Hotel development in Africa is still surging, and more chains are seeing the value of developing in Southern Africa according to the 'Hotel Chain Development Pipelines in Africa' report by W Hospitality Group.
Since 2009, the number of planned hotels in Africa has more than doubled. The report shows an even more optimistic outlook for Sub-Saharan Africa, where the number of planned hotels has risen from 115, totalling 18 191 rooms, to 310, totalling 48 980 rooms. In South Africa, there are currently 33 planned hotels totalling 4484 rooms.
According to the report, despite the growth in recent years, a slowdown in growth in 2017 is expected, as some financial and bureaucratic hurdles are still in place. However, more hotels are opening on-time than ever before.
Trevor Ward, W Hospitality Group MD, says the opportunities for further growth in South Africa still exist and that they future of hotel development in the country looks optimistic, despite the expected slowdown in growth in 2017.
“I believe the increase in deals to develop hotels in Southern Africa is also attributed to the fact that more chains are seeing the value of developing and getting the deals done as soon as possible,” says Ward.
“The world in 2017 is a very different place to when we started this survey in 2009. But Africa is still rising, at least as far as the development activities of the hotel chains is concerned,” he adds.