Nigeria Ranks Among Best Hotel Investment Destination

On Jan 17, 2025

Nigeria has emerged as one of the world’s leading destinations for hotel investments, due to its growing economy, expanding middle class, and increasing demand for hospitality services. Its strategic location as a gateway to West Africa and its vibrant cultural tourism sector make it attractive to international investors. Key cities like Lagos, Abuja, and Port Harcourt attract global hotel chains and operators.

Nigeria secured the second position in global hotel investment rankings, propelled by nine new hotel deals signed in 2023. Leading international hotel chains, including Hilton and Radisson, each with three deals, Marriott International with two, and Leva Hotels with one, have demonstrated growing confidence in Nigeria’s expanding hospitality sector. This surge in investments highlights the country’s potential as a key player in the global hotel industry.

According to a report published by W Hospitality Group, covers all 54 African countries, including North Africa (Morocco, Algeria, Tunisia, Libya, and Egypt), sub-Saharan Africa, and Indian Ocean islands (Seychelles, Mauritius, Comoros, and Madagascar).

Rank	Country	Hotels	Rooms	Average Size (Rooms)
1	Egypt	109	26,241	241
2	Nigeria	50	7,622	152
3	Morocco	52	7,169	138
4	Ethiopia	31	5,128	165
5	Cape Verde	16	5,056	316
6	Tunisia	18	4,121	229
7	Kenya	31	4,268	138
8	South Africa	22	3,427	156
9	Algeria	13	2,603	200
10	Ghana	19	2,568	135
Total	–	361	68,203	189

It offers consistent, reliable, and comparable data on hotel development pipelines in Africa, capturing the activities of hotel chains already operating on the continent and those looking to enter for the first time.

The report that the hotel chains have signed deals in 41 African countries. West Africa takes the lead, with pipeline development activity in 14 of the 18 countries in the region.

Other countries at the top of the hotel development rankings include Morocco with 7,169 rooms, Ethiopia with 5,128 rooms, Cape Verde with 5,056 rooms, and Tunisia with 4,121 rooms.

Kenya, South Africa, Algeria, and Ghana round out the top 10 countries by the number of rooms in the pipeline.

These countries represent significant growth in Africa’s hotel development sector.

Business Insider Africa