Radisson expands African footprint
The Radisson Hotel Group plans to open more than 12 hotels across Africa this year as part of its growth and development strategy for the continent. Its already signed 5 new hotels across Ethiopia, Senegal, Ghana and Tunisia even as concerns around the Covid-19 pandemic in Africa, the least vaccinated continent in the world, continue to persist. Joining CNBC Africa is Ramsay Rankoussi, Vice President of Development Africa & Turkey at the Radisson Hotel Group.
Thu, 14 Apr 2022 12:07:33 GMT
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AI Generated Summary
- The Radisson Hotel Group is set to open more than 12 hotels in Africa this year, signaling confidence in the continent's hospitality market.
- Supply chain disruptions have led to a substantial increase in construction costs for the hotel industry, with materials like steel and concrete seeing significant price hikes.
- Consumer behavior is changing post-pandemic, with a focus on safety, privacy, and social distancing shaping hotel design and operations.
The Radisson Hotel Group is setting its sights on significant expansion in Africa, with plans to open more than 12 hotels across the continent this year. This move is part of the hotel group's growth and development strategy for Africa, which has already seen the signing of five new hotels in countries like Ethiopia, Senegal, Ghana, and Tunisia. Despite ongoing concerns around the COVID-19 pandemic in Africa, which remains the least vaccinated continent in the world, the Radisson Hotel Group is forging ahead with its ambitious plans.
Ramsay Rankoussi, the Vice President of Development Africa & Turkey at the Radisson Hotel Group, shared insights into the timing of the expansion and the challenges posed by the pandemic. Rankoussi highlighted that 2021 was a year of acceleration for the group, and they aim to maintain that momentum in 2022. He expressed confidence in the positive signs of recovery in the travel industry, both globally and across Africa. The return of travel demand and the resilience of the hospitality sector have bolstered the group's outlook.
One of the key challenges facing the hotel industry, particularly in the current environment, is the significant increase in construction costs. Supply chain disruptions have resulted in inflated prices for essential materials like steel and concrete, leading to an estimated 25% cost increase compared to pre-pandemic levels in 2019. Despite these challenges, the Radisson Hotel Group is focused on managing costs and adapting to market conditions by offering a range of brands from economy to luxury segments.
The pandemic has also prompted a shift in consumer behavior, with a growing preference for leisure travel and a heightened emphasis on safety and space. Rankoussi emphasized the importance of adapting hotel designs to meet these changing demands, including implementing strict hygiene protocols and ensuring social distancing measures are in place. The group is committed to providing a safe and comfortable experience for guests, with a focus on privacy and social intimacy.
Looking ahead, the Radisson Hotel Group remains optimistic about the future of business and leisure travel in Africa. Despite the challenges posed by the pandemic, the group's existing portfolio is showing signs of recovery, with some countries already surpassing pre-COVID booking numbers. The easing of travel restrictions and increased accessibility are expected to drive further growth in the sector.
In conclusion, the Radisson Hotel Group's expansion plans in Africa signal a vote of confidence in the continent's hospitality market. By navigating the challenges posed by the pandemic and adapting to evolving consumer preferences, the group is positioning itself for long-term success in the region.