REGIONAL SPOTLIGHT: AFRICA 13th November 2017 Introduction to - PowerPoint PPT Presentation

REGIONAL SPOTLIGHT: AFRICA 13th November 2017

Introduction to Africa 3

Introduction Africa: Key Facts 54 Countries Key Regions • North Africa • West Africa • South Africa • East Africa The East African Community (EAC) is six (6) Partner States, comprising Burundi, Kenya, Rwanda, South Sudan, Tanzania and Uganda. 4

Introduction African Serviced Apartment Deals 10 13 8 Countries Cities Brands 17 30% 2,696 Rooms On-Site Deals Source: W Hospitality 5

Introduction Countries with Key Supply & Pipelines Algeria Egypt Morocco Nigeria Congo Gabon Kenya Tanzania Uganda South Africa Source: W Hospitality 6

Introduction Africa: Serviced Apartment Brands Source: W Hospitality 7

Kenya: Trends in Nairobi 8

Kenya Tourism Snapshot 9

Kenya: Nairobi Supply of Serviced Apartments: 2017 Number of Number of Proposed Location % increase Complexes Units Supply Westlands 30 1,013 346 34% Kilimani 26 833 509 61% Upper Hill* 13 412 - - Valley Arcade 12 351 88 25% Kileleshwa – State House – 11 422 161 38% Riverside CBD 3 269 - - Runda - Gigiri - 4 177 106 60% Ngara TOTAL 99 3,477 1,210 35% *Mixed used developments in Upper Hill have not determined the exact count of serviced apartments in the development 10

Kenya: Nairobi Industry Growth 2014 2017 % Change Supply - # of 2,790 3,477 25% keys Average Units 30 42 40% per Complex Occupancy 65% 71% 9% Average Gross Monthly Rate $2,100 $1,700 23% (1BR) 11

Trends Distribution of Supply 12

Future Trends 13

Conclusion Supply Under Construction No. Name of Complex Location Number of Units Planned Completion 1 Radisson Blu Residences State House 123 2018 2 Gem Suites, Riverside Riverside 38 2018 3 Hilton Tower Upper Hill 40 floors 2020 4 Montave Upper Hill 22 floors 2017 5 88 Nairobi Upper Hill 88 2019 6 The Soho Kilimani 70 2018 7 Myra Residences Kilimani 72 2017 8 Kiluwa Hotel Apartments Kilimani 84 2018 9 9 Oak Hotel Residences Kilimani 120 2019 10 Britam Kilimani Apartments Kilimani 163 2019 Avic Complex 4 apartment towers - 24, 11 Westlands 2020 28, 24 & 25 floors 12 Milowski Suites Westlands 100 2020 13 Capital M Westlands 120 2019 14 Le Mac Westlands 126 2018 15 Tamarind Tree Suites Rosslyn 106 2018 TOTAL (estimate) 1,210 14

Discussion Topics • DEMAND: What factors have led to an increase in demand, particularly in Nairobi? • SUPPLY: What comments can you make about increased supply? • FINANCING: What are the various forms of financing the development of serviced apartments? • YIELDS: What are the common yields being marketed and what is the reality of yields being realised? • OPPORTUNITIES: What are the current brands in the market? Are there opportunities for new entrants? If so, where and what level? • CHALLENGES: What are the challenges plaguing this new sector? 15

16