Hospitality: As Hyatt plans 6 new properties, Hilton is planning 100 new hotels to its chain in Africa over five years
Hilton Worldwide Holdings Inc. plans to spend $50 million over the next five years to add 100 hotels to its chain in Africa, it said on Thursday, joining other chains keen to tap growing business and international travel on the continent.
One property will open in the Kenyan capital Nairobi by the end of this year and another in the Rwandan capital Kigali in 2018, it said in a statement.
There was 11 percent growth in Sub-Saharan African tourism in the past year, according to data from the U.N. World Tourism Organisation.
Hilton said the remaining additions to its 39 existing African properties would be operational within the next five years.
“The model of converting existing hotels into Hilton branded properties has proved highly successful in a variety of markets and we expect to see great opportunities to convert hotels to Hilton brands through this initiative,” said Patrick Fitzgibbon, Hilton’s senior vice president for development in Europe, Middle East and Africa.
Earlier this week, Hyatt Hotels & Resorts said it would open six new hotels on the continent by 2020.
The company will open its first hotels in Algeria, Cameroon, Ethiopia, and Senegal and open new hotels in two countries where it already has a presence: Morocco and Tanzania. The hotels will create approximately 2 100 jobs, Hyatt said.
Hyatt is looking for more opportunities to expand in East Africa, it said, citing continued government investment in infrastructure, an expanding middle class and a growing international recognition of the region’s stability.
The new hotels will double Hyatt’s presence in Africa. Potential countries for further expansion could include Rwanda, Kenya, Uganda, Mozambique, Ghana and Ivory Coast, Hyatt said.
There was 11% growth in Sub-Saharan African tourism in the past year, the company said, citing the UN World Tourism Organisation.
The first half of 2017 saw a 14% year-on-year increase in international arrivals in East Africa.
Source: reuters.com, moneyweb.co.z