A Company Conceived-The Hotel Landscape – Before Ghana’s independence in 1957, hospitality services were informal and community-based. Post-independence, the government invested in developing infrastructure to support administrative functions and promote regional growth, which included the establishment of approximately seventeen state-run hotels and guesthouses. By the late 1970s, the industry consisted of modest, locally-owned establishments managed by personnel with developing skills, while tourism remained an untapped potential.
Ghana’s hospitality sector experienced significant growth with the opening of the Novotel in 1976, which symbolized progress and attracted business travelers and diplomats. In the 1980s, the government designated the private sector as the engine of growth, privatizing state-owned hotels and offering incentives to investors. This initiative spurred the rise of locally-owned hotels in cities like Accra, Kumasi, and Takoradi.
In 1987, Yawa-Attah and Mr. Aanani founded Hospitality Associates, a consultancy specializing in hotel and restaurant management. With youthful vigor and professional expertise, they offered services such as hotel management, operational concept development, pre-opening support for new hotels, and solutions for distressed establishments—tailoring strategies to enhance client performance. Their work aimed to set high standards in Ghana’s hospitality industry.
Unlocking Opportunities
In the 1990s, the government’s divestiture program was in ‘full swing’, with state-owned enterprises, including hotels and guesthouses, being sold to private investors who often lacked the expertise to manage them effectively. Many of these hotels were in disrepair due to years of neglect and underinvestment. Yawa-Attah, astonished by the state of these semi-operational structures, noted:
- Cracked walls with peeling, faded paint.
- Worn-out furniture, broken fixtures, and outdated décor inside.
- Overgrown gardens and neglected landscaping that made the properties appear abandoned.
These hotels desperately needed investor support to restore their potential.
“Huge properties gone to waste,” Yawa-Attah found herself muttering under her breath, as though repeating a rehearsed chorus each time she walked through such properties. While she lamented, Mr. Aanani, with his skills in technical drawing, knowledge of hotel engineering and reading structural drawings, was busy sketching the state of the structures to discuss possible concepts, their renovations or other developments required for each. Yawa-Attah quickly adapted by mastering terminologies to describe building conditions, interpreting floor plans, and learning about hotel design concepts to produce effective reports for a variety of projects related to the state hotels.
This marked Hospitality Associates’ entry into the renovation of hotel projects and carrying out market surveys and writing business plans. One of such was handling a group of state hotel properties bought by an individual Ghanaian investor with the concept of having a collection of four or more hotels in Kumasi and Tamale respectively, bearing the same name, adhering to the same rules and standards, and controlled by the same parent company.
Many hotels faced operational challenges during this period. Yawa-Attah noted inefficient management, outdated technology and inadequate staff training and low morale resulting in unhelpful and unfriendly service.
Financial difficulties compounded the above challenges including high overhead costs, low occupancy rates, and weak revenue streams, restricted access to capital blocking opportunities for investment in upgrades, renovations, and technological advancement.
Yawa-Attah, familiar with the Uniform System of Accounts for hotels practiced in the U.S., observed that most private hotels (which Hospitality Associates was handling), lacked comprehensive and structured operational systems, which prevented them from accurately accounting for their revenues and operational costs.
Hospitality Associates initially faced no competition, but starting the business came with unexpected challenges. These included securing approval for the business name, finding shareholders with similar visions, and managing delayed payments for their services. Additionally, some potential clients, especially those in the private sector, were hesitant to collaborate with a new, locally-owned hotel company. As a result, the team had to work diligently to build their reputation and gain the trust of corporate organizations, motivating Hospitality Associates to concentrate their efforts on corporate clientele.
Subsequently, the company aimed to provide management services to new owners of privatized hotels and guesthouses, assisting them in operating efficiently. However, they often found themselves repeatedly drafting business plans for client-investors to help secure loans for their newly acquired properties.
Training opportunities quickly arose for Hospitality Associates as Ghana prepared to host the 2008 African Cup of Nations (CAN). The Minister of Tourism at the time was quoted as saying, “In between games, there should be tourism products available for tourists to explore. It would not be just about football but also about where they sleep, what they eat, and where they go.”
Tourism promoters were hyped to position Ghana as a destination of choice for visitors attending the event. Hoteliers were encouraged to prepare thoroughly to meet the demands of these visitors. Urgent calls were made for hoteliers to upgrade their facilities to meet international standards, increase their room capacity, and ensure that visitors left with positive experiences that would inspire them to return. The need for training frontline staff to provide a warm welcome to guests was frantic.
Disclaimer: This story is a work of fiction. Any resemblance to real persons, living or dead, or actual events is purely coincidental.