Hilton bets big on Africa’s hospitality boom as rising middle class travels fuel demand – Khneisser

Carlos Khneisser, Hilton’s Chief Development Officer for MEA, shares the key drivers behind Africa’s 13% year-on-year hotel pipeline growth. Beyond investor appetite, rising middle-class travel, youthful demographics, visa reforms, and infrastructure upgrades are fueling demand across the continent.

Markets like Egypt, Nigeria, and Morocco stand out for their strong domestic demand and government-backed tourism strategies. Hilton is not only expanding its footprint across 13 brands but also prioritising inclusive growth, job creation, and local partnerships. With over 100 new hotels in the pipeline, the company is set to play a leading role in shaping Africa’s evolving hospitality landscape. BusinessDay’s Chinwe Michael brings excerpts.

Africa’s hotel pipeline has grown 13% year-on-year. What are the deeper socioeconomic factors enabling this momentum, beyond just investor appetite?

We continue to see huge opportunities for expanding and diversifying our footprint in Africa, where we plan to nearly triple our portfolio to more than 160 hotels across 13 brands. This growth is being driven by a range of factors, including ambitious tourism policies in key markets and a growing middle class which is expected to increase by more than 40% across the continent by 2030. In addition, Africa boasts the world’s youngest population, and by 2035, there will be more young Africans entering the workforce each year than in the rest of the world combined, leading to more disposable income, growing travel aspirations, and increased demand for authentic hospitality experiences.

In which markets are we seeing hospitality developments go hand-in-hand with major infrastructure investments, airports, transport corridors, and energy systems?

We are seeing hospitality growth and infrastructure and network development go hand-in-hand in several key markets. In South Africa, for instance, improved air connectivity, including the new Perth-Johannesburg direct route, digitised visa systems, and preparations to host the G20 in Sandton are boosting tourism and driving broader urban renewal. Angola is also making bold moves through visa reforms and long-term strategies aimed at increasing tourism’s contribution to GDP. In Nigeria, the launch of the Creative and Tourism Infrastructure Corporation (CTIC) signals a strong commitment to embedding hospitality within wider economic and development plans.

In North Africa, Egypt is scaling up its hotel capacity, targeting 30 million tourists annually by 2028, with the Grand Egyptian Museum serving as a flagship development. Meanwhile, Morocco’s record-breaking tourism growth and upcoming role as a co-host of the 2030 FIFA World Cup is being supported by improvements in air connectivity and the promotion of emerging destinations.

What distinguishes Africa’s hotel development pipeline from other global growth regions in your view?

The diversity of our pipeline in Africa sets it apart. From resorts to city centre hotels, our pipeline includes a range of hotels to suit different guests. To look at this more closely, over 50% of our pipeline falls under the full-service category (Hilton and DoubleTree by Hilton brands), while the mid-scale segment (Hampton by Hilton and Hilton Garden Inn) represents close to a quarter of our pipeline. We are also set to introduce new lifestyle hotels with properties in the pipeline under our Canopy by Hilton and Curio Collection by Hilton brands, and we’re looking to bring our Tempo by Hilton brand to Africa, as we see great opportunities for this elevated and approachable lifestyle brand on the continent.

This diversity in our portfolio reflects the diversity of traveler needs and the experiences that the continent offers. For example, in the Seychelles, where we operate six properties across five of our brands – the majority of guests are leisure travelers drawn to the archipelago’s beaches, ocean, and culture.

In contrast, in countries such as Nigeria, business travel is more prevalent, while South Africa attracts both groups depending on the destination. Take our newly opened Canopy by Hilton Cape Town Longkloof, for example – a lifestyle hotel that caters to both groups with its prime location off Kloof Street and its vibrant restaurant and bar, Ongetem.

How does Hilton assess risk and long-term opportunity in regions where policy frameworks may still be evolving, and what signals would you look for in a market to know it’s ready for transformative hospitality investment, even before the numbers show it?

Hilton has been operating in Africa for over 65 years—our hotel agreements are designed for the long term, and we are proud to operate longstanding hotels such as Transcorp Hilton Abuja, which has been open for close to 40 years. We recently announced our plans to debut in Madagascar, Benin, and Angola – countries in which governments and tourism ministries are actively undertaking initiatives to attract investors to the tourism sector. For example, in Angola, the government has issued a visa exemption decree for over 100 countries, easing access for visitors – and in Benin, the government aims to boost the sector’s share of GDP by 2030 and attract two million visitors annually. In Madagascar, air connectivity has seen significant improvements, with Emirates recently announcing four weekly flights between Dubai and Antananarivo.

These signals represent an exciting time in the development of these destinations, and as a global hospitality company, we look forward to playing our role in elevating them on the world stage – including to our 218 million+ Hilton Honors members.

Egypt, Nigeria, and Morocco lead in project volume. What differentiates these markets from others? Is it regulatory reform, domestic demand, diaspora travel, or something else?

Each market has its unique advantages. For example, in Egypt, the tourism industry is well established, and in 2024, it contributed 8.5% to the country’s GDP. Meanwhile, Morocco, with its melting pot of cultures and variety of experiences, sees international business driven to various areas across the country. Finally, in Abuja, we have seen strong domestic demand, and our success has provided a springboard for us to expand into Nigeria’s secondary cities.

There’s been growing conversation around ‘inclusive growth’. What’s Hilton’s experience in ensuring local value capture, not just foreign-led capital flows?

At Hilton, the key for us is working with the right partners in the right location. Whether our owners are local or foreign, we work hand-in-hand with them, building a lasting relationship. As a result, in the Middle East and Africa, 65% of our new deals are with existing owners.

With Africa’s population projected to double by 2050, what does the hospitality sector need to do today to meaningfully absorb and train future talent?

The hospitality industry plays a key role in creating opportunities for Africa’s growing population, and at Hilton, we anticipate that our development pipeline across the continent will create around 18,000 new jobs.

This means deepening partnerships with regional training institutions such as the HTA School of Culinary Arts in Durban. We are also a founding member of the Future Leaders Challenge, a platform that identifies and develops the next generation of hospitality professionals from across Africa. Ultimately, our hotels are a training ground for a career in hospitality, and young people who join our hotels are trained and equipped with work-readiness, service skills, and pathways into long-term careers.

To what extent do you see the hospitality sector acting as a catalyst for broader urban development and regeneration in African markets?

The hospitality industry has the power to be a catalyst for inclusive economic growth. When Hilton opens a new property, such as Canopy by Hilton Cape Town Longkloof or Waldorf Astoria Seychelles Platte Island — they catalyze transformation beyond the property itself, creating jobs, opportunities for local suppliers, and increased business activity in the vicinity.

In addition, many of our new hotels are part of mixed-use developments that include residences, retail, and public spaces, such as Hilton Brazzaville Les Tours Jumelles. In many African cities, hotels are becoming more than just accommodation — they’re evolving into social and economic hubs that drive commerce, community connection, and cultural expression.

Looking ahead five to ten years, how do you envision Africa’s hospitality landscape evolving? What regions or models will define the next phase?

Over the next five to ten years, Africa’s hospitality landscape is poised for dynamic growth, driven by rising middle-class travel, urbanization, travel policy enhancements, and infrastructure investment. Key growth markets include Egypt, Morocco, Nigeria, Kenya, and South Africa, with emerging opportunities in Benin, Ghana, Angola and Madagascar. Demand will surge for both business and leisure travel – and with our pipeline of over 100 hotels across the continent, we look forward to playing a critical role in serving this growth as we bring our renowned service, commercial engine, and established brands to Africa.