Teotihuacan: Welcome to the yoruba propaganda we are forcefed here on NL my friend........

too bad u knw

Gbawe:

Unless given the specific height, a 20 storey building could be taller than a 40 storey building because floor to ceiling height of individual rooms/apartments is entirely discretionary and can be significantly different from building to building. For example, a building with 15 floors of apartments, with each apartment having a floor to ceiling height of of 5 metres, would be taller than a building having 20 floors with each floor having a floor to ceiling height of 2.5 metres.

Your argument is dead on arrival because of its basic ignorance and erroneous assumption. Bring us specific metric heights of buildings to be compared and we can talk. Speaking based on "storey" is ridiculous considering that height of individual units vary within even the same building let alone from one building to the next.

hmm...i wont av to argue with u cus its obvious u lack manners....ure so dumb....even if u read building technology in scul,am sure u bought ur results....am sure u never heard of research....dont be silly,stupid and naive....just log on to the internet and get some information 4 urself...stop being incongruous............my word for u is simply innococuous..doh i dont care how u take it

THe Chairman is Indian but this is good. Hopefully the money stays in Africa.

Horus:
https://www.youtube.com/watch?v=oWzGnL0J_fA

[size=15pt]Intercontinental Hotel Lagos[/size]

This is obviously a world class hotel.

Very much like many of the top hotels in the West, some of which I have stayed at mainly due to professional work.

My company used to pay for the accommodation and when I have been out on holidays with my friends, we have booked in places like this before on weekends (hence cheaper).

Normally, the rates when my ex companies used to pay was around the $200 mark, which my firm would still get a discount on because their staff can book it for like 2 months, so the hotels don't want you going anywhere else (i.e. their rivals) as that is steady and guaranteed stream of money at high volume Monday to Friday, so they would even reduce it drastically.

When we book such on weekends, we could easily get prices in the range of $120-$150.

Now, when I saw this, I knew this is Nigeria, it would be impossible for it to make sense. So I checked.

On "special offer", these rooms are of the $360 range.

http://www.ihg.com/intercontinental/hotels/gb/en/lagos/losha/hoteldetail/hotel-packages

I compared with Intercontinental in a Western country, on special offer, and those are of the $260 range.

http://www.ihg.com/intercontinental/hotels/gb/en/kansas-city/mkcha/hoteldetail/hotel-packages

A whole $100 less per night!!!

So what if the Nigerian ones are not on "special offer" nko? Na $500 persin go dey pay every night?

Every time you find something that meets the right standards in Nigeria, they want to charge an arm and a leg for it. It is only for looters, not for many people that work for their money.

https://www.nairaland.com/1424380/what-happened-tinapa/4#17885799

https://www.nairaland.com/1020767/picture-mercy-johnson-red-hair#11846285

How will I carry my head to Nigeria and be paying $360 a night for a room, when I am paying $150 a night for the same quality in the UK?

Lunatic country!

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

If all things were equal, you can make that argument. But they aren't.

Its like saying that a big mac should be the same price in all countries but it isn't for a number of reasons - inflation, currency valuation, ease of doing business, etc.

And you forget it is Nigeria - the more expensive it is, the more exclusive it becomes which in an ironic way, increases demand. Some foreigners may struggle to pay that rate but their will be plenty of takers who are Nigerian.

Electricity, water, etc. Lack of infrastructure, cost of doing business, etc.

Katsumoto: ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

If all things were equal, you can make that argument. But they aren't.

Its like saying that a big mac should be the same price in all countries but it isn't for a number of reasons - inflation, currency valuation, ease of doing business, etc.

And you forget it is Nigeria - the more expensive it is, the more exclusive it becomes which in an ironic way, increases demand. Some foreigners may struggle to pay that rate but their will be plenty of takers who are Nigerian.

naptu2: Electricity, water, etc. Lack of infrastructure, cost of doing business, etc.

I agree with you guys.

