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HOTEL GROUPS IN AFRICA Bullish & optimistic AFRICAN AVIATION Dreaming of open skies FASTJET The airline for everyone ISSUE 129: JULY 2018 www.businesstravellerafrica.co.za
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Contents 26 40 34 35 12 Fastjet It’s been a challenging few years, but since its inception in 2012 low- cost carrier fastjet has still managed to build a presence in five African countries and achieve what many before have tried, but failed at. What will be interesting to see is where it goes from here, as it looks to grow its offering into more African countries. FEATURES REGULARS 12 Hotel Groups in Africa Some of Africa’s biggest economies may 04 Message from the Team 34 Tried and Tested What’s the editor ranting about now? Hotel Check have endured a tough few years, but • The Capital Menlyn Maine that hasn’t stopped the world’s big hotel groups from continuing to bet big on the 06 News Airline, hotel and other travel news Flight Check • Kulula continent and put together impressive development pipelines that ultimately from Africa and beyond 36 Q & A Interviews 10 W Hospitality Column could change the African landscape in • Mmatŝatŝi Ramawela – TBCSA years to come. • Marco Cristofoli – BCD 26 African Aviation It’s taken nearly 20 years, but Africa Managing Director Trevor Ward gives us his take on the West African hotel industry 38 People on the Move does seem a step closer – albeit a small The movers and shakers – one – towards embracing an ‘open 11 ASATA Column what they’re up to now 40 Bite with the Editor skies’ environment, but it’s going to require the continent’s governments to The latest from Chief Executive Officer put their money where their mouths are Otto de Vries Sisa Ntshona – SA Tourism and actually put pen to paper. Visit businesstravellerafrica.co.za JULY2018 | 3
ED’S LETTER U nderstanding the millennial traveller should PUBLISHER Richard Lendrum be a priority for any forward-thinking travel brand or supplier. That’s probably why there is currently a lot of EDITOR research going into getting to know this market Dylan Rogers dylan@thefuture.co.za segment better. Travelport are the latest to release some interesting data regarding millennial travellers and what makes CONTRIBUTORS them tick, specific, on this occasion, to business Kate Kennedy travellers in South Africa. According to the travel technolog y provider, JOURNALIST the country’s millennial business travellers are Kate Kennedy “demanding both cutting-edge digital support throughout their trips and on-demand advice from DESIGN AND LAYOUT human consultants.” Nadette Voogd The research, which surveyed 11,000 travellers in 19 countries who took at least one return flight in the last year, revealed that: SUBSCRIPTIONS AND PRODUCTION - 37% of South Africa’s millennial business Mabel Ramafoko mabel@thefuture.co.za travellers now count being unable to access booking information across their devices 24/7 as one of their biggest gripes SOUTH AFRICAN OFFICE - 3 9% say they get frustrated when companies don’t Postal Address: PO Box 1746, Saxonwold, 2132 use data analytics to provide highly personalized Physical Address: travel recommendations based on their past 247 Jan Smuts Avenue, Randburg preferences Telephone: +27 11 327 6107 - 3 9% say not being able to get expert advice from human consultants during the booking process is NIGERIAN OFFICE a major pain point 3rd Floor, EuniBrown House195, The report also revealed an “escalating thirst for Ikorodu Road, Palmgrove,Lagos, Nigeria ‘bleisure’” – itineraries combining both business and Tel: +234 1 740 3236 leisure. Over half (56%), for example, now regularly Mobile: +234 803 963 0155 extend their business trips by a few days so they can see local attractions. PUBLISHER – NORTH & WEST AFRICA To satisfy their ‘bleisure’ needs, most of South Tope Ogbeni-Awe Africa’s millennial business travellers are now doing tope.ogbeni-awe@topcommng.com their own research before finalizing their travel plans. Among the most common tools used to build EDITORIAL ASSISTANT their perfect itinerary are general travel advice Mohammed Abdullahi sites (used by 89%) and review sites (used by 87%). Looking through videos and photos posted by travel brands on social media (81%) is also typical for South Africa’s millennials, as is using voice search technolog y (54%). If required to book a trip themselves, the majority of millennial business travellers do so online through their desktop or laptop (64%). However, around one quarter say they now book business travel online through their smartphone (21%) or tablet (24%). While on business trips, on average, South African Business Traveller Africa is published under licence from Perry millennial business travellers apparently use 18 Publications Limited. different categories of apps. Of these, map apps are Warwick House, 25 Buckingham Palace Road, London, SW1W 0PP. among the most popular (used by 92%), along with Tel: +44 20 7821 2740 those that provide video tools (91%). There were also www.businesstraveller.com high results for social media (90%), travel review (81%) and destination guide (77%) apps. Makes for interesting reading. Dylan Rogers Follow us on: Editor dylan@thefuture.co.za 4 | JULY2018 Visit businesstravellerafrica.co.za
NEWS Airlink Enhances Hoedspruit Route Airlink has revised and enhanced its Johannesburg-Hoedspruit and Cape Town-Hoedspruit services. Flights will now depart Johannesburg at 13h00 and arrive in Hoedspruit at 14h00 (was 12h50), and depart again from Hoedspruit at 14h30 (was 13h20) to arrive in Johannesburg at 15h30 (was 14h20), Monday to Friday. Flights from Cape Town International Airport will depart at 12h20 (was 11h15) and arrive in Hoedspruit at 14h50 (was 13h45), and depart again from Hoedspruit at 15h20 (was 14h20), arriving in Cape Town at 18h00 (was 17h00). The current flight schedule on Saturdays and Sundays will remain the same, due to Hoedspruit Airport operating hour constraints. The supplementary morning flights BON Announces New commencing in August will depart Johannesburg at 09h50 and arrive in Hoedspruit at 10h50, Monday to Sunday. The flight will depart KZN Hotel Hoedspruit at 11h20 and arrive in Johannesburg at 12h20. BON Hotels has extended its South African footprint into KwaZulu-Natal, with the takeover of the 64 on Gordon Hotel on 1 June. The 35-room More BA Flights to SA boutique hotel in Durban’s Morningside