The world’s largest hotel chains are behind the rising number of newly planned hotel and resort projects in Africa.

At the end of 2023, international hospitality chains had 524 hotels with over 92,000 rooms in their pipelines across 41 African countries, due to a 9.2% increase in new deals from the previous year. It’s the largest annual increase since 2018, according to W Hospitality Group, a consultancy that has tracked hotel projects in Africa for over a decade.

U.S. multinationals Marriott, Hilton, Radisson, and French chain Accor have the most newly commissioned hotel projects in Africa, to date, along with British chain IHG Hotels. The five companies account for two in three hotel projects across the continent, W Hospitality’s latest tally shows. These hospitality groups and 42 others have active deals in 41 African countries to build hotels or resorts. Resorts have become of particular interest with new deals increasing 32%. Zanzibar typified the interest in new resorts with a doubling of new signed projects over the past year.

But, broadly, Africa’s most sought-after destinations for new hotel projects are Egypt, Nigeria, Morocco, Ethiopia, and Cape Verde.

Hotel chains are key players in the global travel and tourism sector. In Africa, the sector is projected to grow 6.5% annually over the next decade, adding $350 billion to the continent’s gross domestic product, predicts industry body, World Travel and Tourism Council.

Multinational hotel companies are drawn to large African economies, especially if they have an existing tourism industry and the underlying infrastructure required to drive it.

However, conflict, high construction costs, and difficulty accessing capital can be limitations. “Development has slowed down, in part due to the increased cost of construction but also due to a more cautious investment climate,” Craig Seaman, chief executive of South African hospitality consulting firm Index Hotels, said in W Hospitality’s report.