According to its author, this is one of the largest cross-border merger-acquisition operations in the African hotel industry. Kasada, a specialist in hotel investment on the continent, has acquired from the hands of AccorInvest a portfolio of eight hotels in Côte d'Ivoire, Senegal and Cameroon. Objective: contribute to the revival and growth of a promising sector for the regional economy.

Signs of recovery in the African hotel industry? Advised by Kasada Capital Management, an investment platform dedicated to the hotel industry in sub-Saharan Africa, Kasada Hospitality Fund has just acquired from AccorInvest a portfolio of eight fully operational hotels, i.e. 1,602 rooms, in Côte d'Ivoire, Senegal and Cameroon, announces the firm this Tuesday, January 19. While the terms of the deal have not been specified, Kasada points out that this transaction represents one of the largest cross-border M&A operations in the hotel sector on the continent. "Contributing to growth in a promising region" "This is an exceptional portfolio of hotels covering all market segments and which is perfectly aligned with Kasada's investment strategy", said Olivier Granet, Managing Partner and CEO of Kasada, stressing that the group, through this acquisition, intends "to contribute to the growth of the hotel sector in this promising region". Read also: Olivier Granet: “The post-crisis hotel sector in Africa will be very different from that of March 2020” The hotel sector which has been most struck down by the crisis caused by the Covid-19 pandemic is trying to be reborn from its ashes. And while international travel is still limited due to restrictive measures, Kasada, through these new investments, intends to position itself in favor of intra-regional travel, the signs of which have recently been palpable. “Despite the exceptionally challenging global macro-economic conditions, Kasada is keen to invest in and support the African hospitality sector even as it begins to adapt to new market expectations,” said David Damiba, Managing Partner and CIO of Kasada. “As long-term investors, adds Granet, we are committed to implementing new ESG standards [...] in order to guarantee sustainable growth in this market. […] We can have a positive impact by providing much-needed capital at a critical time.” Markets with strong ambitions In Côte d'Ivoire, where Kasada has taken over Pullman, Novotel, Ibis Plateau and Ibis Marcory, tourism represents 6.5% of GDP. But the national strategic plan for tourism development called "Sublime Côte d'Ivoire" aims to increase this contribution of GDP to 8% and transform the country into the fifth African tourist destination by 2025. More than 12 billion dollars of investment have already been mobilized and several projects are in progress. For economic recovery, the authorities are counting on this sector. Also read: Elcia Grandcourt: “African tourism will recover from the Covid-19 crisis” Neighboring Senegal, where the Pullman, Novotel and Ibis in Dakar are coming under the control of the Africa-based investment company of the South, knows almost a tourist tradition with a contribution of 10% to the GDP. The government is taking measures to promote the recovery of the sector, as recently requested by the Council of Ministers by President Macky Sall. In Cameroon, the authorities have recently expressed a certain desire to take advantage of the enormous tourism potential of this Central African country, even if the budgets allocated to the sector are still extremely modest compared to the stated ambitions. Here Kasada is positioned the two Ibis hotels of Douala and Yaoundé. French-speaking Africa and hotel investors Long remained the poor relation of hotel investment on the continent, French-speaking Africa therefore tends to arouse more interest from investors, probably thanks to the various mobilizations initiated shortly with the Covid , with in particular forums bringing together the sector in French-speaking capitals and calls from these countries to the financial world. Moreover, in an interview with La Tribune Afrique at the beginning of 2020, Olivier Granet shared the "very positive vision commonly shared by players in the sector about the hotel markets in French-speaking Africa". “For example, he illustrated, a city like Dakar is known and appreciated by hotel investors. The Senegalese capital represents the best-performing market in sub-Saharan Africa with occupancy rates of around 70%, higher than what is traditionally observed on other African markets. Abidjan presents strong ambitions for the development of tourism and the attractiveness of its destination with a global plan to improve infrastructure and the reception of visitors”.