Each year, we collect data from the international and regional hotel chains regarding their future hotel openings in Africa. The 14th edition of our annual survey has a record of 42 contributors, reporting pipeline activity totalling around 80,300 rooms in 447 hotels in 42 of Africa’s 54 countries as
of Q1 2022. This paper reports on the highlights of the report, with a special focus on West Africa.
Hotel Chain Development Pipelines in Africa 2022 Regional Summary | ||||||||||
| 2018 | 2019 | 2020 | 2021 | 2022 | |||||
| Hotels | Rooms | Hotels | Rooms | Hotels | Rooms | Hotels | Rooms | Hotels | |
North Africa | 118 | 28,303 | 122 | 28,702 | 119 | 29,050 | 134 | 31,547 | 166 | |
Sub-Saharan Africa | 294 | 46,731 | 270 | 44,395 | 283 | 47,684 | 289 | 47,855 | 281 | |
TOTAL | 412 | 75,034 | 392 | 73,097 | 402 | 76,734 | 423 | 79,402 | 447 | |
The pipeline in sub-Saharan Africa is down 6% in 2021 (measured by rooms), whilst in North Africa, the total is up by 12%. This is the first year in many that the sub-Saharan African pipeline has decreased, and this is for three main reasons: fewer new opportunities in the region; the opening of some 2,700 rooms in 15 hotels last year, and a pipeline “cleansing” which the hotel chains do periodically (the last one was in 2019) to remove some no-hopers. When analysed according to country and by the number of rooms in their pipeline, the top ten countries represent 67% of the total hotels in the survey and 74% of the rooms.
Hotel chain development
Hotel Chain Development Pipelines in Africa 2022 Top 10 Countries by Number of Rooms | ||||
|
| Hotels | Rooms | |
1 | Egypt | 85 | 21,281 | |
2 | Morocco | 50 | 7,209 | |
3 | Nigeria | 33 | 5,619 | |
4 | Ethiopia | 29 | 5,206 | |
5 | Cape Verde | 17 | 4,639 | |
6 | Algeria | 15 | 3,202 | |
7 | Kenya | 24 | 3,155 | |
8 | South Africa | 21 | 3,133 | |
9 | Tunisia | 14 | 2,918 | |
10 | Senegal | 13 | 2,693 | |
Total | 301 | 59,055 | ||
Egypt not only leads the country table, with over 21,000 rooms in 85 hotels (up 20% on last year), but is streaking ahead of the pack, with almost three times the number of rooms in second-placed Morocco, and almost four times Nigeria, which was top of the table for so many years. With continued signing activity (20 hotels with approximately 5,250 rooms last year), Egypt now accounts for more than 25% of the total pipeline.
Looking specifically at West Africa, the Top 10 countries are:
Hotel Chain Development Pipelines in Africa 2022 Top 10 Countries by Number of Rooms – WEST AFRICA | ||||
|
| Hotels | Rooms | |
1 | Nigeria | 33 | 5,619 | |
2 | Cape Verde | 17 | 4,639 | |
3 | Senegal | 13 | 2,693 | |
4 | Ghana | 15 | 2,212 | |
5 | Côte d’Ivoire | 12 | 1,896 | |
6 | Benin | 6 | 1,082 | |
7 | Guinea | 4 | 669 | |
8 | Niger | 2 | 538 | |
9 | Mauritania | 2 | 354 | |
10 | Sierra Leone | 2 | 306 | |
Total | 106 | 20,008 | ||
Accomodation projects in Liberia, Burkina Faso, and Togo, represents 26% of the total
Hotel Chain Development Pipelines in Africa 2022 Top 10 Cities/Resorts by Number of Rooms – WEST AFRICA | ||||
|
| Hotels | Rooms | |
1 | Lagos | 17 | 2,604 | |
2 | Abuja | 11 | 2,250 | |
3 | Dakar | 11 | 2,058 | |
4 | Accra | 13 | 1,837 | |
5 | Abidjan | 10 | 1,756 | |
6 | Boa Vista | 2 | 1,235 | |
7 | Santiago | 6 | 1,114 | |
8 | Sal | 2 | 1,054 | |
9 | Cotonou | 5 | 972 | |
10 | Conakry | 4 | 669 | |
Total | 81 | 15,549 | ||
The region’s “big” cities are in the Top five, and note that Cape Verde has three cities/resorts in the Top 10, featuring some “big beach boxes” by the likes of Barceló and Meliá, both from Spain. Looking at the development activity of the hotel chains in West Africa, it’s led by Marriott International and Accor, which between them account for an amazing 41% of the West Africa pipeline – and an even more amazing 51% of the entire Africa pipeline!
