Table depicting the undersupply of hotel rooms in Africa
The annual Chain Hotel Pipeline study by W Hospitality Group provides an in-depth insight into the hotel development market across the continent, with the majority of upcoming new supply this year in sub-Saharan Africa (59% of rooms in the development pipeline). North Africa is the largest single region (41%), followed by West Africa (33%) and East Africa (11%).
The key highlights of the research are as follows:
- Nine countries in Africa have no branded hotels at all.
- Eight have only one branded hotel.
- Almost half of the continent (25 countries) has two or fewer brands present.
- Only ten countries have ten or more brands present.
- 28 countries (53%) have branded hotels located outside the capital (or main commercial) city, meaning that there is a strong potential for further expansion, especially with the drive to economic diversification following the recent commodity price crashes.
In a recent press release, W Hospitality Group said: “The shortfall in supply shows that there are still huge opportunities to develop hotels in many countries in sub-Saharan Africa. Demand is growing in many markets, and with careful planning and good advice, there is the opportunity to generate substantial returns on investment.”