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Jovago.com Identifies 10 Costly Mistakes Hotel Owners Make
Hotel owners often make some basic mistakes when operating their hotels and then cannot understand why they either make no money or the hotel eventually closes down – below are just some general mistakes but these are not the only ones owners can make.
First there is the tendency to base room rates only on what competitors are doing instead of what is actually offered to the guest in relation to what it costs the hotel.
There has to be a balance between perceived value and the guests paying a fair value for what they are getting. Should a guest feel cheated the guest will never return.
It is very rare for a hotel to be premium in its reputation and location for it to charge what it wants.
Thus stated, where a hotel has no clear rate policy that dictates what the standard room type rates are and what is discounted to companies, groups or frequent guests can be costly for an owner.
Quoting on an individual negotiated basis can lead to mistakes. Some clients may abuse the discounts they are used to and if a hotel refuses to honour what they did before the guest may actually go elsewhere.
Though guest loyalty is a fallacy, if guests know how the hotel’s policy works and they know what to expect, they can actually become regulars and trust that for what they are paying for is fair in relation to what they are getting.
Such a rate policy is usually an internal document not shared with guests but highlights what the normal rates are and what a guest is offered for what they pay. Furthermore, it would also specify what discounted rate they would get based on a justification such as they are actually a group or a regular company or a regular guest. The guest is given the full rate and then the rate offered that best describes the qualification for such a discounted rate. No percentages should beused but rather the value of the discounted rates.
Writing on the mistakes hotelers make often times, Bruce Prins, notes that Hotels that misrepresent themselves as luxury or budget when in fact they are the opposite can alienate guests and cause the business to fail.
Services and facilities determine a hotel’s grading and status as either to be budget, economy, mid-scale, up-scale or luxury.
It is important for the owner to get professional advice on what grade their hotel is before making claims and deciding what rates to charge for their hotel rooms.
The practice of not doing preventative maintenance by checking all furniture, fittings and equipment daily or weekly and then using cheap labour or skills to conduct maintenance is destructive for a hotel.
The worst is when the hotel just plainly expects guests to stay in ahotel with paint peeling of walls, leakages everywhere and furniture and equipment either broken or not working at all.
A guest will realise they are being taken for a fool and move elsewhere. If it is a cheap hotel that chargescheap rates then this will attract guests that will go further to add to the deterioration of the hotel as an asset and its reputation.
Hotels that then add gimmicks to compensate for poor service, exorbitant rates or poorly maintained facilities, do so as a cheap attempt at making the guest feel that they are getting value for their money.
Gimmicks can be extra services, furniture or equipment added that actually do not really add value to the guest.
An example would be to place chocolates on the pillows at night time in a hotel where the air-conditioning does not even work. Hotels have to get the basics right such as cleanliness, hygiene, good service and working equipment before even attempting to add little touches to entice or appease guests.
Hotels do get old and money should be invested at least every five or ten years to ensurethe hotel is kept up to standard. That is if the hotel was properly thought out and built to begin with.
If no money hasbeen allocated for it or no investment is forthcoming, the hotel will lose out to its competitors and eventually go bankrupt.
In today’s world where competition is forever increasing no hotelier can afford to sitback and think the guest will just take it or leave it.
Owners that withdraw profits from the business on a continuous basis, especially during the first few years and then take loans when serious funds are needed are setting the hotel up for a disaster and wasting their money.
Profits should be kept in the business until all loans are paid and then these same profits should be used to either pay out as dividends or form part of future re-investment.
A hotel is a business but most of all its value is in its appreciation over time into an asset that can be sold at a high value, especially if it is successful and has a good brand name.
At least the building and land can be sold as is at a greater value when need be because property most of the time increases more in value than cash in the bank.
If staff in a hotel are exploited by either being paid far below what the average salary would be for their work, or not being given training or even being replaced at a whim without clear disciplinary policies applied consistently, it is a given that the hotel will lose business.
Staff would steal and in actual fact contribute to the hotel’s deterioration with a mediocre and apathetic attitude to their work, each other and the hotel guests.
It is common for anhotelier to also think that when the hotel pays to have people trained they will leave for better jobs. That may be so but then the question begs as to why the staff would be so eager to leave.
The fact that staff do leave hotels or move around is a normal situation in hotels world-wide and yet a lot of hotels that actually encourage staff turnover in a positive way find that they have better occupancies, happier customers and more profits.
The trick is to keep the staff that add the most value and show the most potential in ensuring the hotel is a success.
