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Published on
January 3, 2026
South Africa has become the catalyst, uniting Egypt, Nigeria, Kenya, Zambia, Ghana, Tanzania, Morocco, and Rwanda in an unprecedented surge in hotel room prices. Across these nations, hotel rates are soaring to levels never seen before. But what’s behind this explosive increase? Is it the beginning of an African tourism revolution, or is it a warning sign of unsustainable growth? As travel demand continues to rise across the continent, these countries are experiencing a dramatic transformation in their hospitality sectors. With increased business and leisure tourism, hotel prices have hit record highs. South Africa, in particular, is leading the charge with its rising ADR (average daily rate).
Meanwhile, countries like Egypt and Nigeria are also seeing significant jumps in room rates, driven by a mix of demand and limited supply. This wave of price increases has left many wondering: is this growth truly beneficial, or is it setting Africa’s tourism industry up for a boom-and-bust cycle?
Hotel room rates across Africa are on the rise, reaching new heights that reflect the continent’s ongoing recovery and growth in the tourism and business sectors. As we move through 2025, certain markets are seeing their hotel prices climb faster than others, revealing a fascinating story of supply and demand, economic recovery, and shifting travel patterns. This report breaks down the recent trends in hotel room rates across some of Africa’s key markets, including South Africa, Nigeria, Egypt, Kenya, Zambia, Ghana, and Tanzania, with a focus on what’s driving these changes.
South Africa: A Surge in Hotel Room Rates Amid Recovery
South Africa’s hotel market has experienced a remarkable recovery, with hotel room rates rising consistently. In 2024, average room rates climbed by 8.5% to ZAR 2,262.10, showing a healthy growth trajectory. The luxury hotels in cities like Cape Town saw even higher rates, thanks to increased demand from both corporate travellers and international visitors. Cape Town, for instance, regularly records room rates as high as $158 per night, pushing it above the regional Sub-Saharan average.
The increase in prices is largely driven by corporate and business travellers who are returning to South Africa, encouraged by the growing number of international events and conferences held in major cities like Johannesburg and Cape Town. Even with a slight dip in occupancy rates, the strong demand for business and leisure travel has pushed rates upwards. Luxury hotels have been at the forefront of this growth, benefiting from increased arrivals from both global and regional tourists.
South Africa’s hotel occupancy also saw significant improvement, although the full recovery is still a work in progress. This increase in prices, combined with a rise in international tourist arrivals, suggests that the country’s hospitality sector will continue to flourish in the coming years, as demand for both business and leisure travel remains strong.
Nigeria: Lagos Leading the Way in Price Increases
Nigeria has been experiencing some of the most dramatic increases in hotel room rates across Africa, especially in its commercial capital, Lagos. Average room rates in Lagos skyrocketed to N205,534 (approximately US$430), more than doubling from N83,105 in 2023. This massive surge is a clear sign of the fast recovery in business travel and the limited supply of high-quality hotels in the city. As business activity resumes, the demand for accommodation has sharply outpaced the availability of hotel rooms, driving prices to record levels.
In Lagos, the hospitality market faces a critical challenge: new hotel developments are struggling to keep pace with the growing demand. The delays in hotel construction have only made the situation worse, as corporate travel continues to rebound and foreign investors flock to Nigeria for business opportunities. The business district of Lagos is buzzing with activity, with international companies establishing a stronger foothold, further fueling the demand for high-end hotel rooms.
This growing demand from both international businesses and corporate events has pushed hotel prices to unprecedented levels, making Lagos one of Africa’s priciest hotel markets.
Egypt: A Hotspot for Hotel Price Increases
Egypt’s hospitality market has been one of the fastest-growing in Africa, with hotel room rates rising sharply over the past year. Cairo and the Red Sea resorts have particularly benefitted from tourism recoveries, with ADR (average daily rate) increases in some hotel segments reaching 40%. Egypt’s market is thriving, especially as the country sees a surge in international tourists from Europe, the Middle East, and Asia.
