Africa Welcomes Surge in Global Hotel Investments

Global hotel chains are spearheading impressive growth in Africa’s hospitality sector. By late 2023, companies planned 524 new hotels with over 92,000 rooms across 41 African countries.

American giants like Marriott, Hilton, and Radisson, along with France’s Accor and the UK’s IHG Hotels, are at the forefront of this expansion.

These five giants account for two-thirds of all new hotel projects on the continent.

Notably, resort developments, especially in places like Zanzibar, are on the rise, reflecting a growing trend towards leisure destinations.

Egypt, Nigeria, Morocco, Ethiopia, and Cape Verde lead in attracting attention, with projects like Egypt’s 1,800-room Rixos resort.

The hotel industry is a vital part of Africa’s growing travel and tourism sector, which is expected to expand by 6.5% annually over the next decade.

In addition, this growth could add $350 billion to Africa’s GDP, demonstrating the significant economic impact of hospitality development.

Despite the enthusiasm, challenges remain, including conflict, high construction costs, and access to capital.

These factors can delay the opening of new hotels, with an average opening time of up to five years after a deal is signed.

In 2023, the opening numbers in key markets like Morocco, Egypt, Ethiopia, and Nigeria reflected these challenges.

However, the outlook remains positive, with 134 new hotels and resorts expected to open in Africa this year.

Marriott is leading the pack with 23 new properties, followed by Radisson, Hilton, and Accor.

BWH Hotels is also making a significant move by planning to open all 14 of its new African properties within the year.