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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 resort 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 broadly acknowledged because the business’s most authoritative supply, has, as of Q1 2022, a report 42 world and regional (African) contributors, reporting on a pipeline of resort growth exercise totalling round 80,300 rooms in 447 motels, in 42 of Africa’s 54 nations.

Trying first on the variety of rooms bodily beneath development, 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 strategy planning stage, reflecting its comparatively “younger” pipeline (rather a lot signed within the final 3 years).

Whereas Nigeria has 45% onsite; eight of the 15 motels (with half of the full rooms) which have began development have stalled, and the websites are closed.

Source: The Bench
Supply: The Bench

The image modifications considerably when one appears to be like at rooms being deliberate in addition to these beneath development. On this method, Egypt is the star. It doesn’t simply lead the nation desk, with over 21,000 rooms in 85 motels in growth, up 20 per cent on final 12 months; however it’s streaking forward of the pack. It has nearly thrice the variety of new rooms deliberate as Morocco, and nearly 4 instances Nigeria, which was high of the desk for a few years. What’s extra, with continued signing exercise (20 motels with about 5,250 rooms final 12 months), Egypt now accounts for over 25 per cent of the full resort growth pipeline. Morocco has 7,209 rooms in growth, unfold throughout 50 new motels; Nigeria has 5,619 rooms in 33 motels, Ethiopia has 5,206 rooms unfold throughout 29 motels and Cape Verde has 4,639 rooms in 17 motels. 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.

Source: The BenchSource: The Bench
Supply: The Bench

Notably, 4 out of the 5 North African nations are within the high ten; and the highest ten nations symbolize 67% of the full motels, and 74% of the rooms, within the survey.

Whereas Africa’s resort 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 larger quantity of resort funding lately. Of the six sub-Saharan nations within the high 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 most important causes for the discount: fewer new alternatives within the area; opening of some 2,700 rooms in 15 motels final 12 months, and a pipeline “cleaning” which the resort chains do periodically to take away varied initiatives that are unlikely to go forward.

Source: The BenchSource: The Bench
Supply: The Bench

Trying on the growth exercise of the resort chains, each Accor and Marriott are practically 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 motels. Radisson, 4th, has 6,248 rooms in 35 motels. 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.

Source: The BenchSource: The Bench
Supply: The Bench

IHG deserves remark, as a consequence of its progress of over 10%. It signed a deal for 4 Indigo-branded motels in Egypt, with 650 rooms in complete, in addition to a 300-room InterContinental resort in Cairo’s New Capital.

Evaluation of the variety of rooms beneath development, versus these merely being deliberate, modifications the resort chain rating considerably, as a result of Accor has solely 26% of its pipeline onsite, whereas Marriott and Hilton have round 57% and Radisson 85%. This places Marriott in high spot, Hilton second, Accor third and Radisson fourth. The highest ten mixed have 82% of all of the rooms beneath development in Africa, and the highest 4 account for absolutely 66% of the full, up from 58% final 12 months.

Source: The BenchSource: The Bench
Supply: The Bench


Trevor Ward, Managing Director, W Hospitality Group stated: “The chains anticipate that 200 new motels are anticipated to open this 12 months and subsequent, though their expectations can generally be over-optimistic! After a optimistic development in 2019, the actualisation of resort offers (ie: the proportion that really opened, in comparison with what the chains anticipated to open) was lower than 30 p.c in each 2020 and 2021 – nevertheless, that was fairly comprehensible with pandemic journey restrictions killing the demand for resort 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 tougher to journey and meet new companions, but additionally much less urge for food from traders for main markets resembling Ethiopia, Nigeria and South Africa. Nonetheless, what does shock me is that almost all of funding goes into upscale, higher upscale and luxurious motels, when there’s very sturdy demand throughout Africa for first rate high quality branded price range and midscale motels.”

Matthew Weihs, Managing Director of The Bench, which organises AHIF, concluded: “Whereas the hospitality business has simply been by way of the bleakest interval in my skilled profession, it’s fascinating to see that the pandemic has accomplished 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, resembling 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 offered out, we’re seeing how eager individuals are to journey once more and the way invaluable it’s to fulfill nose to nose, relatively than over a video hyperlink. I’m assured that when AHIF takes place on 2-4 November, in Taghazout, near Agadir, we are going to 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 offered by Trevor Ward at AHIF. The occasion is the main convention of its variety in Africa, connecting enterprise leaders and fuelling funding in tourism initiatives, infrastructure and resort growth throughout the continent.

About W Hospitality Group

The W Hospitality Group, a member of Resort Companions Africa, specialises within the provision of advisory providers to the resort, tourism and leisure industries, offering a full vary of providers to shoppers who’ve investments within the sector, or who need to enter them by way 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 so far labored in 40 nations on the continent, from its Lagos and Addis Ababa workplaces.

Concerning the Africa Hospitality Funding Discussion board (AHIF)

AHIF is the premier resort funding convention in Africa, attracting many distinguished worldwide resort house owners, traders, financiers, administration firms and their advisers. It’s organised by The Bench (www.thebench.com), which has a protracted monitor report of delivering a number of premium resort funding conferences and boards throughout Europe, the Center East, Africa, Asia and Latin America. The Bench’s mission is enabling prosperity by facilitating progress, networking, and thought management within the hospitality business worldwide.  www.thebench.com. Sponsors of AHIF are Host Companion: Moroccan Company for Tourism Growth (SMIT) Platinum Sponsors: IHG and Radisson Resort Group; Gold Sponsors: Aleph Hospitality, CityBlue, Insignia, Louvre Resorts Group, Marriott Worldwide, TIME Resorts; Silver Sponsor: HVS.

David Tarsh
+44 (0) 20 7602 5262
The Bench

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