Senegal – a rising star
As the potential for tourism investment in under-exploited Francophone Africa becomes ever-clearer, Senegal has been highlighted as an emerging economy that's ripe for further development.
As the potential for tourism investment in under-exploited Francophone Africa becomes ever-clearer, Senegal has been highlighted as an emerging economy that's ripe for further development.
Rwanda is no longer a newcomer into the tourism scene - it has paved its own way to becoming a leading eco-tourism and MICE destination, anchored in its vision, values, aspirations and leadership. Now is the time to invest in this country full of opportunities and possibilities.
"Whilst theres much thats been said about the traditional hotel industry bemoaning the new home-sharing economy, the fact remains that, companies like Airbnb who dynamically blend tech and travel are not for hotels to fear, even as the rental room giant continues to enjoy rapid growth in Africa," says Wayne Troughton, CEO of specialist hospitality and real estate consultancy firm, HTI Consulting.
The facts and figures behind an unprecedented hotel expansion in Francophone Africa are revealed in the latest research by W Hospitality Group, the international experts in hotels, tourism and leisure based in Lagos, Nigeria.
In their efforts to make a positive contribution towards tourism development and the growth of the hotel industry at large, BON Hotels, West Africa's fastest-growing hospitality company, has announced their plans to partner with prominent Nigerians with strong roots in the hospitality industry to open a hotel school in Abuja early next year.
We were proud to host one of the biggest events on the African hospitality calendar recently, with the Radisson Blu Hotel, Nairobi Upper Hill team creating the ideal atmosphere for a wonderful event.
PMR Hospitality Partners, a South African-based hospitality management and advisory company, is merging with Atlanta-based Valor Hospitality Partners, which was formed by Euan McGlashan and Steve Cesinger in 2012. Terms of the merger were not disclosed.
Pioneering hospitality management company, Aleph Hospitality, today announced the signing of management agreements for two new hotels in Kenya; the Best Western Plus in the Westlands district of Nairobi and a three-star hotel in the popular coastal resort of Mombasa. The signings, which coincide with the company's third birthday, continue the firm's rapid growth, taking its portfolio to six properties overall, spanning Kenya, Ethiopia, Liberia and Senegal. Upon opening in Spring 2019, the Best Western Plus Nairobi Westlands will feature 100 guest rooms, a dedicated meetings floor and two food and beverage outlets, including a rooftop bar, in-keeping with the area's existing popularity as an upmarket entertainment hub. The as-yet-unbranded Mombasa hotel will offer 106 guest rooms along with extensive events space and leisure facilities, including a pool, in close proximity to both the central business district and the city's famous beaches. Scheduled to open in Spring 2020, Aleph Hospitality has already commenced discussions to secure a suitable brand for the property under franchise agreement. "This is the growing trend in Africa today," explained Bani Haddad, founder and managing director of Aleph Hospitality. "Owners are increasingly looking for the power of an international brand above their door and all of the major brands are looking to franchising as the key vehicle for growing their footprint more rapidly. Through our international brand experience and our in-depth local knowledge, we are uniquely placed to operate in the middle, bringing together both parties for mutual success." The two signings also coincide with the Africa Hotel Investment Forum (AHIF), taking place in Nairobi from 2-4 October, an event which Aleph Hospitality has chosen to sponsor for the first time in 2018. The conference will see the company unveil its new marketing campaign, 'Hotel management. Tailored to fit.', which seeks to communicate the organisation's unique value proposition as the only company dedicated to Africa and the Middle East able to offer both white-label and third-party management solutions for properties of varying star ratings, sizes and locations. "In the three years since the company's inauguration, not only has our portfolio grown rapidly, we have also broadened our offering to more fully encompass all of the services our owners were seeking. Every property is truly unique in its needs and we are proud to be able to reflect that in the nature of our management agreements. As the leading hotel investment conference in sub-Saharan Africa, AHIF is the perfect place for us to communicate the value that we can add," commented Roz Money, Aleph Hospitality's vice president of marketing and public relations. Delegates attending AHIF can find Aleph Hospitality at Stand 13, within the main exhibition area at the Radisson Blu Upper Hill Nairobi. Both Haddad and Money will also be co-hosting round table sessions during the event, discussing third-party management and best practices in project delivery respectively.
