In Brief: A notable increase in hotel development is being observed across Africa, with Egypt and East Africa emerging as the primary regions driving this growth.
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IHG Hotels & Resorts to Open Hotel Indigo in New Cairo in 2031 – Image Credit IHG Hotels & Resorts
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Africa’s hotel development pipeline has reached a record high with 675 new hotels and resorts planned, according to a 2026 report by W Hospitality Group. East Africa is leading in construction activity, while Egypt and Morocco account for nearly half of all new rooms in the pipeline.
The 2026 Hotel Chain Development Pipelines in Africa report, released by W Hospitality Group, shows that hotel development across Africa has reached unprecedented levels. The report identifies 123,846 rooms across 675 hotels and resorts in the pipeline, marking an 18.6% increase compared to the previous year, or 12.2% growth on a same-store basis. This expansion is not evenly distributed, with the majority of new projects concentrated in a handful of countries.
Country Breakdown: Egypt and Morocco Dominate
Data from the report highlight that the top ten African countries account for 79% of all pipeline rooms and over 75% of new signings. Egypt leads by a significant margin, with 45,984 rooms in 185 properties, representing more than one-third of the continent’s total pipeline. Morocco follows with 10,606 rooms, while Nigeria, Kenya, and Ethiopia round out the top five. Egypt and Morocco together are responsible for more than 45% of all pipeline rooms, a share that continues to grow due to ongoing signings and planned openings.
Egypt recorded 39 new hotel deals last year and expects 33 openings in 2026. According to Trevor Ward, Managing Director of W Hospitality Group, Egypt’s position at the forefront of hotel development is clear both in terms of new signings and projected openings.
East Africa’s Construction Momentum
While North Africa leads in the overall number of rooms, East Africa stands out for its progress in construction. Ethiopia and Kenya have nearly 80% of their pipeline rooms currently under construction, with Tanzania close behind at 77.5%. This contrasts with lower construction rates in countries like Nigeria and Cape Verde, where a smaller share of planned projects are under construction.
Trevor Ward notes that the high construction ratios in East African countries suggest these markets are likely to see the most new hotel supply in the short to medium term.
Pipeline Status and Future Openings
Looking at project status, Egypt has 51.4% of its pipeline rooms under construction, while Morocco has 64.7%. In contrast, Kenya and Ethiopia both have nearly 80% of their rooms under construction, indicating a higher likelihood of near-term completions.
The report forecasts that more than 65,000 rooms could open in 2026 and 2027. However, historical trends suggest that actual openings may be lower than projections, reflecting the challenges in moving projects from planning to completion.
Role of Major Hotel Chains
The development pipeline is dominated by a few major international hotel brands. Marriott International leads with 31,782 rooms in development, followed by Hilton and Accor. The five largest global hotel chains, including IHG and Radisson Hotel Group, are responsible for about 80% of the pipeline for hotels and rooms in Africa.
Outlook and Upcoming Industry Events
A more detailed analysis of these trends, including signings, construction progress, and anticipated openings, will be discussed at the Future Hospitality Summit Africa, scheduled for March 31 to April 1 in Nairobi. The event is expected to provide further insights into the evolving landscape of hotel development across the continent.
