C O M P A N Y O V E R V I E W
Hotel Partners Africa
Achieves Global Standards of Excellence Written by: Abigail Phillips Produced by: Richard Dean
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H O T E L PA R T N E R S A F R I C A
Based in SubSaharan Africa, HPA has built a reputation for offering a quality turnkey solution for hoteliers
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ounded in 2013, Hotel Partners Africa is an alliance of three leading hospitality consultancies - W Hospitality Group, Hotel Spec and Leisure Property Services – each with considerable expertise throughout Africa. With a particular focus on the Sub-Saharan territory, the company has a diverse portfolio of service offerings in the hotel development sector. Hotel Partners Africa guides its clients through the development lifecycle of a hotel from conception to feasibility, development management to asset management. “We are a turnkey provider of services for hotel investment,” says Vernon Page, Chief Executive Officer, Hotel Partners Africa. “The only thing we don’t do is manage the hotels once they are in operation.” Under its umbrella of expertise Hotel Partners
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ICL Club Lounge shows the quality of product offered by the company
Africa offers a raft of services to hotel developers and operating companies, providing crucial input and hands-on management throughout the planning, design, construction, renovation and refurbishment stages of new and existing hotels. Despite being a fairly young business, HPA has been well received by the hotelier sector both in the region and on a global scale. The African hotel industry is one fraught with challenges, and as such industry professionals have welcomed the combined experience bought to the table by HPA. “We offer our clients stability and a pool of knowledge not found anywhere else,” says Page. “One of the biggest advantages for our clients is that they have a single point of contact throughout the lifecycle of a hotel development, meaning they do not have to search for various advisors and
2013 Hotel Partners Africa is an alliance of three leading hospitality consultancies
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Quantum Global.
Taking African hospitality to the nex Economic Growth Driving Demand
A Hospitable Future Ahead
The case for Africa is not news. The continent has recorded strong economic growth in the last decade and its share of the world’s GDP is expected to triple to 12% by 2050. This massive growth has attracted an increasing amount of international capital, which is perfectly positioned to support Africa’s long-term growth. Strong growth has also triggered an urbanization trend across sub-Saharan Africa. With higher household incomes and thus purchasing power, Africa’s young and growing population is shaping a new middle class that is fueling internal demand for consumer goods, infrastructure, education, health and other services. It will help secure an unrivalled pool of human capital to support African growth into the future. Undeniably African economies are flourishing. With a more transparent and relatively stable political climate, business interests are starting to proliferate across the continent. And so are the number of domestic, regional and international business travelers: as they travel across Africa to attend to their widespread business interests, they are driving up steady demand for increased and better business hotel accommodation across sub-Saharan Africa.
Quantum Global Alternative Investments advises manager of a USD 500 million investment vehicle capitalize on the emerging opportunities in the h As a long-term direct equity investor in hotel pro Saharan Africa, the investment structure targets real estate-related investments in superior three star business hotels. These are built to high qual standards, with modern construction and design respond to the growing need for hotel accommo Saharan Africa. The investment structure seeks in opportunities in established growth markets, wit emphasis on prime locations in selected cities of resource-rich countries.
Addressing the Challenges No economic growth is devoid of challenges. In Africa, meeting basic infrastructure needs is undoubtedly the main barrier in securing continued growth. Increased funding and the achievement of operational efficiencies are the cornerstones in addressing such challenges (read our article ‘The catalyst must come from within’ by Ulrich Otto and Minesh Mashru at www. quantumglobal.ch). On another front, steadfast progress is being made against the common perception of Africa as a challenging place to do business, plagued by inefficiencies, political instability and health concerns. The increased political stability and enhanced business environment in sub-Saharan Africa are reflected in the considerable progress made in the region’s Transparency Index ratings from 2012 to 2014.
www.quantumglobal.ch
About Quantum Global
Quantum Global is an independent and clien investment partner which delivers unbiased advice and services of the highest quality. W and global reach, Quantum Global has the ex to identify and execute unique investment o in Africa.
