Web hosting business and domain services are always profitable and hot niches because number of new websites are growing recently (you can know this using analytics tools) hence if you join into this niche you can earn more money but the problem is how you will do marketing and drive traffic to your services to get more sales.
I think this is the most important thing for all web hosting providers, who can solve these they will be successful people in their field.
It used to be profitable before it became really saturated. Now everyone has to get a unique technique of driving clients to his/her hosting site. If you succeed in getting the clients, then it can be really profitable
Yes, it can be very profitable with minimal work. If you keep the technical and client management side of things stable and good book keeping.
But it's almost an impossible business to break into. Being a web hosting used to involve having a lot of technical knowledge in many different subjects but these days becoming a web host is easy as a few clicks, This is what has caused the massive saturation in the Industry. It's 10x harder to sell now than even 5 years ago and getting worse. It's a business you have to be in for the long term 10 + years to see a decent six figure revenue stream every year.
If your not a technical Linux person then you will need a provider that will provide full personal support for you and your clients or you have a very small chance of success without employing skilled expensive people.
Most of these providers you see "springing up" shutdown after a year or so when they have not made 50k in the first year and quit. Customer service and quality needs to be your focus not making money to start with. Some times good things take time.