An Overview of the Hotel Real Estate Sector in Africa (Report): Jones Lang LaSalle (JLL)

Table of Contents

  • Introduction
  • Investment Drivers in Africa
  • Hotel Supply
  • Hotel Demand
  • Investment Focus & Returns
  • Africa Hotel Investment Outlook
  • Hotel Operators in Africa
  • Opportunities on the Horizon

Read the full report below.


The narrative on the investment potential in Africa has improved significantly over the past decade and many sectors in the African economy are seeing high growth in investment from global corporates, institutional investors and private equity. The drivers for this change in sentiment are sustained economic growth, increased stability, favourable demographics and improving infrastructure.

In the global hotel sector, we are forecasting hotel transaction volumes of USD 68 billion in 2015, a 15.0% growth on 2014, and a record level of cross-border capital flows. This buoyant market is being driven by strong hotel sector fundamentals, high levels of global liquidity and increasingly global real estate capital allocation. The bulk of the investment continues to be focused on mature markets with emerging markets representing some 8.5% of open market transactions globally.

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Hotel supply in Africa has grown by 4.1% annually during the past 10 years, which has been driven primarily by local and regional developers. Global investors are increasingly taking note of the potential of the region and considering their optimal entry strategy into these markets.

The aim of our research is to map out the supply and demand drivers in the hotel real estate sector in Africa, to highlight target returns and to understand barriers to entry. More than 50 investment companies participated in this research and we thank them for their contribution. We hope that our research will assist in creating further transparency in the hotel real estate sector in this exciting growth region.

An Overview of the Hotel Real Estate Sector in Africa: Jones Lang LaSalle (JLL)

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Source: Spotlight on Africa: Opportunity on the Horizon | JLL