Choice Hotels, a leading U.S.-based hospitality group, is aggressively pursuing expansion across Africa, setting a goal to operate 100 hotels throughout sub-Saharan and southern Africa by 2035. This ambitious target follows their initial foray into the African market late last year, marking a significant shift in the company’s global strategy.
Initial Market Entry and Strategic Partnership
The company first entered the African market in November, securing franchise agreements for three properties in Kenya, slated to open in 2026. Alongside these, a master development agreement was established to construct at least 15 additional hotels by 2030.
Choice Hotels CEO for Europe, the Middle East, and Africa (EMEA), David Beers, stated the company’s previous absence was due to a lack of suitable local partnerships. This has now been resolved with Aniket Shroff, who is central to the expansion. Beers emphasized that this latest agreement builds on their initial deal with Shroff, indicating a long-term strategic alliance.
Why This Matters: The Rise of Franchising in Africa
This move reflects a broader trend in the African hospitality sector: the growing prominence of franchise models. Traditionally, hotel development in Africa relied heavily on independent ownership or large-scale, direct investment. Franchising allows international brands like Choice Hotels to scale rapidly with lower capital expenditure.
- This approach minimizes risk while leveraging local expertise.
- It caters to a rising middle class and increased business travel in emerging African markets.
- The 2035 goal suggests confidence in long-term stability and growth potential across the continent.
Implications for Local Markets and Competition
Choice Hotels’ aggressive expansion will likely intensify competition among existing international chains and local hotel groups. The company’s strategy will pressure other brands to adapt or risk losing market share. This could lead to more competitive pricing, improved service standards, and greater investment in local tourism infrastructure.
The success of this venture hinges on navigating the complexities of African business environments, including regulatory hurdles, infrastructure limitations, and cultural nuances. However, with a proven partner in Shroff and a clear expansion timeline, Choice Hotels appears well-positioned to capitalize on the continent’s growing hospitality demand.
Ultimately, Choice Hotels’ move signals a vote of confidence in Africa’s economic growth and the potential for a thriving hospitality sector. This
