For a comprehensive review of the Africa market, click below:
HVS In-Depth Africa Hotel Valuation Index:
2021
|
2016
|
2015
|
2014
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.
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
|
|
|
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:
|
More than -10%
|
Uganda - Kampala RevPAR Change
Uganda - Kampala RevPAR
| Year |
RevPAR |
| 2015 |
75.10
|
| 2016 |
75.68
|
| 2017 |
72.46
|
| 2018 |
70.20
|
| 2019 |
78.23
|
| 2020 |
82.43
|
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