‘Why many hotels and hospitality establishments are not thriving’

Francis Agomuo, a seasoned hotel and hospitality administrator and general manager, Summer Inn Essentials, Owerri, in this interview with SABY ELEMBA, spoke on the state of hospitality industry; the impact of the prevailing economy on the sector, why many hotels are not thriving, among others. Excerpts:

You are a seasoned hotel and hospitality administrator, could you please, tell us, in a nutshell, why many hotels fail?

In my years of experience, hotel failures often stem from a few interconnected root causes. Chief among them is poor strategic and financial management, including inadequate market research, unrealistic revenue projections, and failure to control operational costs amid fluctuating economic conditions.

Equally critical is substandard service and poor guest experience. When business owners/hotel management neglect staff training, consistency, or personalisation, repeat business evaporates and negative reviews proliferate. Many also falter due to location misalignment, failure to adapt to evolving traveler preferences (such as technology integration or sustainability demands), regulatory non-compliance, or insufficient differentiation in a competitive market. Ultimately, hotels that treat hospitality as a transaction rather than a relationship, like failing to invest in their people and culture rarely survive. Success demands foresight, agility, and an unwavering guest-centric mindset.

Is the business environment conducive for the hotel and hospitality industry in Imo State to thrive?

Candidly, the current business environment in Imo State presents both opportunities and significant challenges. On the positive side, Owerri’s growing appeal as an administrative and commercial hub, coupled with increasing domestic travel, create demand for quality accommodations. Properties like ours are contributing to this momentum. However, the environment is not yet fully conducive for sustained, sector-wide thriving. The key impediments include infrastructural deficits (power, roads, and quality water supply), multiple taxation and inconsistent regulatory policies, security concerns that affect guest’s confidence, and limited tourism infrastructure or attractions to drive consistent occupancy.

These factors increase operational costs and constrain profitability, particularly for newer entrants.

How do you think this can Improve?

Improvement is achievable through deliberate, collaborative action. First, government-private sector partnerships must prioritise infrastructure upgrade, reliable power, road network, and airport enhancements to reduce costs and boost accessibility. Second, policy reforms are essential: streamlining taxation, offering targeted incentives (tax holidays, grants for training or green initiatives), and enforcing consistent regulations would create a more predictable environment. Third, security collaboration between hotels, state authorities, and communities must be strengthened through joint protocols and technology. The last one is that there must be investment in human capital and tourism promotion, including skills development programmes and marketing Imo State’s cultural heritage. All these will expand the market.

At Summer Inn Essentials, we are already contributing by maintaining world-class standards and advocating for industry unity.

With these measures, Imo State’s Hotel and Hospitality sector can transition from survival to flourishing, attracting both domestic and international visitors and driving broader economic growth.

We at Summer Inn Essentials remain committed to elevating hospitality in Owerri and welcoming guests and stakeholders alike to experience our dedication firsthand, especially in our newest Summer Business Class Suites.