Kasada Capital Management – through the debut fund, Kasada Hospitality Fund – has acquired a portfolio of eight sub-Saharan African hotels from AccorInvest.
The transaction relates to the Pullman, Novotel, Ibis Plateau and Ibis Marcory hotels in Abidjan, Côte d'Ivoire; the Pullman, Novotel and Ibis hotels in Dakar, Senegal; and the Ibis hotel in Douala, Cameroon.
According to Kasada, the deal is one of the largest cross-border hospitality merger and acquisition transactions in Africa and will see Kasada take control of eight fully operational hotels, comprising 1 602 hotel rooms and focussed on servicing intra-regional business travel in Africa.
AccorInvest is the owner and operator of a property portfolio of more than 880 hotels, owned and leased, across 28 countries in Europe, Latin America and Asia. The sale of the portfolio of hotels in sub-Saharan Africa to Kasada marks the refocusing of its investment strategy on Europe, positioning Kasada better in sub-Saharan Africa.
In taking on full ownership and management of the portfolio, Kasada has committed to implementing new standards in terms of local management teams and environmental footprint while ensuring guest satisfaction levels continue to develop.
It sits at the core of the firm’s strategy to become a solution provider for the sustainable growth of the hospitality market in sub-Saharan Africa.
Kasada points out that the transaction was executed during one of the most challenging periods for the African hospitality sector and is a reflection of the company’s continued commitment to the region and belief in the prospects for its post-Covid-19 recovery.
The economies of Côte d'Ivoire, Senegal and Cameroon have been growing at a steady pace, highlights Kasada, which adds that this is a trend that is expected to continue in the medium term.
“Tourism is one of the most dynamic sectors in the region, representing 10%, 8% and 7% of Senegal, Côte d'Ivoire and Cameroon’s gross domestic product, respectively,” the company states.
While the travel disruptions caused by Covid-19 have impacted international travel, Kasada states that its portfolio will focus on serving intra-regional business travel, which has begun to grow over recent months.
Kasada managing partner and CEO Olivier Granet says the transaction involves an “outstanding” portfolio of hotels covering all market segments and is fully aligned with Kasada’s strategy.
“We look forward to working with the fantastic teams running the portfolio and to help drive the growth of the hospitality sector in this promising region.”
As long-term investors, he says the company is committed to implementing new environmental, social and corporate governance and guest satisfaction standards across its portfolio to ensure the sector sustainably grows to match the expectations of Kasada guests.