Press Centre

Chronic Shortfall in Supply of Hotels across Africa

11 Oct 2017

According to research undertaken by W Hospitality Group, sub-Saharan Africa, particularly West Africa and East Africa, is chronically undersupplied in terms of branded hotel bedrooms, as the following table shows: 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 being 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%). Hotel Chain Development Pipelines in Africa – Regional Summary The key highlights of the research are: 9 countries in Africa have no branded hotels at all 8 have only one branded hotel. Almost half of the continent (25 countries) have two or fewer brands present. Only 10 countries have 10 or more brands present. Just 28 countries (53%) have branded hotels located outside of the capital (or main commercial) city, meaning that there is strong potential for further expansion, especially with the drive to economic diversification following the recent commodity price crashes. “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.” For more details, contact Trevor.Ward@W-HospitalityGroup.com