Ethiopia once again heads the league for hotel development in East Africa, according to a regional focus from the influential annual hotel pipeline survey by Lagos-based W Hospitality Group.
"Angola's growth prospects are set to rise as the country continues to make strides towards a more positive economic course," says Wayne Troughton of specialist hospitality and real estate consultancy firm, HTI Consulting. "Higher oil prices and sounder policies under President Joao Lourenco should bring greater stability to Africa's second largest crude exporter, strengthening the country's institutions and attracting foreign investment that will spur economic growth and contribute to the diversification of the econ omy, including sectors such as tourism and hospitality." "The breakneck economic growth that Angola enjoyed following the end to decades of civil conflict in 2002 came to a sudden stop when the price of oil crashed in 2014," says Troughton. "The subsequent vulnerability of the country's economy due to its reliance on oil was strongly evident over recent years, with decreasing oil prices seeing negative GDP growth in 2016 of -0.7%," he explains. "In 2016, hotel room occupancy in Angola fell to just 25%, although the rate in the capital Luanda was higher at 60%. The weakened economic environment, combined with a slow down in the oil sector (a primary driver of hotel room nights), negatively impacted the market, notably in Luanda. A number of new hotel projects, many expected to enter the market in 2015, were put on hold as developers chose to wait out the challenging market conditions," he says."More recently, however, the new go vernment's Macroeconomic Stabilization Program, along with a resurgence in the oil price currently trading above USD 70 a barrel, has brought a renewed energy to Angola," he states. Recent findings by the The International Monetary Fund have also commended the government's efforts to improve the investment climate and revised growth forecasts for 2018 have been moved upwards from 1.6 to 2.2 percent. Comments Troughton, "Whilst the projections are moderate, it is nevertheless an indication the economy is undergoing a mild recovery and that elements to drive further economic growth are being put in place.""Ultimately, a restored economic environment will have a positive impact on the country's tourism and hospitality markets," he continues. "A series of measures are currently expediting the issuance of tourist and business visas, a historically difficult process that has long been a major complaint from international companies and should help to eas e business travel." In addition to this, construction on the New Luanda International Airport, originally scheduled for opening 2015/2016, has commenced anew after several delays, and the new airport, now forecast to open in 2020, is projected to increase Luanda's overall capacity from 3.6 million to 15 million passengers per annum. The Sonangol Hotel (a 377-room, 24-storey hotel in Luanda) project is back on track after a two-year shutdown. According to information by oil company Sonangol, "it will be one of the largest and most impressive hotel units in the country" and "will be able to see works completed this year." Park Inn by Radisson Lagos Apapais is also set to open later this year and, according to local Angolan newspaper Valor Econômico, AccorHotels will return to the country. Alka Winter, Vice President of Global Communications AccorHotels Middle East and Africa, wasn't able to delve into the specifics but did say, "We believe in the long-term potential in the countries that we operate in, and within the context of Angola, we look forward to developing our operations there in the future and providing our management expertise across a range of brands."In August this year the Angolan government announced an investment of $20 million to construct a local hospitality training institute, Luanda Hotel School, in a bid to boost the country's tourism industry. "The $20 million project, which is a both a working hotel and a hospitality school, is expected to open within 12 months and will have a capacity for 500 students will have 50 rooms, 12 classrooms and accommodation for 96 students," said Angola's Minister for Hotels and Tourism, Pedro Mutindi. The new Operational Plan for Tourism 2018/2022 should also help leverage tourism in the economy. According to the minister, it is essential to improve basic services, such as access roads and inspection of tourist sites, in order to safeguard their faciliti es, as well as training human resources to allow Angola to reach world standards in the tourism sector. Angola is focused on reducing its dependence on oil through the diversification of its economy. Currently oil accounts for around 96% of exports, however the projection by BMI that oil production will decrease annually by 4.3% between 2020 and 2027 heightens the urgent requirement for diversification. A Private Investment Law, recently approved by the National Assembly, removes several entry barriers to foreign direct investment. The government has also launched a program for diversifying exports and substituting imports. The country has a significant base of mineral and agricultural wealth. It is the third largest producer of diamonds in Africa and has gold, cobalt, manganese, and copper, as well as natural gas reserves that have yet to be fully developed. "Prospectively the growth of the hotel demand in Angola will continue as new focus areas potentially increase the flow of travellers to the country." says Troughton. "As reforms continue, Angola's attractiveness as an investment destination will grow. Investors with medium to long term views and with previous experience working in Africa are likely best suited for early entry into this market.""The ongoing systematic reforms, coupled with the President's commitment to promote increased commercial activity, warrant that prospective investors consider opportunities now. Multinationals willing to take a long-term view can exploit the window of opportunity that is opening and get ahead of competitors," he concludes.
