Welcome, Guest: Register On Nairaland / LOGIN! / Trending / Recent / New
Stats: 3,151,117 members, 7,811,136 topics. Date: Sunday, 28 April 2024 at 02:11 AM

Hotel Or University Hostel Blocks Which Is Wiser To Invest In? - Investment (2) - Nairaland

Nairaland Forum / Nairaland / General / Investment / Hotel Or University Hostel Blocks Which Is Wiser To Invest In? (20023 Views)

Any 2k To 4k Hotel Or Guest House In Lagos? / . / MMM Blocks Withdrawal Of Funds For One Month! (2) (3) (4)

(1) (2) (3) (4) (Reply) (Go Down)

Re: Hotel Or University Hostel Blocks Which Is Wiser To Invest In? by wunmi590(m): 1:45pm On Aug 08, 2017
University
Re: Hotel Or University Hostel Blocks Which Is Wiser To Invest In? by macfranklin(m): 1:45pm On Aug 08, 2017
Bros... It depends on the location; building a hotel of high standard at a good location will yield steady income but hostel blocks depend on a fixed and annual income (so be prepared if you don't have other sources of income)
While Hotel will give you a steady income, also be prepared for steady maintenance... On the other hand, hostel blocks have little or no maintenance.. They are both profitable, it all boils down to your income frequency.

1 Like

Re: Hotel Or University Hostel Blocks Which Is Wiser To Invest In? by Goodnuel: 1:47pm On Aug 08, 2017
Hostels in enugu is a good deal.
Re: Hotel Or University Hostel Blocks Which Is Wiser To Invest In? by PASSIONATELY: 1:47pm On Aug 08, 2017
University Hostels block better than any hotel. Although they all have their disadvantages. The University may be shot down for one reason or the other so is the Hotel.
Re: Hotel Or University Hostel Blocks Which Is Wiser To Invest In? by Awoofawo(m): 1:48pm On Aug 08, 2017
Keneking:
Hostel - ladies preferable

One room - self contain

Install genset that can power the facility.

Employ dedicated security guard.

Install functional borehole system

Leave the rest to Baba God

Leave the rest to University timetable

When the location and facilities are top quality; some babe (aristos ) will not even want to go home at end of the semester.......... just make him mind him business when awon Daddy start showing up here............ grin grin grin grin grin grin grin grin

1 Like

Re: Hotel Or University Hostel Blocks Which Is Wiser To Invest In? by mfm04622: 1:50pm On Aug 08, 2017
If you have time to monitor your investment, build hotel. If not, build hostel.

The money from hotel is much more, but it require active monitoring. if not well managed, investment can go down the drain. for hostel, the only risk is if the school go on long strike.
Re: Hotel Or University Hostel Blocks Which Is Wiser To Invest In? by Sarang(f): 1:58pm On Aug 08, 2017
naijahut:
I remembered building a student hostel 3years ago. It's a nice investment compared to owning a hotel.
Now I have 17 students hostel


How much will it cost?
Estimate
Re: Hotel Or University Hostel Blocks Which Is Wiser To Invest In? by 222Martins(m): 1:59pm On Aug 08, 2017
If you want to catch a fish, ask a fisherman, not a fish. Those shouting hostels don't even have a single investment in one. Sir, have you tried looking for a room to lodge in a hotel during the weekend? Let me use Owerri as a case study, please come into O'town on a Friday or Saturday and try booking a hotel? From my own experience, hotel requires a hands-on management but will yield more money. Since you are not on ground, then hostel or rental property is your best bet. Hotel is a business on its own; it goes way beyond just the physical structure.

3 Likes

Re: Hotel Or University Hostel Blocks Which Is Wiser To Invest In? by goldedprince: 2:01pm On Aug 08, 2017
dude put me in your house, give me that money, in 5 hours, i give you back your money with 50% interest.
note, i didnt say send me the money o. i said put me in your house and lock me u with tight security. give me 5hrs, i will give you back your cash plus 50% interest.
wetin i dey talk sef, even if he accept, i no even dey him continent.
anyways those 2 investments are rubbish. in this new age, there are better investments

2 Likes

Re: Hotel Or University Hostel Blocks Which Is Wiser To Invest In? by obyno1011(m): 2:01pm On Aug 08, 2017
When I visited Awka last, I learnt that unizik can enter lease agreement with you for hostel inside the school premises. You get some plots, build your hostel and manage for a period of years, after which it turns to school's property. Say about 20years.

