The business model for a successful hotel

Room revenue. Guests per night.  

These are the main measures used by experts in the hotel industry to understand how well the sector is performing. In PwC’s latest hospitality report, Nigeria is labelled as the “fastest-growing market” among five countries in Africa due to the incoming number of new hotels and growth in guests nights. 

The focus on rooms makes sense, “hotels,” a name originated from the old French word “hostels,” are establishments known for providing accommodation. 

However, look closely, and you realise that this is only one part of the story. 

Over the years, hotels have evolved into destinations, providing more than a place to rest your head. Take the Atlantis Palm Hotel in Dubai. It boasts over 20 restaurants and bars, 33 retail stores ranging from Cold Stone to Versace, a waterpark, an aquarium, and a range of experiences including swimming with dolphins. 

Many of its visitors don’t