Africa -  Nigeria - Lagos

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

Nigeria’s economy is slowly recovering and grew by 1.9% last year and is expected to grow by over 2.1% this year on the back of stronger non-oil activity, according to the IMF. Muhammadu Buhari was re-elected in February this year and promised to take Nigeria to the “next level”. Only 35.6% of Nigerians voted this year making it the lowest recorded number in Nigerian history, partly due to the election day being moved by a week and on the other hand perhaps showing a level of mistrust and disappointment with the competency of their government.

As part of the Economic Recovery and Growth Plan for 2017-2020, big investments are being made in infrastructure, i.e. power, roads, rails, ports and broadband networks. Lagos, especially, will see major infrastructure projects. The 1,400km long Lagos-Calabar coastal railway line, with a loan of US$2.3bn mainly funded by Chinese banks, will link all seaports upon completion and is expected to create business hubs as well as decrease the insecurity along interstate roads. In addition, the Lekki Deep Seaport is a US$1.2bn venture and planned to be completed in 2021, it is expected to be one of the largest deep-water seaports in Africa and serve as a hub for port operations for west Africa.

Murtala Muhammed Airport recorded an almost 15% increase in passenger numbers in the first half of 2018 compared to the same period in 2017. All together 5.7m travellers moved through the local airport of which 2.9m were international and 2.8m were domestic passengers. The high increase in passenger numbers is reflected in the city’s Hotel’s occupancy which grew by 7.7% year on year for the entire year 2018, despite some additional supply entering the market.

It is of no surprise that the ever-expanding mega city attracts Africa’s investors of all trades and especially expansion plans in the hotel industry: In October 2018, Hilton introduced its first Curio Collection in Africa with the opening of Legend Hotel Lagos Airport. Radisson is planning to open two new Radisson Collection hotels in Lagos over the next two years. Accor has four hotels in the pipeline for Lagos, the Art Hotel by Mantis (46 rooms), Ikoyi MGallery (100 rooms), the Pullman Ikoyi (199 rooms) and the Novotel Lagos VI (160 rooms).

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

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For more information, please contact:

Tim Smith, MRICS
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Rishabh Thapar
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