The Rwandan hotel investment market has improved strongly over the last 8 years.
According to the African Hotel Report 2017 by Hotel Partners Africa, that will be released tomorrow at the Africa Hotel Investment Forum in Kigali. For the first time Rwanda has entered the “top ten” of most valuable countries in Africa for hotels. In addition, with average growth in hotel values of 8.8% over the last 8 years, Rwanda experienced the sixth highest growth on the continent over that period.
“That values have increased in 2017 despite the large influx of new supply in the last two years is testament to the confidence that investors have in the stability of the government and the overall investment climate,” said David Harper, the report’s author.
Rwanda is held out by many as a beacon across Africa for property investment. With an Ease of Doing Business rating of 67 (out of 189) and Property Rights Protection rating ranked at 28 (out of 145) investors have found the climate conducive to property deals. The Government’s concentration on providing infrastructure, reducing ‘red tape’ and stamping out corruption has all enabled foreign investors to feel confident in the country’s future. 4 new branded hotels with 544 rooms are planned for Kigali.
“This report shows that the hotel industry in Africa is still a very good investment, despite the cyclical nature of the property market. However, good advice is vital to help ensure you make the most of this very promising investment opportunity and avoid some of the potential pitfalls that can ensnare the less experienced hotel investor.”
Author: Samson Okwakol