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African Hotel pipeline resilient despite unprecedented challenges

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HTI Consulting CEO Wayne Troughtong

Acknowledged as one of the African continent’s leading hospitality investment experts, Wayne Troughton of HTI Consulting shared unique insights in the firm’s first ‘Virtual Hotel Club’ held in early July, a dynamic and informal Pan-African digital platform that saw 295 registrations across 15 countries.

Data was gathered from a survey that covered 14 regional and international operators active in the African hotel space (41 hotel brands and 219 projects currently under development). These included the likes of Hilton Worldwide, Marriot International, Radisson Hotel Group and Accor Hotels, amongst others.

Development sentiment largely positive

According to Troughton, whilst the African hospitality industry is facing unprecedented challenges and obstacles in light of the global pandemic, he noted that development sentiment remains optimistic amongst the majority(57%) of hotel owners as reported by operators on the continent.

“Despite closures and significant performance declines, long-term investment fundamentals for the Sub-Saharan region remain positive despite significant short to mid-term challenges currently impacting the sector,” he said.

“Of a total 219 hotel projects currently In Sub Saharan African pipeline a large proportion (68%) of these projects are proceeding as planned, with only 18% currently on hold for a limited period,and 13% on hold indefinitely.” he stated.

“Concerns amongst hotel owners are, of course, still apparent and, for several, a ‘wait and see’ approach relates to factors such as uncertainty around travel ban lifts in various markets, how to restore guest confidence, and the impact of Covid-19 on hotel valuations. However, the optimism displayed by many owners generally relates to understanding of the sector and adoption of a longer-term outlook,”he explained.

Outlook geared to opening doors

Despite the current environment, construction related businesses in several countries resumed activity as early as possible after lockdowns eased,commented Troughton.

“Encouragingly, this has resulted in 21 projects (representing 2946 hotel rooms in 15 African countries) still expected to open in 2020, with 52% of projects expecting short-term delays of 3 -6 months,” he said. “Longer term delays (9-12 mths or 12 mth+) are typically being seen on those projects that were in earlier (or planning) phases of development,” he stated.

“These delays can generally be attributed to uncertainty around how long travel lockdowns will continue. However, around 30% of projects under construction don’t expect COVID-19 to cause any delays to their ongoing development,” he said.

Hotel owners are clearly taking a long-term investment outlook and are expecting COVID-19 to be largely neutralised prior to their hotels opening. This relates particularly to those in the early stages of planning.

Angola – Luanda (Image by: Kirsten Hill)

Development pipeline remains healthy

Of the overall Sub Saharan Africa Development pipeline there are 219 branded hotels (representing 33 698 hotel rooms) across 38 markets.

“East Africa remains the region with the strongest hotel pipeline, followed by West and then Southern Africa. East Africa has 88 branded hotels currently in the pipeline, West Africa sees 84 branded hotels in its pipeline with Southern Africa sitting on 47 hotels,” stated Troughton.

Of the 21 hotels total projects expected to open doors in 2020, East Africa (40% of total supply), will see 1,134 rooms come on board, with the top cities being Antananarivo (22%), Dar es Salaam (20%) and Addis Ababa (20%).

West Africa (47% of total supply) sees 719 rooms planned to enter in 2020 across major cities including Accra (28%), Bamako (28%) and Cape Verde (24%).

Southern Africa (23% of total development pipeline) sees 963 rooms planned to enter in 2020, with South Africa – Johannesburg (71%) and Durban (21%) – seeing the predominance of activity, followed by Zambia.

Over the past three months HTI Consulting has engaged in numerous discussions with hotel owners who, Troughton states, have navigated different cycles during COVID-19 from survival (as hotels closed) to cost containment, defining hygiene safety protocols, staffing plans and ultimately, reopening strategies.

As several economies slowly start to open, so too have many hospitality businesses who are remaining positive and committed to the industry and demonstrating the determination necessary to over coming current adversities.         

Doing the deals

“Despite pressured economic environments and tough decisions, many hotel operators have, been able to successfully conclude and sign deals with owners during the lockdown period. A total of 15 new hotel deals were concluded by 7 operators in 8 countries, from the period March – June,” stated Troughton of HTI Consulting.

Feedback indicates these deals were close to fruition prior to the COVID crisis, with owners showing strong sentiment to continue with the projects. Further feedback from operators indicates these deals were also typically signed in primary African cities such as Abidjan, Accra, Lagos and Durban that boasted strong and diverse hospitality markets prior to the crisis. These locations are also likely to recover at a quicker rate than secondary nodes, believes Troughton. 

