PODCAST: African hotel investment resurgence: quality over quantity

Post-pandemic, Africa's hotel development landscape has transformed significantly with a focus on quality projects led by experienced investors. Wayne Godwin, CEO of JLL Africa, shared key insights on continental hotel investment trends during a recent Moneyweb’s Property Pod interview.

"What we saw have seen from an Africa perspective was is somewhat of a cleaning out of development pipeline that was are not necessarily realistic," notes Godwin. "Promoters who are more experienced and stronger are the ones that are active."

The Indian Ocean remains a strong market, particularly Mauritius and Seychelles, with Zanzibar emerging as a growing destination. Morocco has seen increased activity, attributable to supportive government tourism policies creating enabling environments for investors.

Safari lodges are attracting unprecedented investor interest despite traditionally being considered challenging assets for institutional capital. "You cannot replicate Africa's safari option anywhere else in the world," Godwin emphasizes.

Cape Town remains the primary investment focus in South Africa due to its balanced demand profile across domestic, corporate, and international segments. However, Godwin notes a "flight to quality" trend across major metropolitan areas.

"New, well-looked after hotels in the centre of Rosebank or Sandton are performing well, but hotels on the periphery without recent capital investment are struggling."

The Collins Group and Club Med development on South Africa's North Coast represents a milestone project that could catalyze further resort development along the coastline.

JLL Africa maintains offices in Johannesburg, Cape Town, Nairobi, Lagos, Casablanca, and Cairo, providing regional insights with global perspective. For sustainable hotel investment in Africa, Godwin stresses the importance of carefully selecting locations, finding appropriate partners, and developing solid investment theses.

"You've got to be selective and strategic in finding the right street corners, the right partners, and the thesis has to be a lot more solid," says Godwin.