Research & Development Trends

LODGING MARKET OVERVIEW – LANSERIA INTERNATIONAL AIRPORT AREA, GAUTENG PROVINCE, SOUTH AFRICA

By on Jan 16, 2018

Introduction

The OR Tambo International Airport (ORTIA) is still by far the largest airport in South Africa, and regional airports such as Lanseria Airport (HLA) benefit greatly with feeder markets from international arrivals. Flights into HLA are convenient for most passengers due to its size which facilitates fast turnarounds, ample parking and access to major highways.

HLA is situated on the border between the North West and Gauteng Provinces. It is one of the most important regional airports in South Africa and it primarily serves the domestic passenger market and covers Cape Town, Durban and George. It is also favoured by the charter airline industry and covers many remote locations that are not served by the likes of the ORTIA. Many private companies and individuals also park their aircraft in the hangars located on the airport grounds.

HLA is owned by a consortium of investors, and the Lanseria Airport Development Company (LADC) was incorporated with a focus to expand the airport and to develop the extensive precinct. Support from Provincial, Local and Metropolitan authorities has also been forthcoming as the airport is seen as a major anchor for the development of a planned aerotropolis. Infrastructure projects such as airport expansions and their amenities create jobs both during construction and operational phases and are seen as an integral part of the planned mobility expansion project of the City of Johannesburg. Support has also been expressed from businesses with large planned projects.

Regional Economy of Gauteng Province  

Despite the relatively dry climate, Johannesburg, the capital city of the Gauteng Province, is still a strong competitor for local and foreign tourists into South Africa due to a relatively stable temperature profile throughout the year.  

The Gauteng regional economy places some significant reliance on HLA to facilitate its mobility. According to Gauteng Tourism, “Johannesburg is geographically fairly centrally located in South Africa, and as the biggest urban conurbation it’s also the largest transport hub – for local, cross-border and international travel”.

The City of Johannesburg Local Municipality is officially considered to have a population of 4,4 million. Johannesburg is the largest single metropolitan contributor to the national economic product. The city’s contribution is almost 16% to the national economy and 40% to the Gauteng province. Its economy is dominated by the financial and business services sector, the retail and wholesale sector, the community and social services sector and the manufacturing sector. These sectors are found in both the formal and informal economies, with the township areas accounting for the bulk of the informal economy.

The below chart illustrates regional GDP growth for the years 1997 to 2019. The trendline for the Gauteng economy is depicted in red.  

The outcome of the recent ANC Elective Conference has had a positive impact on the South African Rand. That, in combination with rising business confidence and a growing world economy, is seen as positive news for the local economy. This outlook however has to be read in line with the recent credit downgrades.   

Passenger Movement

In a past report IATA advised that global air passenger numbers are still set to double over the next 20 years, with an upside scenario growth average 5.8% through 2034 and produces 2.1 billion extra people.

Aviation in Africa has recently been given a major shake-up with the signing of the massively-delayed Yamoussoukro Decision at the end of 2017. This important milestone is meant to put into action the open skies policy for African airlines. The creation of a more competitive environment at Africa’s airports is widely seen as a major boost for the travel and tourism industry on the continent. It is perceived that HLA will benefit greatly from increased traffic.

According to the HLA CEO, Rampa Rammopo, the airport’s aim is to double its passenger numbers to more than 4 million within the next six years. HLA is South Africa’s fourth largest airport by passenger numbers among 21 significant local airports. Being in this position is a major feat considering that the airport is privately owned and relies primarily on the domestic market for its business. In 2006, HLA is said to have seen 100,000 passengers pass through its gates. This number has now risen to 1,9 million passengers and is growing in double digit percentages on an annual basis.

Lodging Market Segmentation

The Lanseria Aerotropolis lodging market consists primarily of a corporate segment, then followed by both group and individual leisure and MICE. Weddings are an important leisure activity in the greater area due to its serene and rural setting. The airport segment is rather small in line with the size of the HLA, however this is seen as a temporary situation because of all the planned expansion and the increased number of airlines that will come with this.

