Connect with us

Business

Lagos hotel room rates hit N205,534 as supply lags

Published

on

Average hotel room rates in Lagos have climbed to a record N205,534, a sign of how quickly business and corporate travel is returning to Nigeria’s commercial capital, even as new hotel supply lags. Data from Estate Intel’s Lagos Real Estate Development Pipeline Report 2025/2026 shows demand rebounding faster than the city’s ability to add rooms.

The report showed average daily rates more than doubled from N83,105 in 2023 to N205,534 by October 2025, the highest level on record. The research firm said the increase was driven by renewed corporate activity, improved connectivity to key business districts, and delays in delivering new high-quality hotel projects following years of construction setbacks.

The document noted that Lagos’ hospitality performance highlights how quickly demand has recovered relative to supply, particularly in prime business locations.

“Average daily rates in Lagos are currently as high as they have ever been, supported by business and corporate travel and constrained supply following several years of delayed hotel deliveries,” the report stated.

Hotel occupancy in the over 20 million population state stood at 66.7 per cent as of October 2025, according to data cited in the report, with expectations that occupancy will stabilise in the high-60 per cent to low-70 per cent range over the coming years.

The city’s hospitality demand continues to be anchored by business travel, supported by proximity to the international airport and improved accessibility across major commercial hubs such as Victoria Island, Ikoyi, and Ikeja.

While leisure travel remains a smaller component of demand, the steady return of conferences, corporate meetings, and regional business travel has helped sustain both occupancy and pricing power for hotel operators.

See also  States, FCT external debt nears $5.7bn amid higher FAAC

Lagos currently has an estimated 10,728 hotel keys, with an additional 3,709 keys in the development pipeline, making it the largest hospitality pipeline market in West Africa by volume. However, the report indicated that more than one-third of planned hotel projects are on hold, reflecting lingering challenges such as high construction costs, foreign exchange volatility, and cautious capital deployment.

As a result, the pace of new hotel completions has lagged earlier projections, helping to keep the market broadly balanced despite rising demand.

“An uncertain business environment in recent years has limited the delivery of new hotel stock and pushed completion dates further out,” Estate Intel said. “This has supported pricing as demand has returned faster than supply.”

Major branded projects in the pipeline include developments under global hotel chains, though only a limited number are expected to reach completion in the short term.

The report also highlights growing competition between traditional hotels and the expanding short-let apartment market, particularly in prime districts. The influx of short-let units has increased supply options for travellers and corporates, putting pressure on some operators.

Anecdotal evidence from December suggests mixed performance across short lets, with some operators reporting weaker occupancy while others continue to see steady demand. Despite this competition, traditional hotels have largely maintained strong performance due to their focus on corporate clients and branded service offerings.

Broader economic backdrop

The rebound in hotel rates comes amid improving macroeconomic conditions. Capital importation into Nigeria rose to $7.3bn in 2024, the highest level in three years, while inflation has shown signs of stabilisation following the rebasing of the consumer price index. The International Monetary Fund revised Nigeria’s 2025 GDP growth forecast upward to 3.9 per cent, supporting expectations of continued economic recovery.

See also  Agriculture must get ‘rightful place’ in financial system - CBN

Following the rebasing of GDP data, real estate services now contribute 13.36 per cent of Nigeria’s GDP, underscoring the sector’s growing importance to the economy and reinforcing investor interest in hospitality and other property assets.

Estate Intel said the outlook for Lagos’ hospitality market remains positive, with limited near-term supply expected to keep the sector balanced even as demand improves.

“We anticipate a more bullish environment for hotels as the economy continues to recover, particularly given the limited delivery of high-quality stock over the next few years,” the report said.

While operators may face increasing competition from short-let accommodation and rising operating costs, the firm expects Lagos’ role as Nigeria’s commercial capital to continue underpinning hotel demand, keeping room rates elevated in the medium term.

