The survey reports pipeline activity for 134 brands across the continent, highlighting their signed deals for hotel projects under development in Africa.
A hotel pipeline typically refers to a collection of hotel projects and investments that are in various stages, including planning, construction, or pre-opening, but are not yet operational.
The hotel development landscape in Africa has evolved significantly over the years, positioning the continent as one of the most prominent regions globally in terms of hotel growth.
However, the industry faces challenges, such as economic difficulties, political turmoil, and natural and man-made disasters which often make headlines, creating negative perceptions of certain African countries and, at times, the continent as a whole.
The report, published by W Hospitality Group, covers all 54 African countries, including North Africa (Morocco, Algeria, Tunisia, Libya, and Egypt), sub-Saharan Africa, and Indian Ocean islands (Seychelles, Mauritius, Comoros, and Madagascar).
It offers consistent, reliable, and comparable data on hotel development pipelines in Africa, capturing the activities of hotel chains already operating on the continent and those looking to enter for the first time.
Hotel Chains Expand in Africa
African hotel chains are growing as investments, new developments, and rising tourism boost demand.
Local chains are capitalizing on a growing middle class and improved infrastructure, offering a mix of cultural authenticity and modern amenities. This growth reflects the continued potential of Africa’s hospitality sector.
According to the report, the hotel chains have signed deals in 41 African countries. West Africa takes the lead, with pipeline development activity in 14 of the 18 countries in the region.
The Southern and Indian Ocean sub-region closely follows, with 11 countries showing pipeline activity.
This year, the region experienced the loss of Libya and Sudan, where the only hotel projects in each country were canceled, but The Gambia was added to the pipeline, marking a new development.
The top 10 countries by the number of rooms in the pipeline are outlined in the table below. These countries represent 69% of the total hotels in the survey.
| Rank | Country | Hotels | Rooms | Average Size (Rooms) |
|---|---|---|---|---|
|
1 |
Egypt |
109 |
26,241 |
241 |
|
2 |
Nigeria |
50 |
7,622 |
152 |
|
3 |
Morocco |
52 |
7,169 |
138 |
|
4 |
Ethiopia |
31 |
5,128 |
165 |
|
5 |
Cape Verde |
16 |
5,056 |
316 |
|
6 |
Tunisia |
18 |
4,121 |
229 |
|
7 |
Kenya |
31 |
4,268 |
138 |
|
8 |
South Africa |
22 |
3,427 |
156 |
|
9 |
Algeria |
13 |
2,603 |
200 |
|
10 |
Ghana |
19 |
2,568 |
135 |
| Total | – | 361 | 68,203 | 189 |
Egypt, Nigeria, Morocco, and Ethiopia retained their positions from last year.
Egypt’s unique regional charm and well-established tourism industry make it an attractive location for hotel development and operations.
The country’s numerous cities, resorts, and economic hubs, such as New Cairo, combined with its proximity to European and Middle Eastern markets, multiple airports, and robust airlift, further enhance its appeal.
Moreover, access to domestic financing for hotel development is a significant advantage. However, the ongoing conflict in the Eastern Mediterranean and Red Sea has negatively impacted Egypt’s tourism industry.
Meanwhile, Nigeria has climbed to second place in the rankings, driven by nine new hotel deals signed in 2023.
Notably, international hotel chains such as Hilton and Radisson (each with three deals), Marriott International (two deals), and Leva Hotels (one deal) are increasingly investing in Nigeria’s burgeoning hotel sector.
Other countries at the top of the hotel development rankings include Morocco with 7,169 rooms, Ethiopia with 5,128 rooms, Cape Verde with 5,056 rooms, and Tunisia with 4,121 rooms.
Kenya, South Africa, Algeria, and Ghana round out the top 10 countries by the number of rooms in the pipeline.
These countries represent significant growth in Africa’s hotel development sector.
