An Empirical Study of Hotel Location Choice Decisions and Performance Outcomes in Abuja, North Central Nigeria

This study empirically examines the relationship between hotel location choice decisions and subsequent financial performance outcomes in Abuja, Nigeria's Federal Capital Territory in the North Central zone. Location is a foundational determinant of hotel market positioning and customer accessibility, yet the criteria driving location decisions in the Abuja hotel market and their performance consequences are empirically underexplored. A quantitative research design is adopted with structured questionnaires administered to general managers and owners of 60 hotels spanning various categories in Abuja, covering location decision criteria and three-year average performance metrics. Multiple regression analysis is applied with revenue per available room and occupancy rate as dependent variables. Location decision criteria examined include proximity to business districts, government institutions, transportation nodes, competitive cluster effects, and land cost considerations. Findings reveal that proximity to government institutions and major commercial zones is the single strongest predictor of above-average occupancy, confirming the dominance of business travel in Abuja's hotel demand structure. Hotels located within defined embassy and diplomatic zones demonstrate consistently superior revenue per available room. Land cost sensitivity is found to have caused some investors to locate in emerging peripheral zones where demand development is slower. The study recommends investment readiness assessments incorporating demand micro-mapping for prospective hotel investors in Abuja. Keywords: hotel location, performance outcomes, Abuja, hotel investment, revenue management