West Africa accounts for 42% of the ‘Sub-Saharan African hotel pipeline’
Nigeria, Senegal and Cape Verde dominate the West African hotel pipeline with 77 percent of the total planned hotel rooms.
W Hospitality Group’s 2017 Hotel Chains Pipeline report shows that hotel groups need tackle lengthy development periods in West Africa, according to a press release issued by API Events and seen by APA Tuesday.
West Africa has been at the heart of the continent’s growth and economic transformation in recent years.
Notwithstanding the sharp slowdown experienced in 2016 and 2017, the region’s economy is expected to rebound in 2017 onwards.
Commodity-based economies, like Nigeria, are slowly recovering from the fall in oil prices and oil production, while countries like Côte d’Ivoire, Mali, and Senegal have shown economic resilience and sustained growth.
As many of the countries continue to stabilize - politically and economically - the region will be better integrated from a local and international context. This increased integration raises the need for quality travel and accommodation infrastructure.
The growth of the hotel sector is an important indicator of how well a market is developing its travel infrastructure, and the indicators for West Africa are mixed.
According to W Hospitality Group’s 2017 Hotel Chains Pipeline report, West Africa has a pipeline of 114 hotels and 20,790 rooms, accounting for 42% of the Sub-Saharan African hotel pipeline.
However, of these hotel deals signed and planned, only approximately 9,875 rooms, or 48% have moved to construction.
In addition, projects in the region have longer than average development periods at approximately six years, compared to the two- to three-year development programme that is usually planned.
Of the hotel pipeline for West Africa, Nigeria contributes 49.6% or more than 10,000 hotel rooms (in 61 hotels). Nigeria is also the top market in Africa for planned rooms.
The other substantial markets in West Africa include Cape Verde with 11 hotels and 3,478 rooms, and Senegal with 14 hotels and 2,164 rooms.
These three markets contribute a total of 15,955 hotel rooms, or 77% of the West African hotel pipeline.
Approximately 57% of the pipeline in these countries has moved to site. However, some of these projects have been stalled for some time. For instance, in Senegal only approximately 44% of the deals signed have moved to site.
Senior representatives from major hotel groups such as Hilton, and key hotel experts will be discussing growth strategies in the ever-changing West African economic environment at the upcoming West Africa property investment (WAPI) Summit to be held on November 28 and 29 at the Eko Hotel, Lagos Nigeria.
WAPI is hosted by well-established API Events, Africa’s leading real estate conferencing company. API Events deliver Africa’s most renowned events in real estate investment and development.