Katara Hospitality, a Qatari hotel owner and developer, has established an investment fund in partnership with Accorhotels to target hospitality in Africa.

The fund is going to focus on new hotels, property refurbishments and conversions of existing hotels. Accorhotels hopes this will eventually encompass 40 hotels in the sub-Saharan region. The companies have earmarked the region for its growth opportunities and are hoping to bring job creation, training and skills transfer.

Katara Hospitality says the move follows the latest positive developments between Qatar and sub-Saharan Africa to enhance relations between the two.

The companies are targeting $1 billion for the fund with Katara having already contributed $350 million and Accorhotels $150 million. Additional finances are expected to be raised through leverage and co-investments.

Sebastien Bazin, Chairman and CEO of Accorhotels concluded: “Having been present for over 40 years in Africa, we know that there are increasing and sizeable needs for quality hospitality.”