But this hospitality rate is not the only thing that is like that. It is virtually everything in Nigeria.

Just look at the property market. Inferior goods being over-priced.

I know power and other public amenities are expensive in Nigeria but at the same time, labour is far cheaper.

I think it really should depend on the type of industry one operates in. Where are the major cost centers? If major cost centers for the business are in areas where it is very expensive in Nigeria (e.g. electricity, business development) then it would be justified to be more expensive.

That said, in Nigeria, I don't think cost centers/factors are the major determinants of these high cost. It is usually down to 2 things:

1) Low supply vs high demand. Demand that has not previously been met and the market development meeting it is not freely competitive.

2) Creating a perception of "superior goods" in an environment where majority of the rich are not one because of merit or entrepreneurial hard work (hence spend money easily) and an environment which is highly prone to showing off and oppression as a demonstration of self-value. Just as Katsumoto alluded to.

Sagamite:
1) Low supply vs high demand. Demand that has not previously been met and the market development meeting it is not freely competitive.

2) Creating a perception of "superior goods" in an environment where majority of the rich are not one because of merit or entrepreneurial hard work (hence spend money easily) and an environment which is highly prone to showing off and oppression as a demonstration of self-value. Just as Katsumoto alluded to.

Surprising to read this from a consultant .

The people who build these hotels are working with a business plan, you know. They're not likely to base their ROI on perception or sentimental value. Besides, the case for hotels like this in Nigeria is based on projected demand. More than 1,000 hotel rooms are projected to be added in Lagos alone over the next 5 years, as the economy expands. And these hotels are mostly populated by foreigners/visitors visiting Nigeria on business. Usually they base the prices on market conditions. Hotels with similar classification in the Ikoyi/VI axis go for between $350-600 for a standard room.

To build and operate a hotel like this in Nigeria will be subject to many multiples the same CAPEX it will cost to build in the US. Most if not all of the building material (save maybe cement and sand) will be imported, and hence subject to inflated duties. Labour costs will be on the high side, as you probably don't have too many local architects or construction engineers with the experience and expertise required. Since this is an Indian-led project, I am sure there will be some serious corner-cutting on this project.

And then there's the OPEX. Cost of powering the place for 24 hours (PHCN just will not scale for large developments like this!), providing the services required to run the hotel, importation of all importables, etc. Oddly-enough, they'll probably save the most money on wages
Ironically, I doubt any of these hotels are ever 100% occupied. But the cost provision will have to be the same nonetheless.

If you think hotels are expensive in Nigeria . . . try Luanda, Angola. . $600 is a very good price for a hotel out there
Personally I think the sheer number of projects in Lagos will force down the price sooner or later. There's a Marriot being built, the Eko is renovating aggressively, and there's Federal Palace, and The Avenu, as well as Radisson. Not forgetting the myriad of nondescript boutique hotels all over the place. There must be at least a hundred of these 20-30 room hotels all over the place, like 3 on every street in VI.

Though I suspect those who charge premium will hold out for as long as possible, like the fellas who have built serviced apartments all over the Island. These flats are largely unoccupied, with vacancy rates of up to 70%, as reported in one real estate magazine. But there's always the possibility of some boom, somehow, and a surge of new money. That always happens. After all there are close to 20m people in Lagos

AjanleKoko:

Surprising to read this from a consultant .

The people who build these hotels are working with a business plan, you know. They're not likely to base their ROI on perception or sentimental value. Besides, the case for hotels like this in Nigeria is based on projected demand. More than 1,000 hotel rooms are projected to be added in Lagos alone over the next 5 years, as the economy expands. And these hotels are mostly populated by foreigners/visitors visiting Nigeria on business. Usually they base the prices on market conditions. Hotels with similar classification in the Ikoyi/VI axis go for between $350-600 for a standard room.

Ah, ah! Oga, that is EXACTLY what I am saying.

A choice of price that reflects their perceived quality. They are applying market-reference pricing because the market prices are favourable.

