Research by W Hospitality Group, the award-winning consultancy and among the founding members of Hotel Partners Africa (HPA), reveals that the selection of planned new hotel rooms inside the Hotel Development Pipeline in Africa has increased by 16 per cent on last year, which was 12 per cent up on 2011. Here’s in accordance with a sample of 29 international hotel chains, with 59 brands between them, and analyses deals that they’ve signed with owners.
As in previous years, the detail behind the headline shows a special tale of 2 Africas. In North Africa, the construction pipeline grew by 9 per cent, from 17,217 planned new hotelrooms in 2012 to 18,782 rooms in 77 hotels in 2013. In sub-Saharan Africa, however, the chains’ pipeline now stands at 21,052 rooms in 130 hotels, up from 17,109 rooms in 100 hotels a year ago – an enormous 23 per cent increase. This compares to 4 per cent growth in Europe and eight.6 per cent growth in Asia Pacific, in accordance with data produced by STR Global (although the expansion in Africa is from a far lower base).
Trevor Ward, Managing Director of W Hospitality Group said: “The main reasons for the slower growth in North Africa include the outlet of hotels within the 2012 pipeline, particularly in Algeria, a discounted investment give attention to North Africa as a result of political concerns and a better emphasis on development in sub-Saharan markets.
“There is a boom in Africa, in all sectors, including hotels. Economic growth in lots of countries is 6 per cent or higher and global investors are taking a look at the continent in a far more serious and complex way. We’re being contacted by more and more dedicated investment funds looking to enter the African hotel market.”
The five countries of North Africa all appear inside the top ten countries for brand spanking new hotels, led by Egypt (7,644 planned new hotel rooms), Morocco (5,178) and Algeria (3,160). In sub-Saharan Africa, Nigeria has by far the biggest pipeline, with 7,470 planned new rooms. The businesses leading the best way are Hilton Worldwide with 6,230 rooms in its African pipeline, Carlson Rezidor with 5,947, Accor with 5,165 and Marriott with 3,900.
Said Ward: “The major international brands are still blazing the path, led by Hilton Worldwide, forging ahead with 6,230 planned new rooms for Hilton, Doubletree and Garden Inn brands, a unprecedented 84% increase on 2012. And it is very encouraging to peer new brands entering the market, including Campanile, Dusit, easyHotel, Fairmont, Hyatt Place and W. This shows the boldness of the hotel chains not only within the continent conceptually, but in addition as somewhere where they could diversify their brand footprint.”
W Hospitality Group and Hotel Partners Africa released the report on the official launch of HPA to focus on its deep understanding of the hotel sector in Africa. HPA is a brand new consultancy formed by four pre-eminent consultants to the hotel industry in Africa – Trevor Ward and Vernon Page of Lagos-based W Hospitality Group, David Harper of Leisure Property Services (UK) and Mark Martinovic of Hotel Spec (South Africa and Dubai). Together they’re offering their clients an unparalleled range of services inside the lifecycle of a hotel venture in Africa, from feasibility & market studies, valuations,sourcing funding & finance, development management and procurement, to asset management and sales.