Hotel developments have more than doubled since 2009, according to new report
Hotel developments in Africa grew 13 per cent in 2016, according to an annual survey by W Hospitality Group. The ninth edition of its Hotel Chain Development Pipelines in Africa had 36 international and regional contributors reporting almost 73,000 rooms under development in 417 hotels last year.
The development figures have grown each year, more than doubling since 2009, according to the report seen by www.businesslive.co.za
It led www.traveller24.com to conclude “The African continent, and especially sub-Saharan Africa, is like a gold mine for hotel investors”.
Marriott International topped the table, following its merger with Starwood, in terms of number of rooms planned. AccorHotels reported the highest number of hotels in the pipeline.
“Many African countries faced a challenging 2016, with lower prices for oil and other commodities, devalued currencies and other negative factors. This may have affected confidence in the short term, as the number of deals signed was 86, down from 121 in 2015,” said W’s MD, Trevor Ward.
“Several countries in Africa have suffered severe economic problems in the past couple of years. But there are encouraging signs that we are turning a corner in 2017, and while growth is more muted, there is definitely an acceptance of the new normal, with a desire to move forward again in a climate of lower-valued currencies, less government spending and lower GDP growth.”
Growth is expected to be more muted in 2017, with financing and bureaucratic hurdles remaining, but an increasing number of deals are coming to fruition on time, from only 26 per cent opening their doors on schedule in 2014, to 47 per cent in 2016.