Marriott International plans further expansion in Africa

Marriott International has announced plans for further expansion in Africa with the recent signing of seven new hotels. The move aligns with the company's goal to have over 200 hotels with 37,000 rooms open or in the works by 2022, representing about $8.5 billion in capital investment. Alex Kyriakidis, President & CEO of Marriott International for the Middle East & Africa, shared insights on the company's strategy and vision during a recent interview with CNBC Africa. Kyriakidis highlighted the impact of currency fluctuations on Marriott's operations in Africa. He noted that devaluations in Egypt and South Africa had actually benefited Marriott by attracting more travelers to these destinations. The devaluation of the Egyptian pound led to increased hotel occupancy as travelers from African and Middle Eastern countries, particularly the Gulf States, found Egypt to be a more affordable and attractive destination. Similarly, the weakening of the South African rand made the country a sought-after destination, resulting in high demand for Marriott's properties. The decision to acquire Protea Hotels, a major player in the African hospitality industry, was a strategic move that proved successful for Marriott. Kyriakidis explained that the acquisition allowed Marriott to strengthen its position in Africa and leverage Protea's experienced workforce to expand its presence on the continent. With over 35,000 rooms in operation and under development in Africa, Marriott is focused on catering to diverse market segments, including the select service and budget sectors. Addressing the challenge posed by emerging trends such as the sharing economy, Kyriakidis emphasized Marriott's commitment to providing a unique hospitality experience that focuses on guest well-being and personalized service. While acknowledging the growth of platforms like Airbnb, he expressed confidence in Marriott's business model and its ability to meet the evolving needs of the younger generation of travelers in Africa. The issue of talent development and localization is essential to Marriott's growth strategy in Africa. Kyriakidis highlighted the importance of training and sourcing local talent to operate Marriott's hotels successfully. By partnering with institutions like the Akilah Institute in Rwanda, Marriott has been able to train and employ local individuals, contributing to both the company's success and the empowerment of local communities. Looking ahead, Marriott remains optimistic about the potential for growth in Africa's hospitality sector. With plans to expand its footprint in more countries and introduce new hotel brands, Marriott International is poised to play a leading role in shaping the future of hospitality on the African continent.