Qatari hotel owner, developer and operator Katara Hospitality and travel group Accorhotels have established an investment fund targeted at hospitality in Sub-Saharan African countries.
The companies are targeting US$1 billion for the fund, with Katara initially contributing $350 million and Accorhotels $150 million, as well as additional finances due to be raised through leverage and co-investments.
The fund will target new hotels, property refurbishments and conversions of existing hotels through acquisitions. Accorhotels says its brands will eventually encompass 40 hotels in the Sub-Saharan region.
Katara and Accorhotels say the investment comes as the region offers “robust growth opportunities” and that the fund will bring support to job creation, training, transfer of skills, local supply chain and communities in the region.
Sheikh Nawaf bin Jassim bin Jabor Al Thani, chairman of Katara Hospitality, commented: “We are delighted to have come to this strategic agreement with Accorhotels. 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. We view this fund as an excellent vehicle to take advantage of this compelling market by teaming up with Accorhotels, who provide international hotel brands and operations with strong capabilities.”
Sebastien Bazin, chairman and CEO of Accorhotels, added: “I am thrilled to announce this key alliance with our understanding business partner Katara Hospitality. Having been present for over 40 years in Africa, we also know that there are increasing and sizeable needs for quality hospitality.”