Africa -  Zimbabwe - Harare

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

Zimbabwe is transitioning from decades of political instability, the change in regime has created great international interest. Economic growth made a recovery in 2017 with a GDP growth rate of 3.4%. The growth is projected to slow down to 2.7% in 2018 due to liquidity shortages of US dollars as per the World Bank.

Tourist arrivals in 2017 were up 12% from 2016. Victoria falls International Airport was refurbished in 2016 and now operates daily and weekly flights from eight airlines with passenger handling capacity of 1.5 million. Zimbabwean general elections in July 2018 have raised security concerns resulting in the U.S. Embassy issuing a travel advisory ‘level 2 warning: exercise increased caution’ due to increased political tensions. This has raised some concerns regarding investor sentiment.

Upgrades at Robert Gabriel Mugabe International Airport, Harare also broke ground in July of 2018 financed and built by China. The upgrades will increase the handling capacity from 2.5 million passengers to 6 million. Airline companies South African Airways, British Airways, Fastjet , Ethiopian Airways , Kenya Airways , Emirates , RwandAir are the current flight operators.

Hoteliers are positioning themselves for post Mugabe growth with Cresta Hotels undertaking major refurbishments to its Harare 123 key property. Radisson Blu plans to open 245 rooms at the end of March 2019 and will not be the last as many projects are rumoured.  

Great wildlife and natural attractions including Victoria Falls a UNESCO World Heritage Site, are now gaining new appeal with the shift in the political landscape and infrastructure development. International Hotel Chains entering the market could possibly bring the much-needed tourists and foreign currency into the country to boost the whole economy. 

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.

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For more information, please contact:

Rishabh Thapar, MRICS
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