Addis Ababa - Afrikan Heroes

Addis Ababa leads Africa in hotel room rates

August 9, 2019

Addis Ababa, Ethiopia, posted Africa’s highest average daily rate (ADR), according to the most recent 12-month data from STR . The market will play host to the Africa Hotel Investment Forum (AHIF) on 23-25 September at the Sheraton Addis.

From July 2018 through June 2019, Addis Ababa registered an absolute ADR of US$163.79 when measured in constant currency, which removes the effects of inflation. That figure was a 1.1% increase year over year. The next closest STR-defined markets in Africa were Accra Area, Ghana (US$160.34) and Lagos Area, Nigeria (US$132.51).

“Addis Ababa continues to maintain high ADR levels when compared internationally,” said Thomas Emanuel, a director for STR. “The city has multiple demand drivers, such as a growing economy, successful airline and its status as the diplomatic capital for Africa.

Air connections and ease of access compared with other cities also factor in the equation for strong demand, which provides hoteliers with the confidence to maintain rate levels.

“With healthy performance comes to interest in investment. The market’s pipeline is strong with 22 hotels and 4,820 rooms in active development. We will continue to monitor these new openings to see how the market reacts once these additional rooms open.”

Emanuel will present the latest hotel performance and development insights on the Tuesday (24 September) of AHIF.

“Hosting high-profile international meetings like AHIF is one factor that has helped Addis to maintain its position as the city with the most expensive hotel accommodation in Africa,” said Matthew Weihs, Managing Director, Bench Events (AHIF organizer). “Our delegates will be looking carefully to see if the addition of a lot more high-quality accommodation and meeting space will depress room rates or help Addis become even more attractive as a destination.”

Addis Ababa’s occupancy over the same 12-month time period was 58.4%, up 6.5% year over year. Cairo & Giza was the continent’s occupancy leader at 74.5%. Cape Town Centre, South Africa (65.0%), ranked second in the metric followed by Accra Area (59.7%).

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry.

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Ethiopia backs Africa Hotel Investment Forum (AHIF)

July 26, 2019

Prominent figures from Ethiopia’s public and private sectors have spoken out publicly to welcome the return to Addis Ababa of the Africa Hotel Investment Forum (AHIF) which is the premier tourism and hotel investment conference in Africa, and to encourage others to attend.

AHIF attracts many prominent international hotel owners, investors, financiers, management companies and their advisers. It will return to the Sheraton Hotel, Addis Ababa in the last week of September 23-25, 2019. AHIF was previously held in Ethiopia’s capital city in 2014 and 2015.

According to an independent study by Grant Thornton and the international tourism advisory expert, Martin Jansen van Vuuren, of Futureneer Advisors, the event is forecast to be worth $millions to Ethiopia’s economy and to facilitate the investment of $billions in hospitality projects across Africa.

In 2018, AHIF facilitated around $2.8 billion of investment in the hospitality sector and between 2011 and 2018, $6.2 billion. Abebe Abebayehu, Commissioner, Ethiopian Investment Commission, said: “We are glad to support this prestigious event.

AHIF attracts the highest caliber group of business leaders in the hospitality industry in Africa. By taking part, we will be able to get a much deeper understanding of what investors need. That is particularly important to us in the context of the government’s focus on tourism as a strategic pillar of the economy. By encouraging more investment in hospitality projects, we will create productive employment for our young population and earn valuable hard currency.”

One of the most important roles played by AHIF is to facilitate networking between delegates. Many investors and developers are keen to find new sources of finance, expert advisers and importantly, local partners.

One Ethiopian businessman, Neway Berhanu, Managing Director, Calibra Hospitality Group, has benefitted substantially from this. He says: “Calibra Hospitality Group’s success in becoming the leading consulting company in Ethiopia has been greatly helped by being an active participant in the Africa Hotel Investment Forum, since 2011.

Thanks to Bench Events, we are now well connected, having established very good relationships with all the major international hotel brands. That has enabled us to conclude close to 25 International transactions, bringing business to Ethiopia. I would encourage the business community and all stakeholders in the hospitality sector to attend.”

