Nigeria’s hospitality sector is set for renewed expansion, with more than 3,700 new hotel rooms expected to be delivered between 2026 and 2029, signalling growing investor confidence and recovery prospects in the industry.
This projection is contained in a recent report by Estate Intel, which noted that while the sector is showing clear signs of growth, an uncertain business environment in recent years slowed the delivery of new hotel stock and pushed project completion timelines further out.
“There are signs of growth in the hospitality sector as well, as over 3,700 keys are slated for delivery between 2026 and 2029,” the report stated. “An uncertain business environment in recent years, however, has limited the delivery of new stock into the market and pushed completion dates out. We anticipate a more bullish environment for hotels as the economy recovers.”
According to the report, Nigeria’s gradual transition towards economic recovery is driving increased development starts and pipeline activity across several property sectors, with hospitality benefitting from improving macroeconomic conditions and renewed investor interest.
Estate Intel highlighted the data centre sector as the fastest-growing asset class, with a development pipeline estimated at 186.37 per cent of existing total stock, as supply is projected to exceed 218 megawatts by 2030.
The residential sector also presents a positive outlook, although the report described the supply response as nuanced. Despite a development pipeline of about 34,800 housing units, Nigeria is still grappling with an estimated housing deficit of more than 2.7 million units.
While this significant gap presents opportunities for developers—particularly in the middle-income and deluxe-grade segments—the report observed a growing preference among developers for the luxury housing market. This shift is driven by the perception that luxury developments offer profit margins that are more resilient to economic volatility.
Overall, Estate Intel noted that improving economic fundamentals, alongside sector-specific opportunities, are reshaping Nigeria’s real estate landscape, with hospitality emerging as one of the sectors poised to benefit most in the medium term.
