With the tourism segment being a key focus for most African governments, hospitality ventures are highly upheld by public authorities who offer motivations to pull on the world’s biggest brands, making the continent the new battleground of significant universal hotel groups.
The African hotel and tourism industry was a gauge to develop by nearly 17%, with convenience request expanding from the business travelers connecting to large African cities and numerous other African business capitals, as an impression of stable economic development. As the mainland stays appealing to investors for business, trade and capital venture, it prompts an expanding interest in accommodation and hospitality products.
The tourism industry is growing at a fast pace, with massive investments planned in sub-Saharan Africa. It has demonstrated a 29% average yearly development rate in between the years of 2012 and 2017 concerning room capacity. Toward the end of 2017, hotel growths were outlined for 35 of the 49 sub-Saharan African nations, with western Africa monopolized 45% of the caliber of rooms planned, followed by southern Africa with 26% and eastern African catching 24% of the planned rooms. Regarding the number of ventures, they are to a great extent concentrated on the southern district of the continent, with South Africa having most of the investments. Kenya has the highest of hotel investments in the East Africa district, followed by Uganda, as the nations are putting forth different opportunities for tourism improvement. West Africa is likewise a key focus for a few investors, with Nigeria the primary, followed by Côte d’Ivoire and Ghana.
Worldwide hotel groups are currently exploiting the market opportunities:
- AccorHotels has set up associations with solid investors to take hold of the African travel market and intends to build its sub-Saharan Africa network up to 15,000 rooms in 100 hotels throughout the following five years.
- Carlson Rezidor, with 30 hotels contained 6,300 rooms under development across the continent, has set up a hospitality fund.
- Marriott International declared in 2014 its intention to extend its African presence to 150 properties in 17 national markets by 2020.
- The American group Hilton, with 39 hotels in 17 African nations, plan to double its existence to 80 hotels by 2020 with new openings in Ghana, Kenya, and Nigeria.
Regardless of whether universal hotel chains appear to be the main players in the field, local groups are effective, too. Mangalis Hotel Group, the new African hotel chain is investing to build 15 inns in the west and central Africa through three brands with a total of 2,200 rooms and suites. Azalaï Hotels, which has a presence in a few West African nations, with a volume of 1,000 rooms, want to grow over 1,600 rooms.