“Select operators who indicated that no deals were signed during this period pointed out that opportunities remain rife and that new enquiries are continuing to come through,” he said,

“It is anticipated that a lag will occur, with new owners typically being more cautious and awaiting to see how recovery unfolds,” he said. “Concerns have also been raised by owners around access to finance going forward as well as the willingness of the banks and financial institutions to fund hospitality projects at this point in time,” he continued.

“Whilst we haven’t seen any distressed sales at this point, with banks largely keeping hotels afloat, this may well change depending on the time frames we’re looking at to a return to ‘new normal’ as well as the potential resurgence of the virus in certain areas. The next 2 – 3 months will prove to be crucial, as many hospitality businesses do not have plans in place to ensure sustainability post this period.”

Opportunity sees operators doing it differently

“In several instances, feedback from large operators indicates a distinct shift towards conversions over greenfield development going forward, with a more flexible approach to the renovations and PIP costs.”

“Some operators are viewing this time as an opportunity to finalise forward planning during lockdown,” said Troughton “In several instances they have been able to take advantage of government support during this period in order to ensure they are able to streamline and accelerate internal approval processes, create more flexibility around brand stance, enhance their ability to pitch their products correctly to the local market and offer greater value and affordable experiences along with analysing fee structures over a select period.”

Also Read: Africa Rising: Why Project Managers Are Critical to Africa’s Future

“Whilst lockdowns have placed many hospitality businesses and investors in a stalemate position over the past few months, we’ve noticed a positive change over the past few weeks as more as more hospitality businesses resume activities and we see a significant uptick in the commissioning of hospitality advisory assignments,” noted Troughton.

Future Outlook

“It is reasonable to assume that a more cautious approach will be taken by hotel owners and investors in evaluating their investment strategy,” he said.

“Independent hotel owners mayindeed find it more difficult than the larger international brands to weather this current scenario. This too because branded hotels, and their new highly publicised hygiene protocols, may make for a more secure market and therefore allow them to see a more effective bounce-back and recovery.”

Hilton Addis Ababa (Image by: Kirsten Hill)

“Additionally those markets that are strongest in the area of domestic business travel (and then domestic leisure) should be amongst the first to recover.Indeed, focusing on the local market is what helped Asia recover from the SARS epidemic in the early 2000s.”

“For those owners and operators taking the the time to understand the changing markets we are facing, and willing to adapt to drive new demand, the medium to long-term outlook remains good,” stressed Troughton. “At HTI Consulting we continue to believe in the tourism potential in the region and strongly encourage further support from governments and brand managers to allow owners to minimise further losses and support recovery,”

“Despite current challenges and the overall uncertainty that trouble us all, there will be better times ahead and the travel market will eventually emerge stronger and more resilient. As governments slowly roll back travel restrictions and prepare to reopen society, the future winners are those that build a future based on a strong risk mitigation approach and display flexibility and innovation,” he concluded.

Released by: Kirsten Hill for HTI Consulting

Hospitality & Tourism

Radisson Hotel Group announces its arrival at Victoria Falls, an UNESCO world heritage site

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Radisson Hotel Group (Image source: Saadiyah Hendricks)

Radisson Hotel Group is proud to announce its first resort and third hotel in Zambia, with the signing of Radisson Blu Resort Mosi-oa-Tunya, Livingstone, Zambia. Due to open by the end of 2022, this new addition places the Group firmly on track to achieving its objective of reaching 150 hotels in operation and under development in Africa by 2025.

Nestled on the banks of one of Africa’s longest rivers, the Zambezi, in Mosi-oa-Tunya National Park, 5km south of the historic city of Livingstone, just 4km north west of the Victoria Falls, one of the seven natural wonders of the world and an UNESCO world heritage site. Convenience is amplified with Harry Mwanga Nkumbula International Airport located just 15 minutes away.

For an immersive experience of the destination, situated right next door, is Safari Par Excellence, offering unique on and off the river adventure activities, from Victoria Falls bridge activities, water-rafting, canoeing and game drives to helicopter rides, river cruises and elephant encounters.

The hotel will be constructed and operated with the greatest respect to its close proximity of the natural wonders and aims to obtain the EDGE green building certification as well sign the UNESCO Sustainable Tourism Pledge, becoming a best practice in the implementation of Radisson Hotel Group’s leading Responsible Business program.

