Local businesses induce African hotel sector growth
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Less foreign visitors, but increased demand from locals led to growth in the African hotel sector, according to HVS new report
“Africa’s travel and tourism industry has the potential to generate further growth and development, and the discovery of oil and gas in many African countries will also help economic performance”, Tim Smith, managing partner at HVS Cape Town declared.
Hotel brands such as Azalai, City Lodge and Protea (purchased by Marriott) are trading well, according to the 2015 African Hotel Valuation Index, as more investors are confident that Africa is a growing market.
Seychelles luxury resorts came first in the evaluation. Cairo and Sharm el Sheikh hotels registered the higher growth, according to African HVI, even if Egypt tourism still has to recover after country's political changes. Cape Town also starts to show a slow recovery.
On the other hand, Accor plans to invest in 50 hotels opening in Angola.
Nigerian cities of Abuja and Lagos are the last on the list, due to impact of the Ebola epidemic.
Sophie Perret, director at HVS London, speaks about African investments:
“While hotel investment in Africa carries high risk, it also comes with higher reward, but the change in hotel values in some of these markets shows that the reward can be substantial.
“With improved airlift, confidence in democracy and economic growth all providing corporate and tourism demand, hotel investment in existing and new markets across the continent should be strong in the medium to long term.
“There will continue to be short-term challenges, but in the longer term, the future looks bright.”
The AHIF annual conference gathers international hotel investors and connects international and local markets to develop Africa's tourism projects and hotels. The Africa Hotel Investment Forum event will welcome its guests today and tomorrow, at the Sheraton in Addis Ababa.
“Africa’s travel and tourism industry has the potential to generate further growth and development, and the discovery of oil and gas in many African countries will also help economic performance”, Tim Smith, managing partner at HVS Cape Town declared.
Hotel brands such as Azalai, City Lodge and Protea (purchased by Marriott) are trading well, according to the 2015 African Hotel Valuation Index, as more investors are confident that Africa is a growing market.
Seychelles luxury resorts came first in the evaluation. Cairo and Sharm el Sheikh hotels registered the higher growth, according to African HVI, even if Egypt tourism still has to recover after country's political changes. Cape Town also starts to show a slow recovery.
On the other hand, Accor plans to invest in 50 hotels opening in Angola.
Nigerian cities of Abuja and Lagos are the last on the list, due to impact of the Ebola epidemic.
Sophie Perret, director at HVS London, speaks about African investments:
“While hotel investment in Africa carries high risk, it also comes with higher reward, but the change in hotel values in some of these markets shows that the reward can be substantial.
“With improved airlift, confidence in democracy and economic growth all providing corporate and tourism demand, hotel investment in existing and new markets across the continent should be strong in the medium to long term.
“There will continue to be short-term challenges, but in the longer term, the future looks bright.”
The AHIF annual conference gathers international hotel investors and connects international and local markets to develop Africa's tourism projects and hotels. The Africa Hotel Investment Forum event will welcome its guests today and tomorrow, at the Sheraton in Addis Ababa.
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