Lagos Hotel Room Rates Hit Record High Amid Returning Business Travel
Average hotel room rates in Lagos have surged to a record N205,534, driven by the rapid return of business and corporate travel to Nigeria’s commercial capital. According to Estate Intel’s Lagos Real Estate Development Pipeline Report 2025/2026, demand is rebounding faster than the city’s ability to add new rooms, resulting in a significant increase in rates.
The report reveals that average daily rates have more than doubled from N83,105 in 2023 to N205,534 by October 2025, the highest level on record. This growth is attributed to renewed corporate activity, improved connectivity to key business districts, and delays in delivering new high-quality hotel projects. The city’s hospitality performance highlights the rapid recovery of demand relative to supply, particularly in prime business locations.
As of October 2025, hotel occupancy in Lagos stood at 66.7%, with expectations that it will stabilize in the high-60% to low-70% range over the coming years. The city’s hospitality demand is anchored by business travel, supported by its proximity to the international airport and improved accessibility across major commercial hubs such as Victoria Island, Ikoyi, and Ikeja.
While leisure travel remains a smaller component of demand, the steady return of conferences, corporate meetings, and regional business travel has helped sustain both occupancy and pricing power for hotel operators. Lagos currently has an estimated 10,728 hotel keys, with an additional 3,709 keys in the development pipeline, making it the largest hospitality pipeline market in West Africa by volume.
However, the report notes that more than one-third of planned hotel projects are on hold due to lingering challenges such as high construction costs, foreign exchange volatility, and cautious capital deployment. As a result, the pace of new hotel completions has lagged earlier projections, keeping the market broadly balanced despite rising demand.
The rebound in hotel rates comes amid improving macroeconomic conditions, with capital importation into Nigeria rising to $7.3 billion in 2024, the highest level in three years. The International Monetary Fund has revised Nigeria’s 2025 GDP growth forecast upward to 3.9%, supporting expectations of continued economic recovery.
The outlook for Lagos’ hospitality market remains positive, with limited near-term supply expected to keep the sector balanced even as demand improves. Estate Intel anticipates a more bullish environment for hotels as the economy continues to recover, particularly given the limited delivery of high-quality stock over the next few years.