According to research undertaken by W Hospitality Group, sub-Saharan Africa, particularly West Africa and East Africa, is undersupplied in terms of branded hotel bedrooms.
Table depicting the undersupply of hotel rooms in Africa
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 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%).
The key highlights of the research are as follows:
- Nine countries in Africa have no branded hotels at all.
- Eight have only one branded hotel.
- Almost half of the continent (25 countries) has two or fewer brands present.
- Only ten countries have ten or more brands present.
- 28 countries (53%) have branded hotels located outside the capital (or main commercial) city, meaning that there is a strong potential for further expansion, especially with the drive to economic diversification following the recent commodity price crashes.
In a recent press release, W Hospitality Group said: “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.”