Loomzy Suites to expand operations in Nigeria in 2022
Loomzy Suites, a fast-rising boutique and hotel chain has announced its plan to expand its operations in Nigeria by 2022 leveraging technology which will enable improvement of the hospitality services it renders to clients.
“This business has been structured in a way that its entire revenue does not come from lodging and serving just its guests but also catering to non-guests through its strategic business units which provide competitive yet affordable massages, kitchen and laundry services,” Uloma Okoro, Chief Executive Officer (CEO) Loomzy Suites, said this that
Loomzy Suites currently owns 3 boutique hotels in the highbrow Lekki area of Lagos, Nigeria and has served over 1,300 guests while operating at a capacity of 80-85 percent.
The hospitality company will expand its operations beyond 15 rooms while revamping its technology to deliver top-notch service and quality through contactless processes and operations.
In this light, the firm is also eyeing a profit before tax of N133.8 million in 2022 as it generates increased returns during the course of the year.
“In a five-year financial forecast, Loomzy Suites hopes to end 2022 with a Profit before Tax (PBT) of N133.8M, an amount expected to double by the end of 2023 at N328.1M and by the end of 2026, we project a profit of N514.7M,” she said.
After securing funding of N115 million from her private network of friends, family and followers to kickstart its operations as Loomzy Suites Brand, the value of the startup was revised to N900 million (roughly $1.7M). Since then it has gone on to receive significant commitments for at least 35 percent of its shares from potential investors and stakeholders.
“Most of the seed capital was raised through a private network, the funds were raised as debts with fixed interests, based on agreed terms and conditions with the investors. At the moment, a good number of these investors have decided to become shareholders in the business; thereby turning their loans to equity,” she explained.
Okoro said that going forward, the company is set to raise capital for its next growth phase leveraging investments from its private network and guaranteeing equity through a private placement.
“We are now ready to register a full-service hospitality firm by selling 40 percent of the company’s shares through Private Placement, we are also giving room for new investors who believe in the vision to invest in the business,” she added.
Speaking about the use of advanced technology, Okoro said with the outbreak of COVID-19 in 2020, it became necessary to change the way the hospitality sector operates and this has brought about two basic needs in the hospitality sector; the need for space and the automation of processes.
“It is necessary to compartmentalize and automate processes to avoid leakages and ensure standardization in processes like hotel booking, to food and inventory management, to the use of facilities and amenities within the hotel,” she said.