suburb is situated close to the hub of Florida Road – which British Airways will add four more weekly flights to its double-daily has seen a recent revival – is a two-minute drive London-Johannesburg schedule at the end of October using a Boeing from the three major sports stadiums, is close to 787-800 Dreamliner. The airline currently offers 14 weekly A380 flights the Golden Mile and its popular beaches, and is 10 on this route. The flights will depart London Heathrow at 16h20 in the minutes from Durban’s International Convention afternoon, arriving at O.R. Tambo International Airport at 05h40 the Centre. Facilities and services include a restaurant, following morning. The return flight will leave Johannesburg at 07h40, bar and business facilities. The hotel also offers a landing at Heathrow’s Terminal 5 at 17h50. There will also be three conference venue that can accommodate up to 30 additional weekly BA flights from London to Durban in October. delegates. New Properties for Tintswalo Tintswalo Lodges will be opening two new properties in 2018. The Tintswalo brand will also be expanding into a Premier Collection and a Classic Collection. The launch of the The Capital Launches New new Tintswalo Classic Collection will see the opening of Tintswalo at Lapalala Wilderness in Sandton Property the Waterberg (South Africa’s Limpopo province) and Tintswalo at Boulders Manor, a private The Capital Hotels & Apartments has opened The Capital On villa overlooking Boulders Beach on the Cape The Park. The property is situated on Katherine Street, in close Peninsula. The Tintswalo Premier Collection proximity to the Sandton CBD. The Capital is calling it Sandton’s will incorporate existing flagship properties ‘only business resort’, and some of its features are an infinity pool, Tintswalo Atlantic in Cape Town and Tintswalo sun deck, spa, signature outdoor champagne bar, and restaurant. Safari Lodge and Tintswalo Manor House in the The property offers 175 standard rooms, five studio apartments Manyeleti Game Reserve. Tintswalo at Boulders and 125 one and two-bedroom apartments. It also has a large Manor will open in Cape Town on 1 September. conference centre that seats 500 delegates, a 24/7 on-the-go deli, Sleeping up to 14 guests in seven rooms, Boulders and a g ym with its own personal trainer and specialised fitness Manor will operate on a bed and breakfast basis, classes. or as a private villa. 6 | JULY2018 For more news, visit businesstravellerafrica.co.za
Corporate Traveller Expands Corporate Travel Programmes Corporate Traveller, a division of the Flight Centre Travel Group, has expanded its SmartSTAY and SmartDRIVE corporate travel programmes. Both initiatives reward business travellers with a number of The Bull Run to be exclusive benefits and value add-ons when booking with various properties Revamped and car hire companies within the TravelSmart range. A few of these The Bull Run restaurant, located adjacent to the perks include early check-in, free Protea Hotel by Marriott Johannesburg Balalaika room upgrades and laundry service, Sandton on Maude Street, is undergoing a full complimentary wi-fi and breakfast, revamp worth R12 million ($964,000), to increase parking, unlimited mileage, a free capacity and create an ‘international’ feel, as well additional driver feature with car hire, and bonus loyalty points. There as attract new patrons and provide a change of are about 3,000 properties in the SmartSTAY programme, including scenery for regulars. Over 18 years of trading the IHG, Accor, and Hilton. The Radisson Red Hotel in Cape Town is the restaurant has only undergone minor, essential latest hotel to join the SmartSTAY portfolio. Ready Service is the latest changes to maintain the property and create feature from SmartDRIVE, which offers a choice of unlimited mileage a more spacious entrance. For renovations to options, insurance access waivers, guaranteed availability, and the take place, the Bull Run has closed its doors for free additional driver feature available in various car hire groups with trading and is set to re-open in July. Europcar. Fastjet Increases Harare–Vic Falls Flights Fastjet increased its flights between Harare and Victoria Falls with two additional frequencies from 2 July. The airline now serves the route with a twice-daily frequency, six days a week, with the only exception on Saturdays where the schedule remains unchanged with one flight. The Business Travel Club is giving away a 2-night midweek WIN! stay for two adults sharing at Turbine Boutique Hotel in Knysna valued at R7,500 For competition details and to enter, go to our Facebook page: @BusinessTravelClubAfrica Visit businesstravellerafrica.co.za JULY2018 | 7
NEWS Total Technical Support for Comair South Africa’s Comair Limited and Lufthansa Technik have signed a comprehensive long- term Total Technical Support contract with Lufthansa Technik providing engineering, planning, line maintenance and component support for Comair’s future Boeing 737 MA X 8 fleet. The services will commence in January 2019, when Comair, as part of its fleet renewal programme, will take delivery of the first two of eight 737 MA X 8 aircraft on order. As part of the TTS, Lufthansa Technik supports Comair with a Technical Operations Management, integrating all MRO activities contracted in the agreement into Turkish Adds Moroni to Network Turkish Airlines is now flying three times a week from Istanbul to Moroni, the a comprehensive service package. capital of the Comoros Union. Moroni becomes the 304 th destination served by Comair’s in-house engineering Turkish Airlines. Flight TK 748 will depart Istanbul at 01h40 and arrive in the and fleet department will continue Comoros at 13h30. Return flight TK 748 will depart the Comoros at 16h40 and to oversee all maintenance, repair arrive in Istanbul at 04h10 the next day. Both flights are scheduled for Mondays, and overhaul services. Wednesdays and Saturdays. Air Namibia Commences Flights to West Africa Air Namibia has launched the Windhoek-Lagos- Accra route, providing a direct connection between Namibia and West Africa. The service will operate four times a week (Sunday, Monday, Wednesday and Friday). The routing will be Windhoek-Lagos-Accra, and the return will be Accra-Lagos-Windhoek. Air Namibia will service this new route with the Airbus A319, offering a seat configuration of 16 business class and 96 economy class seats. IHG’s New Brand The InterContinental Hotels Group has launched voco, its new upscale hotel brand. It will focus primarily on conversion opportunities, working with high-quality individual and locally- branded hotels and leveraging IHG’s systems. This includes the group’s revenue management and technolog y capabilities, and IHG Rewards Club. Voco, inspired by the meaning ‘to invite’ or to ‘come together’ in Latin, will combine the informality and charm of an individual hotel with the quality and reassurance of a global brand. The roll-out of voco will begin in IHG’s Europe, Middle East, Asia and Africa region, with plans to take it to the Americas and Greater China over time. IHG expects to open more than 200 voco hotels in attractive urban and leisure locations over the next 10 years. 8 | JULY2018 For more news, visit businesstravellerafrica.co.za
