Nigeria Slips to Third in Africa’s Hotel Development Pipeline for 2025: A Wake-Up Call for the Hospitality Sector
Nigeria has dropped to third place in Africa’s highly anticipated 2025 hotel development pipeline, according to the newly released Hotel Chain Development Pipelines in Africa 2025 report by W Hospitality Group. This annual report—now in its 17th edition—tracks major hospitality investments across the continent, drawing from data submitted by 50 international and regional hotel chains.
As of early 2025, Nigeria has 48 planned hotel projects comprising 7,320 rooms. This marks a significant shift in the regional pecking order. Previously ranked second, Nigeria has now been overtaken by Morocco, which surged ahead after signing 13 hotel deals in 2024—more than double Nigeria’s five.
Egypt Maintains Its Dominance
Egypt retains its top position in the African hotel pipeline, accounting for 32.5% of all planned hotel rooms on the continent—equivalent to four times the number in second-placed Morocco. While Egypt faces actualization challenges, with only three out of its 12 scheduled hotels opening in 2024, its massive pipeline confirms its status as Africa’s leading hospitality destination.
Nigeria: Big Potential, Slowing Execution
Despite the drop in rankings, Nigeria remains a major player in Africa’s hotel landscape, particularly with Lagos leading the charge. Of the 48 pipeline projects, 61% (approximately 4,468 rooms) are still in the pre-construction phase, while 39% (2,852 rooms) are under active construction.
Lagos continues to attract top-tier investment, with Marriott International leading the way with eight projects and a combined 1,228 rooms. This is closely followed by Accor with five hotels, Radisson Hotel Group and Wyndham Hotels & Resorts with three each, and Hilton with two developments in progress.
Meanwhile, the capital city, Abuja, is falling behind. Of the 14 projects in the pipeline for Abuja, nine remain in the early planning phase, and the rest are experiencing slow progress—raising concerns that few, if any, will be ready by 2025.
Africa’s Hotel Sector Shows Resilience Amid Global Slowdowns
W Hospitality’s findings also highlight a broader trend: Africa’s hotel development pipeline is growing at a faster rate than the global average. As of early 2025, the continent has 577 hotels and resorts planned, totaling 104,444 rooms—a 13.3% year-on-year increase from 2024.
In 2024, 59 new chain hotels opened across Africa, adding roughly 9,500 rooms. Morocco was a standout, completing 10 out of 20 planned projects—achieving a 50% actualization rate. In contrast, Nigeria’s slower pace highlights the structural and financing challenges investors still face in West Africa.
Investor Interest Remains High
Despite the mixed progress, Africa’s hotel industry continues to attract significant investor interest. In 2024 alone, 125 new deals were signed, adding 21,000 rooms to the development pipeline. Projections indicate that 155 hotel openings are anticipated by the end of 2025, with expectations that at least half of all pipeline deals across the continent will be operational by the end of 2026.
Strategic Planning Needed for Nigeria to Reclaim its Spot
While Nigeria still holds substantial promise in the hospitality and tourism space, the 2025 rankings serve as a clear reminder that potential without execution results in missed opportunities. Stakeholders—both public and private—must focus on removing bottlenecks in planning, financing, and construction to restore Nigeria’s competitive edge in Africa’s rapidly evolving hotel development landscape.
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