PRESS RELEASE: Marriott International and Landmark Africa Group announce signing of renaissance Lagos hotel and Marriott executive apartments

The 25 floor hotel will feature the 216 room full service Renaissance Lagos Hotel and 44 room Marriott Executive Apartment offering extended stay apartments with space, ambience and the privacy of residential living

LAGOS, Nigeria, November 15, 2017/ — Marriott International (NASDAQ: MAR) ( and Landmark Africa Group ( today announced the signing of Renaissance Lagos Hotel and Marriott Executive Apartments. Slated to open in 2020, the hotels will be located within the Landmark Village precinct, a premier mixed-use, business, leisure and lifestyle development along the Atlantic Ocean waterfront in Victoria Island, the central business district of Lagos.

“We are excited to partner with the Landmark Africa Group on this project. With the rapid pace of urbanization more and more guests are looking for the value, the convenience and the vitality that mixed-use provides. The Renaissance Lagos Hotel and Marriott Executive Apartments will be a significant addition to our strong Nigeria portfolio. There is a growing need for high caliber short and extended stay lodging in Nigeria and we believe the two hotels together will help bridge this gap,” said Alex Kyriakidis, President and Managing Director Middle East and Africa, Marriott International.

The 25 floor hotel will feature the 216 room full service Renaissance Lagos Hotel and 44 room Marriott Executive Apartment offering extended stay apartments with space, ambience and the privacy of residential living. The hotels will offer a wide range of amenities, including local and international restaurants, spa facilities, a fitness center, and an infinity pool with access to a 100-meter-long boardwalk overlooking a vibrant beach club offering exciting watersports.

“Marriott International is synonymous with quality and unique lifestyle experiences globally, which we, at the Landmark Africa Group continuously strive to align ourselves with. We look forward to bringing Marriott’s hospitality and passion for excellence to the Landmark Village setting a new benchmark for mixed-use developments in the region,” said Paul Onwuanibe, Chief Executive Officer Landmark.

Designed to be the first Lagos equivalent of the Rockefeller Centre in New York, Canary Wharf in London, Rosebank in Johannesburg and Victoria & Alfred Waterfront in Cape Town, the Landmark Village features office spaces, luxury apartments, high end retail as well as international restaurants. It is rapidly emerging as a leading mixed-use development on the West African Coastline.

Distributed by APO Group on behalf of Marriott International, Inc..

Media contacts:

Landmark Africa Group

Anjali Mehra

About Landmark Africa Group:
Landmark ( began its operations in 1997, and is today recognized as a leading real estate services company in Africa, with a 150,000sqm development portfolio that comprises high rise commercial headquarters of several multi-national firms, retail developments, state of the art hospitality and conferencing facilities, and vast land banks along the Atlantic Ocean coastline.

Landmark is a financially stable and well capitalized enterprise. The Group is established with offices in the United Kingdom and 5 countries across Africa including Nigeria, Ghana, South Africa, Kenya and Ivory Coast. Their mission is to provide world-class business and leisure environments to improve the work-life balance of multi-national and domestic clients seeking an exclusive one stop shop setting in Africa.

You can find out more about the Landmark Africa Group by visiting or connect with them @LandmarkAfrica on Facebook, Twitter and Instagram.

About Marriott International:
Marriott International, Inc. (NASDAQ: MAR) ( is based in Bethesda, Maryland, USA, and encompasses a portfolio of more than 6,200 properties in 30 leading hotel brands spanning 125 countries and territories. Marriott operates and franchises hotels and licenses vacation ownership resorts all around the world. The company also operates award-winning loyalty programs: Marriott Rewards®, which includes The Ritz-Carlton Rewards®, and Starwood Preferred Guest®. For more information, please visit our website at, and for the latest company news, visit In addition, connect with us on Facebook ( and @MarriottIntl on Twitter ( and Instagram (


PRESS RELEASE: Hilton and Transcorp Hotels sign 20 year extension for Transcorp Hilton Abuja management

2017_11_01_14_14_20_Abuja_Hotels_Transcorp_Hilton_Abuja_Hotels_in_Abuja_NigeriaDeal sees the iconic hotel remain under the flagship Hilton Hotels & Resorts brand

