A recent report by the Ghana Statistical Service (GSS) has revealed that hostels in Ghana recorded significantly higher occupancy rates than several hotel categories between November 2024 and February 2025. The Accommodation Unit Survey by GSS found that hostels had room occupancy rates of about 91% to 95% during this period. Standard hostels, in particular, recorded high room occupancy of approximately 96% to 99%. This contrasts with lower utilisation rates among some hotel categories.
The GSS report highlights a wide performance gap within Ghana's accommodation industry. Despite hotels accounting for about 70% of available room capacity and roughly 55% to 60% of occupied rooms each month, their occupancy rates were lower than those of hostels. For instance, in February 2025, 1-star hotels recorded a room occupancy rate of just 28%, with bed occupancy at 24%. This disparity demonstrates why national accommodation averages can conceal important variations between different types of establishments.
National room occupancy rates remained below 50% during the four-month period. The rates stood at 44.7% in November 2024, peaked at 46.6% in December, declined to 44.1% in January 2025, and returned to 44.7% in February. The GSS advises accommodation businesses to assess performance based on factors including occupancy, pricing, guest mix, and length of stay, rather than relying solely on the number of rooms available.
The strong performance of hostels has implications for investment decisions within Ghana's accommodation sector. The GSS recommends that investors and financial institutions consider demonstrated demand and utilisation when assessing accommodation investments, rather than focusing solely on available capacity. This approach can help ensure that investments are made in areas with high demand and potential for growth.
The GSS report also notes that accommodation establishments should routinely monitor key performance indicators such as occupancy, Average Daily Rate, Revenue per Available Room, guest composition, and length of stay. This information can guide pricing, marketing, service delivery, and market positioning, enabling businesses to make informed decisions and improve their competitiveness.
The findings of the GSS report cover only four months of a planned 12-month survey and should be treated as an emerging baseline rather than evidence of a long-term trend. Nevertheless, the report provides valuable insights into the current state of Ghana's accommodation sector and highlights the need for a more nuanced understanding of the industry's performance.
The report's recommendations are expected to inform decision-making in the accommodation sector and contribute to its growth and development. By considering demonstrated demand and utilisation, investors and businesses can make more informed decisions and help drive growth in the sector. The GSS report is a valuable resource for stakeholders in the accommodation industry, providing a detailed analysis of the sector's performance and trends.
Key points
- Hostels in Ghana recorded higher occupancy rates than hotels between November 2024 and February 2025.
- National room occupancy rates remained below 50% during the four-month period.
- The GSS recommends that investors consider demonstrated demand and utilisation when assessing accommodation investments.
