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Africa hotel development: It’s Egypt, Morocco, Accor & Marriott

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Simply 4 phrases are wanted to sum up the principle findings of this 12 months’s African lodge chain growth pipeline survey performed by W Hospitality Group, in affiliation with the Africa Hospitality Funding Discussion board (AHIF); these phrases are Egypt, Morocco, Accor and Marriott.

This 12 months’s annual survey, which is extensively acknowledged because the trade’s most authoritative supply, has, as of Q1 2022, a document 42 international and regional (African) contributors, reporting on a pipeline of lodge growth exercise totalling round 80,300 rooms in 447 accommodations, in 42 of Africa’s 54 international locations.

Trying first on the variety of rooms bodily underneath building, Morocco and Egypt are forward of the pack, with 5,577 and 6,142 rooms respectively. They’re adopted by: Ethiopia, 3,871; Cape Verde, 3,016; Nigeria, 2,544; Kenya, 2,450; Algeria, 2,337; Tunisia, 2,280; South Africa, 1,948 and Senegal, 1,919. In Tunisia, Kenya and Morocco, over ¾ of the pipeline is “onsite”, whereas in Egypt, 71% is simply on the starting stage, reflecting its comparatively “younger” pipeline (so much signed within the final 3 years). Whereas Nigeria has 45% onsite; eight of the 15 accommodations (with half of the whole rooms) which have began building have stalled, and the websites are closed.

Lodge Chain Improvement Pipelines in Africa 2022

High 10 International locations by Pipeline Standing

Lodges

Rooms

Complete

Onsite Building

1

Egypt

85

21,281

6,142

28.9%

2

Morocco

50

7,209

5,577

77.4%

3

Ethiopia

29

5,206

3,871

74.4%

4

Cape Verde

17

4,639

3,016

65.0%

5

Nigeria

33

5,619

2,544

45.3%

6

Kenya

24

3,155

2,450

77.7%

7

Algeria

15

3,202

2,337

73.0%

8

Tunisia

14

2,918

2,280

78.1%

9

South Africa

21

3,133

1,948

62.2%

10

Senegal

13

2,693

1,919

71.3%

The image modifications considerably when one appears at rooms being deliberate in addition to these underneath building. On this strategy, Egypt is the star. It doesn’t simply lead the nation desk, with over 21,000 rooms in 85 accommodations in growth, up 20 per cent on final 12 months; however it’s streaking forward of the pack. It has virtually 3 times the variety of new rooms deliberate as Morocco, and virtually 4 occasions Nigeria, which was prime of the desk for a few years. What’s extra, with continued signing exercise (20 accommodations with about 5,250 rooms final 12 months), Egypt now accounts for over 25 per cent of the whole lodge growth pipeline. Morocco has 7,209 rooms in growth, unfold throughout 50 new accommodations; Nigeria has 5,619 rooms in 33 accommodations, Ethiopia has 5,206 rooms unfold throughout 29 accommodations and Cape Verde has 4,639 rooms in 17 accommodations. The subsequent 5 locations are taken by Algeria, 3,202 rooms, Kenya, 3,155 rooms, South Africa, 3,133 rooms Tunisia, 2,918 rooms and Senegal 2,693 rooms.  

Lodge Chain Improvement Pipelines in Africa 2022

High 10 International locations by Variety of Rooms

Lodges

Rooms

Common Measurement

1

Egypt

85

21,281

250

2

Morocco

50

7,209

144

3

Nigeria

33

5,619

170

4

Ethiopia

29

5,206

180

5

Cape Verde

17

4,639

273

6

Algeria

15

3,202

213

7

Kenya

24

3,155

131

8

South Africa

21

3,133

149

9

Tunisia

14

2,918

208

10

Senegal

13

2,693

207

Complete

301

59,055

196

Notably, 4 out of the 5 North African international locations are within the prime ten; and the highest ten international locations characterize 67% of the whole accommodations, and 74% of the rooms, within the survey.

Whereas Africa’s lodge growth pipeline is at its strongest ever, 80,291 rooms being deliberate or constructed, the top-line quantity masks a discount in Sub-Saharan Africa, the place there was a higher quantity of lodge funding lately. Of the six sub-Saharan international locations within the prime 10, solely Cape Verde has seen a rise in deliberate rooms, 33%, while the “energy homes”, Nigeria, Ethiopia, Kenya and South Africa have between them seen a decline of 29%; Nigeria is down 41%. There are three principal causes for the discount: fewer new alternatives within the area; opening of some 2,700 rooms in 15 accommodations final 12 months, and a pipeline “cleaning” which the lodge chains do periodically to take away numerous tasks that are unlikely to go forward.

Lodge Chain Improvement Pipelines in Africa 2022

Regional Abstract

2018

2019

2020

2021

2022

Lodges

Rooms

Lodges

Rooms

Lodges

Rooms

Lodges

Rooms

Lodges

Rooms

North Africa

118

28,303

122

28,702

119

29,050

134

31,547

166

35,280

Sub-Saharan Africa

294

46,731

270

44,395

283

47,684

289

47,855

281

45,011

TOTAL

412

75,034

392

73,097

402

76,734

423

79,402

447

80,291

Trying on the growth exercise of the lodge chains, each Accor and Marriott are almost as dominant as Egypt and Morocco, every representing simply over 25% of the complete pipeline! Accor has 20,857 rooms in growth, unfold over 107 properties; Marriott has 20,248 rooms unfold over 103 properties. Hilton, in third place, has round half as many rooms, 10,505 in 55 accommodations. Radisson, 4th, has 6,248 rooms in 35 accommodations. The subsequent six locations are taken by IHG, 3,136 rooms, Barceló, 2,488 rooms, Hyatt, 1,995 rooms, Meliá, 1,743 rooms, Louvre, 1,273 rooms, and Minor, 1,203 rooms.

