In this article we will take a detailed look 15 African countries with the highest investment in the hotel business with information on signed deals at the beginning of 2023 from 45 regional (African) and international hotel chains. To see the top 5 countries on this list, click 5 African countries with the highest investment in the hotel business.
Over the past two decades, Africa has experienced rapid growth tourism industry growth, attracting international and regional hotel chains. South Africa, one of Africa’s top tourist destinations, is growing hotel industry which caters to business and leisure travellers. The South African hospitality industry is valued $1.30 billion in 2023, with a forecast CAGR of 4.43% over 2023-2028. In April 2022, 1,696,851 passengers passed through South African ports of entry/exit.
This growth can be attributed to several factors, including the country’s diverse natural attractions such as the Kruger National Park, the Cape Winelands and the Garden Route; well-developed infrastructure; and its relatively affordable prices.
In addition, hotel chains signed up 447 transactions and added 80,291 rooms to them hotel development pipeline in Africa in 2021, almost the same as in 2019. North Africa saw the largest growth on the continent, with Egypt emerging as the country with the highest number of rooms and hotels, three times more than Morocco and almost four times more than Nigeria. This growth is partly due to the Egyptian government’s initiatives to promote tourism.
As a result, the Egyptian government launched several initiatives to attract more visitors, incl investing in infrastructuredeveloping new tourism products and promoting Egypt as a safe and attractive destination.
A look at the African hospitality industry
Marriott International Inc (NASDAQ:MAR) is one of the largest and most successful hotel companies in the world. It has a significant presence in Africa, with over 130 hotels in 20 countries. Marriott International Inc (NASDAQ:MAR) is poised to expand its portfolio of African luxury hotels, with five expected openings by the end of 2024. The company is expected to introduce The Ritz-Carlton and St. Regis in Morocco with the anticipated openings of The Ritz-Carlton, Rabat Dar Es Salam and The St. Regis La Bahia Blanca Resort, Tamuda. JW Marriott is also expected to enter Kenya with the opening of JW Marriott Hotel Nairobi and JW Marriott Masai Mara Lodge, marking the company’s first property in the luxury safari space.
This expansion signifies Marriott International Inc’s (NASDAQ:MAR) commitment to the African tourism market. The company sees Africa as a region with significant growth potential and is investing in developing its luxury portfolio to meet the needs of discerning travelers.
Another big name in the hotel industry in Africa is Wyndham Hotels & Resorts Inc. (NYSE:WH). It is one of the largest hospitality companies in Africa, with strong financial results from revenues growing at a compound annual growth rate (CAGR) of 8.8% in the last five years.
There are on the continent 5 hotels and 819 rooms of Wyndham Hotels & Resorts Inc. (NYSE:WH) operated through franchise agreements under the Ramada and Hawthorn Suites by Wyndham® brands in Ghana, Morocco, Nigeria and Tunisia. Wyndham Hotels & Resorts Inc. (NYSE:WH) has 6 properties in Africa: 2 in Kenya, 2 in Tanzania, 1 in Nigeria and 1 in Ethiopia. Once these hotels are open, Wyndham Hotels & Resorts will have almost 2,000 rooms across 3 brands and 7 African countries.
Accor SA (EPA:AC) is a leading hotel operator in Africa, with 152 hotels in 20 countries. Accor SA (EPA:AC) hotels range from budget chains to luxury resorts. Accor SA (EPA:AC) is well positioned to take advantage of Africa’s growing tourism industry. Accor’s revenue in Africa has grown steadily in recent years. In 2022, Accor SA (EPA:AC) generated 4,224 million euros in revenue from its worldwide operations. This represents an 80% like-for-like (LFL) increase over FY2021.
To create a list of the 15 African countries with the highest investment in the hospitality business, we took data from W Hospitality Group. This source has published 2023 Hotel Chain Development in Africa with information on deals signed in early 2023 by 45 regional (African) and international hotel chains, including North Africa, Sub-Saharan Africa and the Indian Ocean Islands. It provides valuable information on the latest trends and developments in the African hotel market and the key players and projects shaping the future of the industry. This report only includes hotel chains that operate or plan to expand in more than one African country (for African-based chains) or more than one country globally (for international chains). Local hotel chains operating in only one African country are excluded.
Hotel Chain Development Plans 2023 assesses the status of each hotel project in Africa, distinguishing between those in the pre-planning stage and those under construction. The term “under construction” indicates that work has begun on site, but some projects have been suspended for some time and their completion is uncertain. However, these projects are included in the analysis because they remain deals recorded in the hotel chains’ development plans.
Our list lists the cities in ascending order of Total Pipeline Hotel Rooms in each country.
Democratic Republic of the Congo
Total hotel rooms in Pipeline: 1,605
The Democratic Republic of the Congo has a variety of hotels and resorts for all budgets. The capital city of Kinshasa has several luxury hotels, such as the Pullman Kinshasa Grand Hotel and the Fleuve Congo Hotel by Blazon Hotels. There are also several mid-range and budget hotels in Kinshasa. The DRC government is committed to the development of the tourism industry. In 2022, the government launched a new tourism strategy to attract 1 million tourists annually by 2025.
Total hotel rooms in Pipeline: 1,725
According to the Ministry of Tourism, the tourism and hospitality sector has approximately 667,600 employees, with 90% employed in the hospitality sector; the sector contributes about 6.7% of total national employment.
Total hotel rooms in Pipeline: 2,132
Tunisia’s tourism industry is poised for a strong recovery, supplying much-needed foreign currency to the crisis-hit economy. Tourism generally accounts for approx 7% of Tunisia’s gross domestic product, but visitor numbers collapsed during the COVID pandemic, putting further strain on an already struggling economy.
Total hotel rooms in Pipeline: 2,181
Ghana is one of the most visited tourist destinations in English-speaking West Africa. The country is home to many tourist attractions, especially for those interested in the nature and history of the slave trade era in West Africa.
Total hotel rooms in Pipeline: 2,407
Cameroon’s hospitality and tourism industry has grown significantly since the 1970s thanks to government support and investment by airlines, hotels and travel agencies. The country is a popular tourist destination for its diverse culture, stunning natural beauty and rich history. Most visitors come from France, the United Kingdom and Canada, and business travelers make up a large segment of the tourism market.
Total hotel rooms in Pipeline: 2,445
Côte d’Ivoire aims to establish tourism as the third pillar of its economy with the aim of attracting 5 million foreign tourists annually and creating 700,000 jobs until 2025
Total hotel rooms at Pipeline: 2,650
As the potential for tourism investment in Francophone Africa becomes increasingly apparent, Senegal is emerging as a promising destination for development.
Total hotel rooms in Pipeline: 2,768
South Africa is a complex and challenging market for international hotel chains, but it also offers significant opportunities.
Total hotel rooms in Pipeline: 2,862
For many years, Algeria’s hotel market was dominated by a few state-owned hotels, and international chains were limited to a handful of establishments, even in the capital.
Total hotel rooms in Pipeline: 3,660
Travel and tourism are vital pillars of the Cape Verdean economy, providing employment opportunities for a significant portion of the workforce. In 2020, the industry reported 33.4 percent of total employment, directly supporting 68,000 jobs. Although the COVID-19 pandemic reduced the number of jobs in the sector by about 34 percent compared to 2019, tourism remains a major driver of economic growth and development in Cape Verde. The industry is expected to rebound strongly in the post-pandemic era, creating even more employment opportunities for the country’s citizens.
Click to continue reading and viewing on 5 African countries with the highest investment in the hotel business.
Disclosure. None.15 African countries with the highest investment in the hotel business was originally published on Insider Monkey.