A $1 billion investment fund dedicated to hospitality in sub-Saharan African countries is being created by AccorHotels and Qatar-based firm Katara Hospitality.
The fund will target greenfield and brownfield projects together with conversions of existing hotels through acquisitions, in a region described as offering “robust” growth opportunities.
Around 40 hotels with 9,000 rooms will span across the range of AccorHotels brands, from economy to luxury, including residences.
The fund will amount to up to $500 million in equity, of which Katara Hospitality and AccorHotels will contribute respectively up to $350 million and $150 million over the next five to seven years.
Additional financing capacity will be reached through leverage and co-investments, according to the tow companies.
Government-owned Katara Hospitality is the hospitality arm of the Qatar Sovereign Wealth Fund, established to identify strategic investment opportunities in other markets.
AccorHotels chairman and chief executive Sebastien Bazin said: “I am thrilled to announce this 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.”
Katara Hospitality chairman, Nawaf bin Jassim bin Jabor Al Thani, said: “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.”