Hotels in mixed-use projects more successful in Africa

Hotels in mixed-use projects more successful in Africa
In H1 2019, the region recorded a 42% increase in the value of mixed-use property transactions
Published: 17 September 2019 - 12:15 p.m.
By: Priyanka Praveen
Mixed-use projects are key to funding hotel development in Africa, a study revealed. According to data by real estate firm JLL, people seeking finances for a new project in the region are more successful if the hotel is part of a mixed-use development.

In H1 2019, the region recorded a 42% increase in the value of mixed-use property transactions, with other sectors facing a decrease in value. Transactions in the hotel sector decreased by 18%, while offices went down by 4% and industrial sector was down by 6%, the study revealed.

Commenting on this trend, Xander Nijnens, Executive Vice-President, JLL Sub-Saharan Africa said: “Diversifying risk by including alternative types of property, commercial, retail, hotel and branded residences, in one development, provides comfort to financiers due to the diverse and more consistent income streams generated. Branded residences are also increasing in prevalence because they provide up-front cash inflows and a more predictable source of revenue than one gets from a hotel alone.”

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