Based on H1 2018 figures from STR, the leading provider of data and analytics for the global hotel industry, Marrakech has emerged as a standout performer among key African cities.
Bench Events, the organiser of the Africa Hotel Investment Forum (AHIF), which is the premier hotel investment conference in Africa, today announced that it is launching a sister event, named the Forum sur l'Investissement Hôtelier Africain (FIHA), to focus more precisely on North and West Africa. Proceedings will be bilingual, with presentations and panel discussions led in French with simultaneous translation to English. The first edition of FIHA will take place in Marrakesh during the first week of February 2019.In Africa, hotel investment is booming. Hotels are core infrastructure because they are essential to attracting tourists and business people who come with foreign currency to spend and invest. As the economic environment in Africa has become increasingly less risky in the past two or three decades and because the number of hotels per head of population is a tiny fraction of what it is in highly-developed western economies, the growth in hotel development across Africa has consistently outstripped general economic growth - which in many African countries is currently higher than much of the rest of the world.Imad Barrakad, CEO, The Moroccan Agency for Tourism Development (SMIT), said: "I am very pleased that Morocco will be the launch venue for FIHA, as I fully expect it will attract the kind of people who have the influence and resources to make a destination successful. At FIHA, we will be engaging with them and making a compelling case for further investment in the hospitality sector here."Morocco makes four strong arguments to attract investors. First, the country has a stable political and economic climate. Second, it is strategically-located, within a three-hour flight of the major European capitals and seven hours from Dubai, Moscow and New York. Third, its laws are investor-friendly, with no restriction on land ownership or repatriation of profits and fourth, it has robust infrastructure, including a major hub airport in Casablanca.Tourism is central to Morocco's economy. The World Travel & Tourism Council (WTTC), reports that tourism represented over 21.5% of Morocco's exports in 2017 and forecast it to grow by 4.2% per annum over the coming decade. From an inbound tourism perspective, Morocco in general and Marrakesh in particular, have experienced a strong start to the year, with occupancy and room rates substantially up on the equivalent period in 2017, according to STR, the leading provider of data and analytics for the global hotel industry.
International tourism continues to show significant growth worldwide and as a result the hospitality industry is becoming highly competitive with the focus shifting from hotel design and technology to experience-based differentials and offerings that make a hotel stand out and capture the guests' attention.
Hotels in the Middle East reported negative Q2 2018 performance results, while hotels in Africa posted growth across the three key performance metrics, according to data from STR.U.S. dollar constant currency, Q2 2018 vs. Q2 2017Middle East
As a model of democracy, Senegal has also one of the most resilient economies in West Africa. Thanks to dynamic business and leisure tourism boosted by major public infrastructure projects, the country succeeds in captivating international investor's interest. As a consequence, writes the team from Horwath HTL Ivory Coast, Dakar's hotel pool has further strengthened whilst secondary clusters are developing at a steady pace (mainly in Petite Côte region, Diamniadio).
Deutsche Hospitality is showing its continued strong commitment to social projects by using donations to fund the building of a private school in Enugu, Nigeria. The school will be able to accommodate up to 300 pupils, and the company has already handed over a cheque for €60,000 to the Reiner Meutsch "FLY & HELP" Foundation to pay for the works. The money has been raised via the "Deutsche Hospitality 1x1" scheme, which donates €1 to charitable causes for every booking made via the Steigenberger and IntercityHotel websites. Only recently, the same pot was used to finance the commissioning of a drinking water treatment plant in the Egyptian desert.
