Tuesday 13 October 2015

HOTEL BUSINESS VERSUS BAR SPOT BUSINESS: WHICH IS MORE PROFITABLE?




No wise business man should rush into hospitality management. Just because the other guy is excelling in the business does not guarantee your success too.
FACTS ABOUT HOTEL BUSINESS
1.       You need a nice location, preferably in the heart of the city to attract more clients. The problem is that getting a land in such area is very expensive. For instance, in Benin City( Edo State) a 200 by 200 feet land space in Airport Road or Sapele road runs into over N100 millions.
2.       Having a standard hotel with state-of-the-art facilities is very dear(expensive).
3.       You need many workers to run the hotel smoothly.
4.       The cost of maintenance is very high. In fact, from the start to the finish it is pretty expensive to own a hotel.
5.       The number of clients you are likely to attract is unpredictable
6.       The rate of repeat patronage is low
7.       It has a very long period of capital recovery
8.       The risk level is high
FACTS ABOUT BAR BUSINESS
1.       The location does not matter so much as for hotel. You attract customers anywhere, everywhere and at any time provided you have choice drinks and assorted meat.
2.       Depending on your taste, cost of set up is not high. You can even rent a space in the best strategic location.
3.       You do not need many workers on your pay roll
4.       The cost of maintenance is low.
5.       The rate of repeat patronage is high. One customer could keep coming with his friends again and again.
6.       It has a short period of capital recovery
7.       The risk level is low
8.       It has a high profit potential especially when you play your cards well.
MY ADVICE
In view of the foregoing, instead of pumping upwards of 50 million naira into a building a standard hotel with a rather low turn over rate, go for a bar business where you spend far less but with a high turn over rate. If you need more information in this regard, feel free to call 07031384722 

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