Premium Hotels in Africa and The Rise of Innovative Accommodation
The pandemic affected a lot of sectors in the business world. One of the more affected ones was the hospitality industry. Employing Millions of workers and contributing billions of dollars to the global economy at large, the hospitality industry has always had a strong position in many people’s lives.
Some of the biggest players in the industry have origins in Europe and the United States. In the last couple of years, Africa has slowly become an attraction, for some of the biggest brands in the hospitality industry including conglomerate companies like Marriott International, Hilton Worldwide, and more which are expanding their already massive footprints in the continent.
Innovation
Most hotels have had to develop ingenious ways of keeping their guests comfortable and safe, despite the world experiencing a new normal. New cleaning procedures and sanitization techniques have been put in place in various sections of hotels. The ease of post-pandemic travel regulations has also facilitated a huge influx of hotel visitors and guests in various hotels with many terming it as “Revenge-travel”. The Hotels have had to keep up with the huge demand that comes from the many travelers seeking accommodation.
Investors look at Africa as an ideal place to build hotels due to the rise of huge infrastructure projects in that facilitate travel and communication. The growth of commerce also brings about a new class of business travelers and hotel guests. A lot of companies in Africa hold their conferences and events at African hotels bringing a lot of revenue to the hotels. International Airlines accessing Airports like the Cape Town International Airport, Cairo International Airport, and Jomo Kenyatta International Airport in Nairobi have also attracted international visitors and tourists who create a demand for luxury hotel stays in Africa.
Pricing and Economy
According to Verified Market Research, The Multi-Billion dollar African Hotel Industry has been growing at a compound annual growth rate of 5.25% from 2018 to 2022.
Locations like Nairobi, Addis Ababa, and Zanzibar have proved to be prime locations for well-priced 5-star hotels and Luxury Resorts. Some of these include Getfam Hotel and Ramada by Wyndham in Addis Ababa. The Boma Hotel in Nairobi offers a contemporary style of design and luxury. Moja Tuu in Zanzibar offers ocean views and serenity and others all over the continent.
My thoughts & The Future
The bigger hotels have also had to develop and curate specific experiences for their guests much like a smaller and more intimate boutique hotel would. Africa is now looked at as a huge market for investment and development. In the next few years, many more luxury hotels will be developed in major cities like Addis Ababa, Nairobi, Cape town, and Rabat.
The rise of companies like Airbnb offering alternative accommodation has helped by providing more options to customers. This however will not greatly affect the current market share and future dominance of hotels at least not yet, as they occupy different markets in the industry. A huge number of hotel visitors are people traveling on business or work and they value a lot of what hotels offer in terms of convenience and speed. Airbnb visitors are mostly on leisure and most of the services they may experience at an Airbnb stay would be best suited for their specific needs. Safety concerns may also be something Airbnb guests may need to consider as this space is still not yet heavily regulated by the government.
Conclusion
Most hotels have had to shift from just offering accommodation to offering unique experiences and memorable activities that go hand in hand with the guest’s stay. Hotels have still proved to be a viable business for many investors globally and Africa currently offers the space, market, and workforce that is needed.
Sources:
Development in sub-Saharan Africa: Consequences of foreign hotels for local employment International Business Review
19(2):191–205 April 2010
Verified Market Research
Report ID: 39561 |Published Date: Jun 2021
Africa’s Hotel Industry: Growth and Development After COVID-19 Borgen Magazine
May 6, 2021 BUSINESS AND NEW MARKETS
A Ticket to Recovery: Reinventing Africa’s Tourism Industry IFC
May 2021
