«Home

Hotel Or Private School: Which Business Is More Profitable?

Anybody with information on hotel business and private school business? Which is more profitable in Nigeria, precisely lagos? (The location does not necessarily be in the heart of Lagos.)

Are they good and profitable business and like how much is needed to build a standard one? What are the advantages and disadvantages?

Avatar
Newbie
43 answers

My dear, I would advise you set up a school. I believe that if it is well managed, it pays off on the long run. I have had this passion to set up a school. I'm waiting for funds. School is the best. You can start from cretch, kindergarten, primary and secondary. Good luck.

0
Avatar
Newbie

I have a family friend that runs a well established private school (kindergarten, primary, and secondary) in Maitama, Abuja. They are rocking with excellence in performance and profits.

0
Avatar
Newbie

both are good biz,but while not leave the profit for now and follow your passion,profitability is on the long run

0
Avatar
Newbie

Private school all the way man. Hotels are all over the place now (In Amuwo Odofin where i stay, almost 30% of the property there are ALL hotels. . .lol). Seriously though, schools pay off in the long run. At worst, you make sacrifices for 3-5 years and you've begun reaping the benefits. Hotels on the other hand are not that reliable.Even if you open up in a good location with good clients, that could fizzle off in less than a year due to factors such as a rival hotel that's "hotter" than yours or cheaper than yours. How about operation costs? With the little or zero power supply, you might find yourself burning more money in running diesel generators on a daily basis than what you expect to make in a week. There is no guarantee that your rooms will be filled up every night but parents will ALWAYS SEND their wards to school. Also, hotel bookings for the most are seasonal (during some weekends and holidays). Imagine burning diesel all night on a Tuesday for only two customers when you have 28 other unoccupied rooms! The demerits are endless. So many hotel operators have been forced to either collect shy-lock loans to keep their hotels running or sell the property outrightly. How many schools for sale have you seen in the property section?

Schools all the way.

0
Avatar
Newbie

Let me do some analysis for Hotel based on estimated assumptions.

Rooms: 30

With Reception/Conference hall, Internet/Cyber cafe, Restaurant

Assuming the hotel cost N60 million to build and furnish.

Avg Daily rate/room = N10,000

capex = N60,000,000

Assuming Monthly Income (of half month/half room capacity a month =15rooms X 15days/month) = 15 X 15 X 10,000 = N2,250,000

Assuming Monthly expenses = N1,000,000 ( Salaries, Security, Miscellaneous, Consumables and Electricity)

Estimated Monthly Profit = N1,250,000

Assuming we ignore other revenue from internet cafe, conference hall rent and restaurant.

Estimated Payout period = 60,000,000/1,250,000 = 48months. = 4 years.

With good management and good marketing this period could be less.

FOR SCHOOL

It varies a lot, depends on the:

kind of school(kindergarten/primary/Secondary).

Number of classroom.

Teachers.

Location.

Parents trust and confidence over time.

0
Avatar
Newbie

In my opinion, it depends on the location, if you are in a tertiary institution envinroment, Hotel will be more profitable.

0
Avatar
Newbie

Hotel is more lucrative and takes a shorter time frame to start making profit.

0
Avatar
Newbie

Some years back, i would have said Hotel . . . .however, now i can tell you that school would be better, cos Nigerians are now willing to pay more educating their kids since the govt has shown to us that they dont care.

0
Avatar
Newbie

to me a private school is more lucrative that an hotel,consider the over head cost of running an hotel copared with the cost of an average standard school.

0
Avatar
Newbie

It seems most of us dont know what it takes to start a hotel business.

Our analysis do not state how much he need to start this business.

We all know he must definitely have a plot of land and be ready to build to his taste

But can anybody probably help with the total amount he may likely spend to start hotel business?

For example, i love to go into this business, but have only N3-4 million. so please tell me if i can start with that amount.

