In spite of the adversity it faced the previous year as a result of the terrorist activity as well as the outbreak of the Ebola virus in West Africa, there is expected growth in the Nigeria hospitality market with hotel rooms projected to “more than double” over the next five years according to a PwC report released last month.
“Because of its strong economy, the hotel industry in Nigeria has attracted significant investment and the number of hotel rooms in Nigeria is expected to more than double during the next five years with much of the growth taking place in Lagos,”the 5th edition of PwC’s Hospitality Outlook 2015-2019 says.
The Nigerian hotel market was hit by health concerns in 2014 in the wake of the Ebola virus and concerns around terrorism. Room revenue declined by 2.0% and the three – and four –star hotel market took a knock as revenue fell 7.7%.
For the forecast period as a whole, stay unit nights are projected to increase at a 6.6% compound annual rate to 2.2 million in 2019 from 1.6 million in 2014. Occupancy rates fell in 2014 for the first time to 49.8%.
The PwC’s report features information about hotel accommodation in Nigeria, Mauritius, Kenya and South Africa.