful information. Historical patterns, together with
an understanding of the market’s current expectations for the eventual recovery of the industry and its performance, can provide
insights on the likely trajectory of decline and recovery for hotel values.
For the Latest Information and Analysis on the Impact of COVID-19Click Here
If you’d like to speak to someone personally to review details of our most current analysis, please don’t hesitate to contact
us directly.
ADR, Demand, Occupancy, RevPAR, and Supply Projections:
|
| ADR Change
|
| Market Demand Change
|
| Hotel Occupancy Increase/Decrease
|
| RevPAR Change
|
| Market Supply Growth
|
Exchange Rate:
|
Exchange Rate
2016
|
Exchange Rate
2017
|
Change
2016/2017
|
Exchange Rate
2018
|
Change
2017/2018
|
|
US$
|
1
|
0
|
|
0
|
|
|
Kenya - Mombasa
|
0.00969
|
0.00952
|
-1.8%
|
0.00981
|
3.0%
|
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:
|
More than -10%
|
Kenya - Mombasa RevPAR Change
Kenya - Mombasa RevPAR
| Year |
RevPAR |
| 2015 |
32.33
|
| 2016 |
32.89
|
| 2017 |
32.93
|
| 2018 |
42.68
|
| 2019 |
46.91
|
| 2020 |
49.52
|
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