0
Avatar
Newbie

Hotel is profitable but very capital intensive. A standard, tastefully built 3 star hotel costs anywhere between $70,000 and $90,000 PER ROOM to build and equip in the U.S., excluding land cost! One could obviously do it for less in Nigeria if it is unbranded, but your operating costs especially diesel and generator maintenance are no joke. Based on what I know of the hotel business (20+ years experience) and the studies I have done, it will take the 1st 4 years (3.8 years to be exact) at a minimum for you to break even on your initial investment; after that, you are on easy street, but a new competition may enter your market, then what?

Personally, I would go for the school, much less headache.

0
Avatar
Newbie

Hi raffite,

just emailed you;

0
Avatar
Newbie

I CAN GO INTO PARTNERSHIP WITH ANY HONEST PERSON IN SETTING UP A HOTEL.

E-MAIL: SHERAFFITE@YAHOO.COM

PHONE: 08035070731

0
Avatar
Newbie

Hi

Hotel will be the best option, though it will cost you more money than setting up school and it is not all hotels that are successful so have that in mind. Consider Location as paramount to success, your targets market and the rating of the property etc all need to be considered. I am doing a degree course in hotel management in Dublin Institute of Technology at the same time working in hotel, there is money in hotel, particularly in room division, go for it.

There is little I can advise since I am not based in Nigeria to know the market potential, however I will be in Nigeria Jun, If you wish we could meet up and discuss this in detail.

regards

osondust

0
Avatar
Newbie

guy go for the hotel stuff , and if u r done with it let me know,

0
Avatar
Newbie

You mean that you have to pay big money for licence,like how much could that be

0
Avatar
Newbie

I suggest you should invest in a Hospitality aspect i mean a Hotel because it is the Number #1 lucrative business in LAgos and Abuja only.

But, money wey you go pay for license na him be gbege ohhhh!@#

0
Avatar
Newbie

For quick money, i would say hotel business,

But for money in the long run, i would say School business.

You have to think of certain factors (Hotel) like:

* Is it going to be 3, 4 or 5 star hotel? The higher the star, the more money that will be pumped or invested into it.

* Is there a steady source of income that will cover the overheads (considering that hotels are usually seasonal like customers really come in the evenings/weekends/festive periods.

School:

* Do you have the funds to establish an average private school or one with international standards like well equipped laboratories, e.t.c.

* What is the standard criteria for teachers and what are their fundings going to be like?

For the school, you will have to be dedicated and passionate cuz it entails you updating to the current curriculum, ensuring your staff go for seminars/workshops, e.t.c

0
Avatar
Newbie

Hotel business is very profitable but I have to tell you that it comes with a lot of headache (speaking from experience). You should be ready to deal with unforeseen circumstance with customers, workers, local government, Police, PHCN (NEPA) etc Hotels attract all sorts of people.

With the power situation in Nigeria today you will spend most of your revenue on diesel, generator repairs or paying off NEPA. This will lead to raising prices to the level that depending on your location your clientele may not be willing to pay. Security is another key issue. You may have a hard time just breaking even. Proper planning and management is key.

Good luck with which ever you choose to go with.

0
Avatar
Newbie

While both are intended 4 profits, I believed hotelling biz have much more to offer in that regard.

As said earlier by Salvage, it also depends on personal quest 4 establishing the entity. I've always dream of imparting knowledge to my brethens whenever I can and the ultimate goal is to establish a center where knowledge can be gained that will transform the life of the less privilege.

Based on sentimental @ d moment, I rather establish the school first and if it produce the cash-inflow, okay and if not, I'll live with the satisfaction of equipping those that benefited from it.

0
Avatar
Newbie

it's all about the capital involved. if less capital is involved i will advice u to go for hotel 'cos u can set up a mini hotel with little capital, and that can fetch u enough money but the problem is the security issue, if u can work that out, go on bro. all the best.

0
Avatar
Newbie

What does a good location mean in hotel business,does it mean the heart of the city,or some how hiding location.

0
Avatar
Newbie

i think n Nigeria the hotel business is more profitable , u can make a lot of money if u cite it in a very cool location , people spend more on elaxation than they do on education so u can actually make a lo of money , the price of drinks doubles n stimes triples n hotels , u can also put a viewing cetre n charge a premium for it , i

0
Avatar
Newbie

Hi, NaijaEcash concerning the amount budgeted for it is around 20 million, and when i am talking of hotel it is a decent hotel just for logging and accommodation purpose

0
Avatar
Newbie

With proper education/training on any of them ur PROFIT is assured,well probably.

