How hotel investors are hedging against FX crisis in Africa
As the foreign exchange crisis continues to permeate, Ekene Nnabuihe, the CEO of Boulevard Hotel Group, says foreign hotel brands are partnering local players in Africa to better manage their portfolios. He further notes that this move has seen the rise in the number of local hoteliers on the continent, and urges new local entrants to carryout adequate feasibility studies for proper pricing.
Fri, 16 Aug 2024 11:56:32 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- The trend of foreign hotel brands partnering with local players is on the rise in Africa, leading to the growth of local hoteliers and new opportunities for investors in the hospitality sector.
- Thorough feasibility studies and proper pricing strategies are crucial for navigating challenges such as regulatory hurdles, financing difficulties, and manpower recruitment issues in the industry.
- Local operators like Boulevard Hotel Group are expanding their presence across Africa, focusing on regional growth and collaboration to drive pan-African investment in the sector.
The hotel industry in Africa is undergoing significant changes as the foreign exchange crisis continues to impact the region. Ekene Nnabuihe, the CEO of Boulevard Hotel Group, highlighted the trend of foreign hotel brands partnering with local players to better manage their portfolios. This strategy has led to an increase in the number of local hoteliers across the continent, presenting new opportunities and challenges for investors in the hospitality sector. Nnabuihe emphasized the importance of conducting thorough feasibility studies to establish proper pricing strategies, especially as the industry faces various obstacles such as regulatory hurdles, financing difficulties, and infrastructural constraints. He also noted the impact of exchange rates on manpower recruitment, stressing the need for local operators to adapt to the changing landscape. As the industry evolves, local players like Boulevard Hotel Group are expanding their presence beyond Nigeria, with plans to establish upscale hotels in major African cities like Nairobi and Entebbe. The focus on regional growth and collaboration reflects a broader shift towards pan-African investment strategies in the hospitality sector.
Get this delivered to your inbox, and more info about about our products and services. By signing up for newsletters, you are agreeing to our Terms of Use and Privacy Policy.
