Africa’s Hotel Boom

A wave of hotel construction is sweeping across Africa, creating exciting new opportunities for travel professionals. With 577 hotels and resorts currently under development, totaling a staggering 104,444 rooms, the continent’s hospitality sector is experiencing unprecedented growth, outpacing global trends and signaling a golden age for African tourism.

This surge in development, a remarkable 13.3% year-on-year increase, presents a wealth of opportunities for travel agents specializing in African destinations. North Africa is leading the charge, boasting a 23% annual growth in hotel projects compared to 6% in sub-Saharan Africa. This regional disparity highlights the dynamic nature of the African tourism market, offering diverse investment and development opportunities across the continent.

Egypt stands out as a major player in this hotel boom, with 143 hotels and 33,926 rooms in the pipeline, dwarfing other key markets like Morocco, Nigeria, Ethiopia, and South Africa. While Egypt’s dominance is undeniable, challenges remain, with fewer than half of its planned rooms currently under construction. This presents both opportunities and challenges for travel agents, requiring careful monitoring of project timelines and actualization rates to effectively market these upcoming properties.

A notable shift towards resort development is transforming the African hospitality landscape. Resort projects are now significantly outpacing urban developments, reflecting a growing global trend towards leisure travel. With an average size of 210 keys compared to 170 for city hotels, and nearly half of last year’s openings in resort locations, this trend presents a lucrative opportunity for travel agents to curate bespoke leisure packages and cater to the increasing demand for experiential travel.

The rise of franchising is another key trend reshaping the African hotel industry. Nearly 19% of new projects are adopting the franchise model, a significant jump from less than 10% three years ago. This shift towards franchising offers both opportunities and challenges for travel agents, requiring a nuanced understanding of the evolving brand landscape and the implications for service standards and client expectations.

Cairo has emerged as a hotspot for hotel development, with over 70 hotels and 17,757 rooms planned, solidifying its position as a major gateway to Africa. Other key cities like Lagos, Addis Ababa, and Casablanca are also experiencing significant growth, offering diverse options for travel agents to expand their portfolios and cater to a wider range of client preferences.

Major international hotel brands are playing a pivotal role in this African hotel boom, with Marriott International leading the pack with 165 hotels and 29,639 rooms under development. Hilton and Accor are also making significant investments, further diversifying the hospitality landscape and providing travel agents with a wider array of brand options to partner with.

The actualization rate of hotel projects, a key indicator of market health, has nearly doubled from 21% in 2023 to 38% in 2024, signaling a robust recovery from the pandemic’s impact and instilling confidence in the industry’s future prospects. With over half of the planned rooms expected to open in the coming years, the outlook for African tourism is exceptionally bright.

This unprecedented growth in Africa’s hotel sector presents a golden opportunity for travel agents to capitalize on the continent’s burgeoning tourism market. By staying informed about these developments, forging strategic partnerships with key players, and understanding the evolving needs of travelers, African travel professionals can position themselves at the forefront of this exciting new era in African hospitality.