Dubai World sheds light on its hotel investment in Africa

Dubai World's recognition of hospitality and tourism opportunities on the African continent is clear. Its first investment was the $1.2bn purchase of the Victoria and Alfred Waterfront in Cape Town, South Africa in 2006.

Two year's later its investment in African hospitality has burgeoned to some 15 hotels in seven different countries which are already in existence or under development, and a signed memoranda of agreement for hotel developments in at least four other countries.

"Though there are many challenges in Africa, we see many good opportunities and we are here for the long term," says Wilson.

Dubai World has interests ranging from real estate to ports and has rapidly and firmly established itself as a contender in Africa's elite hotel stakes. The company's sights are set on creating tourism gems and hotel property assets for the African continent. It has already successfully invested in prime African hotel and luxury lodge developments in South Africa, Mozambique, Comoros, Zanzibar, Djibouti, Rwanda and Morocco where work is underway. Further hotels are expected to be developed in Senegal, Gabon, Nigeria and Benin.

Wilson says "Dubai World Africa is here to stay, bringing with it the philosophy of Dubai ...Let's build it and the world will come" a view which is evident in the Dubai skyline.

Dubai World Chairman Sultan Ahmed bin Sulayem has indicated that the company will invest about $1.5bn in Africa over the next five years.

"Growing tourism appeal and opportunities in Africa will serve to boost local economies and to grow both development and conservation projects," says Sultan bin Sulayem.

"We are bringing to Africa all the necessary resources, skills and expertise that have helped us transform Dubai into the iconic city that it is today. We have the chance to create truly world-class hotels on the continent."

Sultan bin Sulayem lists Africa alongside China and India as the group's hotspots for investment. "There are vast opportunities in Africa, opportunities unlike anywhere else in the world, such as the magnificent hotels we are investing in. Our presence on the continent places us at an advantage for African hotel investment," adds Sultan bin Sulayem.

Dubai World Africa CEO James Wilson explains that the company has a dedicated team seeking investment opportunities in Africa. "Our commitment and investment demonstrates confidence in the economies of the African countries in which we own hotels and signals strengthening commercial links between the Middle East and Africa".

Maximising its inaugural African investment, Kerzner International's One & Only is already building a luxury hotel at the Victoria and Alfred Waterfront, which is currently being treated to an extensive expansion which will double the space available and attract major hotel, leisure and retail groups to the property. The V&A Waterfront currently has 7 top end hotels operating with more 5 star hotels on the way.

In South Africa's Cape Winelands Dubai World Africa also owns Pearl Valley Golf Estates, a 170-hectare championship golf course development, through its Leisurecorp division. The development masterplan includes a 5-star hotel and 60 private apartments at Pearl Valley.

Dubai World Africa has also successfully acquired a major shareholding in the world-famous South African wildlife reserves Shamwari Game Reserve, Sanbona Wildlife Reserve and Jock Safari Lodge. This trio of top-end resorts are each superbly located on prime land with excellent development opportunities. Additional luxury lodges are planned for development on these world leading game reserves.

Shamwari Game Reserve is a flagship conservation property, adjacent to the Addo Elephant Park in the Eastern Cape province of South Africa. Shamwari spans over 20,000ha and comprises six luxury lodges of refined elegance in a wilderness that boasts five diverse eco-systems. Each lodge carries a five-star grading and together provide some 120 beds, luxury spa, two restaurants and a variety of amenities. Shamwari is the ultimate African adventure and conservation effort coupled with responsible tourism and has won the World Travel Awards' Leading Conservation Company and Game Reserve award for eleven consecutive years, in addition to numerous other international awards.

Located in the Western Cape of South Africa, Sanbona Wildlife Reserve is one of the only 'Big 5' game reserves in the province. It offers 30 beds in two superlative five-star lodges located in 54,000ha of reserve which also includes a spa and retail facilities and is well known for it's ancient Bushman rock art, fauna and extensive array of flora. Visitors to Sanbona have the opportunity to walk in the reserve and appreciate the wide-open landscape on which this biodiversity thrives. It is 2.5-hours drive from Cape Town and offers the facility of a private landing strip.