If you aint in the teaching line,you wont make as much profit in setting up a school.

If u aint into Hotel maintanance/management,same will go for you too.

0
Avatar
Newbie

my parents have been into private schools for years and if its something u want to do holla at me and ill put you through,you dont have to be an educationist to make it work as long as you v done your home work atiku is not an educationist, and its realli lucrative as well

0
Avatar
Newbie

Well said. I also believe you must be an educationist otherwise you'll make a mess of it. On the other hand you could employ an overall head to run it for you but be prepared to employ only the best i n the field and pay top dollar to retain them.

0
Avatar
Newbie

The topic ought to have been:

Hotel, Church Or Private School: Which Business Is More Profitable

This is because I still keep wondering why I am not a professional in any of them instead of remaining jobless now

Kayo[color=#000099][/color]

0
Avatar
Newbie

Well it depends on what type of school and hotel u are talking about . 5, 4 , 3, 2, star ? I have been in the hospitality business for 4 years now so i can only tell you about the hotel industry .

You have to consider the following points . LOCATION , MAN POWER , AND YOUR MANAGEMENT TEAM , SALES AND MARKETING TEAM

Hotel business only grows if you have a good location , energetic man power and a well structured management team good sales and marketing team , and dont expect to start making profit that soon . it takes at about after 1 or 2 years before you start making profits out of it .

As for me i will prefer the hotel business rather than school .

0
Avatar
Newbie

@Poster

For you to start a Private School, you must have a different mindset and orientation from where you currently are.

Its people who have the desire to impart Knowledge, teach and nurture others and build a legacy for his or her wards that should go into opening schools.

If you go into it just as a business venture, then you would ultimately mess up the lives of the kids that are placed in your hands when the 'bucks' are not rolling in as planned.

People who have been known to be successful in running schools are those with the innate passion to nurture and impart knowledge.

This translates into well tutored lives, and by extension, happy parents and then comes the financial rewards.

But if its just a business venture, then the reverse would be the case : Unhappy parents, terribly run school and ultimately, a failed 'business venture' .

Hope this helps.

0
Avatar
Newbie

Hotel is the best: imagine the number of husbands cheating on their wives?

That's already enough to open the business.

0
Avatar
Newbie

I dont get your point.

As long as i can remenber, private schools around the world has been set up mostly for profit maximization; other purposes are secondary.

@topic

Both bizs are capital intensive depending on the level you want to go about it.

A 5 star hotel biz could cost from 1 to 5 billion naira. More profitable though.

0
Avatar
Newbie

When did SCHOOLS turn into a business venture.Its a shame

0
Avatar
Newbie

I think you got a point but it's not entirely true

0
Avatar
Newbie

By the way let me get it straight. What type of private school are you talking about? To build a standard university is more expensive than building standard hotel

0
Avatar
Newbie

All business are good infact all business have equal potentials all things being equal  ( Ceteris paribus ) depending on the location, standard and other obvious factors like; good managers and appropriate skilled workers etc. Therefore no business is better than the other considering the afore mentioned reasons above.

0
Avatar
Newbie

Location is important here. I hear level of education is low in the northern part of Nigeria now would you go and set up a school there? Hell No! Hotel is more capital intensive than school and I believe also has higher profitability. Again location is important. Unfortunately my answer is based on my opinion not on facts. Anybody with facts and figures should let it down here.

0
Avatar
Newbie

Thanks Cao Alvin for your reply, i think i agree with you that hotel is more profitable,but i don't agree that it is capital intensive more than private school business.To build a standard school will also gulp big money

0
Avatar
Newbie

hotel business is good but u spend more capital puttin it up, while skool u spend less.hotel is more profitable.

but 4 me i will go for school becos its less stressful. hotel is too stressful.but its the best.

0
Avatar
Newbie
Your answer
Add image

By posting your answer, you agree to the privacy policy and terms of service.