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Hotel Market Outlook - Dar es Salaam, Tanzania

​Hotel demand in Dar es Salaam is driven by its status as one of the main commercial hubs in East Africa and the gateway to a strong leisure offering in the rest of the country. The demand growth outlook is positive with continued economic growth, increasing regional trade and improving air access. Hotel performance was relatively strong in 2015 with market occupancy at 66% despite new supply entering the market.

Since 2000 hotel room supply in the quality segment has grown by 6% per annum with growth now expected to speed up. The total number of hotel rooms in Dar es Salaam is forecast to grow by 8% per annum between 2016 and 2020, with projects totalling 1,421 new keys having been announced. JLL expects that 80% of this supply will come to fruition meaning an increase of 1,137 keys.

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