Included in this roundup of news from the MEA region: Zimbabwe could launch $3.5-billion fund; AHIC coverage; and more.
Each week, Hotel News Now features a news roundup from a different global region. Today’s compilation focuses on Middle East/Africa.
HNN covers AHIC
The Arabian Hotel Investment Conference, one of the largest hotel conferences of the year in the Middle East region, recently took place in Ras Al Khaimah, United Arab Emirates, and Hotel News Now’s Terence Baker was there for all the festivities.
“I am struggling with the fact that all our investment is in software, when we should be concentrating on hardware. We build the bricks and mortar, and we expect the operators to provide that added value,” said Jalil Mekouar, CEO of hotels at Majid Al Futtaim.
Zimbabwe launching $3.5b wealth fund
Bloomberg reports the government in Zimbabwe “may start a sovereign wealth fund” of $3.5 billion in order to “revive ailing industries and rebuild aging infrastructure.”
“Post-election, we should be able to put in place a sovereign wealth fund or an export-related bond and we think we should be able to raise between $2.5 billion and $3.5 billion anchored on trade receivables,” Deputy Finance Minister Terence Mukupe told the Zimbabwe Broadcasting Corp.
Q1 performance metrics
STR, parent company of HNN, has released the key performance metrics for the first quarter of 2018 for the Middle East/Africa region, which showed revenue decreases in the Middle East but across-the-board increases in Africa.
Middle Eastern hoteliers saw a modest year-over-year increase in occupancy, up 0.9% to 70.6%, but it was enough to overcome an average-daily-rate drop of 4.5% to $163.76. Those numbers combined to a 3.7% decrease in revenue per available room to $115.62.
African hotels saw a 5.2% increase in occupancy to 58.9%, with ADR climbing 6.6% to $125.18 for a combined RevPAR increase of 12.1% to $73.73.
Deals and development
• AccorHotels announced an acquisition of a 50% stake in South Africa-based Mantis Group.
Compiled by Sean McCracken.