La­gos

Tourism Tattler - - BUSINESS & FINANCE - For de­tailed anal­y­sis visit http://hvi.hvs.com/mar­ket/africa/Nige­ria_-_La­gos

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.

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