Connect with us

Travel/Tourism

Nigeria Contributes 49.6% to West African Hotel Pipeline

Published

on

By Modupe Gbadeyanka

West Africa has been at the heart of the continent’s growth and economic transformation in recent years. Notwithstanding the sharp slowdown experienced in 2016 and 2017, the region’s economy is expected to rebound in 2017 onwards.

Commodity-based economies, like Nigeria, are slowly recovering from the fall in oil prices and oil production, while countries like Côte d’Ivoire, Mali, and Senegal have shown economic resilience and sustained growth.

As many of the countries continue to stabilize – politically and economically – the region will be better integrated from a local and international context. This increased integration raises the need for quality travel and accommodation infrastructure.

The growth of the hotel sector is an important indicator of how well a market is developing its travel infrastructure, and the indicators for West Africa are mixed.

According to W Hospitality Group’s 2017 Hotel Chains Pipeline report, West Africa has a pipeline of 114 hotels and 20,790 rooms, accounting for 42 percent of the Sub-Saharan African hotel pipeline.

However, of these hotel deals signed and planned, only approximately 9,875 rooms, or 48 percent have moved to construction.

In addition, projects in the region have longer than average development periods at approximately six years, compared to the two- to three-year development program that is usually planned.

Some of the reasons for these delays are high capital investment required, lack of access to adequate financing options, limited access to raw materials, high construction and material costs, a heavy reliance on importation, inadequate technical capacity to manage the development program, and other barriers to entry.

Of the hotel pipeline for West Africa, Nigeria contributes 49.6 percent or more than 10,000 hotel rooms (in 61 hotels).  Nigeria is also the top market in Africa for planned rooms.

The other substantial markets in West Africa include Cape Verde with 11 hotels and 3,478 rooms, and Senegal with 14 hotels and 2,164 rooms. These three markets contribute a total of 15,955 hotel rooms, or 77 percent of the West African hotel pipeline.

Approximately 57 percent of the pipeline in these countries have moved to site, however some of these projects have been stalled for some time. In a country, like Nigeria, this can be significant.

For instance, 40 percent of Nigeria’s pipeline was signed between 2009 and 2014, and as the chart above illustrates, a large portion of these projects is still in the “planning” phase. In Senegal only approximately 44 percent of the deals signed have moved to site.

Although the pipeline of hotels to the sub-region is encouraging and indicative of strong investor interest, the low completion rate of projects could be troubling for the development of the hotel sector.

It is also difficult for the hotel chains whose expansion plans in these markets rely on partnerships with local and foreign investors to develop these hotels. All the major global hotel chains have strong expansion plans to increase their operating presence on the continent, and in West Africa.

The growth strategy for these hotel chains have traditionally relied on their development teams signing deals for new build hotels, primarily with their flagship brands, with local owners.

However, more chains are adopting creative expansion strategies, such as conversions and rebranding of existing properties, acquisition of existing local hotel operators, effecting growth through the franchise model, or developing owned hotels first.

Senior representatives from major hotel groups such as Hilton, Carlson Rezidor and Mangalis, and other key hotel experts will be discussing growth strategies in the ever-changing West African economic environment at the upcoming West Africa Property Investment (WAPI) Summit to held on November 28 & 29 at the Eko Hotel & Suites, Lagos Nigeria.

Hilton recently announced a plan to support the conversion and rebranding of 100 existing hotels through its Hilton Africa Growth Initiative, by committing $50 million to supporting these conversions.

Commenting ahead of the conference, Mike Collini, Vice President Development Sub-Saharan Africa, Hilton, remarked on the opportunities presented by the inadequate hotel supply.

He said, “To overcome this we are looking at rolling our focused service brands in key markets with a focus on our Hilton Garden Inn product. We are also pioneering the use of modular construction with a new Hilton Garden Inn in Accra, which is a fast and cost-effective build model for owners and developers.”

Andrew McLachlan, Carlson Rezidor’s Senior Vice President Africa & Indian Ocean for Development, said in a direct comment to Estate Intel, “Today we have 17 hotels open or under development in the region and in our new 5-year development strategy we have identified five Tier 1 Cities in West Africa (Lagos, Abuja, Accra, Abidjan and Dakar) where we see scaled growth opportunities…across the luxury to midscale hotel segment.”

McLachlan also commented on the model of conversion of existing hotels, saying that the group sees an opportunity to adopt this model to reposition the hotel under its management, particularly in cases where the existing hotel may not be performing to its full potential.

Newcomer and regional hotel chain, Mangalis Hospitality Group, intends to increase its presence in West Africa, in the next five years. Wessam Oshaka, in a statement to Estate Intel reiterated the group’s “ambition to operate at least 13 hotels by 2020 in West Africa.” The group had initially focused development on owned hotels in core markets such as Cote d’Ivoire and Senegal, but the second phase of development will now focus on management agreements, resulting in a portfolio that will comprise 75 percent owned hotels and 25 percent managed hotels.

Oshaka explains that, “Africa as we know, suffers from a lack of properties responding to the needs of modern travellers.

“The region comes with its challenges especially in terms of financing, logistics and skilled workforce. Taking all these factors into account, we adopted the most suitable approach for a healthy growth plan.”

The hotel sector discussions at WAPI will expand on these topics, highlighting the success cases and the more challenging markets. The discussions will also centre on key indicators of hotel performance in West African markets.

