Hilton to splash Sh5b on new Africa hotel expansion drive

A section of Hilton Hotel in Nairobi {David Njaaga, Standard}

Global hotel chain Hilton has committed $50 million (Sh5.1 billion) towards its Hilton Africa growth initiative.

The funding will support the expansion of its sub-Saharan Africa portfolio over the next five years.

The capital injection will support the conversion of around 100 hotels (about 20,000 rooms) into Hilton-branded properties.

The 109-room Amber Hotel on Nairobi’s Ngong Road, which will re-launch under the DoubleTree by Hilton brand, is among the hotels earmarked to benefit from the funds under the Hilton AfricaGrowth Initiative.

Variety of markets

The hotel, which opened in 2016, is currently undergoing renovations and will join the brand by the end of the year.

Following the refurbishment, the hotel will be known as DoubleTree by Hilton Nairobi Hurlingham.

It will continue to be operated by the owner under a franchise agreement through the leadership of its current General Manager Elisha Katam.

Other hotels set to undergo changes is the 153-room Ubumwe Grande Hotel in the Kigali central business district, which will trade under the upscale DoubleTree by Hilton brand when it fully converts next year.

“Hilton remains committed to growth in Africa, having been present on the continent for more than 50 years,” said Senior Vice President, Development, Europe, Middle East and Africa Patrick Fitzgibbon in a recent statement.

“The model of converting existing hotels into Hilton-branded properties has proved successful in a variety of markets and we expect to see great opportunities to convert hotels to Hilton brands through this initiative.”

He said this would enable the hotel chain to rapidly grow the brand’s portfolio and deliver returns for owners.

The new move, added Mr Fitzgibbon, will increase exposure of the businesses to more international, inter-regional and domestic travellers and specifically to its  65 million-plus Hilton Honours members.

“We see huge potential here in key cities and airports, as well as allowing us to develop our offering in resorts and safari lodges.”

Technology platforms

The hotels will also receive all the benefits associated with the Hilton’s brand proposition and commercial platforms.

Guests will at the same time be able to take advantage of Hilton’s innovative technology platforms such as online check-in and the ability to choose individual rooms when booking via the HiltonHonours App.

Mr Fitzgibbon said the range of brands they have at their disposal allows owners the flexibility to pick the right fit for their property.

“We have already deployed this initiative in the signing of two hotels: our first DoubleTree by Hilton property in Kenya, and our first hotel in Rwanda, and expect to be able to announce further additions before the end of this year,” he noted.

Hilton currently operates 19 hotels in the sub-Saharan Africa region with a further 29 in the pipeline.

It has held a presence on the African continent for more than 50 years.