Africa -  Zambia - Lusaka

For a comprehensive review of the Africa market, click below:
HVS In-Depth Africa Hotel Valuation Index:   2021 | 2016 | 2015 | 2014

Zambia has one of the most open trade environments in Africa with businesses benefiting from among the lowest profit taxes in the region. Increasing regional cooperation through multilateral organisations, indicate a commitment by the government to stay open for investment and trade. Driven by a recovery in copper prices, the agricultural and the electricity and gas sectors the country’s economy grew modestly by 3.6% in 2017. It is forecast to increase its growth by 4% in 2018 and by 4.5% in 2019 and 2020 according to the IMF, following a weaker trend in 2015 to 2016.  These factors and a lower inflation level give investors’ confidence. Also, the risk of instability has receded with the release of opposition leader Hakainde Hichilema in August 2017.

Even though the Cholera outbreak in October 2017 negatively impacted some travel decisions, passenger movements at all Zambian airports increased by a 10.9% in the fourth quarter of 2017 compared to the same quarter in 2016 due to increased flight frequencies and the commencement of flights by Mahogany Air. Furthermore, Lusaka is planning to spend US$ 500 million in airport construction projects and the government has announced a revival of the national airline through a partnership with Ethiopian Airlines.

Hotel supply grew by 5% in 2017 and with a projected 3.9% per year rise in travel and tourism investment by the government (WTTC Zambia 2017) over the next ten years, the hotel supply continues to grow by 11% in 2018 and by 13% in 2019. Hilton Garden Inn Lusaka Society Business Park will open on the 30th August 2018 for reservations. The 82-room Sarovar Premiere Lusaka is expected in September. A 136-room Park Inn by Radisson will open in 2020. Protea Hotels by Marriott recently signed an agreement with Union Gold Zambia Limited for the construction of the new 241-room Protea Hotels by Marriott Bonanza Estate scheduled in 2021.

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)