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Duet Group is developping hotel investment fund in sub-Saharan Africa

Duet Group is partnering with Bouygues Batiment International, a subsidiary of the Bouygues Construction Group, to develop hotels in sub-Saharan Africa.

Duet Group signed a partnership agreement with Bouygues Batiment International to establish Duet Africa Hotels, a vertically integrated hotel investment, development and asset management company. Duet Africa Hotels will develop, design, build, own, operate and exit a portfolio of internationally branded midscale and upscale business hotels in sub-Saharan Africa. The venture will target fast growing and resource rich countries such as Nigeria, Ghana, Ivory Coast, Ethiopia, Tanzania, Mozambique, Kenya and Uganda. The focus will be on greenfield developments or significant refurbishments in standalone or mixed use format with office, residential and retail.

Duet and Bouygues Batiment International believe there is a significant opportunity today to enter the hotel sector in sub-Saharan Africa given the region's sustained economic growth (>5% GDP growth per annum), the current favorable hotel demand-supply imbalance and the high barriers to entry.The presence of large consumer markets combined with the abundance of natural resources, increases in intra-Africa trade and improving intra-Africa connectivity will continue to support growth in business travel. Currently there are only an estimated 84,000 branded hotel rooms in Africa with the majority in North Africa and South Africa. Moreover, hotels in the pipeline are typically subject to long gestation periods due to funding issues and poor execution capabilities with 62% of the hotel rooms reported to open in 2015 not yet on site.

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