The country is also seeing a boom in hotel construction, with over 26,000 hotel rooms under development as part of its massive hospitality infrastructure expansion. This increase in supply should help moderate the steep rise in room rates over the next few years. However, for now, Egypt’s hotels remain in high demand, particularly during peak travel seasons like Ramadan and summer holidays, when international tourists flock to the country’s historical sites and beach resorts.
The government’s focus on boosting tourism, alongside a steady increase in foreign investment, has placed Egypt’s hotel industry in a strong position. The rising hotel rates are a reflection of this ongoing investment and the strong demand from both leisure tourists and business travellers.
Kenya: Flat to Modest ADR Growth Amid Supply Pressure
In Kenya, the hotel room rate story is a little more complicated. While Nairobi, the country’s capital, has experienced steady growth in hotel prices, overall ADR growth has been less pronounced compared to other markets like South Africa and Nigeria. Kenya’s hotel ADR is estimated to remain flat or experience modest growth through 2025, hovering around US$124.
The key issue facing Kenya’s hospitality market is the rapid increase in hotel supply, particularly in Nairobi. As new hotels are built to accommodate the growing tourism sector, supply is starting to outpace demand, leading to less aggressive rate hikes compared to markets with limited room supply, such as Nigeria.
However, Nairobi still attracts a significant amount of international business and conference tourism, which provides support for hotel prices in the city. But the pricing power of hotels in Kenya remains somewhat constrained by new hotel developments that are increasingly catering to both mid‑tier and budget travellers.
Zambia: A Hidden Gem of Price Increases
Zambia has emerged as a surprising hotspot for rising hotel room rates. In 2024, Zambia experienced an astonishing 40% increase in hotel room prices, driven largely by tourism growth in key areas like Livingstone, which serves as a gateway to the Victoria Falls. The increase in rates has been exponentially high, particularly for high-end lodges and safari hotels, which cater to international tourists seeking luxury experiences in Zambia’s protected national parks.
With Zambia’s government focused on boosting the tourism sector, including safari and nature-based tourism, the country’s hotels are benefiting from strong demand driven by both international visitors and high-profile events. Despite the increase in prices, Zambia remains an affordable destination compared to more expensive African countries, making it an attractive option for tourists.
Ghana: Modest Growth in Hotel Room Rates
In Ghana, hotel room rates have seen modest increases in 2024, with ADR forecasted to grow by about 5.9% in 2025. Ghana’s hotel market has benefitted from growing business demand, especially in Accra, which serves as a key destination for regional conferences and business travellers.
The country’s economic stability and the government’s efforts to increase tourism infrastructure have contributed to this moderate ADR growth. As Accra becomes a more significant hub for business tourism in West Africa, hotel prices are expected to continue their upward trend, though not as steeply as in places like Lagos or Cairo.
Tanzania: A Market with Steady Demand and Rising Prices
Tanzania, known for its safari tourism and beach resorts in Zanzibar, has seen consistent growth in its hotel sector. While official hotel ADR statistics are not frequently published, it’s clear that Tanzania’s tourism boom has led to increased hotel room demand, especially in Dar es Salaam and the Zanzibar archipelago.
As Tanzania continues to attract increasing numbers of international tourists, hotel room rates are expected to rise, particularly in luxury hotels and eco-resorts that cater to the growing demand for high-end experiences. Tourism revenue in Tanzania has grown by 33.5% in 2023, indicating a solid trajectory for hotel price increases in the near future.
Africa’s Hotel Markets in Transition
The trend of rising hotel room rates across Africa is a reflection of the continent’s economic recovery, rising demand for both business and leisure travel, and limited supply in key markets. While countries like Nigeria, South Africa, and Egypt have seen dramatic price increases, others like Kenya and Ghana show more moderate growth as new supply continues to be delivered.
As African nations continue to invest in their tourism infrastructure and attract foreign investment, hotel room rates are expected to rise further in some markets. However, challenges like oversupply in certain regions, economic fluctuations, and political factors may temper this growth.
Africa’s hotel sector is evolving quickly, and for both tourists and business travellers, understanding the dynamics of these rising prices is crucial for making informed travel decisions.
Source: BCD Travel, Tourism Update