Lastly a hotel owner should be careful of who they encourage and even allow to stay in their hotel. When prostitutes are consciously allowed to operate in or from a hotel they draw in bad elements such as criminals and drug users.
Drug users or criminals then encourage kingpins to also frequent and then attract murderers and even entire gangs to take up residence.
Once the latter occurs the owner has no more control over his or her hotel and I subservient to the abuse and whims of the clandestine community he helps create within his or her own hotel.
Engr. Gbenga Adebayo, Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), has said that the telecommunications sector in Nigeria is once again on a strong growth trajectory.
Engr. Gbenga Adebayo, Chairman, ALTON
Engr. Adebayo stated this over the weekend on the side-lines of the unveiling of Nigeria’s first Digital Museum, an initiative that preserves and showcases the nation’s history and cultural heritage.
He commended IHS Towers for spearheading the project, describing it as another clear demonstration of the industry’s commitment to the Nigerian project. He noted that by investing in the preservation of Nigeria’s past while building the infrastructure of the future, IHS has set a remarkable example of corporate citizenship.
Speaking on the state of the telecoms sector, Engr. Adebayo said: “After addressing sustainability concerns earlier in the year, we are now witnessing significant new investments in the sector: the highest we have seen since before the COVID-19 pandemic. Members of ALTON are optimising networks, building new sites to meet rising capacity demands, upgrading existing infrastructure, and migrating more sites from old radio links to high-speed fibre connections.”
He further noted that Tower Companies (TowerCos) are enhancing security across telecom sites to mitigate against vandalism and theft. “Removable batteries and generators are now fitted with trackers to trace stolen items, and we strongly advise the public to desist from buying equipment suspected to have been stolen from telecom sites,” he cautioned.
Engr. Adebayo also highlighted ongoing capacity development within the sector: “We are training and retraining our workforce to adapt to emerging technologies. The Nigerian Communications Commission (NCC) has set strict service level requirements, and we are committed to not only meeting but surpassing them. Though network optimisation may occasionally cause service disruptions, we appeal to the public for understanding as these efforts will ultimately deliver a much-improved user experience nationwide.”
On industry governance, the ALTON Chairman expressed delight at the inauguration of the new Board of the NCC, chaired by Mr. Idris Olorunimbe.
“We are very excited about the appointment of Mr. Idris. His reputation as a man of excellence precedes him. Working with the competent and visionary Executive Management Team led by the Executive Vice Chairman, Dr. Aminu Maida, and the other Executive Commissioners, we are confident the sector is set on the right path to sustainability and growth. The new Board will strengthen the remarkable progress already achieved.”
Engr. Adebayo further welcomed the rebranding of Emerging Markets Telecommunications Services (EMTS) from 9Mobile to T2, describing it as an important milestone for the industry.
“EMTS is a very important member of ALTON, and we are pleased to see their rebirth as T2. This rebranding enhances investor confidence and underscores the value of collaboration. It assures the public that there are good times ahead for our industry, and we are very excited about what the future holds,” he stated.
Turning to issues of Right of Way (RoW), Engr. Adebayo stressed that investments can only thrive in enabling environments:
“The digital train is moving very fast. States that create hostile conditions for telecom operations risk being left behind. We will not continue to solicit endlessly for cooperation. Where deployment is unwelcome, investments will move to more supportive neighbouring states, and citizens of unfriendly states will inevitably suffer limited connectivity. We urge all state actors to partner with us so that no one is left behind in this rapid transformation.”
On the issue of multiple taxation, Engr. Adebayo commended the Federal Government under the leadership of President Bola Ahmed Tinubu, particularly the Presidential Tax and Fiscal Policy Reform Committee, for its ongoing reforms. Engr. Adebayo described the reforms as a pivotal step toward streamlining Nigeria’s tax system and eliminating the burden of multiple taxation. He highlighted the positive impact on small and medium-sized businesses, noting that the changes will promote entrepreneurship, attract investment, and foster a more business-friendly environment.
“We eagerly await the commencement of the implementation in January 2026. We are confident that the over 56 taxes and levies currently borne by our members across various jurisdictions will soon become a thing of the past.”
Engr. Adebayo concluded by appreciating all industry stakeholders and reaffirming ALTON’s commitment to the Nigeria project:
“The transformation we are witnessing in our sector has not been experienced in recent years. We thank the leadership of the NCC for their commitment, we congratulate and welcome the new Board under the leadership of Mr. Idris Olorunimbe, and we look forward to even greater milestones ahead.
