W Hospitality Group has released the findings of its 11th annual survey of the pipeline of branded hotels in African markets. The survey looks at foreign and African hotel brands with operations in more than one country, and the deals they have signed for new hotels.
Marriott topped the list in terms of the number of hotels planned, with 81 hotels and almost 17,000 rooms. Accor (now the largest hotel group in the world outside of the United States) lists 57 hotels planned in 25 African countries. Hilton comes a close third, with 55 hotels planned.
As in years before, the majority of new hotel development is happening in Sub-Saharan Africa. A further comparison of the regions shows North Africa with 39% of the pipeline, West Africa with 29% and East Africa with 18%. Southern Africa contributes 12% to the pipeline and the Central African region contributes only 2%.
Egypt tops the list, in terms of countries, and continues to generate investor interest for large projects, almost doubling the number of rooms of number two on the list, Nigeria. Nigeria topped the list in previous years but lost a few projects that either opened or were deemed impossible to develop.
In total, there are 401 hotels (and over 75,000 rooms) scheduled to open between 2019 and 2030. However, when and if these hotels actually open are another matter. Construction delays, funding bottlenecks, and so on are development challenges that hotel projects in African markets frequently face. In fact this year, there was a 1.5% dip in the pipeline because 74 hotels (over 12,000 rooms) were removed due to openings and also because many were no longer deemed possible.
The good news is that this year’s pipeline is still more than 12% ahead of 2017. And the pace of new deals being signed continues to accelerate – 110 deals were signed in 2018 and early 2019.
The full report can be downloaded from W Hospitality Group.