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Tourism: Nigeria Drives 11% Growth in Sub-Saharan Africa’s Hotel Pipeline

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The 18th annual Hotel Chain Development Pipelines in Africa report, released in early 2026 by W Hospitality Group, reveals that Sub-Saharan Africa (SSA) has reached a new development milestone. The region’s pipeline now stands at 391 hotels and 61,216 rooms, marking a steady 11% increase over 2025.

According to New Telegraph, the report details future openings in 38 active development markets out of the 49 countries in the region, representing one of the most dynamic and diverse hospitality frontiers on the planet. While North Africa commands the con- tinent’s largest pipeline by room count, with deals in Morocco, Algeria, Tunisia and Egypt, sub-Saharan Africa is closing the gap rapidly.

The difference in development volume between the two regions now stands at just 2%, and sub-Saharan Africa’s pipeline is growing across a far broader geographic footprint, with deals spanning everything from luxury safari lodges in Tanzania and Kenya to upscale city hotels in Lagos, Nairobi and Accra.

Kenya performs well in 2025
Kenya has emerged as the standout per- former of 2025, with 17 new deals signed during the year, rising from sixth to fourth place globally in the pipeline rankings. Its 35 planned hotels and resorts represent 6,190 rooms, a remarkable 42.5% increase on the prior year. Nairobi alone has 20 pipeline deals, driven particularly by CityBlue Hotels Seven deals) and new entrant Choice Hotels International, which has launched its African strategy in partnership with LMR Hospitality.

Nigeria dominates West Africa
Nigeria retains its position as West Af- rica’s dominant market, with 57 planned hotels and 8,480 rooms across 10 locations. Lagos continues to attract major international operators, with Marriott International leading with eight pipeline projects, followed by Accor with five and both Hilton and Wyndham Hotels and Resorts with three each.

Tanzania with most compelling pipeline
Tanzania is one of the most compel- ling stories in the region, with its pipeline growing 21.2% year-on-year. Zanzibar is a particular hotspot, with 13 resorts and 2,424 rooms scheduled to open this year and next, including luxury entries from ENVI Lodges, Four Seasons and Kerten Hospitality’s House Residence brand. Safari lodges are also seeing increased activity, with eight new lodges; with 292 rooms and suites planned by Marriott In- ternational, Kempinski and Banyan Group in the parks of Tanzania’s Northern Cir- cuit.

READ: Tourism: Egypt Leads Africa’s Hotel Boom as Continental Development Pipeline Hits Record High in Q1 2026

Sub-Saharan Africa: Top Markets by Pipeline Size
Nigeria with 57 hotels; 8, 480 rooms; +15.8% YoY growth; new signings (in 2025) 13; under construction 39.2% Kenya with 35 hotels; 6, 190 rooms; +42.5% YoY growth; new signings (in 2025) 17;
under construction 79.5% Ethiopia with 34 hotels; 5, 964 rooms; +5.6% YoY; new signings (in 2025) 1; under construction 79.9% Tanzania with 29 hotels; 4, 159 rooms; +21.2% YoY;

new signings (in 2025) 7; un- der construction 77.5% South Africa with 31 hotels; 4, 136 rooms; +1.5% YoY; new signings (in 2025) 10; under construction 67.2% Ghana with 26 hotels; 3, 942 rooms, +26.1% YoY; new signings (in 2025) 4; under construction 55.7% Speaking on the development, Trevor Ward, Managing Director, W Hospitality Group noted, “Sub-Saharan Africa is where the long-term story of African hospitality will be written.

‘‘Yes, Egypt dominates the pipeline today, with fully 37% of Africa’ entire pipeline, but when you look at the diversity of markets attracting signed deals, from Kinshasa to Zanzibar, from Nairobi to Accra, you see a continent genuinely opening up. ‘‘The construction conversion rates in Kenya, Ethiopia and Tanzania are exceptionally high, which tells you that these aren’t just paper deals. Hotels are actually being built, and will open for business, creating value for so many constituents – owners, shareholders, customers, the employees, the brands and the local economy.’’

He further disclosed; ‘‘One of the defining trends in sub-Saharan Africa is the rapid growth of the franchise model. While management agreements still dominate (509 hotels, 98,361 rooms), franchised deals now represent 22% of the total pipeline — up from less than 10% in 2020. ‘‘Franchises are more prevalent in sub-Saharan Africa than in North Africa: although the two regions have roughly equal pipeline sizes, sub-Saharan Africa accounts for 75% of all franchised deals continent-wide.

Impact of new generation white-label hotel operators
This shift is being enabled by a new generation of white-label hotel operators, notably Aleph Hospitality and Valor Hos- pitality, newly joined by First Group and Petra, as well as indigenous operators in Nigeria, Kenya and other markets, all of which are giving international chains the confidence to extend their brands through franchise agreements. ‘‘Marriott International leads with 69 franchise deals in Africa, approximately 40% of its total pipeline, followed by IHG (23), Hilton (12) and Accor (8). Sub-Saharan Africa’s pipeline is more evenly distributed across chain scales than in North Africa, with Upper Midscale hotels representing 23.3% of rooms — a meaningful segment that barely registers in North Africa’s pipeline. The Upscale and Upper Upscale segments together account for 68% of sub-Saharan rooms, reflecting strong desire from developers, investors and the chains to operate in those segments.

2026 highlights broader development map
The 2026 report highlights a note- worthy broadening of the development map. The Democratic Republic of Congo emerged as a surprise story in 2025, with five new hotels opening in Kinshasa and more in the pipeline. Louvre Hotels Group opened the Golden Tulip Kin-Oasis there, and Radisson Hotel Group has entered the DRC, with projects in both Kinshasa and Lubumbashi. CityBlue Hotels are making significant moves in the region.

CityBlue, headquartered in Africa, has grown its pipeline by a remark- able 183% year-on-year, to 12 hotels and 2,650 rooms, predominantly in Kenya. All of those rooms are under active construction — a 100% on-site conversion rate that stands unmatched among the survey’s top 10 chains. Choice Hotels International enters Africa for the first time in its 70+ year history, launching with the conversion of three existing hotels in Kenya and one in Rwanda, under their Quality, Clarion and Ascend Collection brands, with a stated ambition of 100 Choice-branded hotels across the continent within a decade.

Yet to explore underbelly of sub-Saharan Africa’s hotel prospect
Despite the progress, the report notes that sub-Saharan Africa’s hotel develop- ment has ‘merely scratched the surface.’ Economy and Midscale branded hotels remain almost entirely absent from the pipeline, despite the growth of domestic and regional travel. Extended-stay brands represent just six per cent of the total pipeline, contrary to the massive increase in that segment in the USA, Europe and elsewhere. These gaps represent some of the most compelling underdeveloped opportunities in African hospitality. The report also notes a growing geo- graphic spread of deals beyond capital cities. Ethiopia now has signed hotel deals in Hawassa, Harrar and Bahir Dar, in addition to Addis Ababa. Outside the top 10 cities and top 10 resorts, there are deals signed in 170 other locations across the continent.

Every edition of W Hospitality Group’s data is more compelling
Matthew Weihs, Growth Director, The Bench said, “The sub-Saharan story is one that keeps getting more compelling with every edition of W Hospitality Group’s data. Investors who were once hesitant about markets beyond South Africa and Nigeria are now signing deals in Rwanda, Zambia, Angola, and the DRC. ‘‘FHS Africa exists to facilitate exactly that broadening of the investment base. What excites us most is that the chains themselves are not just signing in the obvious gateway cities, they are moving into secondary cities and new resort destina- tions, which signals genuine confidence in the continent’s tourism trajectory.

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