GSAIR EMEA 2023 | Page 21

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The ability to offer sustainable options has rapidly become a hot topic across the industry and , while areas such as the Middle East have historically lagged behind in this area , the region is gaining ground here too . IHG ’ s ‘ Green Engage ’ programme allows the hotels to choose from over 200 ‘ Green Solutions ’ designed to help them reduce their energy , water and waste , and improve their impact on the environment . Similarly , The Ascott Group have partnered with Bureau Veritas to audit its Serviced Residences globally . There is great expectation for the Middle Eastern market to follow in a similar vein as companies look to hit carbon reduction targets in business travel .
Africa By Trevor Ward
To describe Africa as undersupplied with serviced apartments is an understatement !
Africa ’ s a huge continent , with 54 countries . This is more than a quarter of UN members . It has a population of 1.5 billion . That is about 19 per cent of the global total . However , according to Fino Hospitality , 29 at the start of 2023 , international hotel chains had just 14 properties bearing their extended-stay brands in nine African countries ( Algeria , the DRC , Egypt , Ethiopia , Kenya , Morocco , Nigeria , South Africa , and Tanzania )! With about 1,550 units , that ’ s an average of 110 units per property , ranging from the 164-unit Somerset Westview in Nairobi , Kenya to the 48-unit Executive Residency by Best Western , also in Nairobi . terms of modern hotel development , and new entrants , both owners and the hotel chains , have focused on core full-service brands . And a lack of understanding of the extended-stay sector means that both owners and lenders have shied away from getting involved .
Looking to the future , there appears to be some traction in terms of development . According to our annual pipeline survey , 30 the chains have signed management or franchise deals for 37 new extendedstay properties with 5,300 units , which is about 6 per cent of the total hotel development pipeline in Africa . The average size of an upcoming extended-stay hotel is 147 units , quite a lot more than the existing supply . Marriott again lead the pack , with 13 new properties coming into the market in the future containing 2,100 units . However , the Ascott are also doing well , with 8 properties containing 900 units . Of the total , about 50 per cent are already under construction , the remainder are still waiting to break ground .
Marriott , one of the biggest operators in Africa , alongside Accor , lead with four properties under their Element , Residence Inn , and Marriott Executive Apartments brands , with Accor , Ascott , BWH , Dusit , Frasers , Hyatt , IHG , Pan Pacific , Rotana and Wyndham having one apiece . Most of these properties opened in the last five years .
It ’ s a 12-hour flight from Cairo to Cape Town ( N to S ), and 9 hours from Dakar to Dar es Salaam ( W to E ), and these long distances , with arduous road journeys , and other factors mean that there is strong demand for extended stay accommodation . So why so few branded properties ? In fact , with the exception of notable markets such as Nairobi , Cape Town and Johannesburg , there ’ s a shortage of any extended-stay hotels . Well , there are many reasons , picking on just two , much of Africa has lagged behind other regions in
29 . www . finohospitality . com 30 . https :// w-hospitalitygroup . com / pipeline-report /