Image source: Saadiyah Hendricks

The construction of the new hotel which is currently underway, and the design fully integrate local materials and focuses on employing and upskilling local craftspeople. It will consist of a contemporary 174-room main hotel and 26 luxurious villas. Guests can indulge in their favourite cuisine at the all-day dining restaurant and sit back with their favourite drink at the coffee bar. To bask in the fresh African evening air in comfort, guests can gather around the outdoor boma and firepit. During their stay, guests can also enjoy the hotel’s expansive swimming pool, find serenity at the spa or maintain their health at the sports and fitness gym. Ideal for all occasions, the hotel’s meetings and events facilities will include a ballroom of over 500sqm, boardrooms as well as meeting rooms, perfect for leisure and business use.

Ramsay Rankoussi, Vice President Development, Africa & Turkey, Radisson Hotel Group, said: “We have been present in Zambia for many years and have long recognized the potential of the country. It was essential for us to complement our presence in Zambia with a resort offering in one of Africa’s most visited leisure tourism destinations – the Victoria Falls. This marks our third hotel in the country, complementing our existing portfolio of one hotel in operation, Radisson Blu Hotel, Lusaka, and the under-development Park Inn by Radisson Lusaka, Longacres, due to open early next year. Through this unique resort, we look forward to demonstrating our strong Responsible Business heritage and sustainable programmes and initiatives which will further promote the destination and ensure the preservation of this unique reserve and location. We are truly proud to have partnered with NAPSA for the launch of the Radisson Blu Resort Mosi-oa-Tunya, Livingstone as we further seek to reinforce our collaboration in promoting tourism across Zambia.”

Mr. Yollard Kachinda, Director General  of NAPSA, the owning company said: “It is an honour to be partnering with Radisson Hotel Group, a company that believes in thriving, sustainable, and responsible business that supports people, communities and the planet with various procedures and programs to build better futures. We are proud to be associated with the creation of several jobs, both directly and indirectly. It is also satisfying to note that most of the materials are locally sourced, such as steel coming from Kafue Steel, timber coming from Zambezi Sawmills and other materials such as quarry and stones also being sourced within the community. We are looking forward to introducing this unique resort to the market and are confident that the various sustainable elements of the hotel will uplift the community and enhance the overall experience of this beautiful destination and its economy.”

Image source: Saadiyah Hendricks

Radisson Hotel Group operates to high standards of performance and advocates socially and environmentally sustainable business practices. More than ever, Radisson Hotel Group’s highest priorities remain the health and safety of its guests and employees. The Group partnered with SGS, the world’s leading inspection and certification company, to implement the Radisson Hotels Safety Protocol, which ensures the highest hygiene standards and strengthens the Group’s existing rigorous sanitation guidelines. In the run-up to the opening of Radisson Blu Resort Mosi-oa-Tunya, Livingstone, Zambia will implement the Radisson Hotel Group brand standards including the Radisson Hotels Safety Protocol related to safety and security.

 

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Black Canadians making travel safer for women by helping them rent spaces from other women with Femmebnb

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Femmebnb Inc. Co-Founders, Yaa Birago and Diana Obeng

Femmebnb Inc. Co-Founders, Yaa Birago and Diana Obeng (Source: Yaa Birago)

Dismayed by her solo travel experience in 2017, Yaa Birago made it her goal to curate a safe space where like-minded women travel enthusiasts can come together to plan, book, meet, talk, and share everything about travel. Softly launched amidst pandemic, Femmebnb Inc. is the first-ever social networking short-term vacation rental service powered by an Artificial Intelligence (AI) travel assistant that is at the forefront of reshaping ‘Women’s travel experience’, once the world reopens.

After being sexually harassed in-front of her airbnb apartment in Rome, and receiving no support from her male bnb host, Yaa Birago – CEO and co-founder of Femmebnb Inc., felt unsafe and unpleasant for the rest of her trip. This is exactly what was told to her when she announced her solo travel to her family – it’s unsafe! With this experience and the urge to change the travel horizon for women, the idea of Femmebnb sprung in her mind.

The validation of a need to have a platform and community that is solely for women travellers & hosts came from a survey initiated by Femmebnb where over 229 women shared that they would feel more secure knowing their host is a female, and that the rental is booked via a platform that deeply understands these concerns. This is the reason why Femmebnb has already received over 3000 registrations by women from 60 countries on the platform despite the travel industry being on hold due to COVID-19.

