Do high end hotels make money? I’ve gone through almost every report from multiple sources but the numbers I see don’t have individual hotel revenue.
Where can I get this data? Ata public tax filings from these hotels hazipatikani. However, I do see that average room occupancy hovers between 40% - 70% depending on the season.
Quick math indicates that a hotel with 200 rooms each charging $200 a night (like the Fairmont Mt. Kenya Safari Club) could mint $20k a day at a minimum.
Watch Ben Mallah on Youtube to learn about real estate and hotels, especially in the jurisdictions you claim to be in. Thank me later. A $200/night hotel is high end in KE but mid-range in USA.
I have no interests in America. I’m mostly interested in the Kenyan context.
The reason I’m interested in Kenya is that high end hotels there charge as much as high end hotels in Europe yet labor costs are cheaper.
Specifically, I want to see Kenyan numbers (Hemingways Watamu, Hemingways Karen, Fairmont Mt. Kenya etc). I’m willing to pay for any data on revenue and profits.
The hotel business in western countries is pretty different.
[$200 is what one night at the Bellagio in Las Vegas charges. Hotel costs seem to be equal in my opinion between the two jurisdictions which means Kenya is a better bet because there’s a lower barrier to entry]
Yeap and that’s the data I want (privately owned ones). Franchises take 11% of revenue man. In any case, they must pay taxes. Where are these records stored? There’s nothing on the KRA website.
At this point just hire James Bond for some corporate espionage. Nobody will share such private info with you. Start by getting a friend at KRA. That’s where I would start if I really needed that information. @Uncle_wa_rangerover alisema he used to work at KRA. Grease some palms at KRA to get your hands on those precious financial statements. Alternatively, grease some palms at Big 4 firms because they prepare the financial statements for those hotels anyway. Although I would prefer the KRA route because you only need one access point for all hotels and GOK employees are easier to bribe.
Some hotels, especially those like the Fairmont, can earn a lot, but it’s important to factor in operating costs—staff, maintenance, utilities, and marketing can eat into that $20k per day.
Shida ya hotels ni high barriers to entry. Sure. You can earn that much and more. But you need a lot of capital to launch the business. That’s the catch. Just a few years ago English Point Marina in Mombasa was indebted to KCB to the tune of a few billion shillings.
I think it is a good business if you have the capital because that is the most difficult part - high capex and high opex.
If your goal is to make a hotel stand out, small details matter. Good service, cleanliness, and a unique touch can build a strong reputation. Checking how well-established places operate, like canberra hotels australia, can give useful ideas on guest experience, pricing, and overall management. Sometimes, even simple things like responding quickly to customer feedback or offering small complimentary perks make a big difference in gaining loyal visitors.
From my own experience, I once stayed at a luxurious hotel that seemed to be doing great, but I noticed how much effort went into maintaining the facilities and keeping things running smoothly. It was like a well-oiled machine, and I saw how they used things like hotel meeting room Singapore to attract business clients, which helped keep the revenue flowing even in the off-season.
Just so you know. Hotels and large real estate holdings are mostly held for speculation and maintenance(creation ) of generational wealth. They only try to break even on average, having calculated that any gains from purchase price, will at least offset losses incurred upto date of sale.
