Hostels outperform hotels as accommodation demand shifts to lower-cost options – GSS
According to the Service’s Accommodation Unit Survey, hostels recorded room occupancy rates of about 91% to 95% during the period, with standard hostels recording particularly high room occupancy of approximately 96% to 99%.
Between November 2024 and February 2025, hostels in Ghana outperformed most hotel categories in terms of occupancy rates, according to the Ghana Statistical Service (GSS). Hostels saw room occupancy rates ranging from 91% to 95%, with standard hostels achieving particularly high rates of 96% to 99%. In contrast, 1-star hotels had room occupancy rates as low as 28% in February 2025, with bed occupancy at 24%.
Despite hotels representing about 70% of available room capacity and 55% to 60% of occupied rooms monthly, the GSS points out that national averages can mask significant differences between various types of accommodations.
The strong performance of hostels follows a national room occupancy average below 50% during the four-month period, which peaked at 46.6% in December 2024, fell to 44.1% in January 2025, and returned to 44.7% in February 2025. The GSS advises accommodation businesses to evaluate performance based on factors such as occupancy, pricing, guest demographics, and length of stay, rather than relying solely on room availability or rates.
The service highlights that the high utilization of hostels, coupled with lower occupancy in some hotel segments, underscores the importance of assessing performance using a broader set of metrics.
For investors and financial institutions, the findings suggest a shift in demand within Ghana’s accommodation sector. The GSS recommends that stakeholders focus on demonstrated demand and utilization rather than just available capacity when making investment decisions. The organization also suggests regular monitoring of occupancy rates, Average Daily Rate, Revenue per Available Room, guest composition, and length of stay to inform pricing strategies, marketing efforts, service delivery, and market positioning.
It is important to note that the data presented is based on a four-month period and should be viewed as an emerging baseline rather than an indication of a long-term trend.
Written by urgent.news from Joy Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
