Hospitality Market

Hotel Feasibility Studies
January 30, 2018
Hotel Market Study
April 19, 2018

Higher-End Hospitality Market

The higher-end hospitality market in Dakar is currently experiencing a positive growth. Occupancy within the upscale and upper upscale hospitality market has increased by 10,3 percentage points between 2015 and 2017. Such growth is a result of relatively stagnant ADR.


The growth in the hospitality market is being driven by pro-active government investment in infrastructure, which has seen the development of and planned investment in:


  • the new Blaise Diagne International Airport (approximately 45 to 50 km from the Dakar city centre);
  • new road infrastructure;
  • a regional railway; and
  • the construction of a new city (Diamniadio) between Dakar and the new airport.


Private sector investment is also likely to have an impact on the hospitality market with the expansion of the Port of Dakar by DP World, as well as an increase in oil and gas activities by companies such as Total.


Although much of the above will have a positive impact on the high-end hospitality market in Dakar, some developments could have a temporary negative impact on the sector. Diamniadio aims to serve as a business decentralisation point for Dakar. Although still in the very early stages of development, an exodus of key corporate and government institutions from the city could see major players in the hospitality market affected. In addition, the new airport has resulted in the closure of the Léopold Sédar Senghor International Airport located north of the Dakar CBD. The demand associated with this airport, notably aircrew, amongst others, has been displaced from Dakar with a negative, albeit small, impact on the hospitality market.


Interviews on the ground highlighted that investments like Diamniadio are projected to grow the economy of the region, with a positive knock-on effect for the Dakar CBD and its related hospitality market. The new airport is also expected to create an airline hub, with pro-active efforts being made to grow the number of airlines flying into the city. This too will positively influence Dakar and its hospitality market. Finally, investments by the oil and gas sector will have a significant impact on the higher end of the hospitality market. Oil companies are not price sensitive and seek good-quality, international standards when accommodating a large proportion of their personnel.


The impact of the new Blaise Diagne International Airport and the development of Diamniadio on the Dakar market remains to be seen, however, considering the growth that is projected for the region, the outlook for the hospitality market appears positive. Although a high level of new supply is expected to enter Dakar, the market growth will potentially facilitate the swift absorption of such new supply in the hospitality market.


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