African hotel pipeline growth accelerates

The number of planned new hotel rooms in Africa has increased by 16 per cent on 2012, research by W Hospitality Group has revealed.

W Hospitality Group, members of Hotel Partners Africa (HPA), has released the figures based upon a sample of 29 international hotel chains.

In north Africa the development pipeline grew by nine per cent, from 17,217 planned new hotel rooms in 2012 to 18,782 rooms in 77 hotels in 2013. In sub-Saharan Africa, the chains’ pipeline stands at 21,052 in 130 hotels, rising from 17,109 in 100 hotels one year ago, an overall increase of 23 per cent.

W Hospitality Group MD Trevor Ward said: “The main reasons for the slower growth in north Africa include the opening of hotels in the 2012 pipeline, particularly in Algeria, a reduced investment focus on north Africa due to political concerns and a greater emphasis on development in sub-Saharan markets.

“There is a boom in Africa, in all sectors, including hotels. Economic growth in many countries is six per cent or higher and global investors are looking at the continent in a much more serious and sophisticated way. We are being contacted by an increasing number of dedicated investment funds seeking to enter the African hotel market.”

Led by Egypt, the five countries that make up north Africa all appear on the list of the top 10 countries for new hotels. In sub-Saharan Africa, with 7,740 planned new rooms, Nigeria has the largest pipeline.

Ward continued: “The major international brands are still blazing the trail, led by Hilton Worldwide, forging ahead with 6,230 planned new rooms for Hilton, Doubletree and Garden Inn brands, an extraordinary 84 per cent increase on 2012. And it is extremely encouraging to see new brands entering the market, including Campanile, Dusit, easyHotel, Fairmont, Hyatt Place and W. This shows the confidence of the hotel chains not just in the continent conceptually, but also as somewhere where they can diversify their brand footprint.”