Ethiopia is emerging as one of Africa’s most active hotel development markets, with nearly 80 percent of its pipeline rooms already under construction, the highest ratio on the continent, as the country accelerates preparations to host the COP32 climate conference in 2027.

According to the 2026 Hotel Chain Development Pipelines in Africa report by W Hospitality Group, Africa’s hotel development pipeline has reached a record 123,846 rooms across 675 hotels, marking an 18.6 percent year-on-year increase.

Ethiopia ranks fifth in Africa with 5,964 rooms across 34 hotels in the pipeline, behind Egypt (45,984 rooms), Morocco (10,606), Nigeria (8,480), and Kenya (6,190).

What distinguishes Ethiopia, however, is the speed at which projects are moving forward. The report shows that 79.9 percent of Ethiopia’s pipeline rooms are currently under construction, the highest share in Africa. Kenya follows closely at 79.5 percent, while Tanzania (77.5 percent), South Africa (67.2 percent), and Nigeria (39.2 percent) trail behind.

Trevor Ward, Managing Director of W Hospitality Group, said East Africa is showing particularly strong momentum in turning hotel plans into active projects.

“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,” he said.

The surge in hotel construction aligns with Ethiopia’s preparations to host COP32 in Addis Ababa in 2027, an event expected to attract more than 80,000 international delegates. In January, Addis Ababa Mayor Adanech Abebe said the city plans to increase accommodation capacity from 25,000 to more than 80,000 beds through new hotel developments and upgrades to existing hotels, guesthouses, and apartments.

MIDROC Investment Group is among the private players driving this expansion. CEO Jamal Ahmed said the group is mobilizing resources to provide around 1,500 hotel beds for COP32 participants through a combination of new developments, refurbishments, and acquisitions.

Among the key projects is a new Sheraton-branded property within the existing Sheraton Addis compound. Together with the refurbishment of the landmark 294-room Sheraton Addis, the project is estimated to cost $116 million.

MIDROC has also acquired the historic Wabe Shebelle Hotel near Mexico Square and plans to renovate it and bring it under Marriott International’s Autograph Collection, a global portfolio of boutique hotels. Meanwhile, work is resuming on the long-delayed African Union Westin Hotel Project, which is expected to be completed before COP32.

Other developments include a Moxy by Marriott and a Four Points by Sheraton in Mohammadi Residential Village, as well as additional Four Points properties planned for Jimma and other regional cities.

At the continental level, Marriott International leads Africa’s hotel pipeline with 31,782 rooms, followed by Hilton and Accor. The five largest global hotel groups, Marriott, Hilton, Accor, IHG, and Radisson Hotel Group, account for roughly 80 percent of all pipeline hotels and rooms across the continent.

W Hospitality Group projects that more than 65,000 rooms could open across Africa in 2026 and 2027. However, the firm cautioned that actual delivery may fall short of projections, reflecting the persistent gap between announced projects and completed developments.