Travel

Hoteliers bet on booming Africa

Cheetah.
Cheetah. john mccutcheon

NEW research from Lagos-based W Hospitality Group reveals that the hotel industry is betting big on a boom in Africa over the coming years. Virtually all the major hotel chains are making moves to increase their presence across the continent.

In total, 208 new hotels with over 38,000 rooms are planned to come to the market in the next five years - 63 hotels with 9,612 rooms in 2012, 55 hotels with 9,356 rooms in 2013, 57 hotels with 12,296 rooms in 2014, 30 hotels with 6,060 rooms in 2015 and three with 750 rooms In 2016. Overall, this represents an increase in capacity of 30 per cent over the existing base. Of the total number of rooms in the pipelines, 55 per cent are under construction, the balance in the planning and design phase.

The country receiving the greatest attention for investment is Nigeria, where 43 hotels with 6,808 rooms are planned. It is followed by the established North African tourist destinations of Morocco, with 35 hotels and 5,809 rooms, and Egypt, with 19 new hotels and 5,923 rooms. The next countries on the list are Algeria, Tunisia, Ghana and Gabon. Despite the problems there, Libya also features in the "top ten", where three hotels with just over 1,000 rooms are planned.

Of the major hotel chains, Accor is the leader, by a fair distance, with a pipeline of 36 hotels and 5,982 rooms. It is followed by Carlson Rezidor with 25 hotels and 5,337 rooms, Hilton, with 11 hotels and 3,380 rooms, IHG with nine hotels and 2,885 rooms, Marriott with 14 hotels and 2,512 rooms, Mövenpick, with 12 hotels and 2,182 rooms and Starwood with 6 hotels and 2,140 rooms.

Judged against a global benchmark, economic growth in Africa is impressive, predicted by the IMF to average six per cent in 2012, which is way ahead of Brazil (three per cent), Russia (3.3 per cent) and the global average of 3.3 per cent.

A recent report in the Sunday Times stated: "The scale and extent of Africa's economic boom is unprecedented - albeit from a low base. Over the last decade, six of the world's 10 fastest-growing countries were African. In eight of the last 10 years, Africa's lion states have grown faster than Asia's tigers. One of the fastest-growing economies in the world last year was Ghana - at a whopping 13 per cent, compared with barely one per cent in most European countries and just over one per cent in America."

Whilst the economic overview and active hotel development activity identified by W Hospitality Group's research make Africa sound like the next great investment proposition, success is not straightforward. African challenges include political risk, corruption, bureaucracy, poor infrastructure and lack of skills in the labour force. Identifying reliable and efficient business partners is particularly critical.

Jonathan Worsley, chairman of Bench Events, the company that organises several premium international hotel investment conferences, including the Africa Hotel Investment Forum (AHIF) said: "In business, who you know can often be as important as what you know but that is particularly true here - which is why we believe there will be value in creating an event that brings together the leaders of the African hotel industry with top international investors."

AHIF will be held at the InterContinental Hotel, Nairobi on September 25-26, where the agenda will focus on how to capitalise long-term on the opportunities presented by Africa and strategies to overcome the challenges.

Trevor Ward, managing director of W Hospitality Group, which carried out the hotel pipeline research, and who will be speaking at AHIF, said: "Whilst the major hotel pipeline development is taking place in North Africa, we are seeing serious global investors undertaking hotel development projects in virtually every country in Africa. This is a continent whose time has come."

>> Read more travel stories.

Topics:  boom hotels travel travelling



Hearing for cops accused of locking child, 8, in paddy wagon

Two police officers are facing Lismore Local Court today.

Despite an 'influx of relatives', a two-day hearing has been set

RECALL: Plastic pieces found in packaged garlic bread

Assorted garlic breads are being recalled due to plastic pieces found in the product.

Premade garlic bread has been recalled by George Weston Foods.

A nasty facial tumour could destroy this little girl

HORRIFIC TUMOUR: Lennox Head mum Sadie Hunt is hoping to help this little Kenyan girl Judy Kwamboka by raising money for needed surgery.

Like all 13-year-olds Judy Kwamboka should be noticing boys

Local Partners

Value of safety is $250,000 in the community

NSW government has made grants available to Clarence and Richmond Valley councils and local community organisations for projects to improve safety.


Ahoy! The Wooden Boat Festival is on its way

Members of the Richmond River Rowing & Sailing Club admire Mark Pierce's boat Northbridge Junior, ahead of the 2017 Wooden Boat Festival on Australia Day. Back row, from left, is Mark Pierce, Jacqueline Heap, Commodore Phil Robbins and James Kalaf. At front, from left, is Tony Pullyn, George Renault, David Bowler, Geoff Benson and Maurice Renault.

Australia Day event a must-see for fans of timber craft

Northern Rivers murder mystery takes out award at Flickerfest

MURDER MYSTERY: Northern Rivers young actress Yasmin Honeychurch in a still from the award-wiining film In a Canefield by Emily Avila and Coralie Tapper.

Finding'little star' brought film shoot to the region.

Join the challenge to Live Life Large this Friday

Deborah and Neil Marks have been inspired by Jodie's Inspiration to Live Life Large.

Business owner's invitation to join her on Jodie's Inspiration hike

50 Shades actress on why she hates the film

Dornan and Johnson’s frequent sex scenes were ‘awkward’ to film. Picture: SuppliedSource:Supplied

Jamie Dornan doesn’t blame you for hating 50 Shades

Chris Hemsworth’s X-rated compliment to former co-star

Australian actor Chris Hemsworth poses on the red carpet for the European premiere of the film 'Avengers: Age of Ultron' in London on April 21, 2015.

THOR star once paid former Home and Away actress a lewd compliment.

'I can't keep my mouth shut any longer'

Singer George Michael.

George Michael’s cousin blasts singer’s boyfriend Fadi Fawaz.

Fresh faces: NCIS gets a shake up with new cast members

The new cast of NCIS, from left, Rocky Carroll, Pauley Perrette, Sean Murray, David McCallum, Brian Dietzen, Wilmer Valderrama, Emily Wickersham, Mark Harmon, Duane Henry and Jennifer Esposito.

THREE new characters join naval drama for season 14.

First the Onesie, now an Xbox One S inflatable controller

Fancy an inflatable Xbox One S controller?

Inflatable controller 'perfect sidekick' for Australia Day party

Sarah Harris: Here’s what Amber Sherlock should’ve done

Studio 10 and Shark Tank presenter Sarah Harris.

STUDIO 10 host says Sherlock could’ve avoided the subsequent uproar.

LAND VALUES: Figures reveal how much your property is worth

Land values in Ballina have increased over the past 12 months.

Property in one Northern Rivers town has increased by almost 14%

6 new estates to build a home on the Northern Rivers

Land estates are available now on the Northern Rivers with some stages opening up soon.

Looking for a place to put down roots and raise a family?

Historical home leaves family's hands after 75 years

SALE CONFIRMED: The Gympie Regional   Realty team which sold the Ramsey property are (back) Mel Gastigar, Dorothy Palmer and Margaret Cochrane, with (front) home seller Terri-Jayne Ramsey.

Ramsey family played a huge role in Gympie's growth.

Pat Rafter's $18m Coast home proves hot property

PAT'S PAD: The Sunshine Beach home of tennis ace Pat rafter is on the market for a record price.

"It's a record for our company and for the Sunshine Coast.''

Ready to SELL your property?

Post Your Ad Here!