Business

Africa’s Hotel Sector Grows with Opening of New Hotels

Africa’s hospitality sector is thriving and experiencing record growth as hotel groups such as Marriott, Hilton, and Radisson are establishing their hotels in the continent’s fastest-growing markets like Egypt and Morocco.

According to a report entitled “Hotel Development Pipeline Report,” which was published by the Lagos-based W Hospitality Group, the African hotel chain development pipeline totals 577 hotels with 104,444 rooms, a massive 13.3% increase on last year. 

This total has been analysed by W Hospitality Group divided into two main regions – North Africa comprising five countries such as Morocco, Algeria, Tunisia, Libya and Egypt), and Sub Saharan Africa comprising 49 countries, including the Indian Ocean islands. 

The report was compiled based on data from 50 international and regional hotel chains, and shows that development activity has been growing impressively in North Africa, which saw a 23% y-o-y increase on 2024 (measured by rooms), whilst in the sub-Saharan Africa, the increase was 6% for the same period.

Over the past five years, the hotel development pipeline has grown at an annualised rate of 4% in sub-Saharan Africa, 12% in North Africa and 7% overall, the report said.

West Africa dominates, due to the region having the largest number of countries. There are 12 countries in Africa, down from 13 last year, which do not feature in this analysis, having zero chain pipeline hotels. 

These are mostly (Libya, Mali and Sudan excepted) some of the smallest countries on the continent.  The Comoros and Somalia join the “with pipeline” list this year.

Of the countries with no deals, eight already have branded supply, and there are only three countries, Burundi, Central African Republic and Eritrea, which have no deals and no existing branded supply, but all of which have had branded hotels in the past.

Egypt Leads

Egypt dominates the African pipeline every year, with 32.5% of the total rooms this year, up from 28% last year, and four times the number of rooms in second-placed Morocco.  Nigeria changed places with Morocco, coming in at third place, with only five deals signed in the former last year, and 13 in the latter. 

The difference in the average size of the signed deals is quite marked, with Egypt scoring double Tanzania. 

There are some big beach resorts in destinations such as Sharm El Sheikh and Hurghada, and some quite small safari lodges in national parks such as Serengeti, which influence the average in Tanzania.  Cape Verde is also characterised by big beach resorts, in Boa Vista and elsewhere, the report said.

Hafid Mirabti, Director of Business Development, Middle East, Africa & Turkey, Ascott International Management, said that 2024 was truly a year of going unlimited for Ascott as we celebrated the group’s 40-year journey in operating hospitality assets globally. 

In Morocco, Ascott International Management deepened its engagements with the owners and partners, and had the privilege of introducing lifestyle hotels and resorts brand “The Unlimited Collection” along with its flagship brand “Ascott” both opening in Marrakech in 2027. In Casablanca Ascott opened the first Citadines in the country, “Citadines Almaz Casablanca, he said.

“We are excited as we continue accompanying our partners into new destinations in Africa, and deliver through our flex and hybrid suite of brands our unique value that owners seek,” Mirabti added.

Global Business Magazine

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