RESEARCH REPORTS EXCERPTS
5-Star Hospitality
LAGOS
“Lagos is continuously an investor delight” Lagos is home to many multinational oil corporations whose expatriate staff frequently fly into the city for one official engagement or another and this business travelers usually find their way into hotels that dot the city landscape”
Lagos: The hospitality growth frontier – BusinessDay NG, TV, and Podcast
“The demand for luxury hotel rooms in Nigeria is increasing mainly in Abuja and Lagos, according to a Nigerian Tourism Intelligence Report. The report released Wednesday by Jovago, an online hotel booking portal, stated that Lagos has the biggest online market share in Nigeria, followed by Abuja, Port Harcourt, Ibadan, and Calabar.”
“Also, business and leisure travels are expected to grow by more than N1.4 trillion annually.”
“The hospitality sector remains one of the most resilient sectors in Lagos. Data from W Hospitality Group indicates that average occupancy rates peaked at 68.4% in 2022, a ten-year high, from 2012. In addition, RevPAR recorded in Lagos increased by 43% in 2022 compared to the base year of 2019, effectively ranking Lagos ahead of major international hubs such as Dubai, London, New York, and Hong Kong.”
The Lagos Hotel Industry remains dynamic and resilient amidst the obstacles to growth, particularly infrastructural challenges. The hotel industry in Lagos State has over 2,000 hotels with an estimated room supply of about 70,000 rooms. Although this scenario creates a greater array of choices, international brand hotels in Lagos continue to dominate the sales volumes both in the business and leisure travel categories. The dominance is as a result of the perceived higher quality of services offered by the international brands, and better security standards. We however believe that the growing presence of international brands in Lagos State would encourage local brand hotels to improve service levels and thus, overall industry practices.
https://www.agustoresearch.com/report/2020-hotel-industry-report/
Lagos is the commercial capital of Nigeria with over 20 million population with unending commercial transactions by locals and tourists from all parts of the world. Lagos is a preferred destination for investors seeking to go into hotel business in Nigeria.
https://koriatlaw.com/how-to-set-up-a-hotel-business-in-lagos-state/
NIGERIA
“Nigeria remains an attractive market for major hotel brands with a strong infrastructure for urban visitors.”
“The MICE sector will drive guest nights and overall room revenue.”
“With Nigeria’s growing affluence, we expect consumer tourism to become a more important sector. Adventure tourism is becoming more popular and the growing interest in experiences is allowing Nigeria to attract visitors interested in the local culture.”
Hospitality outlook: 2019-2023 (pwc.com)
“Last year, Nigeria was the country that got the biggest number of contracts signed by all international hotel chains together to build new hotels in Nigeria,” Marek Zmyslowski, Managing Director, Jovago Nigeria, said at a press conference to unveil the report.
“So basically, last year defined Nigeria as the fastest growing hotel market in the world.”
“The Hospitality and Tourism Industry (HTI) has the potential to bolster Nigeria’s investment landscape and achieve increased contribution to our Gross Domestic Product (GDP).
“The HTI was accorded preferred sector status by the Federal Government (FG) in 1999 with incentives such as tax holidays and import duty exemption on tourism-related equipment whilst some States, like Lagos and Cross River have designated specific areas as tourism development zones (Lekki Tourism Zone/ Tinapa Resort etc.) making acquisition of land easier. The Minister of Information and Culture had launched the Economic Value of Geospatial Services in Nigeria – a collaboration with Google to create street mapping of Nigeria potentially showcasing the country’s rich tourism sites to the world.”
“The Minister of Information and Culture also disclosed that the FG had inaugurated the Presidential Council on Tourism which will be working closely with the United Nations World Tourism Organization (UNWTO) to implement the long abandoned Nigeria Tourism Master Plan focused on strengthening institutional capacity of the Nigeria tourism sector.”
“Hospitality business is much more profitable in Nigeria compared to what is obtainable in other countries, the Chief Executive Officer, 4GUYS Limited, Monah Hmaidan. Nigeria is one of the most profitable countries I have worked in, I have work in Lebanon, Dubai, and a few other countries.”
“Currently, the country’s hotel market boasts of about 12,000 standard rooms and 3,000 short of the anticipated 15,000 rooms by 2020 due to the outbreak of coronavirus and its devastating impact on the economy.”