To me, it's a good biz. Just make your enquiries.
Hotel will require more money, maintenance and close management, and there's competition, but it creates jobs for the unemployed.

You can build residential houses for your plots in Asaba and Enugu.
Re: Hotel Or University Hostel Blocks Which Is Wiser To Invest In? by NwaforIgbo: 2:02pm On Aug 08, 2017
I thought hostels can only be built be the school authourity?
Re: Hotel Or University Hostel Blocks Which Is Wiser To Invest In? by Richy4(m): 2:06pm On Aug 08, 2017
empressSkincare:
Go for Hostel blocks, It's easier to maintain and gives less headaches. Rent it out, collect your cash and your mind will be at peace. Hotels are more expensive to maintain though you'll get higher revenue but then your mind will always be there even if you put someone in charge they may end up shortchanging you. People are very wicked when handling businesses that's not there. Even if you're always available, they'll find all means of stealing from you not to talk of when you won't be available to monitor the hotel yourself, get ready for different stories.
Build hostel blocks or flats/self contain apartments depending on which is hot in the specified areas. Collect your money annually and sleep in peace. I wish you good luck, you'll need it.
E!

You really think having a hostel will give the owner rest of mind.. u feel the owners won't be thinking about careless students burning down their investment... expecially those using cooking gas.. And you know that it's not everyone in Nigeria that got insurance.. I know that hostel is easy to maintain but if i want a peace of mind, i will build a hotel.. it will be easy to monitor
Re: Hotel Or University Hostel Blocks Which Is Wiser To Invest In? by Nobody: 2:07pm On Aug 08, 2017
swiz123:
Hotels might guarantee greater income but the risks are there. But university hostels in a city like awka guarantees reasonable income with less risks.
The last time I checked,hostels near to the school pay 130k for one room self con.
Did i see hostel with less risks?

Pray these cultists don't run shittt in your hostel...& see if anyone will ever rent that hostel....
Talking from experience...

4 Likes

Re: Hotel Or University Hostel Blocks Which Is Wiser To Invest In? by GENTLETEE(m): 2:08pm On Aug 08, 2017
University hostel blocks is preferable! Quick ROI is assured.
Re: Hotel Or University Hostel Blocks Which Is Wiser To Invest In? by misterh(m): 2:08pm On Aug 08, 2017
NwaforIgbo:
I thought hostels can only be built be the school authourity?
I believe the OP is referring to building it outside school campus which will be for students to wish to stay off campus. That doesn't need tí involve the school authority.

1 Like

Re: Hotel Or University Hostel Blocks Which Is Wiser To Invest In? by Nobody: 2:09pm On Aug 08, 2017
SirJeffry:
Please this is for serious minded people especially gentlemen and ladies of investment and business sections. A friend recently built a hotel in Awka, Anambra State and he's advising me to follow suit but I'm sceptical about hotel business so I'm considering two options.

One is to build some blocks of University hostel in a city with high concentration of undergraduates like Awka and Enugu since I already have acquired a reasonable number of lands in Awka, Asaba and recently Enugu.

The other option is since this is about having something at home, I can fix a reasonable deposit in a bank like first Bank or UBA which will be accruing interest every three months. I'm scared of going into business because of past experiences and besides that, I'm not good in business. All I have been doing is buying lands and keeping the rest of my money in bank, please I need some help.
sirjeffry,use that money and come purchase a land at aladinma extension in owerri and build blocks of hostel all ensuit with ac space ....you will never regret it sir !!!!contact me to help you with the purchase of land in the aforementioned area ......students will pay as much as 170 in this area because of constant electricity and also build in a kitchen ....every year you will rank in real money from.your investment .....owerri is the place for hostel investment
Re: Hotel Or University Hostel Blocks Which Is Wiser To Invest In? by Nobody: 2:13pm On Aug 08, 2017
swiz123:
Hotels might guarantee greater income but the risks are there. But university hostels in a city like awka guarantees reasonable income with less risks.
The last time I checked,hostels near to the school pay 130k for one room self con.
My brother in-law just completed his hostel at Ifite. He rented each room at 180k, none is remaining
Re: Hotel Or University Hostel Blocks Which Is Wiser To Invest In? by JimmySnow: 2:14pm On Aug 08, 2017
That depends on your area of interest and which ever you choose tell your exact person. If you invest in Hotel, you've been materialistic and money conscious by so doing you adding to societal menace of breeding another generation of prostitutes While investing in Hostel, you will create an enabling academic environment for unborn generations to seek accommodation while on the long run, you add to society positively and we will have a better country at large. All things is about mankind!!!

