Press Release

14 May 2014

Carlson Rezidor Leads the Race to Build Hotels in Africa

PRESS RELEASE: Carlson Rezidor Leads the Race to Build Hotels in Africa

FOR IMMEDIATE DISTRIBUTION

New research by W Hospitality Group, a founding member of Hotel Partners Africa, places Carlson Rezidor at the head of the race to open new hotels in Africa.  The annual Pipeline survey of the major international and African hotel chains reveals that more are opening in Africa in 2014 and they are growing their resource base in order to take advantage of the strong economies on the continent.

The survey is of 27 international hotel chains, with 60 brands between them, competing in Africa, with Carlson Rezidor and Hilton Worldwide out in front by a significant margin, each with over 6,000 rooms in development. Marriott International is next, followed by Starwood, Mangalis and IHG (see Table 1 below).


Of the international chains, Starwood had the largest percentage increase, up 39 per cent year-on-year, with developments planned in eight countries, four more countries than in 2013. Marriott also recorded a strong increase, 34 per cent up on last year.  Mali-based Azalaï has plans to become a dominant regional player, increasing its development pipeline with five more hotels and 679 more rooms compared to 2013.

A new entrant to the survey and to the African market, Mangalis, has stormed into the top 10 rankings. Of its 15 Noom and Seen hotels, with 2,210 hotel rooms in the pipeline, 11 are reported to be on site and scheduled to open between 2014 and 2016. Louvre Hotels Group, which has three hotel brands in Africa – Royal Tulip, Golden Tulip and Tulip Inn - reports that all of its projects are on site and that all but one are scheduled to open in 2014.

Having a closer look at the individual brands of those hotel chains, Radisson Blu and its sister brand, Park Inn by Radisson, occupy the first and third positions by number of hotels. However, the rankings of the two brands individually, slip to the second and fourth positions, when considering the actual number of rooms planned, overtaken by Hilton and Marriott, with larger properties (see Table 2).

The newcomer Mangalis sees both its two core brands in the top 10 rankings by the number of hotels planned - the Noom brand is ranked fifth with eight hotels planned, whilst the Seen brand ties in seventh position with Hilton Garden Inn, with seven hotels planned. The Noom brand also ranks eighth in the top 10 list of rooms planned, at 1,180 rooms.

At 295 rooms/ property, Hilton has the largest average room size in the top 10 list.  It is followed closely by Courtyard by Marriott (289), Kempinski (261), Radisson Blu (255) and Sheraton (240).

Trevor Ward, Managing Director, W Hospitality, said: “It is our belief that the chain hotel pipeline in Sub Saharan Africa will continue to grow and that more international players will enter the market.  This is because there is such a shortage of quality hotel accommodation in Africa.  This research was conducted before Marriott completed its acquisition of South Africa-based Protea so it will be interesting to see how this will change the market in Africa – in particular if Hilton, Carlson Rezidor and other international chains will follow Marriott’s example and seek to grow by acquisition?”

Jonathan Worsley, Chairman, Bench Events, organiser of the Africa Hotel Investment Forum (AHIF) which attracts all the major international hotel investors in Africa and where this report will be discussed in detail, added: “The main story of these findings is that more and new international hotel chains are seeking to play in Africa despite a relatively difficult operating market compared to Europe or China. It demonstrates that Africa, and especially the relatively untapped Sub Saharan Africa, is now being considered by the international investment community to offer attractive commercial returns.

This year’s survey is based on the contributions from 27 hotel chains with 60 brands between them.  Of these 27 hotel chains, 24 of them are already operating in Africa, with a total of approximately 84,000 rooms. The pipeline of new deals represents almost 50 per cent of the branded supply.

 

ENDS

About W Hospitality Group

The W Hospitality Group, a founding member of Hotel Partners Africa, specialises in the provision of advisory services to the hotel, tourism and leisure industries, providing a full range of services to clients who have investments in the sector, or who are looking to enter them through development, acquisition or other means. In sub-Saharan Africa W Hospitality Group is regarded as the market leader due to the market and financial expertise of its staff (all of whom have worked in the industries they now consult to), its worldwide knowledge, and its commitment to its clients.

Africa Hotel Investment Forum (AHIF)

AHIF is the premier hotel investment conference in Africa, attracting many prominent international hotel owners, investors, financiers, management companies and their advisers.  It is organised by Bench Events (www.benchevents.com) which is known for producing, alongside Questex Travel + Hospitality and MEED Events, several top-level hotel conferences around the world including Berlin (IHIF), Dubai (AHIC), Istanbul (CATHIC) and Moscow (RHIC).

Sponsors of AHIF 2014 are: TFC, Kenya’s Tourism Finance Corporation as Host Sponsor, ACCOR, Carlson Rezidor Hotel Group, Hilton Worldwide, Mangalis Management Group and Marriott International as Platinum Sponsors, Best Western, CIMC Modular Building Systems, Colliers International, Horwath HTL, Hotel Partners Africa, Hyatt International LLC, Industrial Development Corporation (IDC), IHG (InterContinental Hotels Group), Inncom by Honeywell, Movenpick Hotels & Resorts, Ole-Sereni, Starwood Hotels and Resorts International, STR Global, SVA International, The Tamarind Group, Taj Hotel, Resorts & Palaces and Wyndham Hotel Group as Gold Sponsors.

TFC was previously known as the Kenya Tourist Development Corporation (KTDC) but it has been renamed Tourism Finance Corporation (TFC) to comply with the new Tourism Act that came into force last year. The agency owns assets, including hotels and lounges. Through its associated companies, it owned, among others, 40 per cent of Intercontinental Hotel, 33.83 per cent of Hilton Hotel, 39.11 per cent of Mountain Lodge Ltd and 5.64 per cent of Ark. TFC exists to develop and diversify Kenya's tourism industry by providing a range of advisory and financial services to investors in tourism related enterprises.  Its vision is to be the leading and most reliable Development Financial Institution (DFI) providing affordable and accessible financial facilities and advisory services to the tourism investors.  To register, go to http://www.africa-conference.com/index.php/registration/; a 35% early bird discount will apply until 23rd July.

 

Further Information

For further information and high resolution images, please visit http://www.africa-conference.com or contact:

David Tarsh, Tarsh Consulting, Email: David@Tarsh.com, Tel: +44 (0) 20 7602 5262

Trevor Ward, W Hospitality Group, Email: trevor.ward@w-hospitalitygroup.com, Tel:- +234 (0) 803 321 0646