Nigeria's hospitality sector evolving: Investment opportunities, pitfalls to avoid, and ecosystem needs
Boulevard Hotel Group CEO Ekene Nnabuihe says Nigeria's hospitality sector has evolved from basic accommodation to sophisticated businesses requiring data-driven revenue management. Speaking to Nairametrics, he identifies midscale and upscale hotels in cities like Lagos, Abuja, Port Harcourt, Enugu, Asaba, Owerri and Ibadan as top investment opportunities, plus extended-stay and lifestyle hotels.
Nnabuihe highlights Nigeria's beach hospitality potential, citing Boulevard's 84-room upscale oceanfront hotel opening November. He stresses beach tourism needs ecosystem development - infrastructure, accessibility, marketing, safety and experiences - not just hotels.
Critical investor mistakes include skipping feasibility studies, underestimating operational costs (staffing, marketing, tech), and insufficient working capital for 6+ months post-opening. He warns that poor initial positioning is hardest to fix later.
While international brands offer GDS access and loyalty programs, Nnabuihe notes indigenous brands like Lagos Continental can compete with local market understanding and operational excellence. Success requires treating hotels as commercial businesses, not just real estate, with professional management as key to guest experience and profitability.
Will Nigeria's hospitality growth focus on sustainable ecosystem development or continue prioritizing luxury real estate over market-driven midscale opportunities?