A tip-off led police to the macabre discovery in Anambra, Nigeria, with 11 people being arrested and AK-47 guns and other weapons being seized.
Human flesh was apparently being sold as an expensive treat at the restaurant, with authorities saying that roasted human head was even on the menu.
"I went to the hotel early this year, after eating, I was told that a lump of meat was being sold at N700, I was surprised," a pastor who had visited the eatery said.
"So I did not know it was human meat that I ate at such expensive price.
"What is this country turning into? Can you imagine people selling human flesh as meat," he added. "Seriously I’m beginning to fear people in this part of the world. "
Another local added to the Osun Defender newspaper: "I always noticed funny movements in and out of the hotel; dirty people with dirty characters always come into the hotel.
"So, I was not surprised when the police made this discovery in the early hours of yesterday."
The tabloid reported that two army caps, 40 rounds of live ammunition and 'so many cell phones' were also discovered by authorities.