The Nigerian hotel market will see an estimated $500 million in investment with the planned addition of five Starwood hotels in the coming years. This was revealed this weekend, in a monthly report by financial services firm, Financial Derivatives Company (FDC), presented at the Lagos Business School’s executive breakfast meeting by Bismarck Rewane, Managing Director/Chief Executive Officer of FDC.
The hotel and leisure company has between 700 to 1,000 hotel rooms in its pipeline for Nigeria. These include the Four Points by Sheraton in Ikot Ekpene, Akwa Ibom State, the Four Points by Sheraton in Benin City, Ikeja and Ibadan. And the fifth hotel in the pipeline is the planned Luxury Collection (former Le Meridien Hotel project), Ikoyi.
Starwood already operates major hotels in Nigeria after entering the country with Sheraton Hotels in Ikeja and Abuja, and building on this presence with a Le Meridien property in the nation’s oil capital – Port Harcourt – and a Four Points by Sheraton, Lagos.
A leading global player in the hospitality industry, Starwood has 1,200 properties spread over 100 countries, with 181,400 employees working at its owned and managed properties. The hospitality company also franchises hotels, resorts and residences. It yesterday announced the signing of Four Points by Sheraton Istanbul Dudullu in a franchise agreement with Ever Group in Turkey.
This investment in Nigeria’s hospitality industry is expected to boost the growth of the industry, which despite showing great potentials currently contributes marginally to the country’s GDP. The sector (accommodation and food services) contributed one percent to the country’s GDP in the first quarter of 2014.