JLL‘s latest thought leadership research paper ‘Spotlight on Africa: Opportunity on the Horizon’ explores the investment potential of hotels in Africa, which has improved significantly over the past decade, though it is not without its challenges.
The growth drivers for the hotel sector in Africa include improving fiscal management, favourable demographics (a population of 1.1billion), rapid urbanisation, a growing middle class, rich commodity and energy resources, considerable infrastructure investment and increased tourism.
The expanding economy and increased regional trade will drive business tourism and hotel sector demand. Tourist numbers are projected to increase by 5.7% per annum in Africa compared to 3.2% globally up to 2030. JLL projects hotel demand to increase at a rate of 5% per annum between 2015 and 2017, yet notes that this growth varies across the continent with certain countries, on a higher growth trajectory, whilst other markets are contracting.