It is not a cost-plus margin pricing, so cost is not determining the price.

AjanleKoko:
To build and operate a hotel like this in Nigeria will be subject to many multiples the same CAPEX it will cost to build in the US. Most if not all of the building material (save maybe cement and sand) will be imported, and hence subject to inflated duties. Labour costs will be on the high side, as you probably don't have too many local architects or construction engineers with the experience and expertise required. Since this is an Indian-led project, I am sure there will be some serious corner-cutting on this project.

And then there's the OPEX. Cost of powering the place for 24 hours (PHCN just will not scale for large developments like this!), providing the services required to run the hotel, importation of all importables, etc. Oddly-enough, they'll probably save the most money on wages
Ironically, I doubt any of these hotels are ever 100% occupied. But the cost provision will have to be the same nonetheless.

I don't think to build would be the same as anywhere in the West because land for these kind of hotels in city centres in the West are more expensive. There is no way land can be as expensive in VI as it is in Downtown New York abi for my side in London, Mayfair.

Na lie o. Na Peckham council flat I dey live in o.

I am sure to import such goods can't be that expensive considering the network amongst government officials the owners and stakeholders would have. Nigeria only frustrates the poor people that have no contact and powers, not the powerful people.

My arsse was sweating TWO AND THE HALF WHOLE fcking hours at Muritala Mohammed WITHOUT AC, waiting for my luggage. Tokunbo Afikuyomi that was on the same plane with me, had left probably two hours earlier.

https://www.nairaland.com/1051990/rick-ross-hold-me-back/2#12238300

And still, customs and immigration wan obtain me before I leave. Ko ni daa fun gbogbo won (E no go better for all of them)!

I think construction cost, by and large would be the same because it is a pyramid. All the extra cost for foreign expertise (the apex of the pyramid) would be countered by lower pay for labourers. A construction labourer in London would easily be making over £30K for this project. I don't think the Rabius and Kamorus would make up to even N3m a year. And these labourers are the mass employees at the bottom of the pyramid.

Maybe more cost on the build side in terms of building additional infrastructure for self-provision of amenities.

It is to operate that would make the price high. And I would assume that relates more to electricity.

Removing that, run rate for the hotel annually should be less than the West. With Electricity cost, then the price might be above or on par. They can manage this using futures options to buy diesel.

You are spot on on the fact that occupancy rates would be lower, so they maximise price to even it out. That is one other key determinant of the high price.

AjanleKoko:
If you think hotels are expensive in Nigeria . . . try Luanda, Angola. . $600 is a very good price for a hotel out there

I know.

The most expensive city in Africa.

That is also due to low supply vs demand.

The place has only been out of war for about a decade, so there are not many options or many alternatives for people demanding it during their fast growth.

AjanleKoko:
Personally I think the sheer number of projects in Lagos will force down the price sooner or later. There's a Marriot being built, the Eko is renovating aggressively, and there's Federal Palace, and The Avenu, as well as Radisson. Not forgetting the myriad of nondescript boutique hotels all over the place. There must be at least a hundred of these 20-30 room hotels all over the place, like 3 on every street in VI.

Though I suspect those who charge premium will hold out for as long as possible, like the fellas who have built serviced apartments all over the Island. These flats are largely unoccupied, with vacancy rates of up to 70%, as reported in one real estate magazine. But there's always the possibility of some boom, somehow, and a surge of new money. That always happens. After all there are close to 20m people in Lagos

On point.

Supply and demand. Supply is rising. If customers play them against each other considering the information that would be available to them, then prices will fall.

70%? When you steal money and no work for your money, you can afford to let assets not generate money for you na.

esere826: I can't believe that some folks are utilizing google and wikipedia as the tool to establish that
the intercontinental hotel building in Lagos is 'certainly' the tallest in this part of the world


,,yeahh, it is apparently one of the tallest,
-but I dont expect the hotel owners and the state government to be the best source for naming theirs the tallest building
-if the original aim of the builder was to create the tallest structure for sure, they should have made it more obvious my making it much taller

I think the tag of the building as the tallest is a bragging, marketing induced aftertought
(not a bad infrastructure sha)

I am wondering if you really read the post very well.

