Cost of building a 3-star hotel in Nigeria

Cost of Building a 3-Star Hotel in Nigeria for 2025: Budget, Permits & Timeline

Building a 3-star hotel in Nigeria for 2025 requires thorough planning and a clear understanding of the overall project costs, including construction, permits, and timelines. With a proposed budget of ₦300M to ₦500M, it’s crucial to estimate the budget breakdown for different stages of the hotel’s construction, ensuring the project aligns with both design standards and local regulations.

What Type of Hotel is a 3-Star Hotel?

A 3-star hotel is considered mid-range, offering moderate luxury and essential services at a competitive price. These hotels typically feature comfortable rooms, basic amenities like a restaurant, Wi-Fi, and conference rooms. While it may not have the extensive offerings of higher-star hotels, a 3-star hotel provides a balance of comfort, quality, and affordability, catering to both business and leisure travelers.

Budget for a 3-Star Hotel in Nigeria

  • Foundation & Structure: ₦50M–₦80M
    This phase includes excavation, concrete work, and reinforcement to ensure the hotel has a solid base.
  • Superstructure: ₦100M–₦150M
    This phase covers the walls, columns, floors, and roofing to create the main building structure.
  • Interior Finishing: ₦60M–₦100M
    The interior finishing includes flooring, wall finishes, painting, and ceiling installation for rooms and common areas.
  • Mechanical Systems: ₦40M–₦60M
    This covers plumbing, electrical systems, HVAC, and essential systems to ensure the hotel is comfortable and functional.
  • Furnishing & Fixtures: ₦30M–₦50M
    This includes furnishing guest rooms and public areas with essential items like beds, wardrobes, desks, and lighting.
  • Landscaping & Exterior: ₦10M–₦20M
    Exterior work includes landscaping, parking areas, signage, and the hotel’s entrance.
  • Permits & Professional Fees: ₦10M–₦20M
    This budget covers the costs of obtaining architectural designs, permits, and professional consultations.

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Construction Timeline for a 3-Star Hotel in Nigeria

A 3-star hotel in Nigeria typically takes 24–36 months to complete, depending on the complexity and size of the project. The timeline is broken down into the following stages:

  1. Pre-Construction Planning:
    This phase involves feasibility studies, finalizing architectural designs, and securing necessary permits. It can take 2–3 months to complete.
  2. Foundation and Structure:
    This phase generally takes 6–9 months and involves excavation, concrete work, and reinforcement.
  3. Superstructure Construction:
    During this phase, the framework for the hotel is built, including the installation of walls, floors, and roofing, taking 8–12 months.
  4. Mechanical & Electrical Installations:
    Installation of plumbing, electrical systems, and HVAC typically takes 4–6 months to ensure everything is functional.
  5. Interior and Exterior Finishing:
    The final stages involve applying paint, installing ceilings, finishing walls, landscaping, and furnishing the hotel. This phase can take 6–9 months.

Required Permits for Hotel Construction in Nigeria

When building a 3-star hotel in Nigeria, obtaining the necessary permits is crucial for ensuring compliance with local building regulations. These are the key permits you’ll need:

  • Building Plan Approval:
    This approval from the State Urban and Regional Planning Authority ensures your building complies with zoning and safety laws.
  • Environmental Impact Assessment (EIA):
    This assessment, required by the Federal Ministry of Environment, ensures that the hotel construction will not negatively impact the surrounding environment.
  • Fire Safety Certificate:
    Obtained from the State Fire Service, this certificate ensures the hotel design complies with fire safety standards, such as emergency exits and fire alarms.
  • Business Premises Permit:
    This permit from the local government allows the hotel to operate legally as a commercial establishment.
  • Hotel Licensing:
    This license is issued by the State Ministry of Tourism, ensuring the hotel adheres to hospitality standards.

Total permit costs can range from ₦10M to ₦20M, depending on location and the complexity of the application process.

Tips for Staying Within Budget or Reducing Construction Costs

Building a 3-star hotel involves significant investment, but there are ways to stay within budget without compromising quality:

  1. Prioritize Essential Features:
    Focus on the most crucial aspects of the hotel, such as comfortable rooms and core amenities. Avoid overdesigning or adding luxury features unless necessary.
  2. Source Local Materials:
    Opting for locally sourced materials can reduce the cost of construction by cutting down on shipping fees and import duties.
  3. Hire Reputable Contractors:
    Experienced contractors help to minimize costly delays and mistakes, keeping the project on track.
  4. Negotiate Supplier Contracts:
    Get competitive quotes from multiple suppliers to ensure you get the best deals on materials and services.
  5. Contingency Planning:
    Set aside 10-15% of the total budget for unexpected costs or delays.

Hire JECCL for Your Hotel Construction in Nigeria

At JECCL, we specialize in delivering high-quality construction services for hotels across Nigeria. Whether you’re building a 3-star hotel or a different type of commercial property, our team of experts will guide you through every stage of the process, from design to completion. Contact us today for a consultation and to get started on your hotel construction project!


FAQs About Building a 3-star Hotel in Nigeria

How long does it take to build a 3-star hotel in Nigeria?

The typical construction time for a 3-star hotel is between 24 to 36 months. This includes pre-construction planning, site preparation, foundation work, building the structure, installing systems, and finishing the hotel’s interior and exterior.

What are the total construction costs for a 3-star hotel?

The estimated total cost of building a 3-star hotel in Nigeria ranges from ₦300M to ₦500M, depending on factors like location, design complexity, and material choices.

How do I reduce costs when building a 3-star hotel?

To reduce costs, focus on essential features, hire experienced contractors, source local materials, and negotiate with suppliers. Additionally, it’s wise to set aside contingency funds for unforeseen expenses.

Do I need a special permit to build a hotel?

Yes, you’ll need permits such as Building Plan Approval, Environmental Impact Assessment (EIA), Fire Safety Certificate, Business Premises Permit, and Hotel Licensing to comply with local regulations.

What type of hotel is a 3-star hotel?

A 3-star hotel provides moderate luxury with essential services such as comfortable rooms, a restaurant, conference facilities, and other key amenities. It caters to both business and leisure travelers.

Is There a Minimum Number of Rooms for a Hotel to Be Considered 3-Star?

There is no strict minimum number of rooms required for a hotel to be considered a 3-star establishment. The star rating system for hotels is generally based on the quality of facilities, services, and amenities rather than the size of the hotel or the number of rooms. However, a 3-star hotel typically offers a moderate level of comfort and amenities, such as:

  • Basic room furnishings (comfortable beds, private bathrooms, etc.)
  • On-site dining (like a restaurant or café)
  • Air conditioning/heating
  • 24-hour reception
  • Wi-Fi availability
  • Basic room amenities (TV, telephone, toiletries, etc.)

The number of rooms in a hotel can vary widely. A hotel with only 10 rooms could be classified as a 3-star hotel if it provides the required services and meets the other quality standards set by the local or international rating system. The classification depends more on the services and facilities provided rather than the size of the hotel.

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