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The recently opened Hilton Cairo Nile Maadi Hotel – Image Credit Hilton
The hospitality sector in Africa is experiencing a significant boom, according to this year’s Hotel Development Pipeline Report by Lagos-based W Hospitality Group. The report, which offers an in-depth study of international hospitality development projects across the continent, highlights an impressive growth of 13.3% compared to 2024. This increase notably surpasses the single-digit pipeline growth reported globally by leading international chains.
North Africa has seen substantial development, with a 23% year-on-year increase compared to a 6% increase in sub-Saharan Africa. Over the past five years, the hotel development pipeline has grown at an annualized rate of 4% in sub-Saharan Africa, 12% in North Africa, and 7% overall.
Egypt is leading the development race with 143 hotels and 33,926 rooms in the pipeline, nearly quadrupling the number of rooms in second-placed Morocco. Other countries with significant numbers of rooms in the pipeline include Nigeria, Ethiopia, Cape Verde, Kenya, Tunisia, South Africa, Tanzania, and Ghana. International hotel chains have signed deals in 42 of Africa’s 54 countries.
A detailed analysis of planned locations reveals that Cairo is experiencing a massive boom, with over 17,757 new rooms projected to be built in more than 70 hotels. Major international hotel chains spearhead this growth, with Marriott International leading the pack with 165 hotels and 29,639 rooms.
Hilton, Accor, IHG, Radisson Hotel Group, TUI Hotels & Resorts, Barceló Hotels & Resorts, The Ascott, Kerten Hospitality, and Wyndham Hotels & Resorts are also making significant contributions to this development boom.
Three notable trends underpin these headline figures. First, the rate of hotel openings has nearly doubled from 21% in 2023 to 38% in 2024, indicating a recovery from the economic impact of COVID-19. Second, resort projects are increasing faster than city or airport hotels in percentage terms and absolute numbers. Third, there is an evident shift by chains towards the franchise model, driven by the emergence of quality, international, white-label operators.
These findings will be discussed in detail at the June FHS Africa conference in Cape Town. This leading hospitality investment conference brings together industry decision-makers to shape the sector’s future. As the hotel development boom in Africa continues, the continent is set to become a hospitality hub, providing ample opportunities for investors and operators alike.