About Quantum Global Alterna Investments
Quantum Global Alternative Investments (QG Global’s Real Estate, Private Equity and Infras arm. We serve governmental institutions, su Banks and Sovereign Wealth Funds, and advi of investment vehicles that targets direct inv Africa’s growth sectors, including agriculture hotels, infrastructure, mining and timber. QG an investment structure that targets prime re developed markets. With Quantum Global’s investment in complex environments, QGAI w partnership with key stakeholders and advise to maximize investment value and returns th management and value creation.
info@quantumglobal.ch
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Meet the
Quantum Global team at MIPIM 2015, 10-13 March 2015, Cannes, France. You are cordially invited to Quantum Global’s cocktail event on 11 March 2015 on board the Mabruck III berthed in the port of Cannes, France. Please contact Franck Behiblo, Quantum Global Head of Corporate Development, at mipim2015@quantumglobal.ch for more details.
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I N N O V A T I O N
B Y
D E S I G N
S t a u c h Vo r s t e r A r c h i t e c t s I n t e r n a t i o n a l i s c o m m i t t e d t o q u a l i t y d e s i g n, e v o l v e d o u t o f a n e s t a b l i s h e d, mutually beneficial relationship with each of our clients. Continuous consideration of the impact of new projects on the end-user and the public, together with the form, function, and architectural language of the project, are integral to our design process. It is Stauch Vorster Architects International ’s mission to p r o d u c e v a l u e , q u a l i t y, a n d d e s i g n e x c e l l e n c e , u n d e r s t a n d i n g d e s i g n a s a p e o p l e - f o c u s e d e n d e a v o u r.
Cape Town Durban Johannesburg Port Elizabeth
: : : :
+27 +27 +27 +27
21 31 11 41
421 263 268 581
4276 8200 6090 6362
www.svarchitects.com
H O T E L PA R T N E R S A F R I C A consultants. We provide a one-stop-shop service to developers and owners,” he says. With close to 100 years of global hospitality knowledge between its partners, the company prides itself in offering a market-leading service. “A defining point for us is that in sub-Saharan Africa we are the only company to provide all these services,” says Page. “In five years we would have consolidated our position as the leading hospitality consultancy in the region. We know the competition is growing, as business in Africa continues on an upward trajectory, but we have an advantage by being on the ground. Added to that is our unfailing desire to advise our clients in their best interests.” The impressive list of clients making up HPA’s portfolio is testament to its level of service and expertise. The consultancy has worked with the likes of Hilton, Holiday Inn, Radisson, Sheraton and InterContinental to name just a few and has earned industry wide respect for its proficiency in the planning, management and advisory of hotel developments. A broad service offering Hotel Partners Africa offers its clients a broad service offering – in fact, its impressive portfolio is one of its many unique selling points. Services offered include:
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“A defining point for us is that in sub-Saharan Africa we are the only company to provide all these services” – Vernon Page, Chief Executive Officer
Market and Financial Feasibility Studies: This is the very first step in the process, after securing the site. There are five main reasons to carry out a w w w. h o t e l p a r t n e r s a f r i c a . c o m
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The Africa Hotel Investment Forum (AHIF) will take place 29–30 September 2015 in Addis Ababa, Ethiopia.
29 Sept - 1 Oct 2014, Sheraton Addis Ababa, Ethiopia
29 - 30 September 2015
AHIF 2014 was one of the best hotel investment forums I have been to. The programme was excellent, as was the quality of the speakers and attendees. It is the event of the year for us! OTHMANE JABRI, KINGDOM HOTEL INVESTMENTS
AHIF is the only annual hotel investment conference that connects business leaders from the international and local markets. The event brings together the who’s who that drive investment into tourism projects, infrastructure and hotel development across Africa. AHIF is attended by investors, owners, financiers, developers, operators, advisors, architects and senior government officials supporting tourism and travel development.
www.africa-conference.com
Elevating Recruitment to Excellence A critical aspect of being the best business you can be is recruiting and retaining the strongest talent to join your team. Elevation Personnel makes your business our business, we ensure we understand your company culture and requirements in order to provide competent and reliable personnel.
