In this post, I will show you how to start hotel business in Nigeria. Here, you will find feasibility study on hotel business in Nigeria. In Nigeria, everyone wants a place where they can lay their heads on after a long day.
Some just want to simply relax at a place away from home, while some would like secluded places where they can have corporate gatherings.
Others include couples on honeymoon, travelers among others. That’s where hotels come in. In Nigeria, the market for hotels is an unending booming market.
No matter the number of people who start a hotel business, there is always someone who would request for hospitality services.
However, some people don’t want to venture into starting a hotel business in Nigeria as they lack the technical know how to do so and the huge capital that starting a hotel requires.
If you are stuck wondering about how much it costs to start a hotel business in Nigeria and what experience you need, then keep reading.
How lucrative is hotel business in Nigeria?
Although start-up costs are usually on the high side, if you build your business well, you should start seeing profits within one year.
During special seasons of the year, many people lodge into hotels, leading to hotels being fuller than ever. Hotel businesses in Nigeria do enjoy profitability, even more so if they are able to manage their operational costs very well.
As at 2016 alone, hotel business contributed about 5% to Nigeria economic growth. Even foreign investors have tapped into the hospitality business in Nigeria as there is enough room for profitability in this business.
Notable Key Players in the Hotel Business
As the hospitality business is a hugely profitable one, especially with the continuous flow of foreigners into Nigeria, several hotels have made their marks as the key players in this business.
1. Federal Palace Hotel and Casino, Lagos.
2. Transcorp Hilton Hotel, Abuja.
3. Eko Hotel and Suites.
4. Sheraton Hotel.
5. Intercontinental Hotel, Lagos.
6. Hotel Presidential, Port Harcourt.
Market Opportunities in Hotel Business in Nigeria
If you are looking to make a difference in the hotel business in Nigeria, you can start by taking advantage of the fact that our hospitality industry is still in its infancy stage when compared to other countries.
You can decide to build hotels with bigger room capabilities, or start small by providing the basic amenities, including merriment facilities. The ability to provide places where people can chill and have fun is what makes small hotels very successful.
Experience needed to start start hotel business in Nigeria?
It would be nice if you had taken a course in hospitality management, but if you can’t, ensure that your entire staff are trained and experienced in the art of hospitality management.
In a country like Nigeria where everyone is sensitive and can easily find another hotel, your staff should be skilled in providing quality services that keep customers from leaving.
Raw Materials you Need and Where to Find Them
1. A prime piece of real estate.
2. Generating sets.(A spare set would come in handy in emergency situations).
3. Television sets.
4. Comfy furniture.
5. Air conditioning systems.
6. King-sized beds
7. Clean bedding.
8. Cable connection e.g. GoTv, DSTV.
9. Laundry facilities.
10. Plumbing facilities.
11. Hotel carts.
12. Kitchen supplies and lots more.
The list of raw materials is almost endless. Depending on the type of hotel business that you will be running (Bed and Breakfast, Apartment, Business, Condo, Airport, Suite or Resort Hotel), streamlining your raw materials to suit your type of hotel business would go a long way to serving your niche of customers well.
You can visit physical stores, or online stores like Webstaurant Stores to place orders for your raw materials in Nigeria.
Technology needed to start hotel business in Nigeria
Hotel businesses are fast approaching the digital era with the adoption of these technologies:
a. Wi-Fi facilities.
b. Digital conference facilities for corporate gatherings.
c. ATM and POS services.
d. Smart room keys
e. Social media feedback.
f. Computer centres.
Best Location for Hotel Business in Nigeria
The best place to locate your hotel business would be metropolitan areas in Lagos, Abuja and Port Harcourt. Depending on your type of hotel business, if it is an Airport Hotel, then it should be strategically placed near airports in Nigeria.
If it is a Condo type of hotel, then you should locate it near beaches and resorts. If it is a Bed and Breakfast Hotel, situate it in a quiet neighborhood.
The most successful hotels in Nigeria are those who serve their niche in locations that their niche would love to stay.
Funding Needed for Your Hotel Business
To determine the areas that need the highest funding and a total estimate for your start-up hotel business in Nigeria, you will need to first draw a business plan.
Your business plan would show you the costs accruing to each segment of your hotel, the operational costs you would incur on a monthly basis, and the overall profitability of your hotel business.
Potential investors would take a liking to funding your idea if your business plan is well detailed and viable to invest in. You can source for funding in Nigeria through banks, non-profit organizations like AYEEN, and Bank of Industry.
Business Name: Registration and Documentation
Apart from registering your business with Nigeria’s regulatory body, Corporate Affairs Commission, you also need to register your hotel with your state government.
In Lagos alone, the cost of registering your hotel business annually is 250,000 Naira. Lagos has more stringent laws against hotels operating without a license.
Service Provision Tips
1. Make training a continuous process for your customers.
2. Always motivate yourself employees.
3. Stay updated with the latest technology in hospitality management.
4. Ensure your customers enjoy personalised customer service experience.
1. Own a website.
2. Advertise your hotel business in blogs, banners,flyers, etc.
3. Advertise also on TV and radio stations where your target audience watch and listens to things that interest them.
Company Structure and Staffing
Ensure that there is an established hierarchy in your corporate structure. Your staffing should include housekeepers, front desk officers, concierges, maintenance workers, security personnel and caterers.
1. Identify your unique selling point and look for ways to promote it.
2. Offer freebies like bonuses and discounts to your customers.
3. Partner with sites like hotels.ng and bookings.com for more business visibility in Nigeria.
4. Establish a strong social media presence.
To make it as a startup hotel business in Nigeria, establishing visibility in your niche is the best strategy you can ever implement. Promote your hotel well and you could be on your way to being one of the most recognized hotels in Nigeria.Buy and Sell Bitcoin in Nigeria - Register for free on Luno
Click here to see the latest Study Abroad Scholarships and Guides
Click here to see the latest Jobs opportunities in Nigeria.