Five35’s first exit delivers 3.5x return from Ghana agritech investment

The International Finance Corporation (IFC), an affiliate of the World Bank Group, has offered long-term financing to aid the construction of a Hampton by Hilton hotel in Accra, Ghana. The 170-room hotel is anticipated to generate 990 direct and indirect jobs, comprising 200 permanent positions, thereby bolstering the local workforce. Positioned near Accra International Airport, this establishment has the potential to become Hilton's inaugural hotel in Ghana and one of the first Hampton by Hilton properties in West Africa.

The project's primary objective is to augment the supply of midscale, internationally branded accommodation in Ghana, a market currently dominated by upscale hotels. Travel and tourism constitute approximately 5.7 percent of Ghana's GDP and employ over 800,000 individuals. By introducing midscale accommodation and enhancing hospitality infrastructure, the hotel is projected to stimulate tourism sector development, employment, and economic activity in the country.

"Hampton by Hilton Accra Airport will reinforce Accra's hospitality industry, create jobs, foster local suppliers, and cater to both business and leisure travelers," stated Jean-Louis Feghali, Executive Director of PLP Properties Ltd., the developer of the hotel. "We appreciate IFC's backing as they assist us in executing the project in compliance with international sustainability standards."

Nathalie Kouassi Akon, IFC Division Director for the West Africa Gulf of Guinea, emphasized the significance of investing in quality, sustainable accommodation: "Such initiatives can fortify Ghana's tourism sector and foster employment across the broader economy. IFC's collaboration with PLP Properties will expand Accra's hospitality offerings, fortify demand for local goods and services, and promote environmentally responsible hotel development."

The hotel is intended to procure goods and services from Ghanaian enterprises, including small and medium-sized enterprises. This strategy aims to fortify domestic value chains and ensure that a greater proportion of tourism-generated economic value remains within Ghana. The project is striving for EDGE Advanced certification, IFC's green building standard, which requires the hotel to consume at least 40 percent less energy and 20 percent less water than a conventional building, while also reducing carbon emissions associated with construction materials.

These efficiencies are projected to diminish operating costs and establish a benchmark for resource-efficient development in Ghana's hospitality sector.

The long-term financing from IFC will provide the project with ample time to complete construction and commence operations. The investment aligns with the World Bank Group's Country Partnership Framework for Ghana, which emphasizes private sector-led job creation, economic diversification, and sustainable growth.