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Hotel Pipeline Growth in Africa Accelerates

Tuesday March 5th, 2013 - 10:06AM

BERLIN—Research by W Hospitality Group, one of the founding members of Hotel Partners Africa (HPA), revealed that the number of planned new hotel rooms in the pipeline in Africa has increased by 16% on last year, which was 12% up on 2011. This is based on a sample of 29 international hotel chains, with 59 brands between them, and analyses deals that they have signed with owners.

In North Africa, the development pipeline grew by 9% from 17,217 planned new hotel rooms in 2012 to 18,782 rooms in 77 hotels in 2013. In sub-Saharan Africa, however, the chains’ pipeline now stands at 21,052 rooms in 130 hotels, up from 17,109 rooms in 100 hotels a year ago—a 23% increase. This compares to 4% growth in Europe and 8.6% growth in Asia-Pacific, according to data produced by STR Global.

Trevor Ward, managing director of W Hospitality Group said in a statement: “The main reasons for the slower growth in North Africa include the opening of hotels in the 2012 pipeline, particularly in Algeria, a reduced investment focus on North Africa due to political concerns and a greater emphasis on development in sub-Saharan markets."

The five countries of North Africa all appear in the top 10 countries for new hotels, led by Egypt (7,644 planned new hotel rooms), Morocco (5,178) and Algeria (3,160). In sub-Saharan Africa, Nigeria has by far the largest pipeline, with 7,470 planned new rooms. The companies leading the way are Hilton Worldwide with 6,230 rooms in its African pipeline, Carlson Rezidor with 5,947, Accor with 5,165 and Marriott with 3,900.