Africa is witnessing a renaissance in its hospitality sector with a wave of hotel construction across the continent. Travel and Tour World reports that this year alone, 577 hotels and resorts are under development, signalling the unprecedented growth of the continent’s hospitality sector and a golden age for African tourism.
According to Travel News Africa, the rise in Africa’s development represents a 13.3% year-on-year increase. North Africa leads Africa’s hotel boom, with a 23% annual growth in hotel projects compared to 6% in sub-Saharan Africa, according to CNBC Africa. Egypt is a major player in Africa’s hotel boom, boasting 143 hotels and 33,926 rooms, usurping other key markets like Morocco, Nigeria, Ethiopia, and South Africa.
Cairo has emerged as the centre of Africa’s hotel development, with over 70 hotels and 17,757 rooms planned. It leads other key cities like Lagos, Addis Ababa, and Casablanca, which are also experiencing significant and steady growth.
The transformation of Africa’s hospitality sphere can be attributed to the shift towards resort development. Resort projects are now significantly outpacing urban developments, reflecting a growing global trend towards leisure travel. Travel News Africa reports an average size of 210 keys compared to 170 for city hotels, and nearly half of last year’s openings in resort locations. Also, the rise of franchising is another key trend reshaping the African hotel industry. According to Travel and Tour World, nearly 19% of new projects are adopting the franchise model, a significant jump from less than 10% three years ago.
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Major international hotel brands are driving the actualisation rate of Africa’s hotel projects, nearly doubling from 21% in 2023 to 38% in 2024. Marriott International leads the pack with 165 hotels and 29,639 rooms under development, and Hilton and Accor catch up impressively.
Several key factors drive Africa’s hotel boom, chief amongst them being the rising middle class and domestic tourism. Africa’s expanding middle class is increasing demand for quality accommodations, boosting domestic tourism significantly. More international visitors are also exploring Africa’s rich cultural heritage, natural beauty, and emerging markets, encouraging hotel development. Also, the GDP growth in many African countries continues to support investment in hotel infrastructure, especially in business hubs.
Again, rapid urbanisation and the growth of major cities as business and conference hubs are creating demand for hotels, particularly in the upscale and business segments, as Cities like Cairo, Lagos, Addis Ababa, and Casablanca continue to see significant hotel development to cater to this demand.
Given that African countries are increasingly investing in promoting themselves as tourist destinations, highlighting their unique attractions and cultural offerings, there is also a growing trend towards developing hotels and resorts that offer authentic and sustainable experiences, catering to the evolving preferences of global travellers.
Africa’s hotel boom is set to benefit its tourism sector significantly. For one, the surge in hotel development, with North Africa experiencing a 23% increase and sub-Saharan Africa a 6% rise in hotel projects, is expanding the continent’s ability to host more tourists. This growth includes increased branded and high-quality hotels in key destinations such as Zanzibar, Lagos, Serengeti, Mara, Cape Town, Victoria Falls, and coastal safari regions.
With increased focus on sustainability, many new hotel developments emphasise environmentally responsible practices and cultural sensitivity. This approach helps preserve Africa’s natural and cultural assets, ensuring the long-term viability of tourism. Sustainable tourism also encourages inclusive growth by involving local communities and equitably sharing economic benefits.
Hotel growth also often coincides with improvements in infrastructure such as transport, safety, and visa facilitation, making travel easier and more attractive. Enhanced service delivery and modern amenities raise the standard of tourism experiences, encouraging longer stays and higher visitor spending.
FAQ
1. Why is Africa experiencing a hotel boom now?
A combination of factors drives Africa’s hotel boom: a rapidly growing middle class, increasing international and domestic tourism, improved political stability, and better infrastructure, such as airports and roads. Additionally, rising business travel linked to the continent’s rich natural resources and economic growth fuels demand for more and higher-quality hotel accommodations.
2. Which African regions are leading in hotel development?
North Africa leads the continent with a 23% increase in hotel development, driven by countries like Egypt, Morocco, and Tunisia. Sub-Saharan Africa is growing more modestly at around 6%, with key players including Ethiopia, Ghana, and Nigeria showing strong potential due to economic reforms and infrastructure improvements.
3. How are international hotel chains involved in Africa’s tourism growth?
Major global hotel chains such as Marriott International, Hilton, Accor, Radisson, and IHG are aggressively expanding their African presence. They account for over two-thirds of hotels and rooms currently in development, focusing heavily on luxury and high-end properties to cater to the growing demand from business travellers and affluent tourists.
4. What impact does the hotel boom have on Africa’s economy?
The hotel boom creates significant economic benefits, including job creation, increased foreign investment, and growth in the tourism sector. It supports local economies by attracting more tourists and business travellers, stimulating related industries such as transportation, retail, and cultural experiences.
5. What is the future outlook for tourism and hotels in Africa?
Tourism arrivals in Africa are expected to more than double to around 134 million by 2030. This will drive continued hotel development, especially branded and luxury hotels, as the continent becomes a premier destination for leisure and business travel. The expansion is set to reshape Africa’s hospitality landscape, making it a global hotspot for diverse travel experiences.
