Booming Hotel Development in Africa Driven by Egypt and Marriott’s Impact

April 9, 2025 stocks24

Windhoek – The latest Hotel Development Pipeline Report, which serves as the authoritative analysis of international hospitality development projects across Africa, indicates unprecedented activity this year.

The development pipeline boasts 577 hotels and resorts, translating to 104,444 rooms, reflecting a 13.3% increase anticipated for 2024. This surge far exceeds the single-digit growth reported globally by major international hotel chains.

Crafted by the Lagos-based W Hospitality Group, utilizing data from 50 international and regional hotel chains, the report highlights a remarkable uptick in development activity, particularly in North Africa, which experienced a 23% increase year-on-year, as opposed to a 6% growth in sub-Saharan Africa.

Over the previous five years, the hotel development pipeline has seen an annualized growth rate of 4% in sub-Saharan Africa, 12% in North Africa, and 7% overall.

Egypt continues to dominate the development landscape with 143 hotels and 33,926 rooms currently in the pipeline.

This figure is nearly four times the volume of rooms in second-placed Morocco, which has 8,579 rooms across 58 hotels.

The next eight countries, based on room count, include:

Nigeria – 7,320 rooms;
Ethiopia – 5,648;
Cape Verde – 5,565;
Kenya – 4,344;
Tunisia – 4,336;
South Africa – 4,076;
Tanzania – 3,432;
Ghana – 3,125;

International hotel chains have secured agreements in 42 of Africa’s 54 countries.

Despite its impressive pipeline numbers, Egypt has less than 50% of its rooms under construction, a notably smaller share than Morocco’s, which exceeds 72%.

Among the top 10 nations, Ethiopia boasts the highest proportion of rooms “on site,” followed closely by Morocco and Ghana. Meanwhile, Cape Verde, Nigeria, and Tanzania reflect some of the lowest percentages.

Nevertheless, “under construction” does not inherently indicate progress toward completion and opening; for example, numerous sites in Nigeria and Ghana have been inactive for years, with barely any visible development.

A detailed analysis of planned property locations uncovers a significant boom in Cairo, which has 17,757 new rooms anticipated across over 70 hotels.

In stark contrast, Sharm El Sheikh ranks second with just 4,231 rooms projected in fewer than 10 developments.

The cities and resorts featuring the largest room pipelines include Lagos (3,709), Boa Vista (3,650), Addis Ababa (3,369), Casablanca (2,939), Accra (2,652), Abuja (2,570), Zanzibar (2,523), and Dakar (2,334).

The primary drivers of this growth are the major international hotel chains, which include:

Marriott International – 165 hotels with 29,639 rooms;
Hilton – 93 hotels with 17,040 rooms;
Accor – 73 hotels with 15,013 rooms;
IHG – 40 hotels with 7,951 rooms;
Radisson Hotel Group – 32 hotels with 6,346 rooms;
TUI Hotels & Resorts – 11 hotels with 2,954 rooms;
Barceló Hotels & Resorts – 7 hotels with 2,193 rooms;
The Ascott – 15 hotels with 1,897 rooms;
Kerten Hospitality – 13 hotels with 1,881 rooms;
Wyndham Hotels & Resorts – 7 hotels with 1,706 rooms;

In the competitive landscape, Hilton added slightly more rooms to its African pipeline last year than Marriott International, achieving a higher percentage increase as well.

Barceló Hotels & Resorts saw the most considerable percentage growth, more than doubling its pipeline to 2,193 rooms, following three significant resort signings in North Africa.

Under the surface of these impressive statistics, three noteworthy trends emerge.

Firstly, the actualisation rate (the ratio of actual openings to expected openings) has almost doubled from 21% in 2023 to 38% in 2024.

While still significantly below the 75% actualisation rate achieved in 2019, this indicates a continued recovery from the economic impact of Covid-19.

Of the total 104,444 rooms in the pipeline, over 50,000 rooms (nearly 50%) in 304 hotels are projected to open in 2025 and 2026.

Secondly, resort projects are expanding at a much quicker pace than urban or airport hotels, both in terms of percentage and absolute numbers, driven by higher signing rates and the larger average sizes of developments—210 keys compared to 170. Almost half of the rooms that opened last year were situated in resorts.

Lastly, there is a discernible shift by chains toward the franchise model, with 108 projects accounting for nearly 19% of the total, in contrast to less than 10% in 2020.

This trend is largely influenced by the rise of quality international white-label operators, such as Aleph Hospitality and Valor Hospitality, as well as local operators in Nigeria, Kenya, and elsewhere, enhancing the confidence that brand standards can be adhered to.

The complete report will be presented at the FHS Africa (formerly AHIF) on June 17-19 in Cape Town.

This is the premier hospitality investment conference in the region, gathering senior decision-makers to shape the industry’s future.

Matthew Weihs, Managing Director of the Bench, which organizes FHS Africa, stated: “The expansion of hotel development throughout Africa highlights the continent’s economic and tourism potential.”

“Moreover, the commitment from international hotel chains indicates that global players recognize Africa as a strategic opportunity.”

Trevor Ward, Managing Director of W Hospitality Group, concluded: “Despite the various challenges facing the continent, the fact that hotel chains entered into 125 new deals last year, adding 21,000 rooms, demonstrates that there are ample opportunities for further development.

“According to the Global Cities Institute, by 2100, 10 of the world’s 16 largest cities will be located in Africa, with all but one (Cairo) situated in sub-Saharan Africa. Thus, one might argue that development activity in Africa has barely begun to tap into its potential.”