Developers and investors are set to add up to 218 new hotel rooms to the Rwandan market, thanks to growing interest by international chains, a recent report by W Hospitality Group, which tracks development across the region, shows. According to the group’s Hotel Chain Development Pipelines in Africa 2025 report, international hotel brands are planning to open some 474 rooms in total, 46 per cent (218 rooms) of which are already under construction and could be completed by the end of this year. This is a slightly improved growth compared to 2024 where international chains had scheduled to add only 80 hotel rooms to Rwanda’s hospitality market. “What is driving development is the belief that the properties will be successful, therefore that they will attract sufficient demand to generate an acceptable return on investment,” Trevor J. Ward, CEO of W Hospitality Group told The New Times. This publication understands that the 474 planned hotel rooms will be operated under four international hotel brands. This includes Sheraton hotel with 198 rooms, and M Gallery hotel, an Accor brand at Century Park with 58 rooms. Kasada Capital Management is slated to open a 138-room facility under Mövenpick Hotels & Resorts, a Swiss hotel management brand, while Aleph Hospitality plans to take on the management of Zaria Court, an 80-room boutique hotel. Sheraton and M Gallery are not under construction yet, while Movenpick and Zaria Court are in advanced development and are likely to open this year, one source told The New Times. Zaria Court, a brainchild of Masai Ujiri, Vice-Chairman and President of NBA’s Toronto Raptors, was inaugurated in 2023. Financing for the project was arranged by Bank of Kigali, Helios Sports & Entertainment Group, and a consortium of local and international investors. “We’re still setting up the rooms, the outlets, everything is still being worked on, however, we have a soft opening in the second week of June and the official launch is planned in July,” Walid Choubana, Zaria Court manager revealed. ALSO READ: Umubano to become Movenpick Hotel after getting new owner Movenpick will operate the former Umubano Hotel. Kasada, a hospitality investment platform currently backed Qatar Investment Authority, acquired Umubano in 2022 as the government looked to divest state-owned assets and companies to the private sector. Appeal to int’l investors Rwanda does not appear among the top 10 countries by number of planned rooms or hotels in Africa. However, it has consistently emerged among the countries with increasing investor appeal. Rwanda, along with Djibouti, Ethiopia, Kenya, Somalia, South Sudan, Tanzania, and Uganda, are leading the East African region in terms of pipelines. The region as holds 28.8 per cent of the sub-Saharan Africa pipeline in terms of rooms, indicating a robust level of interest. Experts view sub-Saharan Africa as an exciting frontier, with Rwanda specifically mentioned among countries expected to generate strong pipelines in the coming years. Developers appreciate its growing tourism appeal, political stability, and business-friendly environment. Increasing confidence in local operators is opening new doors for franchise models in markets like Rwanda, helping international brands to enter efficiently. Valor Hospitality Partners and others highlight Rwanda as one of the sub-Saharan countries “expected to flourish,” with positive momentum anticipated for 2025 and beyond. According to Mike Devereux, Valor Hospitality’s Chief Development Officer, Africa has a longer cycle of decision making in hospitality investment and developments than any other global region. “But we are very patient, and expect countries such as Kenya, Namibia, Ghana, Rwanda, Zanzibar, Nigeria and South Africa (particularly Western Cape) to flourish and continue to generate a strong pipeline,” he said. Devereux observed that the hospitality industry is experiencing the growth of mixed-use developments with branded or unbranded residences, and a shift to third party management companies who have the capability of solving the combination of branded hotels with curated, independent residences and efficient operating systems. Africa performance As of early 2025, the hotel chains' development pipelines in Africa have reached a record 577 hotels and resorts, totaling 104,444 rooms. This is a 13.3 per cent increase over 2024. This growth significantly outpaces the single-digit pipeline expansion reported globally by the leading international chains. According to W Hospitality Group’s latest report, 59 chain hotels and resorts, offering around 9,500 rooms, opened in Africa in 2024. This is more than double the number of properties and nearly triple the number of rooms compared to 2023. However, this represents only 38 per cent of the hotels that had been scheduled to open, a considerable drop from the 75 per cent actualisation rate achieved in 2019. Looking ahead, the chains forecast the opening of 155 hotels in 2025, equivalent to nearly 27 per cent of the current pipeline, the same proportion as last year. By the end of 2026, they aim to have completed about half of the projects and room inventory currently in the pipeline. “In very broad terms, we have an average of 10 hotel deals per country. Globally, it's about 100 deals. So, there's a lot of work to do and a huge amount of opportunity there to come even close to what's happening anywhere else in the world,” Ward noted. While Africa may be bigger in size, population and economic fundamental, experts suggest that there is a need for more growth if the continent is to position itself as a hospitality powerhouse. At the moment, only South Africa, and more recently Egypt and Morocco, have registered massive growth in hospitality. That growth is attributed in part due to strong asset base that developers leverage to develop large pipelines. For Ward, these countries being positioned well within the Middle East gives that an edge over others. “There is greater interest from the Middle East, particularly in Egypt, where you have a lot of interest from the Gulf countries in financing projects. It's on their doorstep, it's the same language. Very similar culture, so they feel comfortable.”
