Ibis Styles is number one brand for planned hotels in Africa


Ibis Styles has emerged as the front-runner for the number of planned hotels in Africa, knocking back Hilton and Radisson Blu which for years have been locked in a contest for first and second place.

According to the annual Hotel Chain Development Pipeline Survey, from W Hospitality Group, Ibis Styles leads the top 10 brands list. It has 28 planned hotels, followed by Radisson Blu with 25, Mercure with 24 and Hilton slipping into fourth place with 16. Ibis Styles and Mercure’s first and third positions are due to AccorHotels mega-deal for 50 hotels in Angola.

The W Hospitality Group 2016 survey provides a comprehensive picture of hotel development across the continent – 36 hotel chains and 86 brands with more than 64,000 rooms in 365 hotels. The survey, now in its eighth year, is published ahead of the AHIF Hotel Investment Forum (AHIF), which is organised by Bench Events, and takes place in Togo on June 21-22.

While Ibis Styles leads on the number of planned hotels, the top ten rankings by number of rooms reveal a different picture. Radisson Blu leads this category with 5,693 planned rooms, Hilton is in second place with 4,851 and Ibis Styles comes in third with 3,822.

The hotel pipeline for Hilton’s core brand has reduced slightly but the Hilton Garden Inn brand shows higher growth, now at 14 hotels with 2,556 rooms. Also seeing strong growth, but from a small base, is the Fairmont brand, up 109% with 1,412 planned rooms.

Hotel Chain Development Pipelines in Africa 2016 

Top 10 Brands by Number of Planned Hotels and Rooms

Rank by Hotels Rank by Rooms Change on 2015 Average Size 

(Rooms)

Brand Units Brand Rooms
1 Ibis Styles 28 1 Radisson Blu 5,693 6% 228
2 Radisson Blu 25 2 Hilton 4,851 -2% 303
3 Mercure 24 3 Ibis Styles 3,822 137
4 Hilton 16 4 Marriott 2,919 26% 209
5= Marriott 14 5 Hilton Garden Inn 2,566 53% 183
5= Hilton Garden Inn 14 6 Mercure 2,526 606% 105
7= Swiss Spirits 10 7 Sheraton 2,045 10% 227
7= Golden Tulip 10 8 Mövenpick 1,866 86% 267
9= Sheraton 9 9 Four Points by Sheraton 1,797 44% 200
9= Four Points by Sheraton 9 10 Fairmont 1,412 109% 282

 

Hilton is signing the largest deals, with an average of 303 rooms per hotel, closely followed by Fairmont, averaging 282 rooms, and then Movenpick. The AccorHotels deal is for a large number of relatively small hotels.

In terms of pipeline status, traditional leaders Radisson Blu and Hilton are joined in the top four rankings by AccorHotel’s Ibis Styles and Mercure.  All AccorHotel’s hotels in Angola are under construction.

Hotel Chain Development Pipelines in Africa 2016 

Top 10 Brands by Pipeline Status

Rank Brands Hotels Rooms Rank – 

All Deals

Total Onsite Construction
1 Radisson Blu 25 5,693 3,956 69.5% 1↔
2 Ibis Styles 28 3,822 3,822 100.0% 3↑
3 Hilton 16 4,851 3,380 69.7% 2↓
4 Mercure 24 2,526 2,526 100.0% 6↑
5 Marriott 14 2,919 2,049 70.2% 4↓
6 Hilton Garden Inn 14 2,566 1,231 48.0% 5↓
7 Sheraton 9 2,045 1,189 58.1% 7↔
8 Mövenpick 7 1,866 1,141 61.1% 8↔
9 Park Inn by Radisson 7 1,157 1,035 89.5% -↑
10 Steigenberger 2 905 905 100.0% -↑

 

Several chains have more than one brand they are either establishing or expanding in Africa, such as Starwood which has signed deals for eight brands.

Due to its mega-deal in Angola, AccorHotels leads the table of planned hotels and rooms by hotel chain, rather than by brand. Hilton Worldwide comes in at second place. Carlson Rezidor shows lower growth, just 5.5% on 2015. But it’s worth remembering that it opened the most hotels of any chain in 2015, a total of eight Radisson Blu and Park Inn hotels with 1,460 rooms. The chain continues to make good progress, signing seven new deals in 2015 with 1,400 rooms. Starwood also experienced strong growth, adding 1,142 rooms to its African pipeline and Movenpick moved up a gear, signing deals in Abuja, Abidjan and Nairobi.

Table 9: Hotel Chain Development Pipelines in Africa 2016 

Top 10 Chains by Number of Planned Hotels and Rooms

Rank by Hotels Rank by Rooms Change on 2015 Average Size (Rooms)
1 AccorHotels 65 1 AccorHotels 8,794 286.9% 135
2 Marriott 38 2 Hilton Worldwide 8,501 17.3% 236
3 Hilton Worldwide 36 3 Marriott 7,683 19.8% 202
4 Carlson Rezidor 34 4 Carlson Rezidor 7,338 5.5% 216
5 Starwood 26 5 Starwood 5,765 24.7% 222
6 Swiss International 19 6 Rotana 2,409 23.2% 241
7 Mangalis 17 7 Mangalis 2,329 137
8 Louvre Hotels Group 16 8 FRHI 2,292 79.5% 287
9 Best Western 13 9 Swiss International 1,997 14.9% 105
10 CityBlue 11 10 Mövenpick 1,866 86.4% 267

 

Of the top 10 chains, seven have an average size per deal of more than 200 rooms. For the entire survey, the average is 176 rooms per hotel – 230 in North Africa and 159 in sub-Saharan Africa.

