HOTELS & CONFERENCE CENTERS
Development of the hotel industry in Sub-Saharan Africa has suffered during the last few years due to the impact of the global economic crisis of 2008/2009, political instability in some countries like Nigeria and Kenya where the threat of terrorism has curtailed the inflow of foreign tourists, the high cost of development, and previously restrictive visa requirements in South Africa. However trends in 2016, which have shown 30% year-on-year growth for planned rooms, strongly suggest that the industry is poised for a rebound. According to STR Global - a research firm that provides market data on the industry - average daily room rates (ADR) in the region through August 2016 were up 8.6% to $103.0 and revenue per available room (RevPAR) was up 4% to $56.00. Consequently, there is a strong case for optimism in the sector given the fact that the industry is under-supplied (some countries have fewer than 500 branded rooms) and anticipated growth of business travel, tourism and the middle class is strong. And, according to PriceWaterhouseCoopers (PwC) 2016-2020 Hospitality Outlook which covers South Africa, Nigeria, Mauritius, Kenya, and Tanzania, these markets combined are poised to grow at a compound annual rate of 8.6% between 2015 and 2020. Consequently, ECM3D is very optimistic about this sector.