Hilton, the US multinational hospitality company, has ambitious plans to expand in Africa, as Andreas Lackner, vice president, operations, Africa and Indian Ocean, tells African Business.
Hilton has been expanding its footprint in Africa. What are the key strategic priorities driving Hilton’s growth strategy in this region, and how does Africa fit into Hilton’s global expansion plans?
Hilton has enjoyed a longstanding presence in Africa for over six decades. With the travel and tourism industry rapidly evolving on the continent, our aim is to more than double our current portfolio and team strength as we continue to build a wealth of opportunities in the region. This will include introducing new brands, partnerships, and services for our guests and the local communities where we operate.
Hilton currently has over 120 trading or pipeline hotels in Africa across ten of our market leading brands. Our development pipeline is driven by our growth strategy and strong network effect focused on unlocking opportunities for our owners, shareholders, partners, and team members. We build our business and guest loyalty through a virtuous cycle of geographic growth and considered brand expansion. Our portfolio of award-winning brands allows us to serve any guest, anywhere in the world, for any stay or occasion.
In which specific regions or countries in Africa has Hilton seen the most success and growth, and what factors have contributed to this success?
We remain intentional about our growth across the continent. Studying the market is crucial for our operations and expansion strategy because it allows us to understand consumer trends, competitor strategies and economic shifts. This in turn helps us shape our services, product offering and prices.
Our goal is to provide targeted brands that meet the needs and preferences of our guests, and we continue to partner with investors to identify the right product to bring to new and emerging locations.
In Morocco, for example, Hilton is currently experiencing rapid growth in the country with seven operating properties and another 10 in the pipeline opening in the coming years, including the debut of the iconic Waldorf Astoria Hotels & Resorts and lifestyle Canopy by Hilton brands in Tangier. While the Seychelles may be Africa’s smallest country, it boasts impressive tourist numbers having had 350,879 visitors in 2023 – a nearly 20,000 increase from 2022. In the Seychelles, Hilton recently introduced Waldorf Astoria Seychelles Platte Island and Canopy by Hilton Seychelles – the first Canopy by Hilton resort in the world.
This year, we have branched even further into the continent, welcoming new brands to markets such as the opening of Kwetu Nairobi, Curio Collection by Hilton in Kenya. Later this year, we will also welcome DoubleTree by Hilton Addis Ababa Airport, a first for the DoubleTree by Hilton brand in Ethiopia, as well as Hampton by Hilton Sandton Grayston, another brand entry in South Africa and the wider continent.
Given the potential growth of the hospitality industry in Africa, what specific opportunities does Hilton see for further expansion? Are there particular segments (e.g., luxury, mid-market, resorts) that are of focus?
We continue to be focused and see significant potential in the resort space. In addition to opening two beautiful resorts in the Seychelles, we recently completed an impressive renovation at Hilton Mauritius Resort and Spa. The resort features refreshed rooms, dining facilities and leisure offerings offering a serene island escape.
However, we believe that a diversified offering is critical for success, particularly in the mid-market segment with the introduction of brands like Hampton by Hilton which are more cost-effective and provide high quality and thoughtfully designed accommodations and amenities. Hampton by Hilton Sandton Grayston is scheduled to open later this year and will mark the brand’s entry into Africa, and we are very excited about this.
Since we launched our Hilton Garden Inn brand in Africa, it has become one of our fastest growing brands on the continent. These hotels are ideal for business and leisure travellers because they provide upscale, affordable accommodations and modern amenities to make guest stays better and brighter.
Looking ahead, what are Hilton’s long-term goals and aspirations for its presence in Africa, and how does the company plan to capitalise on the evolving hospitality landscape in the region?
It may sound simple, but we aim to be wherever our travellers are going and offer them the best possible accommodation tailored to their needs. We already have extensive reach across Africa, and we understand that each region, market, and country have their unique accommodation requirements.
We want to build on this understanding and continue contributing to all the communities we operate in by creating jobs, driving education in the hospitality sphere, and enriching the lives of those who work with us. Sustainability continues to be a priority across our operations, and we will continue to implement initiatives that will help drive responsible travel and tourism in the continent.
Globally, we continue to grow and diversify our brand offering to meet guests’ varying travel needs. Hilton recently launched an exclusive partnership with Small Luxury Hotels of the World (SLH) which will complement our strong and growing luxury portfolio, especially in resort destinations. We also recently launched new lifestyle brands, Graduate, centered around university locations; and NoMad, a luxury lifestyle brand defined by exceptional food and beverage, interior design, and service. We are excited about the prospect of bringing these brands to Africa in the coming years.