Hotels are a haven for tired travelers. It’s an area where guests can relax, rest and unwind whenever they step into their room. In this article you’ll discover how to begin an hotel business in Nigeria.
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Which is most profitable hotel in Nigeria?
The hospitality industry is very lucrative in Nigeria. The young and the older generation love to stretch and spend a lot, pamper their pals, and make good times. If you are an experienced professional in the hospitality industry it means more money for you.
How much does an hotel earn in one day in Nigeria?
Let’s make the calculation. Let’s suppose you create an extremely inexpensive hotel (the typical ones that are economical and in which all classes of society can stay). Hotels like yours typically cost between N3,500 and the N5,000 range per night. Let’s say that you charge N4,000.
If you’re starting off small the hotel could have 10 rooms that are active. It means that you’ll earn (N4,000 multiplied by 10) at a minimum daily rate of N40,000. That’s more than N1.2 million per month. However, that’s just for the space. In addition to meals, drinks and more, and you could end up with over N2 million.
How can you make more money in the hotel industry
If your hotel is home to bars, nightclubs or both, you’ll make a profit from the drinks purchased by guests. Additionally, you can earn more money if you own a pools, tennis courts, golf courses as well as luxurious spas.
The more additional services you provide the more money you’ll earn in monthly income. The hotel industry is highly successful in Nigeria.
It’s easy to observe, as a lot of them are now not just in the commercial areas of town, but as well in residential areas such as communities and neighbourhoods.
How do I begin a hotel business in Nigeria
These steps will help you begin an restaurant business from Nigeria:
1. Start by doing some research. Then, you can begin with a business plan for the hotel
If you’re and reading this article, it is a sign that you have an idea that you’d like to establish a hotel company in Nigeria. It’s still just an idea that’s nothing more than.
It is the first thing to do turning your business plan into the form of a business plan. The plan should outline everything you require for the beginning, but also to manage the hotel.
Do some research into the market you want to target and also study the prospective customers. It is essential to know what type of customers will be drawn to your hotel, and then stay in the evening.
What kind of services would they want? Are they high-spending or are they affluent customers?
2. Select a hotel type that specializes in
Each hotel has the same goal. But, each hotel provides their services with subtle or stark differences in the their quality or customer care. The small differences are the main difference between them.
- Boutique hotel tend to be smaller, but they do offer unique amenities
- Hotels for families cater to the entire family. They generally have spacious rooms, additional beds, pools and other features that demand an unforgettable experience.
- Hotels that are budget-friendly are not up to quality standards (especially its rooms as well as services). But this is compensated by the fact that they are affordable.
- The luxury hotels are those four- and five-star hotels we hear about. They come with high prices and are certainly expensive! However, it’s worth it because they all provide services for rooms spas, concierge bar, club, the golfing area, pools and other VIP amenities.
3. Determine the ownership structure and create a structure for the business
You are able to run in your business of a hotel sole owner. You may also establish an association or cooperative.
Most of the time, the best method to safeguard your personal assets (as as a proprietor) is to establish an Limited Liability Company (LLC). The legal system will recognize your hotel as a commercial entity, and separate from personal properties.
While there is no way that a business owner(s) want to suffer misfortune their own, the owner of a company will help protect you from having your assets taken or sold to pay off a bad credit.
4. Are you buying or building?
It’s the time to begin making the important choices. This is where you’ll determine if would like to purchase the hotel, renovate an existing structure, or construct your own entirely from beginning to finish.
A hotel that is already in operation is an ideal option for those looking to cut down on time and cost. You’re aware that the hotel has been successful immediately and you’ll not have any trouble attracting customers.
But, purchasing an hotel will require you to make some changes and make some adjustments to the staff.
5. Register your hotel’s business in Nigeria
The body that handles corporate registrations for business registration in Nigeria is known as the Corporate Affairs Commission (CAC). Once you’ve registered your hotel’s company, you must consider other ways to stay clear of legal problems later on.
Begin by obtaining the required permit and permits for hotels. While you may be able to begin your hotel and get one or two permits later you’ll need enough time and funds to complete the process in time.
6. Fund your hotel business
It’s now time to make investment opportunities. It is important to note that you should have begun working on this by this point. You can make use of your personal savings, obtain cash from your business partners or even take the business loan.
When your business is an legal entity (like the LLC) it is possible to make business proposals to angel investors as well as venture capitalists, incubators and business accelerators.
7. Hire your hotel staff
The process is fairly simple. Determine the number of employees you’ll require to maintain your business. Advertise a job opening and employ only people you trust.
8. Advertise your hotel’s services
It’s the time to pass on the positive news with those who utilize the services of hotels. Marketing is a continuous process therefore you need to promote periodically.
It is important to utilize traditional and digital channels for marketing such as community radio stations, local fliers, banners with large sizes as well as social media PPC and many more channels.
If your hotel isn’t local, it is recommended to be listed on numerous directories and hotel listing websites. This includes:
If you’re the kind of person who is passionate about helping others and is extremely hospitable and friendly, then a hotel-related business could be the perfect match for you.
It is important to note that your reputation as an establishment will be the main factor in the amount of profit you earn. It is also influenced by the happiness of the guests who stay there.
We live in the digital age this means that anyone can post positive or negative reviews about any business simply through pressing their smartphones.
The top hotels understand that and do all they can to ensure that every guest doesn’t have unsatisfactory experience. The guests who are satisfied will be content, and will not avoid leaving a favorable reviews. Disclaimer: This article is meant to be used for general informational purposes only. It is not a business-related guidance and shouldn’t be interpreted as any kind of advice.