Against the backdrop of the post-pandemic recovery, the African hospitality industry is not only rebounding, but also performing above projections.
Considering the growing number of hotel openings and pipeline projects, especially by international brands, accross the continent, the industry is truly experiencing a significant resurgence.
Offering more insights on the positive development, Folaseto Akin-Olugbade, an investment manager at Actis, a leading global investor in sustainable infrastructure that has raised US $24 billion to date, attributed the remarkable transformation in the industry, aftermath of the pandemic, to resilience.
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Akin-Olugbade, who currently manages a leading pan-African hospitality platform and a joint venture with Westmont Hospitality Group, with 1,345 keys across seven properties in key hub markets in East, West, and North Africa, is happy that the hospitality industry is fully recovered and open with more opportunities.
“The hospitality sector in Africa has reopened, and we are seeing some countries returning to pre-COVID levels. Remarkably, regions like Morocco have even exceeded these levels,” Akin-Olugbade explained.
The recovery, according to the seasoned investor in Africa’s hospitality space, is further boosted by ‘revenge travel’, a global trend where people are eager to explore the world after prolonged restrictions.
Describing the phenomenon as a pent-up demand, she noted that it has fueled a shift in consumer preferences. Again, she observed a shift from Airbnb-style accommodations with travelers seeking luxury experiences that offer more than just a place to stay.
“People want to be pampered. They want to be taken care of. They want to relish the luxury that hotels offer,” Akin-Olugbade noted.
Further highlighting the future of the continent’s hospitality industry, amid focus on investment, she noted that there is now huge potential for brownfield and greenfield investment opportunities in the hospitality landscape.
Taking advantage of the potential in both investment options, her focus is now on acquiring existing assets and upgrading them to world-class standards.
The rationale for the acquisition is the fact that the leisure space in Africa is ripe for new developments.
Butressing her opinion that Africa’s leisure space is ripe for new developments, she noted that the uptick in ADRs (Average Daily Rates) across African markets is a clear indicator that the sector is on an upward trajectory.
“The fact that ADRs are increasing is a positive sign and it shows that hospitality is back, and in Africa, it’s stronger than ever,” she explained further.
Moreover, with stunning natural beauty, diverse offerings and welcoming culture, Africa, according to her, is an attractive destination for indigenous and global investors in hospitality industry and travelers alike.
She is also excited with the collaborative efforts within the sector, which have allowed key players to seek a common platform to discuss challenges and share best practices.
She also called for more collaborations between governments and the private sector, as well as for stakeholders to leverage shared knowledge and experiences to drive the sector forward.
However, the highly accomplished investor, with over 15 years of experience in both developed and growth markets, stressed the importance of educating financial institutions about the unique needs of the hospitality industry in order to secure better financing solutions that would support investments.
With the above, Akin-Olugbade concluded that the hospitality sector is poised for a bright future.
