04 Jul Hundreds of Millions of Dollars for Zim Hotels
With more than $300 Million being considered for hospitality projects in Zimbabwe, the sector’s emergence as avehicle for economic growth has captured the attention of local investors, developers and international brands according to Cape Town latest research from hospitalityanalyst, Wayne Troughton, of HTI Consulting.
As one of this year’s top international speakers at the second annual ZimReal Property Forum taking place on 17 July, HTI Consulting’s data is good news for the Zimbabwean economy and real estate sector saysforum host Kfir Rusin.
“There has been a lot of interest in the country as a destination and while the economy has been under pressure, hospitalityis resilient and the market is reporting significant rise in tourists visiting the country in 20 years.”
According to Troughton, the majority of the interest istargeted at Victoria Falls; however, interest is picking up in Harare and Bulawayo from private equity investors and local pension funds investigating opportunities.
“Victoria Falls is seen as a separate economy from Zimbabwe. The node is less impacted by political and economic challenges and the free flowing of foreign exchange enables from a stronger internal economy that other hubs.”
Despite the Falls’ dominance in the sector, the change in government and economic turnaround in 2018 sparked significant interest in the Harare and Bulawayo nodes after years of little or no growth. However,research indicates that real development activity is only likely to be piqued once the economy displays a more sustained and upward trajectory.
In these nodes, current data indicates that the opportunities in Harare and Bulawayo are ideal for larger mid-priced developments for business travelers and conference attendeesranging from 80 – 150 rooms respectively, while private investors are eyeing smaller hotels in suburban locations with lower room counts.
In contrast, the sentiment in Vic Falls is robust and bullish – which is due to increased air connectivity explains Troughton. According to him, the improved access to key nodes such as Harare and Victoria Falls which have aided in growing the tourism industry with Victoria Falls often incorporated into a Southern African circuit due to its connectivity to Cape Town. As he comments, “Air accessibility and the ability to connect with other major destinations in Southern Africa is key to the development and success of the sector.”
This improvement in access has, in part, resulted in numerous international brands once again showing an interest in the market.
“We’ve seen brands having shown interest in the town and undertaking reconnaissance trips post the change in government,” says Troughton.
While the bump in interest by international brands can be attributed to the change in government, the interest in Victoria Falls is also based off actual demand with shortages being reported in peak season. In this current environment, the most attractive opportunities that can be readily accessed are in the midscale conference and high-end luxury markets along quieter sections of the river. The opportunities and data provided by HTI Consulting echo speaker and international delegate interest in the sector which remains bullish despite economic uncertainty says Rusin.
“Obviously, we’ve seen the currency news, but hospitality is resilient in Africa and we’re seeing a number of top international brands registering to attend for ZimReal to learn more, network and do business.”
Their presence is certain to result in a number of discussions between investors, developers and public sector leaders, ends Rusin.
“The number of brands, investors and developers interested in hospitality provides hope for a sustained sector turnaround and hopefully can be the spark that will drive the economy forward. We’re looking forward to debates, business match making and great presentations from a number of speakers from the public and private sector.”
Taking place on 17 July 2019 at the Meikles Hotel in Zimbabwe, the ZIMREAL Property Investment Forum is a conference centred around the Zimbabwean real estate sector.
This one-day forum is a unique platform for senior local and regional investors, developers and practitioners together with their public sector counterparts to develop a strategic roadmap to stimulate economic growth through property investment and development. Featuring keynote addresses, interactive panel discussions and case studies from local and regional experts, this high-calibre event provides the premier platform for networking, deal making and insights for the local property market.
New to ZimReal:
THE ASSET MANAGEMENT, VALUATION, DEVELOPMENT &RAISING FINANCE MASTERCLASS
As the leading annual industry event for Zimbabwe’s property sector, the ZimReal Property Investment Forum is pleased to offer this high-value one-day, University of Cape Town accredited: Asset Management, Valuation, Development & Raising Finance Master Class on 18 July 2019.
Powered by API Training, a division of API Events the host of ZimReal, and training service provider Divercity Property Solutions and UCT, the Master Class is an intensive and high-value learning experience for investors, developers, property practitioners, and professional services’ professionals for whom dealing with these property fundamentals is part of their business.
About API Events:
API Events is a pan African producer of B2B real estate summits. Currently the company host nine events across Africa which take place in Zimbabwe, Zambia, Botswana, Mozambique, South Africa, Kenya, Lagos and Cote D’ Ivoire.