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Development Management • Project Co-Ordination • Design Reviews • Development & Technical Services • Procurement • Warehousing & Logistics • Installations & Hand-Over
Hospitality - Senior and Executive positions in all sectors In proud association with: For complete peace of mind recruiting services e-mail Petra Devereux. petra@elevationpersonnel.co.za
www.elevationpersonnel.co.za Johannesburg - Cape Town - South Africa - Africa - Global
info@hotelspec.com • www.hotelspec.com
H O T E L PA R T N E R S A F R I C A feasibility study. First, to ensure full understanding of the risks and rewards of the project; second, to determine the most appropriate facility provision for a given site and market; third, to brief the architect as to what the market requires in terms of facilities; fourth, to attract the attention of an operator and form the basis for contract registration and fifth, to support submissions to debt and equity providers. Operator Selection and Negotiation: The hotel operator should be engaged early on in the development process to have input in regards to the concept and detailed design of the project. In addition, sources of funding will want to know who is to operate the proposed hotel – some will not lend or invest unless an international operator has been engaged. The appointment of the correct operator to your project can enhance your financial returns and thus the value of your hotel. The owner / operator relationship is a long term one and needs to be effective and mutually beneficial. HPA have excellent relationships with all of the international and regional (African) hotel operators, and have worked with all of them on projects across the continent. Raising of Funding: It is virtually impossible to fund a development opportunity or hotel without suitable funding. HPA have unrivalled access to various sources of funding to buy or develop hotels, including:
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Key Personnel
Vernon Page CEO Vernon has over 15 years’ experience of funding hotel developments, sourcing equity and debt for various projects, building hospitality investment funds, and managing their returns. In creating this ‘one-stop shop’, Hotel Partners Africa has established a highly proactive team to build long-standing relationships with major players, particularly hotel operators and developers, fund managers, property owners and all others involved in the hotel development process.
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The W Hospitality Group are specialist consultants to the hotel, tourism and leisure industries in Africa, providing a full range of advisory services to our clients who have investments in the sector, or who are looking to enter them, through development, acquisition or other means.
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For more than three decades VingCard Elsafe has been the leader in hotel security solutions. Today, over 40,000 properties around the world trust us to provide the most advanced, secure and reliable solutions for electronic locking, energy management, in-room safes and minibars. Our products are designed to meet your needs for efficiency, convenience and peace of mind, with industryleading technology, sleek designs and user-friendly features for both your staff and guests. With a customer service network that spans the globe, we’re here to help… and here to stay. So stay with the leader – VingCard Elsafe.
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Our team has experience of more than 90 countries worldwide, and over 30 in Africa, and has worked at all market levels, from deluxe hotels to roadside lodges, exclusive health clubs to public recreation facilities, and from the master planning of thousand hectare sites to the best use of city blocks. Our main activities include market and financial appraisals, operator selection and contract negotiation, and asset management. www.w-hospitalitygroup.com trevor.ward@w-hospitalitygroup.com 01-791 4165
Leisure Property Services
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At LPS we undertake a wide range of hotel related services including acquisitions, disposals, valuations, rent reviews, operation selection & management contract negotiations. Our geographic knowledge covers the UK, Europe, the Americas and Africa.
Call our team based in London on +44 203 754 9174.
