Africa's hospitality boom: Are we building fast enough?

Zawya

5 days ago

Africa's hospitality sector is booming — but is development keeping up with demand? That was the key question tackled by a panel of industry leaders at the Future Hospitality Summit Africa 2025, held from 17 to 19 June at The Westin Cape Town.
Moderated by Ninon Lamothe, Africa Director at Voltere by Egis, the session Africa's Hospitality Boom: Is the Sector Growing Fast Enough to Meet Rising Demand? brought together Bani Haddad (founder and MD, Aleph Hospitality), Esteban Lozada (MD development North & West Africa, Hilton), Wytze van den Berg (VP EMEA, BWH Hotels) and Artur Gerber (CEO, TUI Blue Hotels & Resorts) to unpack the opportunities and challenges facing hotel growth on the continent.
The discussion focused on the demand-supply gap in African hospitality markets, what kind of hotel developments make sense, and where the growth opportunities are.
Is demand outpacing supply?
"There's a lot of demand in Africa. I'm not sure if it's too much," says Wytze van den Berg. "But what we know is that by 2050, Africa will have 2.5 billion people. That's 30% of the planet's population — and you need more hotels for that."
BWH Hotels is focusing on upgrading older hotels across African cities into modern three- and four-star properties. "Conversions are going much quicker than greenfield projects," he says, adding that many legacy hotels in Africa are being bought, renovated, and repositioned to better meet market demand.
Bani Haddad agrees demand is real, but highly localised. 'Africa is a massive continent, not just in population but in diversity. There are cities where supply isn't coping with demand, and others where there's clearly no need for more rooms,' he says.
'You can't keep building upscale in Nairobi, for example. A long-stay, midscale product might make more sense now. We're not seeing enough lifestyle hotels either — and there's definitely a market for that."
International and domestic drivers of demand
Esteban Lozada outlines Hilton's dual approach to meeting both international and domestic demand. 'Africa has some fantastic leisure experiences, strategic business hubs, and ambitious tourism policies. In Ghana and Angola, for example, there's been a push for visa-free entry to boost tourism.'
On the domestic side, he points to demographics.
'Sixty percent of Africa's population is under 25. In 10 years, more people will be entering the workforce in Africa than in the rest of the world combined. That means more purchasing power, a growing middle class, and rising local travel demand.'
Lozada says Hilton plans to open 100 more hotels across Africa in the coming years, creating 18,000 jobs.
TUI's long-term approach
Artur Gerber highlights TUI's long history in Africa, particularly in Egypt, Morocco, Tunisia and now Zanzibar. "We're not only an operator — we're also an owner. So we're invested in the long term," he says.
TUI's strategy focuses on creating clusters in each region, combining different hotel brands in one area. 'We've done it in Cape Verde — we opened one hotel 30 years ago and now there are 10–15 direct flights from Europe daily. We're doing the same in Senegal. That ecosystem approach works.'
He adds that Africa's people are part of the draw. "If you ask guests what they remember most, it's not just the weather or food — it's that they felt welcome. That's what sets African hospitality apart."
Development challenges remain
Despite the optimism, panellists acknowledge the real roadblocks.
"The number one issue is access to capital,' says Haddad. 'And even when you secure funding, getting the hotel open is another story. There's often a resistance to bringing in professional project teams early on. That lack of planning slows everything down."
Gerber adds that supply chain issues and energy infrastructure are also major concerns. "We face cost increases, but we're still trying to install sustainable solutions — solar, water saving, waste management. These things cost more upfront, but they're necessary."
He says operating hotels requires skilled staff, and training local teams has become a top priority for TUI. "We're rotating talent across our hotels in Africa and Europe. That knowledge exchange is part of our long-term investment."
Key growth markets to watch
According to panellists, the markets showing the most promise right now include:
• Morocco and Egypt (Hilton and TUI both expanding)
• Ivory Coast, Ghana, Nigeria (West Africa remains strong)
• Kenya, Ethiopia, Tanzania (East Africa development pipeline)
• Angola (Hilton announced three new hotels)
• Uganda (BWH bringing in its WorldHotels brand)
Haddad also announced Aleph's takeover of 26 hotels under the Onomo brand, totalling 3,400 keys — and says Aleph is setting up a luxury division to manage its growing high-end portfolio.
While the sector is expanding and operators are innovating to meet demand, challenges around capital, planning, and infrastructure mean the pace of development still struggles to fully keep up with the continent's rapid growth.
"This continent is full of lifestyle, energy and vibe — it's underserved, but it's ready," he says.
All rights reserved. © 2022. Bizcommunity.com Provided by SyndiGate Media Inc. (Syndigate.info).