Nigeria’s hospitality industry is projected to reach $2.61bn by 2029, driven by rising domestic tourism and increased investment, according to a 2025 Nigeria real estate report by Ubosi Eleh & Co.
The report stated, “By 2029, the projected market revenue will be in the range of US $2.61bn, with the number of users in the hotel markets topping 18.78m. Simply put, the hospitality industry continues to have a positive and dynamic outlook for years to come.
“Recovering from the covid-induced slowdown, bookings have steadily improved, and with the rise in costs of living with the attendant inflation, room rates have actually gone up. We project another five to 10 per cent increase in room rates in the major hotels as the cost of running their facilities profitably increases.
“According to statista.com, the revenue of the hospitality industry in Nigeria will reach a staggering US $1.67bn by 2025 with an annual growth rate of 11.75 per cent between 2025 and 2029. There is now a full return to in-person conferences, seminars, and workshops, which remain veritable sources of income in diverse ways for the hospitality sector.
“The Lagos market has over 3300 hotels with estimated room availability at about 70,000 rooms. The international brand and brand-name hotels enjoy greater patronage in every way. The BON Hotels group, which has 10 operational BON hotels in Nigeria, intends to open another 22 hotels and residences in the next few years. Immediate locations include Kano, Ibadan, Warri, Asaba, and Port Harcourt.
“In examining the outlook for the hospitality industry, we have also noted the impact of short lets, like Airbnb, on the hospitality industry in major cities like Lagos, Ibadan, and Abuja. These cities are home to thousands of short lets with prices going as high as N600,000.00 per night in places like Ikoyi and Victoria Island in Lagos.”
He however, lamented that the sector still remains very informal, unregulated, and driven primarily by word of mouth, referrals, personal experience, and online platforms.