"We're open for business and forging ahead with plans for tourism growth in Cape Town and the Western Cape" - that's the message a group of industry heavyweights are proclaiming, as the region comes together to help build a sustainable tourism destination that will continue to thrive. In a joint statement with WESGRO, the Official Tourism, Trade & Investment Promotion Agency for Cape Town and the Western Cape, Marriott International (www.Marriott.com), reiterated that it was ready to own the upswing.The region's rapid and pragmatic response to the drought through crisis management from both public and private enterprise has shown the world it is possible to build a sustainable, water-wise destination. In the last three years alone, the City of Cape Town has reduced its water usage by nearly 60%, setting a new world-class standard. This is a model that the rest of the world can look to emulate."Responsible management of natural resources in our hotel operations has been a part of our business," said Neal Jones, Chief Sales and Marketing Officer, Middle East and Africa, Marriott International.
Cape Town retains the biggest share of planned hotel development in South Africa despite showing a decrease in total planned rooms, according to a regional focus from the influential annual hotel pipeline survey by W Hospitality Group.Cape Town has 25% of the South African development pipeline, with 1,063 rooms in six hotels. Durban now has 16% with 697 rooms in five hotels, an increase of 40% in terms of total rooms on last year.Pretoria has 11% of the pipeline with 463 rooms in three hotels. Johannesburg has only 10% of the pipeline with 432 rooms in four hotels and Umhlanga has 7% of the pipeline with 298 rooms in two hotels.Compared with last year, development is slowing in Cape Town and Pretoria, with the number of planned rooms down 22% and 28% respectively. In contrast Durban, Johannesburg and Umhlanga are seeing growth of 40%, 23% and 113% respectively.W Hospitality Group's Managing Director, Trevor Ward said: "Whilst Cape Town continues to offer great opportunities for hotel investment, it is exciting to see new hotel construction projects all over South Africa, in places such as: Addo, Ballito, Boschendaal, Hermanus, Kruger, Malelane, Mossel Bay, Nelspruit, Paarl, Polokwane, Port Elizabeth, Rosebank, St. Francis, Stellenbosch, Tsitsikama and Umfolozi.This year's pipeline report, now in its 10th edition, has 41 contributors, reporting 418 deals with over 100 brands across Africa. Year-on-year performance for Africa as a whole in 2018 shows growth, but more muted than in recent years - 25% growth in the number of pipeline rooms in 2015; 19% in 2016, and 13% in 2017, much the same as the 14 per cent growth in 2018.Hotel development in Africa in general and South Africa in particular will be a core topic on the agenda of the Africa Hotel Investment Forum (AHIF) Regional Briefing, taking place in Cape Town on 13th June, where speakers will include senior executives from Hilton, Marriott and other leading brands plus economists, financiers and expert advisors to the hospitality industry.
Autograph Collection Hotels (www.AutographHotels.com), Marriott International's (www.Marriott.com) distinctive collection of passionately independent hotels, today welcomed five African Pride Hotels to its growing global portfolio, marking the debut of the brand in South Africa. These hotels include, African Pride Melrose Arch Hotel, African Pride 15 on Orange Hotel, African Pride Mount Grace Country House & Spa, African Pride Irene Country Lodge, Arabella Hotel & Spa, Arabella Country Estate, and join the brand's diverse portfolio of more than 135 one-of-a-kind hotels that champion values of vision, design and craft.African Pride Melrose Arch HotelIdeally situated in the heart of Johannesburg, the 118 room, residential hotel is a unique blend of chic design and outstanding service. Located in a bustling neighborhood, brimming with cafés, al fresco dining, high street fashion and more, the hotel sets the tone for a distinctly contemporary urban experience within a pulsating city. Dine at the March Restaurant that offers global cuisine, or linger by the fire at the Library Bar over a drink or simply lounge by the crystal waters of the outdoor pool and be inspired by the oversized buckets and mirrors and the surprise design pop ups throughout the hotel that heighten the unique character and style of this hotel.African Pride 15 On Orange HotelSet in the trendy Gardens area of Cape Town, the hotel is just a short distance from the city center and offers convenient access to the city's world-famous landmarks. With 129 contemporary rooms, the hotel reflects a quirky style and stand-out decor. Soak up the Cape Town sun at the