Hotel business is very lucrative and finance intensive. Hotel is available in every two to three streets in most towns in Nigeria. Hotel is very important in every country and town for reasons including: accommodation, food, relaxation and fun fare.
In Nigeria, there are millions of people who at one point or the other requires hotel. Some individuals takes their weekends seriously for funfair only and the one place they go to catch fun is a hotel. This depends on the type of hotel, a good hotel provides food, drinks, clubs and swimming pool. These individuals who are up for fun every passing week and have money to spend goes to hotel to satisfy their needs. Starting a hotel business is a lucrative business, inasmuch as it is capital intensive but in the long run it will yield more than the capital, let’s say few years all depending on some factors we will discuss later.
Hospitality is very much needed by people from those seeking fun and tourists. Hotel is one place they seek for hospitality. It is important that a hotel provides enough hospitality for customers so as to ensure that they are comfortable. The benefits of giving customers enough hospitality is to ensure that they come back, for customers to get the value of their money and to create a reputation for the hotel.
What does hospitality mean in hotel?
It creates a brand for the hotel. You succeed in creating a name for your hotel. People will describe your hotel according to your service.
It gives you an advantage over your competitors. One of the ways you can ensure hospitality is by being responsive to your customers. Have a customer service personnel available who ask for the conditions of their stay and also a suggestion/complain box. And ensure to work on the information acquired whether negative or positive.
It is important that your hotel has a “Homely” atmosphere. There are facilities that various hotels provide which include :
Dry cleaning service
There are various categories of hotel including 5 stars, 4 stars and 3 stars. There are single rooms, suites, executive suites (double rooms with terrace).
How Profitable is Hotel Business?
Hotel business is very profitable. The capital is very intensive and most investors are more concerned with the capital ignoring the profits. Starting a hotel is expensive but after establishing it and creating a brand for yourself with your customers as your focus, in few years you will get your money back.
The main source of hotel income is the giving out of rooms to customers. A single room can go for #4000 or #10,000 depending on the type of establishment you have. The suite can go for #15,000. If your services are good, you have a great chance of booking all your rooms per day, calculating it for a year will increase your financial status.
There are other sources that you can generate income which include:
Selling food – This includes room service to the clients and also restaurants in the hotel.
Selling drinks – This includes assorted wines, soft drink and alcohol in the bar and providing it to customers in their rooms when ordered.
Car rental – Most customers require car services. You can make some nice cars available for rent.
Gym – This is still profitable and goes a long way to increase the income. It can be monthly or daily.
Spa – This includes facial services, body massage and scrubbing and so on.
Dry cleaning service.
Challenges facing Hotel Business
Every business has challenges and hotel business is not excepted.
Competition – Hotel business is on the increase everyday, whether small or big hotels.
Hygiene – This is very important. The environment goes a long way. No customer will like to stay in a dirty environment no matter how cheap it is. You can’t put customers in a smelling hotel and expect them to come back. There are hotels that leave their suck away opened and the odor saturate everywhere making the customers regret their stay.
Noise pollution – Some hoteliers careless about the atmosphere of the hotel. They play high music from the club/bar disturbing their customers.This is a serious problem that can affect the hotel.
Location – This happens when the hotel is placed in a remote area where access is difficult.
Bad customer service – This happens when workers careless about their attitudes to customers. They just misbehave in everything they do, some even insult the clients.
Bad attitudes discourage customers to come back again.
Bad food – This is when poor food are served for expensive amount. Even if the food is inexpensive, it is important to serve delicious meal. Hotel and food goes together.
Factors to consider when setting up a Hotel Business
Research – It is important for you to do your research properly before taking any step. Determine what kind of business you want to establish. This is whether you want to open a small hotel or big one. And also how your hotel will differ from others already in the market.
Know your clients – This is very important, this is because your clients is your business. Know your clients and focus on satisfying them.
Management – This includes your staffs and structures of your establishment. It should be properly organized.
Availability of Wi-Fi – Most customers require wi-Fi, so it is important to make it available.
Steps to start up your Hotel Business
Determine the type of hotel you want to establish. Do you want a small one or large one? Single room or double room? This is very crucial.
Type of clients
This is important. You can have tourists, travelers, people within the location.
This is important. Where your business is located can guarantee a large percentage of the income. When you place your hotel in an inaccessible place, you will get less customers but when it is along the road, you get more customers.
What kind of service do you want to provide? Is it only accommodation? Does it include restaurant and bar?
Determine the foundation of the hotel. Do you want to start from scratch or renovate an existing one?
Contact good contractors. Ensure the contractor has done good works before. And discuss the type of structure you need and also listen to their professional suggestions.
Get necessary Permits.
Create a business plan, financial budgets and projects.
Source for fund. This includes from private or financial institutions. Register your hotel name with Corporate Affairs Commission (C.A.C).
Recruit and train your hotel staffs. This is very important. The attitudes and training of the staffs goes a long way to ensuring good customer service and their return both in finance and customers returning.
Purchase required equipment like computers, fax machine, telephone and so on.
Open your hotel to the public.
Our sample Hotel Business Plan in Nigeria can be used to access bank loans, proposal writing and grant applications. The business plan was complied after a thorough feasibility study on Hotel Business in Nigeria was done.
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