I clearly made a call for facts and figures. The only quoted figure of height available was obtained through a google search which returned a national daily website and a wikipedia quotation.

No where in my post did I claim that Intercontinental Hotel was (in your words) "certainly" the tallest.
My first statement was a warning that we should stop unnecessary bragging.
I put a disclaimer (clearly highlighted in red color) on the wikipedia figure because, as we all know, wikipedia is not a good source of reference, probably excusable if it contains a citation.

nrd_geek:

We need facts and figures here. We cannot just continue to brag and lay claims from our imaginations or throw numbers from our bum.

Hôtel du 2 Février in Lomé, Togo: 36 floors, standing at 102m (Note that wikipedia still requests for a citation for the buildings height)
http://en.wikipedia.org/wiki/Hotel_du_2_Fevrier

Intercontinental Lagos: 23-storey, 100 metres high
http://www.thisdaylive.com/articles/west-africa-s-tallest-hotel-intercontinental-lagos-opens/149822/

^^
Oga, I was not referiing to you in particular, but to commentators in general o
Or don't you think commentators suggested these things I spoke of?

jayblinx: boss u just lied....wat eva hotel mr fashola built isnt the tallest hotel in west africa....Hotel 2 fervrier in lome togo has 36 storeys...and has the record of the tallest...dont come here and deceive any1....if u want to b sure...use google or check the other post on lome togo and see dat tall building wit sumtn lyk an ''X'' on top....i live in togo

True brother. In nigeria we like to parade hollow titles for the sake of titles. We dont care about substance. Now the rot has gone to buildings.

pro01:

I think you used the word "businessmen" too loosely. Most of them are criminals who made easy money and prefer to tie it down in 'safe' and 'passive' investments like real estate. From the shadowy drug barons in Festac Town, to the bureaucrats in Alausa, to the politicians in Abuja, to the oil industry profiteers in the Niger Delta, to the fraudulent bankers and government contractors nationwide, and all their numerous cohorts collaborators, and cronies. . . .they all have one thing in common - easy money. Easy, ill-gotten money.

This explains what Pat Utomi aptly referred to the "jobless growth economy" Nigeria seems to be experiencing. Too much ill-gotten wealth is circulating lopsidedly in the system, and sadly, these monies are not channeled towards real, value-adding investments that create jobs and stimulate trickle-down prosperity across board. Not when the preferred investment for most of the thieves I mentioned above is hotels and useless luxury real estate projects that add no value to majority of the populace.

By the way, only naive suckers would believe that foreigners or foreign conglomerates would come into Nigeria to tie down their money in Nigerian real estate. Most of the hotels, malls, luxury apartments, etc. parading themselves as foreign-owned are actually owned by shadowy Nigerian rogues - mostly politically exposed persons and their businessmen fronts (notably slimy characters like the Chagoury brothers, for Bola Tinubu). They might as well invest more in productive ventures that enhance the standard of living or quality of life of a greater number of people. If you steal from the poor in order to help the poor, your sins might be forgivable after all. But when you steal from the poor in order to intimidate and oppress the poor with your vainglorious opulence, then a time bomb is waiting to explode.

It just goes to show how selfish and contemptuous of the masses they are to keep investing in luxury sectors to satiate the already over-indulged hedonistic cravings of a mere 0.001% of wealthy Nigerians and expartriates. This country desperately needs deliverance, and I don't mean the T.B Joshua sort.

