LAGOS (Sundiata Post) – The number of planned hotel rooms in Africa surged almost 30 per cent from the previous year, according to the annual W Hospitality Group Hotel Chain Development Pipeline Survey. The 64,000 room increase across 365 hotels is predominantly due to “strong growth in Sub-Saharan Africa”, the survey reveals.
The rankings show Angola, a newcomer to the list in the top 10, pushing Egypt out of second place, “due to a major deal there signed by AccorHotels” and South Africa in 9th for number of planned rooms.
“The evidence from our survey is clear – investors remain confident about the future of the hospitality industry on the continent. Even when pummelled daily by low commodity prices, exchange rate problems, political challenges and poor infrastructure, Africa remains resilient,” said Trevor Ward, W Hospitality Group Managing Director.
Figures from the inaugural survey in 2009 show there were 19 international and regional hotel chains contributing, with a pipeline of 144 hotels and just fewer than 30,000 rooms.
Angola that dominates the 2016 report, after AccorHotels signed with AAA Activos LDA for the management of 50 hotels with around 6,200 rooms in July 2015, with all under construction and many ready to open.
The IMF forecasts a 4 per cent increase in economic growth for Sub-Saharan Africa and 4.7 per cent in 2017, from 3.5 per cent in 2015.
“This is the eighth annual pipeline survey, widely recognised as the most authoritative source on hotel industry growth in Africa, particularly in revealing data on international chains signing new deals,” cites the report.
In 2011, the survey found the number of pipeline rooms in the five North African countries was about 25 per cent higher than in Sub-Saharan Africa, while today, it is less than half.
“There are two reasons why development activity in North Africa is now somewhat subdued. Firstly, the markets there are more mature and have already seen much development, so there are fewer opportunities for new hotels. Secondly, there is the political turmoil – in Libya, which has seen a 40 per cent drop in the pipeline, and also Egypt, parts of which are experiencing drastic reductions in the number of tourists,” explained Ward.
Nigeria is still leading with the most rooms in the pipeline, up 20 per cent in 2015 and together with Angola, the two countries account for 17,782 rooms in the pipeline, almost 30 per cent of the total and 40 per cent of the signed rooms in Sub-Saharan Africa.
Despite the impressive 30 per cent promising findings, Ward cautions on the number of hotel deals that have been signed but have not yet opened, primarily due to a lack of finance.
“Between 2006 and 2013, 104 deals with 21,377 rooms, over 30% of the total, were signed and should now be open, or at least well under construction”.
The findings from the survey come just in time to be discussed in detail at the African Hotel Investment Forum (AHIF), a conference that attracts all major international hotel investors in Africa.
The rankings show Angola, a newcomer to the list in the top 10, pushing Egypt out of second place, “due to a major deal there signed by AccorHotels” and South Africa in 9th for number of planned rooms.
“The evidence from our survey is clear – investors remain confident about the future of the hospitality industry on the continent. Even when pummelled daily by low commodity prices, exchange rate problems, political challenges and poor infrastructure, Africa remains resilient,” said Trevor Ward, W Hospitality Group Managing Director.
Figures from the inaugural survey in 2009 show there were 19 international and regional hotel chains contributing, with a pipeline of 144 hotels and just fewer than 30,000 rooms.
Angola that dominates the 2016 report, after AccorHotels signed with AAA Activos LDA for the management of 50 hotels with around 6,200 rooms in July 2015, with all under construction and many ready to open.
The IMF forecasts a 4 per cent increase in economic growth for Sub-Saharan Africa and 4.7 per cent in 2017, from 3.5 per cent in 2015.
“This is the eighth annual pipeline survey, widely recognised as the most authoritative source on hotel industry growth in Africa, particularly in revealing data on international chains signing new deals,” cites the report.
In 2011, the survey found the number of pipeline rooms in the five North African countries was about 25 per cent higher than in Sub-Saharan Africa, while today, it is less than half.
“There are two reasons why development activity in North Africa is now somewhat subdued. Firstly, the markets there are more mature and have already seen much development, so there are fewer opportunities for new hotels. Secondly, there is the political turmoil – in Libya, which has seen a 40 per cent drop in the pipeline, and also Egypt, parts of which are experiencing drastic reductions in the number of tourists,” explained Ward.
Nigeria is still leading with the most rooms in the pipeline, up 20 per cent in 2015 and together with Angola, the two countries account for 17,782 rooms in the pipeline, almost 30 per cent of the total and 40 per cent of the signed rooms in Sub-Saharan Africa.
Despite the impressive 30 per cent promising findings, Ward cautions on the number of hotel deals that have been signed but have not yet opened, primarily due to a lack of finance.
“Between 2006 and 2013, 104 deals with 21,377 rooms, over 30% of the total, were signed and should now be open, or at least well under construction”.
The findings from the survey come just in time to be discussed in detail at the African Hotel Investment Forum (AHIF), a conference that attracts all major international hotel investors in Africa.
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