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Hotel Development in Africa on the Rise

Confidence is Growing Despite Challenges

Hotel development in Africa is on the rise. In 2017 the number of planned rooms increased by thirteen percent. It is quite an achievement for a continent that still battles with economic problems to date.

Hotel development up by 13 percent

According to the annual survey by W Hospitality Group, there are almost 73,000 rooms scheduled in 417 hotels from 36 international and regional contributors. The Hotel Chain Development Pipelines report has been acknowledged as the most authoritative source of growth information in the sector. The figures have grown each year, increasing by more than double since 2009.

It was a challenging 2016 for many African countries. Oil prices and other commodities continued to dip and currencies devalued. This may have affected confidence in the short term, seeing that the number of signed deals in 2016 was 86, which is down from 121 in 2015.

“But there are encouraging signs that we are turning a corner in 2017,” said Trevor Ward of the W Hospitality Group. “While growth a bit silent now, there is definitely an acceptance of the new normal, with a desire to move forward again in a climate of lower-valued currencies, less government spending and lower GDP growth.”


W Hospitality Group's report shows that, after several years of turbulence, confidence is returning to North Africa. The biggest uncertainty in countries such as Egypt and Tunisia mostly has washed away, and the number of rooms in the pipeline have increased from around 20,000 to more than 23,000. Sub-Saharan Africa also shows a healthy increase. The 48,980 planned rooms for this year means an increase of more than 4,000 from the previous year. Though Egypt has a lot of rooms relative to the number of hotels, Nigeria leads the way in the number of rooms and hotels. You can book the largest rooms in Cape Verde and generally should find the tiniest rooms in Angola. Even if Nigeria has the most hotels and rooms under development, the most rooms that are actually under constructions are in Egypt with almost 75% of the total amount. Construction work is also well underway in Kenya (89%) and Tunisia (83%).

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