Global and local hotel chains have targeted Africa as a growth region, due to both its relative undersupply of international-quality hotels, and the expectation of increased demand for rooms. Underpinning this are Africa’s long-term economic and demographic growth prospects, which have continued to attract hotel groups’ interest despite a slowdown in overall African economic growth in recent years.The overall African hotel occupancy rate, as reported by hotel data provider STR Global, was 58.0% in 2017, up from 54.9% in 2016.Many of the continent’s largest cities continue to be challenging markets for hotel operators entering or expanding in Africa. New hotel developments are regularly subject to protracted delays, and there is an ongoing disparity between the stated pipelines of major hotel groups in Africa and their ability to open these projects on time.