H O T E L PA R T N E R S A F R I C A
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Equity: -- Both minority or majority equity for development projects, new or partially completed; -- Additional equity for operational assets. Debt: -- Construction debt; -- Operational debt; -- Refinancing of existing debt; -- Mezzanine instruments. Development management: Complete hotel development management services, which includes advice, recommendations and negotiations with nominated professional teams; project coordination; budget management; programme and quality assessment reporting; overall project monitoring to ensure coordination between operator requirements and all services; design and finishes; contractual conditions; budget evaluation to completion, and hand over of operation. Working closely with the client’s architects, engineers and interior designers to ensure all the client’s and brand specific requirements are met. With the company’s experience of advising owners on developing and refurbishing hotels around the African continent and specific specialised knowledge of the workings and requirements of hotels it will ensure that all integrated systems such as IT, AV, MATV, PBX,
“We work with the best architects, engineers, quantity surveyors and content managers. A hotel is a complex animal” – Vernon Page
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H O T E L PA R T N E R S A F R I C A security, life safety etc. are seamlessly integrated in order to create a cost efficient and correctly specified hotel operation. All back of house areas from receiving to waste management, housekeeping, stores, administration and kitchen operations are correctly specified and provided to ensure a smooth operating environment, compliant with all local building, fire and safety regulations. Lagoon Beach Hotel, sea-view room
LBH, Cape Town, South Africa
Procurement: HPA manages its clients procureent needs from sourcing products at the most competitive prices globally to ongoing coordination with the interior designer at all stages of the development. It will even help its clients manage budget. Furniture, fixtures and equipment is all custom-made to the specification of the design consultant in terms of material, colour, fabric, foam, size and design and ongoing inspections and quality control management ensures quality and suitably specified furniture is manufactured and delivered to the project. Kitchen, laundry, technical and back of house areas are all coordinated closely with the operator. Warehousing and logistics: Consolidation services and co-ordination of all logistical services from import/export, customs clearing, insurance and forwarding. With an average turnaround of between 60 to 80, 40 foot containers annually spanning across Africa and the world, its automated tracking, inventory, warehouse and
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freight management systems will ensure that all shipments arrive on site and in line with the project program. Installation Services: The company’s on site Project Team receive all items of FF&E, OS&E and other equipment and position and install items of FF&E in in the correct location as per approved drawing specifications. Project Team services include: • Inventory control and reporting of all goods received on site and reconciled to approved budget and official orders. • The correct positioning of all FF&E items within the property according to the interior furniture lay-out drawings as issued. • Hanging of all artworks and mirrors to the specification issued on the Interior Designers’ layout and elevation plans. • Perform any minor repair work to FF&E, which after positioning in the property is found to be damaged or to return such goods to the manufacturer. • Where applicable, to commission all kitchens, IT, telephone, television and AV equipment, including the tuning and “burning-in” of all such equipment as required, and to ensure sufficient training is provided to the hotel’s staff on its safe operation. • Individually bar code all items of FF&E once in place within the property and to build a detailed asset register of all FF&E items.
70 Average number of forty foot containers moved annually using its automated tracking systems
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H O T E L PA R T N E R S A F R I C A
SHL suite
‘We even provide advice to the Royal Institution of Chartered Surveyors (the valuers governing body) on how hotel valuations should be carried out.’
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The asset register shall include the following information: 1. Item description 2. Location within the property 3. Value at date of purchase Valuations: To secure finance it is essential to ensure that the project is sound and that is where a valuation becomes vital. Bank funding is usually predicated upon loan to value ratios and the ability to make scheduled repayments. At HPA we can provide formal secured lending valuations, stock market valuations and more informal internal valuations. Our team has carried out valuations for most banks who are active in funding hotels. We even provide advice to the Royal Institution of Chartered Surveyors (the
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valuers governing body) on how hotel valuations should be carried out. Asset Management: The primary objectives of an asset manager is to act as an expert interface between the owner and the operator, while assisting hotel owners to realize the full value of their assets through a continuous process of value creation and enhancement. Talent Acquisition: The importance of sourcing suitable, passionate, talented and experienced staff from executive and management level down who can add the most value to the business and its guests, forms the basis upon which the company approaches its talent acquisition process. Culture and attitude play a key role
Location management is an integral part of HPA services
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Mark Martinovic, Head of Design & Construction
