CDC Group, the wholly UK government-owned Development Finance Institution, announced its EUR46 million investment in ONOMO Hotels. The investment is expected to be channeled into ONOMO’s development pipeline of more than 20 hotels across Africa in the next five years. This completes the group’s €106 million equity fundraising efforts, including CIC Capital and Batipart, who remain the controlling shareholders of the group.
ONOMO Hotels is an African hotel group, with a 3-star, business-focused hotel brand. The group is headquartered in Casablanca, and was started by former AccorHotels executives who saw the growing need to provide an affordable, business-focused hotel product to a pan African and international clientele. The group draws on African themes for its architecture and design, and sources local materials in the construction, such as using mud bricks manufactured by local artisans from Senegal and Mali.
The hotel group currently operates in six markets, including Abidjan, Bamako, Cape Town, Dakar, Libreville, and Lomé. Cape Town is the most recent opening, with the rebranding of the 165-room Inn on the Square, and a 155-key hotel in Conakry, Guinea is expected to open by year end. The recent investments will fast-track development and spur completions of projects in the pipeline, as well as support the group’s expansion into Southern and East Africa.
CDC was founded in 1948 with a mission to support the building of businesses across Africa and South Asia. Its portfolio of investment, as at year end 2016, was valued at £4.8 billion in 1,245 businesses. In 2016, £1.2 billion was invested in businesses in developing countries, with an average annual return on net assets of 12.9% (in £) and 7 % in (in US$).