Travelport Signs Agreement with Qantas Travelport has signed a multi-year agreement with Qantas Airways that includes distribution of the Australian national carrier’s content and integration into Qantas’ recently announced NDC platform, the Qantas Distribution Platform. Lufthansa Upgrades IFE Travelport’s Rich Content and Branding merchandising solution has been deployed, Lufthansa has upgraded and expanded its in-flight entertainment programme on long-haul flights. Now passengers have a choice of giving over 65,000 Travelport-connected travel around 180 films in all travel classes – an increase of around 30%. agencies globally access to images of cabins The ‘Holly wood Recent Hits’ category allows travellers to choose and meals. These agents will also be able to from numerous successful Holly wood films from the past 12 to 24 book ancillaries such as extra legroom seating. months. There are also more than 270 T V productions to choose Travelport is the first operator of a global from. For families, there are 22 films suitable for children and 31 distribution system to be granted the highest T V programmes. certification by IATA for its New Distribution Capability airline distribution technolog y. Radisson Moves into Zambia Radisson Hotels is adding a new territory to its portfolio with the signing of the Park Inn by Radisson Lusaka Longacres in Zambia. Radisson’s African portfolio consists of 83 hotels and more than 17,500 rooms in operation and under development. Located in the Longacres suburb of Lusaka, the hotel will be situated in a prime location within the city’s concentration of embassies, diplomatic missions and United Nations offices. It will form part of a mixed-use development, which will include a 9,000m 2 shopping mall. The 136-room Park Inn by Radisson Lusaka Longacres is expected to open in 2020 and will offer a mixture of standard rooms and suites, along with an all-day dining restaurant and bar. The meetings and events area will include one ballroom, three meeting rooms and a boardroom. The hotel will also house a well-equipped g ym. KLM & Kulula Codeshare KLM Royal Dutch Airlines and the South African airline kulula.com have signed a codeshare agreement to expand the airlines’ respective networks. KLM will add its ‘KL’ code to kulula.com’s domestic route network, enabling KLM’s passengers connecting in Johannesburg and Cape Town to continue with a single ticket issue and a one-stop check-in and baggage transfer to East London, Cape Town, Durban and George from Johannesburg, and Durban from Cape Town. AVANI Maseru Re-opens AVANI Maseru Hotel in Lesotho has opened its doors after an FlySafair Partners with extensive $2 million (R25 million) renovation that included a refurbishment of all 105 hotel rooms, the hotel’s water supply and Flight Centre reticulation, public areas and restaurant. The project was finished South African low-cost carrier FlySafair has entered in six months. Each of the hotel’s rooms and suites were upgraded, into a strategic partnership with the Flight Centre including a complete redesign of the bathrooms and vanities, and Travel Group, providing the group’s agents with each room has new sliding doors. The hotel has upgraded its digital greater access to the airline’s inventory. Through offering, including adding digital telephones, and has expanded its the mutually-beneficial partnership, Flight Centre wi-fi offering. The hotel’s conferencing venue was also refurbished agents can now pass the benefits of the airline with new carpets and ceilings. product on to their clients. For more news, visit businesstravellerafrica.co.za JULY2018 | 9
COMMENT An Eye on West Africa I Trevor Ward have lived on the west coast for over 15 years spread along the north shore of the lagoon, which is MD: W Hospitality now. Sure, I haven’t been every where yet, but maybe 300 to 400 metres wide, looking across to the Group having been to resorts in several countries, from peninsula, itself about 125 metres wide, and then to Senegal all the way round to Cameroon and beyond, the Atlantic Ocean. I thought I pretty much got the gist – some lovely I’m not one for the traditional beach-sea-horizon- sandy beaches, such as those in Sierra Leone and sky view, but this lagoon view is, to me, absolutely The Gambia, and tons of culture and history such fantastic. as that in Ghana (including a traditional drumming You can hear the ocean from here, you can swim school!) and Nigeria, that kind of thing. But nothing in the lagoon (it’s not recommended to swim in the prepared me for the beauty of the Atlantic coastline ocean, too dangerous) and all sorts of water sports: in eastern Côte d’Ivoire – or at least one piece of it. speedboats, canoes, water-skiing and more. The I was heading for Assinie-Mafia, which is about palm trees across the water, a glimpse of the ocean if 90 minutes’ drive from Abidjan airport. The arrivals you’re high enough up (the peninsula is pretty flat), hall there is rather civilised, with a book store, easy the sound of the surf, and the tinkle of the ice in currency exchange, a bar and even a Burger King. your gin and tonic – just perfect! Any way, I head out of the airport, and instead of The main hotels on the lagoon are the African travelling north into the city, I head east, along the Queen Lodge, the Coucoué Lodge and Les Marines Abidjan beach front. That looked nice enough, if a de Babihana. The Coucoué has a massive store little windswept, but my first stop was to be Grand- of speedboats, jet skis and quad bikes, and both Bassam. Sadly, the town has a tragic history, after a Coucoué and Marines have restaurants over the terrorist attack in 