The 2016 W Hospitality Group research shows the majority of hotel chains are signing management contracts for their new deals. Most of the franchises or quasi franchises, such as licence agreements, have been signed by Best Western and Swiss International. The “other” category includes joint ventures between chains and owners, owner-operators and a very small number of leases.

A look at the chains’ planned hotels and their existing presence on the continent reveals that the top 10 all plan to expand significantly, most by 50% or more. The highest %age increase is for Rotana, but this is on a very low base.

Table 10: Hotel Chain Development Pipelines in Africa 2016 

Top 10 Chains: Pipeline vs Existing Hotels in Africa

Pipeline Existing Pipeline vs Existing (Rooms)
Rank Company Hotels Rooms Hotels Rooms
1 AccorHotels 65 8,794 93 16,005 54.9%
2 Hilton Worldwide 36 8,501 39 11,192 76.0%
3 Marriott 38 7,683 109 12,925 103.6%
4 Carlson Rezidor 34 7,338 32 7,083 59.4%
5 Starwood 26 5,765 34 9,631 59.9%
6 Rotana 10 2,409 2 759 317.4%
7 Mangalis 17 2,329
8 FRHI 8 2,292 9 2,000 36.2%
9 Swiss International 19 1,997 6 547 75.0%
10 Mövenpick 7 1,866 23 5,155 36.2%
TOTAL 260 48,974 347 65,297 75.0%

 

A comparison of “on paper” and “on site” shows AccorHotels is in the lead, followed by Hilton Worldwide, Carlson Rezidor and Marriott.  While Mangalis, with its Noom, Yaas and Seen brands, has no hotel in operation, eight are on site and three will open in 2016.

Table 11: Hotel Chain Development Pipelines in Africa 2016 

Top 10 Chains by Pipeline Status

Rank Company Hotels Rooms Rank – 

All Deals

Total Onsite Construction
1 AccorHotels 65 8,794 8,539 97% -↑
2 Hilton Worldwide 36 8,501 5,483 64% 2↔
3 Carlson Rezidor 34 7,338 5,479 75% 4↑
4 Marriott 38 7,683 4,555 59% 3↓
5 Starwood 26 5,765 2,394 42% 5↔
6 Best Western 13 1,311 1,246 95% -↑
7 Mangalis 17 2,329 1,204 52% 7↔
8 Mövenpick 7 1,866 1,141 61% 10↑
9 Swiss International 19 1,997 1,137 57% 9↔
10 Steigenberger 8 905 905 100% -↑

 

2015 was a bumper year for deals being signed. There was a record 121 new deals signed including the AccorHotels deal for 50 hotels in Angola. Between 2006 and 2013, 104 deals with 21,377 rooms were signed and should now be open. But for many reasons, most often a lack of finance, they are either still just on paper, or in some cases, remain unfinished.

While there is great promise in Africa, there is also uncertainty. Ten hotels with 2,840 rooms have no opening date. In North Africa, countries such as Libya and Egypt, have been hit by terrorism and political unrest, and this had delayed work on a number of projects. Middle East funding for projects in North Africa has also been affected by the oil price crash.

Despite this, over the next three years there will be 47,000 new rooms in 293 hotels and the expectation of much more to come, including deals that have already been made in the first quarter of 2016.

Table 12: Hotel Chain Development Pipelines in Africa 2016 

Anticipated Opening Years of Pipeline Deals

Hotels Rooms Cumulative New Rooms Open
2016 119 16,934
2017 99 16,540 33,474
2018 75 13,920 47,394
2019 37 8,625 56,019
2020 22 4,989 61,008
2021 2 383 61,391
Not Known 10 2,840 64,231

 

Trevor Ward, W Hospitality Group managing director, said: “We have seen phenomenal growth in the hotel pipeline, 64,000 new rooms, almost 30% up on the previous year.  Whilst the biggest story has been AccorHotels’ mega-deal in Angola, even without it, we would have seen strong growth.”

Matthew Weihs, managing director of Bench Events, said: “Investors are evidently becoming increasingly willing to back Africa’s success. When one looks at the very small number of hotel rooms compared to the size of the population and a growth rate of around 5%, the appeal is clear.  When one adds in the perspective that hotels are essential infrastructure for countries trying to attract inward investment and stimulate growth, I expect AHIF Togo in June and AHIF Rwanda in October will both be full of fervent networking.”

The 2016 survey will be discussed in detail at AHIF in Lomé, Togo on 21-22 June 2016, at the new flagship Radisson Blu Hotel du 2 Février. The second AHIF will take place on 2-4 October at the Radisson Blu Hotel & Convention Center, Kigali, Rwanda. For more information, visit www.Africa-Conference.com.


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