Ethiopia has positioned itself as a leading hotel development market in East Africa, with nearly 80% of its planned hotel rooms under construction, according to a recent report. This high construction ratio places the country second only to Kenya on the continent. The momentum signals faster arrival of new hotel supply compared to other markets.
According to the 2026 Hotel Chain Development Pipelines in Africa report released by W Hospitality Group, Ethiopia features 5,964 rooms across 34 hotels in its development pipeline, ranking fifth among African countries by volume. Of these, 4,768 rooms—or 79.9%—are currently under construction, placing the country second behind Kenya's 79.5% in construction momentum among the continent's top markets.
“Ethiopia and Kenya both have nearly 80% of their rooms under construction, closely followed by Tanzania at 77.5%,” said Trevor Ward, Managing Director of W Hospitality Group. “What stands out this year is the strength of East Africa in terms of projects moving forward. Kenya, Ethiopia and Tanzania show some of the highest construction ratios on the continent, which suggests that this is where we are likely to see new supply coming through in the short to medium term.”
In comparison, Nigeria, with the third-largest pipeline of 8,480 rooms, has only 39.2% under construction. Egypt leads the continent with 45,984 pipeline rooms but is building just 51.4% of its capacity. Hotels in Ethiopia's pipeline average 175 rooms, indicating a focus on mid-to-large-scale properties.
Africa's overall hotel pipeline has reached a record 123,846 rooms in 675 properties, up 18.6% from the previous year. The top 10 countries now account for 79% of all pipeline rooms. Marriott International tops operators with 31,782 rooms, followed by Hilton and Accor, with the five largest chains comprising about 80% of pipeline hotels.
More than 65,000 rooms are projected to open in 2026 and 2027, though historical rates suggest actual deliveries may be lower. The report's findings will be explored further at the Future Hospitality Summit Africa, set for March 31 to April 1 in Nairobi.