Hello guys,A friend is planning on setting up a hotel in either kisumu or nakuru,how is the hotel business in those towns.How much profits can one achieve from a 3 star well established hotel in a nice business environment.Some pros and cons of hotel business
Alipe mtu aende Nakuru na Kisumu amfanyie feasibility study. Cheaping out is expensive in the long run.
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I have seen mediocre businesses succeeding in a good location. I have also seen amazing businesses failing at a bad location. Wewe jua tu haimatter kama ni Nakuru ama Timbuktu, it better be a damn good location. For a 3 star hotel, it better be on a busy street/road.
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Thanks buddy
Ok
Hotel should face the road. Traffic should be a minimum of 60 vehicles per hour. That is my crude way of determining a good location for a 3 star hotel.
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I just used a 3 star to make it look closer to that but the hotel he intends to buils is a 4 storey with a pub that can accomodate almost 60 pple and a restaurant plce with a seating capacity of 50 people and the rest are confrence facilities and deluxe lodges
Terrible business venture. I have a buddy who has one in HomaBay and the overheads will make you a permanent visitor at credit facilities and banks because margins are thin and these customers are ephemeral, today they’ll fill up every table and the next they’ve shifted their attention elsewhere.
Kenya is changing very fast and gone are the days where such legacy businesses had staying power when you could plant a feel good venture and watch it flourish. This ecosystem is purging out unsustainable and undifferentiated businesses with ruthless abandon, you MUST build a business that’s solving real needs or you will feel the wrath of this market.
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Naxvegas can do well. Location muhimu… Look into karibu njoro (Egerton dead area) or njia ya kuenda bahati/subukia. Maili tano ama maili kumi hapo in between
Great advuce mkuu
Hotel as in accommodation ama restaurant ya kukulia. Dont be like those big hotels n accommodation in the middle of nowhere. Mna check in mnapata less than 3 guests in the whole premises. Me i think hizo places ni za kuosha pesa. But high traffic location and lots of marketing.
Most likely the OP’s objective. Hawekua alipata hizo pesa via legit business coz if it were so, he would have the answers to running another successful biz
Hela ni legit my friend
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Expound on this please
Ako 50/50 on location na hana experience.
Hotel and lodge business ni trick; utakamuliwa ni wafanyikazi properly especially ka hauna experience.
Tell your friend to build flats za wananchi in a county HQ.
To succeed,advise him to properly manage working capital. Factor in short term and future operating expenses (18months) as initial capital.
Marketing budget is also crucial as the Kenyan Market is evolving and business being more cut-throat.
Ideally, Low-Cost High sales would be my go to model. Lakini utamu wa biashara ni Kuoshwa.
All the Best
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Nitafanya kazi mosooori.