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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.
A recently released Henley Passport Index 2026, showed that Nigerian citizens can travel to at least 20 destinations outside the African continent where entry is allowed either visa-free, with a visa on arrival (VOA) at no extra cost, or via an e-visa.
This expanded access opens doors for Nigerian travellers to experience countries in the Caribbean, Asia, and beyond with greater ease.
Below is a comprehensive guide to countries outside Africa which Nigerian passport holders can visit without a traditional visa.
Visa-Free Countries outside Africa for Nigerian Passport Holders:
Barbados
Cambodia – Visa on arrival
Comoros Islands – Visa on arrival
Cook Islands
Dominica
Fiji
Haiti
Iran – Visa on arrival
Kiribati
Lebanon
Maldives – Visa on arrival
Micronesia
Montserrat
Niue – Visa on arrival
Palau Islands – Visa on arrival
Samoa – Visa on arrival
St. Kitts and Nevis
Timor-Leste – Visa on arrival
Tuvalu
Vanuatuul
Nigeria and Israel yesterday reaffirmed their commitment to deepening bilateral cooperation in research, technology and innovation as both countries pledged to expand partnerships that will drive entrepreneurship, commercialise research and accelerate economic development.
The commitment was made at the closing ceremony and innovation showcase of the I-FAIR Cohort of the Israel-Nigeria Innovation Fellowship for Aspiring Inventors and Researchers (I-FAIR) in Abuja, where the Ambassador of Israel to Nigeria, Michael Freeman, announced that funding had been secured for the fifth edition of the programme, scheduled to begin in October 2026.
Freeman described I-FAIR as a practical demonstration of the growing partnership between both countries, saying it had enabled Nigerian innovators to develop local solutions to national challenges through Israeli mentorship and expertise.
He said, “This programme has never been about bringing Israeli solutions to Nigeria. It’s been about helping brilliant Nigerian innovators develop Nigerian solutions to Nigerian challenges supported by Israeli experience, mentorship and innovation.”
The envoy noted that the initiative had brought together government, academia, investors, engineers and entrepreneurs to transform innovative ideas into businesses capable of creating jobs and stimulating economic growth.
Announcing the continuation of the programme, he said, “I am so proud to stand here today and announce that we have secured with our partners funding for I-FAIR 5 and I-FAIR 5 will be launching in October 2026.”
Freeman said the relationship between Nigeria and Israel had grown significantly over the past four and a half years through cooperation in innovation, agriculture, healthcare, education, water management and technology.
He expressed confidence that stronger collaboration between both countries would unlock greater opportunities for startups, research institutions and businesses.
According to him, “Israel brings experience and innovation, technology, agriculture, healthcare, cyber security, security and water management. Nigeria brings extraordinary talent, creativity, entrepreneurship and one of the most dynamic young populations anywhere in the world.”
He added, “I have no doubt that the best chapters of the relationship between Israel and Nigeria are still ahead of us.”
The Executive Secretary of the Tertiary Education Trust Fund, Architect Sonny Echono, also reaffirmed TETFund’s commitment to strengthening research and innovation through strategic partnerships with Israel and other stakeholders.
He said the I-FAIR programme aligned with Nigeria’s priorities in food security, agriculture, medicine, technology, clean energy and the circular economy, adding that TETFund would continue supporting initiatives that promote research commercialisation.
Echono stressed that collaboration between government, academia and industry remained critical to translating research findings into products and services.
He said, “It is this critical linkage, especially between science, engineering, technology and innovation, and the productive sector that is critical for translating R&D results and inventions into finished products for socio-economic benefits of our people.”
He disclosed that TETFund was working with partners to establish innovation facilities in about 60 tertiary institutions and had created a student innovation fund that would provide up to ₦50 million to students with commercially viable ideas.
The TETFund boss also announced plans for a National Research Fair later this year, where innovators would showcase products before policymakers, financial institutions and investors to attract funding and commercial partnerships.
Paying tribute to the outgoing Israeli ambassador, Echono described Freeman as a strong bridge between Nigeria and Israel.
He said, “Nigeria is grateful for your service. You have been a strong bridge between our two countries.”
Earlier, Head of Programmes at Innov8 Hub, Tolulope Aina, said sustainable economic development depended on building an innovation ecosystem that transforms ideas into successful businesses.
She noted that Innov8 Hub had supported more than 3,000 innovators, researchers and entrepreneurs, helping them convert research into products, startups and investment-ready ventures.
