Ethiopia’s Hotel Pipeline Surges to Nearly 6,000 Rooms as COP32 Preparations Accelerate

EBR_News Mar 11, 2026

By Betegbar Yaregal

Ethiopia has emerged as a leading force in Africa’s hotel construction boom, with nearly 80 percent of its pipeline rooms currently under construction the highest ratio on the continent as the country races to expand accommodation capacity ahead of hosting the COP32 climate conference in 2027, according to the 2026 Hotel Chain Development Pipelines in Africa report by W Hospitality Group.

The report reveals that Africa’s hotel development pipeline has reached a record 123,846 rooms across 675 hotels, growing 18.6 percent year-on-year. Ethiopia ranks fifth on the continent with 5,964 rooms across 34 hotels in the pipeline, behind Egypt (45,984), Morocco (10,606), Nigeria (8,480), and Kenya (6,190).

What sets Ethiopia apart, however, is execution momentum. The country has 79.9 percent of its pipeline rooms under construction the highest in Africa alongside Kenya at 79.5 percent, and well ahead of Tanzania (77.5 percent), South Africa (67.2 percent), and Nigeria (39.2 percent). Trevor Ward, Managing Director of W Hospitality Group, noted that “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”.

The construction surge aligns with Ethiopia’s preparations to host COP32 in Addis Ababa in 2027, which is expected to bring over 80,000 international delegates to the capital. Mayor Adanech Abebe announced in January that the city plans to expand accommodation capacity from 25,000 to over 80,000 through new constructions and upgrades to hotels, guesthouses, and apartments.

MIDROC Investment Group is leading private sector response. CEO Jamal Ahmed confirmed the conglomerate is mobilizing resources to secure approximately 1,500 hotel beds for COP32 participants through new developments, upgrades, and acquisitions. Key projects include a new Sheraton-branded property within the existing Sheraton Addis compound, which along with refurbishment of the iconic 294-room hotel, has an estimated total cost of $116 million.

MIDROC recently acquired the historic Wabe Shebelle Hotel near Mexico Square, with plans to renovate and integrate it into Marriott International’s Autograph Collection joining more than 350 boutique hotels worldwide. Work is also resuming on the long-delayed Africa Union Westin Hotel Project, targeted for completion ahead of COP32. Additional projects include Moxy by Marriott and Four Points by Sheraton hotels in Mohammadi Residential Village, and Four Points properties planned in Jimma and other regional cities.

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

More than 65,000 rooms are forecast to open across Africa in 2026 and 2027, though W Hospitality Group cautions that historical actualization rates suggest delivery may fall short of projections, highlighting the gap between ambition and execution.

 

Betegbar Yaregal

Betegbar Yaregal is a junior Economist , business and financial journalist and digital editor at Ethiopian Business Review (EBR). He works at the intersection of journalism, economics, and digital media. content creation, graphics , infographics, and template designs. At EBR, Betegbar manages and edits content for the magazine’s website and social media platforms, including LinkedIn, Facebook, X, and Telegram. Betegbar is a 2025" graduate from Addis Ababa University


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