Africa’s Hotel Development Boom: A Record Year
The hotel development landscape in Africa is experiencing unprecedented growth, as highlighted in the latest Hotel Development Pipeline Report. This essential study tracks international hospitality projects across the continent and reveals a remarkable surge in activity. Currently, there are 577 hotels and resorts in development, totaling a staggering 104,444 rooms. This represents a substantial 13.3% increase from the previous year, far surpassing the single-digit growth rates seen globally among leading hotel chains.
Regional Growth Trends
The report, compiled by the Lagos-based W Hospitality Group, draws insights from data provided by 50 international and regional hotel chains. It underscores a notable uptick in development activity in North Africa, which experienced a 23% year-on-year increase, compared to a 6% growth in sub-Saharan Africa. Over the past five years, sub-Saharan Africa has seen an annualized growth rate of 4%, while North Africa has surged ahead with a 12% increase, contributing to an overall continental growth rate of 7%.
Leading the Pack: Egypt Takes the Lead
Egypt emerges as the frontrunner in hotel development, boasting 143 hotels and a total of 33,926 rooms in the pipeline. This figure dwarfs the room count in Morocco, which comes in second with 58 hotels and 8,579 rooms. Notable mentions in the top 10 by room count include Nigeria, Ethiopia, Cape Verde, Kenya, Tunisia, South Africa, Tanzania, and Ghana. Impressively, international hotel chains have secured deals in 42 of Africa’s 54 countries.
While Egypt leads in the overall number of rooms in the pipeline, it’s worth noting that less than half of these rooms are currently under construction. In contrast, Morocco boasts a higher proportion of rooms under construction, with over 72% of the total. Ethiopia leads the pack in the percentage of rooms “on site” among the top 10 countries, followed closely by Morocco and Ghana. However, it’s essential to highlight that the label “under construction” doesn’t always indicate active progress, as some projects in Nigeria and Ghana have faced delays.
Hotspots of Development
A closer examination of the development locations reveals a significant concentration of projects in Cairo, where over 17,700 new rooms are planned across more than 70 hotels. In contrast, Sharm El Sheikh, the second-largest development location, will see just over 4,200 rooms spread across fewer than 10 properties. Other cities with notable pipelines include Lagos, Boa Vista, Addis Ababa, Casablanca, Accra, Abuja, Zanzibar, and Dakar.
Key Players in the Expansion
Driving this growth are international hotel chains, with Marriott International leading the charge with 165 hotels and 29,639 rooms in development. Other major players include Hilton, Accor, IHG, and Radisson Hotel Group. Notably, Hilton surpassed Marriott in the number of rooms added to its pipeline last year, while Barceló Hotels & Resorts saw the highest growth percentage, doubling its pipeline to 2,193 rooms with significant signings in North Africa.
The report showcases several emerging trends, including a notable increase in the actualization rate—the proportion of hotels that open as planned. This rate nearly doubled from 21% in 2023 to 38% in 2024, signaling a recovery from the impact of COVID-19. Over 50,000 rooms across 304 hotels in the pipeline are expected to open in 2025 and 2026.
Emerging Trends and Shifts
Resort developments are outpacing city and airport hotels in both absolute numbers and percentage growth, fueled by large signings and the typically larger scale of resort projects. Last year, almost half of the new hotel openings were resorts, reflecting a growing demand for leisure and luxury accommodations.
Future Outlook and Industry Gathering
A noticeable shift towards the franchise model is observed, with 108 projects (approximately 19% of the total) opting for this approach—a significant increase from previous years. This shift is attributed to the rise of reputable international operators like Aleph Hospitality and Valor Hospitality, along with the growing confidence of local operators in countries such as Nigeria and Kenya.
The comprehensive insights from the report will be shared at the upcoming FHS Africa conference (formerly AHIF) in Cape Town from June 17-19. This gathering of industry leaders will provide a platform to delve into the future of hospitality development across the dynamic landscape of Africa.
