Data and analytics specialist STR announced data for Africa hospitality industry. According to figures, despite political turmoil, Cairo is starting to recover. Cairo and Cape Town’s hotel markets have experienced strong performances over the past five years.
The compound of annual growth rate (CAGR) for revenue per available room (RevPAR) in Cairo was up 14.9% for the 2011 to 2015 time period. In the first quarter of 2016, RevPAR increased 14.1% compared with Q1 2015, indicating this recovery trend has carried into the current year.
Demand in Cairo has fluctuated significantly since the Arab Spring in 2011 and the regime shift in 2013. But occupancy is starting to recover, and the hotel development pipeline remains fairly robust. The high year-over-year performance increases in 2014 and 2015, are however, coming off an extremely weak 2013.
Cape Town has also seen positive growth in average daily room rates. The CAGR for RevPAR was up 13.6% over the five years, but it has taken time for this market to absorb the extra room capacity created for the World Cup in 2010. Johannesburg, which saw a 7.9% CAGR increase in RevPAR, experienced a similar problem. A weak South African Rand has helped make the country an affordable destination for international tourists. In Q1 2016, Cape Town’s RevPAR increased 18.9%, while Johannesburg’s increased 18.7%, indicating that both markets opened this year much stronger than in Q1 2015.