Lagos is 2nd Most Expensive City after Moscow

The Hogg Robinson Group (HRG) Hotel Survey has revealed Lagos as the second most expensive city in the world for travellers after Moscow. Lagos has an average hotel room rate of £117 ($176.5 or N28,241).
Lagos enjoys high occupancy factor due to increased demand supported by presence of O&G industries and multinational companies.
With s growth of 13.66 percent year on year as at the third quarter of 2013, branded hotel rooms in the Lagos metropolis are 2,200, while non-branded rooms are 3,000. The hospitality industry in Nigeria has garnered over $500 million investments in less than a decade for both bBig and small players.
The survey further reveals that nine of the world’s top 10 hotels have thriving businesses in Nigeria. Some of them include Sheraton, Protea, Southern Sun, Sofitel, Wheatbaker, Oriental, among others.
Several smaller hotels and restaurants employ the majority of the hospitality workforce. Lagos holds 60 percent of the country’s total hotel room capacity. There are however concerns about work conditions and income levels in Nigeria.
Nigeria is expected to be the fastest-growing African market over the next five years, exceeding South Africa and Mauritius. More international hotel brands are in the pipeline, and the sector will continue to be dominated by foreign brands.
Lagos is the most preferred destination of some international brands expected in 2014.
For instance, Marriott Hotel is headed for Lagos, Swiss International Hotels (Lagos and Port Harcourt), Park Inn by Radisson (Abeokuta).
Bismarck Rewane, chief executive of Financial Derivatives Company Limited said, more hotel rooms already in the pipeline for 2015. This, according to him, signifies increased business confidence
Already intense competition in the sector is expected to increase further. Marriott recently finalized a deal to buy Africa’s largest hotel chain, the Protea group, for $186 million. Marriott International Inc. and Mali-based Groupe Azalai Hotels are also adding rooms on the continent.
Acquisitions will almost double Marriott’s hotel chains globally.
Acquisitions will give Marriott more than 23,000 rooms in Africa. Protea is an established brand in Africa and it owns at least 11 hotels across Nigeria.
Investments in Nigeria valued at $70 million.
Louvre Hotels Group, a unit of Starwood Capital Group LLC, will open as many as 16 hotels in Africa in 2014.
Rewane said Sub-Saharan African economies are expected to outpace every region except developing Asia in 2014.
“Improved business confidence is expected to fuel growth by increasing business and leisure travel”, he said.
Rewane said Sub-Saharan region has grown at an annual average of five percent and that 56 million travellers visited Africa in 2013, up six percent from 2012. The figures are projected to increase similarly in 2014.

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