Despite the continent’s economic problems, hotel development activity in Africa is on the rise, recording a 13% increase in 2017, according to an annual survey by W Hospitality Group.
The ninth edition of its Hotel Chain Development Pipelines in Africa has 36 international and regional contributors reporting almost 73 000 rooms in 417 hotels. The figures have grown each year, more than doubling since 2009.
By country, Egypt is in first place with the highest number of hotel rooms in the on-site construction phase.
Many African countries faced a challenging 2016, with lower prices for oil and other commodities, devalued currencies and other negative factors. That may have affected confidence in the short-term, as the number of deals signed was 86, down from 121 in 2015.
Despite the slowdown, some countries benefited from cheaper oil imports and there was increased activity in southern and east Africa. In addition, more hotel chains established development offices on the continent, to address the fact that Africa is still massively under-provided with rooms.
Growth is expected to be more muted in 2017, and financing and bureaucratic hurdles remain, but an increasing number of deals are coming to fruition on time: from only 26% opening their doors on schedule in 2014, to 47% in 2016.
