Eight new hotel developments are under way in Accra, the capital of Ghana and one of the fastest-growing cities in Africa, according to a report in ITCM.

Ghana is the focus of considerable interest from the hotel investment market, with many of the large global brands vying to open properties there from luxury brands such as Kempinski and Shangri-La to mid-market and economy hotels such as Holiday Inn Express and Ibis, the report said.

Investors are attracted to the city because of its growing economy, political stability and conducive investment climate, according to a report from HVS London, which does hotel valuations and feasibility studies.

Hotel supply in Ghana grew by an average of 8 percent from 1998 to 2011 after years of inadequate hotel accommodation.

While the market is still characterized by local African brands such as African Regent Hotel, Fiesta Royal and Labadi Beach Resort, it is now becoming a development hotspot for large international chains looking to expand in Africa.

International brands operating in the market include Mövenpick, Holiday Inn, Novotel and Best Western.

Hotel market dynamics in Accra have mirrored the city’s economic growth, HVS performance data show.

Airport arrivals and visitors to Ghana experienced annual growth of 8.6 percent from 2001 to 2011, said Veronica Waldthausen with HVS London.

Revenue per available room (RevPAR) on a sample of upscale hotels in Accra showed continuous growth from 2009 to 2012 and little impact from the global economic recession. The rise in RevPAR is attributable mainly to hoteliers pushing rate ahead of occupancy as demand in the market remained high, the report said.

“We consider Accra to be an important emerging market within Africa, with much potential,” Waldthausen said. “The country is set to become one of the leading tourist markets on the continent, given its strategic geographical location, political stability, expanding economy, growing infrastructure and diverse tourist attractions.”