Africa -  Nigeria - Lagos

Although Nigeria is officially in a recession and its economy has experienced a negative growth throughout 2016, the total number of passengers recorded by the Federal Aviation Authority of Nigeria (FAAN) increased by 6.3% between 2015 and 2016.

Low oil prices and fuel shortages due to a militant group destroying oil wells and pipelines in May 2016 have hit Nigeria’s economy hard in 2016. Prior to the wave of violence Nigeria had an energy crisis and gasoline shortage, which formed the start of a decline in economic growth. In addition, the security situation related to Boko Haram violent activities worrisome and international travellers are wary of traveling to

This has resulted in a sharp fall in occupancy and average rate took a significant hit, respectively decreasing by 3.4% and 5.1% in 2016. Unfortunately, the introduction of new hotels in the market and the loss of international travellers to domestic tourists added to this negative picture. by 5.2%. 

Even though Lagos’ economy is going through a bumpy time at the moment, Lagos is the 7th largest economy in Africa and is expected to grow even bigger as it has become an oil-producing state in the first half of 2016 and represent 13% of the revenues generated by the government through its oil. A number of hotels have opened in 2016 and a lot more are scheduled to open over the next 8 years adding over 3,000 rooms all over the country. The companies involved are Starwood Hotels & Resorts, Marriott International, Hilton Worldwide, Movenpick Hotels & Resorts, Rotana and BON Hotels.

Not only the biggest players in the hospitality industry are interested in Lago’s future, but also various international figures showed interest in 2016 by visiting the city, the country and its president. Managing Director of the International Monetary Fund, Christine Lagarde, came to Nigeria to strengthen the partnership, meet and engage with business leaders, legislators, President Buhari and other senior leaders. King Mohammed VI of Morocco went to the country to strengthen the bilateral cooperation and Mark Zuckerberg, CEO of Facebook, surprised Lagos with a visit in August 2016 to meet with entrepreneurs and developers and to learn about the “start-up ecosystem” in the city.

Exchange Rate:

Exchange Rate 2015 Exchange Rate 2016 Change 2015/2016 Exchange Rate 2017 Change 2016/2017
US$ 1 1 1
Nigeria - Lagos 0.00502 0.00425 -15.3% 0.0038 -10.6%

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 - Lagos RevPAR Change

Nigeria - Lagos RevPAR

Year RevPAR
2011 159.63
2012 162.09
2013 161.05
2014 119.84
2015 117.56
2016 105.67
2017 (f) 111.16

For more information, please contact:

Tim Smith, MRICS
tsmith@hvs.com
  • +27 797 342296 (w)
Laura Dutrieux
ldutrieux@hvs.com
Sofie Otto
sotto@hvs.com