In 2015 Lagos experienced an increase in occupancy compared to 2014 although below historic levels. Unfortunately the change in focus to domestic travelers has resulted in a sharp fall in ADR. STR Global analysts cite Boko Haram conflicts in the country as well as uncertainty during the Nigerian general elections and low oil prices as negative factors contributing to Lagos' overall performance.
The long term remains positive with Carlson Rezidor announcing the signing of its first Quorvus Collection in Africa: the 5-star, 244-room luxury Emerald Grand Hotel & Spa in Lagos, Nigeria.
Lagos is struggling to regain the confidence of tourists and investors. The fall in prices of gas and oil slowed the economy down in 2016, security is a massive concern for travelers and the accessibility to both cities is not improving. The level of demand and occupancy is expected to be down, although Lagos should be less impacted owing to its position as capital. The hotels' value in Lagos is expected to rise by 2.5% thanks to a rise in average rate and REVPAR.The improvement of the security situation and the economic recovery will partly condition the future of the hotels investment playground in Nigeria.