As the South African and broader African hospitality markets continue to recover post-Covid-19, investment and development activity is expected to increase as the sector develops through its worst crisis in history, according to industry analyst Wayne Troughton, CEO of HTI Consulting.
- African hospitality markets continue to recover post-Covid-19, and investment and development activity is expected to increase as the sector develops through its worst crisis in history, according to industry analyst Wayne Troughton, CEO of HTI Consulting
- Emphasis on hospitality’s critical role as job creation and economic growth driver
- According to a recent W Hospitality survey, hotel chains signed 447 transactions in 2021, and the number of rooms (80,291 rooms) added to their development pipeline is nearly the same to 2019
According to Troughton, some of his most striking trends are how the investment and operational landscape has altered since the epidemic, how markets and products are adjusting to these changes, and what the recovery and forward bookings look like for the upcoming season.
“One of the primary issues we intend to address is the present state of recovery and forward bookings for the forthcoming season. HTI Consulting is conducting research with tour operators, travel agencies, and hotel operators; the findings of these surveys will be presented at the Hospitality Forum and debated in a panel discussion with important industry influencers and champions,” Troughton said.
HTI Consulting is conducting a study with tour operators, travel agencies, and hotel operators; the findings of this research will be presented at the Hospitality Conference and debated in a panel discussion with important industry influencers and champions.
“Because Covid-19 has transformed the way we think, and to some extent how we work and travel,” he says, “it is critical to learn about new products that have emerged and how current brands have reacted to these changes, especially moving forward, “He Added.
Covid has also put major pressure on cash flows, resulting in the reorganisation of equity and debt structures and longer-term changes in how programs are assessed and funded in the future.
First API Hospitality Forum
Troughton’s remarks come prior to the maiden API Hospitality Forum, which will present over 150 delegates with insights into this fast-paced and dynamic sector from renowned industry experts, worldwide hotel brands, funds, hotel owners, and others from all across the value chain.
The API Hospitality Forum, created in collaboration with Africa’s major real estate development and investment summit, the 400-person API Summit, and sponsored by Radisson Hotel Group and HTI Consulting, provides a crucial and authentic forum for African and South African hospitality leaders to assemble and network with the wider real estate community, according to Troughton.
“In recent years, a considerable amount of hospitality investors have migrated from other real estate asset classes, making it even more critical to establish this relationship between the broader real estate community and the hospitality sector.” Partnering with the API Summit also makes it more inexpensive, allowing the summit to reach a broader and larger audience that may have previously found other international hospitality conferences inaccessible,” He explained.
Daniel Trappler, Radisson Hotel Group’s Senior Development Director for Sub-Saharan Africa, agrees with Troughton.
“The API Hospitality Conference will bring together industry players, stakeholders, and leaders to shine a bright light on the South African and African hospitality markets.” There has never been a better time to learn about these markets’ investment activity, recovery, and trends. This inaugural hospitality event is a great chance for everyone to meet, network, and participate, “Trappler Commented.
The hospitality forum, according to Trappler, can play a strategic role in its efforts to continue developing in what has been a record-breaking year across the continent.
“The Radisson Hotel Group’s focus in Africa in 2022 has been on hotel openings, and the group has had a record year in this regard. The post-pandemic hospitality market rebound is still something to be understood (especially given the global impact of inflation, which is especially pertinent in the construction industry) and something to be taken advantage of where possible. RHG has the experience and flexibility to do both as Africa’s largest organically generated international hotel brand,” he argues.
According to Trappler, the hospitality forum can play an important role in its attempts to continue developing during a record-breaking year across the continent.
Trappler, who has an excellent network throughout the African continent, also emphasises hospitality’s critical role as a driver of job creation and economic growth.
“In South and Sub-Saharan Africa, hospitality is a significant economic driver, job provider, and focal property type. In the Sub-Saharan region, our hotel development pipeline is now extensive, including hotels within serviced residences, mixed-use schemes, and appropriately located standalone products – ensuring that our developments are a response to market needs as we continue to cement our position as Africa’s most diverse hotel management company in terms of the number of countries in which we operate, “Trappler added.
According to Murray Anderson-Ogle, the API Summit’s host, the introduction of the API Hospitality Forum to its industry-leading event is a continuation of its aim to encourage development across Africa’s real estate sector.
“The API Summit is widely regarded as the industry’s major annual gathering, and we are thrilled to welcome over 400 participants to the 2022 event .” The addition of the API Hospitality Forum to our programme is part of our commitment to offer experiences that provide tangible advantages to our community of top African and South African real estate players, particularly as our community’s interest and exposure to the sector grows, “Anderson-Ogle said.
Africa’s hotel industry is resilient.
While the hospitality sector was one of the most hit during the pandemic, it has also been among the fastest to rebound on the African continent.
According to a recent W Hospitality survey, hotel chains signed 447 transactions in 2021, and the number of rooms (80,291 rooms) added to their development pipeline is nearly the same to 2019.
Marriott Hotel & Resorts, Hilton, and Radisson Blu are the most active hotel brands in terms of on-site construction.
According to the report, the on-site construction period is often beneficial to hotel chains and many others involved – a new hotel implies more jobs, tax money for the government, increased economic activity in the value chain, more advertising spending for the location, and so on.
In respect of hotel brands, Hilton has the most rooms (2,904) under development, followed by Marriott Hotels & Resorts (2,788) and Radisson Blu (2,757).
When it pertains to chain hotels, Marriott International, the world’s largest, has more than double the African development pipeline of Hyatt Hotels & Resorts, Meliá Hotels & Resorts, and Louvre Hotels Group combined.
Bet On Local Tourism
Local tourism was prioritised in the African region’s rebuilding efforts. Domestic tourism accounted for 55% of the region’s travel and tourism spending prior to the epidemic in 2019. Following the pandemic’s low hospitality incomes, Rwanda sought to strengthen its domestic and regional markets.
At the same time, Kenya reduced admission prices to all game reserves and parks in order to encourage more local tourists. However, Africa’s domestic tourist business is mostly undeveloped. Tourism experts feel that more authentic and environmentally friendly resorts and items focused on middle-class African families and millennials could better exploit the local market.