The promotion of tourism is another critical issue for many African countries. For Ethiopia, it is underlined by a report from the World Travel & Tourism Council (WTTC), which states that Travel & Tourism represents 61% of Ethiopia’s exports and it expects the industry to expand by a whopping 48.6% in 2019.

A rapidly growing national airline, a new hub airport, relaxed visa regulations, and the country being the political center of Africa, by virtue of hosting the headquarters of the African Union, are drivers of these impressive numbers. Ms. Lensa Mekonnen, CEO, Tourism Ethiopia said: “AHIF will provide an excellent opportunity to welcome the cream of the hotel industry to Ethiopia.

Our aim is to show them our assets and thereby attract more international-standard hotel and resort brands to establish themselves close to our historical, natural and cultural sites, in addition to the capital city. By promoting regionally balanced development, we will attract more tourists to Ethiopia and encourage them to stay longer.”

Matthew Weihs, Managing Director, Bench Events, concluded: “Ethiopia is a center for political meetings in Africa and a fast-growing transport hub. That already makes it attractive to hotel investors. The government’s declared interest in prioritizing tourism will further increase the attractiveness, along with its renewed enthusiasm for collaboration with the business community.

When AHIF first came to Ethiopia, there were three internationally-branded Hotels, the Hilton, the Radisson, and the Sheraton. Now there is a Best Western, a Golden Tulip, a Hyatt Regency, Marriott apartments and a Ramada; plus, another 27 hotels in the pipeline!”

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry.

Facebook: https://web.facebook.com/Afrikanheroes/

Africa Hotel Investment Forum (AHIF) will generate millions of Dollars for Addis Ababa and billions for Africa

July 4, 2019

Independent report reveals the economic impact of Africa’s top hotel conference

An independent assessment by the international tourism advisory expert, Martin Jansen van Vuuren, a partner at Futureneer Advisors, has quantified the significant economic benefits to host countries of the influential Africa Hotel Investment Forum (AHIF).

He reveals that when AHIF returns to Addis Ababa at the end of September, it could bring over one and a half million dollars in direct benefit to the local economy, an additional two million dollars in indirect benefit and over a quarter a million in tax to the Ethiopian host government if spending at the 2019 event is a mere 10% more than when it was held in the city in 2014. This assessment is based on recent research of attendees at AHIF and a study on the economic impact of previous editions of the conference.

Looking back over the history of AHIF since the first conference in Casablanca in 2011, the event has made a total impact on the local host economies of $21.24 million of which $8.64 million in direct and $12.6 is indirect. In doing so, it has helped to create or sustain over 6,000 jobs and generate $1.4m in tax to the governments of the host countries. But that’s not all, the primary purpose of AHIF is to facilitate dialogue and ultimately deal-making between the top businesspeople present.

Two surveys of delegates attending AHIF events between 2011 and 2018 (segmented by delegates that did or did not conclude a deal) indicated an average value of $12.2 million per transaction in 2018 and $4.6 million over the 8-year period. On the assumption that these findings, which were based on a sample of delegates, were representative of the whole group of attendees, AHIF facilitated around $2.8 billion of investment in the hospitality sector across Africa in 2018 and $6.2 billion between 2011 and 2018.

Martin Jansen van Vuuren, said: “One important measure of AHIF’s success is the high-level of the delegates it attracts – the attending CEO’s and MD’s do not only spend more than average by staying in the best hotels but much more importantly, they are people with the ability to make decisions, including whether or not to invest in a destination – and that’s reflected in the value of deals done.”

Martin’s report also highlights intangible benefits that flow from hosting AHIF. These include increased awareness of the destination’s conference and tourism offering, improved credentials, which will assist bidding for future events and employment opportunities and skills transfer for workers in local supplier companies.

Matthew Weihs, Managing Director of Bench Events, which organises AHIF, said: “It’s exciting and gratifying to see how much the conference adds to the destinations we visit and to the hospitality sector across Africa. At this year’s event, I am aware of more serious investors coming with more money behind them than ever before, so it feels to me that the hospitality industry in Africa is rapidly becoming more mature and sophisticated.”

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry.