Africa’s hotel development sector is gaining momentum, fuelled by growing investor interest, improved infrastructure and supportive tourism reforms, according to Radisson Hotel Group.
The hospitality group, which operates more than 1,580 hotels in more than 100 countries covering Europe, the Middle East, Africa, and Asia-Pacific, says Sub-Saharan Africa is at the heart of this growth, with SA, Zimbabwe and Zanzibar the standout performers.
The continent has 577 hotels and resorts under construction, which will add more than 104,000 rooms, Radisson said.
“That represents a 13.3% increase in hotel capacity, a rate that outpaces global averages and highlights the expanding opportunities within the region,” it added.
SA’s hotel sector is experiencing an upswing, driven largely by strong domestic spending, which has reached R445bn in recent years, surpassing pre-pandemic levels, Radisson said.
The market is attracting growing interest from investors across traditional business and leisure tourism, as well as in the meetings, incentives, conferences, and exhibitions segment, “reflecting the sector’s broad appeal and resilience”.
Daniel Trappler, senior director of development for Southern and Eastern Africa at Radisson, points to SA and Kenya as markets where supply-demand imbalances present growth opportunities.
“Market indicators across Sub-Saharan Africa suggest strong potential for expansion, with the region expected to generate $168bn in revenue and create more than 18-million jobs in the sector by 2033.
Market indicators across Sub-Saharan Africa suggest strong potential for expansion, with the region expected to generate $168bn in revenue and create more than 18-million jobs in the sector by 2033.
— Daniel Trappler
senior director of development for Southern and Eastern Africa at Radisson
“With Africa’s urban population projected to double by 2050, each new hotel becomes more than just a place to stay,” he added. “It’s a job creator, a magnet for foreign investment, and a piece of critical infrastructure in a growing economy.”
Zimbabwe, once burdened by political and economic challenges, is re-emerging as a growth hotspot with major hotel projects under way in Victoria Falls and Harare.
Efforts to overhaul tourism fees and infrastructure are broadening access to the country’s natural attractions and attracting more sustainable investments in hospitality, Radisson said.
Similarly, Zanzibar is recording a surge in international arrivals, particularly from Eastern Europe and the US, with occupancy rates near 89%.
“This indicates an undersupplied market ripe for further hotel development as brands look to establish early presence,” the hospitality group said.
Still, Trappler said rising construction costs, financing complexities and delays in securing infrastructure or zoning approvals are ongoing hurdles that could slow progress.
“SA developers face particular difficulties with bank lending as fluctuating hotel revenues contrast with banks’ preference for fixed rental incomes, complicating project financing,” he said.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.