25 Apr 2016
So how much does it cost to build a hotel in Africa? New report sheds light on cost per key across the regions...
- Report focuses on two most common type of properties: Midscale and Upper Upscale.
- Midscale brands - West Africa has highest costs per key but Accra has the lowest costs for fit out costs.
- Upper Upscale Facilities - Southern Africa have cheapest cost per room.
Hotel Spec's inaugural FF&E and OS&E Cost Benchmarking Guide Africa will no doubt be a useful tool for all (potential) owners and investors in the market. Up to this point there has been scarce information from a trusted source that breaks down hotel cost data. However, this this report, filled with data taken from actual hotel projects, looks to provide the hotel investment community a standardised cost per key across the continental regions.
Providing this benchmark is a complex undertaking with so much variation of duties and taxes across the continent. As the report states, "to assume the same treatment, procedures and tariffs across the continent would be a grave mistake." It has, therefore, taken into regional variations to provide an accurate comparison of costs for the West, East and Southern markets. The report then takes a sample of 5 brand standards across each segment to provide the comparisons.