15 African Countries With The Highest Investments In The Hotel Business
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In this article, we will take a detailed look at the 15 African countries with the highest investments in the hotel business with insights into signed deals in early 2023 from 45 regional (African) and international hotel chains. To see top 5 countries in this list click 5 African Countries With The Highest Investments In The Hotel Business.
Over the past two decades, Africa has experienced rapid tourism industry growth, attracting international and regional hotel chains. South Africa, one of the top tourist destinations in Africa, has a growing hospitality industry that caters to business and leisure travelers. The South African hospitality industry is estimated to be worth USD 1.30 billion in 2023, with a CAGR of 4.43% forecast for 2023-2028. In April 2022, 1,696,851 travelers 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; its well-developed infrastructure; and its relatively affordable prices.
Moreover, hotel chains signed 447 deals and added 80,291 rooms to their hotel development pipeline in Africa in 2021, almost the same as in 2019. North Africa recorded the most growth on the continent, with Egypt emerging as the country with the highest number of rooms and hotels, three times the number of Morocco, and almost four times the number of Nigeria. This growth was partly driven by the Egyptian government's initiatives to promote tourism.
Consequently, the Egyptian government has launched several initiatives to attract more visitors, including investing in infrastructure, developing new tourism products, and promoting Egypt as a safe and attractive destination.
A Look Into African Hotel Industry
Marriott International Inc (NASDAQ:MAR) is one of the world's largest and most successful hotel companies. It has a significant presence in Africa, with over 130 hotels in 20 countries. Marriott International Inc (NASDAQ:MAR) is set to expand its portfolio of African luxury hotels, with five anticipated openings by the end of 2024. The company is expected to introduce The Ritz-Carlton and St. Regis brands 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 openings 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 it is investing in developing its luxury portfolio to meet the needs of discerning travelers.
Another big name in the hotel industry of Africa is Wyndham Hotels & Resorts Inc. (NYSE:WH). It is one of the largest hotel companies in Africa, with a strong financial performance of revenue growing at a compound annual growth rate (CAGR) of 8.8% over the past five years.
In the continent, there are 5 hotels and 819 rooms of Wyndham Hotels & Resorts Inc. (NYSE:WH), operated via franchise agreements under the Ramada and Hawthorn Suites by Wyndham? brands across Ghana, Morocco, Nigeria, and Tunisia. Wyndham Hotels & Resorts Inc. (NYSE:WH) has a pipeline of 6 hotels in Africa: 2 in Kenya, 2 in Tanzania, 1 in Nigeria, and 1 in Ethiopia. Once these hotels 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’s (EPA:AC) hotels range from budget-friendly chains to luxury resorts. Accor SA (EPA:AC) is well-positioned to benefit from the growing tourism industry in Africa. Accor's revenue in Africa has grown steadily in recent years. In 2022, Accor SA (EPA:AC) generated €4,224 million in revenue from its worldwide operations. This represented an increase of 80% like-for-like (LFL) versus FY 2021.
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Methodology
To create a list of the 15 African countries with the highest investments in the hotel business, we sourced data from W Hospitality Group. This source has issued 2023 Hotel Chain Development Pipelines in Africa with insights into signed deals in early 2023 from 45 regional (African) and international hotel chains, including North Africa, Sub-Saharan Africa, and the Indian Ocean Islands. It provides valuable insights into the latest trends and developments in the African hotel market and the key players and projects shaping the industry's future. This report only includes hotel chains that operate in or plan to expand into more than one African country (for Africa-based chains) or more than one country globally (for international chains). Domestic hotel chains operating in only one African country are excluded.
The 2023 Hotel Chain Development Pipelines assesses the status of each hotel project in Africa, differentiating between those in the pre-planning stage and those under construction. The term "under construction" indicates that work has started on site, but some projects have been suspended for some time, and their completion is uncertain. Despite this, these projects are included in the analysis because they remain as deals recorded in the hotel chains' development pipelines.
Our list lists the cities in ascending order of each country's Total Pipeline Hotel Rooms.
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Democratic Republic of Congo
Total Pipeline Hotel Rooms: 1,605
The Democratic Republic of Congo has a variety of hotels and resorts to cater to 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-friendly hotels in Kinshasa. The DRC government is committed to developing the tourism industry. In 2022, the government launched a new tourism strategy to attract 1 million tourists annually by 2025.
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Uganda
Total Pipeline Hotel Rooms: 1,725
According to the Ministry of Tourism, the tourism and hospitality sector accounts for around 667,600 staff, with 90% employed in the hospitality sector; the sector contributes to about 6.7 % of the total national employment.
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Tunisia
Total Pipeline Hotel Rooms: 2,132
Tunisia's tourism industry is poised for a strong recovery, bringing much-needed foreign currency to the crisis-hit economy. Tourism typically accounted for around 7% of Tunisia's gross domestic product, but visitor numbers collapsed during the COVID pandemic, putting extra strain on an economy that was already in trouble.
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Ghana
Total Pipeline Hotel Rooms: 2,181
Ghana is one of the most frequently visited tourist destinations in English-speaking West Africa. The country is home to many tourist attractions, especially for those interested in nature and the history of the West African slave trade era.
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Cameroon
Total Pipeline Hotel Rooms: 2,407
Cameroon's hotel and travel 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 UK, and Canada, and business travelers make up a large segment of the tourist market.
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C?te d'Ivoire
Total Pipeline Hotel Rooms: 2,445
C?te d'Ivoire aims to establish tourism as the third pillar of its economy, with a target of attracting 5 million foreign tourists annually and creating 700,000 jobs by 2025.
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Senegal
Total Pipeline Hotel Rooms: 2,650
As the potential for tourism investment in Francophone Africa becomes increasingly evident, Senegal has emerged as a promising destination for development.
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South Africa
Total Pipeline Hotel Rooms: 2,768
South Africa is a complex and challenging market for international hotel chains, but it also offers significant opportunities.
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Algeria
Total Pipeline Hotel Rooms: 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.
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Cape Verde
Total Pipeline Hotel Rooms: 3,660
Travel and tourism are vital pillars of Cape Verde's economy, providing employment opportunities for a significant portion of the workforce. In 2020, the industry accounted for 33.4 percent of total employment, directly supporting 68,000 jobs. While the COVID-19 pandemic decreased the number of jobs in the sector by about 34 percent compared to 2019, tourism remains a crucial 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.
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Disclosure. None.15 African Countries With The Highest Investments In The Hotel Business was originally published on Insider Monkey.