JLL forecasts strong performance in sub-Saharan Africa

While the challenges facing businesses in sub-Saharan Africa remain significant, officials with JLL expect hotel performance in the region to be strong in 2018, with the pace of transactions increasing. In comments on the region, Xander Nijnens, EVP of JLL’s hotels and hospitality group for sub-Saharan Africa, said he expects to see strong RevPAR growth, and performance will be especially good in midmarket segments.

“We predict higher investor interest and supply growth in these segments than in any other supply segment in the region for 2018 and beyond,” he wrote.

The outlook is not all cheery, though, as Nijnens notes “lenders into the continent remain conservative” and that JLL does not “anticipate that sentiment will improve considerably in the short term and 2018 will be another tough year for hotel lending, with the availability of debt limited and often expensive.”