Addis Ababa ls The 8th Hottest City For Hotel Investment In Africa
Addis Ababa will soon get more international hotels with 1,326 rooms, a new report has said. This will make the Ethiopian capital the 8th largest city in Africa to get additional international hotels with standard rooms in the continent.
The findings of this year’s Hotel Chain Development Pipeline Survey, produced by W Hospitality Group, show that Lagos is the hottest city in Africa, when it comes to the development of new hotels by international hotel investors.
In compiling the data, W Hospitality Group spoke to 37 hotel chains with 80 brands between them. To qualify for the study, hotel chains need to be operating in more than one country so by definition, more hotel development activity is taking place because domestic players in the market have not been counted.
Looking at Africa overall, 3,611 new hotel rooms are currently planned by the chains in Lagos, Nigeria’s commercial capital. It is followed by Cairo, with 2,704 rooms, Abuja, Nigeria’s political capital with 2,177 rooms, and Marrakesh with 1,994 rooms. Whilst Nigeria is evidently hot, so too is Egypt, thanks to substantial development in the resort destination Sharm el Sheikh, with 1,970 rooms in the pipeline there. The five next most active cities are Algiers with 1,761 rooms, Dakar with 1,341 rooms, Addis Ababa with 1,326 rooms, Nairobi with 1,220 rooms and Kampala with 1,181 rooms
Excluding North Africa from the analysis brings into the top ten some relatively small markets such as Kigali and Conakry, where there must be some concern regarding oversupply – if all the hotel deals that are planned go ahead.
Nigeria continues to dominate – 40 per cent of rooms in the top ten are in Lagos and Abuja.