MCLEAN, United States of America, October 31, 2017/ — Hilton (NYSE: HLT) ( and Transcorp Hotels Plc (, a subsidiary of Transnational Corporation of Nigeria Plc (Transcorp Plc) ( today announced the signing of a 20-year extension to the current agreement to manage the iconic Transcorp Hilton hotel in Abuja. The agreement will see Hilton manage the property until 2037. The hotel, which is a national landmark for having hosted countless heads of state and global events like the World Economic Forum on Africa, has been operated by Hilton since its opening in 1987.

Speaking at a signing ceremony in Washington DC, Chris Nassetta, Hilton’s President and CEO, said: “We have had an incredible relationship with the Transcorp team and we are happy to announce that we will continue to grow that relationship throughout the next 20 years. With our mission to be the world’s most hospitable company, I am delighted we will be able to continue welcoming guests to this hotel until at least 2037.”

The award-winning 667-room hotel – one of the largest in sub-Saharan Africa – is currently undergoing a multi-million dollar renovation which will transform the property. The extensive refurbishment will continue the Transcorp Hotels legacy as the leading provider of hospitality in Nigeria.

Tony O. Elumelu, Chairman of Transcorp Plc, the largest listed conglomerate on the Nigerian stock exchange and owners of hospitality subsidiary Transcorp Hotels confirmed: “We are delighted to continue our long-standing owner-operator relationship with Hiton. Our investment in the renovation reflects our commitment to shaping Nigeria into a leading hospitality centre in the West Africa region and with Hilton as our operating partners, we are confident that we will continue to lead in the sector.”

Hilton and Transcorp Hotels have two additional properties in the development pipeline. Furthermore, Hilton expects to open six hotels in the next six months across Africa, and open properties in 15 countries where it currently does not operate in the next three years.

Also at the signing ceremony, Valentine Ozigbo, CEO of Transcorp Hotels who leads the management of the relationship between the owners and Hilton, commended Hilton for their clear commitment to delivering excellence and restated the owners’ commitment to continue to use technology and products to develop the hotel as a destination not just for high-end clientele, but also for those travelling to Abuja for business and leisure.

Hilton, which has more than 5,000 hotels globally, has had a continuous presence in Africa for more than 50 years, expects to more than double its current presence across the continent in the next five years.

Distributed by APO Group on behalf of Hilton.


PRESS RELEASE: Marriott International continues extensive expansion in Africa: Targets over 200 hotels with more than 37,000 rooms by 2022 expecting to generate $8.5 billion of capital investment and 50,000 direct and indirect jobs

Today Announces Seven New Hotels, Marking a Debut in Ivory Coast and Strengthening Presence in Ethiopia, Ghana and Nigeria

KIGALI, Rwanda, October 10, 2017/ — From the Africa Hotel Investment Forum (AHIF) ( in Kigali, Rwanda, Marriott International (NASDAQ: MAR) ( today announced further expansion plans in Africa with seven new hotel signings. Marriott International was the first global chain to make a significant investment in Africa with the acquisition of Protea Hotels for $210 million in 2014. The company is targeting over 200 hotels with 37,000 rooms open or in the pipeline by 2022, equating to around $8.5 billion of capital investment by its real estate partners, reinforcing its continued commitment to expansion in Africa and solidifying its leadership on the continent. The investment is expected to generate substantial economic activity and around 50,000 direct and indirect jobs once the hotels open.

“Africa today makes a very compelling story. We are seeing unprecedented traction for our compelling brands, driving our momentum of growth,” said Alex Kyriakidis, President and Managing Director, Middle East and Africa, Marriott International. “We have always believed in the potential of Africa and the opportunities the continent has to offer. With economic growth, a rising middle class and rapid urbanization, the demand for travel and high quality lodging is growing, providing us with a significant opportunity to enhance our footprint and play our part in supporting many emerging markets across the continent,” he added.

