Investors Urged To Move Beyond Copy-And-Paste Hotel Management Models

Source: Supplied | Joep Schoof Chief Operating Officer, Valor Hospitality Partners - Africa

Tourism is booming across the continent, signaling immense opportunity for strategic investment. South Africa, for instance, has demonstrated a remarkable 14% average annual increase in tourist trips over the last decade, while Kenya's tourism earnings in 2024 surged by 30% compared to the previous year.

Global players are taking notice Marriott, Hilton, Radisson and others have announced major expansion plans across the continent. The pipeline is growing, demand is rising and investor confidence is returning.

The opportunities are abundant, but it is not without complexity, and the ability to navigate the nuances within both the promises and the challenges is what will set the average apart from the exceptional in years to come.

Steering the future of the hospitality sector on the continent calls for a keen understanding of how to adopt an agile, resilient and local-first strategy, backed by international best practice, rather than merely replicating global formulas.

For years, African hotels have battled with copy-and-paste management approaches designed for foreign markets.

Operators often failed to consider local buying behaviour, regional infrastructure limitations, seasonality realities, community engagement, or the nuances of African luxury. The result? Underperforming assets and frustrated owners.

Navigating the nuances

The first, and arguably most significant, nuance to navigate is to understand that the ‘African opportunity’ does not refer to a single, monolithic opportunity where a one-size-fits-all approach will get the job done.

Within the continent there are many, varied markets, each with its own distinct cultural, economic and political differences. In many markets, the landscape blends opportunity with volatility, meaning agility and resilience are paramount. These qualities only emerge from working closely with local partners, respecting community dynamics and tailoring solutions to the specific context.

To this end, a local-first approach - like the one Valor has always championed - is more than a philosophy or a smart tagline, it’s the foundation for sustainable growth.

Blending global expertise with local sensibility is not about ignoring best practice or ‘reinventing the wheel’ but about adapting to the unique needs of every asset we manage.

This owner-centric focus is built on a foundation of cultural alignment, ensuring that our strategies are always synchronised with the local environment to deliver maximum commercial value.

Take, for example, how geographic diversification can be a competitive advantage. It positions us to educate owners and clients on robust models, like the franchise framework - still relatively new in Africa - while simultaneously strengthening our operational teams through shared learning.

Ultimately, it enables us to draw on a wide and diverse knowledge base that empowers us to deliver measurable values in diverse markets across the continent.

To achieve this practically, the local-first strategy must integrate across the full operational spectrum. For an operator in West Africa, growth may demand relentless agility and the consistent building of trust with local stakeholders. In Southern Africa, the long-term hospitality value might hinge on incorporating robust sustainability and conservation practices.

Meanwhile, in East Africa, unlocking potential often requires combining cultural richness with resilient infrastructure and supply chains. Even within regions, variability exists, demonstrating the necessity of both macro-level insight, and an understanding of community dynamics, labour markets, infrastructure, procurement realities and government processes as key to shaping success.

Future-proofing through people

Technology, strategy and global best practice aside, the most critical way to future-proof the hospitality sector on the continent is through a strategic investment in people. The human touch remains the ultimate value-add. Africa’s greatest competitive advantage is its people.

At Valor, we proudly call our people ‘Hotelitarians’ to signal our commitment to empowering individuals and elevating the industry by focusing on the development of our people. Investing in local talent and leadership is not simply filling roles; it’s nurturing the next generation of hospitality leaders who inherently understand the local context and possess the global expertise to drive innovation. This, in turn, keeps the industry robust, competitive and appealing.

A local-first approach, in hospitality but it also applies across nearly every sector on the continent, is the foundation of an integrated business strategy that prioritises value, longevity and its people. It drives innovation that fits the context, whether through procurement that supports local economies, design that celebrates local identity or operations built for long-term resilience.

When global expertise and local intelligence are seamlessly integrated, hotels become more than places to stay. They become anchors for community development, platforms for cultural exchange and engines of sustainable economic growth. Steering the future of the hospitality sector on the continent requires the seamless integration of global expertise with local intelligence.

It’s about creating places where business, community and culture thrive together, delivering sustainable returns and measurable value for all. This will be defined by the partnerships operators build with developers, tourism authorities, communities and global distribution networks. Africa is no longer the ‘next’ frontier - it is a dynamic, accelerating market with unique challenges and unmatched opportunities.