Hotel business falls under hospitality industry which is growing every day in lips and bounds. People move from one place to another and they have to Lodge. Hotel is a place that is a home away from home. There are couples who want to change environment just for a day or two for a relaxed place away from the bustle of their home or neighborhood. Businessmen travel from one place to another and find solace in hotels. Tourists lodge in hotels in the countries they go to. Aside lodging hotels seem to have a large conference Hall to accommodate a number of persons in any given program. As such any one organizing seminar, talk show, marriage party, political gathering will prefer hotel. There are many ways to make money in hospitality industry-hotel in this instance.
Steps to start Hotel business in Nigeria
Table of Contents
hide
1. Choose location.
This is very important, customer prefer a place that is cozy, Serene and secured. Before now people prefer outskirt of town where there won’t be distractions but not anymore due to insecurity. A location where competitors are few is a way to success. The road leading to the hotel should be motorable and easy to access.
2. Register a business name
Choose a name that is appealing and easy to pronounce. How do you feel when you hear names of this hotels; Chelsea hotel, Nicon Luxury, Eko Hotel etc. Make sure you register your hotel name with CAC
3. Write a business plan
This will guide you on what is required, how to run the business, capital etc. WhatsApp 08155196689 or call: 08035965405 for hotel business plan at a very affordable cost.
4. Source for capital
Hotel business requires a lot of money, the type of hotel you are planning will determine the amount you need to kick start. We have 5 star hotel, 3 stars etc.
You should know the kind of hotel you want to build so you can raise capital that would complete it. In fact, your capital will determine whether luxury hotel, standard, premium etc.
5. Get license from Agency
Make sure you get okay paper from the Government in your location so you will be allowed to operate freely.
6. Build your hotel
Build a befitting hotel, furnished to the teeth with good furniture, fittings, and accessories. The outlook of your hotel is what will attract good customers. Keep the environment neat. Well designed with enough car parking space.
7. Recruit staff
You can engage the services of a recruiting company to help recruit staff such as:
- Barman
- Cleaners
- Store keepers
- Customer care service
- Dry cleaners
- Room service
- Waiters
- cooks
- Accountant/cashiers
- Gardeners
- Securities
- Administrative staff
- Managers etc.
8. Train staff
You have to train your staff for at least 2 weeks before the opening of your hotel. And the training has to continue from time to time.
Challenges of hotel business
1. Competition: because there is money in hotel business many investors are pushing money into this sector.
2. Premium offer, if you don;t have some of the facility customers are looking for you may face challenges of loosing customers. Many customers will like to lodge where they can access internet or wi fi.
3. High cost of maintenance, it is a long term project and will require good management. Cost of renovation, changing of chairs, beddings, towels, television repair etc.
4. Cost of power: you must have 24/7 power supply, when there is no PHCN light you must on your generator.
How much money do you need to start a hotel business
The capital you need depends on the standard of the hotel you want to operate. You can start with as low as 20 million and as high as 200m and above for premium hotels. The 10 million is for those operating in a village with maybe 10 rooms. How much does it cost to run a hotel in your area?
Profit in hotel business
Hotel business is very lucrative because of the many opportunities available to make plenty money.
These are the ways to make money in a hotel
- Selling out rooms
- Food and alcohol sales
- Selling conference and meeting rooms
- Fitness
- swimming pool
- Shops where books are sold, fashion boutique etc.
Let’s assume you have 20 rooms and you charge #5,000 if you give all out in a day 20 multiply by 5,000=#100,000 even if you were able to give 10 in a day that means #50,000. It therefore means, in a month you can earn 1.5M only from lodging not to mention others.
Conclusion
Hotel franchise is a good business idea, it requires a lot of money and planning. As such you need a hotel business plan to succeed.
Frequently asked questions
How to become a hotel owner
Get your money ready and follow the steps listed on this post
Do hotel make.a lot of money
Yes they do
How to start a hotel business without money
It starts by conceiving the thought and then putting the thought into paper and on ground.
Nice writeup
Thanks @Ademola