Katara Hospitality, the hospitality arm of the Qatar’s sovereign wealth fund, and AccorHotels, a world-leading travel and lifestyle group and digital innovator, have created an investment fund with a targeted investment capacity of more than $1bn dedicated to hospitality in various sub-Saharan African countries.
The fund comprises up to $500mn in equity, of which Katara Hospitality and AccorHotels will contribute respectively up to $350mn and $150mn over the next 5-7 years, with additional financing coming through leverage and co-investments.
With this initiative, Katara Hospitality and AccorHotels aim at creating a top sustainable hospitality fund dedicated to Africa, bringing support to job creation, training, transfer of skills, local supply chain and communities in the region, operating in compliance with United Nations’ sustainable development goals.
The fund would target greenfield projects, brownfield projects and conversions of existing hotels through acquisitions, in a region which offers robust growth opportunities. About 40 hotels (around 9,000 rooms) would span across the wide range of internationally renowned brands of AccorHotels, from economy to luxury segments, including residences.
The announcement came during a signing ceremony between Katara Hospitality and AccorHotels and was attended by Sheikh Nawaf bin Jassim bin Jabor al-Thani, chairman of Katara Hospitality; and Sébastien Bazin, chairman and chief executive of AccorHotels.
Sheikh Nawaf said 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 Qatar and sub-Saharan Africa to enhance bilateral relations in different industries.
“We view this fund as an excellent vehicle to take advantage of this compelling markets by teaming up with AccorHotels who provide international hotel brands and operations with strong capabilities,” he said, adding “we identify strategic investment opportunities in other markets; and we continuously optimise our international investments to make the best possible returns whilst at the same time safeguarding our economic future.”
Bazin said through this fund, both Katara Hospitality together with AccorHotels’ would match the expertise to accelerate the dynamic growth trajectory in the sub-Saharan region. “By this initiative, we demonstrate our shared intention to support sustainable development over the long-term on this continent,” he added.
Sheikh Nawaf: Great strides. Bazin: Matching expertise.