Today Marriott International hotels are present in 20 African countries: Algeria, Djibouti, Egypt, Ethiopia, Gabon, Ghana, Guinea, Kenya, Malawi, Mauritius, Morocco, Namibia, Nigeria, Rwanda, Seychelles, South Africa, Tanzania, Tunisia, Uganda and Zambia. The company is expected to foray into new markets including Benin, Botswana, Madagascar, Mali, Mauritania, and Senegal and has signed 1300 new rooms marking the debut of Marriott International into Ivory Coast while strengthening its presence in existing markets including Ethiopia, Ghana and Nigeria.

Abidjan Marriott Hotel, Ivory Coast

Within walking distance from the Presidential Palace, the 200 room Abidjan Marriott Hotel is strategically located in the heart of Plateau, the central business district and the commercial, financial and administrative center of Abidjan. Owned by Ivory Coast Investissement, the hotel is slated to open in 2021 and will be part of a mixed-use development that will include a conference center, offices, retail and a national library.

Sheraton Abidjan and Four Points by Sheraton Abidjan, Ivory Coast

Slated to open in 2022, both Sheraton Abidjan and Four Points by Sheraton Abidjan will also be part of a mixed-use development which will include a convention center, a marina, a shopping center and an office building. The 259 room Four Points by Sheraton Abidjan will be a conversion of an existing hotel, which will be rebranded following extensive refurbishment, while the 300 room Sheraton Abidjan will be a new build property. Owned by the Societe Des Lagunes, the hotels will be set on the waterfront in the affluent neighborhood of Cocody, an upmarket residential commune that also houses the embassy district.

With Ivory Coast being celebrated as one of Africa’s fastest-growing economies, and re-emerging as the gateway to Francophone Africa, the new hotels in the capital city of Abidjan are ideally placed for a long and thriving future.

Renaissance Landmark Lagos Hotel and Marriott Executive Apartments, Victoria Island, Lagos, Nigeria

Owned and developed by Landmark Africa Group, Marriott International will manage the 216 room Renaissance Landmark Lagos Hotel, as well as a 44-room Marriott Executive Apartments. Slated to open in 2020, the hotels will be located within the Landmark Village precinct, a premier mixed-use, business, leisure and lifestyle development along the Atlantic Ocean waterfront in Victoria Island, the central business district of Lagos. The 25-floor hotel will offer a wide range of amenities, including local and international restaurants, spa facilities, a fitness center, and an infinity pool with access to a 100-meter-long boardwalk overlooking a vibrant beach club offering exciting watersports.

Speaking on the increased interest in mixed-use development projects, Kyriakidis said, “As cities evolve and grow into flourishing urban centers, we will continue to see a lot of activity in this space. An international hotel brand can bring cachet to a project that positions it significantly above its peers and differentiates it from its competitors. Our compelling brands spanning every segment from Luxury to Premium to Select to Extended Stay, lend themselves to grow in all markets, city and resort as well as standalone and mixed-use formats, providing developers the flexibility and choice to identify the right brand for the right location.”

Le Meridien Accra, Ghana


The 160 room Le Meridien Accra, owned by 4-Mac Limited is strategically located close to the international airport, within the prestigious Airport Residential Area of Accra. It will provide easy access to key commercial, diplomatic and government nodes as well as to major city attractions. Scheduled to open in 2021, the hotel marks the debut of Le Meridien brand into Ghana.

Protea Hotel by Marriott Addis Ababa, Ethiopia

Projected to open in 2021, the 165 room Protea Hotel by Marriott Addis Ababa, located on Churchill Avenue will mark the debut of the brand into Ethiopia. The hotel will offer a specialty restaurant, a lobby bar and lounge and meeting facilities as well as a fitness center and spa.

Earlier this year, Marriott International had announced the debut of The Ritz-Carlton brand in the exotic Zanzibar Archipelago with the signing of The Ritz-Carlton Zanzibar, the 90 room all suite and villa luxury resort as well as the debut of Aloft into Mauritius with the signing of Aloft Port Louis, the brand’s first adaptive reuse project in Africa.

