Pandemic impact on Africa’s development pipeline

Africa’s hotel performance has been greatly altered by the pandemic, but development on the continent continues to move forward. 

Future development

At the time of writing, Africa showed 64,419 rooms in construction, according to STR’s AM:PM. That number is considerable as many projects have been shelved since the beginning of last year.

Egypt leads in construction activity at 13,768 rooms, which represents one in five rooms under construction in Africa.

Following Egypt, Ethiopia and Morocco show 7,099 and 6,006 rooms under construction, respectively.

Ghana on the other hand, presents the lowest number of rooms being constructed (1,886).

Shift in Ethiopia
Ethiopia has seen an increase in pipeline activity in its regional destinations. Previously, development in the country was concentrated in the capital city, Addis Ababa. Now, the STR-defined Ethiopia Regional market shows roughly 10 properties developed in areas of nature sanctuaries, near lakes, etc. Most of these properties in regional destinations are resort properties with conference facilities developed to attract more corporate demand.

Addis Ababa, on the other hand, presents 26 projects in the pipeline, most of them near the Addis Ababa Bole International Airport.

Popular parent companies

As of 15 January, Marriot represents the highest percentage of rooms in the total pipeline at 16,324. Accor ranked second with 14,976 new rooms, while Hilton was third at 10,427.

Conclusion

With much uncertainty remaining around the pandemic, there could see a further decrease in pipeline activity as more developers decide to abandon their plans for new hotels in Africa.

For further information, watch our latest Middle East and Africa webinar here.