According to global authority, Horwath HTL France’s managing partner, Philippe Doizelet, there has been a measurable uptick in activity due to the historically low penetration of international operators in the market.

“Investment opportunities within the hotel sector in French-speaking Africa are on the rise. This rise in sentiment is predominantly explained by the lack of quantitative and qualitative supply in some regions, with many hotels not being able to respond to the increasing demand.”

With 50 % of its Africa deals in 2018 taking place in the Francophone Region, one international operator focussed on the region is the Radisson Hotel Group, as its director of business development, Erwan Garnier explains.

“The Radisson Hotel Group has identified Francophone Africa as a key market, and we’re aggressively expanding within the region to become the market leader. Our objective is to double our current Francophone presence to 40 hotels with over 9,000 rooms in the market by 2022.”

Currently operating in 12 markets, Radisson’s growth strategy is matched by AccorHotels and Mangalis and other international and regional chains, who are upping the ante in the region says Doizelet.

“The market is currently dominated by Accor and the Radisson Hotel Group which continue their development in the region. Other international groups actively looking for new development opportunities in the region, are namely Hyatt, Hilton, Marriott, Kempinski, as well as regional groups including Azalaï, Mangalis and Onomo.”

Considered a regional specialist brand, but with a robust international management team, the Mangalis Hotel Group hopes to become the preeminent brand in the region says its chief executive officer, Olivier Jacquin.

“By 2022, Mangalis will be the regional hotel operating leader with 20 properties in operation and under development offering 2 600 over rooms in the various segments of the industry.” And with such ambitious plans to scale, 2019 is set to be a significant year for the nimble and fast-growing brand as they launch four of their Noon branded hotels in Benin, Niger and Ivory Coast.

With a significant number of brands entering the market, growth at this juncture remains constrained to the midscale pricing bracket, as there remains only a few locations for high-end developments says Doizelet.

“So far, only a handful of destinations in French-speaking Africa are suitable for top end hotel development, such as Ivory Coast or Senegal.”

The major international groups seem to agree with Doizelet’s assessment especially in Senegal – with Radisson Hotel group particularly active in the Dakar market and using the city as a launchpad for regional growth.

As Garnier explains, “Senegal is the number one market for international investors because of its long-term economic stability. We already have two of the country’s leading internationally branded hotels; Radisson Blu Hotel, Dakar Sea Plaza and Radisson Hotel Dakar Diamniadio, however, we now want to introduce the rest of our African brands to Senegal, i.e. Radisson Collection, Radisson RED and Park Inn by Radisson.”

And while competition grows daily in the market, Jacquin believes the scale of the opportunity in the market provides room for all operators.

“There is still room for all of us. The presence of a variety of suppliers gives the international and regional travellers choice of products in a market which is still growing. Mangalis like any other brand has its own DNA and signature, in addition, we are African rooted hotel operator and developer.”

The annual Francoreal Summit for Garnier is a strategic fit for the Radisson Group, especially as they seek to identify strong local partners to match their Africa business plan and introduce new products to the market.

“We plan to present the new Radisson Hotel Group brand architecture, which includes the introduction of two new brands to the African Market; Radisson Collection positioned as the premium lifestyle and affordable luxury and Radisson as the upscale hotel brand.”

Moreover, as the Radisson’s brand continues to expand across the market – this rapid growth is dependent on developing strong local ties which are the foundation of their Africa strategy.

“We have an asset light strategy in Africa, providing our expertise from managing almost 90 hotels and partnering with local developers, making local connections to create successful projects.” This investment light strategy relies on a robust local foundation and partners explains Garnier.

“We are always looking for local partners that have the long-term vision of developing hotels with an international partner like the Radisson Hotel Group, financial muscle to leverage the equity needed to kickstart the project, financial partners to raise the debt to complete the project. However, more importantly, they must have the local connections to navigate the local administration to obtain construction permits and local legalities.”

With more than 150 senior executives from across the region and from South Africa and internationally, providing the platform for delegates to conduct business deals and gather insights is a crucial focus for the FrancoReal Summit says it host, API Events’ Kfir Rusin.

“Francophone Africa is growing in interest for our African and international stakeholders, many of whom have expressed a keen interest in the market across all sectors. From a hospitality perspective, we have Mangalis Hotel Group’s CEO Olivier Jacquin, the Radisson’s Erwan Garnier, Accor Hotels’ Redah Faceh, and Horwath HTL France’s managing partner Philip Doizelet, who are the region’s most active dealmakers and analysts speaking at the Summit.”

Mangalis Hotel Group’s Olivier Jacquin believes the Francoreal Summit will bring the key property stakeholders together. “Such an event is not only the opportunity to showcase the region, but it is also a platform to bring all the key stakeholders together (investors, operators, buyers etc.). So, needless to say, that FrancoReal Summit is very welcomed, especially in Dakar, as one of the fast-moving Francophone Africa capitals.”

