Windhoek – This year's Hotel Development Pipeline Report is a definitive study of the International Hospitality Development Project in Africa, revealing record-breaking activities.
577 hotels and resorts rose 13.3% to a 104 444-room development pipeline in 2024, far surpassing the growth of single-digit pipelines reported worldwide by leading international chains.
Compiled by Lagos-based W Hospitality Group, the report shows data from 50 international and regional hotel chains, showing an impressive increase in development activity in North Africa, an increase of 23% year-on-year compared to a 6% increase in sub-Saharan Africa.
Over the past five years, the hotel development pipeline has grown at 4% per year in sub-Saharan Africa, 12% in North Africa, and 7% overall.
Egypt continues to lead the way in terms of development as it has 143 hotels and 33 926 rooms in the pipeline.
This is almost four times more than the second-place Moroccan room with 8,579 rooms in 58 hotels.
The next eight countries ranked by number of rooms are as follows:
Nigeria – 7 320th room. Ethiopia – 5 648; Cape Verde – 5 565; Kenya – 4 344; Tunisia – 4 336; South Africa – 4 076; Tanzania – 3 432; Ghana – 3 125
The international hotel chain has been signed in 42 of Africa's 54 countries.
Despite clear leadership in the number of absolute pipelines, Egypt is less than 50% of the rooms under construction, a significantly lower percentage than second-place Morocco, over 72%.
Of the top 10 Ethiopia countries, the highest “on-site” room ratio is followed by Morocco and Ghana. Cape Verde, Nigeria and Tanzania have the lowest percentages.
However, “under construction” does not necessarily mean there is activity and progress towards completion and opening. For example, many sites in Nigeria and Ghana have been closed for several years, with hard hats barely visible.
Looking at the location of the planned property, a more detailed analysis reveals an extraordinary boom in Cairo, projecting 17,757 new rooms on over 70 hotels.
The contrast with the second place location, Sharm El Sheikh, is dramatic, with 4,231 rooms planned for less than 10 properties.
The city and resort with the next largest pipeline by number of rooms is 3,709 Lagos. Boa Vista, 3,650; Addis Ababa, 3,369; Casablanca, 2,939; Accra, 2,652; Abuja, 2,570; Zanzibar, 2,523; Dakar, 2,334.
Growth is being driven strongly by major international hotel chains such as:
Marriott International, 165 hotels with 29,639 rooms. Hilton, 17 040 rooms 93 hotels. Accor, 73 hotels with 013 rooms on 15. 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. Barcelo Hotels & Resort, seven hotels with two 193 rooms. Ascott, 1 897 rooms, 15 hotels. Kerten Hospitality, 13 hotels with 1 881 rooms and Wyndham Hotels & Resorts, 1 706 rooms.
In the race for domination, Hilton achieved a higher percentage of growth last year, adding slightly more rooms to the African pipeline than Marriott International.
Barcelo Hotels & Resorts recorded the largest percentage growth, more than doubled the pipeline to two 193 rooms and won three major resort signatures in North Africa.
Below the heading number there are three prominent trends.
First, the realization rate (actual opening and expected opening) is almost doubled from 21% in 2023 to 38% in 2024.
Much less than the 75% realization rate achieved in 2019, it shows a continuing recovery from the economic destruction of Covid-19.
Of the total 104,444 rooms in the pipeline, 50,000 rooms (nearly 50%) of 304 hotels are scheduled to open in 2025 and 2026.
Second, resort projects are increasing much faster than city or airport hotels by 210 keys vs. 170, with the larger the number of signatures and the average size of development.
Also, almost half of the rooms that opened last year were located in the resort.
Third, there is a clear movement towards a franchise model representing 108 projects, with 108 projects making up almost 19% of the total, compared to less than 10% in 2020.
The main factors are the emergence of operators from several indigenous peoples, such as Nigeria, Kenya, and other Nigeria, Kenya, and other Nigeria, Kenya, as well as quality, international white operators, such as Aleph Hospitality and brave hospitality, which have increased confidence that brand standards will be met.
The full report will be discussed at FHS Africa (formerly AHIF) from June 17-19 in Cape Town.
This is the region's leading hospitality investment conference, bringing together senior decision makers to shape the future of the industry.
Matthew Weiss, managing director of the Bench organizing FHS Africa, said:
“In addition, commitments from international hotel chains have made it clear that global players view Africa as a strategic opportunity.”
Trevor Ward, Managing Director of W Hospitality Group, concluded: “The fact that the hotel chain signed 125 new deals last year despite the various trials facing the continent is evidence that there is plenty of opportunities for further development in its 21,000 rooms.
“According to the Institute of Urban Studies around the World, by 2100, 10 of the world's 16 largest cities were in Africa, with sub-Saharan Africa all but one (Cairo). So it might be said that development activities in Africa had little damage to the surface.