2016 left 16 tourists and soldiers water. These hotels are okay, but nothing special, dead. That was over two years ago, and whilst the although I was impressed with a suite I saw at the dead and injured are not forgotten, life goes on, Marines, with a glazed bathroom looking out into a and the tourists have returned, although fewer than tiny private garden. before. What is special in Assinie-Mafia is the new kid The old quarter of Grand-Bassam is a UNESCO on the block, the Maison d’Akoula, a truly beautiful World Heritage site, because of its history as a major palace, created by Mme Akoula Amon Chauvin- city and port, but today it’s really rather faded. Buthaud, the propriétaire, who designed everything Wikivoyage says the town is “Filled to the brim with herself. It is a labour of love, and has just eight French colonial charm”, but I prefer Lonely Planet’s rooms, four on the ‘mainland’ and four on the “Arty and bathed in faded glory”. Lots of interesting- peninsula, the latter accessed only by boat (a two- looking, but pretty decrepit buildings. Even the minute ride). What rooms! They’re enormous, with acclaimed ceramics factory was, well, decrepit. beautiful furnishings and décor, either on the water The leading hotel in Grand-Bassam is the Hotel or in the beautiful gardens, privacy and exclusivity L’Etoile du Sud, on the beach, a small beach with assured. angry-looking surf. The rooms are nice enough, but Most of the guests for the resorts in Assinie-Mafia the balconies which form the entrance to the rooms are residents of Abidjan, leisure at the weekend and, are in poor condition, and I was less than impressed. for those with meetings facilities, conference groups The Afrikland Hotel is one of the most sterile I have during the week. They don’t get much demand from ever come across (and empty), whilst the Nsa Hotel other countries in the region, but then you didn’t is just awful. So I came away from Grand-Bassam know such a place existed, did you? Neither did I very disappointed, wondering what it might have before a couple of weeks ago. Perhaps I shouldn’t been like when it was a real hotspot on the West have told you about Assinie-Mafia, but then the African coast. accommodation stock is not huge, and it’s not going Next stop was my real destination, Assine-Mafia, to be overrun any time soon. Before the troubles about another 30 minutes’ drive east of Grand- hit the country, there was both a Club Med and a Bassam. The road from Grand-Bassam goes a bit Valtur village at Assinie-Mafia, on the peninsula, inland to the north, and then plunges south to but they’ve been closed for a long time now, and Assouindé, where there are numerous little surf their type of mass tourism would (in my opinion) be clubs including Kame Surf – I swear the list of inappropriate in the resort today. cocktails in their bar is the longest in Africa. Head It ’s a real treat, is Assinie-Mafia, I loved the east along the coast and there’s Assinie-Mafia, peace and quiet – not to mention the prawns and spread out along the coast, with several resorts and the G&T! C private villas. Turn into one of them, and there in front of you is (finally!) the reason for my use of www.w-hospitalitygroup.com superlatives – the Assinie Lagoon. The resort is 10 | JULY2018 Visit businesstravellerafrica.co.za
COMMENT Save the planet S easoned road warriors know how to navigate airport security effortlessly and get the most out of their frequent flyer miles. However, when it comes to saving the planet while travelling, many of us still have a lot to learn. Business travel can be a burden not just to jet- lagged business travellers, but to the environment as well. Each trip generates CO2 and can swiftly ramp up a company’s carbon footprint. By applying some basic environmentally-friendly principles, business travellers can reduce, reuse and recycle while travelling. Among the measures you and your company can adopt to become more Environmentally-friendly is ensuring you position sustainability as a central component of the travel policy and identify carbon- offsetting travel suppliers. Identify Environmentally-friendly hotels which are actively taking steps to reduce their carbon footprint by using flow-restrictive shower heads, low-flow toilets and linen programmes that reduce waste. A further measure would be to consider hotels that are strategically located to attend the meetings and conferences at your destination. This will allow your company to avoid additional transport costs in- destination as well as have a positive impact on the environment. When it comes to flights – which are by far the biggest corporate travel carbon culprit – consider smarter air choices such as non-stop flights without layovers or pack light to reduce the weight of the plane as much as possible. Technolog y is making it even easier to fly green. Electronic travel documents and mobile boarding passes are just a few examples to avoid printing out travel paperwork. Another fun way to be more environmentally- friendly is to add a few days of bleisure onto your corporate trip. Not only will this help you take the stress out of your business trip, it’s also a great way to reduce your carbon footprint by taking one trip instead of two separate trips for business and leisure. Although travel will always have an impact on the environment, travel buyers and travellers can make a difference by adopting a few simple more sustainable business travel practices. Work with your ASATA travel management company to identify some of the ways in which you could together help to curb your carbon footprint. C Otto de Vries ASATA CEO Visit businesstravellerafrica.co.za JULY2018 | 11
FEATURE – HOTEL GROUPS IN AFRICA Bullish and optimistic The world’s big hotel groups still see Africa as relatively untapped and under-supplied, and they continue to put together development pipelines that look impressive on paper, but require a greater conversion rate to make a material impact on the African hotel landscape in the short-term. 12 | JULY2018 Visit businesstravellerafrica.co.za
