Africa -  Morocco - Marrakech

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HVS In-Depth Africa Hotel Valuation Index:   2021 | 2016 | 2015 | 2014

Morocco’s economy is stable, showing a constant 3% growth over recent years. Living standards and economic conditions are rising due to an improving business environment, investments into export-orientated industries, significant railway infrastructure projects and a gradual liberalization of the local currency.

Tourism represents a significant share of the economy and benefits from the efforts of the government to promote the destination to both corporate and leisure travelers. Tourist arrivals increased by 8.2% in 2018 compared to the year before, according to Trading Economics. One of the reasons was the relaxation of visa requirements for Chinese tourists three years ago, which has seen an increase of arrivals from 10,000 in 2015 to almost 180,000 last year.

Marrakech is starting to play a big role on the global stage: the FIHA (Forum de l’Investissement Hotelier Africain) took place in the city this year in February and in August 2018 the singer Madonna celebrated her 60th birthday in the “Red City”, documenting the festivities on twitter. One of the biggest challenges for the city is to increase tourists’ length of stay, according to Alexis Reynaud (Editorial Manager at Oxford Business Group). As part of the reinvention, a US$100m multiuse project is bringing global attention: M Avenue will include shops, restaurants, cafes, galleries, residences, luxury hotels, a business park, a school and a clinic. In addition, the city is working on capturing an increasing amount of MICE business and has proven quite successful: the Global Forum for Migration and Development was held in the city with UN members and NGOs and the Conference of African Ministers of Finance came just after that.

After tough years in 2015/16 due to the terrorist attacks in France, Marrakech had two years of recovery with a 26% growth in REVPAR and values in 2018. Both performances and values are expected to remain stable in the years ahead, with a 2.5% average yearly growth in the next two years.  

Change In Value For Market:

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%

For more information, please contact:

Rishabh Thapar, MRICS
[email protected]
  • +27 0 792790584 (m)