The number of planned hotel rooms in Africa has increased to 64 000 in 365 hotels, up almost 30 percent on the previous year, according to new figures from the annual W Hospitality Group Hotel Chain Development Pipeline Survey.
The increase is largely due to strong growth in sub-Saharan Africa, which is up 42.1 percent on 2015 and is significantly outstripping North Africa, which achieved only a modest 7.5 percent pipeline increase this year. A major shake-up in the rankings by country saw Angola, never before listed among the top 10, push Egypt out of second place, due to a major deal there signed by AccorHotels.
Trevor Ward, W Hospitality Group MD, said: “The evidence from our survey is clear – investors remain confident about the future of the hospitality industry on the African continent. Even when pummelled daily by low commodity prices, exchange rate problems, political challenges and poor infrastructure, Africa remains resilient.”
The IMF forecast for economic growth in sub-Saharan Africa is for an increase of four percent this year and 4.7 percent in 2017, up from 3.5 percent in 2015. Overall, this is down on the five to six percent increase enjoyed over the past decade, but it’s still double or more the forecast for the world’s advanced economies, such as Europe, the USA and Japan.
Matthew Weihs, MD of Bench Events, said: “Africa is still on the up. For business, trade and capital investment, the continent remains an attractive proposition, leading to continuing demand for accommodation and other hospitality services.”
Compiled by: Melissa Jane Cook. Source: Travel & Meetings.