A recently published Hotel Survey by HRG demonstrated that 2014 Average Room Rates (ARR) in Lagos were the 4th highest globally at £203.58, after Paris, New York and Moscow. This reflected single position increase from the previous year where ARRs in Lagos were 5th highest.
Though there was some foreign currency volatility, Lagos’ Average Room Rates grew 3.39% in local currency from 2013 – 2014. The effect new hotel openings had on Lagos was short lived as demand started to outstrip supply, especially in the top end, high security properties and this translated into ARR growth.
Moscow has remained the most expensive city for the 11th consecutive year, despite nearly a 4% year on year fall in ARR to £249.11. However, this fall was masked by considerable local exchange rate movement due to the effects of economic sanctions and the ongoing crisis in the Ukraine.
From a regional standpoint, the Middle East, West Africa and Asia have all seen ARR growth, while Europe, The Americas and Africa as a whole have seen ARR contract once more. A key trend noted however, is the fact that ARR is now driven by ‘megacity’ growth as regional and national trends diminish. Regions and their megacities are increasingly seeing larger disparities in ARR movements as the economic and industrial strengths and weaknesses of individual cities become more relevant for ARR growth.
The full list of Top 55 Cities by Average Room Rate shows that the next African city after Lagos was Nairobi at 28th place, while Cape Town and Johannesburg followed at 36th and 43rd place respectively. An indication that demand is still outstripping supply.
Access the report on the ei Research Report centre.