This study examined the effect of working capital on the profitability of listed hotels companies in Nigeria. The design adopted was ex-post-facto. All the four (4) listed hotels firms on the NSE as at 31st December, 2018 were considered as population. An unbalanced panel data obtained from the companies’ published financial statements for 19 years (2000 to 2018) were analyzed using descriptive and inferential statistics. It was discovered that working capital had a significant effect on return on asset of listed hotels companies in Nigeria. Inflation rate and exchange rate significantly controlled the relationship between working capital and return on assets of the companies. This study concluded that working capital affects profitability and that inflation and exchange rates control the effect of working capital on profitability. Managers should ensure bulk purchase of inventories that can be stored for long without being spoilt to hedge the effect of inflation and exchange rates fluctuations. Optimal credit policy should also be set to enhance effective liquid fund management which would contribute to boosting profitability.