Why hotel developments are not about to slow down anytime soon
1 months ago, 11 Oct 11:45
Tim Cordon, the group’s senior-vice president for Africa, Middle East and Turkey, says no serious hospitality investment can afford to put Africa, and Kenya in particular, on the back-burner.
Radisson Group, which entered the African market in 2000, now operates 45 hotels with a similar number in the pipeline.
This year alone, the group has added 1,300 rooms on the continent.
In Kenya, the group has recently branded Four Points by Sheraton in Hurlingham.
Name any major global name and chances are that if it is not already here, there are plans to build one.
When the Pinnacle Tower opens its doors to the public, Hilton will operate the tallest hotel in Africa. At 70 storeys and 300 metres high, the tower under construction in Upper Hill, Nairobi, is expected to be the tallest building in Africa.
America-based Marriott International - now with over a million rooms worldwide - Hiton, Accor, Hyatt and Radisson Group are some of the brands whose expansion in the local market is being watched closely by developers.
As the Magical Kenya Travel Expo was going on at the Kenyatta International Convention Centre in Nairobi last week, another high level forum was taking place at the Radisson Blu Hotel in Upper Hill.
The African Hospitality Investment Forum is the premier hotel investment conference on the continent, attracting international hotel owners, investors, financiers, management companies and advisors.
It is here that global hospitality giants announce the next frontier for big buck spending. Kenya, and Africa, is slowly becoming the playground for the big boys in hospitality.
The number of hotels openings being planned on a continent that was hardly on the radar a decade ago is staggering. They look past the insecurity tag that has been the bane of the continent with executives saying insecurity is global and can no longer be used as a barrier to investment.
Radisson Group, which entered the African market in 2000, now operates 45 hotels with a similar number in the pipeline. This year alone, the group has added 1,300 rooms on the continent.
Tim Cordon, the group’s senior-vice president for Africa, Middle East and Turkey, says no serious hospitality investment can afford to put Africa, and Kenya in particular, on the back-burner. He says they are planning to build at least 100 hotels by 2022 under an expansion blueprint dubbed Destination 2022.
The key, he says, is to not just sign up but open hotels as quickly as possible and stay ahead of the park. “Kenya has the infrastructure in place that is conducive to hotel development. The country’s GDP mirrors that of the continent and needs more hotels. A city like Nairobi is still underserved when it comes to hotel investment. The decision to invest here was made about 20 years ago and we are not going back on that,” says Cordon.
Although a number of these brands plan to bring existing hotels into their portfolios, others plan to work with developers to create products that resonate with the much-touted growing middle-class. ...
Category: business news