I t’s been a difficult few years for some of Africa’s biggest economies, but that hasn’t stopped the world’s big hotel groups from continuing to bet big on the continent, as they continue to see value in what it has to offer. It’s obvious that these groups are taking a long-term view on Africa, and they are happy to ride the tough times and see their – and their partners’ – investments through, provided they find the right deals and commercial models to ensure a decent return. Before we take a look at who has made the biggest moves in the past year, in terms of hotel development and the signing of deals, it’s worth reviewing the performance of the African hotel sector in the same period, to get a sense of the type of base the industry is working off. In this regard, HTI Consulting always provides an interesting snapshot, and its review of 2017 had some thought-provoking findings, particularly in terms of some of the African continent’s hotspots. For this report, HTI provided a brief summary of the top and bottom five performers across 14 African cities for 2017, as indicated by STR Global. Occupancy rates, average daily rates, rooms sold and future supply were all taken into account, but our focus, for now, will be on the occupancies achieved by these markets. For starters, the report said that: “Both upward and downward trends were noticeable across the continent in 2017, with more positive conditions in West Africa as oil economies geared up in response to a recovering oil price. Political instability in several East African countries served to dampen those markets in the area, albeit on a temporary basis.” The report, authored by HTI Consulting’s CEO Wayne Troughton, starts with a look at occupancy growth and picks out Lagos and Accra as the lead performers of the 14 African cities assessed. “This, as gradual economic recovery in the countries of Nigeria and Ghana saw both Hilton Garden Inn Umhlanga Arch these cities benefit from increased Visit businesstravellerafrica.co.za JULY2018 | 13
FEATURE – HOTEL GROUPS IN AFRICA investor uncertainty in new government policy, limiting business travel to the city,” said the report. “Additionally, direct flights to key tourism destinations reduced leisure demand in Dar es Salaam.” There were also lower occupancies in Addis Ababa (Ethiopia) and Gaborone (Botswana). “Although supply increased in these cities, demand declined due to political unrest (Addis Ababa) and economic challenges driven by mining (Botswana),” said HTI. BIG PIPELINES Accra Marriott Hotel That, at least, provides some sort of base to work off, although it’s unlikely to have any effect on the big international groups who have extensive development pipelines, some with fairly lengthy lead times. “Investing in the hotel industry in Africa is a long- term play and like the rest of the world Africa also works in economic cycles,” says Andrew McLachlan, The Radisson Hotel Group’s Senior Vice-President, Business Development, Africa and Indian Ocean. “However, due to imbalance in supply and demand in many African markets we are still experiencing RevPAR growth, even though some of the bigger economies have slowed down.” W Hospitality Group specialises in the provision of advisory services to the hotel, tourism and Radisson Hotel, Dakar Diamniadio leisure industries, and among the range of services it provides its clients with is its annual ‘Hotel Chain Development Pipelines business demand,” said the Kenya’s Nairobi, which was the in Africa’ report, which looks at report. “Growth in Lagos came weakest of the cities assessed, the development activity of the off a low base, however, and, in with a decline in occupancy branded groups. light of more positive economic of 11.1%. Here, according to The 2018 version makes for projections, should see future HTI, new supply (an additional interesting reading. occupancy rates boosted to former 478 rooms, of which 334 were According to W Hospitality, highs. Strong growth in Accra internationally branded - Four Marriott International tops propelled occupancy rates to a Points by Sheraton, Park Inn by this year’s list for the most healthy level just above 60%. Radisson), coupled with a decline planned new hotel rooms under Other markets showing moderate in demand due to the violence construction in Africa. The group growth included the cities of surrounding the August 2017 currently has a development Pretoria, Durban and Windhoek, elections, substantially reduced pipeline of 93 new hotels whilst Namibia’s economy accommodation demand. comprising 17,708 rooms in revealed signs of recovery after Dar es Salaam (Tanzania) Africa, and almost 50% of those poor economic growth in 2016.” followed Nairobi with a decline in rooms – 8,587 – are already under So, that was the good. occupancy of 9%. construction. The bad was in the form of “This was driven largely by “Africa makes for a very 14 | JULY2018 Visit businesstravellerafrica.co.za
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FEATURE – HOTEL GROUPS IN AFRICA compelling story,” said Alex Hospitality report, with 6,352 moving, we ultimately remove it Kyriakidis, Marriott’s President rooms under construction and 54 from the pipeline. It’s important to & Managing Director Middle hotels in its pipeline. retain your credibility. Ultimately, East & Africa, speaking late last “We’ve got a very credible five to eight percent of a pipeline year. “We have always believed in pipeline and the deals in there are is inactive at any stage, but there the potential of Africa and were formally signed deals, whether I don’t think we’re any different the first global chain to make a that’s a management agreement from our competitors.” significant investment in Africa or a franchise agreement,” says Like Kyriakidis and Marriott, with the acquisition of Protea Mike Collini, Hilton’s Vice- Hilton are clear about the Hotels in 2014. This was further President Development, sub- opportunity that Africa still consolidated with the acquisition Saharan Africa. “We don’t include presents. of Starwood Hotels. With letters of understanding or agreed “We remain extremely bullish economic growth, a rising middle terms. We want credibility and on hotel growth and development class and rapid urbanisation, we recognise that some projects in Africa,” says Collini. “We the demand for travel and high- fall foul of funding or funding absolutely see the need and quality lodging is growing.” takes longer than expected, or believe we have the right brands Marriott’s most recent openings planning permits come in. But, to meet that growing need.” in 2018 include the Sheraton if something is stuck and isn’t The Radisson Hotel Group is Bamako Hotel, which marked the third with 4,840 rooms currently group’s entry into Mali in West being built and an overall pipeline Hilton Garden Inn M babane Africa, and the