HLA’s rising popularity evolved as a result of corporate clients who were in need of a quick check-in and check-out process at the airport as they moved away from the larger and more elaborate ORTIA. This level of convenience is also extended at the various hotels, guesthouses, bed and breakfast and other lodging facilities that are to be found in the surrounding suburbs.

Individual and group Leisure segments are attracted to the abundant availability of tourism assets in the vicinity of HLA. The Cradle of Humankind and the Lion Park are world-famous destinations. Many wedding venues are to be found in the surrounding areas of the airport. A bit further out but still within easy reach is the Sun City Entertainment Complex. All these assets attract both domestic and international visitors all year round and the HLA helps to facilitate much of this business.

The MICE segment is amply provided for in this region due to the secluded profile of the properties found here together with ample recreational facilities, expansive grounds for team-building and central access.

Lodging Key Demand Areas

Lanseria Aerotropolis is surrounded by the Gauteng Province suburbs of Sandton, Randburg, Roodepoort, Krugersdorp, Magaliesburg and Centurion. The key demand areas comprise major residential, retail, commercial and industrial districts.

 Kya Sands, Lazer Park, Strijdom Park and Honeydew Industrial Townships are located in Randburg. These mature industrial townships have developed rapidly as an extension of Johannesburg as decentralised nodes. As Aerotropolis grew larger and became more relevant as a regional airport, new industrial parks have now been established. Lanseria Industrial Park and Cosmo City Business Park arose on the back of an expanding HLA. Since its establishment in 2006, Cosmo City Business Park has doubled its rate of vacant land take, now almost sold out. Stand development also tends to occur quite rapidly after a stand is sold out. These developments house distribution and warehousing companies and command high rentals.

Fourways and surroundings – This high value residential, retail and entertainment node is anchored by Montecasino and Entertainment Centre and Fourways Mall. Montecasino is always growing with new additions every year and brand new nodes every five years or so. These new nodes typically include entire office parks, retail and hotels.  

Fourways Mall is currently undergoing a major revamp with more than 20,000 square metres of additional shopping space. A sizable bulk of these shops are major international retail brands.

Dainfern and surroundings – Dainfern is essentially a residential golf park which grew to become a luxury node. Some of South Africa’s most expensive residences are known to change hands. It is popular with multinational expatriate executives who come to settle here.

Broadacres and surroundings – Broadacres is a pre-dominantly small-holding area which is fast developing into a high density residential environment. It is anchored by a community shopping centre and has access to Fourways and Sandton.  

Sun City – This world-famous entertainment and gambling hideaway is a short one and a half hour’s drive from Lanseria Airport.

Hartbeespoort – Hartbeespoort houses the largest dam in Gauteng Province. The town also supports much leisure activities over weekends and public holidays. Visitors come from far and wide to enjoy the various activities such as the newly-revamped cable car and water sports in the dam.

The Cradle of Humankind is a popular is perennially popular with both locals and foreigners because of its unique product offering and the operator’s focused marketing effort.

Lodging Source Markets

Lanseria Aerotropolis is essentially a business destination with a high domestic and continental guest component. Domestic source markets for hotels in the city include corporate travellers from Cape Town and Durban on scheduled Kulula, FlySafair and Mango flights, as well many chartered flights to far flung tourist destinations such as Kruger National Park and mining towns. Travellers arrive from all countries on the African continent. The previous Minister of Tourism, Derek Hanekom, has in the past announced that travellers in transit through Aerotropolis will no longer require transit visas, further cementing the airport’s reputation as a rapid transfer airport.

Lodging Properties and Indicative Room Rates

The Lanseria Aerotropolis lodging market comprises of only a few locally branded hotels, no global brands and numerous independent hotels and bed and breakfast establishments. Active brands include Tsogo Sun, aha and City Lodge Group. Surrounding hotels are situated at varying distances from the airport and all of them have great access to its facilities. The properties described in this paragraph are popular with business tourists due to their convenient location, attractive surroundings, affordable room rates and aesthetics.