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

Click to comment

Leave a Reply

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

Travel/Tourism

Emirates Showers Dubai Passengers With Exclusive Offers

Published

on

Emirates Dubai Summer Surprises

By Modupe Gbadeyanka

Emirates passengers travelling to or through Dubai will enjoy some exclusive offers, including complimentary stays at the iconic JW Marriott Marquis and hundreds of discounts through the popular My Emirates Pass, the airline operator has said.

In a statement, the company stated that from June 22 to July 12, 2026, travellers who purchase an Emirates return ticket in First Class or Business Class are invited to enjoy a two-night stay, while customers booked in Premium Economy Class or Economy Class can enjoy a complimentary one-night stay.

It was disclosed that this special offer is valid for all return tickets to or stopping over in Dubai for more than 24 hours, for customers travelling between June 25 and September 30, 2026.

In addition, passengers can enjoy over 600 offers available in the popular My Emirates Pass, which provides access to spas, restaurants, big-name retailers and much more by simply showing either a physical or digital boarding pass along with a valid ID at participating venues to enjoy the benefits.

These exclusive offers are being offered by Emirates through its Dubai Summer Surprises, which enters its 28th year in 2026.

Further, from July 2 to August 30, residents and visitors can expect an extraordinary live Beat the Heat DXB concert series, cultural events and an array of wellness and fitness activities, as well as big savings and exclusive, limited-time experiences in the city’s malls and lifestyle destinations.

“Whether visitors are seeking relaxation, adventure, entertainment, or a combination of all three, Dubai is the ideal start to any summer vacation.

“We’re inviting passengers to enjoy even more of the city with a complimentary hotel stay to take advantage of the exceptional range of shopping, entertainment, dining and family-friendly experiences that define the Dubai summer experience, when stopping over as part of your journey or visiting Dubai as your final destination,” the Deputy President and Chief Commercial Officer of Emirates, Mr Adnan Kazim, said.

Continue Reading

Travel/Tourism

Akida Hills to Transform Jabi Lake Waterfront to Tourism Destination

Published

on

Akida Hills Jabi Lake Waterfront

By Modupe Gbadeyanka

The popular Jabi Lake waterfront in Abuja is set to become a major leisure and tourism hub in the country, thanks to Akida Hills, which is making efforts to enable visitors to enjoy the transformation from December 2026.

The Nigerian mixed-use real estate and destination development company has been allocated a 3.36-hectare development site within the approximately 14-hectare waterfront district, where it will deliver a phased mix of recreational, entertainment, and public leisure experiences.

According to the deal, the first phase of the development will introduce the destination’s first operational attractions, including dining and leisure experiences, water-based activities, structured weekly programming, a seasonal lights festival, and the dancing musical fountain as its signature attraction.

Additional experiences and amenities will be introduced in subsequent phases as the destination evolves.

Designed as a central landmark within the waterfront experience, the dancing musical fountain will combine choreographed water displays, synchronised lighting, and music to create a distinctive evening attraction and focal point for visitor engagement.

Upon completion, the development is expected to serve as a major hub for tourism, recreation, entertainment, and community engagement, further strengthening Abuja’s position as a leading leisure and lifestyle destination.

Construction and implementation activities will progress in phases, with additional announcements on attractions, programming, and commercial partnerships expected ahead of the December 2026 launch.

“Jabi Lake represents one of the most significant opportunities to create a world-class waterfront destination in Africa.

“Through this development, we aim to deliver experiences that attract residents, visitors, and tourists year-round while contributing to economic growth, job creation, and Nigeria’s tourism appeal.

“Our vision is to establish Jabi as a defining waterfront destination for the continent – one that demonstrates the transformative power of destination-led development and reimagines how people experience a city,” the founder of Akida Hills, Mr Kayode Bamisile, said.

Continue Reading

Travel/Tourism

FAAN Mulls New October Deadline for Airport Taxi Upgrade Policy

Published

on

Airport Taxi Upgrade

By Adedapo Adesanya

The Federal Airports Authority of Nigeria (FAAN) is considering extending the deadline for its airport taxi upgrade policy to October, following concerns raised by the Nigeria Union of Private Cab Operators.

The development was disclosed on Monday in Lagos by Mr Henry Agbebire, Director of Public Affairs and Consumer Protection at FAAN, saying that the possible extension followed complaints and concerns from airport cab operators, even as the authority maintained that the policy was designed to improve service standards across Nigerian airports.

“The policy aligns with international best practices and seeks to elevate service quality,” Mr Agbebire said.

He added that passengers deserved “clean, safe, comfortable and professionally maintained vehicles” within airport transport systems.

The FAAN spokesman dismissed claims that the authority had failed to engage operators on the policy, insisting that consultations had been ongoing.

He said FAAN maintained regular discussions with licensed transport providers operating within airport premises, stressing that engagement was conducted directly with corporate entities rather than unions or associations.

“Engagements on operational matters are conducted directly with affected corporate entities,” he said.

Mr Agbebire explained that discussions on the upgrade requirement began in July 2024, giving operators time to comply.

He noted that the original compliance deadline had already been extended twice—from January 2026 to June 2026—citing economic realities and the need to give operators adequate preparation time.

According to him, the policy was not intended to punish operators or restrict their participation in airport transport services.

“Operators have been afforded ample opportunity to prepare for compliance,” he stated.

However, he warned that further extensions beyond the proposed October deadline may not be granted.

Mr Agbebire acknowledged the role of airport cab operators in passenger movement, urging them to support the initiative aimed at improving service delivery.

He added that FAAN remains committed to passenger-focused reforms across Nigeria’s aviation sector.

Continue Reading

Trending