Spotlight on Africa - Q1 2021

Covid-19 is expected to impact the hotel sector in Sub-Saharan Africa for years to come according to JLL’s Hotels & Hospitality Group.

“The issue of recovery in travel is important, as it is the lifeblood to the sector. It is encouraging to see investors and hotel operators begin to express more confidence in the fundamentals of the region. However, many hotel owners have taken out loans or used replacement reserves to cover their working capital requirements, which will need to be paid back from profits once the sector begins to recover and the real impact for owners will last beyond the resumption of normal travel” says Wayne Godwin, Senior Vice President, JLL Hotels and Hospitality Sub-Saharan Africa.

This is not only a Sub-Saharan African story it is also a trend that will impact owners around the globe. JLL expects to see an increase in the number of hotel transactions that occur in Africa over the next few years, as many owners need to dispose of non-core assets and realise cash in the absence of the government support packages that have been available in other parts of the world.