Addis Ababa posted Africa's highest ADR in June

Hilton Addis Ababa
Hotels like the Hilton Addis Ababa posted Africa’s highest average daily rate year over year in June. Photo credit: Hilton

Addis Ababa, Ethiopia, posted Africa’s highest average daily rate (ADR) in June, according to the most recent 12-month data from STR.

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

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“With healthy performance comes 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," he said. 

Addis Ababa’s occupancy over the same 12-month time period was 58.4 percent, up 6.5 percent year over year. The greater Cairo area, including Giza, was the continent’s occupancy leader at 74.5 percent. Cape Town Centre, South Africa (65 percent), ranked second in the metric followed by the Accra area (59.7 percent).

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