Easy Way To Start Hotel Business In Nigeria
You have very good financial skills and have been involved in many businesses. In the future, it will be true that you plan to invest your money in building the hotel. The hotel business can attract tourists to Nigeria. If you have a dream, you should learn about the whole thing below.
Understand Budgeting plans
First, you can start to make a budget plan. You also don’t have to choose a 5-star hotel in the first step. You can take advantage of this to build hotels with the help of AirBNB, OYO, or Red Doors. The budgeting plan will relate to the location as well. Construction of hotels in locations that are crowded with tourist attractions or densely populated requires more costs. You also have to consider construction costs, soft costs, FF&R for the equipment and furniture, and working capital. The details for each of them can be seen below.
1. Land
Every country has different tariffs related to land. At least you should prepare for around $34,900. If you already have land, it will be easier, too, so that you can focus on other costs.
2. Buildings
You should estimate the cost of construction. The cost of construction requires a larger budget than the cost of land. At least, you have the potential to spend around $222,300. You can spend more money if you want to build a 4-star hotel.
3. Soft Costs
You should calculate the soft-cast budget too. The soft case allows you to spend money around
$43,000. The soft case itself includes various costs related to taxes, architects, designers, permits, and so on.
4. FF&E
You also have to understand furniture, Fixtures, and Equipment (FF&E). This relates to everything that will later be in the hotel as a facility for consumers. The expense for the matter is around $31,000. It will be better if you know furniture craftsmen who offer affordable prices. You don’t have to buy branded furniture, which is expensive.
5. Working Capital
You should understand working capital too. The budget for this section is around $12,000. Working capital itself includes costs related to the operation of the hotel.
Register the Hotel with CAC
The whole business in Nigeria should be registered with the CAC (Corporate Affairs Commission of Nigeria). If the hotel has not been registered with the CAC, then the business cannot run. The completion of registration at the CAC may take 2 weeks. Remember to create an elegant name so that it can attract consumers.
Recruit the Best Staff
The next step is recruiting the best staff. There are many employees that you have to recruit, such as barmen, cleaning services, room service, waiters, receptionists, and so on. The whole population has to get training so that they have good experience and knowledge about hotels.
You already understand how to run a hotel business. It will be better, too, if you join a course on hospitality and hotel development investment. You also learn about the legality of running the business. You can hire a lawyer for a better understanding of the hotel’s legality.
