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Africa Is a Giant Complex Game of Monopoly
When delegates arrive at the Africa Hotel Investment Forum (AHIF), which takes place in Nairobi on 23-25 September 2013, they could be forgiven for feeling like players in a giant, complex game of Monopoly (the world famous board game where players compete to buy properties and develop them into hotels).
Research just released by W Hospitality Group, a founding member of Hotel Partners Africa (HPA), reveals that there are 40,000 rooms being planned or constructed on the African continent from now to 2017. The top city for construction is Lagos, Nigeria, which has 4,080 rooms in development. This is followed by two Egyptian destinations, Cairo, with 2,843 rooms and Hurghada with 2,221 rooms. The next most popular places are Abuja (1,598 rooms), Algiers (1,528 rooms), Tangier (1,505 rooms) and Nairobi (1,437 rooms).
Alex Kyriakidis, President & Managing Director, Middle East & Africa Continent, Marriott International, says: “The African continent presents Marriott International with substantial opportunities for growth. With 1 billion people, the majority of whom are Gen X and Y, seven of the top 10 fastest growing economies in the world and very low penetration by branded hotels, the opportunity for the hospitality industry to support the demand for travel, as the middle classes grow from 300 million today to 1 billion by 2050, is key to the continent’s economic success and the prosperity of its people.”
W Hospitality Group and HPA Founder, Trevor Ward, paints a more nuanced picture: “The most interesting thing to look at in the numbers is not so much the scale of the development pipeline but how things are changing from city to city. Lagos and Abuja contribute to Nigeria being the No.1 country but delays in completing hotels there can be extreme, and not all of the pipeline can be said to be certain to happen. Two Egyptian cities are in the top three and four are in the top 20 but note that several projects were commenced before the most recent uprisings. In Marrakesh, growth has slowed down, but bear in mind that several new hotels have recently opened there. Development in Addis Ababa is taking off - historically the country has not been an easy place to do business, but the chains are now getting deals done.”
He continued: “As well as the deals that are in the pipeline, look also at what’s NOT happening. There are some capital cities that seem not to be getting the attention that they deserve, for example Luanda, Abidjan, Khartoum and Kampala. Luanda, the capital of Angola, and a major economic force in southern Africa, has only three hotels in the development pipeline – not for want of trying by the hotel chains, almost all of whom have been looking for deals there for several years. Abidjan only reports two projects in the pipeline (432 rooms). However, it is poised to experience substantial growth over the next few years, becoming once again a major economic hub in the region, particularly for francophone Africa. The return of the headquarters of the African Development Bank, scheduled for 2014, will bring with it about 2,000 employees and will attract many visitors, who all require international-standard accommodation.
The trends and challenges of hotel development in Africa will be scrutinised in detail at AHIF, which brings together the leading international hotel investors in Africa with local operators, tourism ministers, government officials and industry experts. AHIF 2012 attracted 426 delegates from 38 countries, representing 310 organisations and several networking contacts made there have since resulted in deals. Sponsorship and registration levels for AHIF 2013 indicate the conference will grow significantly this year, as an increasing number of business people want to get in on the game and play real live Monopoly in Africa.
For more information about AHIF, visit www.Africa-Conference.com.
AHIF is the premier hotel investment conference in Africa, attracting many prominent international hotel owners, investors, financiers, management companies and their advisers. The conference is also receiving support from the Kenyan government by way of sponsorship from the Kenya Tourist Development Corporation (KTDC) and the presence of the tourism minister Hon. Phyllis Kandie MP.
Confirmed sponsors are as follows: 2013 Host Partner: (KTDC) Kenya Tourist Development Corporation. Platinum Sponsors: ACCOR, Mangalis Management Group and Marriott International, Inc. Gold Sponsors: AECOM Design + Planning, Africa Export Import Bank, Carlson Rezidor Hotel Group, Colliers International, G1 Architecture, Golden Tulip, Grant Thornton, Hilton Worldwide, Horwath HTL, Hotel Partners Africa, Hyatt International LLC, HVS, IHG (InterContinental Hotels Group), Kempinski Hotels, Lonrho Hotels, Moevenpick Hotels & Resorts, Ole-Sereni, Shapooji Pallonji International, StarwoodHotels & Resorts Worldwide, Inc, STR Global and Wyndham Hotel Group.
About Bench Events
In addition to the next Africa Hotel Investment Forum, Bench Events is one of the organisers and founders, alongside Questex Travel + Hospitality and MEED Events, of several well-known conferences for the hotel investment industry including Berlin (IHIF), Dubai (AHIC), Istanbul (CATHIC) and Sochi (RHIC). www.benchevents.com
For further information and high resolution images, please contact: David Tarsh, David@Tarsh.com +44 (0) 20 7602 5262, +44 (0) 7770 816 070 or Joanne Howell, firstname.lastname@example.org, +44 (0) 7813 164 649.
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