Commenting on the extraordinary pace of hotel signings and openings this year, Kyriakidis said, “Signings and openings form the cornerstone of our aggressive growth strategy. Our history and legacy on the continent and the strong foundations we have built over the years serve as a springboard for our future growth. Our brands are resonating with the aspirational and fast growing middle class in the region. Our strengthened footprint and increased distribution is driving market share and building loyalty which makes us more attractive to investors than ever before.”

The company debuted the Four Points brand in Tanzania last week with the opening of Four Points by Sheraton Arusha, The Arusha Hotel and is now gearing up to open the Four Points by Sheraton Dar es Salam, New Africa Hotel. Earlier this year the brand debuted in Kenya with the opening of Four Points by Sheraton Nairobi Hurlingham and is now expected to open its second hotel in Kenya, Four Points by Sheraton Nairobi Airport in the next couple of weeks.

In Egypt, the company recently reopened Sheraton Cairo, a city icon for over four decades, after extensive renovation. It is now looking to debut its renowned luxury brand St. Regis, with the opening of the spectacular St. Regis Cairo, a highly anticipated addition to the company’s luxury portfolio in the country.

Marriott also recently opened Protea by Marriott Owerri Select in Nigeria. Other forthcoming openings over the next couple of months include Sheraton Bamako which marks the debut of Marriott International in Mali, Protea Hotel by Marriott Constantine, the brand’s debut in Algeria and the Accra Marriott Hotel, the debut of the flagship Marriott Hotels brand in Ghana.

Today, Marriott International has a strong footprint across the continent operating 140 hotels with close to 24,000 rooms across 12 brands.

PRESS RELEASE: Marriott International Announces Dynamic New Sales and Marketing Leadership Team to Support its Rapidly Growing Middle East and Africa Portfolio

The leading hotel operator is targeting a projected growth of 150,000 rooms operational and pipeline in 38 countries by 2022 across Middle East and Africa
DUBAI, United Arab Emirates, July 31, 2017/ — Marriott International (NASDAQ: MAR) ( today announced the expansion and strengthening of its Sales and Marketing Leadership Team for Middle East and Africa. This bold new initiative comes on the heels of the successful mega merger between Marriott International and Starwood Hotels and Resorts and the fast progressing integration of the two companies. The revamped Brand, Marketing, Sales and Consumer Services (BMSC) Leadership Team comprises of highly experienced professionals from Marriott International and legacy Starwood Hotels and Resorts, bringing together exceptional talent and expertise from both companies and speaks to the company’s commitment to support its enhanced footprint and aggressive growth plans in the region.

Led by seasoned Marriott International veteran, Neal Jones, Chief Sales and Marketing Officer, Middle East and Africa, Marriott International, the team will provide dedicated support to the company’s thriving regional portfolio and will be responsible for driving top line revenue for Marriott International brands, ensuring the regional Sales and Marketing strategy is aligned with the company’s vision and priorities.

With a current portfolio of over 240 hotels with 54,000 rooms in 30 countries, Marriott International is working towards targeting a projected growth of 150,000 rooms operational and pipeline in 38 countries by 2022 across Middle East and Africa.

Commenting on the announcement, Neal Jones said, “The leadership changes we are announcing today are important to foster greater synergies, teamwork, accountability and nimble decision-making critical to lay a strong foundation that will support our ambitious growth plans in the region. I am extremely excited to work together with such a talented and diverse group of leaders who bring with them exceptional domain expertise as well as regional insights that will enable us to create a more vibrant organization that delivers value for all stakeholders.”

“I am confident that with this, we have the right structure and talent in place to accelerate our lead in the market, drive further innovation and strengthen the positioning of our brands while keeping our loyal and new guests at the centre of everything we do, steering us into the next phase of our growth and success,” he added.

Marriott’s BMSC leadership team for Middle East and Africa has been formed with the following seasoned hospitality professionals currently on board and a Vice President Luxury Brands soon to be announced.

Paul Dalgleish, Vice President of Sales & Distribution will be responsible for Property, Market and Area Sales Organisations as well as the Global Sales Organisation, whilst leading the Middle East and Africa Distribution Strategy. Previously Vice President of Sales for Marriott International, Paul has played a key role in the rapid expansion of the Middle East and Africa Region, deploying new and innovative sales strategies, whilst ensuring talent development lives as a discipline priority.

