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Nigeria’s hospitality industry is evolving as new investments, expanding hotel brands, and changing travel patterns reshape the sector.
As opportunities continue to emerge across business and leisure hospitality, operators and investors are also navigating the realities of developing, managing, and sustaining hotels in an increasingly competitive market.
In an exclusive interview with Nairametrics, Group Chief Executive Officer of Boulevard Hotel Group, Ekene Nnabuihe, shared his perspectives on the evolution of Nigeria’s hospitality industry and the opportunities shaping its future.
He also discussed investment trends, beach tourism, and the structural changes needed to strengthen the country’s tourism ecosystem.
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Nairametrics: Over the past two decades, you’ve worked across hotel sales, operations, development, and executive management. Looking at Nigeria today, where do you think the hospitality industry stands in its evolution, and what do you think investors, operators or even policymakers still misunderstand about the market?
Ekene Nnabuihe: Over the past two decades, I have seen the Nigerian hospitality industry evolve from a largely traditional accommodation business into a more structured and sophisticated sector. We have witnessed increased investment, the entry of international brands, and a growing understanding that hospitality is not just about building hotels, but about creating sustainable operating businesses.
However, one major area that is still misunderstood by many investors and operators is pricing strategy and revenue management. Hospitality is not simply about filling rooms; it is about maximising the value of every available room through data-driven decisions. Many hotels still rely on competitor pricing or cost-based pricing rather than understanding demand patterns, customer segments, booking behaviour, and market dynamics.
A hotel room is a perishable asset — once a room goes unsold for a night, that revenue opportunity is lost. The future of Nigerian hospitality will depend on operators adopting professional revenue management, technology, and international best practices to improve profitability and deliver better value.
The opportunity in Nigeria remains enormous, but success will come from treating hotels as sophisticated commercial businesses, not just real estate assets.
Nairametrics: Having worked across several Nigerian cities and other African markets, how would you assess Nigeria’s competitiveness as a destination for hospitality investment? What do you think we’re getting right, and where are we still falling behind countries that have built stronger tourism economies?
Ekene Nnabuihe: Nigeria remains one of the most attractive hospitality investment markets in Africa because of its population, strong business activity, entrepreneurial energy, and position as one of the continent’s largest economies. The demand drivers are significant — from corporate travel and domestic tourism to conferences, entertainment, and emerging leisure segments.
What we are getting right is the increasing recognition of hospitality as a serious investment sector. We are seeing more local investors, stronger hotel brands entering the market, and operators beginning to embrace international standards in service delivery, technology, and management practices.
However, where we still need to improve is in developing a more complete tourism ecosystem. Countries that have built stronger tourism economies have invested consistently in destination marketing, infrastructure, ease of travel, security, and creating experiences beyond the hotel itself. A great hotel can only go so far if the destination lacks connectivity, attractions, and a seamless visitor experience.
Nigeria has the resources, culture, and people to become a leading hospitality destination in Africa. The next phase of growth requires collaboration between government and the private sector to build destinations, not just hotels — because sustainable tourism growth comes when the entire ecosystem works together.
Nairametrics: From where you sit, which segments of Nigeria’s hospitality market currently present the strongest investment opportunities, and where do you think investors are still getting ahead of actual demand?
Ekene Nnabuihe: From my perspective, the strongest opportunities in Nigeria’s hospitality market are in the midscale and upscale segments, particularly hotels that are professionally managed, technology-driven, and positioned to serve the growing needs of business travellers, domestic leisure guests, and regional African travellers.
There is also significant opportunity in extended-stay products, serviced apartments, and lifestyle hotels, as guest preferences continue to evolve beyond the traditional short-stay hotel model. Cities with strong economic activity, such as Lagos, Abuja, Port Harcourt, Enugu, Asaba, and emerging commercial hubs, continue to present attractive opportunities when projects are properly positioned.
