We need investments to boost hotel market, address seasonal demand that exceeds supply – Adedeji

In the last decade, the Nigerian hospitality industry has witnessed an impressive growth in the demand for hotel accommodation and related hospitality services across the year.

The demand is fueled mainly by the very active meetings, incentives, conferences and exhibitions (MICE) sector, year-round corporate travel and African diasporans, especially for the end-of-year homecoming.

But the annual homecoming by African diasporans otherwise coined as ‘Detty December’ is truly turning the corner for the hospitality industry in recent times.

In the 2025 festive season, over 1 million international travelers and Nigerians in the diaspora visited, amid huge demand for accommodation that put pressure on over 3000 hotels and less than 10,000 branded hotel rooms across the country, especially in Lagos.

Considering the above, Bayo Adedeji, founder, Lion Hospitality Partners, has called for massive investments in the hospitality industry to meet the growing demand, address room deficit, as well as improve on the quality of service.

Narrowing it down to ‘Detty December’ Adedeji, who doubles as the Group CEO of Wakanow, said that the recurring challenges, especially shortfall in accommodation experienced every December are clear signals that Nigeria’s hotel capacity is far below what current demand requires.

While airing his opinion in a discussion at the Naija7Wonders Meeting 3.0, hosted by Ikechi Uko, CEO, Akwaaba African Travel Market, where tourism, travel and hospitality stakeholders met to strategise for a better coordinated and more profitable ‘Detty December’ experience ahead of the 2026 season, Adedeji insisted that the shortfall in the supply presents a veritable investment opportunity in the hospitality industry.

“I want us to start looking at the cup as being full. Demand for hotels obviously exceeds supply. And when demand exceeds supply, suppliers begin to misbehave, because if you don’t want the room, the next person will pay for it,” he explained.

Also considering the huge influx, he insisted that there are insufficient hotel rooms for the volume of visitors, especially from the diaspora, coming into Nigeria, and Lagos, in particular.

The overwhelming demand, according to him, results in the complaints around high hotel rates, inconsistent service quality, and booking difficulties during the festive season, all pointing to a deeper structural issue.

The sure way to resolve the structure issue, according to him, is to increase capacity.

For him, ‘Detty December’ is a welcome development because it has increasingly become a global cultural attraction, drawing thousands of Nigerians in the diaspora and African Americans seeking cultural reconnection, entertainment, and social experiences in Lagos and other parts of the country.

As expected, the surge equally comes with pressure, amid stretching the capacity of many hotels to the limit, which he noted should not be seen as a challenge, but as an opportunity to invest more in the industry and reap more.

“As a businessman, I see it differently. I see the opportunity for us to invest heavily in hotels. Because if supply exceeds demand, hotels will now compete for customers. And when they compete, service improves, pricing stabilises, and the overall experience becomes better,” the Lion Hospitality Partners founder said.

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Meanwhile, Adedeji decried the scarcity mindset among suppliers, cautioning that they should jettison the idea that rooms will be filled regardless of service standards in anticipation of overwhelming demand.

He also sees investment opportunities beyond hotel rooms to modern conference and event centres.

According to him, the MICE sector is a cash cow that needs to be fully exploited, especially in Lagos, which lacks sufficient large-capacity venues to support the scale of concerts and gatherings that now define ‘Detty December’.

“We have just one conference centre in the whole of Lagos that can hold up to 5,000 people for concerts, we need more options,” he urged.

On his part, Lion Hospitality Partners has been in discussion for hospitality and event infrastructure investments with an investment firm.

When that comes to fruition, it will boost hospitality infrastructure, help in closing the gaps, as well as complementing other offerings of the company including: Wave Beach, Athena Beach, Kyma Beach, Unda Lounge, Lion Wonder Arena (Alausa, Egbeda and Ikorodu) and Doo&Shima Beach House.

Meanwhile, the stakeholders at the meeting agreed that ‘Detty December’ has outgrown its informal structure and now requires deliberate planning, infrastructure expansion, and coordinated action if Nigeria is to maintain its position as Africa’s end-of-year tourism capital.

The Naija7Wonders Meeting 3.0 is part of broader efforts by Akwaaba African Travel Market to ensure that the momentum generated by Detty December translates into sustainable tourism growth, improved visitor experience, and long-term economic benefits ahead of 2026.