By Nelly K
Largest hotel owner, developer & operator in Qatar, Katara Hospitality has partnered up with Europe’s biggest hotels group AccorHotels in setting up of a $ 1 billion investment fund geared towards the expansion of hospitality sectors in the sub-Saharan African countries.
“It is evident in the recent times that Sub-Saharan Africa’s hospitality industry has made great strides, and follows the latest positive developments between the State of Qatar and Sub-Saharan Africa to enhance bilateral relations in different industries.” Sheikh Nawaf bin Jassim bin Jabor Al Thani, Chairman of Katara Hospitality.
The fund that will amount to $500 million in equity will see contributions from Katara Hospitality and AccorHotels contribute up to $350 million and $150 million respectively in the next 5-7 years.
The investment fund will secure additional financing through leverage and co investments.
The two firms will use the funds to develop greenfield projects, brownfield projects and conversions of existing hotels through acquisitions in the region. Approximately 40 hotels with close to 9,000 guestrooms will operate under several Accor brands ranging from economy to luxury, including residences.
“Having been present for over 40 years in Africa, we also know that there are increasing and sizeable needs for quality hospitality,” said Sebastien Bazin AccorHotels Chairman & CEO in a statement
The new properties also will boost AccorHotels’ portfolio in the continent where it has 124 hotels with 22,401 guestrooms. These operate under the Fairmont, Sofitel, Rixos, Novotel, Mercure, Ibis, Ibis Styles, Ibis Budget, MGallery and Pullman brands.