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Hilton Heads Hotel Development Boom in Africa

Published 08 July 2015

The findings of this year’s Hotel Chain Development Pipeline Survey, produced by Lagos-based consultancy W Hospitality Group, show that Hilton is leading the race to develop new hotels in Africa with 7,250 rooms in its pipeline, spread over 29 new properties, 18% up on the previous year. Hot on its heels is Carlson Rezidor, with 6,953 new rooms in development spread across 32 hotels. Marriott is in third place with 6,412 rooms in its pipeline spread over 36 new properties, 22% up on 2014.
If one creates a ranking not by number of rooms but instead by the number of hotels, Marriott would take the top spot with 36 in their pipeline, followed by Carlson Rezidor with 32 and Hilton with 29.

2015 Hotel Chain Development Pipelines in Africa
Top 10 Chains by Number of Planned Hotels and Rooms
Rank by Hotels                          Rank by Rooms
                                                                                Change on 2014          Average Size
1 Marriott 36                         1       Hilton Worldwide        7,250                   18%                     250
2 Carlson Rezidor 32         2       Carlson Rezidor         6,953                   11%                     217
3 Hilton Worldwide 29        3       Marriott                6,412                   22%                     178
4 Starwood 21                     4       Starwood                4,623                   32%              220
5 Mangalis 17                     5       Mangalis                2,329                   5%                      137
6 Swiss International 16   6       Accor                   2,273                   43%                     189
7 Accor 12                            7       Rotana                  1,955                   34%                244
7=Best Western 12            8       Swiss International     1,738                   150%                    109
9 Rotana 8                            9       Kempinski               1,618                   3%                 324
10 Louvre Hotels Group 7    10      Fairmont Raffles        1,277                   366%                    319
Best Western has 12 new hotels in its pipeline, but the average size of hotel is lower, at 93 rooms, and therefore drops out of the top ten when the pipeline is analysed by number of rooms. Both Kempinski and Fairmont focus on large, luxury hotels (Kempinski with their single brand, and Fairmont developing Raffles, Fairmont and Swissotel) and have the largest average number of rooms in the survey.
Mangalis is a new chain, launched in 2013, with its first hotel openings expected in 2015, in Conakry and Dakar. It is of note that Mangalis is achieving its very rapid growth by adopting an “asset-heavy” strategy, funding the development of nearly all of its hotels. This is in contrast with virtually every other chain in the survey, who are “asset-light”, seeking management agreements or, exceptionally, franchises and leases.

If, instead of looking at the chains, one looks at individual brands, Carlson Rezidor’s Radisson Blu brand occupies first position in terms of the number of hotels and rooms in its development pipeline. Its sister brand, Park Inn by Radisson, is also in the top 10, whilst the Hilton brand and its “little brother”, Hilton Garden Inn, occupy second and fifth positions respectively. Marriott and Starwood each have two brands in the top ten, with Starwood achieving particularly strong growth for both brands, Sheraton and Four Points.
Marriott leads in presenting a multi-brand offer, with 10 brands available to developers, including four brands included for the first time since its acquisition of Protea last year. This multi-brand approach has become more commonplace as Africa’s markets continue to develop and become mature enough for multiple brands, catering to markets across a broad spectrum. Having led their market entry with their flagship brands, typically at the upscale level, several of the chains are now introducing their midscale and budget brands.
Kempinski has been signing the biggest deals, with an average 324 rooms per hotel, double that of Park Inn, and of all the chains in the survey has the largest hotel project in sub-Saharan Africa, the 451-room Grand Hotel Oyala Kempinski in Equatorial Guinea's future new capital, Oyala.
2015 Hotel Chain Development Pipeline in Africa
Top 10 Brands by Number of Planned Hotels and Rooms
Rank by Hotels                                     Rank by Rooms
       Brand           Hotels                          Brand           Rooms    Change on 2014          Average Size - Rooms
1     Radisson Blu    22                      1       Radisson Blu    5,372           23.9%                   244
2     Hilton          16                      2       Hilton          4,965           5.1%            310
3     Marriott        11                      3       Marriott        2,316           9.5%                    211
4     Park Inn by Radisson    10              4       Sheraton        1,862           29.6%                   233
5     Hilton Garden Inn       9               5       Hilton Garden Inn 1,682         33.1%                   187
5=    Noom            9                       6       Kempinski       1,618           3.3%             324
7     Sheraton        8                       7       Park Inn by Radisson 1,581      -17.3%                  158
8     Four Points by Sheraton 7               8       Noom            1,332           12.9%              148
8=    Golden Tulip 7                          9       Four Points by Sheraton 1,250   37.5%                   179
8=    Mantis 7                                10      Courtyard by Marriott 1,154     0.0%                    289
The far larger average size of new hotels signed by Hilton, Kempinski and Marriott (Courtyard) is clear from Chart 5 below. Hilton’s and Courtyard’s largest deals are mostly in North Africa:

