AccorHotels and Katara Hospitality are creating a massive investment fund with a targeted capacity of over USD 1 billion, dedicated to hospitality in various sub-Saharan African countries.
Katara Hospitality, formerly known as Qatar National Hotels Company, is the largest hotel owner, developer and operator in Qatar. It’s owned by the Government of Qatar.
A statement issued yesterday said the fund would amount to up to USD 500 million in equity, of which Katara Hospitality and AccorHotels would contribute respectively up to USD 350 million and USD 150 million over the next 5-7 years, with additional financing capacity reached through leverage and co-investments.
The fund “will target greenfield projects, brownfield projects and conversions of existing hotels through acquisitions, in a region which offers robust growth opportunities”, the statement said.
Some 40 hotels (about 9000 rooms) will span across the range of internationally renowned brands of AccorHotels, from economy to luxury segments, including residences.
The statement said: “With this initiative, Katara Hospitality and AccorHotels aim at creating the number one sustainable hospitality fund dedicated to Africa, bringing support to job creation, training, transfer of skills, local supply chain and communities in the region, operating in compliance with UN sustainable development goals.”
The announcement came during a signing ceremony between Katara Hospitality and AccorHotels and was attended by chairman of Katara Hospitality His Excellency Sheikh Nawaf bin Jassim bin Jabor Al-Thani and AccorHotels chairman and chief executive, Sébastien Bazin,
Commenting on this partnership, Sheikh Nawaf bin Jassim bin Jabor Al Than, said: “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 markets by teaming up with AccorHotels who provide international hotel brands and operations with strong capabilities.”
“Katara Hospitality is a government-owned organisation whose goals are naturally aligned to the country’s objectives; as the hospitality arm of the Qatar Sovereign Wealth Fund, we identify strategic investment opportunities in other markets; and we continuously optimize our international investments to make the best possible returns whilst at the same time safeguarding our economic future.”
Bazin said he was thrilled to announce the “key alliance with our outstanding 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. Through this fund, we will match the expertise of Katara Hospitality together with AccorHotels’ world leading brand portfolio to accelerate our dynamic growth trajectory in the Sub-Saharan region. Above all, by this initiative we demonstrate our shared intention to support sustainable development over the long-term on this continent”.
Edited by Peter Needham
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