How to Start a Guest House Business

Here is a detailed guide on How to Start a Guest House Business.

Would you like to know the intricate details of beginning a guest house business?

Do you need a sample guest house business plan or feasibility study?

Would you like to work together in the tourism and hospitality business? If yes, I advise you to read on.

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Are you planning on starting your own guest house business? If yes, you should know that though guest house business is a lucrative venture. It involves a lot of technicalities and is not so easy to start. The procedure for starting a guest house business is quite technical and involves a lot of planning and strategizing.

Likewise, I want to mention that a guest house business goes beyond just erecting a building. It involves intensive management and requires constant innovation. So in this article, I will be highlighting everything you need to know about starting a guest house business in Nigeria.


If you have a chance to visit Owerri (a city in Imo state) during the end of the week (Fridays, Saturdays and Sundays), you will be shocked to find an enormous number of guest houses specking the city.

However, there is no convenience space in any of the guest houses. Furthermore, surprisingly, enough, Owerri is not even among the main ten urban areas in Nigeria (Lagos, Kano, Port Harcourt, Ibadan, Ogun, Enugu, Abuja ought to be ahead of the pack). That’s as far as populace and level of industrialization is concerned.

This shows that guest house and hospitality business is a profitable business anytime any day, as long as you are sited in a good area. You can start a large or small scale guest house regardless of your country of residence. So if you reside in Nigeria, United States, Canada, Ghana, etc; you will find this article useful.

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Starting a Guest House Business – Sample Business Plan Template

1. Decide on the kind of guest house office you need to open

To start with, you need to decide on the kind of guest house you need to open. Guest houses are ordered by various elements. Some of these elements include:

  • The size of the guest house
  • Where the guest house is found
  • Type of services offered and the quantity of rooms accessible.

Some common types of guest house include:

  1. Bed and Breakfast guest houses: Bed and breakfast guest houses usually have around 20-30 rooms. They are typically individuals’ homes changed over into guest house offices. These guest houses are less expensive and offer restricted administrations. Bed and breakfast guest houses are normally keep running by the proprietors of the office who likewise serves breakfast to the guests.
  • Budget Guest houses: Budget guest houses offer modest settlement to guests with constrained administrations.
  • Resort Guest houses: Resort guest houses usually have recreational offices like a fairway, a shoreline or an island where guests can appreciate these offices while they visit.
  • Airport Guest houses: Airport guest houses give convenience to making a trip travelers to pass the night. They are typically found near the airplane terminal.
  • Suite Guest houses: Suite guest houses are progressively getting to be plainly prevalent in the guest house industry. Suite guest houses give guestrooms that additionally have a joined front room and now and again, a kitchenette where guests can cook their dinners.
  • Business Guest houses: Business guest houses are generally worked on account of the business explorer. They offer complimentary daily papers, web get to, business focuses and fax machine administrations to guests.

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2. Make a creative idea

Make sure you create exceptional services to coddle your clients. You can offer them complimentary breakfast, swimming pool, Jacuzzi, gymnasium, massage services, valet parking, and internet services.

You can even offer them options of changing their rooms after one night to enjoy the different rooms you have. Your guest house building should also be constructed with warmth and serenity in mind.

3. Conduct a Feasibility Study

A guest house business is not something you can simply run into without being outfitted with the perfect measure of information. It is essential to direct an attainability investigation of the region where you need to site your guest house.

An attainability or feasibility study would help you to decide whether it is a beneficial business and how productive the business would be. It would likewise help you locate the most appropriate area for your guest house.

You may lead the feasibility study by going by the area, guest houses around, giving out surveys and making inquiries.  If you cannot conduct the feasibility study by yourself, you can make use of a specialist or expert to do it for you.

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4. Determine your Ownership Structure

Guest house business is capital intensive. Therefore, you may need to bring in a couple investors. It is imperative that you choose the possession structure of your business before you begin.

Would you like to be the sole proprietor of your business? Or would you rather like to run it as an association with others?

5. Franchising

One prevalent method for beginning a guest house business is to purchase an existing respectable guest house business by franchise.

You should likewise choose if you need to start your guest house from the scratch or purchase and repair.

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6. Put up a Strategic and Fitting Business Plan

At this stage, you should have your professionally prepared business plan in light of the fact that this is the thing that you would show to the bank or potential investors.

Your business plan should be professionally prepared and incorporate all the important information that would demonstrate your financial specialists how reasonable the business is.

An inadequately planned business may dishearten investors so it is vital that you put enough strength into setting up your business arrange or motivate somebody to set it up for you.

7. Secure funding or investment

You will most likely be unable to attempt such a expensive venture from your savings alone. Accordingly, you may need to approach your bank for an advance or search for financial specialists who would put some cash into the venture.

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8. Register Your Guest House Name

Good name they say is better than silver and gold. Choose a very attractive name for your guest house, some names attract while some are not.

Choose the one you think would make someone want to know “what goes on in there?” Words like: Exquisite, Delight, Deluxe, Luxury, Platinum, and Classic are good in guest house names.  Choose your name very carefully!

After that, proceed to register your name with The Corporate Affairs Commission (CAC) of Nigeria. If the name you’ve chosen isn’t yet registered by someone else, it will be registered for you. N30,000 would be enough for that.

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9. Choose a Nice Location

This doesn’t need to be so fascinating. Just a befitting spot in your area is ok. Yet, let it be in a place that is anything but difficult to find. Setting it properly by the street side is best. Arrange and procure it with the exception of you as of now have a property in a decent zone. This would cost you some cash from say, N800,000.

The costs of property fluctuate from place to place. We can’t generally put a cost on this. Simply, do your home word and attempt to plan legitimately.

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10. Obtain necessary permit and business license

You would need to register your business and get every single fundamental documents at the permitting office. This would keep any type of badgering from government authorities for maintaining an unlawful business.

11. Staff Recruitment

If you have never worked in a guest house or if you have absolutely no idea about how to run a guest house, you should employ a manager with experience to run the business for you.

This is because guest house business is technical. Of course, you may ruin the business and run into losses if you do not have the necessary knowledge. Same applies if you lack the experience to manage the business excellently.

You would also need to recruit other supporting staff. It is important to conduct interviews, and train your staff adequately. Your staff must be polite and courteous to customers.  They must be people that are always willing to lend a helping hand. I mean people who can solve problems with a smile on their faces.

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Get Your Guest House Business Right from the scratch. It appears like it is a standard in this part of the world that each nearby guest house must be grimy and unkempt.

After all, is it not simply to mull over bed with a lady and get up the following morning? This is the main area where little guest house proprietors are missing the point.

Guest house is past only a bed and bedding for sex, it is a place for comfort, not quite the same as what is realistic in many homes. Get this part of your guest house business right and you are a champ in the business!

If you need a complete business plan, please let us know. Or, you want us to help you set up this business, kindly contact us. Otherwise, Please check out these other business ideas you can do.

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