Africa -  Nigeria - Abuja

For a comprehensive review of the Africa market, click below:
HVS In-Depth Africa Hotel Valuation Index:   2016 | 2015 | 2014

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.

The metropolitan area of Abuja was estimated in 2018 at 2.9 million persons, the country's fourth most populous city. An attractive area in the Central District is the region known as the Three Arms Zone, so called because it houses the administrative offices of the executive, legislative and judicial arms of the federal government.

Occupancies and rates in Abuja spiralled between 2015-2017 with year-on-year growth only beginning to show  the move in the right direction Q2 2018. The signs are there that Abuja is on the mend, but the market has much to do to enjoy previous level of ADR. The temporary 6-week closure of Abuja’s airport, Nnamdi Azikiwe International Airport, for runway repairs did not help the market.

Many of the Abuja benchmark hotels are in the process of refurbishment in anticipation of the future increase in business, so this is positive and with international brands still very much interested in developing their brands within Abuja the future looks good even though hotel values have decreased substantially. Almost 3,400 rooms are planned to be added to the capital’s hotel supply over the next five years including Radisson, Hilton, Marriott, Accor, Moevenpick, Best Western and Emaar Hospitality

The widespread impact of the coronavirus (COVID-19) has had an unprecedented impact on hotels and hotel values worldwide. Consequently, the latest HVI analysis may no longer reflect the most current measure of lodging industry strength or the hospitality investment market.

In each of our offices across the globe, we are working tirelessly to analyze the impact of recent events and provide timely insights to help you navigate these uncharted waters. Because it is unclear how long the pandemic will last or how long related restrictions will be in place, we are updating our analyses on a weekly basis using the most current data.

Additionally, examination of value trends in prior cycles can provide useful information. Historical patterns, together with an understanding of the market’s current expectations for the eventual recovery of the industry and its performance, can provide insights on the likely trajectory of decline and recovery for hotel values.

For the Latest Information and Analysis on the Impact of COVID-19Click Here

If you’d like to speak to someone personally to review details of our most current analysis, please don’t hesitate to contact us directly.

For more information, please contact:

Tim Smith, MRICS
[email protected]
Rishabh Thapar
[email protected]
  • +27 0 792790584 (m)