Nigeria remains the second spot for the greatest hotel investments in Africa despite it’s escalating economic problems.
According to The Times, this was discovered in a recent study by W-Hospitality Group, titled “Hotel Chain Development Pipeline Africa,” which examined data from 54 countries in Africa, including those in North Africa, sub-Saharan Africa, and the islands of the Indian Ocean.
It provided thorough and comparative information on hotel chain expansion initiatives in Africa, both by presently operating chains and those looking to expand there.
With 6,772 rooms across 42 hotels, Nigeria comes in second, the research claimed.
“Nigeria moved into second place this year, with 11 new deals signed in 2022, from BWH Hotel Group (two Best Western Plus-branded hotels), Marriott International (four hotels under their Marriott Hotels & Resorts, Protea, and Residence Inn brands), Wyndham (a Wyndham and a Ramada), Continent (two deals), and one by newcomer Leva.”
Furthermore, Egypt tops the list with nearly 25,000 rooms spread across 103 hotels, far outpacing Nigeria.
Egypt is significantly ahead of other nations in terms of signing activity, with 26 hotels totaling roughly 8,000 rooms in 2022.
Egypt makes up a sizeable 30% of the total pipeline, demonstrating its supremacy in the continent’s hotel construction.
The following companies have made significant contributions to Egypt’s hotel development: Accor (8 deals, 3,796 rooms), Marriott International (6 deals, 1,250 rooms), IHG (4 deals, 977 rooms), and Hilton (4 deals, 815 rooms). Additionally, one agreement was inked by each of Four Seasons, Radisson Hotel Group, TUI BLUE, and TIME.
Both Egypt and Nigeria have been active in signing hotel development projects while confronting economic difficulties, preserving their positions as top competitors.
The paper highlights agreements hotel companies have struck in 42 African countries. Following West Africa, which has pipeline development activity in 13 out of 18 nations, is the Southern & Indian Ocean subregion, which has pipeline development activity in 11 countries.
Additionally, there has been an uptick in activity in Central Africa, with transactions now covering five of the eight countries in the sub-region, including the recent additions of Gabon and Chad.
This in-depth study draws on data from 45 regional and international hotel chains, taking into account both their current operations and future ambitions for global and African expansion.
