REGIONAL SPOTLIGHT: AFRICA 13th November 2017 Introduction to - - PowerPoint PPT Presentation

REGIONAL SPOTLIGHT: AFRICA

13th November 2017

Introduction to Africa

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Africa: Key Facts

Introduction 54 Countries Key Regions

• North Africa
• West Africa
• South Africa
• East Africa

The East African Community (EAC) is six (6) Partner States, comprising Burundi, Kenya, Rwanda, South Sudan, Tanzania and Uganda.

Source: W Hospitality

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African Serviced Apartment Deals

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Countries

2,696

Rooms

30%

On-Site

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Cities

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Brands

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Deals

Introduction

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Countries with Key Supply & Pipelines

Algeria Egypt Morocco Nigeria Congo Gabon Kenya Tanzania Uganda South Africa

Introduction

Source: W Hospitality

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Africa: Serviced Apartment Brands

Introduction

Source: W Hospitality

Kenya: Trends in Nairobi

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Tourism Snapshot

Kenya

Location Number of Complexes Number of Units Proposed Supply % increase Westlands 30 1,013 346 34% Kilimani 26 833 509 61% Upper Hill* 13 412

• Valley Arcade

12 351 88 25% Kileleshwa – State House – Riverside 11 422 161 38% CBD 3 269

• Runda - Gigiri -

Ngara 4 177 106 60% TOTAL 99 3,477 1,210 35%

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Supply of Serviced Apartments: 2017

Kenya: Nairobi

*Mixed used developments in Upper Hill have not determined the exact count of serviced apartments in the development

2014 2017 % Change Supply - # of keys 2,790 3,477 25% Average Units per Complex 30 42 40% Occupancy 65% 71% 9% Average Gross Monthly Rate (1BR) $2,100 $1,700 23%

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Industry Growth

Kenya: Nairobi

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Distribution of Supply

Trends

Future Trends

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No. Name of Complex Location Number of Units Planned Completion 1 Radisson Blu Residences State House 123 2018 2 Gem Suites, Riverside Riverside 38 2018 3 Hilton Tower Upper Hill 40 floors 2020 4 Montave Upper Hill 22 floors 2017 5 88 Nairobi Upper Hill 88 2019 6 The Soho Kilimani 70 2018 7 Myra Residences Kilimani 72 2017 8 Kiluwa Hotel Apartments Kilimani 84 2018 9 9 Oak Hotel Residences Kilimani 120 2019 10 Britam Kilimani Apartments Kilimani 163 2019 11 Avic Complex Westlands 4 apartment towers - 24, 28, 24 & 25 floors 2020 12 Milowski Suites Westlands 100 2020 13 Capital M Westlands 120 2019 14 Le Mac Westlands 126 2018 15 Tamarind Tree Suites Rosslyn 106 2018 TOTAL (estimate) 1,210

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Supply Under Construction

Conclusion

• DEMAND: What factors have led to an increase in demand,

particularly in Nairobi?

• SUPPLY: What comments can you make about increased

supply?

• FINANCING: What are the various forms of financing the

development of serviced apartments?

• YIELDS: What are the common yields being marketed and what

is the reality of yields being realised?

• OPPORTUNITIES: What are the current brands in the market?

Are there opportunities for new entrants? If so, where and what level?

• CHALLENGES: What are the challenges plaguing this new

sector?

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Topics

Discussion

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