long-awaited Accra of 39 hotels. Marriott Hotel in Ghana, which is “It continues to be one of strategically located in the heart of the fastest-growing and most Airport City and opposite Kotoka vibrant sectors of the continent’s International Airport. It has 208 economy,” says McLachlan. “Even rooms, three dining venues, 800 with challenges like drops in square metres of meeting space, a oil prices, visa regulations and pool and a fully-equipped fitness slowdown in global economies, centre. the hotel sector has significant “Accra is the heartbeat of potential to create jobs and uplift Ghana, a dynamic city bustling inclusive economic growth across with energ y,” says Kyriakidis. “A the continent.” commercial, manufacturing, and “We have identified 12 hotspots communications centre with great (tier one cities) which we strongly shopping and excellent nightlife, believe we can great scale (five- it makes an interesting travel plus hotels per city) across at least destination both for business and four of our five brands in Africa. for leisure.” Our hotspots in are Cape Town, Hilton Hotels & Resorts Johannesburg, Durban, Mauritius, is ranked second on the W Dar es Salaam, Nairobi, Addis Ababa, Lagos, Abuja, Accra, Abidjan and Dakar.” According to W Hospitality, most of fourth-placed AccorHotel’s deals are fairly new, signed in 2016 and 2017, and therefore “it is not surprising that only 36% of rooms in its pipeline are under construction.” In total, Accor has 37 hotels in its development pipeline, totalling 10,059 rooms. Louvre (16 hotels and 2,414 rooms) and Meliã (six hotels and 1,935 rooms) round off the top six, but significantly, both have all their pipeline rooms under construction. Similarly, seventh-placed Best Western (17 hotels and 1,697 rooms) has just over 91% of its pipeline rooms onsite. Hyatt International, Four Points by Sheraton Nairobi Airport Moevenpick Hotels & Resorts, and 16 | JULY2018 Visit businesstravellerafrica.co.za
FEATURE – HOTEL GROUPS IN AFRICA HOTEL CHAIN DEVELOPMENT PIPELINES IN AFRICA 2018 TOP 10 CHAINS BY PIPELINE STATUS ROOMS ONSITE RANK COMPANY HOTELS TOTAL CONSTRUCTION 1 Marriott International 93 17,708 8,587 48.5% 2 Hilton 54 11,528 6,352 55.1% 3 Radisson Hotel Group 39 7,868 4,840 61.5% 4 AccorHotels 37 10,059 3,648 36.3% 5 Louvre Hotels Group 16 2,414 2,414 100.0% 6 Meliã Hotels International 6 1,935 1,935 100.0% 7 Best Western Hotels & Resorts 17 1,697 1,552 91.5% 8 Hyatt International 9 1,768 1,188 67.2% 9 Mövenpick Hotels & Resorts 7 1,535 1,075 70.0% 10 InterContinental Hotels Group 9 1,891 856 45.3% T he Michelangelo Towers HOTEL CHAIN DEVELOPMENT PIPELINES IN AFRICA 2018 TOP 10 BRANDS BY PIPELINE STATUS ROOMS ONSITE RANK COMPANY BRANDS HOTELS TOTAL CONSTRUCTION 1 Radisson Hotel Group Radisson Blu 24 5,318 3,322 68.6% 2 Hilton Hilton 24 6,687 3,014 45.1% 3 Marriott International Marriott 16 3,438 2,368 68.9% 4 Meliá Hotels & Resorts Meliá Hotels & Resorts 6 1,935 1,935 100.0% 5 Hilton Hilton Garden Inn 17 2,818 1,774 63.0% 6 Louvre Hotels Group Golden Tulip 9 1,662 1,662 100.0% 7 Hilton DoubleTree by Hilton 9 1,517 1,305 86.0% 8 AccorHotels Fairmont 8 2,977 1,124 37.8% 9 Mövenpick Hotels & Resorts Mövenpick 7 1,535 1,075 70.0% 10 Marriott International JW Marriott 6 1,645 1,038 63.1% InterContinental Hotels Group Obviously, both these “Swiss International is under complete the top 10. developments could have an discussion for additional hotel An interesting development impact on Accor’s future pipeline, developments in Ethiopia, Ghana, in April saw Accor announce a particularly in Africa. Kenya, Mozambique, Nigeria, strategic partnership with the If one looks at an international Rwanda, South Africa, Uganda, South Africa-based Mantis Group, group that doesn’t feature in W Zambia and Zimbabwe,” says CEO whereby Accor acquired a 50% Hospitality’s top 10, it’s clear & President Henri Kennedie. stake in the group that consists that there is plenty of additional No surprise, then, that Swiss of 28 managed properties, plus activity out there, as well. International are another group a global network of branded Swiss International Hotels & that are happy to bet big on the hotels and residences. Even more Resorts currently has 30 hotels in future of Africa. recently, Accor announced that a pipeline that spreads over Africa, “Although several countries it had signed an agreement with Middle East and India, and in that in Africa have suffered severe Moevenpick Holding and Kingdom pipeline are eight newly-developed economic challenges in the Holding to acquire Moevenpick hotels the group plans to open in past couple of years, there are Hotels & Resorts. Moevenpick Africa by the end of 2019. still encouraging signs that currently operates in 27 countries They include three properties businesses - mainly the hospitality with 84 hotels (more than 20,000 in Kenya, four in Nigeria, and industry – are turning a corner,” rooms) and has a particularly one in Uganda, across its Swiss says Kennedie. “The hospitality strong presence in Europe and the International, Royal Swiss and business and its growth have been Middle East. Swiss Spirit Hotel & Suites brands. influenced by the expansion of 18 | JULY2018 Visit businesstravellerafrica.co.za
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FEATURE – HOTEL GROUPS IN AFRICA Radisson Blu Hotel & Convention Centre, Kigali major international companies 2018! It would not, therefore, be into Africa, the improving safety amiss of us to suggest that there is and security factors which once a degree of over-optimism on the “ The overall pipeline for crippled growth in Africa, the increase in public spending mainly part of the chains regarding their expansion plans.” hotel chains in Africa looks from the fast-growing middle Worth noting. healthy for the future. ” class, the reliable and perfect climate, and Africa’s extensive INDIVIDUAL BRANDS natural landscapes, resources and If one looks at individual untouched environment.” brands and refers back to the W cities, airport resorts and safari That’s another impressive Hospitality report, it’s interesting lodges,” says Collini. “Throughout pipeline, furthering bolstering the to see that Radisson Blu has the the next five years, we hope to number of hotels planned for the largest number of rooms under be able to secure 100 conversion African continent over the next construction – beating the Hilton opportunities (managed and few years. brand by over 300 rooms. franchised) with some 15-20,000 “The overall pipeline for hotel “The majority of our portfolio is rooms to significantly grow our chains in Africa looks healthy for Radisson Blu – it’s our core brand footprint across many countries in the future,” says the W Hospitality and the brand we always bring Africa.” report. “Notably, Mangalis, a new to market first,” says McLachlan. With regards Hilton Garden Inn, hotel brand launched in 2011, “As we continue to develop, I Hilton now has 17 properties in has already managed to build a expect to increase the number of its pipeline and expects to open significant pipeline, with 1,746 Park Inn by Radisson properties hotels under this brand in Lusaka rooms in 14 hotels, growing the in countries like South Africa and (Zambia), Gaborone (Botswana) existing portfolio of 425 rooms Nigeria, where I can create scale and Mbabane (Swaziland) this in three hotels by more than four within the country.” year alone. times. Currently, five of the 14 Hilton has two other brands “With all our brands, I think hotels in the pipeline are under in the top 10 - Hilton Garden Hilton Garden Inn is going to construction.” Inn and DoubleTree by Hilton – grow to be the biggest over time,” But there is also a word of boosted by the chain’s $50 million says Collini. “When I identified caution from W Hospitality’s Hilton Africa Growth Initiative, 200 strategic targets across sub- Managing Director, Trevor Ward. which was unveiled at the Africa Saharan Africa, almost a hundred “Of the total 76,322 rooms Hotel Investment Forum in Kigali, of those were with Hilton Garden in the African pipeline, almost Rwanda late last year. Inn. The reason for that is that 34,000 rooms are said by the “HAGI is intended to support it’s a highly effective and cost- chains to have scheduled openings the conversion of existing trading efficient model. It’s cost-efficient this year and in 2019,” he says. hotels into Hilton’s system, and to build and very efficient to “The reality on ground, however, we expect these funds to create operate. In terms of cost-per-key, is that 4,000 of those rooms were conversion opportunities primarily it’s almost half of that of a Hilton- not even under construction as for our Hilton, DoubleTree by branded property. You have to go at the time of our data collection Hilton, and Curio brands in with what the market dictates, and – which was the first quarter of multiple markets, including key most of these markets are showing 20 | JULY2018 Visit businesstravellerafrica.co.za
Travel means dreaming of what comes next. Milestones are set beside the road not to commemorate how far you have come, but to mark the distance to the destination ahead. At Preferred Hotels & Resorts, we are proud to celebrate five decades of travel and hospitality. It is a landmark that comes amid great change in how, where, and why we travel. Thank you for taking this journey with us. C A P E ROYA L E L U X U RY HOT EL & R ESIDENCE Cape Town, Wester n Cape, South Af r ica SA ROVA S TA N L E Y Nairobi, Kenya © 2018 Preferred Hotels & Resorts 18_231 HOT EL SE A CLIFF Dar es Salaam, Tanzania P R E F E R R E D H O T E L S . C O M
FEATURE – HOTEL GROUPS IN AFRICA the debt on new hotel projects.” Sure, there isn’t an African group or brand in the top 10 of W Hospitality’s report, but the likes of South Africa’s City Lodge have been quietly venturing out of their shells and have started spreading their wings, albeit slowly and cautiously. Currently, the group is putting the finishing touches to its 171- room City Lodge Hotel at Two Rivers Mall in Nairobi. The hotel opened its first phase at the beginning of this year and City Lodge says it should be fully operational by August/September. City Lodge Hotel at Two Rivers Mall The 149-room City Lodge Hotel Dar es Salaam (Tanzania) is expected to be operational by September/October. Similarly, the 148-room City Lodge Hotel Maputo (Mozambique) is also expected to be operational by September/October. “They are seen as part of a selected expansion drive to provide quality and affordable accommodation in parts of East and Southern Africa for mainly business (but also leisure) travellers,” says Angus Macmillan, City Lodge spokesperson. City Lodge believes it is nicely- positioned for growth, thanks to its diverse offering of four distinct brands: Road Lodge (one-star), Town Lodge (two-star), City Lodge (three-star), and Courtyard (four-star). BON Hotel Abuja “Our current focus is very much on the three-star brand, but we do see some opportunity for our other brands,” says Macmillan. that Hilton Garden Inn is the right those international pipelines. “We already have a Town Lodge in brand – the most profitable and “It’s encouraging to see the Windhoek and one in Gaborone. the one with the best returns.” interest in Africa by most of the In some countries there is really The rest of the brands top 10 international groups, as this is only opportunity in the capital is made up of Marriott (Marriott the next logical destination after city, but this is subject to land and JW Marriott), Meliã Hotels Asia and will make sense for the and building costs etc. Very few & Resorts, Louvre’s Golden Tulip brands to develop their footprint African countries offer viable brand, Accor’s Fairmont brand, on the continent to service the development opportunities outside and Moevenpick of Moevenpick loyalty programmes,” says Andrew of their capital cities – Kenya Hotels & Resorts. Rogers, aha Hotels & Lodges being one of the few. Having a Business Development Executive. one-to-four-star brand portfolio, AFRICAN GROUPS “It would be most interesting to we are able to look for suitable If one looks at the W Hospitality see the brands invest their own opportunities, even if these are report, Africa’s big hotel groups are monies into the continent, as limited.” lagging behind their international opposed to simply seeing them City Lodge may be looking at counterparts, but that doesn’t mean advance fees in the form of key East and Southern Africa, but they are inactive. monies and also see them start to BON Hotels sees the opportunity Also, a word of caution – or, at take an equity stake in projects, so in West Africa. least, a different perspective on as to assist with developers raising BON Hotels is a South African 22 | JULY2018 Visit businesstravellerafrica.co.za