Source: Yaa Birago

“Being a hodophile, I was extremely disappointed when my solo travel to Europe turned out to be a nightmare as I faced sexual & street harassment. Upon receiving no support from my male bnb host when I discussed the incident with him, I realised that a female host would have naturally been more emphatic. This, combined with the help I attained from a female companion in France with whom I had merely chatted on Facebook before my travels, affirmed that we need to curate a safe social networking vacation rental space for only women where common concerns can be addressed and resolved together. This embarked the idea of Femmebnb in 2017. After 3 years of persistence and determination, fused with technology, creativity and research, we have finally launched and are ready to change ‘her travel experience’.  – Yaa Birago, CEO & Co-Founder, Femmebnb Inc.

When Yaa proposed the idea to an old ally Diana Obeng, she jumped in right away to co-found the company with her.

Diana Obeng, Co-Founder, Femmebnb Inc. – “As a woman, I shouldn’t have to hope and pray that my safety is not at risk when I am planning to travel solo in a new country, but unfortunately, that’s the first thought that comes to mind. I cannot downplay that women fear their safety over every other concern related to traveling alone. Hence, when Yaa proposed the idea of curating a safe space for women travelers, I jumped on board in a heartbeat. We are determined and have invested every bit of our soul into this project and I am excited to help reshape ‘women travel experience’.”

Femmebnb is an exclusive membership platform, ensuring that every member on the platform is vetted. The verification process consists of 5 steps: email, phone, government ID, property documentation/utility bill and/or video verification. The on-site personality video feature facilitates trust and credibility between the host and guest. For the time being, a one-time subscription fee of $4.99 has been waived off the platform, making it free for all to register!

Source: Yaa Birago

A portion of every transaction made on the site for bookings goes towards providing menstrual equity, menstrual hygiene education and menstrual products to girls in Africa as a means to help eradicate period poverty.

(By woman/women, Femmebnb Inc. means anyone who identifies as a woman, non-binary, gender-fluid or non-conforming (womxn).

 

Yaa Birago’s Short Bio

Source: Yaa Birago

Yaa Birago is a tech entrepreneur, Co-founder and CEO of FemmeBnB Inc.; the first social networking vacation and short-term rental platform that allows women to rent their spaces to other women in hopes of maximizing safety, peace of mind and comfort, along with AI- Powered Travel Companion to help women plan their trip from start to end. She started the company to provide safe space and peace of mind for women travelers after she had a terrifying experience as a solo traveler in Rome.

Yaa holds a B.A degree in Criminology and Sociology from the University of Windsor but her passion for tech, women and children advancement led her into the Information Technology and Non-Profit sector for the past 11 years. Yaa is also the Co-Founder and President of Hands of a Hero Foundation (HOHF), a non-profit organization that provides mentorship, leadership, and career development programs for youth and children in Canada and Ghana. Yaa was a recipient of Global Impact Award and Women’s Courage International Award.

She was named as a Black Canadian Role Model and Top 100 Black Women to Watch in Canada. In addition, she was selected as Top30 under30 Pioneers by FOG and in March 2020, she was recognized as WOCStar Woman to Watch. Moreover, Yaa was recently recognized as the TOP 20 Women CEOs in Vacation Rental Tech by VR Tech and the Top 25 Women in the Travel Industry by TravelPulse.

Yaa is passionate and enthusiastic about travel technology, women travel safety, sustainable travel, and improving women’s travel experiences across the globe.

 

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Bordeaux-based Nigerian Wine Consultant creating the French Experience with an African twist

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Bordeaux-based Nigerian Wine Consultant, Chinedu Rita Rosa (Photo: Roger Das)

Most times when you think of a French wine expert, especially in Bordeaux, a strong-willed, driven and passionate Black Woman doesn’t come first to mind.

Chinedu Rita Rosa is making waves in the Bordeaux wine community. As a Nigerian Black Woman in her 40’s, she is a rare and long-overdue sight in the wine industry. Over the past six years, she has built a home in Bordeaux with her two teenage daughters and French husband.

For over 20 years Rosa has been active in the wine industry, though she came into the wine business by chance, as an unofficial adviser to her late husband selecting wines for importation into Nigeria. Originally working as a banker, wine did not become her profession until the passing away of her late husband in 2008 who was a Lebanese businessman.

In 2008 she returned to Nigeria and worked with her late Husband’s Friends in XO Wine Store as a Manager where she was in charge of organizing various wine events, teaching wine appreciation, and increasing the selection of wines from all over France. She did all this with minimal professional experience. She likes to put it into simple terms that anyone could relate to, “ I learnt while drinking on the job!”

