Research Analyst at PAC Research, Clinton Chisom Orlu, said Nigeria’s shortlet market is expanding rapidly, driven by shifting consumer preferences, rising diaspora and corporate travel, greater affordability, and the increasing adoption of digital booking platforms.
Speaking in an interview with ARISE NEWS on Friday, Orlu said demand for shortlet accommodation grew by 45% year on year in the first quarter of 2026, reflecting strong momentum in the sector.
On the factors driving the market’s growth, he stated:
“The shortlet demand grew 45% year on year in Q1 of 2026. Some of the drivers are changing consumer preferences. People are now longing for that experience other than the traditional hotel setting. Another factor is diaspora and corporate travel. Nigeria receives close to $19 billion to $25 billion in annual remittances. Flexibility and affordability also play a role, while booking platforms like Airbnb and Booking.com make shortlets more accessible.”
Speaking on the relationship between shortlets and hotels, he said:
“The hospitality sector is not replacing the traditional hotel system. They work hand in hand. Hotels speak to luxury, conferences and events, while shortlets appeal to diaspora visitors and families looking for a home like experience. They work together to expand the sector.”
Addressing the growing appeal of secondary cities for investors, Orlu noted:
“The major attraction is the lower entry cost. These cities have growing demand for accommodation driven by tourism, education, business and infrastructure development. Investors are now moving beyond Lagos to tap into these opportunities.”
On whether the shortlet business model is sustainable, he explained:
“It’s very much sustainable, but it depends on the location. In areas like Ikeja, Victoria Island and Lekki, where there is strong tourism traffic and business activity, occupancy rates can reach 70 to 80 percent.”
Discussing the long-term outlook for the sector, he said:
“Corporate travel helps keep occupancy rates throughout the year, while festive periods attract diaspora visitors. Together, they are great assets for the hospitality sector.”
Speaking on why more Nigerians are choosing shortlets, he added:
“People want comfort. They want privacy, flexibility, and that home like experience where they can use the kitchen, do their laundry and feel at home.”
On what investors should prioritise when selecting profitable properties, Orlu said:
“The most important factor is the location. It has to be a place with strong tourism traffic, good infrastructure and good roads. Areas like Ikeja, Lekki, Chevron and Ikoyi are quite profitable.”
Addressing the impact of converting residential properties into shortlets, he said .
“For the shortlet sector, it’s bullish. But for the residential sector, it’s bearish because converting more homes into shortlets reduces the supply of residential properties, which could drive up rents.”
Speaking on regulation, Orlu said:
“I see a framework around business registration, taxation and minimum operating standards. Regulation is positive for long-term growth because it creates transparency.”
Discussing the role of technology, he stated:
“Technology has been the backbone of the hospitality sector because it puts it on the map. Online booking platforms have made it much easier for people to access shortlets and hotels from anywhere.”
On the biggest challenge facing investors, he added:
“The biggest risk is competition. The best way to address it is by improving the quality of the guest experience because people are paying for an experience.”
Giving his outlook for the sector over the next five to ten years, Orlu concluded:
“Most definitely. If the current growth drivers remain in place, demand will continue to rise and the sector will remain on a strong growth trajectory, delivering significant benefits for the hospitality industry.”
Goodness Anunobi
Follow us on:
