“If you have a population of 15 million people, there is a proxy of how many rooms you require, that’s how we come up with the 50,000 to 80,000 rooms required to host conventions, conferences and events. In Abuja, during the World Economy Forum, they closed down everywhere, and people couldn’t find hotel rooms,” Bismarck Rewane, CEO of Financial Derivative Company tells CNBC Africa.

The projected growth, according to a report issued recently by PricewaterhouseCoopers (PwC), would see overall hotel room revenue expanding at a 22.6 per cent of the annual rate to 1.1 billion US dollars in 2018 from 413 million US dollars in 2013.

“There is a gap of hotel and hotel facilities in the country and the hospitality industry is divided into two, one is the infrastructural hospitality and two is the service of hospitality itself. In an infrastructure analysis you find out that Lagos, for example needs about 70,000 hotel branded rooms and it only has three thousand rooms right  now,” he said.

“Hotels are not classified into small and big, they are classified into one to five stars. When we talk about branded rooms, we talking about three stars and above. We have three thousand branded rooms in the Lagos metropolis, where we need 50,000 to almost 80,000 rooms. How do you fill the gap? We fill the gap with medium scale two star and one star unbranded rooms. The stars are not just infrastructure but the type of management and service.”

The hotels are made available for the use of many organisations and individuals. The hospitality industry is booming in Nigeria because there are many people making use of hotel rooms to host guests, weddings or corporate functions.

Rewane explains that most hotels in the West African state attract people who travel to the country for business commitments. 

“Nigerians don’t move into hotels, the target audience is the business community, international investors, and consultants.”

According to the PwC report, despite the fact that the hotel market in Nigeria grew by nine per cent in 2013, which was the smallest gain since 2010, guests staying more than one night also increased by 6.3 per cent in 2013 and has grown faster over the past three years.