With Nigeria being a beer-drinking society it was not an easy sell for wines, when she first started, although it was a delightful process, Rosa mentioned. She witnessed, ChiChi (as she is fondly called by her friends) mentioned. She witnessed, seeing the shift of peoples’ opinions about wine, especially when she found the right wine to pair with a client’s palette. Meeting people and discerning their taste and discovering their wine preference is an art that she is passionate about.

“As the years went by, it became much easier to match wines with clients taste” said Rosa. It was during this time that she also acquired knowledge of wine importation, wholesales, retailing and grassroots marketing strategies due to the distribution network of XO Wine stores.

After her first year, Rosa knew this was a profession that she would like to pursue, she continued studying, tasting and enjoyed experimenting with wine tasting pairings. She turned her wine education into a social circle with clients and friends who were also wine lovers. For her, these were some of the most rewarding best moments of her wine career.

Bordeaux-based Nigerian Wine Consultant, Chinedu Rita Rosa (Photo: Roger Das)

She discovered how African foods reacted to different grape varieties and from different wine regions, not forgetting Champagne. She boosts “ If you haven’t tried eating àsun or suya with red wine, you must; it is not to be missed”

It was important to ensure sure that all her knowledge of wine and the industry was accredited, which led her to Bordeaux, where she learned about the technical side of winemaking, regions, and styles. Chinedu found herself the only black and African student for the entire term of the course. In the first step of her official wine studies, received a certification from the school of wine in Bordeaux “Ecole Du Vin.” She is a true believer that the best wines come from Bordeaux.

A fabulous wine lovers group was established in the spirit of the numerous tastings and to date, it exists in Lagos exclusively for members of the XO Family.

Continuing her wine education journey in Bordeaux was a dream and when she decided to re-marry and move to France there was no second-guessing where she was going to call home. Chinedu says,” Naija women are born Entrepreneurs.”This drove her ambition and she ventured into media marketing, blogging, and vlogging in the wine world of Bordeaux, and she also created a networking community where she is the president of like-minded people and entrepreneurs from all over the world that has settled in Bordeaux. The Bordeaux Business Network has over 1000 members and is a thriving support community for expat entrepreneurs.

In Bordeaux, Chinedu has become known as the black lady who is invited everywhere and also hosts a lot of events (not unlike in Lagos!) due to her professional commitments. She attends most wine and entrepreneurial events in the Bordeaux metropolis and is easily distinguishable as a black businesswoman with a glowing smile.

Does this bother her? She has mixed feelings on the subject, Chinedu takes no issues with being the ONLY anywhere, it is a testament to her African upbringing after all. “‘Naija no dey, carry last,” she says. and Being yourself and standing out is important, but she is driven to encourage other black entrepreneurs and young people to come into this profession, where she believes the possibilities are endless.

Chinedu is a distinguished WSET (Wine & Spirits Education Trust) certification, holder. Her wine knowledge spans the process of winemaking to marketing and exportation. She had envisioned that there would be more people of color in the wine industry with her qualifications that she could connect with on a cultural level but she is still left searching. She hopes that this will start to change soon.

Bordeaux-based Nigerian Wine Consultant, Chinedu Rita Rosa and friends (Photo: Roger Das)

As the founder of VINES BY ROSA, an import and marketing company based in Bordeaux she now collaborates with amazing brands, representing them in African Markets. Some of her most notable representations include: CHATEAU DAUZAC, MARGAUX GRAND CRU CLASSE, HINCH IRISH WHISKEY, NINTH WAVE GIN, LGI WINES. These brands are Winemakers that tailor to the African Market specifically creating labels and even Nicolas Feuillatte Champagne.

Always thinking about the future Chinedu wants to continue to build on her passion, education, and dedication, increasing the quality of wines and spirits being imported into Africa and propelling wine appreciation in the continent. She is on a mission to demystify the art of wine tasting and bring good wine to every table at the right price. In the process of this journey, she hopes to inspire other black men and women to join the wine industry and looks to the day where she is not the, I am almost always the only professional BLACK (Woman) at tasting events and business functions, especially here in Bordeaux. “I want to change that,” she ends.

Taking it one- step at a time to secure long-overdue space for aspiring Black women in the wine industry, through the success of Vines By Rosa, she hopes to inspire more people to take their passion and dreams forward.

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