Radisson's Ramsay Rankoussi on hotel growth trends and Africa's rising cities

Zawya

3 days ago

Africa's hospitality sector is accelerating its post-pandemic recovery, with secondary cities and adaptive conversions emerging as key drivers of hotel growth.
Ramsay Rankoussi, Vice President of Development for Africa and Turkey, Radisson Hotel Group.
During the Future Hospitality Summit (FHS) Africa, held from 17 to 19 June at The Westin Cape Town, Bizcommunity caught up with Ramsay Rankoussi, vice president of development for Africa and Turkey at Radisson Hotel Group.
He shared insights into the group's evolving Africa strategy, investor appetite, and the importance of credible local partnerships in unlocking regional potential.
How would you describe investor sentiment around Africa's hospitality sector in 2025, and where are you seeing the strongest pockets of growth?
I think it's important to define Africa not as one market but as 54 countries, each with its own opportunity and potential. For us, priority markets include South Africa, where we currently have 15 hotels and aim to nearly double that in the next five years.
Morocco is also showing strong potential, driven by its Vision 2030, major events like the World Cup, and infrastructure reforms. Egypt continues to grow steadily, and Nigeria benefits from macroeconomic factors linked to oil and gas, driving business demand.
The key fundamentals for investment remain infrastructure and accessibility — countries that can attract both international and regional/domestic demand post-Covid.
Once these factors are in place, it becomes a question of construction costs, cost of capital, access to financing, and facilitating investment through licensing, permits, and streamlined bureaucracy.
We're seeing growing interest in secondary and emerging cities across the continent. How is Radisson positioning itself in these markets, and what makes them attractive investment destinations?
Secondary cities are growing economic and industrial zones, with lower land barriers and costs compared to prime locations. For example, in South Africa's Middleburg, an economic zone is developing, and we plan to open a hotel there this year.
These areas offer untapped demand, lower development costs, and potentially better yields. Since many of these cities currently lack hotels, there is a clear opportunity to capture new markets at lower investment levels.
Conversions have become a bigger part of many groups' growth strategies. How is Radisson leveraging property conversions in Africa, and what benefits do they offer owners and local economies?
With the challenges we face around cost of capital, inflation, funding delays, and material shortages, we've mitigated risk by focusing on conversions — taking existing or nearly completed properties and rebranding them. This approach lowers the risk of non-completion and allows quicker market entry.
Last year, we opened nearly 1,000 rooms across Africa through conversions. For investors, conversions reduce risk while offering brand benefits.
For Radisson, it mitigates delays caused by financing or cost pressures. We still do new builds with strategic partners, but conversions remain a priority to reduce execution risk.
Partnerships remain critical when operating across Africa's diverse markets. What qualities do you look for in local partners, and how does this contribute to long-term success?
In every country, we operate with a local partner who understands the real estate side, often institutional investors or high-net-worth individuals.
Radisson provides brand management and operational expertise, while the partner facilitates development by managing permits, building codes, funding, and construction relationships.
Success depends on a shared vision — creating employment during and after construction, and delivering benefits for owners, employees, and the local community.
That long-term partnership approach is what ensures both economic impact and operational success in these markets.
Workforce development and local empowerment are often overlooked in discussions about hotel expansion. How is Radisson investing in skills development and inclusive hiring as part of its growth strategy?
We're proud that across Africa, 99.9% of our employees are locals. We take this responsibility seriously and fast-track local talent into executive and general manager roles as part of our diversity efforts. Temporary expatriates may come in where talent gaps exist, but only to mentor and groom local staff.
Talent creation requires both private and public investment. Radisson offers training through its academy and career pathways, but many countries still lack the necessary institutions and facilities for the hospitality sector; this remains a challenge.
Finally, what excites you most about the future of African hospitality over the next five years?
The continent is vast, young, dynamic, and growing rapidly. Economies and domestic demand continue to expand alongside improving connectivity and infrastructure. While Africa has been underrepresented on the global map due to limited airline connectivity and infrastructure, that is changing.
Local and regional players are now promoting Africa worldwide, highlighting its diversity of business, convention, and leisure offerings — from coastal resorts to urban hotels. The cultural diversity across countries is a beauty of the continent.
Most importantly, the young talent emerging today will be the future leaders of African hospitality.
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