Asset manager Duet Group has signed a partnership agreement with Bouygues Batiment International to develop hotels in sub-Saharan Africa.
Duet Africa Hotels will develop, design, build, own, operate and exit a portfolio of internationally branded midscale and upscale business hotels.
The venture will target fast-growing and resource-rich countries such as Nigeria, Ghana, Ivory Coast, Ethiopia, Tanzania, Mozambique, Kenya and Uganda.
The focus will be on greenfield developments or significant refurbishments in stand-alone or mixed-use format with office, residential and retail.
Duet and Bouygues are entering the sector in sub-Saharan Africa in light of the region’s sustained economic growth of more than 5% GDP growth pa, the current favourable hotel demand-supply imbalance and the high barriers to entry.
Hotels in the pipeline are typically subject to long gestation periods owing to funding issues and poor execution capabilities, with 62% of the hotel rooms slated to open in 2015 not yet on site.
Jean-Marc Grosfort, the former chief development officer, Middle East and Africa, for Marriott International, will be the non-executive chairman of Duet Africa Hotels.
Henry Gabay, co-founder and chief executive of Duet Group, said: “We are excited about establishing this unique venture to tap a clear growth opportunity in the hotel sector in sub-Saharan Africa that is supported by strong trade and consumer trends.”
