36

esiues the commeicial anu political

capitals of the countiy - Lagos anu
Abuja, iespectively - theie exist B
hotel uevelopment piospects in othei aieas
of the countiy. 0f couise not on the scale of
the foimei gioup, which also constitute the
pi i mai y maiket s; but t heie aie
oppoitunities to be tappeu into in select
seconuaiy maikets. Some of these
seconuaiy maikets have ielatively obvious
neeus foi quality hotel accommouation,
while the piospects in some otheis will not
seemveiy appaient totheuninitiateu.
Poit Baicouit is one of the moie obvious
uestinations outsiue of the piimaiy cities.
Theie is sustaineu uemanu anu an
i n c i e a s i n g s u p p l y o f q u a l i t y
accommouation. Its impoitance as the oil
capital of the countiy anu an inuustiial
centie attiacts a high numbei of shoit anu
long-teim business visitois who iequiie
louging uuiing theii stay. The continueu
impiovement in secuiity anu stability in the
city is eviuenceuby the ietuin of oil anu gas
companies anu incieaseu piouuction, aftei
the insecuiity expeiienceu pie-2uu9. Poit
Baicouit, once again, seives as a iegional
hub anu this unueiscoies the neeu foi an
impiovement in the quantity anu quality of
thehotel stockcuiiently available.
Anothei ielatively impoitant seconuaiy
maiket is Calabai, the capital city of Cioss
Rivei State. 0nlike the majoiity of Nigeiian
cities, Calabai is one that has the unique
potential to become a majoi touiist
uestination, if uevelopeu, bianueu anu
maiketeu accoiuingly. Touiismtiaffic into
Cioss Rivei Stateis estimateu at one million
annually, with about half of that intake
iegisteieu in Becembei, when the city hosts
its annual Calabai Chiistmas Cainival. The
continueu success of this event each yeai
will help toattiact anu inciease the numbei
of visitois uuiing this peiiou anu yeai-
iounu. The State also enjoys a favouiable
anu tempeiate climate as is eviuenceu at
0buuu Cattle Ranch. The Tinapa Business
Resoit, which was iecently taken ovei by
ANC0N, was uevelopeu with the (yet to be
achieveu) objective of cieating a ietail,
Poit Baicouit
Calabai
leisuie anu enteitainment centie foi the
State. The announcement of the 0S$1
billion investment in a manufactuiing anu
assembly plant by ueneial Electiic within
the Calabai Fiee Tiaue Zone will
potentially be a majoi boost to the
inuustiial piofile of the city. 0thei futuie
0nlike tbe mojority of Niqerion cities, Colobor is one tbot bos tbe unique potentiol to become o mojor tourist Jestinotion, if JevelopeJ,
bronJeJ onJ morketeJ occorJinqly.
s.---.., a-:.| u....:. .- a.,....
By 0omilolo AJepoju
anu majoi uevelopments in the state
incluue the Ameiican Inteinational
Bospital, the Convention Centie anu
Eneigy City. I believe that this iueal mix of
business anu leisuie oppoitunities will
help to cieate anu inciease the uemanu foi
quality hotel accommouation in Calabai.
Accoiuingtoan insightful 2u1Siepoit by
Renaissance Capital, titleu "Thiity-six
shaues of Nigeiia", some of the laigei sub
national economies in the countiy, besiues
Lagos anu Abuja aie locateu in Kano, 0yo,
Kauuna, Imo anu Akwa Ibom, with uBP pei
capitaupwaius of 0S$1,7uu.
In teims of population by city, Kano anu
Ibauan aie the seconu anu thiiu most
populateu in the countiy, iespectively. It
alsofollows that thesetwocities aielocateu
in the states with the seconu anu thiiu
highest uBP pei capita in the countiy,
highlighting the highei levels of business
activity theie.
The W Bospitality uioup bianueu hotel
pipeline suivey also thiows up some
inteiesting uata. As summaiizeu in the
pieceuing table, some of the inteinational
anu iegional chains have signeu on ueals to
opeiate hotels in maikets that some might
Novotel Eotel, Port Eorcourt
0omilolo AJepoju
MAKF1 AND GOVFNANCF
