Hotel Partners AfricaAchieves Global Standards of Excellence Written by: Abigail Phillips Produced by: Richard Dean

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HOTEL PARTNERS AFRICA

Founded 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

Based in Sub-Saharan Africa, HPA has built a reputation for offering a quality turnkey solution for hoteliers

C O N S T R U C T I O N

www.hote lpar tnersaf r ica .com 5


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

Hotel Partners Africa is an alliance of

three leading hospitality

consultancies

2013

Economic Growth Driving DemandThe 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.

Addressing the ChallengesNo 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.

A Hospitable Future AheadQuantum Global Alternative Investments advises the investment manager of a USD 500 million investment vehicle, which aims to capitalize on the emerging opportunities in the hospitality sector. As a long-term direct equity investor in hotel projects across sub-Saharan Africa, the investment structure targets real estate and real estate-related investments in superior three, four and five-star business hotels. These are built to high quality international standards, with modern construction and design, and aim to respond to the growing need for hotel accommodation in sub-Saharan Africa. The investment structure seeks investment opportunities in established growth markets, with a particular emphasis on prime locations in selected cities of resource-rich countries.

About Quantum GlobalQuantum Global is an independent and client-focused investment partner which delivers unbiased investment advice and services of the highest quality. With African roots and global reach, Quantum Global has the expertiseto identify and execute unique investment opportunities in Africa.

About Quantum Global Alternative InvestmentsQuantum Global Alternative Investments (QGAI) is Quantum Global’s Real Estate, Private Equity and Infrastructure arm. We serve governmental institutions, such as Central Banks and Sovereign Wealth Funds, and advise a family of investment vehicles that targets direct investment into Africa’s growth sectors, including agriculture, healthcare, hotels, infrastructure, mining and timber. QGAI also advises an investment structure that targets prime real estate in developed markets. With Quantum Global’s experience of investment in complex environments, QGAI works in close partnership with key stakeholders and advises them on how to maximize investment value and returns through active management and value creation.

www.quantumglobal.ch [email protected]

www.quantumglobal.ch [email protected]

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 [email protected]

for more details.

Quantum Global. Taking African hospitality to the next level.

http://www.quantumglobal.ch

S t a u c h V o 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 , m u t u a l l y b e n e f i c i a l r e l a t i o n s h i p w i t h e a c h o f o u r c l i e n t s . C o n t i n u o u s c o n s i d e r a t i o n o f t h e i m p a c t o f n e w p r o j e c t s o n t h e e n d - u s e r a n d t h e p u b l i c , t o g e t h e r w i t h t h e f o r m , f u n c t i o n , a n d a r c h i t e c t u r a l l a n g u a g e o f t h e p r o j e c t , a r e i n t e g r a l t o o u r d e s i g n p r o c e s s . I t i s S t a u c h V o 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 ’ s m i s s i o n t o 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 .

I N N O V A T I O N B Y D E S I G N

: +27 21 421 4276: +27 31 263 8200: +27 11 268 6090: +27 41 581 6362

Cape TownDurbanJohannesburgPort Elizabeth

w w w . s v a r c h i t e c t s . c o m

http://www.tophousing.com

http://www.svarchitects.com

HOTEL PARTNERS AFRICA C O N S T R U C T I O N

www.hote lpar tnersaf r ica .com 9

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 offeringHotel 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:

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

“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

Elevating Recruitment to Excellence

www.elevationpersonnel.co.za

Elevation Personnel views you as an individual. We invest time understanding your skills, experience and qualifications, together with, your goals and dreams.We then do our very best to connect you with an opportunity best aligned with your talents and aspirations.

A critical aspect of being the bestbusiness you can be is recruiting andretaining the strongest talent to join your team. Elevation Personnel makes your business our business, we ensure we understand your company cultureand requirements in order to provide competent and reliable personnel.

In proud association with:

Johannesburg - Cape Town - South Africa - Africa - Global

Project Managers - Engineers - Senior Management

Hospitality - Senior and Executive positions in all sectors

For complete peace of mind recruiting services e-mailPetra Devereux.

