Vice president in charge of research at IMANI Centre for Policy and Education, Bright Simmons has disclosed that the International Finance Corporation (IFC) of the World Bank funded one-third of the $51.4 million aparthotel, Number One Oxford Street, developed by Ghanaian investor Cheddar.
Verification by The Independent Ghana supports Simmons’ revelation, with details on the IFC’s website outlining their involvement in the 14-storey upscale building, comprising 104 apartments and four penthouses.
The IFC contributed a senior loan of up to $9.0 million and a syndicate loan of $9.0 million towards the total project cost. Strategically located in Osu, Accra, the aparthotel features retail and leisure spaces, basement parking, a swimming pool, restaurant, bar, gym, and spa.
Simmons highlighted the IFC’s backing of two more aparthotel projects in Ghana, developed by the Mohinani Group, signifying a notable shift in the hospitality landscape. He also underscored the potential threat aparthotels pose to the traditional hotel sector, particularly in the mid-range segment.
According to Simmons, the occupancy rates for four-star and three-star hotels in Ghana have declined significantly over the past seven years, from 60% and 62% in 2014 to 45% and 35% in 2023, respectively. This decrease is attributed to the competitive advantage of aparthotels, offering better value for money and enhanced convenience for travelers. While five-star hotels are less affected, challenges may arise in the future.
He noted that due to this, around 80% of hotel projects in Ghana are reportedly on hold, reflecting the shifting dynamics in the sector.
This revelation prompts inquiries about the potential influence of internationally funded aparthotels on the local hotel industry and the wider economic implications for Ghana.
The future of Ghana’s hospitality industry hinges on the coexistence and mutual complementation of traditional hotels and aparthotels in the evolving market.
Source: theindependentghana.com