Hertford Country Hotel, Shumba Valley Lodge and Kloofzicht Lodge are some of the more famous independently-owned assets and they cater for pilots, businesspeople, corporates, weddings and small conferences. Maropeng and Forum Homini Boutique Hotels cater for exclusive visitors to the Cradle of Humankind. Hotels at Montecasino, Indaba Hotel and City Lodge Fourways compete for the formal hotel client in the Greater Sandton and Randburg suburb. Rates at these properties are very competitive and much flexibility exists in pricing, a situation which can be attributed to their being privately owned and the largely independent operator profile.

Hotel prices change very rapidly on a daily, sometimes hourly basis. Through Google Maps, one can see the location of most of the properties that regularly advertise their price on the internet. In the study area, customers can rarely find a formal hotel room that is advertised at less than R1,200 per night. The bulk of the properties that are being advertised below that price are either guesthouses or bed and breakfast places. Formal hotels charge rack rates that are upwards of R1,500 the closer they are to the surrounding suburbs. At Montecasino in Fourways, the five-star Palazzo Hotel rack rate was advertised at R3,665 at the time this article was written. The Southern Sun was priced at R2,999 from R2,978 a few minutes earlier. On the other hand the City Lodge across the road was priced at R1,597. On the opposite end of the HLA, the aha Lesedi is advertising rack rates of just under R1,200.

Hotel Market Performance in South Africa

The average room occupancy rate of South African hotels is reported to be persistent in a range between 45% and 60% across all market positions. The branded properties tend to operate in the upper limit of this range. For most operators the key to profitability lies in how they manage their expenses while maintaining standards and still remain attractive to their guests.   

The rate of supply of hotel rooms in South Africa is in some ways regulated by the lending environment and the risk averse attitude of banks towards the funding of hotel investments. In line with that property developers have tended to staying away from hotel projects.     

The performance of the accommodation industry as measured by Statistics South Africa reveals a rising trend in revenue figures. Over the past 10 years room revenue has maintained a consistent upward trend despite tough economic conditions: “Measured in nominal terms (current prices), total income for the tourist accommodation industry increased by 1,2% in October 2017 compared with October 2016. Income from accommodation increased by 2,9% year-on-year in October 2017, the result of a 3,7% decrease in the number of stay unit nights sold and a 6,9% increase in the average income per stay unit night sold”.  

ACCOMMODATION REVENUE TREND 2012-2017

The accompanying graph from Statistics South Africa illustrates the accommodation industry’s room revenue trend during the period 2012 to 2017. Based on a perceived improving economic outlook, this rising trend is expected to remain over the next couple of years.

Room occupancy rate has remained bound in the 45% to 55% range over the same period. Whilst occupancies have been restrained, annual average room rates have maintained reasonable growth  

 

The Outlook For HLA

The outlook for the South African hotel industry is a positive one, following on increased confidence levels in business circles and the accompanying GDP growth outlook. This, in conjunction with demand for private  development in the area, government pledges  for large infrastructure projects such as new rail and water sanitation, is the setting that Lanseria aerotropolis needs to sustain a bustling hotel industry.

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For more information on the above and to learn more about our services please get in touch with us:

Makhudu Hospitality Consultants (Pty) Ltd.
Block D, Sweet Thorn on Beyers Office Park
2595 Bosbok Road,
Randpark Ridge, 2156
Gauteng Province,
SOUTH AFRICA

TEL: +2782 301 4572
CEL: +2787 238 2457
eMAIL: tshepo@makhudu.co.za
WEB: www.makhudu.co.za

COMPANY PROFILE MAKHUDU HOSPITALITY CONSULTANTS

We are a Hotel and Related Hospitality Property Consulting and Brokerage Services Company. We Pride Ourselves And Our Place through our dedication, our passion and our skill, all of which we bring to bear in serving our customer.  

