Vice President in charge of research at the IMANI Centre for Policy and Education, Bright Simmons, has raised concerns about the impact of aparthotels, exemplified by Cheddar's No. 1 Oxford Street, on the hotel industry in Ghana.

Aparthotels, such as No. 1 Oxford Street, blend apartment and hotel features, allowing occupants flexibility without fixed contracts, according to Simmons.

Situated strategically in Osu, Accra, No. 1 Oxford Street offers retail and leisure spaces, basement parking, a swimming pool, restaurant, bar, gym, and spa.

Simmons broadened his assessment beyond a single building, highlighting all "aparthotels/serviced apartments" in the country as contributors to the challenge faced by traditional hotels.

He revealed that due to the attractive nature of aparthotels in the global investor market, the International Finance Corporation (IFC) of the World Bank which helped finance the No. 1 Oxford Street is also supporting two additional aparthotel projects, both developed by the Mohinani Group in Ghana.

Simmons expressed concerns about the growing influence of aparthotels, particularly in the mid-range segment, impacting the traditional hotel sector. Over the past seven years, he noted a significant drop in the occupancy rates of four-star and three-star hotels in Ghana, from 60% and 62% in 2014 to 45% and 35% in 2023, respectively.

He attributed this decline to the competitive advantage of aparthotels, offering better value for money and increased convenience for travelers. While five-star hotels are less affected, Simmons suggested they might also face challenges in the future.

Reportedly, approximately 80% of hotel projects in Ghana are on hold, reflecting the shifting dynamics in the sector, according to Simmons.

This revelation raises questions about the potential impact of internationally funded aparthotels on the local hotel industry and the broader economic implications for Ghana.

The future of the hospitality industry in Ghana hinges on how effectively these two segments can coexist and complement each other.