Hotel chains
Hotel Chain Development Pipelines in Africa 2022 Top 10 Hotel Chains by Number of Planned Hotels – WEST AFRICA | |||||
Rank by Hotels | |||||
Units | Rooms | Average Size | |||
1 | Marriott International | 26 | 4,884 | 188 | |
2 | Accor | 21 | 3,598 | 171 | |
3 | Hilton | 9 | 2,072 | 230 | |
4 | Radisson Hotel Group | 7 | 1,143 | 163 | |
5 | Barceló Hotel Group | 6 | 1,758 | 293 | |
5 | Meliá Hotels & Resorts | 5 | 1,743 | 349 | |
6 | Azalaï | 4 | 799 | 200 | |
7 | Hyatt Hotels & Resorts | 4 | 742 | 186 | |
8 | Louvre Hotels Group | 4 | 516 | 129 | |
9 | Mangalis | 4 | 359 | 90 | |
10 | Ascott | 3 | 419 | 140 | |
Barceló, Meliá, Azalaï, and Mangalis have a greater focus on West Africa than the other chains, some of whom have large pipelines in North Africa (particularly Egypt and Morocco). Marriott International, Accor, Hilton, and Radisson are planning to open hotels under several of their numerous brands in West Africa:
Hotel Chain Development Pipelines in Africa 2022 Brands by Chain – WEST AFRICA | |||
Marriott International | Accor | Hilton | |
Aloft Four Points by Sheraton JW Marriott Le Méridien Marriott Executive Apartment Marriott Hotels & Resorts Protea Hotel Residence Inn Renaissance Sheraton Hotel Westin | Adagio Fairmont Grand Mercure Ibis Mantis Mercure MGallery Mövenpick Novotel Pullman Sofitel | DoubleTree by Hilton Hilton Hilton Garden Inn | |
Conclusion
Although the chains expect 16 new hotels to open in West Africa this year and 30 in 2023, their expectations are frequently overly optimistic – following a positive trend in 2019, the actualisation of hotel deals (the proportion that opened compared to what the chains expected to open) was less than 30% in both 2020 and 2021 – for obvious reasons.
Hotel Chain Development Pipelines in Africa 2022 Anticipated Opening Years of Pipeline Deals – WEST AFRICA | |||
Anticipated Opening Date | Hotels | Rooms | |
2022 | 16 | 2,405 | |
2023 | 30 | 5,089 | |
2024 | 25 | 6.059 | |
2025 | 16 | 2,732 | |
2026 | 7 | 1,039 | |
2027 | 2 | 592 | |
2028 and later* | 14 | 2,708 | |
The data provided in this 14th annual report are a mixed bag, with good signs and some not-so good ones. The total development pipeline is up on last year – not a lot, but up is up! There are four new countries with new branded hotel deals, including Burkina Faso in West Africa, and 2021 was a good year for several hotel chains in terms of signings, especially as they could get back out there and sign in person. There is no evidence that any deals were lost due to owner cancellations; there have been numerous delays, but this is a global phenomenon, not just in Africa.
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Author: Trevor Ward (Managing Director W Hospitality Group)