W Hospitality Hotel Report: Egypt & Big 5 Chains Dominates African Hotel Development

W Hospitality Hotel Report



Collaborating with the Africa Hospitality Investment Forum (AHIF), W Hospitality unveils its annual report on hotel activity in Africa, highlighting robust growth in both North and sub-Saharan regions. This report gathers insights from 47 global and African hotel chains. It includes approximately 92,000 rooms across 524 hotels of 41 chains in 54 African countries.

W Hospitality Hotel Report Highlights

Here are the highlights of this report:

The Big 5 Chain Dominance

According to W Hospitality Hotel report, “The Big 5” chains – Accor, Hilton, IHG Hotels & Resorts, Marriott International, and Radisson Hotel Group – assert their dominance. They are representing 66% of hotels and 71% of rooms across the continent. This trend underscores a notable concentration within the industry.


Egypt’s Continued Dominance

Egypt maintains its position at the forefront of hotel development in Africa, boasting nearly 26,250 rooms spread across 109 hotels. Surpassing the combined efforts of the following four countries, Egypt’s robust pipeline underscores its enduring appeal as a hospitality destination. Nigeria follows with 7,622 rooms in 50 hotels, while Morocco boasts 7,169 rooms in 52 hotels. Ethiopia secures fourth place with 5,128 rooms across 31 hotels.


Rise in Resort Projects

According to this report by W Hospitality, A marked surge in resort projects emerges, constituting 30% of the total pipeline, signaling a shift in preferences among developers and travelers alike. Locations such as Zanzibar and Sharm El Sheikh showcase promising growth trajectories, cementing their status as burgeoning resort destinations. In Zanzibar, the resort pipeline expanded from seven resorts boasting 983 rooms in 2023 to 14 resorts with 2,048 rooms in 2024. About half of the total rooms in opened last year were in resorts, with Boa Vista (Cape Verde) and Sharm El Sheikh (Egypt) particularly noteworthy for their large resort sizes. The largest hotel in the pipeline is a Rixos resort planned for Sharm El Sheikh, showcasing over 1,800 rooms.

Marriott vs. Accor

Looking back, there was a close competition between Accor and Marriott International. But for the second consecutive year, Accor’s pipeline has shrunk, from 20,250 rooms in 2022 to 13,375 rooms presently. This also emphasizes the challenge of distinguishing between proposed, under-construction, and completed projects, with some projects lingering in the pipeline for over a decade, posing a tracking challenge for hotel development in Africa.

On the construction front, Marriott International leads with 138 hotels (15,011 rooms) underway, followed by Hilton (72 hotels, 5,955 rooms), Radisson Hotel Group (35 hotels, 5,748 rooms), and Accor (70 hotels, 3,346 rooms). Additionally, TUI Hotels & Resorts enters the fray in fifth place with 12 hotels (2,208 rooms) in progress, reflecting a dynamic landscape in African hospitality development.

Slow Actualization Offset by Strong 2024

The W hospitality hotel report reveals that Despite a sluggish pace in 2023, projections for 2024 paint a different picture, with the top chains gearing up to open 139 hotels, reflecting a resurgence in development activity and renewed investor confidence in Africa’s hospitality sector.