Sarah Allen, Vice President of Revenue Strategy & Analysis will be responsible for Property, Market and Area Revenue Management, Remote Revenue Management Solutions and Revenue Management Analysis. Formerly Vice President of Revenue Management, Marriott International Middle East and Africa, Sarah is a Marriott International veteran and has played a key role in moving hotels onto Marriott’s Revenue Management platforms implementing processes as well as setting up shared services across the markets to drive synergies. She was also the business leader for the integration of Protea Hotels which was acquired by Marriott International in 2014.

Jitendra Jain, Vice President of Digital, Loyalty and Portfolio Marketing will be responsible for the company’s award-winning Loyalty Programs, Partnerships, cross-brand marketing of Marriott International’s regional portfolio and will lead all Digital Marketing, Platforms and Products. A Starwood veteran, Jitendra previously led the Marketing function for the former Starwood portfolio in the Middle East, where he spearheaded the transformation of marketing processes, talent and culture, cultivating a data-driven and forward-looking mindset leveraging digital, brands and loyalty.

Sandra Schulze-Potgieter, Vice President of Premium and Select Brands will be responsible for Brand Marketing and Management for Marriott International’s compelling portfolio of Premium and Select Brands and will oversee Restaurants & Bars Marketing as well as Area Field Marketing. Sandra was previously Senior Director, Brand Marketing & eCommerce for Marriott International Middle East and Africa managing Field Marketing, Brand Marketing, Public Relations, Partnerships, Social Media, Digital as well as Loyalty. She was instrumental in positioning Marriott International’s lead in Brand Marketing in the region.

Sarah Walker Kerr, Vice President of Communications Middle East and Africa will be responsible for devising and implementing the overall Communications Strategy for Marriott International in the region, driving visibility, enhancing the perception of the company and its brands and increasing its share of voice in the media. She will provide strategic counsel to the senior executive leadership team, managing Internal and External Communications, Crisis Communications and Reputation Management as well as Brand Communications. A seasoned communications specialist, Sarah was previously Regional Director of Public Relations Middle East, Africa, India & Japan for The Ritz-Carlton Hotel Company.

Raheel Baggia, Senior Director, BMSC Planning and Services will be responsible for Integration and Change Management, Program Execution and Training. Prior to this Raheel served as Director, BMSC Consulting-Middle East and Africa. Since joining Marriott in 2013, Raheel has been working on strategic continent projects both in his previous role supporting BMSC-Middle East and Africa as well as in Europe where he was part of the Global Operations team.

Distributed by APO on behalf of Marriott International, Inc..


Four Points by Sheraton Lagos opens remodeled Office Bar

bivnze's space

Four Points by Sheraton LagosBy VICTOR NZE

The expansive 231-room Four Points by Sheraton, Lekki, Lagos has officially reopened its roof top bar, the Office Bar, which was shut earlier in the year for re-modeling works.

According to the General Manager of the Hotel, Mr. Marc Wozniak, the bar was temporarily closed to allow remodeling and refurbishment work to be carried out in order to give the facility a fresh look.

“Our Roof Top Bar popularly called-the Office Bar, was closed temporarily in order to allow the Hotel refresh the look and feel with an aim to continually fulfil our promise of being the perfect hangout spot in Victoria Island.

“Our customers can now enjoy the panoramic view of this venue while savoring well-seasoned barbecued jumbo prawns or our signature dodo (plantain) and snails alongside our amazing cocktails and lots more with friends or colleagues.

“Those visiting us can be sure to experience some…

View original post 90 more words

South Africa ‘must re-double trade and tourism efforts’

IATA study highlights aviation’s impact on jobs and economy


IATA Regional Vice President for the Middle East & Africa Muhammad Ali Albakri says efforts must be “re-doubled” to promote South Africa as a destination open to trade and tourism.

Albakri’s comments come following an IATA study that highlighted the immense value of the air transport industry in South Africa.

Aviation supports some 490,000 jobs in the country, including tourism-related employment.

