Mubasher: Katara Hospitality, the government-owned organization, on Monday announced that it has signed an agreement with Accor Hotels, Europe’s biggest hotels group, in order to set up a $1 billion investment fund.
The fund targets the hotels and hospitality sectors in sub-Saharan African countries, according to Katara’s statement on its website.
The fund will amount to up to $500 million in equity, of which Katara Hospitality and AccorHotels will contribute respectively up to $350 million and $150 million over the next 5-7 years, with additional financing capacity reached through leverage and co-investments.
It will target greenfield projects, brownfield projects and conversions of existing hotels through acquisitions, in a region which offers robust growth opportunities, data showed.
“We view this fund as an excellent vehicle to take advantage of this compelling markets by teaming up with AccorHotels who provide international hotel brands and operations with strong capabilities,” Sheikh Nawaf bin Jassim bin Jabor Al Thani, chairman of Katara Hospitality, commented.
Around 40 hotels with a capacity of 9,000 rooms will be established across the wide range of internationally renowned brands of Accor Hotels, from economy to luxury segments, including residences.
Under the initiative, both entities aim at creating the number one sustainable hospitality fund dedicated to Africa, bringing support to job creation, training, in addition to the transfer of skills, according to the statement.
“We will match the expertise of Katara Hospitality together with AccorHotels’ world leading brand portfolio to accelerate our dynamic growth trajectory in the Sub-Saharan region,” Sébastien Bazin, chairman and CEO of AccorHotels, said.
