Thanks

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!@#

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

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

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

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

Thanks

Hey, the topic is concise and simple.

U guys have 4gotten the theme (advantages and disadvantages of private school and hotel business, requirements and cost implications of the two business to be located outside central Lagos).

Pls do put the theme in mind as u are posting ur comments.
Evrybody is saying this or that is more profiatable but none came up with facts abt requirements/cost implications.
Also remember "Outside central LAGOS"

Lets b of good help to each other. Up NAIRALANDERZ!

Hotel is a more profitable business but the kinda lifestyle u live will go a long way to choose which to go into.
If u be groove man then Hotel is for u but if u be gentleman then u will have to go into School.

Because the kinda business u are into may lead u into stuffs u dont normally do.

Im out

Hi raffite,

just emailed you;

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.

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.

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.

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

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.

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.

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

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.

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.

hmmmmmm