Rwanda’s hospitality sector has grown in leaps and bounds. It has recovered from a series of shocks, including the Covid-19 pandemic that saw a number of hotel development projects stall. Developers and investors are set to add up to 218 new hotel rooms to the Rwandan market this year alone, 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. One of these establishments that are opening shop includes Zaria Court Hotel, set to open this month. The facility is managed by Aleph Hospitality, a hotel management firm with a portfolio of facilities across Africa and the Middle East. Aleph will also take over the management of Onomo Hotel starting September 1, 2025. The New Times’ Business Editor Julius Bizimungu spoke to Bani Haddad, Managing Director and Founder of Aleph Hospitality to understand what’s driving the growth and what needs to be done to address challenges the sector is still grappling with. Below are excerpts: How would you characterise the growth we’ve seen between 2023 and 2025? In one word: promising. Tourism in Africa is recovering after the Covid-19 slump, with forecasts predicting 134 million visitors by 2035, making it the second-fastest-growing tourism region after Asia Pacific. In 2023, Rwanda's tourism revenue rose by 36 per cent, surpassing pre-pandemic levels with a 124 per cent recovery rate. As the largest independent hotel management company in the Middle East and Africa, Aleph Hospitality has a robust pipeline of 15 hotels in Africa, including Zaria Court Hotel in Kigali, Rwanda, which is set to open in July 2025. There are several pipelines that international chains are planning to open this year. What would you say is driving investor interest in Rwanda and in the region? Hotel investor interest in Africa is driven by a combination of favourable demographic, economic, and policy trends. First, its growing population, where 60 per cent is under the age of 25, promises long-term expansion in urbanisation and domestic tourism. Secondly, the growth of the middle class will bring about a demand for quality hospitality offerings. Improved air connectivity across the continent facilitates both international and intra-regional travel, while evolving visa policies make destinations more accessible to global travellers. Moreover, governments in many African countries actively support the hospitality sector through tax incentives, creating a conducive environment for investments. What sets Africa apart is its vast array of untapped destinations. Many countries offer unique cultural and natural attractions that remain relatively unexplored, creating opportunities for pioneering developments. Furthermore, the region’s cultural diversity offers an authenticity and variety that differentiate it from more saturated markets. Lastly, the scarcity of quality accommodations means that investors can achieve higher returns compared to other regions in the world. Rwanda's political stability, safety, and improved infrastructure, including a better airport and roads, have made it an attractive destination for tourists and investors alike. The Visit Rwanda campaign has helped enhance the country's global profile, and the country’s positioning as a high-end, low-volume eco-tourism destination is attracting luxury hospitality brands. Besides being one of the cleanest and prettiest capitals in the world, Kigali is also emerging as Africa's most exciting food city, with innovative chefs and restaurants, enhancing the country's appeal to food enthusiast travellers. There seems to be a longer timeframe between signing of deals and opening in Africa. What describes this disconnect? In general, the delay in opening hotels in Africa can be attributed to financial and operational hurdleswhich both developers and operators often face, such as political and economic instability, lack of financial planning, and lack of qualified project management skills. For instance, events such as elections and currency devaluations can significantly disrupt cash flow and overall project progress. On the other hand, common issues include underestimation of the total project costs, and inability to secure financing in the early stages of the project. At the same time, not having the right expertise in managing the development from planning and design to execution often results in non-conformity, and time-consuming adjustments, with brand standards. Lack of proactivity and limited knowledge of the complexities of building a hotel compared to a residential building also contribute to delays. How can Africa attract more deals? Where should financing come from? For African hospitality to solidify its position as a premier global investment destination, several key factors need to be addressed. First, political stability is essential. A predictable and stable political environment fosters investor confidence and ensures long-term project viability. Governments across the continent must prioritise reforms that minimise disruption and create a foundation for sustainable economic growth. Second, improving administrative transparency and efficiency is critical, particularly in processes like land acquisition and development approvals. Simplified and streamlined procedures will reduce delays, lower costs, and improve the ease of doing business for investors, making the region more competitive globally. Third, reforms in hospitality financing are needed. Ensuring the availability of affordable financing, simplifying lending processes, and offering favourable interest rates will enable more projects to move forward, especially in underdeveloped regions where investment potential is high. Additionally, regional connectivity needs significant enhancement. While international air travel has improved, intra-African travel remains fragmented. Strengthening regional transportation networks, including airlines and overland routes, will unlock the potential of the burgeoning African regional tourism market, providing a solid demand base for hospitality ventures. Finally, safety and security must remain a priority. By addressing issues such as infrastructure security, crime prevention, and disaster preparedness, countries can enhance their appeal to both international and domestic travellers.
