There are almost 50,000 hotel rooms at 270 hotels in the pipeline for development in Africa, but those numbers are deceptive.
Some of the projects were announced years ago, but may never actually materialize, says Wayne Troughton, CEO of Hospitality and Tourism International Consulting (HTI).
We’ve taken a look at hotels and hotel rooms actually under construction in Africa, thanks to Lagos-based W Hospitality Group’s 2015 survey.
W Hospitality Group provides advisory services to the hotel, tourism and leisure industries, including clients who have investments in the sector. Its Hotel Chain Development Pipelines in Africa survey is now in its seventh year. For this year’s survey, 80 hotel brands contributed.
The 33 hotel chains that contributed to the survey reported 270 hotels and almost 50,000 rooms in their combined pipeline in Africa.
Sub-Saharan Africa hotel rooms in the pipeline exceed North Africa’s by almost 70 percent compared to two years ago when the two regions were neck-and-neck. Growth in the North African pipeline has slowed due to political unrest, although North Africa’s hotel rooms under construction are still impressive.
North African countries have what’s considered mature hotel pipelines, with more than 50 percent of rooms under construction. But deals coming online soon are not being replaced by new ones, according to W. This means there will be fewer new openings in the future.
Here’s how the hotel pipeline breaks down regionally in sub-Saharan Africa: West Africa: 53 percent, East Africa, 24 percent, Central Africa, 12 percent, and Southern Africa 11 percent.
There are increasing hotel investment conferences on the continent, where many of the sub-Saharan markets have historically been underserved, according to W Hospitality Group. Branded hotels are now catching up. Mauritania, for example, had no existing name-brand hotels and now has three in the development pipeline.
A record 79 hotel deals were signed in 2014, according to W. What is concerning is the number of deals that are still on the books after several years.
Nigeria has by far the most rooms in the responding hotel chains’ development pipelines, with 8,500-plus rooms in 51 planned
new hotels. That’s more than the entire pipeline in East and Central Africa combined. But it’s not No. 1 on our list.
We’ve taken a look at Africa’s booming hotel pipeline — the part that’s actually coming out of the ground. Here are the top 10 countries in Africa for hotels under construction.
Marriott under construction in Kigali, Rwanda. Photo: thehabarinetwork.com
10. Rwanda
Rwanda has seven hotels and 1,351 hotel rooms in the pipeline, with 953 of those rooms under construction. This meants 71 percent of Rwanda’s hotel room pipeline is actually under construction.
Hotel under construction in Nairobi. Photo: nomad.sleepout.com
9. Kenya
Kenya has eight hotels and 1,510 hotel rooms in the pipeline, with 1,050 of those rooms under construction. This means 70 percent of Kenya’s hotel-room pipeline is actually under construction.
Five-star hotel under construction in Melelle City, Ethiopia. Photo: tripwow.tripadvisor.com
8. Ethiopia
Ethiopia has eight hotels and 1,326 hotel rooms in the pipeline, with 1,117 of those rooms under construction. This means 84 percent of Ethiopia’s hotel-room pipeline is actually under construction.
Zho Benghazi Tower under construction in Libya.Photo: saudigazette
7. Libya
Libya has five hotels and 1,458 hotel rooms in the pipeline, with 1,158 of those rooms under construction. This means 79 percent of Libya’s hotel-room pipeline is actually under construction.
Sandton City with Sandton Sun hotel, right, and the Michaelangelo tower, center left, Africa’s largest commercial hub. Photographer: Dean Hutton/Getty
6. South Africa
South Africa has 13 hotels and 1,662 hotel rooms in the pipeline, with 1,196 of those rooms under construction. This means 72 percent of South Africa’s hotel-room pipeline is actually under construction.
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5. Tunisia
Tunisia has 12 hotels and 2,444 hotel rooms in the pipeline, with 1,501 of those rooms under construction. This means 61 percent of Tunisia’s hotel-room pipeline is actually under construction.
Ibis hotel in Algeriers. Photo: comete-group.com
4. Algeria
Algeria has 13 hotels and 2,749 hotel rooms in the pipeline, with 2,494 of those rooms under construction. This means 91 percent of Algeria’s hotel-room pipeline is actually under construction.
Four Points by Sheraton under construction in Ikot Ekpene, a historic town in Southern Nigeria. Photo: panoramio.com
3. Nigeria
Nigeria has 51 hotels and 8,563 hotel rooms in the pipeline, with 3,369 of those rooms under construction. This means 39 percent of Nigeria’s hotel-room pipeline is actually under construction.
Hotel under construction, Morocco. Photo: montaguefox.com
2. Morocco
Morocco has 31 hotels and 5,474 hotel rooms in the pipeline, with 3,795 of those rooms under construction. This means 69 percent of Morocco’s hotel-room pipeline is actually under construction.
A boat passes buildings under construction in Cairo, 2013. Photo: Asmaa Waguih/Reuters.
1. Egypt
Egypt has 18 hotels and 6,440 hotel rooms in the pipeline, with 5,480 of those rooms under construction. This means 85 percent of Egypt’s hotel-room pipeline is actually under construction, making it the highest performing pipeline in Africa. Egypt saw a substantial 37 percent increase in its pipeline in 2014, indicating returning confidence.
