Ward: Nigeria, Egypt, Morocco, Ethiopia and Cape Verde top markets for future development

The hotel industry in Africa is experiencing a surge in revenues, with hotels achieving above-inflation increases for the first time in many years. Trevor Ward, the Managing Director of W Hospitality Group, emphasized the resilience and remarkable recovery of the hotel sector, particularly in Nigeria, which has bounced back from challenges such as Ebola and Covid-19. With occupancies in Lagos hotels reaching 82% in December last year, the demand has driven substantial price increases, allowing owners and managers to reduce discounting and achieve higher room rates. Ward highlighted Egypt, Nigeria, Morocco, Ethiopia, and Cape Verde as the top markets for future developments in the region. Despite global uncertainties, including the impact of 'Trump 2.0', African hotels have shown resilience to macroeconomic conditions and have outperformed in terms of occupancy compared to GDP performance. However, conflicts in countries like the Democratic Republic of Congo pose challenges for tourism and hotel development. In the face of alternative accommodation trends like Airbnb, Ward believes that hotels are not significantly threatened, especially in markets like Cape Town where leisure tourism dominates. The limited supply of new hotels entering the market presents a positive outlook for owners, though it contributes to higher prices for guests. Looking ahead, Ward suggests that hotels are a long-term investment, while standalone restaurants offer quicker returns and turnaround times. Overall, the hospitality sector in sub-Saharan Africa presents promising opportunities for investors, with a focus on markets like Nigeria, Egypt, Morocco, Ethiopia, and Cape Verde for future growth.