According to a story on the guardian newspaper of last week, despite the high number of hotels in Lagos metropolis, it remains the city with highest charges on hotel accommodation in Africa. The Lagos state hotel licensing office cites that there are about 2,500 registered hotels in the state. Now the guardian newspaper’s research finds out that five star hotels with branches in other African countries like Johannesburg, South Africa, Kenya, Nairobi, Maputo, Zambia, Lusaka, Da es Salam, Tanzania, Mauritius, charge very much higher room rates in Lagos compared to their other African cities counterparts.

It may shock you, but the price difference at times is at 1,48%. Guardian further explains that the standard room for Southern Sun Ikoyi, Lagos costs ₦62,000 but in Johannesburg South Africa, the same room costs ₦25,000. In Sheraton Hotel Pretoria, South Africa, a diplomatic suit with a king size bed costs ₦149,000/night but the same in Lagos, Nigeria goes for ₦248,000 with a difference in 65 per cent.

Why do these hotels cost so much? A hotel sales and marketing manager says this is because many visitors prefer branded hotels, especially the ones their companies are associated with. He also says the prices are hiked since demand is higher than supply in peak periods hence that the market forces are to be blamed.

There is also an argument that the more expensive the hotel room is, the more standard their services would be and many travelers love standard. Now another factor is cost of operation, many hotel owners say this is the chief reason for the hotel rooms exorbitant prices. as the cost incurred in running a hospitality business in Nigeria is horribly high because of inefficient availability of basic amenities like power, water, as most of these hotels now provide their own power in form of diesel generators and of course dig their own wells.

More so, these hotel owners invest huge amounts of money in security which the government is presently failing to do and thus this further catapults the hotel rates. Many of these other African countries do not have the aforementioned problems. Presently Nigeria can only supply 4,000Mw, but that of South Africa is 45,700Mw. There is also the problem of multiple taxes and other charges like signboard fees, liquor license, tenement rate, water, electricity and parking bill.

Although it said that the labor costs in Nigeria is relatively cheap compared to that of other African countries, employee costs is also held as another reason for the exorbitant hotel room rates in Lagos.

see more: - http://thebusinessaim.com.ng/lagos-city-hotel-rates-are-the-highest-in-africa/

Just being extravagant.....




FTC things.......wow! This is cool.

It doesn't take rocket science to figure out. Cost of running business in Nigeria is outrageously high. Same reason why many companies have been shut down: No water, no electricity.

shey The sleep for these expensive hotels dey different??

whirlwind7: It doesn't take rocket science to figure out. Cost of running business in Nigeria is outrageously high. Same reason why many companies have been shut down: No water, no electricity.

Yeah, sure. The only way to keep afloat seem to inflate the prices of goods and services. And the resultant effect? Exhorbitant prices compared to other countries in the region.
STOP PRESS! Click Here to Register a Company in Nigeria

Ok

So

Okay, I was here.

GOD help us

This is what i call extortion! How will government control hospitality sector when it hasnt tackle security?

For wetting

I dont believe this

Yungwizzzy: shey The sleep for these expensive hotels dey different??

I wonder o

traffic yapa today, wont go to the mainland today am sleeping at oriental hotel tonight, its expensive but i dont care cos i have the money

Ok

.

Nigeria's economy and services baffles the hell out of me.

The services suck, the economy is comatose, everything is jaga jaga and most products are substandard. Yet everything is so damn expensive. WHY?

A normal hotel in California with all the normal services is so cheap that ordinary people can afford to spend a night or two in them.

Yet in Nigeria where the hotels are dirty, NEPA taking light anyhow, tiny food portions which are sometimes tasteless, and hotel staff who steal your things; things are so fvcking expensive.

Biko, what type of economy is Nigeria operating in? That is the kind of economy that will sooner crumble upon itself.

The people are so poor, yet the services are so expensive. It baffles me

Why wont it be expensive, no be money dem dey use fuel Generator ? No amenities. Mbok, they should leave them jor!

Lasgidi......hotelgidi

even till now wey Ebola don stroll go dat side??

dangote fulfills his promise as he slashes down the price of cement
READ HERE http:///Gxzp

igbsam: f

Airforce1: Ok

holyboss: .

Titiluvly: Hmmmmm...Ok

kossyablaze: Hmmmm

murimoney: .

juicydiceyjoe: So

Nonesense

Lagos na wa!
Though I dnt blame them sha coz Lagos is d place 2 b as far as biz in Nigeria is concerned.

What do you expect a country where Hotels/companies provide their own light and water, some even go as much as doing the road to the hotel.

Hmmmmm...Ok

Hmmmm

Na wa o,too much money,but,won't ebola affect hotel business des days?

Ha ha ha. You think Lag is expensive? Try Abuja especially now that national conventions will soon start coming up. Yet the hotel people can't even spray insecticides in the damn rooms. You go wan craze!

Nigerian hotels are 'states' on their own. They provide for their own water, security, pay over the odds for fast internet,electricity.

Also the cost factor of building; Our cement prices are the second highest in the world.


In fact... I was wrong we do have the highest cement prices in the world.
Profit margin of 52% for Dangote cement against a global average of 6%. The biggest Cement maker in the world makes only 18%.

A tonne of cement in Vietnam is $67/tonne. Nigerians pay $263/tonne.

Read here

http://aguntasolo.com/tag/dangote-cement/

Its due to the high cost of living in Nigeria