The study examined the challenges facing small/medium scale hotel in Lokoja with emphasis on Saatof Hotel in Lokoja, Kogi State, Nigeria. The objectives of the study examined the challenges facing small and medium scale hotel in Nigeria. The target population of this study was Staff of Saatof Hotel Lokoja, Kogi State. A total of 20 respondents were selected. The research design adopted for this study was survey descriptive design. The data collected was analyzed using simple percentage. The study revealed that there are challenges hindering the growth of small and medium scale hotels in Nigeria. The study also revealed that there are factors that can enhance the growth of small and medium scale hotels in Nigeria. The study therefore recommend that customer service should be friendly, helpful, and efficient as this will enhance effective marketing of tourism products and customer service should be available at all times and it should be consistent across all touch points, like hotels, restaurants, and attractions.