The recent competitive entrance of global hotel operator chains in Africa over the last number of years has necessitated a rapid rise in new hotels. Because of that a related increase in the level of sophistication of hotel investors has created a need for a specialist consultancy service to meet to service the industry. Makhudu Hospitality Consultants (Pty) Ltd was established in 2017 to meet this need.

Over many years Tshepo Makhudu has amassed experience and knowledge of the hotel investment industry in South Africa and across the continent. He has held positions at leading consulting, real estate owning, banking institutions. Recently Tshepo has worked for a global hospitality development, management and investment consultancies in the world, where he was tasked with valuations, market and feasibility studies and consulting engagements in Africa.

Learnt skills include commerce and property development and management at leading universities in South Africa and executive leadership training in the USA. Tshepo is a founding Board Member of the South African Institute of Black Property Practitioners and in in 2015 he was bestowed the IsiThwalandwe Award for his contribution towards the transformation of the property industry in South Africa.

 

South Africa ‘must re-double trade and tourism efforts’

By on Jun 30, 2017

IATA study highlights aviation’s impact on jobs and economy

 

IATA Regional Vice President for the Middle East & Africa Muhammad Ali Albakri says efforts must be “re-doubled” to promote South Africa as a destination open to trade and tourism.

Albakri’s comments come following an IATA study that highlighted the immense value of the air transport industry in South Africa.

Aviation supports some 490,000 jobs in the country, including tourism-related employment.

Affordable, safe and reliable air transport is crucial to economic growth

The sector also contributes $US12 billion to South Africa’s GDP—the equivalent of 3.5% of total GDP.

“The study confirms the vital role of air transport in facilitating over US$110 billion in exports, some US$140 billion in foreign direct investment and around US$9.2 billion in inbound leisure and business tourism for South Africa,” Alkbari said.

“Now with the country in recession it’s time to re-double efforts to promote South Africa as a destination for business, trade and tourism.”

Executives surveyed by the World Economic Forum rated South Africa’s status regarding three key areas for the air transport industry.

Thirty-seven African countries in all were rated, out of these South Africa ranked:

• 1st for infrastructure

• 19th for visa openness

• 17th for cost competitiveness

Alkbari has urged the South African government to recognize the benefits of aviation, and remove barriers affecting air connectivity and trade.

We urge the South African government to remove any impediments

“Affordable, safe and reliable air transport is crucial to economic growth,” he added.

“It promotes skills development and is a catalyst for jobs. We urge the South African government to remove any impediments, including unnecessary red-tape and policies that hinder air connectivity and the trade, investment, tourism and job opportunities it facilitates and stimulates.”

South Africa 'must re-double trade and tourism efforts'

By on Jun 30, 2017

IATA study highlights aviation’s impact on jobs and economy

 

IATA Regional Vice President for the Middle East & Africa Muhammad Ali Albakri says efforts must be “re-doubled” to promote South Africa as a destination open to trade and tourism.

Albakri’s comments come following an IATA study that highlighted the immense value of the air transport industry in South Africa.

Aviation supports some 490,000 jobs in the country, including tourism-related employment.

Affordable, safe and reliable air transport is crucial to economic growth

The sector also contributes $US12 billion to South Africa’s GDP—the equivalent of 3.5% of total GDP.

“The study confirms the vital role of air transport in facilitating over US$110 billion in exports, some US$140 billion in foreign direct investment and around US$9.2 billion in inbound leisure and business tourism for South Africa,” Alkbari said.

“Now with the country in recession it’s time to re-double efforts to promote South Africa as a destination for business, trade and tourism.”

Executives surveyed by the World Economic Forum rated South Africa’s status regarding three key areas for the air transport industry.

Thirty-seven African countries in all were rated, out of these South Africa ranked:

• 1st for infrastructure

• 19th for visa openness

• 17th for cost competitiveness

Alkbari has urged the South African government to recognize the benefits of aviation, and remove barriers affecting air connectivity and trade.

