Youth Entrepreneurship

Menu
  • Welcome
  • Dayo Profile
  • Contact Dayo
  • JOIN OUR FORUM
  • Testimonials
  • Shop
  • Our Business Plans
  • OUR PRODUCTS
    • Coaching
    • Entrepreneurship book for Africa Students
    • MLM E-BOOK: How to Recruit and Get to the Top Fast in Any Network Marketing Business
    • Set Up Money Making Blog for Just N50,000

80 Things You Will Learn from 72IG Affiliate Marketing School, Digital Marketing Skill Development and Expertnaire Affiliate Implementation Programme. (Cost N65,000)

CLICK HERE

COST OF BUILDING A HOTEL IN NIGERIA

Dayo Adetiloye Business Hub

COST OF BUILDING A HOTEL IN NIGERIA

COST OF BUILDING A HOTEL IN NIGERIA

A hotel is a business establishment that provides lodging to travelers and sometimes permanent residents and restaurants, conference rooms, shopping, and other public amenities. The Merriam-Webster dictionary also defines it as an establishment that provides lodging and usually meals, entertainment, and various personal services for the public

Nigeria’s hotel business is particularly profitable due to the country’s high spending habits. Running your hotel is a terrific opportunity to profit from Nigerian culture, which is full of energy, excitement, and delight. You can earn N900,000 each month if you serve good enough quality.

Many business-minded individuals in Nigeria consider the travel and hotel businesses to be solid investments. As the travel industry continues to grow, building a hotel has proven to be a good financial venture. Hotels come in many shapes and sizes, from basic motels and inns to 5-star luxury mega-hotels.

As a result, the expenses connected with this type of project are extremely diverse. There is no ‘one for all’ cost of building a hotel, they vary sparingly due to the design of the hotel, proposed location, and preference of the investor.

Generally, there are about 21 different types of hotels, a limited number of ten (10) will be highlighted before getting back to the crux of this article.

  • CHAIN HOTELS

Chain hotels are a collection of hotels run by the same firm or owner.

  • MOTELS

Motels began to spring up to serve visitors as an economical and convenient place to stay overnight on long journeys. They’re usually found near highways and major roadways, with few if any facilities.

  • RESORTS

A resort is a destination that tries to provide guests with everything they need in one place, including lodging, dining, drinking, shopping, and entertainment. Some resorts are all-inclusive, allowing guests to pay one price for limitless service. They are frequently found in popular vacation areas.

  • INN

A typical inn is substantially smaller than a chain hotel. Frequently owned by individuals or families, provide a warm, welcoming atmosphere for their visitors. Inns usually have fewer in-room amenities than major hotel chains, however, they may have in-room coffee, Wi-Fi, or limited breakfast selections.

  • ALL-SUITES

Typically, all-suite properties provide each guest with a bedroom, separate sitting area, and a kitchenette or cooking utensils. Many prominent hotel chains have one or more all-suites brands under their roof.

  • CONFERENCE/ CONVENTION CENTER HOTELS

Conference/ convention center hotels are distinguished by the combination of guest rooms and meeting space they provide. These locations are built to handle huge events and offer a number of event alternatives to meet various configurations, entertainment options, A/V equipment, and breakout requirements.

  • EXTENDED STAY HOTELS

While many lodging options cater to short-term or overnight stays, certain properties specialize in accommodating travelers who require a longer stay. An extended stay hotel is a type of hotel that caters to business travelers and those who are staying in one location for several days, weeks, or months.

  • BOUTIQUE HOTELS

The average boutique hotel is substantially smaller than the average chain hotel. You can expect to find boutique hotels in fascinating places or near popular sites, such as an urban city center or shopping districts, with 100 guest rooms or less.

  • CASINO HOTELS

Casino hotels are really located within casinos! They usually provide guests with overnight accommodations, access to an on-site casino, and a range of restaurants, bars, entertainment, and shopping options.

 

 

Read Also: Ceramic Manufacturing Companies in Nigeria

 

COST OF BUILDING A HOTEL IN NIGERIA

  • TRANSIT HOTELS

Travelers with a flight to catch will appreciate transit hotels, often known as airport hotels. Inside an airport, transit hotels are usually next to a terminal and near a security checkpoint. Passengers who have long flights or foreign flights can check-in and rest at transit hotels in between flights or during extended layovers.