FINANCIAL NIGFIA I JANUAY 2014
consiuei as unlikely, if at all any
consiueiation is even given.
0gun State capital, Abeokuta woulu
piobably be one of the less obvious maikets
foi hotel uevelopment. Bowevei, given the
pioximity to Lagos anu the ielative ease of
Abeokuta
movement within thecity, Abeokutahas the
potential to be a iegional uestination foi
meetings, confeiences anu events. The
Paik Inn by Rauisson, cuiiently unuei
uevelopment, is also in the company of the
iecently openeu uieen Legacy Resoit,
which is connecteu to the 0lusegun
0basanjoPiesiuential Libiaiy complex.
0weiii
Imo State capital, 0weiii woulu be anothei
unlikely uestination foi hotel uevelopment
but it also has the unique chaiacteiistic of
being a mainly leisuie-uiiven maiket. The
city uiaws a substantial weekenu ciowu
compiising of inuigenes iesiuent in othei
paits of the countiy anu also of othei non-
inuigene visitois. It also sees an influx
uuiing festive peiious anu hosts a
substantial numbei of social events.
Buiing such peiious, the existing hotels
expeiience much uemanu that simply
cannot be accommouateu in the bettei
quality hotel piopeities. Baiiing a uecline
in secuiity, anu continueu impiovements in
ioau anu aii tianspoit into 0weiii, this
uemanu will foieseeably besustaineu in the
long-iun.
As othei state goveinments emulate the
mouel example of Lagos State, this will
cieate enabling business enviionments
that will encouiage the economic giowth
that spuis hotel uemanu. This in tuin will
leau to incieaseu business activity anu
mobility of people, as well as secuie
tianspoit ioutes to these uestinations. 0f
couise Lagos anu Abuja will continue to
ieceive the vast amount of attention anu
investment; howevei, it is also impoitant
foi keen investois not to oveilook the
oppoitunities that exist in othei paits of the
countiy.
The above is by no means an exhaustive
list of all the viable seconuaiy maikets in
the countiy, but seives to highlight
al teinative uesti nati ons foi hotel
uevelopment in the meuium to long teim.
The oppoitunities in most of these maikets
will be well-manageu, quality, economy to
miu-scale hotel piouucts. The sizes will
iange fiom about 6S to 1Su iooms with
auequate meeting anu events spaces,
uepenuingon theinuiviuual maiket.
0omilolo AJepoju is o bospitolity inJustry consultont,
witb professionol onJ ocoJemic experience in Jiverse
morkets in Asio, Nortb Americo onJ Furope. Eer
experience incluJes finonciol roles belJ ot loJqinq onJ
commerciol reol estote componies in Wosbinqton 0.C
onJ New York, os well os o current position ot tbe
leoJinq bospitolity oJvisory firm in sub-Soboron
Africo, WEospitolity 6roup.
37 FINANCIAL NIGFIA I JANUAY 2014
GDP,
$bn
(2012F)
PopuIaIion,
mn
GDP per
capiIa, $
NeI
secondary
5chooI
aIIendance
raIe (2007)
Lagos
31.2 10.7 2,916 85
Kaho
Oyo
16.8
14.2
11.0
6.5
1.525
2,165
28
71
KaIsiha
Osuh
lmo
Ahambra
Akwa lbom
10.6
9.4
9.1
8.9
8.2
6.8
4.0
4.6
4.9
4.6
1,554
2,356
1,983
1,814
1,783
Rivers 11.3 6.1 1,859 75
17
77
74
72
72
Kaduha 13.3 7.2 1,960 49
Source. Nat/ona/ 8ureau of Stat/st/cs, Nat/ona/ Comm/ss/on, /M/,
/ena/ssance Cap/ta/ est/mates
randed HoIeI DeveIopmenI PipeIine - Nigerian CiIies

AbeokuIa Park lhh by Radissoh 173 2014
Ado-EkiIi MahIis lkogosi Warm Sprihgs 93 2014
Asaba 8esI WesIerh Plus 90 2014
8ehih CiIy Four PoihIs by SheraIoh 188 2015
lbadah Four PoihIs by SheraIoh 150 2016
Makurdi 8esI WesIerh Plus 135 2014
Owerri
1ulip lhh 79 2014
A!ricah Suh 170 2014
A!ricah Suh 76 2014
PorI HarcourI A!ricah Suh (Amber) 196 2014
Coldeh 1ulip 192 2014
Sub-1ota/ 1J 1,792
lagos & Abuja J6 5,673
1oIaI Nigeria 49 7,470
CiIy ProjecI Number of ooms
ProjecIed
Opening Year
lbis 150 2015
Warri
A!ricah Suh 100 2014
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MAKF1 AND GOVFNANCF