We urge the South African government to remove any impediments

“Affordable, safe and reliable air transport is crucial to economic growth,” he added.

“It promotes skills development and is a catalyst for jobs. We urge the South African government to remove any impediments, including unnecessary red-tape and policies that hinder air connectivity and the trade, investment, tourism and job opportunities it facilitates and stimulates.”

THINC Africa 2017: Exciting future for African hotel market

By on Jun 28, 2017

According to the United Nations World Travel Organisation (UNWTO), the African continent experienced an increase of 8.1%, while Western European destinations showed little to no tourism growth in 2016. Visitor totals in Sub-Saharan Africa grew more than 10% year-over-year – the most of any world region or sub-region.
Managing Partner of HVS in South Africa, Tim Smith believes there is ongoing demand for local knowledge and expertise from prospective investors, which prompted HVS to hold their Tourism, Hotel Investment and Networking Conference, THINC Africa for the first time last year. Following the success of the inaugural conference, the second conference will take place on 30- 31 August 2017 at the FNB Portside Building, situated in Cape Town’s iconic V&A Waterfront precinct.

“The conference is run by hotel consultants with a deep passion for the industry, for the benefit of the industry,” said Smith. The THINC conferences are held in various regions around the globe and are aimed at hotel investors, hotel brands, and management companies, real estate developers, investment bankers and lenders, fund representatives as well as public and private hotel, tourism and convention agencies.

Evolution of the African hotel market

According to the latest HVS African Hotel Market Update, 2016 was a positive year for the African hotel market, tempered by external factors such as UK voters opting for Brexit and the US voting for Donald Trump as their president, both of which will have far-reaching ramifications for global markets, including those on the African continent.

“The evolution of the hotel market across Africa continues with some of the largest international brands announcing they were opening hotels in new countries. For example, Marriott and Rezidor launched large hotels in Kigali, Rwanda. Rezidor also opened a Radisson hotel and convention centre in Togo and announced it was developing five Park Inn hotels in Angola,” Smith points out. “Meanwhile, after the merger with Starwood, Marriott will be opening their first hotel in West Africa, the Sheraton Grand in Conakry Guinea.

The more established markets continue to be popular with Hilton announcing a new Hilton in Upper Hill, Nairobi – the 255-room hotel is set to be the tallest in Nairobi. Hilton also reported it would build the first modular construction hotel in Africa, the 280-room Hilton Garden Inn in Accra, and said it planned a 350-room Hilton at Lagos International airport.

Meanwhile, Accor is progressing with their impressive partnership for 50 hotels in Angola and have just announced three new hotels in Ethiopia” he said.

Positive trends present an exciting future

Smith says 2017 is sure to see more exciting announcements and if commodity prices continue to recover, some of the larger and more influential countries may enjoy economic growth, which in turn should further promote hotel development. “There will be ‘bumps in the road’ but positive trends present an exciting future for operators and investors,” he said.

The tremendous potential for growth in South Africa and the Southern African region is attracting regional and global investors, lenders, developers and operators from the hotel and tourism industries.

THINC Africa going from strength to strength

“Last year’s conference speakers included 30 MDs, CEOs and equivalent senior executives as well as Wesgro CEO Tim Harris and James Vos, MP Shadow Minister of Tourism. The feedback from attendees was extremely positive. 80% thought our speakers were excellent and 93% said it offered excellent networking opportunities,” said Smith.

Smith says the conference is going from strength to strength and is expecting 200 delegates, up from last year’s 160. The focus will remain on hotel investment with sessions on issues affecting owners and operators. Speakers will be senior people in the industry with experience in Africa generally. A new addition to the programme will be sessions focused exclusively on particular countries and one-on-one interviews with business leaders and entrepreneurs.

“We want to ensure that all delegates leave having been challenged and learned something. We have already secured a stellar line-up of speakers and sponsors” Smith said. “We will be encouraging audience participation so individuals can have their questions and issues is addressed. The instructions to speakers will be ‘don’t be boring or say something that can be Googled – people want opinions’.”

