NAIROBI: Hilton Worldwide Holdings plans to more than double its hotels in Africa in the next five years by mainly striking deals with existing hotels for conversion into its brand, its chief executive said.
International chains, including Marriott International and Hyatt Hotels, have been increasing their investments in Africa, which has some of the world’s fastest growing economies and a rising middle class.
Hilton plans to introduce its Curio Collection, an upscale hotel brand, on the continent, starting with a hotel at Lagos airport in Nigeria, Chris Nassetta, the company’s president and CEO, said.
“This hotel is a part of our strategy to connect guests to key cities and airport locations across the region,” he said in a statement issued on the sidelines of a hotel industry meeting in the Kenyan capital.
The continent continues to undergo rapid urbanization, with the United Nations forecasting that the world’s 10 fastest-growing cities will all be in Africa by 2035, he said.
“Hilton is seeing strong demand for its brands across the continent and expects to open eight hotels in total across Africa this year,” the company said.
The Mclean, Virginia-based firm has operated in Africa, where it has 41 open hotels and 53 in development, since 1959.
The pipeline of new facilities is part of its Africa growth initiative, launched last year, which involves the investment of $50 million over five years.
It will result in Hilton starting operations in countries where it does not have a presence such as Botswana and Rwanda.
Other big international hotel groups, including Radisson and Kempinski, are estimated to have about a third of the available room capacity on the continent.
The rest are independently-run hotels, offering opportunities to global operators to strike deals with their local counterparts, industry executives say.
Hilton to double hotels in Africa in next five years
Hilton to double hotels in Africa in next five years
- International chains, including Marriott International and Hyatt Hotels, have been increasing their investments in Africa
- The pipeline of new facilities is part of its Africa growth initiative, launched last year
Closing Bell: Saudi main market edges up to 11,458 points
RIYADH: Saudi Arabia’s Tadawul All Share Index closed Wednesday at 11,458.11, up 0.67 percent, or 76.28 points, driven by selective buying in real estate, insurance, and healthcare stocks.
The Nomu Parallel Market Index also finished higher, rising 0.44 percent to 23,855.01, while the MSCI Tadawul 30 Index added 0.69 percent to close at 1,543.87.
Trading activity was moderate, with total volume reaching 280 million shares and a traded value of SR6.32 billion ($1.68 billion).
On the gainers’ side, Marketing Home Group for Trading Co. surged 8.97 percent to SR59.50, leading advances. Al Ramz Real Estate Co. rose 6.42 percent to SR68.75, while Bupa Arabia for Cooperative Insurance Co. added 5.64 percent to close at SR164.80.
Al Aziziah REIT Fund gained 5.22 percent to SR4.23, and Alistithmar AREIC Diversified REIT Fund advanced 4.19 percent to SR7.70.
On the downside, Consolidated Grunenfelder Saady Holding Co. fell 4.27 percent to SR10.10. Thob Al Aseel Co. declined 4.01 percent to SR3.83, while National Gypsum Co. slipped 3.10 percent to SR15.92.
Tabuk Agricultural Development Co. ended the session down 2.65 percent at SR7.72, and Tourism Enterprise Co. fell 2.54 percent to SR13.81.
On the announcement front, Al Moammar Information Systems Co. said it has executed the investment agreement to acquire a 15 percent stake in the “Eltizam” electronic insurance platform, with a total investment value of SR19.5 million.
The company said the subscription and purchase agreement was signed on Jan. 28 between Al Moammar Information Systems and Eltizam Electronic Insurance Brokerage Co., following the board’s earlier approval of the transaction.
Shares of Al Moammar Information Systems closed at SR180.50, up 1.40 percent.
In a separate disclosure, Al Moammar Information Systems Co. announced the latest developments related to its participation as a founding shareholder in the establishment of a Shariah-compliant digital bank in Saudi Arabia, known as Vision Bank.
The company said a subscription agreement for a capital increase was jointly executed on Jan. 28 as part of a broader plan to raise Vision Bank’s capital to SR3 billion from SR1.5 billion.
Al Moammar Information Systems said the value of its subscription amounts to SR23.75 million, based on a pre-money valuation of SR3.2 billion for Vision Bank.
Alinma Bank announced that its board of directors has recommended increasing the bank’s capital by 20 percent through the capitalization of reserves and retained earnings via the issuance of bonus shares.
Under the proposal, shareholders would receive one bonus share for every five shares held, raising the bank’s capital to SR30 billion from SR25.0 billion.
The bank said the capital increase is intended to strengthen financial solvency and support future growth, subject to approvals from regulators and the extraordinary general assembly.
Alinma Bank said it has received a no-objection from the Saudi Central Bank.
Shares of Alinma Bank closed at SR28.26, up 3.21 percent.
