Egypt leads Africa in hotel investments with 109 projects

A survey by W Hospitality Group reports hotel pipeline activity for 134 brands in Africa, covering all 54 countries. The report provides data on hotel projects at various stages, including planning, construction, and pre-opening.

Hotel chains have signed deals in 41 African countries, with West Africa leading, showing activity in 14 of 18 countries. The Southern and Indian Ocean sub-region follows with 11 countries. Libya and Sudan exited the pipeline due to project cancellations, while The Gambia was added. Local chains are expanding as tourism and infrastructure improvements drive demand for new hotel developments.

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According to W Hospitality Group, here are 10 African countries with the largest investments in hotel projects

Egypt emerged as the leading African country in hotel investments, with 109 projects under development. These hotels will add 26,241 rooms to the country’s hospitality sector, making it the largest recipient of hotel investments on the continent.

Nigeria ranks second with 50 hotel projects, contributing 7,622 new rooms. The country’s hospitality sector continues to grow, with increasing demand for accommodation in key cities. Morocco follows with 52 hotels under development, adding 7,169 rooms to its tourism industry.

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Ethiopia ranks fourth with 31 projects, bringing in 5,128 new rooms. The country’s strategic location and growing business sector contribute to its hotel investment appeal. Cape Verde, with 16 projects, has 5,056 rooms under development. Despite having fewer hotels, the average size of its hotel projects is the highest among the top ten, with each project averaging 316 rooms.

Tunisia and Algeria also feature on the list, highlighting North Africa’s significant investment in hospitality. Tunisia has 18 hotel projects, adding 4,121 rooms, while Algeria has 13 projects with 2,603 rooms under development. Both countries aim to enhance their tourism sectors through new hotel infrastructure.

Kenya and South Africa remain key players in Sub-Saharan Africa. Kenya has 31 projects, contributing 4,268 new rooms, while South Africa has 22 projects, adding 3,427 rooms. These developments support the growing demand for accommodation in major cities and tourist destinations.

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Ghana completes the top ten list with 19 hotel projects, adding 2,568 rooms. The country’s hospitality sector continues to attract investment, driven by economic growth and increasing tourism.

Total investments across Africa

In total, the ten leading countries have 361 hotel projects, introducing 68,203 new rooms to the continent’s hospitality industry. The average size of these projects is 189 rooms per hotel. These investments reflect the growing demand for accommodation in Africa and the increasing confidence of investors in the region’s tourism and business travel sectors.