Nigeria’s economy drives hotel growth
13 Sep 2018 - by
There is vast opportunity for hotel growth in Africa, with Guy Stelhik, chief executive of BON Hotels, saying there are times when up to three or four proposals for hotel projects in Africa hit his desk per day.
Stehlik was presenting a session on Growth and Leadership in Nigeria, during the recent Into Africa online expo. He said per year there were three million new middle-class Nigerians entering the market, into the domestic travel space, and into the corporate space.
“Nigerians have recently had the benefit of upgraded roads, better regional flight arrangements, and world-class regional airlines,” Stehlik said. “But the one thing that has been missing, in our opinion, is world-class, midmarket hotels.” He said the traditional model from the big hotel groups was to build a mega-hotel in a city and then not necessarily expand any further.
Stehlik pointed out that the opportunities in Nigeria stemmed from an economy that was strengthening. GDP growth in the country is three percent, and is forecast to increase to four to six percent in the next two years.
He added that Lagos currently had the highest occupancy growth in Africa, 14,8% up on last year, but also had the highest decline in ADR (average daily rate), which, he said, could be the result of the number of new hotel projects in the city.
To listen to Guy Stehlik’s full presentation on Growth and Leadership in Nigeria, visit the Into Africa website and register for access.