Katara Hospitality and AccorHotels have announced the creation of an investment fund with a targeted investment capacity of over US$1 billion dedicated to hospitality in various sub-Saharan African countries.
The fund will amount to up to US$ 500 million in equity, of which Katara Hospitality and AccorHotels will contribute respectively up to US$350 million and US$ 150 million over the next five-to-seven, with additional financing capacity reached through leverage and co-investments.
It will target greenfield projects, brownfield projects and conversions of existing hotels through acquisitions, in a region which offers robust growth opportunities.
Approximately 40 hotels (around 9,000 rooms) will span across the wide range of internationally renowned brands of AccorHotels, from economy to luxury segments, including residences.
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 sheikh Nawaf bin Jassim bin Jabor Al-Thani, chairman of Katara Hospitality, and Sébastien Bazin, chairman of AccorHotels.
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.”