Hotel builders are poised to profit off the estimated 10,000 workers coming to harvest natural gas in Palma, Mozambique, according to a Wall Street Journal article. Nearly four years ago an American company discovered one the of world’s largest untapped natural gas reserves off the coast of the small village, which not only had no hotels at the time, but also had limited infrastructure as well, making building hotels in the area a long and costly process. That limited infrastructure will pose a challenge to developing the gas, which means there’s a chance the gas industry could fizzle.
Although that makes building hotels now a risk, building hotels could be extremely beneficial if the gas industry does pan out. Those who are currently building hotels in the area estimate their investments will pay them back in less than 4 years, and provide an annual return in the 15-20% range.
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