Rwanda’s hotel industry enjoys steady growth

Rwanda’s hotel industry continues to see steady growth, with the African Hotel Report 2017 revealing an 8.8% increase in the value of hotels over the past eight years. Andrew McLachlan, Senior Vice President for Business Development for Carlson Rezidor, sheds light on the industry's growth, stability, and expansion in a recent CNBC Africa interview. McLachlan discusses the impact of recent events, such as the elections in Kenya, on investor sentiment and hotel performance. While the election period led to a slowdown in the last quarter of 2017, McLachlan remains optimistic that stability will return, paving the way for a strong finish to the year. Rwanda has seen a surge in new high-quality hotels, including Radisson Blu Hotel, Park Inn by Radisson, and Marriott, attracting both local and international investors. The Kigali Convention Centre, managed by Carlson Rezidor, has emerged as a significant player in the African market, positioning Kigali as a key destination for conventions and events. McLachlan emphasizes the long-term view of hotel development, noting that East Africa, despite facing challenges, offers vast opportunities for growth due to the under-supply of quality hotels. The introduction of new hotel brands like Radisson Red and Corvus collection presents an exciting prospect for the industry, targeting the upscale lifestyle market and luxury segment. With plans to expand aggressively across Africa, Carlson Rezidor aims to introduce at least 10 Radisson Red hotels and luxury properties within the next five years. McLachlan highlights the resilience of the East African hotel industry compared to West Africa, attributing it to a more sophisticated hospitality market and untapped potential for growth. Markets like Nigeria and Ethiopia remain key focus areas for Carlson Rezidor, with strategic plans to diversify their portfolio and cater to varying economic conditions. Overall, Rwanda's hotel industry stands out as a success story in Africa, with a promising outlook for the future.