Nigeria's Hotel Boom: Inside the Surge in Hospitality Investment

Nigeria's hospitality sector is witnessing an unprecedented construction boom, a development that signals investor confidence, post-pandemic economic revival, and a growing appetite for premium accommodation experiences across the country.

- BY NIYI JACOBS

According to an extensive investigation by BusinessNG, no fewer than 750 new hotel projects are currently at different stages of development across the nation. These developments are projected to inject over 75,000 new hotel rooms into the market within the next few years.

This hotel boom is being led by international chains and major local developers targeting both the leisure and business travel segments. With rising demand for upscale lodging, expanding business travel, and shifting domestic tourism patterns, Nigeria's hotel pipeline is now the most robust it has been in over a decade. Lagos State dominates this expansion wave, accounting for about 51% of all ongoing hotel projects - a staggering 351 developments within its borders. The Federal Capital Territory (FCT) follows with 113 projects, representing 15% of the national figure.

Other states witnessing notable growth in hotel construction include Rivers (8.5%), Oyo (6.4%), Ogun (5.2%), Delta (4%), Akwa Ibom (2.1%), and Ondo (0.9%). The remaining 8% of developments are spread across 31 other states, indicating broad-based national interest in expanding hospitality infrastructure.

A deeper dive into the composition of these projects reveals that global hospitality giants — including Marriott International, Accor Hotels, Radisson Hotel Group, Hilton, and Wyndham — are responsible for at least 21 five-star hotels currently being developed. These luxury brands are investing heavily in both new builds and upgrades, aiming to capture Nigeria's emerging leisure economy and the high-end business traveler market.

Marriott Leads in Strategic Expansion