Boom in hospitality sector reaches unprecedented level,…as economy rebounds, Nigerians embrace lifestyle changes 

The nation’s hospitality sector is experiencing a period of phenomenal growth, with new hotel projects surging to record heights, Business Hallmark’s investigation has revealed.

According to a recent survey conducted by BH, at least, 750 hotel projects, both major and moderate, are currently in the developmental phase, poised to introduce about 75,000 rooms nationwide.

Leading this wave of growth is Lagos State, Nigeria’s industrial and commercial capital, which accounts for roughly 51% of all national hotel developments, translating to 351 individual projects.

The Federal Capital Territory (FCT) follows as a substantial contributor, with around 113 new hotel developments, representing 15% of the national figure

Also, Rivers, Oyo, Ogun, Delta, Akwa Ibom and Ondo States are witnessing substantial growth, with 8.5%, 6.4%, 5.2%, 4%, 2.1% and 0.9 respectively. The remaining 8% are spread across the remaining 31 states of the federation.

A breakdown of the survey result shows that  international hotel chains, namely Marriott, Accor, Radisson Hotel Group, Wyndham and Hilton are presently constructing twenty-one 5-Star hotels across the country.

A Leisure Economy

Leading the pack is Marriott International, with eight projects, including the Courtyard by Marriott currently under construction in Lagos and the Courtyard by Marriott Abuja.

Marriott is closely followed by Accor with five  projects, Radisson Hotel Group and Wyndham tied in third with three hotel developments apiece, while Hilton Group is undertaking two major projects.

Checks, however, revealed that while 60 percent of the projects are already under construction, the remaining 40 percent remain in pre-construction stages.

Specifically, in March 2025,  Marriott performed the groundbreaking ceremony of another hotel brand, Courtyard by Marriott, in Ikeja GRA, Lagos.

The 100-room edifice is being built next to the Lagos Marriott Hotel located at Joel Ogunaike, Ikeja GRA, Lagos.

Scheduled to be completed within 24 months, the hotel  will feature state-of-the-art facilities including expanded meeting spaces and world-class amenities designed to cater to both local and international guests.

The official groundbreaking ceremony of the hotel was attended by dignitaries, including the Regional Vice President of Marriott International for Sub-Saharan Africa, Johan Cronje; Chairman of SIFAX Group, Taiwo Afolabi; his wife, Folashade; the paramount ruler of Iwoland in Osun State, HRM Oba Rasheed Akanbi, and many others.

Speaking at the groundbreaking ceremony, the Chairman of SIFAX Group and MacFolly Hospitality Limited (holder of the Marriott Hotel franchise in Nigeria), Taiwo Afolabi, noted that the growing demand for premium hospitality experience in Lagos spurred the expansion.

“About four years ago, we launched the Lagos Marriott Hotel, which is next door and the experience has been very fascinating due to the world-class lodging, dining, and event experience that we offer our customers.

“We have not only met but also exceeded our expectations in terms of patronage and this demand keeps growing by the day.

“This new hotel, when it comes on stream, will further validate our unwavering commitment to delivering premium hospitality service in Lagos,” the visibly elated Afolabi had declared.

In the same vein, Radisson Hotel Group is adding three new hotels with a combined capacity of over 400 rooms to its Nigerian portfolio of 11 iconic hotels.

These include the Radisson Collection Hotel and Conference Center, Abuja; Radisson Blu Hotel, Abuja CBD and the Radisson RED Lagos located on Victoria Island.

The 249 room Radisson Collection Hotel and Conference Center, Abuja will have an expansive range of rooms, from standard rooms and apartments to lofts and presidential suites upon completion.

Spanning across 3,000 square meters, the meeting spaces will consist of a dividable conference hall, five meeting rooms, a board room, as well as a pre-function area.

Also, the 104-room Radisson Blu Hotel, Abuja, scheduled to open this year, is located in the Central Business District (CBD) of Abuja.

Upon completion, the hotel will have a stylish piano bar and an all-day dining restaurant along with fitness and wellness facilities and 245 square meters of meetings and events space.

The third new Radisson Hotels project, the Radisson RED, Victoria Island, Lagos, is currently under construction.

Scheduled to open in the fourth quarter of 2025, the 62 room hotel will introduce the country to the renowned Radisson RED brand and its unique food and beverage concepts through its lobby bar, all day dining restaurant and rooftop bar and terrace, which industry experts said would be the most coveted rooftop venue in the country.

Other facilities coming with the hotel include a gym and pool along with 249 square meters of flexible meetings and events space, consisting of a conference room, a board room and two meeting rooms.

