Unpacking Nigeria’s 2024 hospitality outlook

Africa is positioning itself as one of the fastest-growing tourist destinations globally, with over 100 million tourists visiting the continent in 2023. With this positive momentum, the question arises: Can the hotels market sustain its recovery and resilience in 2024? Trevor Ward, the Managing Director of W Hospitality Group, sheds light on the outlook for Nigeria's hospitality sector. In the interview, Ward highlighted key insights into the performance of the hotels market in 2023 and provided forecasts for the year ahead. Ward noted that the occupancy levels in Africa, on average, have returned to 2019 levels post-pandemic. However, standout cities like Lagos and Abuja exceeded expectations with occupancies of 75% and above, driven by increased domestic leisure demand. These cities outperformed many other African counterparts in terms of growth compared to both 2019 and 2022. Moving forward, Ward emphasized that the bulk of investments in the hospitality sector are flowing into Egypt and Morocco, with limited investment in countries like Kenya. He mentioned that international investments are scarce, with most funding coming from domestic sources, citing challenges with locally sourced finance in several African nations. Addressing the significance of visa-free regimes in boosting tourism growth, Ward highlighted the importance of regional movement within Africa. When looking ahead to 2024, Ward forecasted strong growth for cities like Abuja, Lagos, Casablanca, and Cape Town, emphasizing a blend of business hubs and leisure destinations driving the market. Discussing the performance of individual hotel brands in Nigeria, Ward observed that major chains like Marriott and Accor are dominating the landscape, transcending multiple countries, including Nigeria, Morocco, and Egypt. While revenue predictions for 2024 are challenging due to currency fluctuations across the continent, Ward pointed out common headwinds faced by the industry, such as interest rates, shipping costs, inflation, and impending debt maturity. He expressed concerns about the prolonged regulatory processes hindering new hotel developments and openings, which could potentially miss the growth cycle of demand. Despite these challenges, Ward remains cautiously optimistic about the sector's sustained recovery and resilience moving forward. Reflecting on the conversation, optimism looms large for a brighter future, where Nigeria's hospitality sector navigates through obstacles to thrive in the evolving landscape of the global hospitality market. As the industry grapples with uncertainties and hurdles, stakeholders are poised to adapt and innovate, fostering a resilient and vibrant ecosystem that welcomes travelers from far and wide.