THE PIPELINE : AFRICA
MAYBE
T H I S
YEAR
AFRICA ’ S IMPROVING INFRASTRUCTURE AND GOVERNMENT SUPPORT FOR DEVELOPMENT MAY PERSUADE THE HOTEL INDUSTRY ’ S LONGTIME FENCE-SITTERS THAT THE TIME ’ S RIGHT TO EXPLORE THIS MASSIVE CONTINENT .
by ORIANA LERNER , CONTRIBUTING EDITOR
At the opening ceremonies for the FIFA World Cup finals in Johannesburg in 2010 , the official song by pop star Shakira announced , “ This is your moment . … This time for Africa .” The message of her “ Waka Waka ” anthem ( and the city ’ s star turn as the games ’ host ) might have been the opening bell for what could be a new wave of hotel development on a continent that has had “ maybe next year ” status for decades .
After so many missteps , what could make this the real turning point for Africa as a hotel target ? Finally , it has some good numbers to report . According to the International Monetary Fund , seven of the 10 fastest-growing economies are on the continent . Obviously , Africa is starting from such low numbers that huge gains are still possible , notes Trevor Ward , managing director , W Hospitality Group , Lagos , Nigeria . Still , Ward ’ s most recent development survey shows the pipeline in Sub-Saharan Africa is up 23 % in 2013 ( compared to an 8.6 % uptick in Asia Pacific ).
Hotel industry growth may be dramatic in the coming years , but it will also be strategic and carefully managed to be risk-averse . This is a region that will require more than the usual due diligence for any operators with an eye on the market . “ Each country faces different dynamics driven by location , borders , politics or funding sources ,” says Jeff Strachan , vice president , sales and marketing , Marriott International , Middle East and Africa .
That means each country and each market must be evaluated on an individual basis . “ There is no one-cap-fits-all ,” says Kamil Abdul-Karrim , managing director , Pam Golding Tourism and Hospitality Consulting , Cape Town . “ Evaluating opportunities in Africa through prudent research and comprehensive feasibility analysis remains critical .”
Mapping it out Industry insiders say international players will have to be particularly opportunistic if they want a solid stake in Africa . “ We don ’ t have a pipeline — this is not a continent where you can claim you plan to roll out 50 hotels in five years ,” says Marcel von Aulock , CEO , Tsogo Sun Group , Bryanston , South Africa .
Even so , there is a hot list for hotel growth . By rooms in the pipeline , according to Ward ’ s research , the top countries for development in Africa are Egypt , Nigeria , Morocco , Algeria , Kenya , Ghana , Tunisia , Libya , South Africa and Gabon . However , each hotelier — international or regional — sees variations on that theme . “ Our current Africa pipeline includes hotels in Cape Verde , Chad , Nigeria , Sierra Leone , Uganda , South Africa , Morocco and Burundi ,” says Patrick Fitzgibbon , senior vice president , development , Europe and Africa , Hilton Worldwide .
Accor recently opened an Ibis hotel in Dakar , and Starwood Hotels & Resorts Worldwide is also placing increased emphasis on Sub-Saharan Africa . “ By 2016 , Starwood will have nearly 50 hotels in Africa and the Indian Ocean ( matching the current portfolio of our Middle East region ) with new hotels confirmed to open in Algeria , Egypt , Libya , Nigeria , Mauritius and Senegal ,” says Neil George , Starwood ’ s vice president , development and acquisitions , Middle East and Africa . “ Starwood has appointed a dedicated development executive based in Johannesburg who is focusing solely on Sub-Saharan Africa .” www . hotelsmag . com June 2013 HOTELS 55