BERLIN — South Africa-based Kasada Capital Management has $500 million, raised in 2019, to spend in Africa; and managing partner and CEO Olivier Granet said he is confident that capital will help catapult hotels and hospitality in the continent to higher levels.
The real estate private equity firm's principal partners are the Qatari sovereign wealth fund and hotel firm Accor.
Speaking exclusively to Hotel News Now at the International Hotel Investment Forum, Granet said his goal is “to bring the scale and expertise to this market … where the market is often considered to be under-supplied, very fragmented and with a lack of international brands.”
He said no one is under any illusions as to the challenges in the continent, with access to debt probably leading the list of concerns.
He said Kasada was created to “bridge the gap between local investors, the large institutions, the construction and all else you need to build your hotel, where it is very difficult to do so as a stand-alone.”
Granet said Kasada is present in eight countries in Africa and has the appetite to enter more.
“There is still a lot to do. Our view was really to be in all key cities in sub-Saharan Africa with prime locations and, again, to be a solutions provider and to demonstrate that in Africa you can find the same type of quality experience for the guest and, at the same time, the best ESG practice,” he said.
Another focus for Granet is creating more leisure markets in the country via marketing and support initiatives and even in the creation of experiences, within the hotels themselves or via other demand generators.
“We have some markets developing very well at 80%-[plus] occupancy, but the rate is hurt because of [lower] airlift, because of cost of transportation, because of passport and visa issues,” he said.
For more of Granet’s comments, watch the video above.