Comparative Analysis of Attributes of Commercial Real Estate and Hotel Real Estate in Nigeria
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Date
2018
Journal Title
Journal ISSN
Volume Title
Publisher
The African Journal of Built Environment Research (AJoBER)
Abstract
Investment in real estate extends beyond property use on annual tenancy or short
leases basis, but also includes the provision of accommodation with varied renting
patterns such as short let and time share. Generally, hospitality industry
comprises of commercial and non-commercial activities and services; it is an
investment that is housed in a real estate asset that renders services in trade
form. Technically, hotel investment is one of the breeds of real estate investment,
but practically considered more as a part of the breed of pure business
investment. This empirical work therefore highlighted and compared the
attributes of hotel investment and commercial property investment measuring
their performance through occupancy rate analysis. From a sample of 177
commercial properties and 70 hotel properties in the Central Business Districts
(CBD) of Ikeja, Abeokuta, Ibadan, Osogbo, Akure and Ado-Ekiti; adopting a
questionnaire survey on investment managers of these two property investment
options. The research findings revealed that commercial and hotel properties have
similarity in 4 of the qualitative variables and different in the remaining 8
variables. The study further revealed no significant difference in the occupancy
rate of commercial property (0.89) and the hotel property (0.80) as reflected by the
Kolmogorov Smirnof (K/S) two sample tests. Although this seemed to be the first
comparative study of direct commercial property and direct hotel property
investment attributes in Nigeria, it is concluded that hotel property could be a
more attractive and better investment as revealed by the short-term advance
payment attribute and its dynamic response to economic situation than the
commercial property. It is recommended that subsequent study should extend to
investment characteristics through trend analysis of return on these investments.
Description
Bello, N.A., Jolaoso, B.K. and Olanrele, O.O. (2018): Comparative Analysis of Attributes of Commercial Real Estate and Hotel Real Estate in Nigeria, The African Journal of Built Environment Research (AJoBER) 2(1); 1-20, July 2018, published by West African Real Estate Research (WABER).
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Citation
Bello, N.A., Jolaoso, B.K. & Olanrele, O.O.