Africa Becoming Key Market For U.S. Hotel Chain Expansions

Africa Becoming Key Market For U.S. Hotel Chain Expansions

U.S.-based Hyatt hotels is trying to strengthen its portfolio in Africa by developing new properties under different brands, according to a blog on Nasdaq.com.

Africa has also been among the key markets for another U.S. hotelier, Starwood Hotels & Resorts Worldwide Inc., which has around 40 hotels in 15 African countries.

Hyatt, which has six properties in Africa, has launched two more under Park Hyatt and Hyatt Regency brands in Tanzania, signing a management deal with ASB Holdings Ltd., a Dubai-based holding company. The two properties – Park Hyatt Zanzibar and Hyatt Regency Arusha – are scheduled to open in 2014 and 2016.

Located on the Zanzibar City or Stone Town – a UNESCO world heritage site – Park Hyatt Zanzibar is close to the seashore and will feature 70 guestrooms along with other amenities.

Hyatt Regency Arusha is positioned at central Arusha in northern Tanzania. With 144 guestrooms, its closeness to Tarangire National Park and Mount Kilimanjaro is expected to help it attract business as well as leisure travelers.

Three more Hyatt properties are in the pipeline including Park Hyatt Marrakech and Hyatt Place Taghazout in Morocco, and Hyatt Dakar in Senegal. Both Marrakech and Taghazout are slated for a 2014 opening, while Dakar is scheduled to open for business in 2016.

Tanzania is growing as a tourist destination, the report said. Close to a million tourists visited the country in 2012. These factors justified Starwood’s decision to expand in Tanzania.

Africa tourism industry is a major revenue driver for many African nations. According to U.N. World Tourism Organization, tourism in Africa grew at an average rate of 4 percent in the first half of 2013.

Other hoteliers expected to perform well include Intercontinental Hotels Group and China Lodging Group, Ltd., the report said.