HVS – Evaluating Hospitality-Focused Mixed-Use Assets

By on Jul 26, 2016

http://www.hvs.com/article/7735/evaluating-hospitality-focused-mixed-use-assets/?campaign=email&campaign-id=GHR-20160725-437

Americans continue to “rediscover” urban areas, they not only seek-out these areas as places to live but also as places to stay when they travel. These walkable neighborhoods offer residents and visitors ready access to civic, economic, and social nodes, to which local hotels can provide access for guests. This results in demand from more segments of hotel guests than if the hotel were located near a single demand driver.

Additionally, hotels in these areas are often less susceptible to new competition due to the higher barriers to entry in more urban markets. These barriers include fewer development sites (and therefore more expensive land), more restrictive zoning, and restrictions put in place by historic preservation boards. These constraints often necessitate adaptive reuse of existing structures and the construction of structured parking (or leasing arrangements with nearby properties that have a surplus of parking).

In addition to structured parking, these assets may derive income from first-floor retail space or apartments that share the upper floors of the building with the hotel. By their very nature, each mixed-use property is unique. Therefore, HVS professionals consider a variety of factors when providing consulting or valuation services for these types of assets.

As with any type of real estate, a determination of highest and best use is critical to the analysis of a mixed-use asset. However, while the highest and best use of a greenfield site in a suburban area is often quite obvious, the possibilities for an urban site are often more varied. Furthermore, an urban site or building could have environmental issues that are less common with suburban sites.

Another critical question when analyzing mixed-use assets is what type of person or entity would be interested in purchasing the property. Does the asset possess a combination of uses that effectively hedge against one another? Or are the asset’s uses so varied that there would be few buyers with the expertise and energy to manage such disparate income sources? Additionally, would the asset still appeal to traditional hotel investors, or are there so many other revenue streams that it no longer meets their investment criteria?

Finally, the appraiser must determine if the various sources of income could be split off and sold separately, and if doing so would result in a higher value than selling the entire property to a single buyer. The answers to these questions can affect the asset’s marketing and exposure times, as well as the yield rate.

After determining the most likely buyer of a mixed-use asset, the next step is to determine how that buyer would evaluate each of the asset’s income streams. For retail and office components, for example, it will be necessary to project market rents, occupancy rates, lease terms, escalations, and tenant improvement allowances. For properties with multi-family components, prevailing market rents or sale prices must be considered. Additionally, the appraiser must determine whether the residential units will be available to hotel guests via a rental pool. Operating expenses and/or selling expenses must also be evaluated.

In some cases, it may be appropriate to combine the income projections for the various components into a single consolidated income projection for the entire property. In other cases, the income projections are not combined because it was determined in the highest and best use that the various components would have more value if sold separately than if they were sold as one property. Furthermore, if a mixed-use property has condominium units, that income projection cannot be combined with the hotel’s income projection because the condominium income will diminish over time while the hotel’s income will continue over the economic life of the property.

After projecting the various income streams for a mixed-use asset, the appraiser must select a discount rate with which to discount those income streams to a present value. The selected discount rate must be consistent with the return expectations of the asset’s most likely buyer (as determined in the highest and best use).

In a case where the non-hospitality income is minimal, it may be appropriate to discount the ancillary income at the same rate as the hotel. However, in situations where the non-hospitality income is more substantial, it may be necessary to analyze the prevailing yield rates for each particular income stream. Additionally, if it was determined in the highest and best use that the asset’s unique characteristics severely limit the pool of potential buyers, investors or buyers may demand a higher yield rate to compensate them for the additional resources necessary to effectively manage the asset.

HVS is known for unparalleled expertise in hospitality valuation and consulting. However, we also have professionals with extensive experience in the valuation of other asset types, which we can leverage to value non-traditional hospitality assets. Hence, we encourage lenders, developers, and other stakeholders to take advantage of HVS expertise as they explore the opportunities in owning and developing mixed-use hospitality-focused assets.

