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UNITING THE WORLD OF FITNESS
Health Club Management

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News

Ghana’s capital Accra is hot spot for spa hotel investment

Accra, the capital of Ghana, has become one of the fastest-growing cities in Africa and the subject of interest from the hotel investment market, with many of large global brands vying to open properties there.

Investors are attracted to the city because of its growing economy, political stability and conducive investment climate, according to a new report from HVS London, released for the Africa Hotel Investment Forum (AHIF) 2013, which took place this week in Nairobi.

The report found that hotel supply in Ghana grew by an average of 8 per cent from 1998 to 2011 having suffered for many years from a lack of adequate hotel accommodation. While the market is still characterised by local African brands such as African Regent Hotel, Fiesta Royal and Labadi Beach Resort, it is now becoming a development hot spot for large international chains looking to expand in Africa.

Co-author Sophie Perret, director with HVS London, notes eight new hotel developments currently underway, from luxury brands such as Kempinski and Shangri-La to mid-market and economy hotels such as Express by Holiday Inn and ibis.

Key findings of the report show that hotel market dynamics in Accra have mirrored that of the city’s economic growth. Revenue per available room (RevPAR) for a sample of upscale hotels in Accra recorded continuous growth from 2009 to 2012 and showed little impact from the global economic recession. The reports states “the rise in RevPAR is attributable mainly to hoteliers pushing rate ahead of occupancy as demand in the market remained high”.

Report co-author Veronica Waldthausen, associate with HVS London, said: “We consider Accra to be an important emerging market within Africa, with much potential. Ghana is set to become one of the leading tourist markets on the continent, given its strategic geographical location, political stability, expanding economy, growing infrastructure and diverse tourist attractions.”

The city’s Kotoka International Airport has also experienced a boost with compound annual growth rate of more than 9.5 per cent from 2002 to 2012, with the majority of visitors being business customers, according to HVS London.

Waldthausen said: “Over the past several years, the airport has been successful in increasing flight frequencies to the Middle East, Europe and North America. There is also a US$200m (€147m, £124m) airport expansion project underway, which forms part of a master plan to meet the projected growth in arrivals over the next 10 years.”

Spa Business magazine’s Spa Foresight 2013/2014

report predicted the spa industry in Africa is set for an exciting growth period.

To download the full HVS London report see here.

Accra, the capital of Ghana, has become one of the fastest-growing cities in Africa and the subject of interest from the hotel investment market, with many of large global brands vying to open properties there.
SAB,HHR,HOT,SWC
832130_970700.jpg
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Ghana’s capital Accra is hot spot for spa hotel investment

Accra, the capital of Ghana, has become one of the fastest-growing cities in Africa and the subject of interest from the hotel investment market, with many of large global brands vying to open properties there.

Investors are attracted to the city because of its growing economy, political stability and conducive investment climate, according to a new report from HVS London, released for the Africa Hotel Investment Forum (AHIF) 2013, which took place this week in Nairobi.

The report found that hotel supply in Ghana grew by an average of 8 per cent from 1998 to 2011 having suffered for many years from a lack of adequate hotel accommodation. While the market is still characterised by local African brands such as African Regent Hotel, Fiesta Royal and Labadi Beach Resort, it is now becoming a development hot spot for large international chains looking to expand in Africa.

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Report co-author Veronica Waldthausen, associate with HVS London, said: “We consider Accra to be an important emerging market within Africa, with much potential. Ghana is set to become one of the leading tourist markets on the continent, given its strategic geographical location, political stability, expanding economy, growing infrastructure and diverse tourist attractions.”

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Spa Business magazine’s Spa Foresight 2013/2014

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To download the full HVS London report see here.

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SAB,HHR,HOT,SWC
832130_970700.jpg

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