High net-worth investors spur growth in francophone Africa’s hotel sector
The FrancoReal Property Investment Forum, a meeting point for industry experts. (Photo: Francoreal)
The upcoming FrancoReal Property Investment Forum in Abidjan will explore the role high net-worth investors play in the development of the African hospitality industry.
The second annual FrancoReal Property Investment Forum is coming up in late October.
This year, one of the main topics to be discussed is francophone Africa’s booming hospitality market and why it’s such an impressive opportunity for investors.
FrancoReal Property Investment Forum goes into second round
On October 29 and 30, the summit will be held once again in Abidjan, the capital of Ivory Coast by Africa’s leading real estate-networking and conferencing company African Property Investment (API).
Kfir Rusin, the host at the upcoming summit wants the conference to highlight opportunities investors can find in Africa and the continent’s exciting atmosphere.
“Hotels provide significant opportunities for global brands and investors, but beyond this sector, we look forward to exploring opportunities in retail, logistics, housing and more,” Mr Rusin explained.
Regional hospitality analyst and advisor Clemence Derycke of Horwath HTL stresses that one of the key topics will be how and why Africa’s hospitality sector is so attractive to HNWIs (high net-worth individuals).
According to Ms Derycke, the market is very active with global and regional brands “targeting hotel openings in the majority of the region’s major cities.”
“Accor has been very active in Francophone Africa. It has more hotels and its pipeline remains robust, while the Radisson Hotel Group (RHG) has recently been very dynamic with opening flagship hotels in most capital cities. They are now looking for new development in the resort or the midscale segments,” said Ms Derycke.
Mr Erwan Garnier, RHG Development Director for Francophone and Lusophone Africa, stresses that the region is his group’s primary focus and that they have ambitious expansion plans for the next five years.
“We currently have 16 hotels and over 3, 000 rooms in operation and a further 13 hotels and almost 2,000 rooms under development in Francophone Africa,” Mr Garnier added.
Africa hospitality investment – RHG takes the lead
To move the company’s growth plans along more quickly, RHG has created a team of French-speaking experts who understand the local market and can identify the best opportunities for the group.
“We have identified seven pro-active cities in which we are focusing our efforts for scaled expansion. The two primary focus cities are Abidjan and Dakar, followed by Douala, Yaoundé, Kinshasa, Mauritius and Seychelles,” he says.
So far, RHG has focused on the business segment. Two recent launches in Algeria and Niger are great examples of this. The Radisson Blu Hotel & Conference Center Niamey, Niger, for instance, is the first five-star hotel to be built in the country. Two more hotels are slated to open in 2019 with an ambitious pipeline following in 2020.
Mr Garnier underscored Ms Derycke’s point when he said: “The market provides value for the hospitality group, and is very attractive for real estate investors, particularly HNWI investors, many of whom are the biggest sources of current investment.”
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