A report by the W-Hospitality Group reveals that a total of 365 hotel chain development pipelines were reported in Africa last year in 2016, with 64,231 rooms.
According to the records, this is an increase of 29.2% from the 2015 where a number of 270 hotels and 49,715 rooms in the pipeline activity were recorded. Furthermore, another research done by JLL hotel research (Jones Lang LaSalle) predicts an investment of US$ 1.7bn in 2017, in hotels in Sub-Saharan Africa with an expected US$1.9bn more in 2018.
Also read:Construction of new hotels in Africa surges
This is expected to increase the number of hotel rooms in the region from the current approximate of 257,000.
The continuous economic growth being experienced in Africa is constantly attracting both domestic and international investors majorly because of the extensive business opportunities. The hospitality industry is the main beneficiary of these investments because of its lucrative nature, a factor that makes clear the increasing development of hotels.
Also read:Survey shows number of hotels in Africa on the rise
A rising middle class that is particularly concentrated in urban areas has also been recorded to be a contributor to the expansion of hotels in Africa.
It is also projected that by 2030, Africa’s top 18 cities are likely to have a combined spending power of US$ 1.3tn that will end up prompting more Africans to travel, internationally and domestically, as a result of growing disposable income, hence the need for more accommodation facilities.
However, even with the constant growth in the hotel industry, the tourist demand in Africa surpasses the provision of accommodation. Figures by UNWTO reveals that Africa received a whopping 58 million international arrivals in 2016, with the number expected to grow further in coming years.
W-Hospitality Group provides advisory services in the hotel, tourism, leisure, and real estate industries to investors.