Where some investors are getting ahead of actual demand is in developing hotels based purely on real estate ambition rather than market fundamentals. Hospitality is not just about building more rooms; it is about understanding demand, location, customer segments, and operational capability. In some markets, we have seen investors focus heavily on luxury developments without sufficient depth of demand to support the product.
The future winners will be investors who combine good real estate decisions with strong brand positioning, professional management, and a clear understanding of the market they are serving.
Nairametrics: Across Africa, we’re seeing growing investment in resorts and leisure destinations. Do you believe Nigeria is finally beginning to recognise beach hospitality as a viable commercial asset rather than just a weekend leisure activity? What needs to happen for that segment to mature?
Ekene Nnabuihe: Yes, I believe Nigeria is beginning to recognise the potential of beach and leisure hospitality as a serious commercial asset. For many years, our hospitality market was predominantly driven by corporate and business travel, but we are now seeing a gradual shift towards domestic tourism, lifestyle experiences, and leisure-driven demand.
At Boulevard, we are currently developing an 84-room upscale beachfront hotel facing the ocean, scheduled to open in November, because we believe Nigeria’s coastline represents one of the country’s most underutilised hospitality assets. With the right positioning and professional management, beachfront hotels can attract not only weekend leisure travellers but also destination guests, corporate retreats, events, and international visitors.
For this segment to truly mature, we need to move from viewing beach hospitality as a short weekend activity to developing complete lifestyle destinations. This requires investment in infrastructure, accessibility, destination marketing, safety, and creating compelling experiences around dining, entertainment, wellness, and recreation.
Nigeria has the natural resources and market size to build world-class leisure destinations. The opportunity now is to develop them with the same level of professionalism, branding, and operational excellence that has made successful resort markets globally competitive.
Nairametrics: The hotel development pipeline remains heavily weighted toward upscale and luxury properties despite rising domestic travel. Why do developers continue to favour the upper end of the market, and what would need to change before more investors embrace the midscale segment?
Ekene Nnabuihe: I think it is important to differentiate between upscale and luxury, because they are often grouped together but serve different market segments. In Nigeria today, what we are seeing is actually a significant growth in upscale hotel development, particularly in emerging commercial cities such as Asaba, Owerri, Ibadan, and other regional hubs where demand for quality accommodation has increased.
The growth of upscale hotels is being driven by the expansion of domestic travel, regional business activity, and the increasing expectations of Nigerian travellers who want international standards without necessarily paying luxury prices. These markets are creating opportunities for well-positioned, professionally managed hotels.
At the same time, major cities like Lagos and Abuja have continued to attract luxury developments, particularly following the recovery of the hospitality sector after COVID-19. The pandemic accelerated demand for higher-quality experiences, branded hotels, and lifestyle offerings, especially among corporate travellers, expatriates, and affluent domestic guests.
For example, Boulevard is currently working with John Williams Hotels & Resorts on the development of a 216-room hotel in the Central Area of Abuja, for which we have signed a franchise agreement with Mövenpick, a recognised European luxury hospitality brand. This reflects the growing confidence in Nigeria’s ability to support internationally branded luxury hotels in key gateway cities.
However, I believe the midscale segment still presents a significant opportunity. For more investors to embrace it, there needs to be greater understanding that midscale does not mean lower quality. Globally, some of the most successful hotel brands operate in this segment by delivering consistency, efficiency, technology, and strong value propositions.
The future of Nigerian hospitality will require a balanced ecosystem — luxury and upscale hotels in the right markets, but also a strong midscale pipeline that can serve the growing domestic and regional traveller base. The key is not simply building more rooms but developing the right product for the right market.
Nairametrics: You’ve worked with hotel owners, developers, and operators throughout your career. Looking back, what are the most common mistakes investors make long before a hotel opens, and which of those mistakes are the hardest to correct later?
Ekene Nnabuihe: Having worked with hotel owners, developers, and operators across different markets, I believe many of the biggest mistakes in hospitality happen long before the first guest walks through the door.
One of the most common mistakes is developing a hotel without a proper feasibility study and a realistic business plan. Hospitality is not just about constructing a beautiful building; it is about understanding the market, demand drivers, competition, positioning, and the financial requirements needed to operate successfully.
