Africa’s hotel industry is on a growth trajectory, with revenue projected to soar from $10.60 billion in 2024 to $15.00 billion by 2029, reflecting an annual growth rate of 7.2%.

This promising forecast highlights the increasing demand for high-quality accommodations across the continent.

According to the market analysis, user penetration is expected to climb from 7.1% in 2024 to 10.2% by 2029, accompanied by a rise in the number of users to 147.40 million. “The growth trajectory underscores the untapped potential in Africa’s hospitality sector, particularly in urban and tourist-centric regions,” said an industry analyst.

Online sales are anticipated to play a dominant role, contributing 77% of total revenue by 2029. The average revenue per user (ARPU) is also expected to hit $115.50, underlining the increased spending power of travellers in the region.

Regional dynamics and key trends

Several African countries are emerging as hotspots for hotel development, with Egypt leading the way. The country’s revitalised hospitality sector, bolstered by new developments and renovations, is attracting both domestic and international tourists.

Safari lodges and luxury camps are gaining traction in East Africa, particularly in Kenya and Tanzania. These unique accommodations cater to the growing demand for experiential travel, blending comfort with the allure of nature.

Meanwhile, urban hubs such as Johannesburg and Lagos are experiencing a boom in business-focused hotels, driven by the rise in corporate travel.

North African nations like Morocco are also witnessing robust growth, thanks to their appeal as cultural and historical destinations. “Tourists are increasingly drawn to the blend of luxury resorts and traditional accommodations, such as Morocco’s riads,” noted a regional tourism expert.

Global context and competitive landscape

Despite the remarkable growth in Africa, the global hotels market continues to be dominated by the United States, which is expected to generate $111 billion in revenue in 2024. Other leading regions include China, Japan, and the United Kingdom.

Africa’s ability to compete on the global stage hinges on continued infrastructure investments, political stability, and foreign direct investment.

The influx of international hotel chains is transforming the landscape, introducing world-class standards to the continent’s hospitality industry.

With a shift towards online bookings and increasing ARPU, Africa’s hotels market is well-positioned for sustainable growth. As travellers seek unique experiences and high-quality services, the sector’s future appears bright.