Affordable, safe and reliable air transport is crucial to economic growth

The sector also contributes $US12 billion to South Africa’s GDP—the equivalent of 3.5% of total GDP.

“The study confirms the vital role of air transport in facilitating over US$110 billion in exports, some US$140 billion in foreign direct investment and around US$9.2 billion in inbound leisure and business tourism for South Africa,” Alkbari said.

“Now with the country in recession it’s time to re-double efforts to promote South Africa as a destination for business, trade and tourism.”

Executives surveyed by the World Economic Forum rated South Africa’s status regarding three key areas for the air transport industry.

Thirty-seven African countries in all were rated, out of these South Africa ranked:

• 1st for infrastructure

• 19th for visa openness

• 17th for cost competitiveness

Alkbari has urged the South African government to recognize the benefits of aviation, and remove barriers affecting air connectivity and trade.

We urge the South African government to remove any impediments

“Affordable, safe and reliable air transport is crucial to economic growth,” he added.

“It promotes skills development and is a catalyst for jobs. We urge the South African government to remove any impediments, including unnecessary red-tape and policies that hinder air connectivity and the trade, investment, tourism and job opportunities it facilitates and stimulates.”

International Sporting Events – Takeaways for Hotel Investors


There is no doubt hosting a major sporting event boosts the profile of the country and city.  Who does not want to visit Rio after the recent FIFA World Cup and Olympics?  However, these events are only for a few weeks and even allowing for a year of visits from sponsors and managers in the lead up to the event and the boost to demand once the curtain comes down and the television cameras depart, does hosting an international sporting event justify building new hotels?

In this article, we review the possible impact of hosting the Commonwealth Games on the city of Durban and provide some advice for would be hotel investors.  We also share some of the lessons from the 2010 World Cup in South Africa, the London Olympics 2012, the 2014 World Cup and the Rio Olympics.

The Commonwealth Games and Durban

In a BBC article two years ago, the last Commonwealth Games in Glasgow in 2014 was listed as the fifth largest global sporting event.  They attracted 1,300,000 spectators to watch 4,820 athletes from 71 nations.  Television coverage was taken to 90 countries.  The next edition of the ‘friendly games’, as they are known is in Gold Coast Australia in 2018.

The Commonwealth Games 2022 have been awarded to Durban, South Africa. However, there are rumours that the city is facing the real prospect of losing the right to host the Games. This instability is not good news for investors who had been readying themselves to enter the Durban landscape with new hotel developments since the hosting announcement was made.  We assume this insecurity will soon be lifted and all parties can plan for a successful event.

Durban has hotels, swimming beaches, stadia and wonderful weather all year round. Hotel performance has not been stellar in the past couple of years however, with the city still having to work off the oversupply from the 2010 FIFA World Cup.  As things stand, the event will coincide with the countrywide Municipal and Local elections in 2022, and this may or may not interfere with the city’s ability to host a successful event.


The HVS Hotel Valuation Index 2016 graph below illustrates the trend in hotel values since 2010, and it can be seen how these have suffered between 2010 and 2016. This can be attributed to the bedroom oversupply that affected all the major centres in South Africa.  Values are reported in US$. The weakness of the Rand against the Dollar also contributed to the poor performance. Over the seven-year period from 2010 to 2016 the CAGR for value is -6.1% for Durban, which compares to -2.2% for Johannesburg and 4% for Cape Town.


What Can We Learn from Past Events?

In 2010 FIFA was reported to have block-booked more than 450,000 bed-nights long before the start of the event in an effort to regulate room rates prior to the Games. This was also done before the devastating financial crisis of 2008 and 2009 and due to this, many prospective sports followers cancelled their planned trips into South Africa. However, since many new hotel development projects were kick-started shortly after the hosting announcement and before the financial crisis, a hotel room oversupply resulted.

London is a mature tourism market with a stable tourism flow. Wary that this stability would be disrupted, the organising committee block-booked hotel rooms prior to the Summer Olympics of 2012 and released them to the market closer to the start of the event. Average Daily Room Rate during the Games was up 86.1% compared to the same days the prior year, whilst occupancy was recorded at 88,5% for London hotels. RevPAR also increased during the same period, according to data from STR. So how did London manage to host such a successful event for the hotel industry? The answer lay in how the city kept a lid on building new hotels, and rather worked on adjusting the room rate to increase performance.

