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The effect of COVID-19 has undoubtedly left a vacuum in all sectors of the economy in the world, and this is the case especially in the hospitality sector in Nigeria. This vacuum has dealt negatively with the huge investment in the industry to the extent that all stakeholders are at cross-roads on the way out of the predicament. This therefore calls for strategic thinking among the stakeholders in order to reposition the industry to regain its lost trust occasioned by the pandemic. The year 2020 was declared as the worst year in tourism industry, and with the significance of the industry to the well-being of the people across nations, ‘out of the box’ solutions are required to reposition the industry for maximum effectiveness to regain its lost glory. Hence, the question: Can innovative thinking enhance hospitality industry recovery in Nigeria and will new product development reposition the industry? The outcome of the study will be of benefit to the industry stakeholders. Hospitality industry recovery will increase the revenue of Government, touch positively on customers’ emotions who lost loved ones during the pandemic as patronage increases and put smiles on investors' faces as a result of higher returns. The study reviews relevant literature and interviewed stakeholders in the industry. It x-rays the challenges, proffers innovative solutions, such as development of offerings that touch people's emotions, embarks on facility upgrade and makes recommendations that will re-brand the hospitality industry, so that it can better appeal to the customers coupled with safety and security measures.