HVS Cape Town: Hotel assets attract investor interest

The hospitality sector is poised for significant growth because of strong interest in local hotel assets, says global hospitality consulting and services group HVS.

According to the World Travel and Tourism Council, the direct contribution of travel and tourism to GDP in SA was R113.4bn in 2014 (3% of GDP). The contribution is expected to grow 4.6% per annum to R184.7bn (3.4% of GDP) by 2025, reflecting the economic activity generated by industries such as hotels and airlines.

HVS managing partner in Cape Town Tim Smith said on Friday, 15 July, that there was a real demand from prospective hotel investors for local assets. There was also optimism that the industry on the continent would grow, he said.

It was this potential that had led to the decision by HVS to set up shop in Cape Town as a springboard into the rest of Africa, Smith said. HVS undertakes valuations for new ventures and handles feasibility studies.

Smith said that following the post-World Cup slowdown, more companies and individuals had overcome doubts about risk and were prepared to invest in hotels. Occupancies reached a low of 53% in 2011, compared with 72% in 2007 before the global downturn.

“After the 2010 World Cup, there were too many hotel rooms and it took four years for the oversupply to be absorbed “¦ in the past two years, trading has been positive,” Smith said.

The Carlson Rezidor Hotel Group’s Marc Descrozaille announced in June that two new hotels would open in Cape Town in the next 10 months and another in Polokwane, highlighting the multibillion-rand investment the group is making in SA. Descrozaille said the company hoped to build 20 hotels in Africa by 2020.

The Hospitality Outlook: 2014-18 report by PwC says that although SA’s economy is facing headwinds, the hospitality sector is poised for growth in the next five years, in the wake of a number of inbound travellers into the continent.

Source: Business Day

Carlson Rezidor continues to lead Africa’s hotel pipeline

Carlson Rezidor, one of the world’s largest and most dynamic hotel groups worldwide with over 1,400 hotels in 115 countries, is accelerating its growth strategy in Africa. The group has opened five Radisson Blu hotels in the first six months of 2016 and signed four new hotels including the first Quorvus Collection in Africa. The group is also entering its 28th country in Africa and taking the Park Inn by Radisson brand to the Indian Ocean islands.

In 2016, Carlson Rezidor Hotel Group opened five Radisson Blu properties serving the upper-upscale segment: Radisson Blu Hotel Nairobi Upper Hill in Kenya (271 rooms); Radisson Blu Hotel, Marrakech Carré Eden in Morocco (198 rooms); Radisson Blu Residence with 187 luxury hotel apartments in Maputo, Mozambique (the group’s first residence concept in Africa); Radisson Blu Hotel Abidjan Airport, Ivory Coast (261 rooms) and Radisson Blu Hotel 2 Février in Lomé (320 rooms), host of the first Africa Hotel Investment Forum in West Africa in Togo.

Speaking at the opening of the Africa Hotel Investment Forum, Wolfgang M. Neumann, President and CEO of The Rezidor Hotel Group said, “Africa is Rezidor’s biggest growth market. Our group’s total portfolio comprises 69 hotels in 28 countries, with over 15,000 rooms in operation or under development. Radisson Blu leads the way with more hotel rooms under development than any of the other 85+ hotel brands active in Africa today. Our ambition is to be the leading player in the travel and tourism sector across the continent.”

Carlson Rezidor also announces the signing of its first Quorvus Collection in Africa: the 5-star, 244-room luxury Emerald Grand Hotel & Spa in Lagos, Nigeria. The group also signed a new Radisson Blu Hotel Harare in Zimbabwe (245 rooms), a Radisson Blu Hotel in Durban Umhlanga (207 rooms) and a Park Inn by Radisson in Quatre Bornes, the new commercial hub of Mauritius.

Rezidor’s Executive Vice President & Chief Development Officer, Elie Younes added: “In the last 24 months, we have signed a new hotel deal in Africa every 37 days. And it’s not just about signing hotels; we are delivering our pipeline. We have opened a hotel in Africa every 60 days. In South Africa alone, we now have 14 hotels. In 2016 and beyond, we aim to maintain this great momentum by opening four more hotels in the second half of 2016.”

Hosted by the Government of Togo, Africa Hotel Investment Forum will focus on hotel development and finance in Africa. How to drive tourism and attract more than just the business traveler. The event connects hotel developers, hotel owners, hotel groups, banks, equity funds, property funds, hotel consultants, advisors and hotel professionals from the international and local markets, driving investment into hotel projects across Africa.

“The African continent is a powerhouse of exponential growth of the hotel industry”, said Elie Younes. “Rapid urbanization and economic growth, combined with favorable demographics, has resulted in a shortage of quality internationally branded hotels. This means there are huge opportunities for sustainable and quality growth for world-class international hotel operators like Carlson Rezidor Hotel Group.”

23 JUNE 2016