Hotel occupancy drops in Nairobi in new rating

Hotel Room

Hotel occupancy in Nairobi has dropped in the latest ranking of key African cities.

According to new data from STR, the provider of data and analytics for the global hotel industry, covering the first half of this year, Morocco’s Marrakech had the highest occupancy over the period.

Marrakech’s Average Daily Rate (ADR) increased 40.7 per cent to $195 (Sh19,500).

Despite this considerable rate of growth, the market also recorded a 12.3 per cent increase in occupancy.

Consumer confidence

For Nairobi, on the hand, occupancy dropped 0.6 per cent while ADR fell 6.5 per cent in US dollars.

In terms of Revenue Per Available Room (RevPAR), a technical measure used by hotel investors and operators because it takes in to account how full a hotel is, Marrakech saw a 58 per cent increase to $124 (Sh12,400).

“Due to its proximity to markets where security concerns have hindered tourism business, Morocco’s hotel performance has suffered in recent years. As consumer confidence is returning to several of these markets, Morocco’s leisure capital, Marrakech, has seen an increase in demand and hotel operators have managed to capitalise by driving rate growth,” said Thomas Emanuel, business development director for STR while commenting on the report.  

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