Marriott and Egypt Lead Hotel Development in Africa
Egypt and Marriott are leading the way in hotel development in Africa, according to the latest report by the W Hospitality Group and the Africa Hospitality Investment Forum. The report shows that almost 25,000 rooms in 103 hotels are in development in Egypt, while Marriott has the largest African development pipeline. Over 45% of the total pipeline is expected to open in 2023 and 2024, with the survey seen as encouraging for investment opportunities in the African hospitality industry.
According to the latest African Hotel Chain Development Pipeline report by the Lagos-based W Hospitality Group and the Africa Hospitality Investment Forum (AHIF), Egypt and Marriott are the key players to watch in hotel development across Africa. The report is considered the industry’s most authoritative source, documenting and analyzing the number of hotels being planned and built across the continent. The survey is based on responses from 45 global and regional hotel chains reporting on a pipeline of hotel development activity totaling around 84,400 rooms in 482 hotels, in 42 of Africa’s 54 countries.
Egypt leads the country table with almost 25,000 rooms in 103 hotels, while Marriott is the world’s largest hotel chain, with the largest number of rooms and the largest African development pipeline. Radisson has been opening hotels at a faster pace than any other operator, while Hilton is in second place for onsite rooms, after Marriott International.
Despite its clear leadership in the absolute pipeline numbers, Egypt has the lowest percentage of rooms on site due to its relatively young pipeline. The survey also revealed that over 37,500 rooms, or about 45% of the total pipeline, are expected by hotel chains to open in 2023 and 2024.
Trevor Ward, Managing Director of W Hospitality Group, attributes Egypt’s strong hotel development to several factors, including the low value of the Egyptian pound, its unparalleled tourism assets, its proximity to major source markets, and good infrastructure. Marriott’s robust performance in Africa can be attributed to the rising trend of franchising in the region, in which the company holds a relative advantage with 30 brands in its portfolio.
Matthew Weihs, Managing Director of The Bench, which organizes AHIF, believes that the high expectations for 2023 and 2024 openings bode very well for AHIF. The conference is likely to encourage participants to seek new deals and further investment opportunities.
