Hotel development in Africa hits record high, led by Egypt and global chains

Hotel development across Africa has reached unprecedented levels, with 577 properties and 104,444 rooms in the pipeline—a 13.3% increase year-on-year, according to the latest Hotel Development Pipeline Report by W Hospitality Group. Growth in Africa is far outpacing global trends, particularly in North Africa, which saw a 23% surge in projects compared to 6% in sub-Saharan Africa.

Egypt and Marriott at the Forefront

Egypt remains the undisputed leader, with 143 hotels and nearly 34,000 rooms under development—quadruple the count in second-ranked Morocco. Cairo alone accounts for 17,757 new rooms across more than 70 properties, dwarfing other African cities.

Global hotel giants are leading the charge:

• Marriott International: 165 hotels / 29,639 rooms
• Hilton: 93 hotels / 17,040 rooms
• Accor: 73 hotels / 15,013 rooms
• Other notable contributors include IHG, Radisson, TUI, Barceló, The Ascott, Kerten, and Wyndham.

Key Trends Shaping the Market

• Rising Resort Dominance: Resorts are outpacing city and airport hotels in both size and growth.
• Franchise Shift: 108 projects (19% of the pipeline) now follow a franchise model, nearly double 2020’s share.
• Improved Actualisation Rate: Openings vs. expectations climbed to 38% in 2024, up from 21% in 2023.

While countries like Nigeria and Ghana show slower construction progress despite large pipelines, others like Ethiopia and Morocco are seeing a higher percentage of projects actively underway.

Looking Ahead

Over 50,000 rooms across 304 hotels are expected to open in 2025 and 2026. The report will be a key discussion point at FHS Africa, taking place June 17–19 in Cape Town, where industry leaders will strategise on shaping Africa’s hospitality future.

Trevor Ward, Managing Director of W Hospitality Group, summed it up:

“With 125 new hotel deals signed last year alone, Africa’s potential remains massive. As urbanisation accelerates, especially in sub-Saharan Africa, this boom could be just the beginning.”