Africa’s hospitality sector is experiencing a surge of investment and expansion with several major hotel groups announcing landmark deals and ambitious growth plans at the Future Hospitality Summit in Cape Town this week.
Among them, four leading players unveiled agreements that signal growing confidence in the continent’s tourism sector, including what is being described as the region’s largest hotel portfolio management deal.
African Hotel Development, owner of the ONOMO brand, announced it is handing over the management of 26 hotels (five still under construction) across 15 countries to Dubai-based Aleph Hospitality. Starting September 1, Aleph Hospitality will manage the hotels representing 3 400 rooms across South Africa, Morocco, Tanzania, Nigeria, Rwanda, Côte d’Ivoire and more.
Bani Haddad, Founder and Managing Director of Aleph Hospitality, said the deal allows the group to realise a goal, set a decade ago, to operate 50 hotels by the end of 2025.
Neil George, Partner and Executive Director at Aleph Hospitality, said the deal is “the largest ever transition from a managed to franchised portfolio on the continent”.
“This is a huge, huge deal for us at Aleph but, more importantly, it’s a milestone for our industry,” he said.
Aleph Hospitality will be opening four new regional offices including one in Cape Town to manage its South African portfolio, which consists of three Cape Town hotels and one each in Johannesburg and Durban. The other three offices will be in Nairobi, Casablanca and Abidjan.
“We are not doing remote control management, which is something we are allergic to. We’re on the ground and provide the portfolio with the kind of support and management that they deserve,” George said.
Julien Renaud, CEO of African Hotel Development, said the deal forms part of the group’s decision to separate its operations from ownership and brand development.
“When it comes to brand development, we are super ambitious and want to double our portfolio over the next five years. Aleph plays a great role in this, having to take over operations, which is basically the guest experience,” he said.
Hilton to triple African presence
Meanwhile, Hilton has announced it will be tripling its presence in Africa to more than 160 hotels with plans to operate more than 100 new hotels on the continent over the next few years. Among them are its entry into Angola with three property signings representing over 700 rooms set to open by 2028.
This includes signings in Nigeria and Ghana in West Africa and a re-entry into the Tanzanian market as well as signings in Ethiopia, East Africa. North Africa will see the bulk of the investment.
Marriott announces pipeline
Marriott International has also announced a pipeline of over 50 new properties and more than 9 000 rooms across Africa by 2027. The expansion will include entry into five new markets including Cabo Verde, Côte d’Ivoire, Democratic Republic of the Congo, Madagascar and Mauritania. It will also significantly scale operations in growth hotspots such as Egypt, Kenya, Tanzania, Nigeria and Morocco.
“We are witnessing a transformation of Africa’s tourism sector, driven by visionary government agendas, substantial infrastructure development, enhanced regional and international connectivity, and diversified travel experiences, which are all laying the foundation for a thriving hospitality sector,” said Jerome Briet, Chief Development Officer: Europe, Middle East and Africa at Marriott International.
The company said, in a statement, it is seeing strong growth in North and East Africa, which combined account for more than 60% of the company’s additions by 2027.
Valor enters West Africa
Hotel management company Valor Hospitality has announced its entry into the West African market with two new hotel signings in Nigeria and Senegal. They represent a combined investment of more than R540 million.
Both hotels are franchise agreements with IHG Hotels & Resorts and will be fully managed by Valor, extending its African portfolio to 15 properties.
Michael Pownall, Valor’s Co-Founder and Managing Partner, said the deals reflect “an incredible frontier for the adoption of fully integrated management services” and underscore the company’s commitment to enhancing operations and guest experiences across the continent.
