Africa -  Nigeria - Lagos

Nigeria’s population is projected to grow from more than 190 million people in 2017 to 392 million in 2050, becoming the world’s fourth most populous country and a massive global consumer and burgeoning trading market. The economy of Nigeria expanded 1.9% year-on-year in the first quarter of 2018, easing from an upwardly revised 2.1% growth in the previous period. It is the fourth consecutive quarter of expansion, as the oil sector continued to rise while the non-oil output growth slowed. However, with 2017 recording a 0.8% GDP growth Nigeria needs to do more to welcome the world back to its investment shores. Hopefully the recently announced Nigerian national airline will be a step in the right direction. However, it is important to note that both Nigerian markets were affected by the devaluation of the Naira since 2015. In 2017, hotels’ values in Lagos are down 9.1% in US dollars terms but increase by 23.5% in Naira terms.

Lagos attracts a large number of business travellers each year as there are a lot of trade shows and conferences happening in Africa’s biggest city. Lagos has almost 13.5 million residents and the majority of Nigerian businesses are located there making it a key hospitality market.

Lagos Murtala Muhammed International Airport remained the largest airport in Nigeria for both international and domestic travellers. Over 73% of international travellers and over 38% of domestic travellers in Nigeria went to or from Lagos in the last quarter of 2017. The number of passengers passing through the airport slightly declined in 2017 but is forecast to grow again with a regained confidence in Nigeria’s economy. The RevPAR and value of rooms in Lagos’ hotels are projected to have positive growth until 2020. Investor’s confidence in the market can also be perceived in the city’s hotel pipeline which will see over 2,700 rooms added over the next six years. The companies involved are Hilton, Marriott, Accor, Radisson, Hyatt, Rotana and Best Western.

Exchange Rate:

Exchange Rate 2016 Exchange Rate 2017 Change 2016/2017 Exchange Rate 2018 Change 2017/2018
US$ 1 0 0
Nigeria - Lagos 0.00405 0.00298 -26.4% 0.00276 -7.4%

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
2015 99.77
2016 80.86
2017 73.48
2018 (f) 79.77
2019 (f) 83.14
2020 (f) 87.25

For more information, please contact:

Tim Smith, MRICS
[email protected]
  • +27 797 342296 (w)
Rishabh Thapar
[email protected]
  • +27 0 792790584 (m)
Laura Dutrieux
[email protected]