Kenya - Nairobi
Kenya’s economy remains one of the most vibrant economies in East Africa, and Nairobi is the main commercial centre of the country. In 2016 Kenya had strong GDP growth rising to 6% thanks to the country's currency stability, low fuel prices and low inflation rates. Being in one of the most stable economies in Africa, Nairobi will offer an increasing number of opportunities for investors which will boost the economy further.
Kenya has made significant structural and economic reforms that have contributed to sustained economic growth, the country has received support of the World Bank Group, International Monetary Fund and other development partners and they have brought positive economic changes to the country. Elections are scheduled for August 2017, government has strengthened security measures ahead of the elections, which may affect hotels' performance as tourists and investors may see a risk of political unrest, although at the time of writing there were no signs of the threatened violence.
Nairobi’s Hotel market offers significant investment opportunities. International branded hotels are investing in Nairobi as the regional hub of Africa and now also in secondary cities. Tourist arrivals rose to 16.7% boosted by improved security and marketing of tourism to international markets. Occupancy rates are up to 58.5%, an increase compared to 2015. RevPAR growth of 5.3%. There is an increase of new supply and that can cause value growth to decrease in 2017. The outlook for tourism in Kenya looks bright for 2017 as government is supporting and marketing the country to the international and domestic markets.
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