Leading up to the start of the 2014 FIFA World Cup, tour operators who had years before bought blocks of rooms, were desperately offloading their spare capacity. Discount rates of more than 40% were not unheard of. As in the case South Africa in 2010, FIFA’s accommodation partner, Match Hospitality, prior to the event, released unsold rooms it had previously block-booked. The unfortunate result was that some World Cup hotel room prices dropped to half of the levels the hoteliers were achieving two years before. Overall, hotels in Brazil saw a 50.1% ADR increase in June and a 36.1% ADR increase in July; occupancy levels across all host cities decreased when compared to 2013; Brazil saw a two percent supply increase in June 2014 on a 12-month-moving-average basis, according to reported STR statistics.

On the other hand, the 2016 Olympic Games in Rio de Janeiro were successful not only on the sporting front, but on the hotel performance side as well. Media reports leading up to the Games were dominated by the devastating impact of the Zika virus, with the resultant withdrawal of some athletes from across the world, and the political turmoil involving the Brazilian president. Despite these hurdles, Rio hotels achieved good performance ratings during the games. STR has reported a 199.2% surge in average daily rate for Rio hotels during the games. The combination of this growth in rate and a 26.6% increase in occupancy to 76%, brought about a 278.6% increase in Revenue per available room. These are glowing statistics and it is generally held that Rio hotels outperformed London hotels during the previous Olympic Games of 2012. The key point to note however is that Rio was oversupplied with hotel rooms leading up to the games and this supply overhang is likely to negatively impact occupancies in the future. STR has estimated this bedroom oversupply at 23% more than a year earlier.

How Are Other Host Cities Preparing for Future Games?

The FIFA World Cup 2018 will be hosted by Russia; Tokyo will be receiving visitors to Japan for the Summer Olympics in 2020, and the FIFA World Cup 2022 will be held in Qatar. With prospects of many thousands of visitors, hoteliers are hoping to make significant profits from hosting the Games. Hotel investors are also eyeing superior returns from new properties that are entering these markets. These countries’ and cities’ organizers would do well to heed the lessons from previous international events.

Russia’s foreign political landscape, the exclusion of its top athletes from the Rio Olympics and the FIFA corruption scandals relating to how Russia won the rights to host the 2018 World Cup do not bode well for the country’s prospects to host an untainted event. On the other hand, Hotel News Now has recently reported that “the end of uncertainty in the Russian economy coupled with growth of occupancy and other performance indicators might increase the number of new hotel projects in Moscow and Saint Petersburg between 2016 and 2018”.

STR has previously reported that the Tokyo hotel industry is a high performer, with “some of the highest occupancy levels globally and with rates continuing to rise – all against the back drop of limited supply in the pipeline”. This situation could be an indication that the hotel market in Tokyo will be lucrative for hotel investors as large numbers of visitors are expected to flock to the city for the Games in 2020. The proviso however is that the delicate balance between supply and demand should be respected always.


Hotel investments are by nature very cyclical, therefore a delicate balance needs to be struck between the variables of supply and demand. International events can throw this balance out, and market players that can skilfully navigate these events can extract maximum benefit. To ensure that Durban hotels derive maximum benefit from hosting the Commonwealth Games in 2022, it is essential that hotel supply is kept at reasonable levels. A six-week event does not justify a $20 million investment in a new hotel, however to time the opening of a new hotel with such an event can massively help with cash flow management in the tricky first year of operation.  Durban hotels may not enjoy a 280% increase in RevPAR that Rio managed for the Olympic Games last year, but a substantial increase should be achievable.

However, perhaps the biggest bonus for all current and future hotels in the city is four years of international marketing reminding people of all the attractions Durban has to offer. The hotel industry can have a huge impact on the success of the games.  It is therefore imperative that the hotel industry is properly represented in the organising committee to ensure both the success of the games and the long-term success of the hotel industry learn from recent events.