Nigeria Ranks Second For Highest Hotel Investment In Africa: Survey
Despite the unstable economic landscape in the country, Nigeria ranked second in hotel investments in Africa.
This was revealed in a recently released report by W-Hospitality Group, titled ‘Hotel Development Pipeline Africa’ in a data analysis of 54 countries across Africa, including North Africa, sub-Saharan Africa and Indian Ocean islands.
The report offers comprehensive and comparable data on hotel chain development activities in Africa, both by existing chains and those seeking to enter the continent.
According to the report Nigeria secures the second place with 6,772 rooms in 42 hotels. “Nigeria moves into second place this year, with 11 new deals signed in 2022, by BWH Hotel Group (two Best Western Plus-branded hotels), Marriott International (four hotels under their Marriott Hotels & Resorts, Protea and Residence Inn brands), Wyndham (a Wyndham and a Ramada), Continent (two deals) and one by newcomer Leva. “
The report shows that Egypt leads the ranking with nearly 25,000 rooms in 103 hotels, surpassing Nigeria by a considerable margin.
Egypt’s signing activity, with 26 hotels comprising about 8,000 rooms in 2022, places it far ahead of other countries.
Egypt accounts for a significant 30% of the total pipeline, showcasing its dominance in hotel development in Africa.
Key players contributing to Egypt’s hotel development include Accor (eight deals with 3,796 rooms), Marriott International (six deals with 1,250 rooms), IHG (four deals with 977 rooms), and Hilton (four deals with 815 rooms). Additionally, Four Seasons, Radisson Hotel Group, TUI BLUE, and TIME each signed one deal.
Despite facing economic challenges, both Egypt and Nigeria have been active in signing hotel development deals, maintaining their positions as top contenders.
The report emphasizes that hotel chains have signed deals in 42 African countries. West Africa leads with activity in 13 out of 18 countries, followed by the Southern & Indian Ocean sub-region, where 11 countries exhibit pipeline development activity.
Central Africa has also seen increased activity, with deals now extending to five of the eight countries in the sub-region, including the recent additions of Gabon and Chad.
This comprehensive report relies on data from 45 regional and international hotel chains, taking into account their operations and expansion plans across Africa and globally.