According to the latest Hotel Development Pipeline Report that utilizes data from 50 international and regional hotel brands, there are unprecedented levels of global activity, in particular a remarkable surge in development efforts in North Africa, which experienced a 23% year-on-year growth, in contrast to a 6% increase in sub-Saharan Africa. Over the last five years, the hotel development pipeline has expanded at an annualized rate of 4% in sub-Saharan Africa, 12% in North Africa, and 7% overall.
Egypt remains at the forefront of development, boasting 143 hotels and 33,926 rooms in its pipeline. This figure is nearly four times greater than that of Morocco, which ranks second with 8,579 rooms across 58 hotels. The subsequent eight countries, listed by the number of rooms, include Nigeria with 7,320; Ethiopia with 5,648; Cape Verde with 5,565; Kenya with 4,344; Tunisia with 4,336; South Africa with 4,076; Tanzania with 3,432; and Ghana with 3,125. International hotel chains have established agreements in 42 of Africa’s 54 nations.
Although Egypt leads in total pipeline numbers, it has less than 50% of its hotel rooms currently under construction, a notably lower figure compared to Morocco, which boasts over 72%. Among the top ten countries, Ethiopia exhibits the highest ratio of rooms “on site,” followed by Morocco and Ghana. Conversely, Cape Verde, Nigeria, and Tanzania show some of the lowest percentages. It is important to note that “under construction” does not always indicate active progress toward completion and opening; for instance, many sites in Nigeria and Ghana have remained inactive for several years, with little evidence of ongoing work.
A detailed examination of the locations of planned properties highlights a remarkable surge in Cairo, where 17,757 new rooms are anticipated across more than 70 hotels. In stark contrast, Sharm El Sheikh, the second-ranked location, plans only 4,231 rooms in fewer than ten properties. Other cities and resorts with significant room pipelines include Lagos with 3,709 rooms, Boa Vista with 3,650, Addis Ababa with 3,369, Casablanca with 2,939, Accra with 2,652, Abuja with 2,570, Zanzibar with 2,523, and Dakar with 2,334.
This growth is primarily fueled by major international hotel chains, with Marriott International at the forefront, operating 165 hotels with a total of 29,639 rooms. Following Marriott is Hilton, with 93 hotels and 17,040 rooms; Accor, with 73 hotels and 15,013 rooms; IHG, with 40 hotels and 7,951 rooms; Radisson Hotel Group, with 32 hotels and 6,346 rooms; TUI Hotels & Resorts, with 11 hotels and 2,954 rooms; Barceló Hotels & Resorts, with 7 hotels and 2,193 rooms; The Ascott, with 15 hotels and 1,897 rooms; Kerten Hospitality, with 13 hotels and 1,881 rooms; and Wyndham Hotels & Resorts, with 7 hotels and 1,706 rooms.
In the competition for market leadership, Hilton expanded its African room inventory slightly more than Marriott International last year, achieving a greater percentage increase. Barceló Hotels & Resorts experienced the most significant percentage growth, more than doubling its pipeline to 2,193 rooms, bolstered by three major resort agreements in North Africa.
Beneath the headline figures, three key trends emerge. Firstly, the actualization rate (the ratio of actual openings to anticipated openings) has nearly doubled, rising from 21% in 2023 to 38% in 2024. Although this figure is considerably lower than the 75% actualization rate recorded in 2019, it indicates a steady recovery from the economic impact of COVID-19. Out of the total 104,444 rooms in the pipeline, over 50,000 (almost 50%) across 304 hotels are projected to open in 2025 and 2026.
Secondly, the growth of resort projects is outpacing that of city or airport hotels, both in terms of percentage and absolute numbers. This trend is driven by an increase in signings and the larger average size of these developments, with resorts averaging 210 keys compared to 170 for city hotels. Notably, nearly half of the rooms that opened last year were located in resorts.
Lastly, there is a clear shift among hotel chains towards the franchise model, with 108 projects accounting for nearly 19% of the total, a significant increase from less than 10% in 2020. This shift is largely influenced by the rise of reputable international white-label operators such as Aleph Hospitality and Valor Hospitality, along with local operators in Nigeria, Kenya, and other regions, which are enhancing confidence in the adherence to brand standards.
In spite of the numerous challenges confronting the continent, the signing of 125 new agreements by hotel chains last year, resulting in the addition of 21,000 rooms, demonstrates that there are ample opportunities for further growth. The Global Cities Institute projects that by 2100, 10 out of the 16 largest cities globally will be located in Africa, with all but one (Cairo) situated in sub-Saharan Africa. Therefore, it can be argued that the development efforts in Africa have only just begun to tap into its potential.