Kenya tops East Africa in new hotel construction momentum

Kenya tops East Africa in new hotel construction momentum

New Hotels Kenya

Ethiopia and Kenya both have nearly 80 percent of their rooms under construction, closely followed by Tanzania at 77.5 percent. (Image Credit Marriot Hotel)

Kenya leads countries across East Africa in hotel construction projects that are actively progressing toward completion and near-term delivery signaling a strong performance of the hospitality industry.

According to industry statistics released ahead of the Future Hospitality Summit Africa, which will take place from 31 March to 1st April in Nairobi, Ethiopia and Kenya both have nearly 80 percent of their rooms under construction, closely followed by Tanzania at 77.5 percent.

"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 that this is where we are likely to see new supply coming through in the short to medium term,” notes Managing Director of W Hospitality Group, Trevor Ward.

Beyond overall scale, the pipeline status data reveal that execution momentum is currently strongest in East Africa. Ethiopia and Kenya both have nearly 80 percent of their rooms under construction, closely followed by Tanzania at 77.5 percent.

This compares with significantly lower proportions of projects under construction in markets such as Nigeria and Cape Verde. While North Africa dominates in overall volume, East Africa is leading in terms of projects actively progressing toward completion and near-term delivery.

As Trevor Ward comments, "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 that this is where we are likely to see new supply coming through in the short to medium term."

Across Africa, a record 123,846 rooms associated to 675 hotels and resorts are under development, represents year-on-year growth of 18.6 percent, the 2026 Hotel Chain Development Pipelines in Africa report by W Hospitality Group reveals.

While the overall pipeline reflects strong continental growth, the data show that development activity is increasingly concentrated in a small number of dominant markets. The top ten countries now account for 79 percent of total pipeline rooms and more than 75 percent of new signings, reinforcing their growing influence on Africa's hotel development trajectory.

Egypt leads with 45,984 rooms across 185 properties, more than one third of the entire African pipeline and over four times the number in second-placed Morocco, which has 10,606 rooms. 

Together, Egypt and Morocco account for over 45 percent of total pipeline rooms, and their share continues to grow due to the high volume of new signings. 

Statistics show that Egypt alone recorded 39 new deals last year and expects 33 openings in 2026, reinforcing its sustained development momentum.

At the operator level, development activity remains highly concentrated among a small number of global brands. Marriott International leads with 31,782 rooms, followed by Hilton and Accor, with the Big Five global chains – including IHG and Radisson Hotel Group – accounting for around 80 percent of all pipeline hotels and rooms across Africa.

Although more than 65,000 rooms are forecast to open in 2026 and 2027, historical actualisation rates suggest delivery may fall short of projections, highlighting the ongoing gap between ambition and execution.

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