Finance

Marriott Makes Way for Hilton as Cotonou Aims for Premium Hotel Growth

Marriott Makes Way for Hilton as Cotonou Aims for Premium Hotel Growth
Friday, 20 June 2025 08:33
  • Marriott Cotonou to rebrand as Hilton by 2028.
  • State-funded upgrade adds 233 rooms for business travel.
  • Part of €1 Billion plan to boost tourism and GDP share.

A symbolic change is underway in Cotonou. Marriott hotel, located near Palais des Congrès and major embassies, will soon be rebranded under the Hilton flag. Carlos Khneisser, Vice President of Development for the Middle East and Africa at Hilton, announced this on June 18, 2025. He reaffirmed the group’s goal to triple its presence in Africa to over 160 hotels in the coming years.

In Benin, this transition, first revealed in September 2024, signifies a pivotal moment in the government’s broader strategy to enhance its hospitality appeal. It follows the inauguration of Sofitel Cotonou Marina, the country's new luxury flagship hotel, just months earlier.

The future Hilton Cotonou will feature approximately 233 rooms, as well as apartments, a shopping center, and event spaces. Hilton Worldwide Manage Limited will operate the property under a management contract. Hilton itself will not inject any equity as the renovation is entirely state-funded through Société de Développement Hôtelier du Bénin (SDHB), a public enterprise tasked with mobilizing capital and partners for the transformation. Notably, the project initially began in 2017 with a 7.4 billion CFA Francs ($14 million) loan from the West African Development Bank (BOAD) to the Libano-Beninese group Ghaby Kodeih for its development under the Marriott brand.

Tight Supply in High-End Segment

In 2024, Cotonou had only 1,060 classified hotel rooms across all categories. The opening of the Sofitel, with 198 rooms, boosted total capacity by 23% in a single year. However, the premium market remains underdeveloped. Only two hotels are rated as high-end, and just one, Sofitel Marina, qualifies as a true luxury property.

Hilton’s arrival will help close this gap. According to consulting firm Voltere by Egis, 90% of demand in international hotels in Cotonou comes from business and MICE (Meetings, Incentives, Conferences, and Events) travelers. Leisure tourism accounts for only 10% of room nights in this segment.

Despite the limited supply, market indicators are encouraging. In 2024, Cotonou’s hotel occupancy rate reached 69%, an increase of three points, while RevPAR (revenue per available room) jumped 9.8% to 41,756 CFA francs. The government aims to add 350 premium rooms by 2030, driven by incoming international brands. Alongside Hilton, expected by 2028, Club Med is developing a beach resort in Avlékété, and Banyan Tree’s Angsana brand plans a luxury villa-and-suite resort.

These developments underscore Benin’s ambition to position Cotonou as a premium West African destination.

Regional Ambitions Beyond Hospitality

Beyond luxury hotels, the goal is to establish Cotonou as a regional diplomatic and event hub. Strategic investments in the Port of Cotonou, road and airport infrastructure, and overall political stability are designed to attract both embassies and multinational corporations.

Since 2016, over €1 billion has been invested in tourism sector upgrades. These include heritage site renovations, hotel construction, beach resorts, museums, urban infrastructure, and tour circuits. The government aims to increase tourism’s share of GDP from 6% to 13.4% by 2030, supported by a new 797 billion CFA francs investment plan for 2025–2029.

This strategy enhances the appeal of Benin’s hotel market, especially as macroeconomic conditions remain favorable. With GDP growth at 7.5% in 2024, well above the regional average, Benin continues to attract significant interest from global hospitality brands.

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