Accor SA is to open 60 new hotels in 14 nations in Africa in the next four years, chief executive officer for the Middle East and Africa Mark Willis said.
Over the next two years, the European hotel operator is to open over half of them in Egypt, which Willis said was rebounding after “external factors” hurt the industry.
The nation suffered a terrorist attack in 2015 when an Islamic State group affiliate blew up a Russian aircraft as it left the Egyptian resort of Sharm el-Sheikh in an attack that killed 224 people.
“Egypt is resurrecting after 10 years of a tough situation due to external factors, but is now improving,” Willis said in an interview in the Kenyan capital, Nairobi.
Egypt has overtaken Kenya’s coastal region as the preferred destination for European tourists and investors.
Revenue per available Accor room has risen 20 percent year-on-year, he said.
“Kenya’s coastal city of Mombasa is not at the forefront of people’s minds today,” he said.
Only one of the target hotels is to be in the East African nation.
The continent has sustained unprecedented rates of economic growth, driven chiefly by sturdy domestic demand, better macroeconomic management and improving political stability.
African nations are still under capacity as far as branded hotel supply is concerned, presenting global chains an opportunity to enhance their footprint.
Key markets in Accor’s growth plan include Nigeria, Ethiopia and South Africa, where it is to open 10, seven and three hotels respectively by next year.
Accor has 143 hotels in Africa, 63 of them south of the Sahara, and is to promote its Movenpick luxury brand, Willis said.
The hotel group is to fund the growth with more than US$1 billion from the Katara Hospitality Fund set up last year for sub-Saharan Africa.
Accor is so far the main investor with US$500 million, while the Qatar Investment Authority is to raise debt and partner in investments, Willis said.
It might expand through mergers, acquisitions and partnerships on the continent, including in South Africa, where Accor is already considering several opportunities, Willis said.
“We have a soft footprint in South Africa, which historically was not a focus for Accor, but it very much is today,” he said.
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