Speaking recently on the new hotel projects, the Senior Director, Development, Africa at Radisson Hotel Group, Erwan Garnier, said the management of the hotel group is proud of its  accelerated expansion in Nigeria, which he claimed mirrors its focus territories of Lagos and Abuja and the expansion of its diverse brands from the premium luxury lifestyle brand to upper upscale brand

“These three signings have to date this year, increased our Nigerian pipeline by 50% with a rise from nearly 850 rooms to almost 1300 rooms.

“They are all under active construction as well, aligned with our African accelerated pipeline strategy which has kept us in the steady lead in terms of pipeline materialization”, Garnier had stated.

Race for Control

French multinational hospitality company, Accor Hotels, is also building five hotels across the country. One of the new projects, the Novotel Hotel located on Ahmadu Bello Way, Victoria Island, Lagos, is being built by Accor Hotels in partnership with a Nigerian company, Ekulo Group of Companies.

The 10-floor development has an estimated completion date of Q3:2025. Once completed, the hotel will consist of 170 luxury hotel rooms.

The facilities and amenities that will be available in the  hotel include a 400sqm meeting room, a lobby and bar, an all-day dining restaurant, a swimming pool and a pool bar.

In the same vein, the Hilton Group announced the expansion of two of its global brands – Canopy by Hilton and Hilton Garden Inn – into Nigeria in May 2024.

The two projects, Canopy by Hilton Lagos Victoria Island and Hilton Garden Inn Enugu are currently under construction.

When fully completed, Canopy by Hilton Lagos Victoria Island will feature 176 guest rooms and suites, including executive and presidential suites that offer panoramic views of Victoria Island, including the Atlantic Ocean.

While the hotel will offer 10 meeting rooms and a spacious 300-square-metre conference room for business and events, leisure guests and patrons will be provided state-of-the-art fitness centre and an outdoor swimming pool.

On the other hand, Hilton Garden Inn, located in the Coal City of Enugu in Enugu State, is designed to house 150 guest rooms and suites, a lobby bar, a shop, an all-day dining restaurant, three flexible meeting rooms, a gym and an outdoor pool.

Speaking on the expansion of it’s branches in Nigeria fourteen months ago, Vice President, Development, Middle East and Africa, Hilton, Carlos Khneisser, said the new signings reaffirmed Hilton’s commitment to Africa’s hospitality sector and confidence in Nigeria as a dynamic and growing market.

“We are excited to announce the signing of Canopy by Hilton Lagos Victoria Island and Hilton Garden Inn Enugu.

“Through our partnerships with Hotel Signature Limited and FIT Group, we will offer guests more choices and a differentiated experience, whilst ensuring reliable and friendly stays across the country”, Khneisser stated.

Apart from these major hotel developments by international hospitality giants, several big, medium and small hotels are also springing up in the country, while old ones are being upgraded.

One of such iconic hotels that is undergoing upgrading is the Premier Hotel located on the Mokola Hill, Ibadan, Oyo State.

The hotel, owned by the Odua Group of Companies, was shut down in January 2023 by its six-owner states of Oyo, Ondo, Osun, Ogun, Ekiti and Lagos for it to be remodelled into a 5 -star hotel.

The hotel redevelopment project, which is in advanced stages, includes remodelling, renovating and upgrading the existing structure as well as adding new and modern facilities befitting of a 5-star world-class hotel.

The redevelopment, BH learnt, is being handled by a seasoned international hotel development and management company with the expertise, financial and technical capacity.

According to a new document titled: ‘Hotel Development Pipeline Report’ by W. Hospitality Group, a Lagos-based firm obtained by BH, there are 577 hotels and resorts, with 104,444 rooms in the development pipeline globally, up by 13.3% recorded in 2024, which is way ahead of the single digit pipeline growth reported by the leading international chains.

According to the report, 61% of rooms (4,468) remain in pre-construction, and 39% (2,852) are already under construction in Nigeria with Lagos clearly in the lead with over 50 percent.

Turn-around in Economy

Industry experts who spoke to our correspondent on the surge in hotels population attributed it to the revival of the nation’s economy, especially the oil and gas sector, as well as lifestyle changes by many Nigerians.

Speaking on the development, the Group General Manager of Continental Hotels, Karl Hala, attributed it to several factors, especially the turnaround of the nation’s economy,

“The sector’s growth potential is substantial, driven by a surge in domestic tourism and increasing business travel brought about by the opening up of the nation’s  economy”, Hala explained.

In his own submission, the President of Lux Homes and Apartments in Osogbo, Osun State, Dr. Segun Ojo, attributed it to a resurgent economy and the change in lifestyle by many Nigerians

“Before now, many Nigerians used to stay in their country homes or family houses when they travel home.

“The habit has, however, changed, with many, especially the educated and more urban dwellers now preferring to stay in hotels.

“There are several reasons for this changing trend. One is that it saves travellers huge expenses preciously splashed on putting their accommodations in good conditions there during their often short visits.