The Lagos Hotel Industry remains dynamic and resilient amidst the obstacles to growth particularly infrastructural challenges. The hotel industry in Lagos State has over 2,000 hotels with an estimated room supply of about 70,000 rooms. Although this scenario creates a greater array of choices, international brand hotels in Lagos continue to dominate the sales volumes both in the business and leisure travel categories. The dominance is as a result of the perceived higher quality of services offered by the international brands, and better security standards. We however believe that the growing presence of international brands in Lagos State would encourage local brand hotels to improve service levels and thus, overall industry practices.
However, given the ongoing COVID-19 pandemic ravaging economies around the globe, the hotel industry in Lagos has experienced significant challenges leading to a material drop in demand by guests. This slowdown in demand has been driven by the travel advisory warnings issued by various countries, thus leading to a drop in international flights into Nigeria. This risk scenario will continue to impact the demand for hotel services negatively, specifically in the accommodation space as hotel guests are largely on business travel.
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