Posted on :Saturday , 6th January 2018
Two of the world’s elite multinational hospitality companies, the Hilton Worldwide Holdings and Hyatt Hotels & Resorts have announced their plans to expand their operations across the African continent. Hilton has devised a plan that will see them invest $50m in a five-year period and add 100 hotels to its portfolio. While, Hyatt has a plan to invest in another 6 hotels in Africa by 2020.
This hospitality industry has contributed $165.6bn to Africa’s GDP in 2016. This accounts for 7.8% of the economy. The figure is expected to further rise by 2.9% this year, as reported by the World Travel & Tourism Council.
The tourism sector is also responsible for 8.8 million jobs, which amounts to 2.4 percent of Africa’s employment. The number of planned hotel chain developments has also increased greatly since 2009, from 30,000 rooms in 14 hotels to 73,000 rooms in 417 hotels.
Africa’s hotel industry has proven to be durable in the face of low growth because demand has continued to surge, according to Patrick Fitzgibbon, senior vice president of development at Europe, Middle East and Africa (EMEA) at Hilton Group.
Tejas Shah, Hyatt’s director of acquisitions and development for sub-Saharan Africa sees potential for further growth in Africa because of the continued development seen across the region.
“The hotel industry has proven to be resilient because Africa starts from a low base when it comes to supply of high-quality hotels in the continent,” he says. “And Africa also has the right demographics for growth in the middle class.”
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