[email protected]

[email protected] • www.hotelspec.com

Talk to us and get it right the first time!

Development Management • Project Co-Ordination • Design Reviews • Development & Technical Services

• Procurement • Warehousing & Logistics • Installations & Hand-Over

The Africa Hotel Investment Forum (AHIF) will take place 29–30 September 2015 in Addis Ababa, Ethiopia.

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

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

29 Sept - 1 Oct 2014, Sheraton Addis Ababa, Ethiopia29 - 30 September 2015

http://www.elevationpersonnel.co.za

http://www.hotelspec.com

http://www.africa-conference.com

HOTEL PARTNERS AFRICA C O N S T R U C T I O N

www.hote lpar tnersaf r ica .com 1 1

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:

Key Personnel Vernon PageCEOVernon 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.

Best Western hoteliers enjoy the unique advantage of retaining their independence while benefiting from Best Western’s full-service, well-known, lodging affiliation which offers a global reservations system and distribution along with loyalty club (Best Western Rewards®), revenue management and Customer Care training.

Vīb (pronounced Vibe) is a stylish and technology-centric hotel concept created to meet the needs of today’s connected traveler. Vīb’s high-density concept will be cost-effective to build and operate, making it an attractive option for owners and developers.

bestwesterndevelopers.com +353 1 460 [email protected]

Each Best Western® branded hotel is independently owned & operated

Best Western welcomes hundreds of thousands of guests nightly, ready for your share?

SM

Leisure Property Services

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 Londonon +44 203 754 9174.

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. 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.comtrevor.ward@w-hospitalitygroup.com01-791 4165

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 industry-leading 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.

Stay with the leader

Leading the world for over 30 years in hotel security and technology solutions.

VingCard Elsafe Phone: +47 69 24 50 00 | [email protected] | www.vingcardelsafe.comProvider of: VingCard Locks and Systems | Elsafe Safes | Orion EMS | PolarBar Minibars

Xtra II by ElsafeSentinel II by Elsafe Signature by VingCard Essence by VingCard

http://www.bestwesterndevelopers.com

http://www.leisureproperty.com

http://www.w-hospitalitygroup.com




“We work with the best architects, engineers, quantity surveyors and content managers. A hotel is a complex animal”– Vernon Page

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,

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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.

Procurement: HPA manages its clients procureent needs from sourcing products at the most competitive prices globally to ongoing co-ordination 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

LBH, Cape Town,

South Africa

Lagoon Beach Hotel,

sea-view room




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.

Average number of forty foot containers moved annually using its auto-mated tracking

systems

70

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The asset register shall include the following information:

1. Item description2. 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

‘We even provide advice to the Royal Institution of Chartered Surveyors (the valuers governing body) on how hotel valuations should be carried out.’

SHL suite




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

Mark Martinovic, Head

of Design & Construction



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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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.

The Hilton in Abuja




The company works with the best interior designers

Focusing on qualityHPA 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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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 opportunitiesQuality 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

“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

Quality is king at HPA




artwork, furniture and employment to support community development,” says Page.

Marketing and growthIn 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.

Company Information

I N D U S T RY

Construction

H E A D Q U A RT E R S

Lagos, Nigeria

F O U N D E D

2013

E M P L O Y E E S

20 in 3 member

companies

R E V E N U E

Not disclosed

P R O D U C T S /

S E R V I C E S

Consultancy service

offerings in the hotel

development and

operational sector

https://www.linkedin.com/company/2990610?trk=tyah&trkInfo=tarId%3A1415962938548%2Ctas%3Ahotel%20partners%20africa%2Cidx%3A1-1-1


Plot 10, Babatunde Crescent, off Oniru Market Road, Lekki Phase 1, Lagos, Nigeria

Tel. +234 (0) 1 791 4165

[email protected]

www.hotelpartnersafrica.com

Hotel partners africa brochure 2015

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