FOLLOW US ON:

FACEBOOK

TWITTER

PINTEREST

TIKTOK

YOUTUBE

LINKEDIN

TUMBLR

INSTAGRAM

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

Oshiomhole seeks ban on MTN, DSTV, read why

Published

on

The senator representing Edo North, Adams Oshiomhole, on Tuesday called for the revocation of licences of South African companies operating in Nigeria, including MTN and MultiChoice, owners of DSTV, following renewed xenophobic attacks against Nigerians in South Africa.

The call came as the National Assembly condemned the latest wave of attacks, urging the Federal Government to take immediate diplomatic and protective measures to safeguard Nigerian citizens abroad.

Speaking during plenary, Oshiomhole said Nigeria must respond firmly, invoking the principle of reciprocity in international relations.

He said, “I don’t want this Senate to be shedding tears, to sympathise with those who have died. We didn’t come here to share tears.

“If you hit me, I’ll hit you. I think it is appropriate in diplomacy. It’s an economic struggle.”

The former Edo State governor proposed that Nigeria should nationalise MTN and withdraw its operating licence, arguing that the company repatriates significant revenue while Nigerians face hostility in South Africa.

“This Senate should adopt a position that MTN, a South African company that is cutting away millions of dollars from Nigeria every day, should have Nigeria nationalise it and withdraw its licence,” he said.

According to him, such action would not only serve as a deterrent but also create opportunities for indigenous firms, amid what he described as economic and social targeting of Nigerians abroad.

He extended the call to MultiChoice, urging the Federal Government to revoke DSTV’s licence over alleged exploitative practices.

“I call on the Federal Government to revoke DSTV, which is also a South African company that is cutting away millions of dollars,” he said.

See also  Again, Petrol Stations Increase Fuel Prices

Oshiomhole linked the recurring tensions to domestic political dynamics in South Africa, noting that anti-immigrant rhetoric had become a feature of its politics and was shaping public attitudes toward foreign nationals, including Nigerians.

“When we hit back, the president of South Africa will go on his knees to recognise that Nigerians cannot be intimidated,” he said.

The senator made the remarks while contributing to a motion sponsored by Osita Izunaso, which was read on the floor by Aniekan Bassey under Senate rules on matters of urgent public importance.

Titled “A call for urgent national diplomatic and humanitarian action to defend the dignity, safety and honour of Nigerian citizens,” the motion highlighted growing concerns over the safety of Nigerians in South Africa.

Also speaking, Senator Victor Umeh described the situation as alarming, warning that Nigerians were living in fear.

“It is worrisome. They are hiding for their lives. They can’t move freely. This is a situation where people are paying good with evil,” he said, referencing Nigeria’s historical support for the anti-apartheid struggle.

Umeh called on the African Union to intervene and impose sanctions, warning that Nigeria could no longer tolerate attacks on its citizens.

“The AU, of which South Africa is a member, should rise now and impose necessary sanctions,” he said, adding that “we cannot allow this to continue.”

Oshiomhole, however, doubled down on calls for economic retaliation, arguing that Nigeria must move beyond rhetoric.

“I don’t want this Senate to be shedding tears to sympathise with those who have died. We didn’t come here to shed tears. I am not going to shed tears. If you hit me, I hit you. I think it is appropriate in diplomacy. It is an economic struggle,” Oshiomhole said.

See also  Agriculture must get ‘rightful place’ in financial system - CBN

He further argued that Nigerians should take advantage of opportunities in the local economy, currently dominated by foreign firms.

Senator Abdul Ningi warned South Africans over recent attacks on Nigerians, threatening that the country would take the fight to their territory.

“If a crime has been committed under the South African law, they have the right to bring any such person to justice, but to kill our people as if we are helpless, we will not allow that.

“If these things continue, we have alternatives, we have options, and therefore, these words should be sent across South Africa. We know where South Africans are, not only in Nigeria but all over Africa, and we can take this fight to their territory,” he said.

Speaking, the Senate President, Godswill Akpabio, decried the attack, adding that the National Assembly would send a joint team to meet with the South-African parliament on the matter.

“This is just not acceptable, this is barbaric, this is cruel, this is unheard of, this is strange behaviour, and we’re not seeing action from the government of South Africa. These are aspects that annoy me,” Akpabio said.