Lodge Chain Improvement Pipelines in Africa 2022

High 10 Lodge Chains by Variety of Deliberate Lodges

Rank by Lodges

Items

Rooms

Change on 2020

Common Measurement

1

Accor

107

20,857

8.4%

195

2

Marriott Worldwide

103

20,248

8.1%

197

3

Hilton

55

10,505

1.5%

191

4

Radisson Lodge Group

35

6,248

-3.3%

179

5

IHG

17

3,136

10.8%

184

6

Barceló Lodge Group

8

2,488

0.0%

311

7

Hyatt Lodges & Resorts

12

1,995

-9.4%

166

8

Meliá Lodges & Resorts

5

1,743

-10.8%

349

9

Louvre Lodges Group

11

1,273

-4.2%

116

10

Minor Lodges

6

1,203

201

Trevor Ward, Managing Director, W Hospitality Group mentioned: “The chains anticipate that 200 new accommodations are anticipated to open this 12 months and subsequent, though their expectations can generally be over-optimistic! After a constructive development in 2019, the actualisation of lodge offers (ie: the proportion that truly opened, in comparison with what the chains anticipated to open) was lower than 30 per cent in each 2020 and 2021 – nonetheless, that was fairly comprehensible with pandemic journey restrictions killing the demand for lodge rooms.” 

Trevor continued: “I’m not stunned by the slow-down within the variety of offers signed in sub-Saharan Africa, because the previous couple of years have seen not solely the pandemic, making it harder to journey and meet new companions, but in addition much less urge for food from traders for main markets equivalent to Ethiopia, Nigeria and South Africa. Nevertheless, what does shock me is that almost all of funding goes into upscale, higher upscale and luxurious accommodations, when there may be very sturdy demand throughout Africa for first rate high quality branded finances and midscale accommodations.”

Matthew Weihs, Managing Director of The Bench, which organises AHIF, concluded: “Whereas the hospitality trade has simply been by means of the bleakest interval in my skilled profession, it’s fascinating to see that the pandemic has finished nothing to dent long-term investor confidence in hospitality. If something, the savviest financiers have seen it as a possibility. They’ve been inspired by enlightened governments, equivalent to Morocco’s, which have spent $ billions on new infrastructure to incentivise funding in tourism. What’s extra, judging by our different conferences this 12 months which have bought out, we’re seeing how eager individuals are to journey once more and the way precious it’s to fulfill nose to nose, somewhat than over a video hyperlink. I’m assured that when AHIF takes place on 2-4 November, in Taghazout, near Agadir, we’ll see the ambiance buzzing, with extremely productive networking and with extra offers introduced than ever earlier than.”

An replace to the pipeline growth survey, together with in-depth insights, will likely be introduced by Trevor Ward at AHIF. The occasion is the main convention of its form in Africa, connecting enterprise leaders and fuelling funding in tourism tasks, infrastructure and lodge growth throughout the continent.

Distributed by APO Group on behalf of Bench Occasions.

Additional Info: 
For additional data and high-resolution photographs, please contact: David Tarsh on +44 (0) 20 7602 5262, +44 (0) 7770 816 070 or e mail: [email protected]

About W Hospitality Group:
The W Hospitality Group, a member of Lodge Companions Africa, specialises within the provision of advisory companies to the lodge, tourism and leisure industries, offering a full vary of companies to shoppers who’ve investments within the sector, or who want to enter them by means of growth, acquisition or different means. In sub-Saharan Africa W Hospitality Group is thought to be the market chief as a result of market and monetary experience of its workers, its worldwide data, and its dedication to its shoppers.  In Africa, W Hospitality Group has up to now labored in 40 international locations on the continent, from its Lagos and Addis Ababa workplaces.

In regards to the Africa Hospitality Funding Discussion board (AHIF): 
AHIF is the premier lodge funding convention in Africa, attracting many outstanding worldwide lodge house owners, traders, financiers, administration firms and their advisers. It’s organised by The Bench (www.thebench.com), which has a protracted observe document of delivering a number of premium lodge funding conferences and boards throughout Europe, the Center East, Africa, Asia and Latin America. The Bench’s mission is enabling prosperity by facilitating development, networking, and thought management within the hospitality trade worldwide. www.TheBench.com.

Sponsors of AHIF are Host Accomplice: Moroccan Company for Tourism Improvement (SMIT) Platinum Sponsors: IHG and Radisson Lodge Group; Gold Sponsors: Aleph Hospitality, CityBlue, Insignia, Louvre Lodges Group, Marriott Worldwide, TIME Lodges; Silver Sponsor: HVS.

This Press Launch has been issued by APO. The content material just isn’t monitored by the editorial staff of African Enterprise and never of the content material has been checked or validated by our editorial groups, proof readers or reality checkers. The issuer is solely liable for the content material of this announcement.

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