Aina said, “Nigeria does not suffer from a shortage of brilliant minds, what we need are stronger pathways that help those ideas become products, businesses, and opportunities that improve life.”
She thanked the Embassy of Israel and TETFund for their continued support in strengthening Nigeria’s innovation ecosystem.
According to her, “Building an innovation-driven economy requires collaboration, long-term commitment and shared purpose.”
Chief Judges drawn from countries across the African continent have resolved to collaborate and support measures aimed at ensuring the success of the Africa Continental Free Trade Area (AfCFTA) through an efficient, reliable and predictable dispute resolution system.
They agreed to explore ways to harmonize disputes resolution mechanisms in the continent with a view to making it easier and faster to resolve commercial disputes.
The resolutions formed part of the decisions taken at the third Africa Chief Justices’ Alternative Dispute Resolution (ADR) Summit held in Nairobi, Kenya between June 18 and 19.
According to a statement by the Special Assistant on Media to the Chief Justice of Nigeria (CJN), Justice Kudirat Kekere-Ekun, Mr. Tobi Soniyi, the African judicial leaders were of the view that commercial confidence depends largely on legal certainty.
They emphasised how structured Alternative Disputes Resolution could enhance commercial justice, protect the business environment and support the AfCFTA.
In her contribution, the Chief Justice of Nigeria (CJN), Justice Kudirat Kekere-Ekun urged called on African judiciaries to proactively prepare for emerging challenges to disputes resolution in the continent.
Justice Kekere-Ekun, who served as Co-Chair of the session on “Financial sector disputes, tax certainty and ADR: Building commercial confidence in Africa, noted that AfCFTA represents one of the most ambitious economic integration projects in modern history.
The CJN, who stressed the importance of a proactive Judiciary to the success of AfCFTA, warned that its success would depend, not only on trade protocols, tariff reductions and economic policies, but also on the strength and reliability of the institutions that support commerce.
Justice Kekere-Ekun urged her colleagues to examine how judiciaries in the continent, central banks, tax administrations and ADR institutions could work together to reduce uncertainty, prevent disputes, strengthen investor confidence and support the realization of AfCFTA’s objectives.
She envisaged the growth of intra-African trade to inevitably generate cross-border tax disputes; foreign exchange disputes; banking and payment system disputes; digital commerce disputes; enforcement of arbitral awards; recognition of foreign judgments; and disputes arising from regional supply chains.
The CJN, who said “African Judiciaries must proactively prepare for these emerging realities,” challenged African judicial leaders on the importance of disputes prevention mechanism.
She stated that modern commercial justice must move beyond the traditional focus on disputes resolution after conflicts arise.
“The most successful commercial systems are not those that generate the highest volumes of litigation but those that reduce the need for litigation,” she added.
Justice Kekere-Ekun, who stressed the importance of ADR, cautioned against seeing ADR as merely an alternative procedure.
She said ADR should rather be considered as a strategic tool for reducing transaction costs, preserving commercial relationships, enhancing investor confidence, reducing court congestion, improving ease of doing business and strengthening commercial certainty.
Sharing the Nigerian experiences, Justice Kekere-Ekun cited the recent decision by the Nigerian Supreme Court in the case of EMTS v. AFDIN Ventures Ltd. & Ors. (2026), which reaffirmed important principles of commercial certainty, including respect for arbitration agreements; recognition that consent may be inferred from conduct; judicial restraint from re-litigating arbitral disputes on the merits; and the importance of finality in arbitral awards.
According to her, the decision reinforced Nigeria’s position as an arbitration-supportive jurisdiction.
She identified timely resolution of tax disputes as an important factor in ensuring certainty and recommended Nigerian tax disputes resolution mechanism which she said “offers useful example of institutional reforms that support commercial certainty.”
Justice Kekere-Ekun recommended the Nigeria’s Tax Appeal Tribunal model, which she described as one of Nigeria’s most significant innovations.
According to Mr. Soniyi, Justice Kekere-Ekun’s message to his brother justices is clear: building an African commercial environment in which investors, businesses, regulators and citizens can transact across borders with confidence, secure in the knowledge that their rights will be protected and their obligations fairly enforced.
The summit advanced the goals of the African Chief Justices Alternative Dispute Resolution Forum (ACJADRF) to harmonize jurisprudence and establish common enforcement standards across the continent.
The CJN was, on the last day of the summit, nominated by the Chief Justice of Kenya as the Vice Chairperson of the Africa Chief Justice ADR Forum with effect from August 1, 2026. The nomination was ratified by the forum.
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