Nigeria’s hospitality industry is on an upward trajectory and is expected to generate a staggering $2.61 billion in revenue by 2029, according to a newly released 2025 real estate market report by property consultancy firm Ubosi Eleh & Co. This growth, the report notes, will be driven by surging domestic tourism, increased hotel investment, rising short-let occupancy, and booming end-of-year travel trends popularly dubbed “Detty December.”
The report predicts that the number of users in Nigeria’s hotel segment will exceed 18.7 million by 2029. With an annual growth rate of 11.75% between 2025 and 2029, Statista.com forecasts industry revenues to reach $1.67 billion by 2025, highlighting a resilient post-COVID recovery and a significant rebound in consumer spending in the sector.
Major cities such as Lagos, Abuja, and Ibadan are at the forefront of this boom. Lagos alone boasts over 3,300 hotels with an estimated 70,000 available rooms. The state has seen notable expansion by international brands such as BON Hotels, which currently operates 10 hotels across Nigeria and plans to launch 22 more in cities including Kano, Asaba, Ibadan, Port Harcourt, and Warri.
The report also sheds light on the increasing demand for short-let accommodations, a rapidly growing segment of the hospitality industry. Popular platforms like Airbnb have made it easier for property owners to list apartments for short-term use, particularly in high-demand areas such as Ikoyi and Victoria Island, where prices can reach as high as ₦600,000 per night.
A key highlight of the report is the economic impact of the festive season. “Detty December”—a term that refers to the bustling holiday period from late November through January—has become a defining feature of Nigeria’s hospitality and tourism cycle. With thousands of Nigerians in the diaspora returning home and non-Nigerians arriving to enjoy the culture-rich holiday festivities, hotel bookings soar, and short-let units are often fully booked months in advance.
The holiday season not only boosts hotel occupancy but also drives ancillary revenue through events, food and beverage sales, transportation services, and local tourism.
Despite these promising figures, the report points to significant challenges facing the sector. A major concern is the lack of formal regulation and reliable data on the number of operators and their service standards. Much of the industry is still informal, and many establishments operate based on personal referrals, online reviews, and word-of-mouth marketing.
Another issue highlighted is the shortage of trained personnel in hospitality management. Many existing training institutions shut down in the 1990s and 2000s, leaving a gap in workforce preparedness. As a result, many hotel operators have had to establish in-house training programs, although these vary widely in quality.
The current inflationary pressures and rising operational costs are also squeezing profit margins, prompting fears that poorly located or mismanaged hotels may soon enter the market for sale. According to the report, hotels with poor customer service and ineffective management are the most vulnerable.
Still, industry analysts believe there is significant room for investment, especially in hospitality training institutions, short-let management firms, and data-driven tourism services. The sector is seen as a major contributor to GDP and employment and remains one of the most dynamic segments of the Nigerian economy.
Experts also believe that structured regulatory frameworks and government-backed certification schemes could enhance the quality of hospitality services across Nigeria, boosting investor confidence and ensuring long-term sustainability.
With the continued rise of short-stay tourism, increasing middle-class spending power, and cultural tourism events like Detty December, Nigeria’s hospitality landscape appears more vibrant than ever. However, long-term success will depend on the industry’s ability to address its current inefficiencies while embracing innovation and global service standards.