Paris: Qatar firm Katara Hospitality, a leading global hotel owner, and AccorHotels, Europe’s biggest hotels group, announced plans to set up a $1 billion investment fund targeting the hotels and hospitality sectors in sub-Saharan African countries.

The fund will amount to up to $500 million in equity, of which Katara Hospitality and AccorHotels will contribute respectively up to $350 million and $150 million over the next 5-7 years, with additional financing capacity reached through leverage and co-investments.

The fund would target greenfield projects, brownfield projects and conversions of existing hotels through acquisitions.

The announcement came during a signing ceremony between Katara Hospitality and AccorHotels and was attended by Sheikh Nawaf bin Jassim bin Jabor Al-Thani, Chairman of Katara Hospitality and Sébastien Bazin Chairman and Chief Executive Officer of AccorHotels.

Commenting on this partnership, Sheikh Nawaf said: “We are delighted to have come to this strategic agreement with AccorHotels. It is evident in the recent times that Sub-Saharan Africa’s hospitality industry has made great strides, and follows the latest positive developments between Qatar and Sub-Saharan Africa to enhance bilateral relations in different industries. We view this fund as an excellent vehicle to take advantage of this compelling markets by teaming up with AccorHotels who provide international hotel brands and operations with strong capabilities.”

“Katara Hospitality is a government-owned organisation whose goals are naturally aligned to the country’s objectives; as the hospitality arm of the Qatar Sovereign Wealth Fund, we identify strategic investment opportunities in other markets; and we continuously optimize our international investments to make the best possible returns whilst at the same time safeguarding our economic future.”

With this initiative, Katara Hospitality and AccorHotels aim at creating the number one sustainable hospitality fund dedicated to Africa, bringing support to job creation, training, transfer of skills, local supply chain and communities in the region, operating in compliance with UN sustainable development goals.

“I am thrilled to announce this key alliance with our outstanding business partner Katara Hospitality. Having been present for over 40 years in Africa, we also know that there are increasing and sizeable needs for quality hospitality.  Through this fund, we will match the expertise of Katara Hospitality together with AccorHotels’ world leading brand portfolio to accelerate our dynamic growth trajectory in the Sub-Saharan region.  Above all, by this initiative we demonstrate our shared intention to support sustainable development over the long-term on this continent,” Bazin said durng the signing ceremony.