rooftop pool; indulge in a globally inspired menu at Savour; sip a cocktail in the elevated chandelier pod while enjoying panoramic views of the majestic Table Mountain; or pamper yourself with a relaxing spa.African Pride Mount Grace Country House & SpaNestled amongst the ruggedly beautiful Magaliesburg Mountains, merely an hour's drive from Johannesburg and Pretoria, the 121 room intimate hotel offers a serene country escape. Ignite the imagination and rediscover yourself in the serene gardens of the famed hydrotherapy spa. Relax in the Jacuzzi while listening to the soothing sound of the waterfall or escape in the sound flotation pool and let time fade away. Relish wholesome fresh food that showcases seasonal fruits and vegetables perfectly complementing the relaxing spa treatments at the Spa Café, indulge in delicious country garden style food with a chic flair at the award-winning Rambling Vine restaurant that features quarterly seasonal menus and an award winning wine list or try a 'fun' meal at Twist where unlike other restaurants, the kitchen is brought into the restaurant with an unusual buffet style offering. The charming country setting makes this experience truly special.African Pride Irene Country LodgeIn the quaint and historical village of Irene, in the heart of Gauteng, South Africa's economic capital, lies African Pride Irene Country Lodge, a haven of peace and tranquility. The scenic long and winding oak- lined lane leading up to the lodge's entrance leaves you feeling like you've left the city without actually having done so. With beautiful lakeside views, the lodge boasts of 75 spacious rooms a range of dining options and an award winning Spa. Irene is known for its roots in art and culture and the local markets are a testament to the creativity that abounds here. Irene Farm across the road from African Pride Irene Country Lodge, Autograph Collection provides an authentic country experience, where dairy cows are milked daily and the local shop stocks an abundance of farm fresh delicacies.Arabella Hotel & Spa, Arabella Country EstateSituated in the heart of the Kogelberg Biosphere, close to Hermanus' the world-famous whale watching destination, the 145 room Arabella Hotel & Spa overlooks a spectacularly attractive natural lagoon, surrounded by a lush landscape. The hotel boasts a 18-hole golf course designed by Peter Matkovich, ranked amongst the best in the country, exquisite on-site dining options, an award winning spa, a fully equipped fitness center, multiple swimming pools and more. Just an hour away from Cape Town, the Estate places you near a wide selection of outdoor adventure activities that provide enough and ore for an adrenaline rush. "This is an incredibly exciting time for us, and we are thrilled to have the African Pride Hotels join Autograph Collection Hotels' dynamic hotels in some the most desirable countries of the world," said Alex Kyriakidis President and Managing Director, Middle East and Africa, Marriott International. "South Africa is a strategic growth market for us and key to our success in the region. A land of astounding diversity, it never fails to create an imprint on the minds and hearts of travellers from across the globe. This rebranding is in lockstep with the growing demand from consumers and their desire for unique and differentiated experiences wherever they travel."From contemporary urban to boutique country houses, each of these hotels offers travellers an enviable range of artistic, culinary and cultural adventures with a unique character and a defining sense of place."African Pride Hotels bring to life the vision of the brand and celebrate the distinctive character and individuality of each hotel by curating an authentic and enriching travel experience… Exactly Like Nothing Else," said Neal Jones Chief Sales and Marketing Officer Middle East and Africa, Marriott International. "We are delighted to see these hotels join the brand's global portfolio of iconic hotels in destinations like Dubai, Rome, Kuala Lumpur and London amongst others."For further information on Autograph Collection Hotels, visit www.AutographHotels.com
With the continued and ever-increasing focus on the environment and the demand for sustainability around the world, green event and conference planning has become an established trend within the global tourism and convention industry. Conferences and events have a fundamental impact on the communities and the environment where they are hosted - some good, some bad. Whilst a boost to the local economy is welcomed, an influx of people can overwhelm local infrastructure or leave behind a significant amount of waste, environmental degradation, water and energy consumption, air pollution and habitat destruction to name a few.