@kruss ltd.I have personally designed and managed construction for several hotels and after talking to the owners, i have seen the crazy profits live live.
The cost of construction of every building everywhere in the world can be derived as an average cost per m2. In this case, i have used kes 40,000 per m2. This is quite high. See what @pennystocker is able to do with half the cost. Nakuru construction cost is also much lower than Nairobi.
Ratio of empty landscaped land has no significant impact to cost of construction or the return on investment.
2. In Nakuru, Merica hotel usually has nearly 100% tenancy rates and has close to 100 rooms. Its not rare to come to Nakuru especially on Fridays and find all hotels of all classes completely filled up. It has happened to me in Nakuru and Meru.A mixture of offices and hotels can be included to that the hotel can have 150 rooms and the rest become offices.
Hotels are only risky if they are not on front row facing tarmac or are far away from town. Here we are talking of opposite State House, Nakuru, the most prime land in Naks.
Merica charges 13k per night
http://www.sleepout.co.k...kuru-p/merica_hotel.htm
Here with 3 years return on investment, i have calculated using 2k per night. This location is far much better than Merica in terms of ambience, car park, security and neighbourhood.
The profits from food and beverages can go to offset the cost of paying employees, furniture, maintenance, services etc.
As Iron Sharpens Iron, So one Man Sharpens Another.