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Construction Of New Hotels In Africa Unfazed By Commodities Slump

Construction Of New Hotels In Africa Unfazed By Commodities Slump

Africa’s leading economies are enjoying a surge in the construction of new hotels despite a slowdown in growth due to a global commodity prices slump, an annual survey by W Hospitality Group Hotel Chain Development showed.

According to the report, Angola, Nigeria, Egypt and Kenya have seen their hospitality industries pick up as the hotel construction boom reached the highest since a 2009 peak.

It estimated that in 2016, about 64,000 rooms are planned for construction in 365 hotels across Africa.

“For business, trade and capital investment, Africa remains as an attractive proposition which continues to lead demand for accommodation and other hospitality services,” Matthew Weihs, the Managing Director for Bench Events, a conference organizer was quoted by Construction Review Online as saying.

In 2015, hotel construction in Sub-Saharan Africa jumped by 42.1 percent, while growth in North Africa remained subdued as the region continued to recover from political turmoil in 2011 during the Arab Spring.

Africa’s leading oil producers, Nigeria and Angola make up 30 percent of the construction explosion, with the former leading in the number of hotels under construction. There are 17,782 rooms between the two nations.

Some of the global hospitality giants that are expanding in Africa include Carlson Rezidor Hotel Group, AccorHotels of France, Marriott Hotels and Resorts of America, Starwood Hotels and Resorts Worldwide Inc. of America and Hilton Hotels and Resorts.


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According to Sunday Times, Carlson Rezidor is leading the race with presence in 28 countries. It currently has a total of 66 hotels on the continent after it constructed 32 new hotels in recent years.

AccorHotels, the fourth largest hotelier in the world is in the process of opening 50 hotels in Angola by 2017 in a deal that was signed with AAA Activos LDA, an insurance company in July 2015.

Tsogo Sun, the biggest hotel group in Africa’s second biggest economy, South Africa, already has hotels in Kenya, Tanzania, Zambia, Nigeria and Mozambique.

City Lodge Group of South Africa has started construction of new 147-room hotel in Dar es Salaam at a cost of $20 million. In June 2016, it started construction a similar facility in Windhoek, Namibia. Construction of the hotel’s 169-room facility in Nairobi, Kenya is nearing completion.

Other local hotel chains expanding across the continent are Sun International and Protea Hotels that have presence in six and eight African countries respectively.

Despite the hotel growth boom in the last seven years, lack of financial support has seen nearly 30 percent of the hotel construction deals signed between 2009 and 2013 stagnate.