Man, you made my day

Novice1:

True brother. In nigeria we like to parade hollow titles for the sake of titles. We dont care about substance. Now the rot has gone to buildings.

lol..yes bro...dats wat we nigerians are fond of...too bad ..we myt b heading down the drain

http://allafrica.com/stories/201408281088.html

[size=18pt]Nigeria: Lagos City Hotels Charge Highest Room Rates[/size]

DESPITE the high number of hotels in Lagos, the metropolis remains the city with the highest charges on hotel accommodation in Africa.

According to the Lagos State Hotel Licensing Authority, the agency responsible for regulating the hospitality industry, about 2,500 hotels and other hospitality establishments are located in the state.

Following the preliminary investigation published earlier in the newspaper on August 2, The Guardian examines the room rates of four international hotels located in Lagos State in comparison with their rates in other African cities.

Finding shows that all the five-star hotels included in this survey, with branches in other African cities such as Johannesburg, South Africa, Nairobi, Kenya; Lusaka, Zambia, Maputo, Mozambique, Dar es Salam, Tanzania and Balaclava, Mauritius charge much higher room rates in Lagos than they do in other African cities.

The price difference sometimes is as high as 148 per cent. For example, the standard room rate in Southern Sun Ikoyi, Lagos costs N62,000 per night, whereas the same room costs an equivalent of N25,000 in Southern Sun, Johannesburg, South Africa.

A diplomatic suite with king-size bed, which costs an equivalent of N149, 000 per night in Sheraton Hotel Pretoria, South Africa goes for N248,000 in Lagos Sheraton Lagos Hotel and Towers - a difference of 65 per cent (see table for other rates).

Though these prices change from time to time subject to demand, the prices quoted in this report were the rates between August 9 and 10, 2014.

In an e-mail correspondence with The Guardian, the Director of Sales and Marketing, Intercontinental Hotel at Kofo Abayomi, Victoria Island Lagos, Mr. Kumar Krishna, attributed the difference to the forces of demand and supply.

"There are very few branded star hotels in Lagos, and visitors tend to ensure that they choose one of the brands that they or their company is associated with. A premium is charged since the demand is far higher than the supply on most of the periods."

The Director of Nigeria Tourism Development Corporation (NTDC), Mrs. Sally Mbanefo, whose organisation last year lost the regulatory power over hotels operation in Lagos and other states of the federation through a Supreme Court ruling, also stressed market forces as the major significant factor determining prices of hotel accommodation.

According to her, price equilibrium is bound to go higher when the demand for hotel accommodation is higher than the supply.

Plausible as this explanation may sound, it appears a weak justification for such huge difference in the hotel room rates in Lagos compared to other African cities.

Also Krishna's argument that visitors prefer to pay extra for a top brand hotel "so that they are able to experience a standard service delivery as well as ensure that there are no surprises," seems an excuse that rather points at the exploitative tendencies of hotels in Lagos.

"Some brands offer a standard level of service, and a frequent traveller pays a premium just to ensure that he exactly knows what he is getting," Krishna explained.

However, the more powerful argument by hotel operators in Lagos and other Nigerian cities is that, high operational cost is the primary cause of the exorbitant prices of hotel rooms.

At the second Nigeria Tourism Investors Forum and Exhibition (NTIFE) held in Abuja recently by Federation of Tourism Association of Nigeria (FTAN), stakeholders at the summit submitted that the cost incurred in running hotels in Nigeria is "outrageously high."

In his paper, FTAN President, Mr. Tomi Akingbogun highlighted lack of key infrastructure in the country among other factors hindering the growth of hotel business in Nigeria.

I am laughing at the moronic explanation this Kumar Krishna is giving.

So is he saying that the guests using hotels or their hotels in other countries are not a standard service delivery and they get surprises, hence the justification for the 148% price difference?

shevon:


My dear, they were overbooked even before they opened. I have a friend working there that earns more than I do as a staff of a multinational oil servicing company. I'd rather I stay there than hole up in Sheraton any day.

a staff? chai.

Rossikk:
I've been all over and believe me, foreign hotels are over rated. Most are no better or worse than their Nigerian counterparts.

You say

.