The development underscores mounting pressure on the Federal Government to adopt a tougher stance, as recurring xenophobic violence in South Africa continues to strain diplomatic relations and provoke calls for both economic countermeasures and stronger protections for Nigerians abroad.

Continue Reading

Business

Naira gains, trades 1,365/$ at official FX market

Published

on

…NFEM rate — N1,365.2474/$

…Naira strengthens by at least N9

…Black market (Buying and selling rates) — N1,390 — N1,400

The Nigerian naira strengthened against the United States (US) dollar, trading at N1,365.2474 at the Central Bank of Nigeria (CBN) official foreign exchange window on Monday, 4th May, 2026.

According to the data shared on the official platform of the Central Bank of Nigeria (CBN), the naira traded at the Nigerian Foreign Exchange Market (NFEM) rate of N1,365.2474 per dollar and closed at N1,367.5000 per dollar.

Tribune Online reports that the Nigerian currency traded at an NFEM rate of N1,374.9431 on 30th April 2026, which was the previous trading date. Comparing this with the trading rate on Monday, the naira strengthened by at least N9.

At the parallel market, the naira-to-dollar buying rate decreased by N3, while the selling rate increased by N2, compared with the previous trading rate on 30th April, 2026.

According to Aboki FX, the Naira-to-dollar exchange rate at the black market on Monday, 4th May, 2026, was N1,390 for the buying rate and N1,400 per dollar for the selling rate.

See also  FG orders banks, fintechs to remit VAT on service fees
Continue Reading

Business

Experts promote rabbit value chain investment

Published

on

Experts in animal production have identified rabbit farming as a viable avenue for economic growth, job creation, and improved nutrition in Nigeria.

The experts made this known during a public lecture held at the Bauchi State College of Agriculture on Friday as part of activities marking Rabbit Appetite Day.

Speaking at the event, a registered animal scientist and lecturer at the Federal Polytechnic Damaturu, Sani Muazu, said there was a need to promote both the consumption and commercial production of rabbits across the country.

He described rabbit production as a largely untapped but promising sector capable of contributing significantly to Nigeria’s economy.

“Rabbit farming in Nigeria is still underdeveloped, with only about three to five per cent of the population engaged in the enterprise, mostly at small-scale family levels where farmers keep an average of two to seven breeding females. Despite this, the sector offers vast opportunities for expansion and commercialisation,” he said.

Muazu noted that rabbits are highly productive animals, with a gestation period of about 30 days and the capacity to produce up to 20 or more offspring annually.

He added that their low feeding and housing requirements make them suitable for students, smallholder farmers, and urban residents seeking alternative sources of income.

According to him, rabbit production extends beyond farming to other economic activities such as breeding, feed supply, veterinary services, processing, and marketing.

He also highlighted the nutritional value of rabbit meat, describing it as rich in protein, low in fat, and suitable for addressing protein deficiency in the country.

See also  Global markets surge on US rate hopes

On environmental sustainability, Muazu said rabbits require less land and water and emit fewer greenhouse gases compared to larger livestock, making them suitable for climate-smart agriculture, particularly in semi-arid regions.

However, he identified low public awareness and high mortality rates among young rabbits as major challenges hindering the sector’s growth.

He urged students and youths to take advantage of opportunities in rabbit farming by starting small-scale ventures that could grow into profitable agribusinesses, while calling on government and private sector players to invest in the development of the rabbit value chain.

In his remarks, the Provost of the Bauchi State College of Agriculture, Dr Ahmed Isah, described the event as timely and impactful, noting that it would encourage students to embrace self-employment through agriculture.

“Such initiatives are critical in addressing unemployment. Graduates can become employers of labour through ventures like rabbit farming,” he said.

He also encouraged members of the public to engage in rabbit production, describing it as a profitable and easy-to-start enterprise with the potential to improve livelihoods and boost the nation’s economy.

punch.ng

FOLLOW US ON:

FACEBOOK

TWITTER

PINTEREST

TIKTOK

YOUTUBE

LINKEDIN

INSTAGRAM

Continue Reading

Trending