Africa’s hotel sector is recording a surge in development, according to the latest Hotel Development Pipeline Report released today. The report shows a 13.3% rise compared to 2024, with 577 hotels and resorts, representing 104,444 rooms, now in the pipeline. This growth is ahead of the single-digit rise recorded globally by leading international hotel chains.
The annual report is compiled by Lagos-based W Hospitality Group, using data from 50 international and regional hotel brands.
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North Africa leads growth
Development activity is accelerating faster in North Africa than in sub-Saharan Africa. North Africa reported a 23% year-on-year increase, while sub-Saharan Africa recorded a 6% rise. Over five years, the pipeline has grown annually by 12% in North Africa and 4% in sub-Saharan Africa.
Egypt remains the leader, with 143 hotels and 33,926 rooms in the pipeline. Morocco follows with 8,579 rooms in 58 hotels. Other countries in the top ten include Nigeria (7,320 rooms), Ethiopia (5,648 rooms), Cape Verde (5,565 rooms), Kenya (4,344 rooms), Tunisia (4,336 rooms), South Africa (4,076 rooms), Tanzania (3,432 rooms), and Ghana (3,125 rooms).
International hotel chains have signed deals in 42 of Africa’s 54 countries.
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Construction activity varies
Although Egypt holds the largest pipeline, less than half of its rooms are under construction. Morocco has over 72% of rooms actively being built. Ethiopia shows the highest ratio of rooms “on site”, followed by Morocco and Ghana. Cape Verde, Nigeria, and Tanzania have some of the lowest percentages.
However, the report notes that “under construction” does not always mean active building. In some countries like Nigeria and Ghana, many sites have remained closed for years.
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Cairo at the centre of development
Cairo is seeing the most hotel development, with 17,757 new rooms projected across more than 70 hotels. Sharm El Sheikh follows with 4,231 rooms across fewer than ten properties.
Other top locations by planned room numbers include Lagos (3,709 rooms), Boa Vista (3,650), Addis Ababa (3,369), Casablanca (2,939), Accra (2,652), Abuja (2,570), Zanzibar (2,523), and Dakar (2,334).
Marriott leads hotel chains
Marriott International leads among global hotel chains, with 165 hotels representing 29,639 rooms in the pipeline. Hilton follows with 93 hotels and 17,040 rooms. Other active groups include Accor (73 hotels, 15,013 rooms), IHG (40 hotels, 7,951 rooms), Radisson Hotel Group (32 hotels, 6,346 rooms), and TUI Hotels & Resorts (11 hotels, 2,954 rooms).
Hilton added slightly more rooms to its African pipeline last year than Marriott International and achieved a higher percentage growth. Barceló Hotels & Resorts more than doubled its pipeline, reaching 2,193 rooms after three large resort signings in North Africa.
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Key trends in development
Three major trends are emerging from the report.
First, the actualisation rate, measuring real openings against expected ones, nearly doubled from 21% in 2023 to 38% in 2024. Though this is still lower than the 75% recorded in 2019, it reflects steady recovery after the impact of COVID-19. Over 50,000 rooms in 304 hotels are expected to open in 2025 and 2026.
Second, resort projects are growing faster than city or airport hotels. Resorts now have an average size of 210 keys compared to 170 for other properties. Almost half of the rooms that opened last year were located in resorts.
Third, hotel chains are increasingly adopting the franchise model. “108 projects representing almost 19% of the total” are now franchised, up from less than 10% in 2020. This rise is supported by the growth of international white-label operators like Aleph Hospitality and Valor Hospitality, and by indigenous operators in Nigeria and Kenya.
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Outlook
The full report will be discussed at FHS Africa, scheduled for 17-19 June in Cape Town. Matthew Weihs, Managing Director of the Bench, organisers of the event, said: “The growth in hotel development across Africa is a testament to the continent’s economic and tourism potential. Furthermore, the commitment from the international hotel chains makes it clear that global players see Africa as a strategic opportunity.”
Trevor Ward, Managing Director of W Hospitality Group, concluded: “Despite the various trials that the continent faces, the fact that hotel chains signed 125 new deals last year, with 21,000 rooms, is evidence that opportunities for further development abound. According to the Global Cities Institute, by the year 2100, 10 of the world’s 16 largest cities will be in Africa, with all but one of them (Cairo) in sub-Saharan Africa. So, one might say that development activity in Africa has barely scratched the surface.”
