Abuja hotels saw an increase in occupancy in 2015 despite the Boko Haram insurgency. Average room rate did not perform as well with a substantial decrease from $325.00 to $275.00. Like Lagos, this is due in large part to the lack of international guests and an increase in local guests. Many new hotels are planned for Abuja over the next five years, which illustrates the confidence in which the market is held for the longer term. Accordingly, both Lagos and Abuja experienced reduced hotel values, however these reductions were less severe than 2014.
Abuja 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. Hence, Abuja will see a drop in values of 2.1%, suffering from a massive drop in occupancy. 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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