Kenya’s guest nights to rise at 4.1% thanks to increased flights

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African Insights Hotel Outlook: 2017 – 2021 report project guest nights to build on their recent momentum and rise at a 4.1% compound annual rate during the next five years

To counter the rise 13 new hotels are expected to open in Kenya over the next four years adding 2,400 room and expanding the hotel capacity by 13 percent.

The report prepared by consultancy firm PwC estimates that the number of available rooms to increase from 18,600 in 2016 to 21,000 in 2021, a 2.5pc compound annual increase.

Among the international hotels expanding or setting up in Kenya include Sheraton, Ramada, Hilton, Best Western, Radisson, Marriott and Movenpick.

However, occupancy rates will decline over the next two years before edging up from 2019 due to the oversupply of rooms.

Guest nights will total an estimated 4.4 million in 2021, a 4.1 percent compound annual increase from 3.6 million in 2016, notes the PwC report.

In 2016, South Africa and Mauritius registered double-digit growth in hotel revenues but Nigeria is projected to make the most gains in room revenue over the next five years.

Kenya’s revenues with grow by 7.5pc annualy helped by a strong domestic economy, incentives and government investment in infrastructure.