Nigeria’s lodging industry gained tremendous growth along with the overall economy and business booming in Africa. The once disordered and money-losing accommodation business is getting on the right track. And more international renowned hotel groups are entering into Africa, with standardized operation strategy, to promote the thriving of hotel industry in Nigeria.
International hotel groups’ development initiative breaks the pattern of Nigeria’s local hotels. Hotel chains bring changes and opportunities, which offer new options for consumers’ accommodation decision and a new way of thinking for hotel investors. Until now, hotel investment is no longer unpredictable, rather it ushers in a more effective and profitable future.
Ivy hotel website http://bit.ly/2k6mLX4
From Wildly Growth to Hotel Chain’s Surge
In 2017, Nigeria’s overall hotel market has outperformed industry expectations. The occupation rate has increased from 1,500,000 to 1,600,000, an increase of 45.2%, higher than the expected 42.4% (see the charter). Since this year, the market data has suggested a growth momentum and what makes the year of 2017 different is that the hotel chain has made a significant contribution to the figures.
[READ MORE: Euphoria, as Access Bank opens new branch in Osun]
Economic prosperity brings energy and vitality to every industry and trade in Africa. The biggest change for the hotel market is that international hotel groups are expanding their programs for the African market. In the year 2019, ten hotel brands get into the African market and proposed strategic planning. As can be seen in chart 3, in the number of planning rooms, two cities of Lagos and Abuja in Nigeria rank top 10, and this indicates the importance laid by hotel brands in the Nigerian market.
For the entire hotel industry in Nigeria, it is still in the stage of supply falling behind demand. The change we can observe is that the local hotel market is no longer dominated by individual hotels, rather chain hotels brought by international hotel groups mushrooms.
These chain hotels export standard products and services, bringing consumers with better living experience and gain more profit through scientific management in contrast with the individually operated hotels. Besides, chain hotels respond promptly in dealing with customer feedback, which helps to rectify the wrong operations and achieve sustainable growth.
There will be a transition from individual hotel’s wild growth to hotel chain’s upsurge and the phenomena of supply behind demand shall be totally changed after a period of time. Chart 4 shows the anticipated opening year of hotels signed in 2019 (first quarter) and a growing number of hotels joining the chain brand will be included in future.
Hotel Franchise and Business Model
Enormous investors will cooperate with international hotel brands with hotel chain’s rocket-fueled growth and the business model well recognized is hotel franchise.
Exporting brand, technology and operation is the major business concept of joining brand chain’s franchise scheme. The hotel property as well as the power over personnel, finance and operation is still possessed by investors. The asset-light operation strategy endows investors with decision-making right and avoids the risk of unified management.
Meanwhile, investors can enjoy the size effect and personalized programs of joining chain brand’s franchise business. Put Sunmei International as an example which ranks the 16th place worldwide, Sunmei owns a dozen of hotel brands and over 4,000 franchise hotel globally, and it offers franchise service of three brands in Africa, including economy brand of Ivy Hotel, upscale brand of Rizti Hotel and light-standard brand of Oak Hotel, providing differentiated services for investors with various needs.
For investors, the costs and expenses cover construction, labour, material supplies and one-time (consecutive) franchise-related fees. The profits come from room revenue, membership charges as well as other services fees. The comprehensive services of hotel groups help franchise hotels being more profitable.
Hotel franchise helps avoid operational risks, attracts more customers and enables greater management ability. At the same time, the funds of chain hotels can be better utilized and trackable. The personnel and material supplies shall be more managed in a more standardized method and every asset for hotel operation can be better used.
The rapid expansion of hotel chains owned by international groups in Nigeria will transform the landscape of and inject energy to the hotel market.
Sunmei International opens the franchise business to Nigeria’s investor and guarantees the one-stop hotel chain services. Sunmei International will work together with investors in the coming days to satisfy more consumers’ accommodation demands and exert positive influence to the lodging industry.
Ivy hotel website http://bit.ly/2k6mLX4
Global Credit Rating reaffirms Sovereign Trust Insurance Plc ‘A-‘rating
Global Credit Rating Limited has reaffirmed an A-rating for Sovereign Trust Insurance Plc.
Global Credit Rating Limited, an international rating agency, has reaffirmed an A-rating for Sovereign Trust Insurance Plc.
According to a press release signed by the firm’s Deputy General Manager, Olusegun Bankole, and seen by Nairametrics, the insurance firm has consistently maintained its rating for over a decade now.
The key drivers that helped in the reaffirmation of the A-rating by the firm are;
- Consistency in paying her claims obligations over the years, as captured in an earlier solvency and operational report for financial institutions in Nigeria and other allied businesses, released by the rating agency in December 2020.
- Listing of rights issue in 2019 which helped to increase the shareholders’ funds of the company to N8.2 billion as at Q3 2020, up by 31% Year-on-Year. This played a catalyst role in maintaining the A-rating status of the firm.
