Research by W Hospitality Group, the award-winning consultancy and among the many founding members of Hotel Partners Africa (HPA), reveals that the variety of planned new hotel rooms within the Hotel Development Pipeline in Africa has increased by 16 per cent on last year, which was 12 per cent up on 2011. It’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 different tale of 2 Africas. In North Africa, the event 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 immense 23 per cent increase. This compares to 4 per cent growth in Europe and eight.6 per cent growth in Asia Pacific, in line 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 specialise in North Africa because 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 the continent in a far more serious and complex way. We’re being contacted by a growing number of dedicated investment funds looking to enter the African hotel market.”
The five countries of North Africa all appear within the top ten countries for brand 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 most important pipeline, with 7,470 planned new rooms. The firms leading the way in which 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 rare 84% increase on 2012. And it is very encouraging to determine new brands entering the market, including Campanile, Dusit, easyHotel, Fairmont, Hyatt Place and W. This shows the boldness of the hotel chains not only inside the continent conceptually, but additionally as somewhere where they are able to diversify their brand footprint.”
W Hospitality Group and Hotel Partners Africa released the report on the official launch of HPA to spotlight 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 through 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.