Market analysis is fundamental to understanding any hotel market in Africa, and is the first step in the hotel feasibility process, or as a stand-alone assessment for an investor wanting to assess available opportunities, or for a hotel operator seeking to enter a new market with existing or new brands.
The hotel market analysis can be undertaken at a high level – whereby key trends and available opportunities are identified. The information is usually sourced from STR Global, and any additional research is usually undertaken on a desktop basis. This can be done across multiple markets, depending on the requirements of the investor.
A more detailed hotel market analysis would involve primary market research on the ground, in order to provide a more comprehensive overview of the market. Face-to-face interviews with operators, general managers, economists, and demand generators provide a good base for understanding the key trends and nuances within a hotel market.
A comprehensive hotel market analysis also identifies in which segment of the market the main opportunities are, whether they be business or leisure, and what type of product, positioning, and size is likely to achieve optimal performance.
The hotel market analysis, whether undertaken at a high level or a more comprehensive level, is an important tool to provide direction for the type of hotel that should be developed, the location of the hotel, and the sort of market positioning it should have. A more detailed hotel market analysis can also provide insights into the number of rooms and the type of concept that can maximise opportunities.
HTI Consulting has conducted hotel market analyses in a diversity of countries on the African continent, at both a high and comprehensive level. Our experienced consultants have a sound understanding of African markets and are able to provide global experience at a local level.