By Wael Hossam El Din 

Egypt has once again topped Africa’s hotel chain development pipeline for 2025, with 143 hotels and nearly 34,000 rooms under development — a significant rise from 109 hotels and around 26,000 rooms recorded in 2024. The country now accounts for 32.5% of all hotel rooms being developed across the continent, according to the latest W Hospitality Group’s Hotel Chain Development Pipelines in Africa report. Egypt remains well ahead of second-placed Morocco, which has 58 hotels and 8,600 rooms in the pipeline.

The country is home to five of the 10 largest hotels currently under development in Africa, with Egypt’s average hotel project size at 237 rooms — markedly higher than the continental average of 181 rooms.

A Closer Look at the Data

The W Hospitality Group report compiles data submitted earlier this year by 50 regional and international hotel chains, representing 145 brands with signed, legally binding agreements across 54 African countries, including North Africa, sub-Saharan Africa, and the Indian Ocean islands. The analysis dissects hotel pipeline activity by region, country, city, chain, and brand, differentiating between projects still on paper and those under active or suspended construction.

Egypt’s urban hospitality sector was particularly highlighted for its growth prospects, with demand accelerating for developments that combine hotels with branded residences, retail outlets, and conference facilities, according to Accor Chief Development Officer Maya Ziadeh. “This growth is further propelled by leisure destinations, driven by coastal tourism and well-established resort destinations like Sharm El Sheikh, Hurghada, and Marsa Alam, reinforcing Egypt’s position as a key player in the regional hospitality sector,” she added.

Greater Cairo Leads the Way

Greater Cairo boasts the largest hotel development pipeline of any African city, with nearly 17,800 rooms in development — accounting for around 17% of the continent’s total pipeline. The capital’s growth is being fueled by major players such as Accor, Marriott, Hilton, and IHG, who together have 67 projects representing 14,600 rooms.

Around 30% of these rooms are slated to open in 2024 and 2025, with Barceló, Radisson, and Mandarin Oriental — which is redeveloping the historic Shepheard Hotel — among those expected to roll out new properties. Hilton is also set to introduce its lifestyle brands, Curio Collection and Tapestry Collection, to Egypt, as part of its plans to more than triple its presence and surpass 40 properties in the coming years, Hilton’s Carlos Khneisser said.

Flagship Openings

Hilton is gearing up to launch the continent’s first Signia by Hilton Hotel and Signia Residence in West Cairo’s Skywalk development. The project will feature 200 hotel rooms, restaurants, a spa, a gym, and one of Cairo’s largest meeting venues spanning 5,000 sqm. The adjoining Signia Residence will add another 200 serviced units.

Sharm El Sheikh’s Expanding Footprint

Sharm El Sheikh punches above its weight, ranking among Africa’s top resort destinations with the second-largest hotel pipeline among surveyed cities, comprising 4,200 rooms. Accor dominates the city’s development activity, holding eight out of nine planned projects and accounting for 96% of rooms, through brands such as Rixos, Fairmont, and MGallery. Hilton is developing the only other project in the area, under its Curio Collection brand.

Other coastal hotspots are also seeing a rise in activity, with Ain Sokhna boasting a pipeline of 2,000 rooms, followed by the North Coast with 1,500 rooms. Marsa Alam ranks among Africa’s leading resort development markets with 1,400 rooms, while Hurghada has 820 rooms under development.

Foreign Investment Eyes Coastal Destinations

Foreign investors are increasingly turning their attention to the North Coast and the Red Sea. Kuwait is reportedly planning investments across both regions, while Qatar is said to be exploring opportunities in the North Coast’s tourism sector. Leading the surge is the highly anticipated USD 35 bn Ras El Hekma project, spearheaded by ADQ, which will develop a next-generation city spanning 170 mn sqm. UAE-based Horizon Egypt Developments is also reportedly looking to acquire 180 acres on the North Coast to build an integrated tourism complex.

Government Targets Ambitious Tourism Growth

Egypt aims to double annual tourist numbers from 15.7 mn last year to 30 million by 2030. The country also plans to expand hotel room capacity to 500,000, up from 228,000 currently. To support this, the government has launched a EGP 50 bn subsidized loan program aimed at helping tourism operators expand their facilities, with a particular focus on Luxor, Aswan, Greater Cairo, the Red Sea, and South Sinai governorates.

Challenges Ahead

Despite the strong pipeline, challenges remain. The report highlights that Egypt’s hotel development sector is still relatively young, with fewer than half of rooms currently under construction, reflecting many recent signings and long lead times to completion. In 2024, only three out of the 12 scheduled hotels opened, representing an actualization rate of just 25% — well below the continental average of 38%. However, there is optimism, with 154 hotels scheduled to open across Egypt this year alone.

The Broader African Picture

Zooming out, hotel chains across Africa are developing 577 properties with more than 104,000 rooms — a 13.3% year-on-year increase. North Africa recorded the fastest growth rate in 2025 at 23% year-on-year, while sub-Saharan Africa grew by a more modest 6%.

Last year was a record year for hotel openings across the continent, with 59 new hotels opening in 2024 — more than double the number opened in 2023. It marks the first time since the pandemic that delivery rates have improved, signaling enhanced project financing and greater confidence among developers.