With the relative stability in the economy and political scene, most stakeholders in the Nigerian hospitality business are optimistic of appreciable growth in the sector this year.
For the stakeholders, the outlook is very positive as most hotels are better managing the traditional lull in the business this year than same time last year.
The lull is usually between late December till February ending resulting in huge revenue loss due to very low occupancy, poor government and corporate patronage, as businesses and government agencies are just opening and adjusting for New Year’s activities.
Comparing occupancy rate this time last year and now, the Nigerian hospitality sector is experiencing better patronage, hovering between 30 and 40 percent, which is unprecedented in a lull season.
Speaking on the development, Shola Adeyemo, public relations/marketing manager, Transcorp Hilton Abuja, notes that early passage of the 2020 budget has impacted positively on the sector. The budget, which is the nerve of the economy, has generated lots of economic activities that have also benefited the hospitality sector, unlike this time last year when businesses were skeptical of the direction of the economy.
He also discloses that the traditional lull in business last year lasted through the first quarter of the year because 2019 was an election year. With the postponement of the elections, business activities did not
stabilise across the first and second quarters of 2019.
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Also speaking on the outlook for the sector this year, Ronald Stilting, general manager, Ibom Hotel and Golf Resort, assures 2020 would be good for the sector because of the slightly economic as well as political stability, with the election tribunals over.
The positive development, according to him, would encourage more activities in the economy, boost hotel patronage and woo more investments, especially foreign investors who are going to take advantage of the stability.
Despite the fact that 2019 was an election year, the Ibom Hotel and Golf Resort general manager notes that the Nwaniba-based resort in the outskirt of Uyo, Akwa Ibom State, recorded 13 percent more room night in 2019 than in 2018. With the stability, he assures that the resort hopes to make additional 14 percent growth this year, while the Nigerian hospitality sector at large would gain more with an occupancy expected to average 70 percent this year.
In the same vein, Adeyemo predicts that Transcorp Hilton Abuja would maintain an average occupancy of between 60 and 65 percent, while occupancy nationwide would average 60 percent. He hinges his growth
prediction on improvement on security and relative stability in the economy and political scene.
Ada Ojukwu-Mathews, sales and marketing director, Radisson Blu Hotel Lagos Ikeja, assures that the Radisson brand, which has seen steady growth in Nigeria since its debut in the country with the converted
Radisson Hotel Lagos Ikeja, would continue this upward growth in 2020.
“Although it has been a tough year, we are working hard to achieve a year-on-year growth,” Ada says and further noting that Radisson and its sister brands within Radisson Hotel Group has identified potential for
more growth and presence in the market due to the increase in local and international engagements, and new entrants.
Emmanuel Ele, CEO, Six Regions Hotel, a hospitality consulting firm, notes that the early passage of the budget has truly boosted economic activities, clear the air on the direction of the economy to investors
and encourage spending by government, which is expected to impact corporate and the public at large Including hotel guests.
Ele says the first and second quarter of this year would witness huge investment flow in the hospitality sector as investors are better informed on the direction of the economy, hence seek right partnerships to commence work on new projects or to finish existing ones.
Ele look forward to a robust year with occupancy averaging 70 percent in the sector, as well as, many foreign investors looking the way of Nigeria because of the huge potential of the hospitality sector.