Another major challenge is inadequate budgeting. Many investors focus heavily on construction costs but underestimate the operational expenditure required after opening. A hotel requires continuous investment in staffing, training, marketing, technology, maintenance, guest experience, and quality standards.
A critical area that is often overlooked is working capital. Investors need to understand that a hotel may take time to stabilise and build market share. Having sufficient working capital for at least six months after opening is essential to maintain service standards while the business grows.
Unfortunately, we often see hotel standards decline shortly after opening because owners are not prepared for the ongoing financial commitment of running a hotel. Something as visible as room amenities, breakfast quality, or service delivery begins to suffer when funding becomes a challenge.
The hardest mistakes to correct later are those related to poor planning and positioning. Once a hotel enters the market with the wrong concept, inadequate standards, or a weak operational foundation, rebuilding guest confidence and repositioning the brand can be extremely difficult. Successful hotels are not only built with bricks and mortar; they are built with proper planning, sufficient capital, and a long-term commitment to operations.
Nairametrics: Many investors assume that once a hotel is built, success largely depends on the property itself. In reality, what role does professional hotel management play in determining whether a hotel succeeds or struggles, and what do owners often underestimate about that process?
Ekene Nnabuihe: Many investors assume that once a hotel building is completed, success will naturally follow because they believe the physical asset is the most important factor. However, experience has shown that a building alone does not make a hotel.
A hotel is not simply a collection of rooms, furniture, and facilities; it is an experience. The real value of a hotel is created through the journey a guest goes through — from the moment they make a reservation, to their arrival experience, check-in process, interaction with staff, quality of sleep, bathroom experience, food and beverage service, and every touchpoint throughout their stay.
Professional hotel management plays a critical role in designing, implementing, and consistently delivering this experience. A strong management company brings the systems, standards, trained personnel, operational discipline, technology, revenue strategies, marketing expertise, and service culture required to transform a physical property into a successful hospitality business.
Unfortunately, many owners underestimate this process. They invest heavily in construction, design, and finishes but often do not appreciate that the success of a hotel is determined by what happens after the doors open. They sometimes view professional management as an expense rather than as the engine that protects their investment and drives long-term value creation.
The reality is that the owner and the professional hotel manager must work together as partners. The owner provides the vision, investment, and support, while the management team brings the expertise required to operate, position, and grow the asset. Without this partnership, even a beautiful hotel can struggle; with the right management approach, an ordinary building can become a successful hospitality brand.
The difference between a building and a great hotel is the experience created around it.
Nairametrics: Many hotel owners aspire to affiliate with international brands. Beyond prestige, what commercial value do they realistically bring, and are there situations where an independent or indigenous brand can compete just as effectively?
Ekene Nnabuihe: International hotel brands bring significant commercial value beyond the prestige associated with their names. One of the biggest advantages is global visibility and access to established distribution channels, particularly the Global Distribution Systems (GDS), loyalty programmes, reservation platforms, technology, brand standards, and international sales networks.
For many hotel owners, especially those targeting corporate travellers, multinational companies, and international guests, affiliation with a recognised global brand provides trust and market access that can accelerate demand generation. The brand also brings operational standards, training systems, revenue management expertise, and proven processes that help improve consistency and profitability.
However, an international brand is not the only path to success. There are situations where strong independent or indigenous brands can compete effectively, particularly when they have a deep understanding of their local market, strong service culture, excellent product positioning, and disciplined operations.
Nigeria already has examples of successful independent hotels such as Lagos Continental Hotel and Eko Hotel & Suites, which have built strong reputations and compete effectively in the market.
Ultimately, the decision to affiliate with an international brand should be based on the hotel’s strategy, location, target market, and commercial objectives. A brand should be seen as a business tool that creates value, not simply a badge of prestige. Whether international or independent, the fundamentals remain the same — a strong product, excellent service, effective sales strategy, and professional management.
