Africa achieves a US$8.6 billion premium hotel pipeline

Pictured: rendering of Meliá White Sands Hotel & Spa in the Cape Verde Islands.
Across the African continent, high end hotel projects have collectively generated nearly US$8.6 billion of investment, according to the latest information from THP.

Currently the database holds records of 291 properties comprising a mammoth 59,173 keys.

Egypt ahead

The north African powerhouse of Egypt is in a clear pole position for premium hotel development, with at least 71 sites on the books. Northwestern nation Morocco is in a distant second on 29, while the west African country of Nigeria takes third spot on 24.

For individual cities, Egypt’s capital Cairo is also top, with a minimum of 20 projects underway, Kenyan capital Nairobi is runner-up with 14 sites, while neighbouring Ethiopia’s governmental seat Addis Ababa makes the podium on 10.

Greenfield growth

Entirely new structures are in the ascendency as far as construction categories are concerned, with newbuildings consisting of 85% of the continental pipeline, equivalent to 245 projects. Refurbishments comprise 35 sites, with just seven conversions and four extensions planned.

In terms of star ratings, it’s fairly even between four and five stars, with upscale sites representing 53% of records, equivalent to 153 builds, while the remaining 47%/138 projects are luxury hotels.

Imminent peak

Over 50% of the high end hotel pipeline in Africa is under construction – that’s 153 projects, with a further 31 at a pre-opening stage. The earlier phases of undertakings are fairly well represented too, with 63 hotels in planning, 41 within pre-planning and three at a vision stage.

The construction predominance is reflected in the opening dates, with a peak of 80 sites due for completion by the end of this year. The pace looks to be fairly well maintained next year, with another 73 openings expected, though currently this is tailing off in 2025 and 2026, with 42 and 21 properties due to arrive, respectively. The remaining 75 projects are either due further in the future or have yet to be designated a delivery date.

Swooping groups

Major hotel groups developing their African portfolios are led by Accor, with at least 51 sites, with Radisson Hotel Group (RHG) as the runner-up on a minimum of 40 hotels and Hilton Worldwide close behind on 37. 

Looking at individual brands, RHG’s flagship Radisson Hotels & Resorts is planning at least 20 hotels, while Hilton’s Hilton Hotels & Resorts will welcome a minimum of 18, and Accor’s Novotel makes the podium with at least 12.

Major projects

The biggest high end African hotel development in THP’s database is Fairmont Pyramids Hotel & Residences near the Egyptian capital. The Accor luxury brand’s site will deliver a huge 1,020 keys to Giza by the end of this year.

In the same time period, Meliá Hotel International’s Meliá White Sands Hotel & Spa will open with an abundant 835 rooms on Boa Vista in the Cape Verde Islands. The property will comprise a range of villas and suites in an area split into family and adults-only complexes. The family-oriented section will encompass two separate children’s pools, a baby pool, a kids club and an adventure playground, as well as a wet bar and a poolside restaurant. Meanwhile, the main hotel building will house fine-dining restaurants and a collection of bars, including a relaxed lobby bar, champagne bar and sports bar.