The industry is on the march again, and together, with the support of the public in protecting our critical infrastructure, there is no stopping Nigeria’s telecommunications sector as a driver of national economic stability and growth.”
By James Ishaku
The Bauchi State Government, through the state’s Bureau for ICT and Digital Economy in partnership with the National Information Technology Development Agency (NITDA), has officially launched the Digital Literacy and Skills Framework (DL4ALL Bauchi Initiative), a flagship programme aimed at equipping citizens with essential 21st-century skills and positioning the state as a hub for digital innovation.
Declaring the event open, Bauchi State Governor, Senator Bala Mohammed, described digital literacy as a fundamental right for all citizens. He positioned the initiative as part of a broader vision to prepare youth and civil servants to compete globally, create productive jobs, and address poverty through technology.
“Technology and innovation are the fastest-growing industries in the world,” the Governor said. “With the right skills, people can now create sustainable value from anywhere—even from their own homes. This is how we will empower our youth, strengthen institutions, and enable our entrepreneurs to succeed globally. Beyond digital literacy, we are committed to producing an army of experts in advanced digital skills who will drive innovation and economic diversification.”
The Governor emphasised that the ultimate goal is to create productive jobs, “jobs that provide lasting value, fight poverty, and restore dignity.” He noted that over the last six years, the state has invested heavily in infrastructure to open up the economy and connect the vast potential of its youth to global markets.
Speaking on behalf of NITDA’s Director General, Kashifu Inuwa Abdullahi, the Director of the DG’s Office, Dr. Ayodeji Eniola, commended Bauchi State for “taking a bold step towards ensuring the state is not left behind in the ongoing global digital revolution.”
The DL4ALL Bauchi Initiative aligns with NITDA’s Strategic Roadmap and Action Plan 2.0 as well as the National Digital Literacy Framework (NDLF), which focuses on six core competencies: device and software operation, information and data literacy, digital content creation, communication and collaboration, safety, and problem-solving.
The DL4ALL Initiative is anchored on three strategic programs, firstly, the informal sector program which equips artisans, traders, and other informal workers with practical digital skills. In partnership with the National Youth Service Corps, NITDA has recruited and trained 7,101 Digital Literacy Champions who have already reached over 267,000 Nigerians, with a target of 30 million beneficiaries by 2027.
Secondly the workforce readiness program which provide the public servants, graduates, and job seekers with digital productivity and employability skills. NITDA plans to train five million workers nationwide, collaborating with partners such as Cisco and the Office of the Head of Service.
Lastly, the educational sector program which integrates digital literacy into school curricula. A new Basic Education Digital Skills Curriculum, approved in October 2024, will roll out in September 2025, alongside plans to train 3,600 teachers nationwide.
Inuwa further noted that Nigeria’s greatest resource is its young population. “With Bauchi’s abundant human capital and strategic position in northern Nigeria, the state has enormous potential to become a hub for digital innovation and economic transformation,” he said.
He noted that Nigeria’s greatest resource is its young population. “With Bauchi’s abundant human capital and strategic position in northern Nigeria, the state has enormous potential to become a hub for digital innovation and economic transformation,” he said.
In his remarks, the Director General of the Bauchi State Bureau for ICT and Digital Economy, Malam Hayatudeen Babamaji, said the event was “not just about launching a programme, but about setting a bold agenda for the digital future of Bauchi State.”
He reaffirmed the state’s commitment to becoming a leading high-security digital hub in Northern Nigeria and across the country, creating jobs and generating revenue through technology-driven growth.
He added that Bauchi State has taken a historic step towards building a secure, inclusive, and globally competitive digital economy aimed at bridging the digital skills gap in the state, thus paving way for the creation of jobs and revenue flow for the state.
The event attracted senior government officials, technology leaders, development partners, and members of the State House of Assembly, marking a significant milestone in Bauchi State’s journey towards a secure, inclusive, and globally competitive digital economy.
Corporate Affairs Commission (CAC) has announced the removal of 247 companies from its official database, citing improper registration.
In a public notice shared via its official X handle on Friday, the Commission stated that the affected entities were never duly registered as limited liability companies.
According to CAC, the Registered Certificate (RC) numbers allegedly linked to these companies were never assigned to them, rendering their incorporation invalid.
As a result, the Commission has delisted the companies and removed their names and RC numbers from its records.
The CAC urged the general public to disregard any claims suggesting that these companies exist as legal entities or possess any rights or obligations under Nigerian law.
This move is part of the Commission’s ongoing efforts to maintain the integrity of its corporate registry and protect the public from fraudulent business operations.
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