2 Likes

Re: Hotel Or University Hostel Blocks Which Is Wiser To Invest In? by Nobody: 2:14pm On Aug 08, 2017
sirjeffrey i assure you .....think imsu for hostels !!!i pay 130k for my small.comfortable room ensuite with bathroom/toilet and a miniature kitchen ......a lecturer built a new hostel in our area but it is bigger with bigger rooms and virgin rooms ....before the end of december last year,all rooms were rented at the rate of 170k per room .......invest in hostel,think imsu !!!

1 Like

Re: Hotel Or University Hostel Blocks Which Is Wiser To Invest In? by Nobody: 2:16pm On Aug 08, 2017
naijahut:
I remembered building a student hostel 3years ago. It's a nice investment compared to owning a hotel.
Now I have 17 students hostel
u mean 17rooms?
Re: Hotel Or University Hostel Blocks Which Is Wiser To Invest In? by MadCow1: 2:16pm On Aug 08, 2017
SirJeffry:
Please this is for serious minded people especially gentlemen and ladies of investment and business sections. A friend recently built a hotel in Awka, Anambra State and he's advising me to follow suit but I'm sceptical about hotel business so I'm considering two options.

One is to build some blocks of University hostel in a city with high concentration of undergraduates like Awka and Enugu since I already have acquired a reasonable number of lands in Awka, Asaba and recently Enugu.

The other option is since this is about having something at home, I can fix a reasonable deposit in a bank like first Bank or UBA which will be accruing interest every three months. I'm scared of going into business because of past experiences and besides that, I'm not good in business. All I have been doing is buying lands and keeping the rest of my money in bank, please I need some help.

I will elaborate.

1 Like

Re: Hotel Or University Hostel Blocks Which Is Wiser To Invest In? by goldfish80(m): 2:17pm On Aug 08, 2017
There is no definite answer this question. It's a matter of personal preference guided with individual goals and aspiration.

A random cost analysis of a university hostel will give you 120k per year for a room. While you should get about same amount per hotel room monthly.

Let's assume a hotel room have a patronage of 12 days in a month which translates to 40% of a 30 day month at the cost of 10k per night, you could be looking at a gross income of 120k per room.
When you factor in other means of monetising some hotel facilities such as bar, swimming pool, Hall rentals, lounge , restaurant, gym and laundry, you could be looking a a gold mine. However, everything depends on management, even the hostel requires strict management because students can be very hard to deal with.

2 Likes

Re: Hotel Or University Hostel Blocks Which Is Wiser To Invest In? by Richy4(m): 2:27pm On Aug 08, 2017
NwaforIgbo:
I thought hostels can only be built be the school authourity?

It is not always the case ...there are some schools that doesn't have hostels or enough hostels that can accommodate all students..So individuals that got a land close to school build on it and rent it out to students
Re: Hotel Or University Hostel Blocks Which Is Wiser To Invest In? by luvlymabel: 2:28pm On Aug 08, 2017
i prefer university hostels bros
Re: Hotel Or University Hostel Blocks Which Is Wiser To Invest In? by laplace19(m): 2:29pm On Aug 08, 2017
SirJeffry:
Please this is for serious minded people especially gentlemen and ladies of investment and business sections. A friend recently built a hotel in Awka, Anambra State and he's advising me to follow suit but I'm sceptical about hotel business so I'm considering two options.

One is to build some blocks of University hostel in a city with high concentration of undergraduates like Awka and Enugu since I already have acquired a reasonable number of lands in Awka, Asaba and recently Enugu.

The other option is since this is about having something at home, I can fix a reasonable deposit in a bank like first Bank or UBA which will be accruing interest every three months. I'm scared of going into business because of past experiences and besides that, I'm not good in business. All I have been doing is buying lands and keeping the rest of my money in bank, please I need some help.
I'll advise you build student's hostel. Hotel comes with a lot of troubles. However, I would've advised you to build a hotel if the location of your land is in Owerri....For the hostel, You can go for a two storey building with a total of 30 to 36 rooms.
The one we completed late last year at Umuchima in FUTO cost about 45-50mil (2-storey with 30 rooms).
You can contact me for some hostel architectural drawings, sir...
I'm a civil engineer
Check my signature.
Re: Hotel Or University Hostel Blocks Which Is Wiser To Invest In? by crownbryan(m): 2:31pm On Aug 08, 2017
Hostel blocks anytime, any day.

