Africa's Hotel Pipeline Grows with Resorts and Franchises

In an exclusive interview, Trevor Ward, Principal at W Hospitality Group, highlighted the dynamics of Africa's hotel market, emphasizing the role of resort developments and franchise agreements in driving growth. In 2022, the continent saw the opening of 50 new hotels, with a significant rise in resort chains, leading to a total of 220 projects in the pipeline.

Franchise agreements accounted for 146 developments, representing a 35% increase from the previous year and nearly 22% of the total pipeline. The focus has shifted towards 5-star luxury hotels, while midscale options are struggling due to design flaws and operational challenges.

Ward pointed out that the Nigerian market is forgiving of mediocrity, but competition is increasing, prompting international chains to sign more deals. He noted that hotel projects often face difficulties post-opening, with many suffering from poor locations and inexperienced management, raising concerns about the sustainability of such developments in the long run.