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While Nigeria’s hospitality sector has been negatively impacted by a weaker economy, the country’s long-term prospects remain positive.

According to PwC’s Rooms with an African View report providing an outlook of Nigeria’s hotel sector from 2016 to 2020, the Nigerian hotel market has also been hurt by terrorist activities in the north-eastern region and the 2014 Ebola outbreak, which affected largely Lagos.

The report indicates that unit nights have dropped 12% and room revenue has decreased 3.6% over the past two years, with most of the hotel market supported by business and domestic travel fueled by Nigeria’s large economy, which has experienced lower economic growth and declining oil and natural gas prices.

Most of the growth in available rooms will be in three- and four-star hotels, with only a few five-star hotels available in Nigeria. The average room rate, according to the report, was US$214 in 2015. The average room rate is expected to increase to US$258.

For more information about Nigeria’s hospitality industry outlook, click here.