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Africa’s Hotel Development Jumps 13% in 2025 (report)

Africa’s Hotel Development Jumps 13% in 2025 (report)
Wednesday, 16 April 2025 10:17

• Africa had 577 hotels under development in early 2025, up 13.3% from the same period last year.
• North Africa drove most of the growth, with a 23% YOY in hotel projects.
• Egypt remains the top destination, accounting for nearly a third of all rooms in development across the continent.

Africa is seeing strong momentum in hotel construction, with 577 hotels and a total of 104,444 rooms under development in Q1 2025. This marks a 13.3% increase from a year earlier, according to a new report by consulting firm W Hospitality Group.

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The report, titled Hotel Chain Development Pipelines in Africa 2025, tracks hotels that are either being built or have signed binding agreements with international or pan-African hotel chains. Compared to global figures, Africa’s hotel development growth is significantly higher, with most of the surge coming from North Africa.

The region posted a 23% year-on-year jump, with 230 hotels and 49,260 rooms currently under development. Growth was also recorded in Sub-Saharan Africa, but at a slower pace of 6%, totaling 347 hotels and 55,184 rooms.

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In total, hotel projects were recorded in 42 countries across the continent—4 in North Africa and 38 in Sub-Saharan Africa. However, no hotel developments were reported in 12 other countries, including Libya, Mali, Burundi, Sudan, and the Central African Republic.

Egypt remains the top destination for hotel chains, with 143 projects (33,926 rooms). That figure represents 32.5% of all rooms being built across Africa. Morocco came in second with 8,579 rooms, followed by Nigeria (7,320), Ethiopia (5,648), Cape Verde (5,565), Kenya (4,344), Tunisia (4,336), South Africa (4,076), Tanzania (3,432), and Ghana (3,125).

Together, these ten countries account for nearly 73% of all hotel projects and 77% of total rooms under development in Africa.

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The report cites a number of advantages to explain Egypt’s strong performance. These include its large territory, diverse tourism offerings, strong economy, proximity to major tourist markets in Europe and the Middle East, high air traffic, and local financing options for hotel construction.

The rise in hotel development is largely being driven by major global hotel groups. U.S.-based Marriott International had the biggest pipeline in Africa at the start of 2025, with 165 hotels and 29,639 rooms. Hilton followed with 93 hotels and 17,040 rooms.

Other major players include Accor (73 hotels, 15,013 rooms), IHG Hotels & Resorts (40 hotels, 7,951 rooms), and Radisson Hotel Group (32 hotels, 6,346 rooms).

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Combined, these five chains represent 72.8% of all hotel projects on the continent.

When it comes to openings scheduled for 2025, Marriott leads again with 61 hotels expected to open. IHG ranks second with 13 openings, followed by Accor and TUI Hotels & Resorts with seven each.

The report also shows that most of the development is focused on upscale segments. Of the 577 active hotel projects, 191 are in the upscale category, 178 in upper-upscale, and 96 in luxury.

Another key takeaway is the sharp rise in the “realization rate”—the percentage of planned projects that actually move into construction. That rate rose from 21% in 2023 to 38% in 2024. While still below the pre-COVID level of 75%, it signals a strong recovery in Africa’s tourism sector.

 
 
 
 
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