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Top 10 Reasons Why Hotels Fail In Nigeria And Solutions

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Top 10 Reasons Why Hotels Fail In Nigeria And Solutions. Are you wondering why Hotel Business fails in Nigeria? here are Major Reasons And Solutions You Need To Know.

Reasons Why Hotels Fail In Nigeria And Solutions

Are you a potential hotel owner? Are you seeking information on why hotels fail in Nigeria in order to make yours’ better? You are not on the wrong page as we have provided substantial information on why hotels fail in Nigeria.

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Table Of Contents

What is a Hotel?

A hotel is basically a facility that provides for accommodation, meals, hospitality and many other services for both travellers and tourists. Although, in recent times, people or couples that want to have their privacies often make use of hotels.

What are the services hotels render?

  1. reception guests
  2. room service
  3. food service
  4. security.

What are the reasons hotels fail in Nigeria?

There are a number of reasons why hotels fail in Nigeria. However, I am going to give you the Top Ten reason why they do. They are:

  1. Lack of online presence
  2. Lack of proper Management software
  3. Poor furnished room
  4. Problem of retaining staff
  5. Technology problems
  6. Bad hotel branding
  7. Inadequate planning and marketing
  8. Bad location of the hotel
  9. Price issue
  10. Lack of flexibility

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Top 10 Reasons Why Hotels Fail In Nigeria And Solutions


It cannot be overemphasized that many hotels do not have provision for websites or online bookings. It is important too note that for a hotel to thrive, it should have online platforms. The whole essence of this is to attract more customers.

This is the reason may hotels fail to progress well in Nigeria. If you are a potential hotel owner, it is important for you to consider this as part of your plans. On the other hand, if you already own a hotel, with online platforms, why not consider making arrangement for it?


Theft is a common occurrence in most Nigerian Hotel, it might be staffs stealing some of the hotel properties most times, which is food or in rare occasions, customers stealing from the hotel.

It makes it very difficult for things to be accounted for. Well, this can be reduced in proper management software is put in place. Proper management software could be a CCTV which allows one to track happenings in the hotel from time to time or a computer tracking system of properties of the hotel.


Many hotel owners’ fails to understand that if a room is poorly furnished, it puts the customers away. A poorly furnished room for a example could be one that has a leaking roof, faulty Air condition and so on.

To maintain growth in any hotel in Nigeria, it is important to furnish the rooms properly.


This is a very big challenge facing the hotels in Nigeria as staffs are not properly retained as a result of maybe theft or damage to the hotel properties. The consequence of not properly retaining staff is the problem of Accountability. It makes Accountability and tracing of event in the hotel really difficult.


It is no longer news that any hotel properly stuffed with high technology often attracts more customers. This technology often includes: free Wi-Fi, online bookings, CCTV etc. The more technological advanced the hotel is, the classier.

Apart from the fact that technological advancement makes the hotel very classy, it also makes the hotel more comfortable. The bottom line of this is that on many occasions, we fail to accomplish such in Nigeria.

In other advanced countries, it is almost impossible to get an hotel without high technological advancement but in the case of Nigeria, I do not really understand if most hotel owners just wants to make quick money without properly putting in the right technology in place.

In this time and age, many people go about stealing, for instance, if one of the hotel attendants goes to help with room service and steals one of the customers properties, CCTV will make it possible to fish such person out. In fact, the rate of stealing will reduce drastically for the fear of being caught.

This will also make the customer feel much secured about his or her belongings. One thing many hotel owners do not even know is that the advanced the hotel is in Technology, it makes it easy raise the prices of its services without pricing from its customers.

I have been to a hotel before with my friend before and the price the attendants quoted was #7000 per room, my friend asked for the last price and they said #4000. This shouldn’t be so. It is probably because they know deep down that the hotel is poorly facilitated.

If you want to go into hotel business, you should consider properly facilitating the hotel before it kicks off

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It should be noted that a very good hotel should stand out among its counterparts. This is called “Branding”. Most times, the downfall of hotels in Nigeria is as a result of bad branding. It is important that one understands one’s hotel brand and communicate it to the staffs and customers.

Many people love to be in a hotel that feels like home away from home. To sum this up, branding also balls down to its customer service. If the hotel has bad customer service like: delaying, hostility etc. it is difficult for that hotel to retain its customers and that will impede the growth of the hotel as every hotel wants to attract customers and make profit from rendering services.


For the growth of any organization or facility, Marketing should be properly done. The goal of marketing is to attract more customers. One can market one’s hotel through a number of ways such as: online bookings, flier, social media, promo etc.

Most hotels also fail to employ proper and skilled marketers. They most times make use of random staff to do this who many at times do not even know what marketing is all about.

Inadequate planning comes in when the hotel management is unable to plan for a proper marketer or promoter of the hotel.


The location of a hotel many at times matters a lot. If the location of a hotel is not easily accessible, it becomes a big problem and might not attract many customers as wanted .

Before establishing a hotel, one should consider where it will be located.


The problem of price has been a big issue in the sustenance of a hotel. One important point to note here is that an hotel should be one that is affordable for the people around it. One cannot set up an American standard or a five star hotel in a village part of Nigeria and expect to charge as much as those with the same standard charge. Most times, the outrageous price of hotels chases its customers away.

There are a lot of things to consider before choosing the price of services rendered in the hotel



The problem of lack of flexibility cannot be overemphasized as this is a common problem in most hotels in Nigeria. Flexibility implies that the staff and management of the hotel adapt to new ways in order to improve the hotel. This can also be said as improving with the latest trend consistently.

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