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[Update] Is Middle East Africa the new black?

IHG, Accor, Radisson Hotel Group, Deutsche Hospitality and now Hilton announce development in the Middle East - Africa region. Various subjects and various goals but all in the area.

Though market trends aren't in the green in any country of the Arabian Peninsula, it is a source of interest for hotel groups. Bahrain, Saudi Arabia, Kuwait, Oman, Qatar and UAE posted negative RevPAR evolutions on the last 12 months and only Bahrain and Qatar saw their OR maintain positive growth. North Africa and the Levant post better performances according to database of Olakala_destination.

Hilton plans strong growth in Africa 

4 properties have opened and 14 are in the pipeline on the African continent alone. Hilton is pushing Garden Inn strongly since the first opening in the area in March 2016 in Tanger. The brand is also present in Kenya (Nairobi Airport), Zambia (Lusaka) and Botswana (Gaborone). The next properties to open are in Uganda (Kampala) and Swaziland (Mbabane). Next destinations will be Malawi, Uganda, Ghana, Egypt, Democratic Republic of Congo, Ethiopia, Ghana, Nigeria and South Africa. 


“Countries such as Botswana and Uganda are some of the fastest growing economies in the world, with impressive visitor offerings. The Hilton Garden Inn brand appeals to the rise of middle-class travelers into and across Africa, providing an opportunity for us to open hotels and meet guest demand in key destinations,” said Jan Van Der Putten, VP Operations, Africa and Indian Ocean, Hilton. 

IHG and Seera Group signed an agreement

The company based in the Kingdom of Saudi Arabia will have access to IHG’s global portfolio. Seera Group considers itself to be the largest travel and tourism company in the Middle East with a prominent local, regional and international presence.

Pascal Gauvin, Managing Director, IMEA, IHG, announced: “We are thrilled to announce our partnership with Seera Group. IHG has ambitious growth aspirations for the region, and the exciting agreement will allow us to connect with a wider audience of leisure travellers. Leisure travel is a growing category among the region’s domestic and outbound travellers, including the Kingdom of Saudi Arabia, with a number of projects initiated under the KSA National Vision 2030."

Kasada Capital Management closed a fundraising of $500 million

In July 2018, Accor invested 150 million dollars in Kasada Capital Management, a fund dedicated to supply development in Sub-Saharan Africa. 
Olivier Granet said: "The conditions are currently in place to invest in the hotel sector in Africa in an innovative way. In the rest of the world, platforms similar to Kasada are already established and profitable, but they do not yet exist with the critical size and integrated structure required in sub-Saharan Africa. The time has come to implement bold strategies. With the support of Accor and Katara, we have a unique competitive advantage through a strong brand portfolio and access to local and international financial institutions." 

Radisson Hotel group to open 3 properties in Madagascar

Antananarivo will welcome a Radisson Blu, a Radisson and a Radisson Serviced Apartments.

The 4th Jaz in the City will open in the United Arab Emirates

After Amsterdam (2015), Stuttgart (2018) and Vienna (2020), Deutsche Hospitality will open 253 rooms in Dubai Creek in 2022 under its lifestyle brand. The project is being realized with the Investment Corporation of Dubai (ICD).

Jaz In the City - Dubai
Jaz In the City - Dubai

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