Addis ababa: Ethiopia is emerging as one of Africa's fastest-growing hotel development markets, with nearly 6,000 rooms in the pipeline and the highest share of projects already under construction anywhere on the continent.According to Ethiopian News Agency, the 2026 Hotel Chain Development Pipelines in Africa Report by W Hospitality Group indicates that Ethiopia currently has 5,964 rooms across 34 hotels under development. While this places the country fifth in Africa by total pipeline size, it leads the continent in construction momentum, with 79.9 percent of its pipeline rooms already being built.The figure far exceeds most major hotel markets on the continent. Kenya follows closely with 79.5 percent of projects under construction, while Tanzania stands at 77.5 percent, South Africa at 67.2 percent, and Nigeria significantly lower at 39.2 percent.Across Africa, hotel development activity has reached a record high of 123,846 rooms in 675 hotels, representing an 18.6 percent year-on-year increase, acco rding to the report. In terms of total pipeline size, Egypt leads the continent with 45,984 rooms, followed by Morocco with 10,606, Nigeria with 8,480, and Kenya with 6,190 rooms.Trevor Ward, Managing Director of W Hospitality Group, noted East Africa's growing strength in converting hotel plans into active construction projects. "What stands out this year is the strength of East Africa in terms of projects moving forward. Kenya, Ethiopia, and Tanzania show some of the highest construction ratios on the continent, which suggests this is where we are likely to see new hotel supply coming through in the short to medium term," Ward said.Much of Ethiopia's hotel boom is linked to preparations for the 2027 United Nations climate summit, COP32, which will be hosted in Addis Ababa and is expected to attract more than 80,000 international delegates. City officials say the capital is undertaking a major expansion of its hospitality capacity. Addis Ababa currently has about 25,000 accommodation beds, but authoritie s aim to increase this to more than 80,000 beds through new hotel construction and upgrades to existing hotels, guesthouses, and serviced apartments.Mayor Adanech Abiebie emphasized the expansion's importance in ensuring the city can host one of the world's largest diplomatic gatherings. Private investors are also accelerating hotel development ahead of COP32, with MIDROC Investment Group among the key players expanding Ethiopia's hospitality sector.CEO Jamal Ahmed stated that the company plans to provide around 1,500 hotel beds for COP32 participants through new developments, acquisitions, and refurbishments. Among its flagship projects is a new Sheraton-branded hotel within the compound of the iconic Sheraton Addis. Together with the renovation of the existing 294-room Sheraton Addis, the investment is estimated at 116 million US dollars.MIDROC has also acquired the historic Wabe Shebelle Hotel near Mexico Square. The property will be renovated and rebranded under Marriott International's Autograph Co llection, a global portfolio of boutique hotels. Meanwhile, construction is expected to resume on the long-delayed African Union Westin Hotel Project, which authorities hope to complete before COP32.Additional projects include Moxy by Marriott and Four Points by Sheraton hotels in the Mohammadi Residential Village development, along with new Four Points properties planned in Jimma and other regional cities. Across Africa, Marriott International leads the continent's hotel pipeline with 31,782 rooms, followed by Hilton and Accor.Together with IHG Hotels and Resorts and Radisson Hotel Group, the five largest international hotel groups account for around 80 percent of all hotel pipeline projects across Africa. W Hospitality Group projects that more than 65,000 hotel rooms could open across Africa in 2026 and 2027, though it cautions that many projects may face delays, highlighting the persistent gap between announced developments and completed hotels.
Friday, May 01, 2026