The rise of international brand hotels in African cities is a testament to the East African region’s burgeoning appeal even as businesses navigate a unique set of challenges that come with operating in these dynamic urban environments.

The latest news is that Tanzania is set to make history as the first sub-Saharan country to introduce the Ritz Carlton, one of the world’s prominent hospitality brands. Although it’s not known who the international brand has partnered with at this stage, this partnership not only elevates the country’s tourism profile but also solidifies its position on the international stage.

A recent survey by Lagos-based W Hospitality Group and the Africa Hospitality Investment Forum indicates that the West, Southern and Indian sub-regions are leading in the number of hotel deals signed. Kenya is still among the leading countries with a total of 4 268 rooms in the pipeline.

Globally, International brands such as Accor opened nearly 300 rooms and Hilton 400 in the past year – 6% were in Africa, split equally between North Africa and sub-Saharan Africa.

Radisson Hotel Group has launched seven additional hotels on the continent, adding over 1 200 hotel rooms to its African portfolio with its debut in Tanzania within the first half of 2024. In Ethiopia, the group is set to open a 120-room hotel, which will be its third hotel in the country. Situated in Addis Ababa, this will introduce the Park Inn by Radisson brand to the country.

“The seven new hotels align with our expansion strategy, demonstrating significant growth in key African markets such as Morocco, Nigeria, Tunisia and Ethiopia as well as our highly anticipated debut in Tanzania. These hotels also highlight our conversion strategy and our commitment to diversifying our portfolio by introducing new brands and cementing our presence in these important markets,” says Elie Younes, Executive Vice President and Global Chief Development Officer at Radisson Hotel Group.

Growth in arrivals

In recent years, African cities like Nairobi, Cape Town, Addis Ababa and Kigali have experienced notable improvements in tourism arrivals, especially within the MICE sector. This growth is significantly attributed to the strategic increase in flight connectivity, making these destinations more accessible to international and regional travellers and event organisers.

World-class conference facilities such as the Cape Town International Convention Centre and the Kigali Convention Centre have hosted popular leisure and business events, festivals and conferences.

Ethiopia’s cultural appeal is highlighted by its UNESCO world heritage sites and lively traditional festivals, coffee traditions and music, making it a distinctive travel destination.

The country’s travel sector has witnessed remarkable growth over the past decade with its tourist arrivals in 2024 set to increase by approximately 12%. Ongoing expansion of tourist infrastructure will increase access to Ethiopia’s unique natural beauty for more international guests, helping to spread the “tourism dividend” to additional communities.

“These efforts not only boost tourism numbers but also contribute significantly to local economies, showcasing the potential of African cities on the global stage,” says Dorcas Dlamini Mbele, Area Commercial Director: Sub-Saharan Africa, Marriott International.

Marriott International’s current portfolio in Africa encompasses 145 properties and more than 25 800 rooms across 21 countries and 21 brands including Protea Hotels by Marriott, Marriott Hotels, Sheraton and Four Points by Sheraton.

“Marriott International has long believed in the importance of meeting travellers’ needs – for business, large meetings and events or leisure – and has focused on having the right product, in the right place, at the right price point for our guests across all trip purposes. Today, we see strong owner interest in our brands, backed by our combined loyalty programme, the collective strength of our global platform and our highly experienced local teams,” says Dlamini Mbele.

Africa’s economic growth, the rising middle class and rapid urbanisation have created demand for travel and quality lodging, which are some of the factors prompting the brand to increase its investments in the continent, she adds.

“We continue to see opportunities to expand in major gateway cities, commercial centres as well as resort and safari destinations across Africa while catering to the region’s ever-changing and evolving markets through our diverse range of extraordinary brands.”

Marriott recently announced the anticipated addition of nine properties in Ethiopia. The company’s expansion plans include the Westin and Le Méridien brands debut in the country – each offering premium experiences for visitors to the capital. Additionally, Marriott plans to grow its Four Points by Sheraton brand in Addis Ababa, Bahir Dar, Hawassa, Jimma and Mekelle to address rising demand for reliable and affordable accommodation.

The recent opening of JW Marriott Nairobi Hotel and the JW Marriott Masai Mara Lodge is also testament to the confidence that the brand has in the East African region.

“As JW Marriott expands its presence in Africa, the brand enriches the region with a legacy of luxurious hospitality, seamlessly weaving together its dedication to holistic well-being and fostering meaningful connections throughout the continent,” says Helen Leighton, Vice President: Luxury Brands & Communications, Marriott International Europe, Middle East & Africa.

Investment by Thai company

Westlands is a social and entertainment hotspot within close proximity to Nairobi’s central business district and a number of top local attractions including Nairobi National Museum, Karen Blixen Museum, Maasai Market, Bomas of Kenya and Karura Forest (an urban upland forest on the outskirts of Nairobi).

For Thailand’s Dusit International, its investment in Africa, particularly in Cairo and Nairobi, is driven by a vision to expand its global footprint and deliver exceptional hospitality experiences in emerging markets.

“Cairo and Nairobi are vibrant cities with growing economies and dynamic tourism industries, offering immense potential for growth. By establishing our presence in these cities, we aim to bring our unique blend of Thai-inspired gracious hospitality and international standards to new regions, contributing to the local economy and providing memorable experiences for local and international guests,” explains Lionel Formento, GM of Dusit Princess Hotel Residence Nairobi.

The brand is banking on its strategic location, versatile meeting spaces, fitness centre and the Aviary Rooftop Cocktail Lounge providing guests with a comprehensive hospitality experience that caters to business and leisure travellers.

Competitive landscape

One of the main challenges that city hotels face is the competitive landscape with numerous international and local brands vying for market share.

“Ensuring consistent service quality and maintaining high standards amid the dynamic and fast-paced urban environment can be demanding. However, our dedicated team, strategic planning and commitment to excellence enable us to navigate these challenges effectively. By continuously innovating and adapting to market trends, we strive to exceed guest expectations and maintain our competitive edge,” says Formento.

The brand has opted for hybrid hospitality in Nairobi. “By offering short-term and extended-stay options, we cater to a wide range of travellers including business executives, tourists and long-term residents. This flexibility allows us to meet varying guest requirements and enhances our appeal in a competitive market,” explains Formento.

While specific future investments are still under strategic review, Dusit International is keen on exploring opportunities in other burgeoning African cities that show strong economic growth and tourism potential like Cape Town, Accra and Lagos. This is due to these cities’ robust business environments, rich cultural heritage and increasing demand for high-quality hospitality services.