Business

Hotel Industry: Nigeria Ranks Second In African Investment For 2023

Published

1 year ago

Oct 5, 2023.

Eko Hot Blog reports that according to the “Hotel Chain Development Pipeline Africa” report by the W Hospitality Group, West Africa leads in pipeline activity with 20,624 rooms, constituting 46% of the regional total. East Africa follows closely with 29%.

Lagos Marriott Hotel, Ikeja Lagos Nigeria

Notably, the top 10 rankings include six sub-Saharan African countries, collectively accounting for 54% of the region’s hotel investment.

Nigeria, in particular, is experiencing a significant upsurge in hotel investment and has secured the second-highest ranking in Africa, as indicated in the W Hospitality Group’s report on Hotel Chain Development Pipeline Africa.

The hotel industry in Africa is experiencing rapid growth, driven by various factors such as a surge in tourism, rising incomes, substantial infrastructure investments, and favorable investment conditions.

These investments are propelled by the following factors:

Growing Tourism: Africa is emerging as one of the world’s fastest-growing tourist destinations, with an anticipated increase in visitor numbers from 70 million in 2022 to over 100 million in 2023.
Rising Incomes: The expanding middle class in Africa is driving a higher demand for hotel accommodations.
Infrastructure Investment: Governments across the continent are making substantial investments in infrastructure, including airports, roads, and railways, facilitating easier travel to and within Africa.
Attractive Investment Climate: Many African countries are enhancing their investment climates, making them increasingly appealing to hotel investors.

These hotel investments in the top 10 African countries are expected to generate employment opportunities, stimulate economic growth, and enhance the overall tourism experience for travelers.

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