Africa’s Hotel sector booming – but not all countries benefit

7/31/2018 10:47:10 AM

Africa’s hotel sector is growing, as a number of large international chains are rapidly increasing their presence on the continent. A study shows that the expansion focuses on a small number of countries and markets, like South Africa (mainly Johannesburg and Cape Town), Morocco, Egypt, and Tunisia, besides the tourist islands of Mauritius, Seychelles, and Zanzibar.

International hotel chains and groups such as Hilton and Marriott have expanded their portfolio over the past years, as well as, Mövenpick, CityBlue, Thailand’s Dusit, and the Barcelona-headquartered Mangalis.

According to Quartz, real-estate consultancy Knight Frank has found out that Africa is a growth region for hotels, but that not many cities on the continent profit from the expansion. In total, more than half of the continent’s capital cities have fewer than five chain hotels each.

The report explains that the African hotel sector “still faces challenges that keep undermining its true potential. Delays in approvals, access to finance, high construction costs, and severe power problems hamper the kickstarting of some of these projects.”

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