Hotel pipeline signals African growth

International hotel chains are expanding into Africa at a pace not seen before.

By Leon Louw founder of WhyAfrica and Endorphin Expeditions    

The number of hotels under construction or in the pipeline is an indicator I often use to gauge the investment climate across Africa.

According to the “Hotel Chain Development Pipelines in Africa 2026” report published by W Hospitality Group the branded hotel pipeline in Africa reached a record 123,846 rooms across 675 projects in 2026, up 18.6% year-on-year.

These number signal sustained investor confidence.

Egypt in demand

Looking at specific countries and construction status is interesting. For example, Egypt accounts for more than a third of all pipeline rooms while East Africa leads on execution.

Kenya, Ethiopia and Tanzania have over 77% of their pipeline rooms already under construction, far above the continental average.

With 185 hotels and 45,984 rooms in its pipeline, Egypt accounts for more than one third of all planned hotel capacity across Africa, a share more than four times that of Morocco, the second-ranked market, which has 75 hotels and 10,606 rooms.

Hotels in the pipeline

Nigeria ranks third with 57 hotels and 8,480 rooms, followed by Kenya with 35 hotels and 6,190 rooms, and Ethiopia with 34 hotels and 5,964 rooms.

Cape Verde, a small island economy, places sixth with 17 hotels but a notably high average room count of 255 per property, reflecting large resort-format developments.

The top ten markets, which also include Tunisia, Tanzania, South Africa and Ghana, collectively account for 79% of all pipeline rooms leaving the remaining 44 African countries to share just over a fifth of continental hotel development activity (source: “Hotel Chain Development Pipelines in Africa 2026” report).

Construction status a different story

When we look at the construction status East Africa seems to be the most dynamic region in Africa though.

Ethiopia leads all major markets with 79.9% of its pipeline rooms already under active construction. Kenya follows at 79.5%, and Tanzania at 77.5%. All three countries are therefore expected to deliver a significant proportion of their new supply within a short to medium-term horizon typically 18 to 36 months from current construction status to opening.

Image: International hotels are expanding into Africa. The hotel in picture is close to Livingstone in Zambia. Image credit: Leon Louw for WhyAfrica during a WhyAfrica Road Trip.

Hotel pipeline signals African growth