HTI Consulting recently launched a new report on hotel operator selection and management contract negotiation in Africa, providing various invaluable insights into the selection process as well as important analysis on contract contents, trends, benchmarks and negotiation techniques for owners in Africa."
"Diversifying into more than one property sector is not new in the South African context, but it's a growing trend that's impacting the hotel pipeline," says Wayne Troughton, CEO of specialist global hospitality and real estate consultancy, HTI Consulting.
The strengthening of the rand against the pound and the dollar is unlikely to deter visitors to South Africa. Initial concerns that Brexit would stop Europeans from making long-haul trips have proved incorrect.
There has been significant coverage in regional media in recent months on the subject of Citizenship By Investment (CBI) Programmes, which are now operating in five Eastern Caribbean countries. Some of the commentary underestimates the crucial potential value of these programmes for the development of new hotels, as well as for the redevelopment and modernisation of existing resorts.
Welcome to the inaugural African Hotel Valuation Index (HVI), an index studying the relative values of hotels in 14 markets throughout Africa. We consider 2014 to be the ideal time to launch the study as data are now more readily available, allowing a more reasoned analysis of the recent trajectory and the growth in performance and values. As the number of investors considering African markets increases and interest in African real estate generally grows, the launch of this publication is ideally timed to be of most assistance to existing and potential hotel owners, investors, developers, banks and operators.
The first few months of the year have been challenging for hoteliers with RevPAR down significantly. The recent increase in bombings has also led some tour operators to repatriate their guests and cancel all flights until October. What is needed is a period of calm to foster stronger confidence in the security in the country. Whilst it is easy to criticise over-reaction to events and sensationalist journalism, no-one will travel to a country or city in which they feel unsafe. Many of the recent events in Nairobi have centred around the Eastleigh area of the city; an area few tourists would visit. Yet at first glance the media reports suggest the whole of Nairobi is off limits. Of course, all visitors must take sensible precautions and heed advice from government and security sources, but now is a time for all parties to hold their nerve and continue to support the somewhat beleaguered Nairobi hotel industry.
In 1994 South Africa held it first democratic elections with Nelson Mandela elected President. South Africa was alive with possibilities! And so the idea of hosting the Soccer World Cup on African soil was cogitated. Michele de Witt of Horwath’s Cape Town office projects what is going to happen in South Africa’s hotel industry before, during and after the World Cup. Challenges abound, but she is optimistic they will be met with flying colors.