A number of multinational investors have increased their investors in the hotel industry by setting up several operations in sub Sahara Africa, a new survey revealed on Tuesday.
The study by Nigeria-based W Hospitality Group published ahead of the forthcoming Africa Hotel Investment Forum set for Nairobi in September established a 42 percent increase on upcoming hotel investments in sub Sahara African countries including Kenya.
Speaking in Nairobi, Kenya Tourist Development Corporation (KTDC) CEO Marianne Ndegwa while collaborating the survey findings confirmed that the number of pipeline hotel rooms has significantly increased.
"In Sub Sahara Africa, Kenya is emerging as a fast growing hotel investment destination with international chains such as: Best Western, Radisson Blu, Park Inn and Three Cities-branded hotels all under construction – and a 200-room Lansmore Hotel, Lonrho's new brand, on the drawing board," Ndegwa said in Nairobi.
The report by W Hospitality, Ndegwa, disclosed estimates that the hotel chains polled in the recent survey currently have almost 99,000 rooms operating in Africa, with around 44,300 in North Africa and 54,600 in sub-Saharan Africa.
"Ahead of the Africa Hotel Investment Forum (AHIF) set for Nairobi on Sept. 25-26, we are excited that global brands are turning a positive eye to Kenya," she said.
She said the September forum will undoubtedly attract quality investors who may wish to invest and develop world class hotels within our traditional and emerging tourist circuit in Kenya.
Kenya's 2011 tourist arrivals rose by 15.4 percent to 1.26 million in 2011 compared to 1.09 million in the same period in 2010. Cross border arrivals estimates reached 520,246, bringing total arrivals for the year to 1.78 million.
Tourism earned east Africa's biggest economy 1.18 billion U.S. dollars in 2011 compared to 896 million dollars in 2010, making it one of the country's top sources of foreign exchange.
An analysis of leading economic and demographic trends sheds more light on the phenomenon. African economies have become much healthier.
In the 1990s, average inflation was running at over 20 percent, by the 2000s, it had fallen to less than 10 percent.
Over the same period, debt as a percentage of GDP fell from over 80 percent to less than 60 percent and national budget deficits had diminished by over 60 percent.
According to W Hospitality Group MD Trevor Ward, seven of the world's 10 fastest growing economies are in Africa, where economic growth is around 6 percent per annum.
"That is more than double the rate of many major Western economies and faster than the average for Asia - so if you are answerable to shareholders for growing returns, these are facts you can't afford to ignore," he said.
Jonathan Worsley, chairman of Bench Events, which organizes AHIF, the premier hotel investment conference in Africa, said the smart money does not just spot opportunity but it creates it.
"If you compare Africa, and particularly Sub Saharan Africa, with the rest of the world, there is a dramatic shortage of international branded hotels so I expect the rapid growth in hotel development to continue apace for several years yet," Worsley said.
"What is more intriguing is who will be getting in to bed with whom and on what terms. Whilst it's not overtly stated, that's what September's conference is really all about."
The AHIF will be attended by leaders of the hospitality industry, investors, consultants and the media from Africa and around the world.