“Sadly, less than 5 percent of the room supplies are five-star hotels, while 1 in 20 Nigerian hotel pipeline projects is a proposed five-star hotel.”
https://businessday.ng/life-arts/article/why-nigeria-is-struggling-to-attract-five-star-hotels
“In this thriving sphere, insights from PricewaterhouseCoopers (PwC) shed light on the hospitality outlook from 2019 to 2023, projecting a robust 12% growth in Nigeria’s hospitality sector over the next five years.”
https://nairametrics.com/2023/08/15/top-hotels-in-nigeria-based-on-search-volumes/
AFRICA
“Africa, known for its breath-taking landscapes, rich cultural heritage, and diverse wildlife, has long been a sought-after destination for leisure travellers. both business and leisure – showed a sizable surge of 78.2% in the first half of 2023 on arrivals to South Africa when compared to the same period in 2022 with the latest reports showing that business spending represents a share of 43% of overall tourism contributions.”
“This development reflects the increasing recognition of Africa’s potential as a hub for international conferences, conventions, and corporate events.”
Business Tourism in Africa as a Key Driver of Economic Growth – AfricaBusiness.com
“hospitality business in Africa is becoming more impressive everyday with improvements, exciting innovations, sustained service culture and even corresponding facility offerings, which combine to point to the fact that African hospitality has come of age.”
Success stories that underline African hospitality business – Businessday NG
“According to the hotel’s Regional Director for Africa, Mark Havercroft, hotel business in Africa in 2019 attracted capital as high as $1.8 billion,”
“Any hospitality industry chain that wants to establish itself in Africa must follow three key countries of interest; Nigeria, Kenya and South Africa. If you want to be a key player on the continent, you have to be established in those three countries. If you want to get anywhere in West Africa, you go through Nigeria. You know, if Nigeria sneezes the rest of the West Africa countries catches a cold. Minor Hotel’s ambition is to expand across Africa, which we are doing carefully and selectively. We’re not just trying to pin a flag on the map, we are selective on where we want to go,”
“The African economy grew by an estimated 2.9% in 2019, outpacing GDP growth in each of the EU’s five biggest economies (Germany, France, UK, Italy and Spain), and its expansion is projected to accelerate to 3.2% in 2020 and 3.5% in 2021, according to the UN. Economic growth helped tourism flourish, with many segments of the hospitality sector seeing considerable development.“
“Leisure tourism is on the rise: While the corporate and MICE sectors have been long key contributors to growth, Africa’s leisure tourism has also started to pick up as travel advisories were lifted for many of its countries and visa procedures became simpler in major inbound markets. International tourism is expanding by 5% annually, including a 6% growth in Sub-Saharan Africa, which translated into about 70 million international tourist arrivals in 2019. Growth is expected to continue.”
Hospitality in Africa: trends to watch in 2020 – News – RLA Global
“African hospitality markets continue to recover post-Covid-19, and investment and development activity is expected to increase as the sector develops through its worst crisis in history, according to industry analyst Wayne Troughton, CEO of HTI Consulting”
“Emphasis on hospitality’s critical role as job creation and economic growth driver”
“According to a recent W Hospitality survey, hotel chains signed 447 transactions in 2021, and the number of rooms (80,291 rooms) added to their development pipeline is nearly the same to 2019.”
“According to Troughton, some of his most striking trends are how the investment and operational landscape has altered since the epidemic, how markets and products are adjusting to these changes, and what the recovery and forward bookings look like for the upcoming season.”
Africa: Bright Future for Africa’s Hospitality Sector Beckons – allAfrica.com
“PwC, predicted that the hospitality sub-sector would be one of the key drivers of economic growth on the continent. The prediction was premised on the fact that an increase in both domestic and international travels would lead to an expansion of hotel chains on the continent, which would, in turn, reinforce the growth potential of the sub-sector. PwC named five countries in Africa where the hotel sector is going to experience growth, with significant increase in room revenue, namely: South Africa, Nigeria, Mauritius, Tanzania and Kenya. The company expected Nigeria to be the fastest-growing hotel market in Africa over a five-year period, ending 2022. Indeed, the forecast is that Nigeria will become the fastest-growing tourism market on the continent, with a projected 12 per cent compound annual increase. This forecast is predicated on Nigeria’s growing affluence which would make consumer tourism a more important sector followed by Adventure tourism.”
Tourism: Hospitality as key driver of Africa’s economic growth (vanguardngr.com)
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