Econostrum | Economic News in the Mediterranean
     

Egypt accounts for 25% of hotel development projects on the African continent


Written by Frédéric Dubessy on Thursday, June 2nd 2022 à 19:40 | Read 569 times


Egypt and Morocco occupy the top two spots in W Hospitality Group's survey of hotel development projects on the African continent.


Egypt is engaged in the construction of 85 hotels representing 21,281 rooms (photo: CC A)
Egypt is engaged in the construction of 85 hotels representing 21,281 rooms (photo: CC A)
NORTH AFRICA. A survey conducted by W Hospitality Group (a hotel, tourism and leisure consultancy based in Lagos, Nigeria), in association with the Africa Hospitality Investment Forum (AHIF), reveals that Egypt and Morocco are the two countries in Africa where hotel chains will be developing the most in 2022. They "anticipate the opening of 200 new hotels this year and next, even if their expectations may sometimes be too optimistic", comments Trevor Ward. For the managing director of W Hospitality Group, "after a positive trend in 2019, hotel supply discounting (the proportion that actually opened, compared to what chains were planning to open) was below 30% in 2020 and 2021 - however, this was entirely understandable with pandemic-related travel restrictions killing demand for hotel rooms."

This analysis released on Thursday 2 June 2022 shows the renewed dynamism of this activity. In the first quarter of 2022, forty-two hotel chains had projects in forty-two countries out of the fifty-four on the African continent for a total of 447 hotels and 80,300 rooms. Of this total, Egypt has 6,142 rooms in the pipeline and Morocco 5,577 (2,337 for Algeria and 2,280 for Tunisia). Four of the five North African countries belong to the Top 10 of this ranking which represents 67% of the total number of hotels and 74% of the rooms in this survey.

The usual "locomotives" Nigeria, Ethiopia, Kenya and South Africa recorded a 29% drop (-41% for Nigeria alone). "There are three main reasons for this decline: fewer new opportunities in the region, the opening of some 2,700 rooms in fifteen hotels last year and a 'clean-up' of the pipeline that hotel chains periodically carry out to eliminate various projects that are unlikely to come to fruition," says W Hospitality Group.

Cape Verde is the only sub-Saharan country to do well, with a 33% increase in the number of rooms planned and is now in fifth place.

21,281 new rooms planned in Egypt

Plans for new hotel rooms in 2022 are rife in Africa (table: The Bench)
Plans for new hotel rooms in 2022 are rife in Africa (table: The Bench)
Three quarters of the projects are underway in Morocco and Tunisia. 71% are only in the planning stages for Egypt, with most contracts signed only in the last three years.

In fact, when comparing rooms in the planning stage with those under construction, Egypt comes out on top with 21,281 rooms (in 85 hotels). This figure marks an increase of 20% compared to 2021 and is three times higher than Morocco (7,209 rooms under development in 50 new hotels). Egypt, which has just signed in 2021 twenty additional hotels (5,250 rooms), now represents more than 25% of the hotel projects in the African continent.

"While the hotel industry has just gone through the darkest period of my professional career, it is fascinating to note that the pandemic has not affected the long-term confidence of investors in the hotel industry. On the contrary, the most astute financiers saw an opportunity. They have been encouraged by enlightened governments, such as Morocco's, which have spent billions of dollars on new infrastructure to encourage investment in tourism," says Matthew Weihs. He is managing director of The Bench and organises the AHIF forum. The next edition of this conference on hotel investment in Africa will take place in Taghazout, near Agadir from 2 to 4 November 2022.

Accor and Marriott the most active

The French Accor with 20,857 rooms spread over 107 hotels, and the American Marriott (20,248 in 103 establishments) are the two hotel chains with the largest portfolio in realisation. Between them, they account for more than 25% of the projects. Hilton, which ranks third, is developing "only" 10,505 rooms in fifty-five hotels, followed by Radisson (6,248 in 35), IHG (3,136 rooms including 650 in four Indigo hotels in Egypt and 300 in an InterContinental located in the new administrative capital 45 km east of Cairo), Barceló (2,488), Hyatt (1995), Meliá (1,743), Louvre (1,273) and Minor (1,203).

"Analysing the number of rooms under construction, as opposed to just in the pipeline, changes the ranking of hotel chains considerably, as Accor has only 26% of its pipeline on site, while Marriott and Hilton have around 57% and Radisson 85%," the survey points out. "This puts Marriott in first place, Hilton in second, Accor in third and Radisson in fourth. The top ten combined have 82% of all rooms under construction in Africa, and the top four account for 66% of the total, up from 58% last year," the paper continued.

 



In the same section
< >

Tuesday, July 5th 2022 - 17:35 New inflation record in Turkey

Monday, July 4th 2022 - 14:36 Iremmo creates a branch in Marseille €


   Partners









About Econostrum.info Econostrum.info is an independent media that deals with the daily economic news of the countries bordering the Mediterranean. Economic cooperation, business news by sector (Industry, Services, Transport, Environment, Society/Institutions), thematic files, airport news, airlines and shipping companies (new destinations)... are treated and analysed by a team of journalists present in the Mediterranean basin. Subscribe to Econostrum.info To be the first to know, with unlimited access to all articles. To receive the weekly newsletters and special newsletters sent as soon as our files are published. Automatically renewable subscription, but the reader keeps control of it or yearly subscription. For individuals or professionals...