Get ready for escalating investments in the sub-Saharan Africa hotel real estate market!
Over the last six months, as capital markets are becoming more and more sophisticated, hotel owners in South Africa have started changing their ways by implementing increasingly dynamic investment strategies. By reviewing their real estate holding strategies, releasing the capital gains on their assets and recycling their equity into new developments and investments, their actions have provided much needed liquidity to the market.
Also contributing to the escalating investments in the sub-Saharan hotel real estate market, is the fact that the high growth in tourism to South Africa has not gone unnoticed to international investors. The recent sale of the Hyatt Regency Johannesburg at $36m to a Middle Eastern investment group has in fact only contributed to strengthen the existing trend of foreign interest in hotel investment opportunities in the Country. Trend which is not only limited to South Africa, but which is also affecting the hotel scene in the Indian Ocean. The improved air access and the fact that the region is now considered a safe tourist destination, has in fact seen a rise in the less mature markets of Seychelles, Zanzibar and Madagascar of Asian and Middle East capital.
The future of both these markets is therefore looking extremely bright for 2017, and everyone will benefit greatly from the number of high quality assets these investments will bring to the region as a whole.