Carlson Rezidor continues to lead Africa’s hotel pipeline

By on Jun 24, 2016

Carlson Rezidor, one of the world’s largest and most dynamic hotel groups worldwide with over 1,400 hotels in 115 countries, is accelerating its growth strategy in Africa. The group has opened five Radisson Blu hotels in the first six months of 2016 and signed four new hotels including the first Quorvus Collection in Africa. The group is also entering its 28th country in Africa and taking the Park Inn by Radisson brand to the Indian Ocean islands.

In 2016, Carlson Rezidor Hotel Group opened five Radisson Blu properties serving the upper-upscale segment: Radisson Blu Hotel Nairobi Upper Hill in Kenya (271 rooms); Radisson Blu Hotel, Marrakech Carré Eden in Morocco (198 rooms); Radisson Blu Residence with 187 luxury hotel apartments in Maputo, Mozambique (the group’s first residence concept in Africa); Radisson Blu Hotel Abidjan Airport, Ivory Coast (261 rooms) and Radisson Blu Hotel 2 Février in Lomé (320 rooms), host of the first Africa Hotel Investment Forum in West Africa in Togo.

Speaking at the opening of the Africa Hotel Investment Forum, Wolfgang M. Neumann, President and CEO of The Rezidor Hotel Group said, “Africa is Rezidor’s biggest growth market. Our group’s total portfolio comprises 69 hotels in 28 countries, with over 15,000 rooms in operation or under development. Radisson Blu leads the way with more hotel rooms under development than any of the other 85+ hotel brands active in Africa today. Our ambition is to be the leading player in the travel and tourism sector across the continent.”

Carlson Rezidor also announces the signing of its first Quorvus Collection in Africa: the 5-star, 244-room luxury Emerald Grand Hotel & Spa in Lagos, Nigeria. The group also signed a new Radisson Blu Hotel Harare in Zimbabwe (245 rooms), a Radisson Blu Hotel in Durban Umhlanga (207 rooms) and a Park Inn by Radisson in Quatre Bornes, the new commercial hub of Mauritius.

Rezidor’s Executive Vice President & Chief Development Officer, Elie Younes added: “In the last 24 months, we have signed a new hotel deal in Africa every 37 days. And it’s not just about signing hotels; we are delivering our pipeline. We have opened a hotel in Africa every 60 days. In South Africa alone, we now have 14 hotels. In 2016 and beyond, we aim to maintain this great momentum by opening four more hotels in the second half of 2016.”

Hosted by the Government of Togo, Africa Hotel Investment Forum will focus on hotel development and finance in Africa. How to drive tourism and attract more than just the business traveler. The event connects hotel developers, hotel owners, hotel groups, banks, equity funds, property funds, hotel consultants, advisors and hotel professionals from the international and local markets, driving investment into hotel projects across Africa.

“The African continent is a powerhouse of exponential growth of the hotel industry”, said Elie Younes. “Rapid urbanization and economic growth, combined with favorable demographics, has resulted in a shortage of quality internationally branded hotels. This means there are huge opportunities for sustainable and quality growth for world-class international hotel operators like Carlson Rezidor Hotel Group.”

23 JUNE 2016

In Focus: South African Hotel Market Update

By on Mar 19, 2016

This is the first in a planned series of HVS articles on the South African Hotel Industry.

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Should you require any further information please get in touch with us directly.

Snap Survey – Spatial Planning And Land Use Management Draft Bill of 2011

By on Oct 4, 2011

The Constitutional Court will make a final ruling on the Development Facilitation Act in June 2012, which could result in this Act being repealed. This could mean that Development Tribunals would no longer be able to make decisions on land development applications. In the absence of the DFA, the Spatial Planning And Land Use Management Act would have to have been put in place. Should the new Act not be in place by then, development applications would then have to be made in terms of the legacy Townships Ordinances.