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Alliance Hospitality

New Neighbors in Town: Hospitality Outlook Africa

As the world is slowly coming out of the COVID-19-induced havoc, existent hotels are pondering the best recovery strategies, trying to restructure debt and experimenting with the new market segments. As much as it is complicated, their predicament is quite well understood with the sole purpose of losing as little money as possible and getting back to the targeted RevPAR.


What may prove to be a more interesting dilemma is the opening decision developers will soon have to make regarding the properties in the pipeline. Given the unprecedented amount of uncertainties in the face of travel restrictions and quarantine policies the hotel owners are currently experiencing, forecasting the future profitability of the unopened assets can become harder than expected. Additionally, the global hospitality industry is most probably set to experience market oversupply due to the dip in overall demand. Is a new hotel worth a shot in such circumstances? Read more...

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