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U.S. hotel chains Hilton (HLT) and Marriott (MAR) have announced a significant expansion drive in Africa, responding to the growing business and leisure travel to the continent.
According to a Reuters report, Hilton plans to more than triple its hotel count in the region to 160, while Marriott aims to open 50 properties by 2027.
Hilton said it would open hotels in Angola, Ghana, and Benin for the first time and reopen properties in Madagascar and Tanzania, without offering a timeline for the plans.
Marriott will open its first set of hotels in Cape Verde, Ivory Coast, the Democratic Republic of Congo, Madagascar, and Mauritania. The hospitality company currently has 150 properties across its various brands in Africa.
Hilton shares are nearly flat year-to-date, while Marriott shares are down 7.7%.
The expansion comes amid a travel boom in Africa. International arrivals to the continent rose 9% year on year in the first quarter of 2025, 16% above the same period of pre-pandemic 2019, Reuters reported, citing the United Nations World Tourism Organization data.
Airlines have also increased flights to and from Africa recently.
On Stocktwits, as of late Thursday, the retail sentiment was 'bearish' for Hilton and 'neutral' for Marriott, unchanged from the previous day.
A bearish user said concerns around consumer spending in the hospitality sector will become apparent by the end of the year.
The hospitality sector is under duress in the United States, as consumers and businesses seek to reduce costs amid an uncertain economic outlook.
Last month, both Hilton and Marriott trimmed their full-year room revenue forecasts, citing weakness in demand in the U.S. due to tariff policies and cuts in federal budgets under the Trump administration, which have reduced stays by government staff.
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