Sustaining Africa’s hospitality growth – building beyond the boom

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Joep Schoof | Chief Operating Officer | Valor Hospitality Partners Africa | mail me |


The conversation around African hospitality has shifted. For years, the industry spoke about the continent’s “untapped potential”. Today, that potential is translating into sustained and undeniable growth.

The sector has moved beyond the recovery phase and entered an era of sophisticated expansion that is redefining the global travel map. This momentum also highlights the importance of sustaining growth in Africa through long-term strategies and investment.

Injecting vital capital into local economies

The evidence of this growth appears across the continent. More than 100,000 hotel rooms have recently entered the development pipeline across Africa. Consequently, the ripple effects have become significant.

This scale of expansion does more than fill beds. It injects vital capital into local economies and creates a value chain that supports artisanal craftspeople, independent restaurateurs and professional tour guides. However, as the sector matures, the metric for success has evolved.

Building more properties alone is no longer enough. Instead, the industry must build with intention. To support sustaining growth in Africa, the hospitality sector must align around three critical pillars. These include the needs of the “new guest”, the localisation mandate, and the evolution of the management model.

The shifting demand: understanding the ‘New African Guest’

Before exploring those pillars in greater detail, it is important to understand the shifts driving hospitality growth across Africa. Part of this growth stems from increased travel overall.

In 2024, global tourism recovered to pre-pandemic levels. Furthermore, tourism surpassed those levels in 2025. This recovery partly reflects increased international travel to major African destinations such as South Africa. At the same time, intra-African travel has also increased significantly. Relaxed visa requirements and lower flight prices have largely driven this trend.

Regardless of where these travellers originate, they have contributed to the rise of the “New African Guest”. This guest actively seeks meaningful and hyper-personalised experiences rooted in local culture and heritage. Therefore, operators must innovate beyond standardised service offerings to meet these expectations. They also need flexible and locally attuned operational strategies.

Sustaining growth in Africa will depend heavily on how effectively operators respond to these evolving traveller expectations.

Pillar 1 – The localisation mandate and adaptability

Meeting the needs of the New African Guest requires genuine localisation. Although global standards remain essential, they cannot stand alone. Real value emerges when operators incorporate local sensibilities into the hospitality experience.

This approach forms part of operations through the “Whole World of Local” philosophy. This philosophy combines global expertise with local insights and community integration. The company supports this philosophy with a long-term commitment to the continent.

We have operated in Africa for 11 years and have experienced substantial growth during the past three years. This mandate also demands flexibility and adaptability. Operators must do more than hire local employees. They need to embed businesses within the local culture, supply chain, and aesthetic. In addition, they must adapt global expertise to local realities rather than impose it.

Pillar 2 – The third-party management model

But, very few individual establishments can independently meet the demands of the New African Guest. The required operational changes can involve substantial capital expenditure, especially as the sector expands. At the same time, financing often remains challenging.

We currently manage a portfolio of 14 properties across six African countries. Although the landscape constantly evolves, the company recently transitioned from two properties in Zanzibar and one in Cape Town. Nevertheless, it offset those changes by expanding its advisory work through five additional projects. This agility also appears in its recent development pipeline.

New signings in West Africa and Namibia represent a combined capital expenditure of R1.85 billion, consisting of R1.3 billion and R540 million, respectively.

These developments illustrate why the third-party management model offers an effective solution for the continent. In addition to providing easier access to capital, third-party management companies help separate ownership risk from operational expertise. As a result, they can focus on efficiency, profitability, and long-term asset value appreciation.

Furthermore, this model provides immediate access to global best practices, systems and technology without forcing owners to build those capabilities independently.

The model also enables flexible brand alignment. Within our current portfolio, the company works with multiple global partners. Our IHG Hotels & Resorts and Hilton-affiliated properties demonstrate the company’s ability to scale alongside major global brands while maintaining operational independence.

Pillar 3 – The critical role of the local GM

Based on operational experience, the right hotel general manager (GM) remains critical to delivering this strategy. The GM effectively acts as the “bus driver” who steers the local guest experience.

To succeed in this role, the GM must fit within the local culture and possess the authority to translate global strategy into authentic on-the-ground experiences. However, this requirement does not necessarily mean the GM must be born and raised locally. Instead, success depends on the depth of the GM’s understanding of, and relationships with, the surrounding community.

As a leader, the GM plays a central role in delivering the authentic experiences demanded by the New African Guest. In turn, this leadership supports local employment and broader business success.

Optimism and the road ahead

Ultimately, African hospitality offers substantial reasons for optimism. Despite ongoing global political and economic disruptions, the sector is finally achieving growth that aligns with its long-recognised potential. Nevertheless, long-term success remains far from guaranteed. Businesses within hospitality must continuously adapt to the changing expectations of the New African Guest.

The industry’s strongest opportunity lies in collaboration and strategic partnerships. This includes partnerships with third-party management firms that support owners, investors and communities.

These partnerships help stakeholders navigate the evolving hospitality landscape while sustaining growth in Africa and creating long-term value across the continent’s hospitality ecosystem.


 




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