Africa -  Nigeria - Abuja

Nigeria is one of the countries that were most adversely affected by the commodities and currency crises. The country has not reported a single case of Ebola since the crisis was declared over, however Boko Haram has not yet been brought under complete control

Total international tourist arrivals in 2015 did not exceed 2014 levels, however Nigeria has a larger domestic tourism market.Abuja hotels saw an increase in occupancy in 2015 despite the Boko Haram insurgency. Average room rate did not perform as well with a substantial decrease from $325.00 to $275.00.  Like Lagos, this is due in large part to the lack of international guests and an increase in local guests. Many new hotels are planned for Abuja over the next five years, which illustrates the confidence in which the market is held for the longer term. Accordingly, both Lagos and Abuja experienced reduced hotel values, however these reductions were less severe than 2014.

Abuja is struggling to regain the confidence of tourists and investors. The fall in prices of gas and oil slowed the economy down in 2016, security is a massive concern for travelers and the accessibility to both cities is not improving. The level of demand and occupancy is expected to be down. Hence, Abuja will see a drop in values of 2.1%, suffering from a massive drop in occupancy. The improvement of the security situation and the economic recovery will partly condition the future of the hotels investment playground in Nigeria.

Exchange Rate:

Exchange Rate 2014 Exchange Rate 2015 Change 2014/2015 Exchange Rate 2016 Change 2015/2016
US$ 1 1 1
Nigeria - Abuja 0.00601 0.00502 -16.5% 0.00425 -15.3%

Change In Value For Market:

Legend
Significant Value Increase: Greater than +10%
Moderate Value Increase: Between +3% and +10%
Stable Values: Between -3% and +3%
Moderate Value Decline: Between -3% and -10%
Significant Value Decline: Less than -10%

Nigeria - Abuja RevPAR Change

Nigeria - Abuja RevPAR

Year RevPAR
2010 210.95
2011 219.27
2012 201.45
2013 228.11
2014 177.96
2015 162.17
2016 158.84

For more information, please contact:

Tim Smith, MRICS
tsmith@hvs.com
  • +27 797 342296 (w)
Tshepo Makhudu
tmakhudu@hvs.com
Laura Dutrieux
ldutrieux@hvs.com