Keypoints:
- Africa’s hotel pipeline grows 13.3%
- Egypt and Morocco dominate new projects
- Resorts and franchises show sharp rise
AFRICA’S hospitality industry is experiencing unprecedented expansion, with a record 577 hotels and 104,444 rooms in the 2025 development pipeline, according to the latest Hotel Development Pipeline Report by Lagos-based W Hospitality Group.
This reflects a 13.3% year-on-year increase, far outpacing the single-digit growth seen in other global markets for major international hotel chains.
Egypt and North Africa dominate pipeline
The report reveals robust growth in North Africa, with a 23 percent increase in hotel development activity, compared to 6 percent in sub-Saharan Africa. Egypt leads by a wide margin, with 143 hotels and 33,926 rooms, nearly four times more than second-placed Morocco.
Rounding out the top 10 countries are Nigeria (7,320 rooms), Ethiopia (5,648), Cape Verde (5,565), Kenya (4,344), Tunisia (4,336), South Africa (4,076), Tanzania (3,432), and Ghana (3,125). International hotel chains now have active deals in 42 of Africa’s 54 countries.
Although Egypt tops the charts in volume, less than half of its rooms are under construction. Morocco leads in execution, with over 72 percent of its pipeline actively being built. Ethiopia and Ghana also show strong construction momentum, while Nigeria and Tanzania trail with several long
-stalled projects.
Cairo surges ahead, resorts outpace city hotels
At the city level, Cairo dominates, with 17,757 rooms across 70+ hotels. The gap between Cairo and second-placed Sharm El Sheikh (4,231 rooms) is substantial. Other top cities include Lagos (3,709), Boa Vista (3,650), Addis Ababa (3,369), and Accra (2,65
2).
Resort developments are growing faster than urban hotels, both in project numbers and scale. Resorts now average 210 rooms per project, compared to 170 for city properties. In 2024, nearly half of all new hotel openings were resorts — a shift driven by rising demand for leisure and destination travel.
Franchise model gains ground
One major trend is the rise of franchise agreements, now accounting for 19 percent of all projects, up from under 10 percent in 2020. This shift is powered by white-label operators like Aleph Hospitality and Valor Hospitality, as well as local players in countries such as Nigeria and Kenya, boosting trust in quality compliance.
This model gives international brands room to expand while benefiting from local expertise and faster market entry.
Global brands power expansion
The boom is largely driven by major international hotel chains. Marriott International leads with 165 hotels and 29,639 rooms, followed by Hilton (93 hotels, 17,040 rooms), and Accor (73 hotels, 15,013 rooms). IHG, Radisson Hotel Group, and The Ascott also play significant roles.
Notably, Barceló Hotels & Resorts more than doubled its African pipeline in 2024, thanks to several large resort signings in North Africa.
Pipeline actualisation rebounds post-Covid
Encouragingly, the actualisation rate — the percentage of projects that move from plan to completion — has risen sharply, from 21 percent in 2023 to 38 percent in 2024. Though still below the 75 percent pre-Covid benchmark, this signals a strong recovery.
More than 50,000 rooms across 304 hotels are expected to open across the continent by the end of 2026.
Outlook bright ahead of FHS Africa 2025
The full findings will be explored at FHS Africa, the continent’s top hospitality investment forum, scheduled for 17–19 June in Cape Town. Organised by the Bench, FHS Africa brings together the industry’s top investors, developers, and decision-makers.
Matthew Weihs, managing director of the Bench, said: ‘Africa’s hotel growth is a vote of confidence in the continent’s future. Global players clearly view it as a strategic opportunity.’
Trevor Ward, managing director of W Hospitality Group, added: ‘With urban growth accelerating — and 10 of the world’s 16 largest cities projected to be in Africa by 2100 — hotel development on the continent has only just begun.’