To do so, the company will focus on five key areas – Hilton’s Big Five:
• Youth Opportunity: investing in training and apprenticeship programs to build a strong talent pipeline and tackle identified challenges for youth, including underemployment
• Water Stewardship: the expansion of existing partnerships and the creation of new alliances to help Hilton achieve its goal to reduce its water consumption by 50% and activate 20 context-based water projects in at-risk communities by 2030
• Anti-Human Trafficking: the provision of training and auditing to mitigate against human trafficking, alongside engagement with local NGOs to address the social challenges in local communities
• Local Sourcing: the creation of partnerships to build local entrepreneurs’ capacity to deliver high quality and authentic goods and services, and integrate them into Hilton’s supply chain
• Protecting Wildlife: the promotion of responsible wildlife-based tourism, in line with the WTTC Buenos Aires Declaration on Travel & Tourism and Illegal Wildlife Trade

This announcement follows the recent launch of Hilton’s Travel with Purpose 2030 goals to double its investment in social impact and cut its environmental footprint in half across the globe.

Speaking at the Africa Hotel Investment Forum in Nairobi, Chris Nassetta Hilton’s President and CEO said: “Hilton is committed to creating a positive social and environmental impact in every community where we operate. Africa is an incredibly diverse continent, with equally diverse challenges and opportunities — and as we continue to grow in the region, we are focused on doing so in a way that promotes sustainable travel and tourism. Today we are pleased to take our efforts to the next level with an initial commitment of $1 million, which will allow us to invest in and scale up initiatives that build skills among young people, mitigate risks in human trafficking, engage local entrepreneurs across our supply chain, improve water efficiencies and promote responsible wildlife-based tourism.”

“Hilton’s President and CEO’s visit to Africa is timely and sends a strong signal to environmentally conscious investors across the continent. It will set higher standards for future projects in the hospitality industry throughout Africa. Hilton’s growing interest in Africa’s promising and emerging market is a windfall for job creation among youth and will significantly contribute to sustainable economic growth and shared prosperity,” Leila Ndiaye, President & CEO of the Initiative for Global Development.

Hilton’s Big Five will build upon an existing foundation of partnerships and initiatives to deepen the company’s impact and to inspire positive social and environmental change across its value chain.

Hilton’s existing 41 operating hotels in Africa have carried out 460 volunteering projects since 2012 to support their communities and manage their environmental impact. Some examples include:

• Passport to Success soft skills training developed with our global partner, the International Youth Foundation, to build competencies including problem-solving, teamwork and leadership skills. To date, this training has impacted close to 800 young people across Africa
• Partnership with the International Fund for Agriculture Development (IFAD) in Seychelles: Hilton buy from local producers focused on sustainable agriculture and the hotels also created on-property gardens that supplement their supply of fresh produce, and collectively, source over 80% of their vegetables locally
• Soap4Hope in partnership with Diversey, bringing soap recycling to communities in need. Hilton was first to launch Soap4Hope in eight countries: Kenya, Namibia, Seychelles, Cameroon, Equatorial Guinea, Mauritius, Ethiopia and Nigeria. Since 2014, more than 39 tons of soap have been recycled by 14 participating Hilton properties, creating over 7,000 bars of soap per month

With 53 properties in its development pipeline Hilton expects to double its portfolio of hotels on the continent during the next five years, including entering new markets such as Botswana, Ghana, Swaziland, Uganda, Malawi and Rwanda.

“With the number of travellers visiting Kenya growing year-on-year, we are delighted to be opening the first DoubleTree by Hilton property in Nairobi in such a prime location with easy access to corporate offices and tourist attractions,” said Nitin Gupta, general manager of DoubleTree by Hilton Nairobi Hurlingham.

Guests can explore the heart of the capital, as the hotel is ideally located just a few miles away from the Karen Blixen Museum, Giraffe Centre and the David Shedrick Wildlife Trust Elephant Orphanage. Travellers also have easy access to Nairobi’s central and financial districts, including the Nairobi Business Park, corporate houses and NGO centres.

The DoubleTree by Hilton features the Atrium Brasserie, where guests can enjoy breakfast, as well as an a la carte menu and buffet for lunch or dinner. Guests can also unwind in the Piano Lounge with a selection of wines or contemporary cocktails. The hotel offers a 24-hour gymnasium for guest convenience, as well as a swimming pool, which is open from 6am-7pm. The hotel also boasts five meeting rooms capable of hosting up to 250 delegates.

DoubleTree by Hilton Nairobi Hurlingham is the first hotel to open under Hilton’s Africa Growth Initiative. Hilton has committed a total of $50m for the next five years towards the Hilton Africa Growth Initiative to support the continued expansion of its sub-Saharan African portfolio. These funds are intended to support the conversion of around 100 hotels in multiple African markets into Hilton branded properties.