The African hotel development landscape is undergoing a transformation, with major international hotel chains rapidly expanding their footprint across the continent. The latest data from W Hospitality Group’s Hotel Development Pipeline Report reveals that Africa is experiencing unprecedented growth in hospitality development, with 577 hotels and resorts in the pipeline, amounting to 104,444 rooms. This represents a significant 13.3% increase over the previous year, a notable figure when compared to global growth rates in the hospitality industry.
Much of this expansion is being driven by North Africa, which has seen a remarkable 23% year-on-year increase in hotel development, while sub-Saharan Africa has seen more modest growth of 6%. The overall pipeline growth across the continent is impressive, with an annualized increase of 7% for the last five years. This surge in hotel projects highlights Africa’s rising economic and tourism potential, making it an increasingly attractive destination for global hotel chains.
Egypt and Morocco Lead the Way
At the forefront of this development is Egypt, which continues to lead the continent in terms of hotel and resort projects. With 143 hotels and over 33,000 rooms under development, Egypt is the undisputed leader in Africa’s hospitality boom. This number is nearly four times the amount of hotel rooms in Morocco, which ranks second with 8,579 rooms in 58 hotels.
Other key players in Africa’s hotel development landscape include Nigeria, Ethiopia, Cape Verde, and Kenya. These countries are seeing significant investment from international hotel brands, with Nigeria alone contributing over 7,000 rooms. However, the data shows that while Egypt leads the overall number of hotel rooms, Morocco boasts a higher proportion of projects currently under construction, with over 72% of its rooms in the construction phase, a stark contrast to Egypt’s more modest 50%.
Major International Chains Drive Growth
The hotel development pipeline is largely driven by well-known international hotel chains, with Marriott International leading the charge. Marriott has 165 hotels in the pipeline, totaling 29,639 rooms. Other major players such as Hilton, Accor, and IHG are also heavily invested in Africa’s hospitality future. Hilton, for example, has 93 hotels with 17,040 rooms planned, while Accor is developing 73 hotels, adding 15,013 rooms to the pipeline.
These chains’ strategic investments reflect Africa’s growing appeal as a hub for both business and leisure travel. However, the report highlights a shift in hotel types. Resort hotels are expanding at a much faster rate than city or airport hotels, driven by the increasing popularity of African destinations like Zanzibar, Sharm El Sheikh, and Boa Vista. This trend is supported by larger resort developments, which typically feature over 200 rooms, compared to the 170-room average for city hotels.
A Surge in Franchise Models
One of the most notable trends is the increasing adoption of the franchise model by international hotel chains. The report reveals that nearly 19% of hotel development projects in Africa now involve franchise agreements, a significant rise from just 10% in 2020. This shift is partially due to the emergence of quality, local white-label operators such as Aleph Hospitality and Valor Hospitality, who are increasing confidence in meeting international brand standards.
The Future of African Hotel Development
Looking ahead, the growth in hotel development across Africa shows no signs of slowing down. With over 50,000 rooms expected to open by 2025 and 2026, the African hospitality industry is on track for continued expansion. Notably, the hotel development pipeline is expected to fuel a tourism boom, creating new jobs and economic opportunities across the continent.
The growth of the African hospitality industry also has the attention of key stakeholders in the industry. As highlighted by Matthew Weihs, Managing Director of the Bench, the growth in hotel development across Africa demonstrates the continent’s burgeoning tourism potential. Trevor Ward, Managing Director of W Hospitality Group, added that while the continent faces challenges, the steady stream of new hotel deals underscores Africa’s promise as an investment destination for global hotel chains.
In conclusion, Africa’s hotel development pipeline is experiencing an unprecedented expansion, with major international brands playing a key role in shaping the continent’s future. The rapid growth in resort projects, the adoption of franchise models, and the increasing number of rooms in the pipeline signal a bright future for the African hospitality sector.
