Investors Move to Improve Hospitality Industry Growth

To improve the hospitality industry’s growth in Nigeria,  an initiative was commenced to help investors record more return on investment.

The initiative, known as ‘The Hospitality Value Chain Presentation’ is led by the African Alliance Group, in partnership with Pam Golding Hospitality and Tourism Company of South Africa, PM Africa, Castle  HMG, Ilifa, DSA Architects International and DHK Architects.

The Managing Director, Pam Golding, Mr Kamil Abdul-Karim, who led the presentation, in Lagos, recently, stated that hospitality is a profitable business but investors were not getting enough return on investment due to poor management.

“Hotel management is human capital intensive and we need to create jobs on our continent. Hotels, if run properly, can create the amount of jobs that we need. But it can only be rewarding when a structured approach is adopted,” he said.

Abdul-Karim stated that most hotels failed within the first few years of operations because the investors often failed to properly coordinate the project from the beginning.

According to him, every hotel should have a lifetime sustainability of a minimum of 20 years while project management must be seen as critical from the beginning.

He said most investors neglected development plan; worked with ineffective designs and exorbitant capital cost; and position the hotel inappropriately.

“The solution to some of these problems is to do a feasibility study before starting. There is no place for ego in the hospitality industry; you must understand what you are building as well as the market. It is also important to get the right development team together from the beginning and engage experts at every stage,” he added.

The Chairman/Chief Executive Officer of African Alliance Group, Mr Gregory Ozegbe, said there was a huge gap in the hospitality industry coming from the failure of many hotels.

“There is no need for that kind of situation. So what we are trying to do is to fill in the gap by bringing together experts and professionals which is why we call it ‘Hospitality Value Chain Platform’. There is plan to help with funding but there are processes and procedures for that,” he said.

According to him, African Alliance Group brought the companies involved together based on past experience working with them to deliver projects.

“The presentation will be done every three months because there is a lot to talk about in the business of hospitality and tourism,” he added.

 

Source: Punch

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