Hotel is one of the commercial establishments that provide accommodations, food and other services to the public. It deals with lives and properties; therefore, it is important to provide high standard safety and security. According to the World Tourism Organization (2006), security is essential in hotels for safety of lives and properties. And also, because maintaining high standard of security and safety will create good working condition for employees it will make them feel safe during and after working hours. This paper examined the implications of poor security on hotels and direct investment in Nigeria. Secondary and archive materials were used. It was revealed that, security is important in hotel businesses; poor security can drive away new guests and old ones, prevent direct investment in hotel industry. Based on these, it was recommended that hoteliers should have safety and security policy which clearly sets out eh hotel goals and objectives.