- The capital adequacy of the firm was also pivotal.
According to the information available on the website of the rating agency, the A-rating reflects high claims-paying ability, strong protection factors, modest risk which may vary over time due to economic and/or underwriting conditions.
This fact was buttressed by a section in the press release which reads:
- “Sovereign Trust Insurance Plc has great potentials for growth in the years ahead, considering some of the strategies that have been put in place to propel its operations. Global Credit Rating noted that the company has shown a great deal of consistency in her claims obligations to her numerous customers spread all over the country.”
About Global Credit Rating Limited
- Global Credit Rating Co (Pty) Ltd (GCR) operates as a credit rating services provider. The Company ratings for banks, financial institutions, insurance, corporate and public sector debt, and structured finance serves customers worldwide.
Range Developments: Citizenship-by-Investment in Grenada
Range Developments is the largest and most successful hospitality developer in the Eastern Caribbean engaged in the Citizenship by Investment sphere.
Citizenship by Investment is the process of obtaining a second citizenship and passport by investing in the economy of the host country. Located in the West Indies in the Caribbean Sea is Grenada – a country which offers Citizenship by Investment to willing investors. This program was restructured and relaunched by Grenada in 2013 and it offers a low cost entry for a second passport for willing Investors. Grenada as a country is enriched with exquisite cuisine, excellent healthcare and education systems. In addition, it is one of the safest nations in the Caribbean and its citizenship by investment programs is one of the most sought-after citizenship programs in the world due to many advantages Grenadian citizenship entails
Range Developments is the largest and most successful hospitality developer in the Eastern Caribbean engaged in the Citizenship by Investment sphere. With years of expertise under its belt, Range Developments offers the most desirable process for acquisition of Citizenship by Investment in Grenada. All you need as an Investor and prospective Grenadian citizen is $220,000 (two hundred and twenty thousand US Dollars) in addition to applicable fees. Through this process, an Investor gets their Grenadian passport in 90-120 days without the need to reside in or even visit Grenada. Further, no interview, education or management experience is required for an Investor.
By participating in the Citizenship-by-Investment project in Grenada, Investors will enjoy global benefits and a secure investment in one of the world’s most renowned hospitality brands. Some other perks of obtaining Grenadian citizenship through Citizenship-by-Investment with Range Developments include:
- Visa-free travel and visa-on-arrival to over 140 countries worldwide including Schengen member States, the United States of America (USA), the United Kingdom, China, Russia and many more;
- Access to the USA Investor E-2 Visa (which allows citizens of Grenada to operate a substantial business and also reside in the USA);
- Eligibility of family members (siblings, children and parents) for Grenadian citizenship;
- Right to hold dual citizenship;
- Citizenship for life in Grenada with the right to live and work in the country;
- Enjoying political and social security;
- Tax benefits and incentives (such as no foreign income, wealth, gift, inheritance or capital gains tax, etc).
For more information, Range Developments may be contacted at +97143253447. You may also reach out on Whatsapp at +971527324097 or via email at [email protected]
Pfizer appoints Patrick van der Loo as Regional President for Africa and the Middle East
Patrick’s Pfizer experience spans more than 20 years in leadership roles with multiple successes across geographies.
Pfizer (www.Pfizer.com) announced today the appointment of Patrick van der Loo as Regional President for Africa and the Middle East (AfME) region. Patrick’s Pfizer experience spans more than 20 years in leadership roles with multiple successes across geographies. In his new role as Regional President for AfME, Patrick will lead commercial operations to bring scientific breakthroughs in vaccines, oncology, rare diseases, internal medicine, hospitals, and inflammation & immunology, to serve patients.
Commenting on his appointment, Patrick said: “This year has made me even more grateful and proud to be part of Pfizer. The global pandemic has accentuated our purpose as a company and reinforced our commitment to patients and communities worldwide. AfME is home to some of the world’s fastest-growing markets with increasing demand for innovative health treatments and services. Overall, the region has shown remarkable resilience due to strong leadership and sound policies.”
He added: “Pfizer has been operating for over 60 years in AfME. I look forward to continuing this journey and bringing our breakthroughs to address unmet patient needs. My top priority will remain to work with our teams to ensure greater access to our medicines across our strategic therapeutic areas. We will seek even stronger collaboration with healthcare professionals, communities, and governments to change the lives of millions of people and protect them from tomorrow’s health threats.”
Patrick has been passionate about the pharmaceutical and healthcare industry from the start of his career. He has managed some of Pfizer’s largest therapeutic areas in cardiovascular and neuroscience globally and led the commercial development efforts of a 500+ molecule business.
In his previous role, Patrick served as the Developed Asia Cluster Lead and General Manager for Pfizer’s Hospital Business Unit, responsible for leading and executing Pfizer’s commercial and cultural strategy in Japan, Korea, Australia, and New Zealand. Before this role, Patrick worked as the Emerging Asia Cluster Lead for the Pfizer Essential Health business.