Kempinski plans to expand its African operations

EUROPE’s oldest luxury hotel group, Kempinski Hotels, yesterday announced plans to expand its portfolio of hotels in Africa.

The group is one of many in hospitality turning their attention to the rest of Africa‚ as economic growth boosts business and leisure travel on the continent.

With two new properties opened in Kenya this year, Kempinski is looking to add five more hotels to its African operations in the next year.

Locations include Ghana, Egypt, Equatorial Guinea, Rwanda and the Democratic Republic of Congo.

An undersupply of quality hotels catering to business travellers means hospitality development in commercial centres has become a pivotal strategy for hoteliers, as the continent’s natural resources boom and rapid urbanisation — which is leading to a rise in purchasing power — attracts investment.

President and CEO of Kempinski Hotels Reto Wittwer said that following the company’s success expanding into the Middle East and China over the past 20 years, Kempinski expected its growing portfolio in key destinations across the African continent to become a major source of revenue for the company, as well as provide new sources for talent and talent development across the company.

Kempinski has 82 hotels in 31 countries and 37 more hotels under development worldwide.

“We will continue our development strategy throughout the African continent over the next few years, partnering with key players in Africa to secure the best locations for our luxury properties,” he said.

A widely cited McKinsey report from three years ago, which predict- ed Africa’s consumer spending could reach $1.4-trillion by 2020, announced to the world that Africa was open for business. Kempinski operates hotels in Egypt, Djibouti, Chad, Seychelles, and Kenya.

Other players are also targeting Africa’s fast growing cities.

In July, Carlson Rezidor announced its 50th hotel deal in Africa — the Park Inn by Radisson in Kigali, Rwanda. The group had planned to reach this target at the end of 2015, but the deal saw it reach it two and a half years early.

Andrew McLachlan, Carlson Rezidor’s vice-president for business development in Africa and Indian Ocean Islands, said Africa was one of the most important emerging markets globally for the Carlson Rezidor Hotel Group, and offered an enormous amount of growth opportunity for its upscale Radisson Blu brand and its mid-scale Park Inn by Radisson brand.

French hotel group Accor, with brands such as Mercure and Ibis, also has aspirations. It wants to open 5,000 rooms in 146 hotels in Africa by 2016. Hilton Worldwide’s longterm aim is to establish a presence in every key city in Africa.