Nigeria has slipped to third place in Africa’s 2025 hotel development pipeline, overtaken by Morocco, according to the latest “Hotel Chain Development Pipelines in Africa 2025” report released in March by W Hospitality Group.

The Lagos-based hospitality advisory firm revealed that Nigeria now has 48 projects and 7,320 planned rooms for 2025, dropping it from its previous second-place position.

Morocco surged ahead with 13 new hotel deals signed in 2024, more than double Nigeria’s five.

This significant jump secured Morocco’s second-place ranking, behind Egypt, which continues to dominate the continent’s hotel development landscape.

Egypt accounts for 32.5% of Africa’s total planned rooms in 2025, an increase from 28% the previous year, and four times the number of rooms planned in Morocco.

“Egypt dominates the African pipeline every year, with 32.5 per cent of the total rooms this year, up from 28 per cent last year, and four times the number of rooms in second-placed Morocco,” the report stated.

“Nigeria changed places with Morocco, coming in at third place, with only five deals signed in the former last year, and 13 in the latter.”

A detailed breakdown of Nigeria’s 2025 hotel pipeline shows that 61% of its planned rooms (4,468) remain in the pre-construction phase, while 39% (2,852 rooms) are currently under construction.

The report, which is the 17th edition of the annual survey, analyzed data from 50 international and regional hotel chains operating across Africa.

It recorded a total of 577 hotels and resorts with 104,444 rooms in the continent’s pipeline as of early 2025, a 13.3% increase over 2024 and significantly ahead of global growth trends.

While Nigeria’s ranking dropped, Lagos continues to lead hotel development in the country.

Marriott International tops the list with eight hotels and 1,228 rooms in the pipeline, driven by a strong local presence and a dedicated development executive based in the region.

Accor follows with five hotels, while Radisson Hotel Group and Wyndham Hotels & Resorts have three projects each. Hilton has two.

However, the capital city Abuja lags behind in actual development.

Of the 14 projects planned for Abuja, nine are still in the pre-planning phase, and the remaining five are moving slowly, making openings in 2025 unlikely.

This challenge in actualising deals isn’t unique to Nigeria.

Egypt, despite leading in planned rooms, managed to open just three of its 12 scheduled hotels in 2024, an actualisation rate of 25%.

Morocco fared better, opening 10 out of its 20 scheduled properties, reaching a 50% rate.

Across the continent, hotel development is showing signs of recovery.

In 2024, 59 chain hotels opened, adding roughly 9,500 rooms to Africa’s hospitality landscape.

Forecasts suggest 155 hotel openings in 2025, with about half the pipeline expected to be operational by the end of 2026.

W Hospitality noted that Africa’s hospitality sector continues to attract strong investor interest, with 125 new deals signed in 2024 alone, contributing an additional 21,000 rooms to the development pipeline.