Less maintenance, less expenses and less shit to worry about, except the students. But becareful, they can take your life.
Re: Hotel Or University Hostel Blocks Which Is Wiser To Invest In? by MissRaine69(f): 2:51pm On Aug 08, 2017
Do some market research, that's what investors do. Go to university cities to see what type of accoomation is offered, what do students look for in accomdation, budgets, types of rooms what to include and not include these are trying times financially that needs to be taken into consideration.
A hotel will depend on location, budget will it include a restaurant or not, and what type of clientatele you are hoping to attract.
Do your research.

1 Like

Re: Hotel Or University Hostel Blocks Which Is Wiser To Invest In? by MrMcJay(m): 3:01pm On Aug 08, 2017
Location is very important in the real estate sector. In my opinion, due to the high number of tertiary institutions in that area, student apartments would be more profitable than an hotel.

Students of Government-owned higher-institutions constantly suffer shortage of campus hostels. Hence, investors and private individuals build student hostels and let them to the students.

Fot instance, considering the fact that Lagos is a cosmopolitan city, land may be quite on the high side to embark on a project like this. However, if you look at somewhere like Ogun State, it has lots higher institutions and relative lower cost of land compared to Lagos. This makes it more viable.

Take schools like Federal University of Agriculture abeokuta (FUNAAB) or Olabisi Onabanjo University (OOU) for instance, you can easily get plots of land for around 2M and build hostels on them.

Very good Hostels in FUNAAB cost above 150k per annum depending on aesthetic beauty and facilities.

If you build a 30-room hostel of self-contained rooms, and you charge 150k per room, you are guaranteed about 4.5M per year. More rooms can be built depending on the investor. You can bill per session or per year, it depends in the owner of the property.

I have several Nairalanders with similar investments like this in FUNAAB and they're getting steady returns.

More details can be discussed on request or you can ask questions in this thread.

I can be reached via Watsapp on O8O6379O773.
Re: Hotel Or University Hostel Blocks Which Is Wiser To Invest In? by Goodnuel: 3:03pm On Aug 08, 2017
mfm04622:
If you have time to monitor your investment, build hotel. If not, build hostel.

The money from hotel is much more, but it require active monitoring. if not well managed, investment can go down the drain. for hostel, the only risk is if the school go on long strike.
Usually, rents are paid yearly here, even if schools go on a long strike, the students still remains students of the school, therefore, they still keep their rooms.
Re: Hotel Or University Hostel Blocks Which Is Wiser To Invest In? by Nobody: 3:04pm On Aug 08, 2017
naijahut:
I remembered building a student hostel 3years ago. It's a nice investment compared to owning a hotel.
Now I have 17 students hostel
Ok good to hear this. Have you had any issues for those three years? How about management? Do you think I can trust lawyers to manage it since I don't stay around?
Re: Hotel Or University Hostel Blocks Which Is Wiser To Invest In? by faceland: 3:04pm On Aug 08, 2017
If you are to keep money in the bank, save it as dollars or you would cheat yourself.

If you want stable, quite but small income, then build a hostel… If you are serious about making money (which would require that you are always around to manage stealing and laziness from staff), then build a budget hotel.

A hotel would earn you in one month the same amount a student hostel would earn you in 2 years!

I work as a manager/receptionist at a hotel and personally (to me), student hostel is the worst of the 3 option. If you need a reliable manager that would sleep in that hotel and be accountable to you with experienced in dealing with both staff and civil servant (tax people, sign board, police, LG etc), then contact me.

With Hotels you make money every day. Hostel once a year. Bank interest, once in a while (after inflation).

1 Like

(1) (2) (3) (4) (Reply)

US Boosts Dangote Refinery With $997m / Invest in Peninsula Homes with just 700k to get a plot. / N1.04tn Fine: MTN Apologises, Seeks Leniency

(Go Up)

Sections: politics (1) business autos (1) jobs (1) career education (1) romance computers phones travel sports fashion health
religion celebs tv-movies music-radio literature webmasters programming techmarket

Links: (1) (2) (3) (4) (5) (6) (7) (8) (9) (10)

Nairaland - Copyright © 2005 - 2024 Oluwaseun Osewa. All rights reserved. See How To Advertise. 60
Disclaimer: Every Nairaland member is solely responsible for anything that he/she posts or uploads on Nairaland.