High hotel rates has caused Ghana a 2.2 percent decline in guests

The latest report from the Hospitality Outlook by PWC


Ghana’s investment climate and political stability has made the hospitality sector a target for multinational hotel brands looking to expand their footprints into Africa.

Over the past six years, a number of hotel chains such as Kempinski, Marriott International, Mövenpick, Accor(Novotel) and Ibis Styles have set up subsidiaries in Accra. That is according to the 2017-2021 Hotels outlook report by PWC.

The influx of hotels have also been seen in other regions, especially in the Western region (e.g. Best Western Atlantic Hotel) and Northern regions (e.g. Zaina Lodge).

As at May 2017, there were 2 723 hotels and lodges in Ghana. However, most of these have medium-to-low star ratings given their amenities, size of property and general quality of services offered.

As at October 2016, there was a decline of 2.2% in the number of guests as a result of the high rates charged to cover the rising cost of expenditure incurred by the hotels (e.g. cost of fuel and utility bills).

The government has undertaken to look into these areas in the next phases of their development plans.

Accra has internationally-branded hotels including Mövenpick, Holiday Inn, Golden Tulip, Novotel (Accor), Legacy Hotels & Resorts’ Labadi Beach Hotel, Kempinski and Marriott International.

In 2015, Accra attracted 897 000 visitors and achieved 67% occupancy, average daily rate (ADR) of US$201 and revenue per available room (RevPAR) of US$134 (one of the highest in the region) according to STR Global.

In 2016, however, there was a decrease in RevPAR of 44.5% from that of 2015 due to the launch of Kempinski and the ibis Styles properties.

The improving economic situation and political stability in the country have the potential to boost the hotel industry.

Considering the investment by foreign investors in the industry through the establishment of high-rated hotels, and increasing number of tourists and business travellers, it is expected that there would be continuous growth in the industry.


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