Global emerging markets and private equity company Actis, and Westmont Hospitality Group have announced the acquisition of the 309 key Sheraton Casablanca Hotel in Casablanca, Morocco. The hotel was acquired for a total consideration of $50 million from a Moroccan Government Entity. This implies a valuation of c. $161,812 per key, much less than the $385,000 per key in the acquisition of the Movenpick Hotel Accra, Ghana in 2016. The average daily rates in this hotel range between $336 and $150.
Actis and Westmont established a joint venture in 2018 to acquire hospitality assets in major cities across Africa. The joint venture closed its first acquisition in September 2018 with the 231 key Four Points by Sheraton located in Victoria Island, Lagos, Nigeria.
Funke Okubadejo, Director at Actis, says: “The acquisition of the Sheraton Casablanca marks the next step of our joint venture platform. Current hotel supply in Casablanca is not sufficient to meet the greater demand for higher-end products. As an experienced and trusted partner, we have enormous confidence in Westmont’s ability to handle the operational aspects of this exciting investment.”
Built in 1989, Hotel Casablanca is located along the Moroccan beachfront in the Old Medina of Casablanca, Morocco.
This purchase represents Actis’ first foray into the North African hospitality market and solidifies their transition from brownfield development to the acquisition of income producing assets. Actis and Westmont look to implement a comprehensive business plan which includes a full refurbishment.
Ewan Cameron, Director of Africa Development at Westmont added “Morocco is a promising investment destination on the Africa continent, with convenient access to the European single market. Casablanca City is frequently sighted as the first investment base for European companies expanding into Africa. Actis and Westmont acquiring the landmark Sheraton Casablanca and investing to make the Sheraton once again the first choice for business travellers and meeting hosts in Morocco is a logical addition to our African hotel investment plan.“
Actis, with 200+ investments and 160+ exits, is a leading investor in growth markets across Africa, Asia, and Latin America. Westmont Hospitality Group is a canadian based Global Hospitality Group founded in 1975.
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