Nigerian hotels most valuable in Africa-Report

0
25229
Nigerian hotels most valuable in Africa-Report
The report depicts hotel business in Africa as being viable despite challenges.

Nigerian hotels are the most valuable on the African mainland, the African Hotel Report 2017 that is set to be released today in Rwanda has shown.

August year-to-date data shows a 1.2-percent decline in occupancy to 44.3 percent, but a 6.8-percent increase in Average Daily Rate(ADR) to NGN47,819.53. When measured in U.S. dollars, however, ADR declined 23.3 percent to $149.58.

 But the report also notes the socio-economic problems that Nigeria faces that is affecting the sector. For instance, low oil prices as well as security concerns in Lagos.

Nigerian hotels challenges

David Harper of Hotels Partners Africa observes that these challenges have seen values fall by 16.4 percent in the last two years. Notwithstanding, average values are the third highest in Africa, behind only the Seychelles and Mauritius.

“Despite the challenges Nigeria remains the most significant hotel market in West Africa, with almost 6,100 branded guestrooms across 41 hotels, with 21 brands and 14 hotel companies represented in 9 cities,” says Mr Harper.

Already 61 hotel projects and more branded guestrooms-10,313-have been proposed  in Nigeria more than any other country in Africa.

“This report shows that the hotel industry in Africa is still a very good investment, despite the cyclical nature of the property market.”

Read:Hotel industry in Ghana depicts resilience despite difficulties

But Mr Harper urged would be hotel developers or investors to seek prior advise to avoid    some of the potential pitfalls that can ensnare the less experienced hotel investor.

The report predicts that supply growth will continue pressuring Nigerian hotels occupancy levels in the near future.

 

1USD is equivalent to 359.50 Nigerian Naira