After years of delays in hotel construction and infrastructure in Africa, owing to a lack of experienced and knowledgeable investors in the hotel industry, development is starting to gain momentum because of the discovery of minerals in most African countries, says consulting firm HTI Consulting.

Having been involved in more than 200 assignments in Africa since 2003, HTI Consulting CEO Wayne Troughton states that the development in Africa that is starting to take shape has attracted much-needed international investment for the hotel business.

Necessity

“As more minerals are discovered and explored, infrastructure becomes a necessity. This means that people need accommodation, which has forced a stricter and more orderly way of investment in hotel infrastructure projects and developments,” he notes.

Troughton highlights that investors in the hotel business previously lacked the experience in and insight into the business, which led to many unfinished projects and extended delays in the completion of projects because they were inconsistently financed and managed. As a result, projects that would usually take 30 months to complete take between five and seven years to complete.

However, he points out that trends over the past two years have indicated that foreign investment in the industry has been stimulated with more experience and better knowledge of the business, which are positive influences on the hotel industry.

HTI Consulting highlights that, as most developments linked to mineral wealth occur in remote areas, development is decentralising away from major cities to those areas focusing on building three-star and four-star hotels. Lack of development and infrastructure in these areas has led to the need for mixed-use projects around hotel infrastructure that can be linked to shopping malls to ensure convenient living for people.

Massive Wealth

“In the next 15 years, we are going to see a massive amount of wealth in Africa. China has realised the potential in Africa, and other countries outside the African continent are starting to see the growth potential in Africa. “Our role is to source opportunities for such investors where development can occur and ensure that they are viable and sustainable.

“We specialise in the gathering, analysis and interpretation of sensitive market and financial data; the production of market and financial feasibility and viability studies, business plans and marketing strategies; and project concepts for hotel, residential, real estate, leisure, conference and integrated resort developments. “This enables us to nurture long-term business relationships with our clients, providing tailored solutions for every stage of the project’s development,” explains Troughton.

“This enables us to nurture long-term business relationships with our clients, providing tailored solutions for every stage of the project’s development,” explains Troughton

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