The continent’s hotel industry may account for less than 5% of the sector transactions globally, but demand is on the rise and so is investment. The sector is expecting an injection of $2.7 billion by 2018 according to consultancy firm JLL, and over 42,000 new hotel rooms to be built across Africa between 2014 and 2017. As it stands, there are approximately 581,000 hotel rooms across the continent which accounts approximately to 106 rooms per million people. Sub-Saharan Africa may trail behind in the statistical head-to-head with 76 rooms per million, but the region expects an average growth of 9,000 new rooms per year, with supply expected to grow to 4% annually by 2017.
David Harper, Head of property services at Hotel Partners Africa, denotes that investment climate across Africa is improving almost daily and also pointed out that more and more people are reviewing options over the continent. One factor identified is a resurgent tourism industry, expected to increase to 5.7% yearly between now and 2030, significantly higher than the 3.6% anticipated globally. Paired with the draw of progressively diversified economies, this explains the increased influence of global hotel brands, whose presence accounts for 22% of total rooms. Development of the sector is an attractive prospect for both investors and customers, and as the spectrum of travelers widens, so too is the variety of accommodation.
Posted on: November 18, 2015