Aiming to create the number one sustainable hospitality fund dedicated to Africa, the hospitality arm of the Qatar Sovereign Wealth Fund, Katara Hospitality, and AccorHotels on Monday announced the creation of a US$1 billion investment fund for 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 years, with additional financing capacity reached through leverage and co-investments.
The new fund will target greenfield projects, brownfield projects and conversions of existing hotels through acquisitions. Approximately 40 hotels (around 9.000 rooms) will span across AccorHotels brands, including residences.
The Qatar Investment Authority is already Accor’s second largest shareholder with a 10.17% stake and the chairman of Katara Hospitality, Sheikh Nawaf bin Jassim bin Jabor Al-Thani, is on the board of AccorHotels.
With the International Monetary Fund forecasting economic growth in sub-Saharan Africa of 3.4% this year, up from 2.8% in 2017, numerous global hotel companies are setting their sites on the continent. Accor already operates 114 hotels in Africa including 43 in sub-Sahara Africa, and Hilton has stated plans to invest US$50 million over the next five years in the region.