Out of the above-listed types of hotels, Nigeria is characterized by 80%, if not 99%, this goes to show the commendable interest of Nigerians in luxury and relaxation.

Now, the average cost of constructing a hotel in Nigeria is roughly $10,000,000. A small hotel with 12 rooms on a whole plot of land in Nigeria will cost you less than $10,000,000 (4,150,000,000 Naira). As mentioned earlier, the cost of building hotels in Nigeria vary; we would divide the pricing into four aspects:

  • National average cost = $22,100,000 ​(9,202,440,000 Naira)
  • Average range = $13,000,000 – $32,000,000 (5,413,200,000 – 13,324,800,000 Naira)
  • Minimum cost = $7,500,000( 3,123,000,000 Naira)
  • Maximum cost = $60,000,000 (24,984,000,000 Naira)

Hotel owners who have the right combination of location, price point, physical asset quality, marketing strategy, dedicated employees, and supportive investors can make a lot of money. As a result, a hotel isn’t profitable by default, so you’ll have to work extra hard to turn a profit. It is not enough to have the intention to build such an enterprise as a hotel when all the plans and designs are laid out, it is important to inform the right authorities, informing the right authorities, in this case, means registering the company and attaining a license to operate.

Therefore, if you own or operate a hotel, you must register with both the Corporate Affairs Commission (CAC) and the Nigerian Tourism Development Commission (NTDC). If you register with the NTDC, having your hotel mentioned in the official tourism guide is an advantage.

CONCLUSION

The cost of building a hotel in Nigeria is not static. There are various factors to consider but to get an accurate cost for an investor’s preference; it is important to have an architectural and structural design drawing outlaid by a quantity surveyor. This will enable you to determine the exact amount of money you will need to pump into the project. The size, scale, number of rooms, terrain, and construction materials used in each hotel vary. As a result, your specific costs and percentages will differ. However, you can break down the many aspects of the hotel’s construction into percentages and categories that you may use to figure out where your money is going for this project. 

Hope you enjoy this article?

Share your thoughts in the comment session.

Contact us today for your business consultancy and business advisory services. We can help you fine-tune your idea, structure your business, market your business, train your staff, consult on your retirement plan, coach you for financial success. We also write a business plan and help with fundraising strategies and Grant applications. We can help you start, grow, and expand your business.

We help institutions and organizations write concepts, implement Business plans, and train on business Plan writing in Nigeria.

We can help you write a detailed, bankable and comprehensive business plan for your business idea.

Call any of our business plan consultants on 08105636015, 08076359735, and 08113205312.

Or send a WhatsApp message or email us either at dayohub@gmail.com or info@dayoadetiloye.com.

 

Enter your name and email and Download our FREE eBook, get the weekly newsletter, Update on Grants, Business Opportunities & Premium Services from DayoAdetiloye.com... Joining is FREE!
Your information will *never* be shared or sold to a 3rd party.
  • Author
  • Recent Posts
Dayo Adetiloye Business Hub
Lets connect
Dayo Adetiloye Business Hub
Dayo Adetiloye Business Hub is a grassroot business development service provider with a 6 year of track record of excellent service delivery for local and international clients.

As a leading business development service provider in Nigeria, Dayo Adetiloye Business Hub has been recognized and certified by Small and Medium Enterprise Development Agency of Nigeria (SMEDAN) in Conjunction with Enterprise Development Centre (EDC), Pan-Atlantic University (PAU) of the Lagos Business School (LBS).

Our solutions are designed for MSMEs and are supported by deep insight into various industries and extensive experience acquired from over the years by supporting our clients as partners in their business transformation.

Through our services and business activities, we help individuals/entrepreneurs transform their business ideas into a business venture, and support existing business to scale or expand their operation. We also connect startups and MSMEs with opportunities and resources for their business growth.

We have Consulted for more than 5000 MSMEs in the last 6 years in various industry including Agro-processing, Consulting, Training and Education, Financial Services, Waste Management, Renewable Energy, Oil and Gas, Construction, Real Estate, FMCG, Digital Marketing, Personal Branding etc.

Our Vision:
To become the leading grassroot business Hub that provides Business
Development Services in the global online community

Mission Statement:
- Provide bespoke management and business planning consultancy
- To connect MSMEs with opportunities and resources for their business startup, growth and expansion through trainings, seminars, coaching, consulting, mentoring, and Angel investing.
- To inspire, empower and champion entrepreneurship in the global online community.

