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Africa News Thu, 18 Jun 2020

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Plans scrapped for hundreds of new African hotels

The hotel industry across Africa is expected to suffer a slowdown of as much as 40%, because of the coronavirus pandemic.

It is a complete change compared with the rosy picture the sector had painted in earlier forecasts for this year.

At the start of this year, accommodation groups planned to build 408 hotels in Africa, with about 78,000 rooms.

However, that expansion has been scaled back, with just 90 new hotels now planned.

But according to new analysis by the research group W Hospitality, at least half of these will be delayed.

Last year, 68 hotels were opened by major companies that control chains, which added 40% more capacity, compared to 2018.

W Hospitality says business has been affected by lockdowns, closed borders and airline shutdowns, which deterred tourists and therefore discouraged investment in new projects.

However, investors are not ready to check out yet, as some are taking a positive view of expansion by Marriot International, which plans to spend $2bn (£1.6bn) on new hotel projects in Africa over the next three years.

Source: bbc.com

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