Jock Safari Lodge is located on a 6,000ha concession in the Kruger National Park, which is reserved for the exclusive use of the guests of its two five-star lodges which provide a total of 24 beds, served by both spa and retail services. The Kruger National Park occupies 1,948,528ha of Mpumalanga and is approximately 350km long and 60km wide (on average). Kruger is reportedly the most biodiverse game reserve game reserve on Earth, with huge variety amongst mammals, birds, fish, insects and plants. The lodge is some 420km from Johannesburg, the capital city of South Africa, and 98km from Kruger Mpumalanga International Airport. In proximity, in the same province, is Dubai World Africa's most recent acquisition pegged for development of luxury lodges is the 30,000 hectare Nkomazi Game Reserve, near Badplas.

Expanding through the continent, Dubai World Africa announced that it will invest $200m in the Bilene Hotel, a luxury beach resort, golf estate and eco development along 4km of exquisite prime beachfront in Mozambique. Situated in a popular holiday village to the south of the country, just north of Maputo, the resort spans 1,000ha and encompasses 18km Sao Martinho Lagoon, nature reserve and turtle breeding area. The development will include the creation of an international competition standard golf course, a magnificent 5-star hotel as well as 500 golf course and beach villas and condos, extensive watersport facilities and a diving centre. The resort will be served by its own airport, Bilene Praia.

Dubai World Africa is investing $70m in the development of a 5-star international luxury hotel in Comoros, The Kempinski Comoros Luxury Beach Resort and Residences will rise in what was previously La Galawa Resort. The prestigious hotel group, Kempinski, have been appointed to manage the premier beach resort. Sultan Ahmed Bin Sulayem, Chairman of Dubai World says that the development of the beach resort marks the first stage of a strategic partnership between Dubai World Africa and the Government of Comoros. "We believe our partnership and the contribution of Kempinski Hotels will make a significant contribution to the tourism offering in Comoros," says Sultan Ahmed Bin Sulayem. Dubai World Comoros Limited, in which the Union of Comoros Government is a shareholder together with Dubai World Africa, was established specifically for the acquisition of this landmark property.

Djibouti is the site of the company's new $250m Kempinski Hotel, which includes the expansion of the beachfront and the development of 50 luxury villas. A further 78 rooms and 54 apartments are currently being added to the Djibouti Palace Kempinski. A beautiful roof top-bar at the top of the six-storey building offers breathtaking sea views, a children's club, full health spa and vitamin bar/ gym are all due for completion by December 2008.

Zanzibar is the site of Dubai World Africa's $150m beach resort for which One & Only has been appointed to build a luxury hotel and which includes 3km of prime beachfront property.

Furthermore, Dubai World Africa has planned investments of some $250m in Rwanda, including five hotels and resorts, where it is developing a tourism master plan, together with the government, for the country. With the government as a minor shareholder, Dubai World Africa is currently undertaking a variety of redevelopments including that of the Akagera Game Reserve Lodge and National Park as well as Gorilla Nest Lodge.

Together with a new signature golf course, Dubai World Africa will construct the Kigali Golf Course Hotel, which will offer luxury 5-star accommodation in 150 rooms. The development of 300 residences on golf estates is also planned for Kigali. In partnership with the Tourism Office, Dubai World Africa will continue the development of the Nyungwe Eco Lodge adjacent to the majestic Nyungwe Rain Forest and the Volcanoes National Park Tented Camp.

In Morocco, The One and Only Mazagan Resort a coastal 5-star resort which is currently being developed will include luxury rooms, residential apartments, a magnificent swimming pool, spa, restaurants, conference facilities and retail outlets.

Further unlocking the tourism potential of the African continent, Dubai World Africa has signed a memorandum of agreement with the Government of Senegal to develop a multi-million dollar world-class 5-star hotel and beach resort on Gorée Island, located in Dakar's main harbour.

The company has entered negotiations with the Government of Benin to develop large-scale tourist attractions in the West African country, including a 32 kilometre beachfront development, which will be master-planned, as well as an international hotel in the capital city of Porto Novo.

Similar agreements, which include hotel developments, have also been signed in Gabon and Nigeria by Dubai World Africa. Wilson believes there are strong synergies between Dubai World Africa's current and future hotel investments on the continent. "The huge potential of enhanced tourism collaboration between countries in specific regions presents many exciting opportunities. Africa has a variety of eco tourism destinations including incredible game reserve properties available for tourists to visit and this complimented with traditional 5 star hotels bodes well for tourism on the continent," says Wilson.