hospitality company that owns, and from abroad. place at the three, four and five- manages and markets hotels The group has identified and is star international service standard throughout Africa, and it has focusing on building a triangular hotels, which has most definitely grown its Nigerian presence with city circuit incorporating trade, broadened our expansion into the more recent acquisition of 11 city and northern routes that will other regions of Nigeria.” additional properties. In doing so, effectively tie up the trade routes Stehlik also has a view on it has increased its portfolio in for West Africa running through property developers in Africa who West Africa to 25 hotels (although, Nigeria. embark on hotel projects without currently, only seven are open) The circuits include: Lagos- finding the right partner and across 14 cities and become Abuja-Port Harcourt; Owerri– doing sufficient research. Nigeria’s largest and fastest- Onitswa–Asaba–Awka-Enugu; “I’ve experienced it time and growing hotel group. Asaba–Orca-Enugu; and Abuja– time again – desperate property The group has also unveiled a Kano–Kaduna–Zaria–Yola. developers reaching out to us after revamped BON Hotel Abuja, with “There has been a total under- the hallmark DIY steps have been the completion of phases 1 and 2 supply of international operators exhausted on their hotel project,” that included a refurbishment and trading in Nigeria, due to security he says. “Two or three trips to redecoration of the existing rooms issues, trading difficulties, lack China’s ‘one-stop hotel design’ and bathrooms, an upgrade and of knowledge and understanding shops later, without taking any revamp of all the public areas, and of the local environment,” says cognisance of developing a hotel the addition of a swimming pool, Bernard Cassar, Director of BON with the markets it will serve in a g ym and a coffee lounge. Hotels International West Africa. mind, and a few too many plunges With 14 new hotel projects “Previously, the bigger hotel into his own capital, funds have underway and a further 11 being players entered the market with dried up – 30% into the project signed, BON Hotels is on track five-star offerings at a high and the dream has become a to tie up the trade routes linking price,” says Guy Stehlik, CEO of nightmare.” Nigeria, making life a whole lot BON Hotels. “BON is bringing According to Stehlik, the most easier for commuters both local affordability back into the market common errors occur at the offset Pack your bags and head for the summer sun Longing for an ocean swim, some family fun in the pool or to discover a buzzing metropolis? With 80+ hotels we can take you anywhere to make your travel dreams come true and save you 30% Book now at movenpick.com/summer Book before 15th August 2018 for stays from 20th May - 31st of August 2018. Two nights minimum stay applies and a minimum of 5 days booking in advance. Offer subject to availability at partici- pating Mövenpick Hotels & Resorts. Full terms and conditions at movenpick.com/ sunrise Book summer-conditions *All stays booked online at movenpick.com earn an extra $20 voucher to spend at restaurant out- lets in your booked hotel. Terms and conditions apply – see movenpick.com/en/us20voucher Online and earn a $2ch0er* Vou movenpick.com Visit businesstravellerafrica.co.za JULY2018 | 23
FEATURE – HOTEL GROUPS IN AFRICA across the continent. They include Johannesburg Marriott Hotel Melrose Arch the Kafue River Cliff Hotel & Conference Centre in Zambia, an airport hotel in Lusaka, and the Gondar Hills Resort in Ethiopia. “The growth in Zambia is following our strateg y to ideally have a presence or beachhead in major/gateway cities and then try and develop a circuit in the rest of the country,” says Rogers. “We are following mainly a tourism-driven routing into East Africa and SADC countries, where we can create demand for smaller cities and lodge-type opportunities. Ideally, we wish to be located near major routes, and together with airport mixed-use developments, allow our guests to have ease of access, various alternative offerings, and be closer to their places of work.” Slightly less active is Legacy T he Maslow Time Square Hotels & Resorts, which now has a portfolio of properties across South Africa, Namibia, Zimbabwe, Nigeria, Gabon and Ghana. In terms of development, it has plans for a 60-room hotel on the Sabi River adjacent to Kruger Park in South Africa. Phase 1 of the development is nearing completion and the next phase will be an upmarket luxury hotel on Elephant Point. Project finalisation is in progress and the projected opening date is 2020. However, Legacy’s big project is its Leonardo development in the heart of Sandton, Johannesburg’s business district. “That’s in progress and rising upwards rapidly,” says Legacy Hotels Managing Director Paddy Brearley. “This is a luxury mixed- use development with shops, a of the design and architectural from what could have been very swimming pool, restaurant and a planning of the hotel. successful hotel developments, 2,880-metre penthouse for a mere “A common mistake, and one because they did not see viable R250-million ($18m) asking price that I’ve seen frequently when solutions to the project, “other – urban lifestyle at its best!” considering projects in Africa, than demolishing the entire Brearley also has strong views is poor planning of space,” says building at whatever stage we on the growing presence on the Stehlik. “Food and beverage found it and starting again – we African continent of the world’s is often a critical victim. Pool have left owners dumb-founded big international hotel groups. bars, roof bars, restaurants and desperate and elected to walk “Africa needs growth in their for breakfast, restaurants for away. We’ve seen some of the best economics and any additional lunch, coffee shops, you name locations in Africa destined for investment by international hotel it – multiple food and beverage failure by inexperienced property groups should be welcomed, as facilities that will certainly result developers.” they hopefully bring new product in a staffing, procurement and Also looking to grow its and expertise to the region,” he operational disaster.” portfolio is aha Hotels & Lodges, says. “Also, for job creation and Stehlik notes that BON Hotels and according to Rogers, the group upliftment in poor areas, new have often had to walk away is busy with several opportunities hotels will add many positives to 24 | JULY2018 Visit businesstravellerafrica.co.za
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