Hotels make very good profit especially where there are no competitors from banquet bookings, hall bookings for birthday parties, weddings, memorial services, seminars and other purposes. They also make good profits from room revenue as their operational cost is relatively lower than the total room rates.
How profitable is hotel business in Nigeria?
Profitability of hotel business in Nigeria
If you charge a minimum of N3000 per night, this means that if you can engage all your rooms daily, you will be making at least N3000×10= N30,000 every day, excluding revenue you make from drinks and food. And so every month you can pull up to N900,000 minimum in revenue.
How much does it cost to build a hotel in Nigeria?
Building contractors in Abuja are greedier than those in Nsukka. Laterite is cheaper in Enugu than in Lagos. Your 115-room hotel may be a 10-storey or 15-storey edifice. On average, it will cost $26million.
Is Hotel a lucrative business?
According to IbisWorld, there are 74,372 hotels, and the hotel industry generated $166.5 billion in revenue in the United States alone last year. This represents an annual growth rate of 4.7% over the past 5 years. Industry profits were $26.0 billion, and wages paid to hotel employees totaled $42.7 billion.
How do I start a hotel business in Nigeria?
How to Start a Hotel Business in Nigeria
- Have a Business Plan. Now that you’ve done your research efficiently, coming up with a business plan will flow easily. …
- Register the Business. …
- Source for Capital. …
- Build Your Hotel. …
- Hire Competent Staffs. …
- Market Your Business.
How much does it cost to start a hotel business?
The average cost of starting a hotel in the US ranges from $750,000-$1,000,000 for a small motel, to the national average being around $22,000,000 for a hotel with around 115 rooms, and much higher for luxury and high-rise hotels (source.)
How much does a small hotel cost to build?
According to Cushman & Wakefield, the average cost of building a hotel ranges from $115,000 to $1.5 million per room. That takes hotels at every level from midscale to luxury, including boutique hotel projects.
How much does it cost to build a 100 room hotel?
The construction cost per room averages $604,200, putting the cost of building a 100-room 5-star hotel at $60+ million.
Does Nigeria have a 5 star hotel?
Nigeria has a couple of five star hotels, some of which are even part of an international chain of hotels.
How much do 5 star hotel owners make yearly?
The profit, or the money you get to take home, is the money that’s made after all the business expenses are paid off. While the industry is pretty tight-lipped about it, it’s estimated that the average profit turned by a hotel chain owner is between $40,000 and $60,000 per year (source).
How can I get a hotel with no money?
20 Tips on How to Buy a Hotel Franchise With No Money
- Review your personal records.
- Get your skills in line.
- Know what type of hotel you want.
- Approach a lender.
- Do your research.
- Evaluate the various hotel franchise offerings.
- Demand company details.
- Obtain franchise disclosure document.
Are hotels a good investment?
Investing in hotels can be an exciting way to own real estate. If you are wealthy, you can franchise a hotel concept directly from one of the major hospitality companies. To buy a business-class hotel could cost $15 million. Luxury hotels can easily require $30 to $60 million or more.
How can I start a hotel with no money?
Here are some of the options you can explore when sourcing for startup capital for your hotel facility business;
- Raising money from personal savings and sale of personal stocks and properties.
- Raising money from investors and business partners.
- Sell of shares to interested investors.
- Applying for loan from your bank/banks.
How do I start my own hotel?
How to start a hotel: the steps
- Step 1: Make a plan. …
- Step 2: Create your Unique Value Proposition. …
- Step 3: Develop your marketing plan. …
- Step 4: Enquire about permits and zoning. …
- Step 5: Raise startup capital. …
- Step 6: Find hotel premises, build and furnish. …
- Step 7: Recruit staff. …
- Step 8: Put systems in place.
How do I start a guest house in Nigeria?
To start a hotel/guest house business, there are steps you need to take and things you need to consider before setting out.
- Carry out a feasibility study. …
- Estimate the cost. …
- Raise funds. …
- Buy a franchise name. …
- Register your hotel. …
- Location. …
- Build. …
- Employ quality and honest staff.
How do hotels market in Nigeria?
Look at using email marketing, online ads, managing your online travel agents, incorporating an attractive web design that offers direct bookings. Social media plays a huge role in affecting marketing your hotel and it could be beneficial to invite influencers to your hotel too.