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AccorHotels and Qatar-based global hotel operator, Katara Hospitality, have partnered to create an investment fund dedicated to hospitality across various Sub-Saharan African countries.
The fund will amount to up to $500m (£381m) in equity, of which Katara Hospitality and AccorHotels will contribute up to $350 (£266m ) and $150m (£114m) respectively over the next five to seven years.
The investment will target greenfield and brownfield projects and conversions of existing hotels through acquisitions, in a region which the two hotel groups said offers “robust growth opportunities”.
Katara Hospitality and AccorHotels said the investment aims to support to job creation, training, transfer of skills, local supply chain and communities in the region, operating in compliance with UN sustainable development goals.
Sheikh Nawaf bin Jassim bin Jabor Al Thani, chairman of Katara Hospitality, 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.”
Sébastien Bazin, chairman and CEO of AccorHotels, added: “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.”
