Funds advised by Kasada Capital Management have announced the first transaction made through the debut fund, Kasada Hospitality Fund, acquiring a portfolio of Sub-Saharan African hotels from AccorInvest.
This landmark deal is one of the largest cross-border hospitality mergers and acquisitions in Africa which will see Kasada take control of eight fully operational hotels across three countries, the Ivory Coast, Senegal, and Cameroon, comprising of 1 602 hotel rooms focused on servicing intra-regional business travel in Africa.
In taking on the full ownership and management of the portfolio, Kasada has committed to implementing new standards in terms of local management teams and its environmental footprint while ensuring guest satisfaction levels continue to develop. It sits at the core of the firm’s strategy to become a solution provider for sustainable growth of the hospitality market in Sub-Saharan Africa.
The transaction was executed during one of the most challenging periods for the African hospitality sector but the three countries’ economies have been growing at a steady pace, a trend that is expected to continue in the medium term. Tourism is one of the most dynamic sectors in the region, representing 10%, 8% and 7% of Senegal, Ivory Coast and Cameroon’s GDP respectively – significantly contributing to economic development. While the travel disruptions caused by Covid-19 have impacted international travel, the portfolio will focus on serving intra-regional business travel, which has begun to grow over recent months.
AccorInvest is the owner and operator of a property portfolio of more than 880 hotels, owned and leased, located across twenty-eight countries in Europe, Latin America, and Asia. The sale of the portfolio of hotels in Sub-Saharan Africa to Kasada marks the refocusing of its investment strategy on Europe, positioning Kasada as the market leader in Sub-Saharan Africa.
“This is an outstanding portfolio of hotels covering all market segments and fully aligned with Kasada’s strategy. We look forward to working with the fantastic teams running the portfolio and to help drive the growth of the hospitality sector in this promising region. As long-term investors we are committed to implementing new ESG and guest satisfaction standards across our portfolio to ensure the sector sustainably grows to match the expectations of our guests. We believe we can have a positive impact by providing much-needed capital at a critical time” comments Olivier Granet, Managing Partner and CEO, Kasada.
David Damiba, Managing Partner and CIO, Kasada, said:
“Despite the challenging global macro-economic conditions, Kasada intends to invest and support the African hospitality sector as it begins to adapt to a new market. The Kasada team’s deep-rooted regional and sector expertise meant we were well placed to execute this complex transaction, one which spans multiple jurisdictions across West Africa.”
The transaction relates to the Pullman, Novotel, Ibis Plateau, and Ibis Marcory hotels in Abidjan, Ivory Coast, the Pullman, Novotel and Ibis hotels in Dakar, Senegal and the Ibis hotel in Douala, Cameroon.
Kasada was advised on the transaction by Lazard Freres, Ashurst, Dentons, Okan and KPMG.
AccorInvest was advised by Jones Lang LaSalle, De Pardieu Brocas Maffei, Mazars and Ernst & Young.