CAPE TOWN — Hoteliers in Africa are setting their expansion and portfolio strategies around new types of travelers to the continent.
As part of that shift in guest demographics, hotel companies are tweaking their accommodation options, including increasing upscale and branded safari lodges, branded timeshares and properties in secondary markets.
Karim Cheltout, Marriott International's senior vice president of lodging development for Middle East and Africa, said a shift in mindset is the first step.
“I always tell my team we needed to move to another dimension. It is no longer about hotels and rooms but about how to grow a portfolio that speaks to today’s traveler,” he said during a panel at the Future Hospitality Summit Africa.
With that frame of mind, Marriott has shifted into branded safari lodges.
“We dived into safaris. We were never in the safari business, so we knew we needed to convince everyone, and it has been a success. We have a dozen signed, and some are in construction,” Cheltout said.
Similarly, South Africa-based Sun International has tweaked its hotel timeshare model, said Chief Operating Officer Graham Wood. The company has been in the timeshare industry since 1996 but has recently seen demand for its model increase.
Wood added the new structure is not an evergreen timeshare model.
“That is no longer popular, but for one that lasts five to 10 years and can be flipped, that has seen huge revenue for us,” he said.
Sun opened 58 villas in this new model in 2023, Wood added.
“The feasibility was to sell out in seven years, but we sold out in three, so we have plans to add 183 units. It has great returns, and the increased footfall to our resorts helps sustain [food and beverage], golf courses and conference facilities,” he said, adding that its model might be tweaked once more to include third-party opportunities.
Wesam Okasha, global head of development at TUI Group's TUI Blue Hotels, said the company's African hotel portfolio has changed in the last few years, too.
“The market since COVID-19 is different. Guests are asking for ‘bush and beach,’” he said, referring to a combination of sun, sand and safari.
Marriott has a small handful of managed hotels across the continent, but the company is partnering with local African hotel owners and investors who are passionate about hospitality. Cheltout added those partnerships will help Marriott propel its portfolio growth across Africa.
Marriott’s development team is focused on where new travelers to Africa want to go and what they want to do, Cheltout said. He added what guests want from safari accommodations isn't just about quality furnishings.
“Also, it must be about the environmental connections to landscapes that are very fragile,” he said.
Marriott also sees room to expand its branded residential accommodations across Africa, he added.
“Our Apartment by Marriott Bonvoy has huge potential in Africa, sitting between branded residential and serviced apartments,” he said. “And Cape Town needs a luxury lifestyle brand, so we are working on that.”
Changes are also happening at established hotels in Africa, Wood said. He pointed to perhaps Sun International’s most well-known hotel, The Table Bay Hotel in Cape Town, which is undergoing a renovation estimated at 1 billion South African rands ($55.8 million). Upon completion, the hotel will reopen by the end of 2025 as the InterContinental Table Bay, Cape Town, which will be managed by IHG Hotels & Resorts.
“That’s been an interesting journey for us. We have learned a lot. Sun is not a firm that does third party, and the [property] is such an iconic brand and resort,” Wood said.