Egypt and Nigeria Lead the Way in African Hotel Investment
SUMMARY – EGYPT AND NIGERIA LEAD IN AFRICAN HOTEL INVESTMENTS, DESPITE ECONOMIC CHALLENGES. THE W-HOSPITALITY GROUP REPORT SHOWS EGYPT DOMINATING WITH 30% OF THE TOTAL PIPELINE, ACCOMPANIED BY OPTIMISM FOR AFRICA’S HOTEL INDUSTRY.
In a recent survey, Egypt and Nigeria emerged as the top two African countries with the highest number of new hotel investments. The ‘2023 Hotel Chain Development Pipeline Africa’ report by the W-Hospitality Group highlights this trend. They gathered data from 45 hotel chains, both international and regional, revealing their signed deals in Africa.
The W-Hospitality Group, known for providing advisory services to the hospitality and tourism industries, compiled data from 54 African countries, including Indian Ocean islands. This comprehensive data analysis led to some intriguing findings.
Egypt Takes the Lead
Egypt has secured the top spot in the ranking with the most hotel rooms under development. The report showcases Egypt’s impressive numbers: nearly 25,000 rooms across 103 hotels. This figure significantly surpasses Nigeria, which comes in second place with 6,772 rooms distributed among 42 hotels.
Despite facing significant economic challenges, both Egypt and Nigeria have experienced substantial deal signing activity. The W-Hospitality Group noted this paradox in its 15th annual report.
Egypt’s lead in hotel development is noteworthy, with ongoing signing activity adding to its pipeline. Egypt now accounts for 30% of the total pipeline, a remarkable feat for a single country. This continued growth is attributed to various hotel chains, including Accor, Marriott International, IHG, and Hilton.
Egypt’s dominance is followed by Morocco in third place, with Ethiopia and Kenya in fourth and fifth positions, respectively. South Africa also ranks eighth on the list, showcasing the diversity of hotel investment across the continent.
Key Players in Egypt’s Signing Spree
Leading the signing spree in Egypt are prominent hotel chains such as Accor, Marriott International, IHG, and Hilton. While others like Four Seasons, Radisson Hotel Group, TUI BLUE, and TIME are also part of the list, they have fewer hotel rooms in development.
The report concludes on an optimistic note, highlighting the numerous opportunities that still exist for hotel chains and owners in Africa. Despite macro-level economic challenges, the micro-level data reveals a promising future for the continent’s hotel industry.
