Hotel & Leisure Sector Market Insight 2025

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Africa’s hotel and leisure sector is experiencing a new era of growth, with hotel and lodge developments booming across the continent.

RLB recently attended the Future Hospitality Summit Africa (FHS) in Cape Town – a key event for hotel investors, operators, and developers – where conversations centred on opportunity, innovation, and overcoming constraints in this fast-moving industry.

What emerged was a clear picture: Africa is not only a growing destination for tourism and business travel but also a dynamic space for construction and investment. A record-breaking hotel pipeline is taking shape, supported by rising demand, increased investor confidence, and focused government strategies. This presents exciting possibilities and important responsibilities, for construction and cost professionals involved in shaping these developments.

At RLB, we are seeing first-hand how the sector’s evolving needs are influencing cost planning and design choices. Here are five key themes that stood out at FHS Africa, and how they are informing our approach to hospitality projects across the continent:

1. Sustainability is now essential
Eco-conscious construction is no longer a ‘nice-to-have’, it’s a baseline expectation. Hotel developers are prioritising sustainable practices, from energy efficiency and materials to lifecycle costing. As quantity surveyors, we play a vital role in embedding sustainability into project delivery while ensuring commercial viability.

2. Technology is driving smarter builds
Smart hotel systems are transforming the guest experience and the construction process. These technologies not only streamline operations but also enable greater efficiency during design and execution. We are seeing tech influence everything from digital modelling to refined cost estimation.

3. Inflation and cost pressures remain high
Across the continent, rising material and labour costs, as well as high borrowing rates in some regions, continue to challenge project budgets. Adapting cost strategies and creating robust, flexible budgets are essential to keeping developments viable.

4. Design is becoming more experience-led
Developers are focusing on delivering unique, guest-centric environments that reflect the location, culture and traveller preferences. Balancing high-impact design with cost-efficiency requires creative and proactive quantity surveying from concept to completion.

5. Growth is accelerating, but uneven
Some regions, such as North Africa, are surging ahead with major resort and urban developments, while others are seeing slower but steady progress. Regardless of location, opportunities exist for those who understand the nuances of the market and can support delivery at every stage.

Africa’s hotel sector is not only expanding, but it’s also evolving. For construction professionals, this means applying technical rigour alongside strategic foresight. At RLB, we are proud to be part of this journey, helping clients navigate complexity and unlock value in one of the world’s most exciting hospitality markets.

For a deeper dive into the latest development pipeline, key growth markets and regional trends, download our latest Hospitality Sector Snapshot here