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in the identification of these individuals. This coupled with working very closely with clients to understand their objectives, company culture and environment to ensure a good staff morale, high level of service and low staff turnover makes the service a success. Brokerage: At some stage, it is likely every owner will consider disposing of even the finest hotel. HPA recommends early in the ownership process considering the likely program for disposal, to ensure the right strategies are put into place. HPA can provide comprehensive and strategic ownership advice, and, at the right moment, will help to dispose of the asset in the most productive way, to suit its client’s particular investment goals. The team has an unrivalled track record of hotel disposals in Africa, generating exceptional sales prices from its comprehensive network of hotel investors from around the world. Overcoming challenges Despite making strides in the industry, not all has been plain sailing for HPA. Doing business in Africa comes with a unique set of challenges including a lack of funding, the threat of terrorism and additional concerns such as the recent Ebola crisis. “It can be hard to attract investors being a fairly volatile economy. That being said, business is moving to Africa, so even with the challenges, it is a fertile ground for hotel development. From our perspective, for the next 20 years there will be
The company specializes in talent acquisition and recruitment services to clients throughout Africa
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H O T E L PA R T N E R S A F R I C A
The Hilton in Abuja
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compounded growth in the industry,” says Page. That growth is due to a number of factors. In the last decade Africa has discovered additional resources in the oil and gas sector, it is also an emerging economy, meaning investors and business people need hotels to stay in, which ultimately leads to a spike in development. Furthermore, tourism is constantly on the rise. “A lot of the African hotels are achieving much higher room rates compared with anywhere else in the world. The Hilton in Abuja for example, is the most profitable Hilton worldwide and you pay more to stay there than you would in London or Paris. A good service provider with good security, high-end rooms, facilities and catering can charge what they want. Return on investment in Africa can be seen in three to five years, where as the global average is seven to 10 years,” explains Page. Procurement and logistics also presents a challenge for the company. “Logistics in Africa is unreliable at best,” says Page. “Ports, rail and roads are almost non-existent so supply chain management and sourcing commodities can be tough.” In the hotel sector there are a lot of requirements from a goods perspective – from furniture to kitchenware, linen to lighting there are a lot of moving parts to consider. So as Page explains, business in the region can be a “hard slog” at times, but the investment can pay dividends. “The challenges are all part of the fun,” he says.
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The company works with the best interior designers
Focusing on quality HPA doesn’t only offer its clients logistics support, funding advice and project management expertise but also helps achieve standards of excellence from a quality perspective. “We advise developers to develop hotels in line with international standards,” says Page. “We work with the best architects, engineers, quantity surveyors, content managers, and other consultants from landscape architects, interior designers, acoustic specialists and fire and safety experts. A hotel is a complex animal.” “Imagine a hotel with 250 rooms and how much water, electricity and heating you use, how much sewerage, and air conditioning - you cannot just open the yellow pages, you need specialists.” “We work with our clients from day one,
“Imagine a hotel with 250 rooms and how much water, electricity and heating you use - you cannot just open the yellow pages, you need specialists” – Vernon Page
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H O T E L PA R T N E R S A F R I C A
Quality is king at HPA
“We want to support local suppliers and develop local communities, which are very important to us. Where we can we source local artwork, furniture and employment to support community development” – Vernon Page 22
throughout the design and build process through to completion. We manage everything from air quality and temperature to fire and security. We also manage branding and maintain global standards of excellence,” he says. Creating local opportunities Quality is king at HPA, but its directors recognise that high standards will not be met without a good team of people behind the business. With this in mind, the company is dedicated to building quality relationships with global and local suppliers. “We want to support local suppliers and develop local communities, which are very important to us. Where we can we source local
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Company Information INDUSTRY
Construction HEADQUARTERS
Lagos, Nigeria FOUNDED
2013 EMPLOYEES
20 in 3 member companies
artwork, furniture and employment to support community development,” says Page.
REVENUE
Not disclosed
Marketing and growth In its short lifetime, HPA has earned a reputation in the sector synonymous with quality and excellence and that is in part due to the combined experience of its founders. “We are all well respected and experienced consultants in the region, plus we all live and work here, which adds to our credibility. We speak at various conferences and events, and are recognised as experts in the field. In the next five years our goal is to be the first choice hotel service provider for developments throughout the continent,” Page concludes.
PRODUCTS/ SERVICES
Consultancy service offerings in the hotel development and operational sector
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HOTEL PARTNERS AFRICA Plot 10, Babatunde Crescent, off Oniru Market Road, Lekki Phase 1, Lagos, Nigeria Tel. +234 (0) 1 791 4165 info@hotelpartnersafrica.com www.hotelpartnersafrica.com