Africa's hotel boom is being led by Egypt
Hotel construction site on the Red Sea coast in Sharm El Sheikh, Egypt, showing new resort development along the beachfront

Africa’s hotel boom is being led by Egypt

Africa’s chain hotel development pipeline has reached a record high of 675 hotels and 123,846 rooms as of early 2026, with Egypt emerging as the undisputed engine of growth across the continent. The findings come from the 18th annual Hotel Chain Development Pipelines in Africa report, published by W Hospitality Group.

Egypt alone accounts for 185 planned hotels and 45,984 rooms, representing 37.1% of the entire African pipeline. Its pipeline grew 35.5% in a single year, driven by 53 new hotel deals signed in 2025, more than any other country on the continent.

North Africa as a whole now commands 50% of all pipeline rooms across the continent, with year-on-year growth of 27%, more than double the 11% recorded in sub-Saharan Africa. The North African pipeline stands at 284 hotels and 62,630 rooms, drawing from four active development markets: Egypt, Morocco, Algeria and Tunisia.

Greater Cairo has the largest urban hotel pipeline of any city in Africa, with 88 projects totalling 22,111 planned rooms, representing 18% of the entire continental pipeline. The world’s major hotel groups are committing heavily to the Egyptian capital: Accor has 28 hotels in its Cairo pipeline, Marriott International 20, Hilton 18 and IHG 14, with the four groups together accounting for 16,400 rooms in the city.

Egypt’s Red Sea resorts are generating equally strong momentum. Sharm El Sheikh has nine pipeline projects with an average size of 539 rooms, the largest resort average in Africa’s top 10. Marsa Alam has 14 planned resorts, 53% of which are due to open in 2026 or 2027. Ain Sokhna contributes a further 15 projects, predominantly driven by Kerten Hospitality with seven developments. Egypt’s North Coast on the Mediterranean is also opening up, with considerable activity in Alexandria.

Africa hotel development pipeline

Across North Africa, 55% of pipeline rooms are already under active construction, compared to a global benchmark of approximately 40%. In Egypt, 51.4% of rooms are under construction, a significant figure given the scale and youth of the pipeline, with many projects signed only in the past two years.

“Egypt represents a terrific opportunity for hotel investment. The scale of what is being planned — nearly 46,000 rooms — is extraordinary, in some 30 different cities and resorts; what is most encouraging is that over 50% of those rooms are already under construction. The government’s Vision 2030 tourism target of 30 million annual visitors is creating real urgency among international operators to secure their positions now,” said Trevor Ward, Managing Director, W Hospitality Group.

Morocco continues to demonstrate strong momentum, with 75 pipeline hotels and 10,606 rooms, a 23.6% increase year-on-year. The country recorded 29 new hotel deals in 2025, the second-highest total on the continent, spread across 13 cities and resort destinations. Morocco is particularly advanced in construction activity, with 64.7% of its pipeline already on-site.

Morocco’s appeal has been further amplified by its role as co-host of the 2030 FIFA World Cup, which hospitality leaders cite as a major catalyst for long-term infrastructure investment. The country recorded nearly 20 million international arrivals in 2025, a 14% increase on 2024, making it Africa’s leading tourism destination for the second consecutive year.

“Egypt is one of the most exciting hospitality investment stories in the world right now, not just Africa. We created FHS Egypt specifically because the depth of deal flow, the calibre of investors active in the market, and the government’s clear strategic vision for tourism justify a dedicated forum. The pipeline data from W Hospitality Group makes it clear — Cairo, Sharm El Sheikh, and the Red Sea corridor are where the action is, and FHS Egypt on 10–11 November at the Sofitel Downtown Cairo Nile will be the place where the next wave of deals are shaped,” said Matthew Weihs, Growth Director, The Bench.

Photo Credit: onapalmtree / Shutterstock.com

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