News

February 10, 2023

How to avoid bankruptcy while running hotels in Nigeria – CEO, Royal Galaxy Hotel

How to avoid bankruptcy while running hotels in Nigeria – CEO, Royal Galaxy Hotel

By Gabriel Olawale

The Chief Executive Officer of NIMA Hospitality Services, Mr. Omoniyi Oluwafemi has admonished people contemplating venturing into the hospitality business to do diligent research before doing so to avoid bankruptcy.

Speaking ahead of the official opening of the Royal Galaxy Hotel at Unity Avenue Junction in the Agbado Ijaye area of Lagos State, Oluwafemi said that it’s an undeniable fact that hospitality services have experienced sporadic growth in Nigeria as the sector has successfully attracted international brands.

Oluwafemi who is a member of the International Hospitality Institute, said that the advent of foreign brands like Radisson Blue and Marriott hotels has further raised the bar.

“In Nigeria, most of what we had in the 80s and early 90s were makeshift motels, not the proper hospitality that you can say is hotel. But since early 2000, there has been sporadic growth in the sector. We now have wealthy Nigerians investing in hospitality.

“In Nigeria, we now have three- and four-star hotels, we also have apartment hotels for families to spend a nice time, as well as normal hotels for business and tourists.”

Oluwafemi who is also a member of the International Association of Hotel General Managers said that despite the lucrativeness of the hospitality business, it requires proper planning and implementation to forestall an undesirable outcome.

“As an organization, we are into hotel management, staff recruitment, training, and procurement, among others. If you want to run a successful hotel business, the first thing you need to bear in mind is that you need a well-trained and experienced staff that will help you run your hotel.

“You must also have enough money to operate because the hotel business is capital intensive and requires financial backing.

If you are familiar with the industry, you will see that most of the international brands I mentioned earlier are well positioned in business areas like Ikeja, Ikoyi, Lekki where they can find their target market.

“You must understand where you want to place your hotel and the kind of services that you can render in that particular location without mixing things together.” Failure to get it right, along with inexperience staff, can lead to bankruptcy.

You must be able to understand the market to succeed because in this hospitality market, we have different markets, such as cooperate guest, walk-in guests, and a mixture of the two, among others.

Royal Galaxy Hotel can be categorized as a mixture because we can accommodate cooperate and walk-in guest. Our hotel is structured in such a way that business guests can transact their business without any music interference. We have a dedicated soundproof VIP lounge for guests who love good music.

“Another thing that stands us out at Royal Galaxy is that we have well trained staff and a serene environment which is why we are calling on people within and outside the country to come and experience our warmth environment.

“Our location is about a 20-minute drive to the airport without traffic. “We offer affordable services without compromising our standards.”
Corroborating his views, the Managing Director and Chief Executive Officer, Koyaba Nigeria Limited, Koyaba Real Estate and Koyaba Table Water, Mr. Koyaya Bagwolo said that the hospitality business is a desire of every businessman.
“You cannot take away hospitality from business because every businessman needs a comfortable place and a cool environment to transact his or her business successfully.”
Bagwolo who is the founder and Chief Executive Officer of Royal Paradous Hotel and Suit and a shareholder of Royal Galaxy Hotel & Suit, said that COVID-19 affected the business of hospitality but the business is back to life.