Business Goals and Objective

- Engender national prosperity by contributing to the creation of at least 100 new businesses every year
- Become a go-to brand for outstanding business development services for MSMEs
- Strategic partnership with local and international organization to empower start-ups
- Continuous innovation to serve our clients better

Core Values:
Integrity
Opportunity Maximization
Digitalization
Personal Development (Capacity Building)
Excellent Customer Satisfaction
Timeliness
Dayo Adetiloye Business Hub
Lets connect
Latest posts by Dayo Adetiloye Business Hub (see all)
  • Philanthropist Kole Akintujoye’s Our Daily Bread Foundation: Eradicating Hunger in Nigeria and Beyond - March 20, 2023
  • 28 Reasons why Norland Network Marketing Company is the best in Nigeria - March 16, 2023
  • Top 50 Ways to Generate Leads for Expertnaire Affiliate Marketing Platform in Nigeria - March 16, 2023

Share this:

  • Tweet
  • WhatsApp

Related

Prev Article
Next Article

No Responses

  1. Pingback: MINISTRY OF INDUSTRY, TRADE AND INVESTMENT
    April 4, 2022

Leave a Reply Cancel Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Search this Blog

MLM Instant Recruiting Formula

Grant Winning Blueprint

How to Turn Yourself into a Live Breathing Cash Machine

Ecommerce Business

Follow me on Facebook

Follow me on Facebook

Follow me on Twitter

My Tweets

Youth Entrepreneurship

…Raising Millionaire Young Entrepreneurs
  • About
  • Dayo Speaks
  • Disclaimer
  • JOIN OUR FORUM
  • Shop
  • Privacy Policy
  • Sitemap
  • Advertise With us

About Us

Dayoadetiloye.com is a property of Dayo Adetiloye Business Hub committed to connecting entrepreneurs with resources.

We are one stop Business Resource Center where we help you discover, Develop and Fulfil your business potentials.

On this platform, we help you develop business plans and strategies, connect you with funding opportunities and share with your business opportunities.

Facebook Community: https://www.facebook.com/groups/156197005130352/

Twitter: www.twitter.com/dayoadetiloye

Email: Dayohub@gmail.com

Popular Posts

  • 50 SMALL SCALE BUSINESS IDEAS IN NIGERIA AND STRATEGIES TO START IT
    50 SMALL SCALE BUSINESS IDEAS IN NIGERIA AND STRATEGIES TO START IT
  • Peter Obi's Biography, Net Worth, and Rise to Popularity
    Peter Obi's Biography, Net Worth, and Rise to Popularity
  • 30 List of Grants, Fellowships, Entrepreneurship Training Programmes you can Apply for in Nigeria in  2023
    30 List of Grants, Fellowships, Entrepreneurship Training Programmes you can Apply for in Nigeria in  2023

Popular Category

  • Affiliate (36)
  • Articles (723)
  • Business Grant (342)
  • Business Opportunities (422)
  • Business Plan (682)
  • Competition (46)
  • CV Writing & Career Guide (61)
  • Dayo Initiative (13)
  • Entrepreneur of the Week (19)
  • Executive Summaries (148)
  • Expertnaire Affiliate Marketing (5)
  • Finance (15)
  • How To (133)
  • Job Vacancy (18)
  • Latest Post (1,681)
  • LOAN (23)
  • MLM Coaching (11)
  • Network Marketing (176)
  • NEWS (21)
  • Norland Nigeria (70)
  • Ofada Rice (6)
  • Online Marketing (50)
  • Product Sales (9)
  • Recharge and Get Paid (11)
  • Scholarship (7)
  • Scholarships (11)
  • Sponsored Post (223)
  • Trainings / Events (151)
Copyright © 2023 Youth Entrepreneurship
Dayo Adetiloye Business Hub

Ad Blocker Detected

Our website is made possible by displaying online advertisements to our visitors. Please consider supporting us by disabling your ad blocker.

Refresh
Enter your name and email and Download our FREE eBook, get the weekly newsletter, Update on Grants, Business Opportunities & Premium Services from DayoAdetiloye.com... Joining is FREE!
Your information will *never* be shared or sold to a 3rd party.
 

Loading Comments...