Hyatt and Kempinski are set to double their African presence through new deals signed, but in percentage terms it is the smaller chains (in terms of African presence) including those focusing purely on Africa, such as City Blue, Onomo and Azalaї, that have the highest percentage increase. Rotana, the Abu-Dhabi based chain, are making rapid inroads into the continent, with eight new hotels in the pipeline, as is Swiss International, with 16 new franchise deals, of which more than half are in Nigeria.
2015 Hotel Chain Development Pipelines in Africa
Top 10 Chains by Pipeline and % of Existing Hotels
                                     Existing                        Pipeline                Pipeline % of Existing
Rank  Company                 Hotels          Rooms           Hotels          Rooms         Hotels        Rooms
1     Swiss International     6               547             16              1,738           267%            318%
2     Rotana                  2               759             8               1,955           400%              258%
3     City Blue               4               69              2               135             50%             196%
4     Onomo                   3               343             4               525             133%      153%
5     Mantis Collection       23              284             7               430             30%             151%
6     Groupe Azalaї             7               700             6               949             86%       136%
7     Carlson Rezidor         25              5,763           32              6,953           128%            121%
8     Wyndham                 5               820             6               931             120%        114%
9     Hyatt                   4               1,111           7               1,121           175%            101%
10    Kempinski               9               1,656           5               1,618           56%             98%
Deals signed and properties under construction are two very different things. Carlson Rezidor, with 5,250 rooms on site, has more rooms actually under construction than Hilton Worldwide, which has 4,730, and therefore takes the top slot. Best Western enters the top ten, with 94 per cent of its pipeline rooms on site.
2015 Hotel Chain Development Pipelines in Africa
Top 10 Chains by Pipeline Status
Rank    Company                 Hotels          Total           Onsite Construction   Rank – All Deals 
1       Carlson Rezidor         32              6,953           5,250   76%            2↑
2     Hilton Worldwide        29              7,250           4,730   65%             1↓
3     Marriott                36              6,412           3,555   55%            3↔
4     Starwood                21              4,623           3,016   65%             4↔
5     Accor                   12              2,273           2,018   89%          6↑
6     Mangalis                17              2,329           1,204   52%             5↓
7     Best Western            12              1,115           1,050   94%             -↑
8     Mövenpick          4               1,001           1,001   100%            -↑
9     Kempinski               5               1,618           968     60%             9↔
10    IHG                     5               1,195           895     75%         -↑
The chart below shows the evolution of the number of rooms in the top five brands’ development pipelines from 2013 to 2015. Although from a small basis, Hilton Garden Inn has seen the largest absolute growth, from two hotels in 2013 to nine hotels in 2015.

Trevor Ward, Managing Director, W Hospitality Group, said: “These figures highlight two trends in African hotel development, first that the main opportunities lie in the midscale segment, and second that such hotels are “easier” to develop. Hilton, for example, have launched a modular build solution for upcoming Garden Inn projects in Africa, in conjunction with CIMC Modular Building Systems - modular guest rooms and hallways are built in the factory, ensuring guarantees of cost and quality, as well as enabling faster development.”
Matthew Weihs, Managing Director, Bench Events, which organises the Africa Hotel Investment Forum (AHIF), which attracts all the major international hotel investors in Africa, where this report will be discussed in detail, concluded: “The economics are compelling. The World Travel & Tourism Council is forecasting that growth of the industry in SSA will exceed 5% for every year of the next decade. That is much stronger than most Western countries and too tempting for the major hotel chains to ignore.”
AHIF is the preeminent gathering of international investors in hotels in Africa. It takes place in Addis Ababa on Sept 30 - Oct 1. For more information, go to
About W Hospitality Group
The W Hospitality Group, a founding member of Hotel Partners Africa, specialises in the provision of advisory services to the hotel, tourism and leisure industries, providing a full range of services to clients who have investments in the sector, or who are looking to enter them through development, acquisition or other means. In sub-Saharan Africa W Hospitality Group is regarded as the market leader due to the market and financial expertise of its staff, its worldwide knowledge, and its commitment to its clients. In Africa, W Hospitality Group has to date worked in 36 countries on the continent, from its Lagos and Addis Ababa offices.
The Africa Hotel Investment Forum (AHIF)
AHIF is the premier hotel investment conference in Africa, attracting many prominent international hotel owners, investors, financiers, management companies and their advisers. It is organised by Bench Events (, which is known for producing, alongside Questex Travel + Hospitality and MEED Events, several other top-level hotel conferences around the world including Berlin (IHIF), Dubai (AHIC), Istanbul (CATHIC) and Moscow (RHIC).
Sponsors of AHIF 2015 are: AccorHotels, Carlson Rezidor Hotel Group, Hilton Worldwide, Mangalis Hotel Group and Marriott International as Platinum Sponsors; Africa Export Import Bank, Areen Hospitality Interior Design, Calibra Hospitality Consultancy, Colliers International, DEG - Deutsche Investitions- und Entwicklungsgesellschaft mbH, France 24,Horwath HTL, Hotel Partners Africa, HTI, HVS, Hyatt, IDC Industrial Development Corporation, JLL, Kempinski, Mövenpick Hotels & Resorts, Onlime Business Communications, Starwood Hotels and Resorts , STR Global, SVA International, The Brand Co, The Great Hospitality and Wyndham Hotel Group as Gold Sponsors.
Further Information
For further information and high resolution images, please visit or contact:
- Anja Eckervogt, Tarsh Consulting, Email:, Tel: +44 (0) 3301222648, Cel: +44 (0) 7871 040 170.
- David Tarsh, Tarsh Consulting, Email:, Tel: +44 (0) 20 7602 5262, Cel: +44 (0) 7770 816 070.