Login

Middle East and Africa Hotel Pulse: Opportunities, Hurdles Abound for African Hotel Investment

Turkish Officials Expect Drop in Inflation; Three Countries Leave West African Alliance; and More
Bola Ahmed Tinubu, Nigeria's President and Chairman of Economic Community of West African States (ECOWAS), leaves the Banquet Hall after being reinstated as the Chairman of ECOWAS, during the 65th ordinary session of Economic Community of West African States (ECOWAS) Heads of State and Government in Abuja, on July 7. (Getty Images)
Bola Ahmed Tinubu, Nigeria's President and Chairman of Economic Community of West African States (ECOWAS), leaves the Banquet Hall after being reinstated as the Chairman of ECOWAS, during the 65th ordinary session of Economic Community of West African States (ECOWAS) Heads of State and Government in Abuja, on July 7. (Getty Images)
Hotel News Now
July 17, 2024 | 1:15 P.M.

Editor's Note: Some linked articles may be behind subscription paywalls.

Read the latest news from around the Middle East and Africa region.

The Challenges, Opportunities Facing African Hotel Investment

HNN's Terence Baker's recent reporting from the African Hospitality Investment Forum highlights some of the major challenges and opportunities investor face in the region.

On the positive side, maturing markets on the continent are seeing increasing interest from international brands for franchising opportunities, with the pipeline going from 20% franchise nine years ago to 65% today.

Hamza Farooqui, founder and CEO at Sandown, South Africa-based Millat Group, said this is key because having an international brand "gives confidence to guests and investors."

"Simply, pricing is better, and if you start working with one brand, then the entire pool can be accessible," he said. "Added to that, banks, maybe naively, prefer giving loans to branded hotels. We have moved from being ego owners to hands-on, conscious owners.”

Other issues in the region include a greater desire for localization at resorts, continued limited airlift and risks in the lending environment.

Three West African Countries Leave Free Trade, Travel Alliance

The New York Times reports Burkina Faso, Mali and Niger are all leaving the Economic Community of West African States, a group of 15 countries that has "ensured free movement of people and goods" for 49 years.

"The three countries, all ruled by military leaders friendly to Russia, span more than half of the bloc’s geographic area and are among its most populous," the newspaper reports. "However, they are not the region’s largest economies, and as landlocked nations, all three depend on access to ports in coastal countries for overseas trade."

Turkish Leaders Expect Inflation to Moderate

Turkish President Tayyip Erdogan said there are signs of improvement for Turkey's economy, and he now expects inflation in the country to drop to "desired levels" by the end of the year, Reuters reports.

"We were not, and we are not today, a government that does not listen to the voice of the street. We are aware of the problems faced by some segments of the society due to high cost of living," Erdogan said.

Deals, Developments, People on the Move

  • Marriott International’s soft-brand Tribute Portfolio has made its debut in the United Arab Emirates with the 491-room The First Collection at Jumeirah Village Circle, a Tribute Portfolio Hotel. The owner is Dubai-based The First Group.
  • Accor has opened the 120-room Novotel Lubumbashi in the Democratic Republic of Congo in Lubumbashi, the country’s second-largest city. It sits on the city’s Lake Kipopo and is 20 miles from the border with Zambia.
  • Felicity Black-Roberts has been promoted from Hyatt Hotels Corp.'s vice president of development, Western Europe, to senior vice president of development, Europe, Africa and Middle East. She replaces Peter Norman, who has been promoted to senior vice president of corporate development and owner relations, Europe, Africa and Middle East.
  • Rory Coote has been named corporate director of learning and development at Abu Dhabi-based Rotana Hotels & Resorts. The United Arab Emirates is a new home for Coote, who has spent most of his career in London, most recently as area head of learning and development at The Dorchester.
  • Andrea Fialkov has been named as director of revenue at Cape Town-based Newmark Hotels & Reserves, which has a portfolio of 28 hotels, mostly in South Africa but with one in Nigeria, two in Mauritius and three in Tanzania. Bianca Pontac starts as director of sales.
  • Beatrice Ellis and Longa Mulikelela have been appointed as general managers at two Minor Hotels’ properties. Ellis has started that role at the Avani Victoria Falls Resort, and Mulikelela has started the same role at the Royal Livingstone Victoria Falls Zambia Hotel.
  • David Beers been promoted to the role of CEO, Europe, Middle East and Africa at Choice Hotels International. He has been at the hotel firm for more than 25 years and replaces Jonathan Mills, who left in April.

Read more news on Hotel News Now.