REGIONAL PROFILE
LocaL success
Founder and CEO of Dubaibased Diar Capital Jameel Verjee launched his mid-market CityBlue hotel brand in Rwanda in January 2013 and today has an asset-light portfolio with three open , four more coming this year and four next year . That makes it among the fastest-growing domestic players .
The owner of the Urban by City- Blue and CityBlue Hotel & Suites brands across sub-Saharan Africa is now appearing in top 10 lists of hotel development pipelines across Africa and continues to work with even more owners and local communities across the continent . HOTELS asked Verjee about his business and its potential .
HOTELS : Are you strictly developing in sub-Saharan Africa ? Jameel Verjee : The concept began in Rwanda and has now crisscrossed East Africa . Our plan is to next enter Zambia , Botswana , South Africa , Mozambique and Swaziland . Our vision remains to focus on being Africa ’ s recognized indigenous brand with an offering focused on location , affordability , service and technology .
H : What are the hot and cold spots for development ? JV : Ethiopia is hot : huge population , very few good hotels , and they are all very expensive . Kenya is cold : Nairobi is now over-stocked with hotel bedrooms and more than 2,000 keys are set to hit the market over the next two to three years .
H : Are secondary cities among the best plays right now ? JV : We just opened the CityBlue Epic Hotel & Suites in Nyagatare , eastern province , Rwanda . This property serves to emphasize how secondary cities are benefitting from tens of millions of dollars of investment and can still produce the returns commensurate with the expectations of the investment community .
H : Where is the next hot spot ? JV : There have been many announcements of new openings in Zanzibar , but very little actual activity . The island is currently enjoying popularity given Mombasa ’ s recent troubles , but it remains a work in progress . We have a close eye on Mozambique , Botswana , Namibia and Zambia . These markets do not make much noise but they can make excellent returns for investors .
H : Anything else to share ? JV : In my capacity as an entrepreneur , the gap was clear and we began with a view to emulate the likes of Home Inns in China – open hotels regularly and consistently , in our case across sub-Saharan Africa .
38 hotelsmag . com October 2017