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Nigeria Drops to 3rd in Africa’s 2025 Hotel Development Pipeline

Nigeria has fallen to third place in Africa’s 2025 hotel development pipeline, overtaken by Morocco, according to the W Hospitality Group.
Nigeria Hotel Development

Nigeria has slipped to third place in Africa’s 2025 hotel development pipeline, with 48 projects and 7,320 rooms currently planned, according to the Hotel Chain Development Pipelines in Africa 2025 report by W Hospitality Group, a Lagos-based firm focused on the hospitality and tourism industry across the continent.

Previously ranked second, Nigeria was surpassed by Morocco, which signed 13 hotel deals in 2024, more than double the five deals recorded in Nigeria. Morocco’s aggressive expansion pushed it ahead, while Egypt retained the top spot, accounting for 32.5% of Africa’s total planned rooms a figure four times greater than Morocco’s.

“Nigeria changed places with Morocco, coming in at third place, with only five deals signed in the former last year, and 13 in the latter,” the report highlighted.

Despite the slip, Nigeria still commands a sizable share of the continent’s hospitality development, particularly through major international hotel chains targeting key urban centers.

Out of the 48 hotel projects planned in Nigeria:

  • 61% (4,468 rooms) are still in the pre-construction phase
  • 39% (2,852 rooms) are currently under construction

This breakdown reflects ongoing challenges with project execution, a common trend across Africa’s hospitality industry. Though pipelines are robust on paper, many projects face delays due to financing, regulatory bottlenecks, and infrastructural issues.

Lagos continues to be the epicenter of Nigeria’s hotel boom. Marriott International is the most prominent player, with eight hotels and 1,228 rooms in the pipeline. The group’s regional presence and on-ground development teams have enabled consistent progress.

Following Marriott:

  • Accor: 5 hotels
  • Radisson Hotel Group: 3 hotels
  • Wyndham Hotels & Resorts: 3 hotels
  • Hilton: 2 hotels

In contrast, Abuja lags behind. Of the 14 planned projects in the capital, nine remain in the pre-planning stage, while the others show slow development progress—making a 2025 opening unlikely.

The W Hospitality report, now in its 17th edition, surveyed 50 international and regional chains and recorded:

  • 577 hotel and resort projects
  • 104,444 planned rooms (up 13.3% from 2024)
  • 125 new deals in 2024 alone, adding 21,000 rooms to the pipeline

Despite strong numbers, actualisation remains a hurdle:

  • Egypt opened only 3 of 12 scheduled hotels in 2024 (25% rate)
  • Morocco fared better, opening 10 of 20 (50% rate)

Across Africa, 59 chain hotels with about 9,500 rooms opened in 2024, reflecting a post-pandemic recovery in the hospitality sector. Projections for 2025 suggest 155 hotel openings, with half of the current pipeline expected to be operational by 2026.

While Nigeria remains a major player in African hotel development, the drop in new deals signals a need for renewed investor confidence, streamlined approvals, and localised strategies to speed up project execution. Lagos continues to attract global brands, but unless Abuja and other cities gain similar momentum, Nigeria risks falling further behind in the coming years.

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