The findings of this year’s Hotel Chain Development Pipeline Survey, produced by W Hospitality Group, a vital strategic advisor to the Africa Hotel Investment Forum (AHIF), show a surge in hotel development in Africa, with a jump in the development pipeline to 270 hotels and nearly 50,000 rooms, and with sub-Saharan Africa (SSA) exceeding North Africa by almost 70%. The data reveal a modest recovery in North Africa and increasing confidence in SSA - only two years ago the number of rooms in the North African pipeline was the same as that in sub-Saharan Africa. This year’s survey is based on contributions from 37 international hotel chains with 80 brands between them.
2015 Hotel Chain Development Pipelines in Africa
The SSA region has far more national markets than North Africa, 49 countries vs five and these have historically been underserved with branded hotels. It’s now time for them to catch up and they are: Mauritania, for example, with no existing branded supply, now has three branded hotels in the development pipeline.
Growth in the pipeline in North Africa has slowed considerably, impacted by unrest and political conflict. For example, Libya, a country which many groups were focusing on just two years ago, has seen no new hotel development deals. Egypt, which has traditionally been a major growth market, lost some projects to delays and cancellations in 2014.
As a sub-region, West Africa has by far the greatest number of rooms in the pipeline, more than double East Africa. This is largely thanks to Nigeria, which became the largest economy on the continent in 2014 after it rebased its GDP figures. It has the largest population and the largest number of urban conurbations in one country, with the exception of South Africa.
As in previous years, Southern Africa continues to lag behind, with fewer rooms in development this year than in Central Africa and with the highest number of countries with no activity at all – five, namely Botswana, Lesotho, Malawi, Swaziland and Zimbabwe.
It is important to distinguish between deals which are still in the planning stage and those which are becoming reality, with construction started. Table 3, below, shows the proportion of the deals (rooms) which are actually under construction – sub-Saharan Africa has many more signed deals than North Africa, but the latter has 78 per cent of the pipeline rooms on site, compared to 55 per cent in SSA. - See more at: http://www.traveldailynews.com/news/article/66492/hotel-development-in-africa-accelerates#.dpuf
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