What You Need to Know About Opening a Hotel
Are you considering opening a hotel?
Starting a hotel from the ground up takes a considerable amount of effort. But, if you’re willing to do what it takes, then you can reap significant rewards.
The hotel industry has experienced almost a decade of strong growth. And, according to Deloitte’s 2019 US Travel and Hospitality Outlook Report, it’s expected to maintain momentum in the year ahead. Also, according to researchers, the immediate future of the industry is on track for continued growth and profitability.
So, if you’re interested in breaking into the hotel business, the time is ripe. Read on to find out the steps you’ll need to take to open a hotel!
What You Need to Know About Opening a Hotel
There’s a lot to consider when opening a hotel. It’s not a decision that you should take lightly. Although, many of the hotels that have opened in recent years are now thriving.
The income potential for hotel investors is huge. But, to get the best results from your efforts, you’ll need the right ingredients. And, you’ll need to know the precise steps you should take in order to gain success.
What Does It Take to Open a Hotel?
Prior to beginning your venture into the hotel industry, there are a few things you’ll need.
First, you should have a plan. A sustainable plan will need to include (at least) the following information:
- The type of hotel you would like to start
- How many rooms there will be
- How many guests the hotel will accommodate
- The location or anticipated location of your hotel
- An architectural blueprint of the hotel itself
- Capital resources (money!)
- A thorough strategy for funding, building and operating the hotel
Of course, there’s more that goes into developing a plan for a hotel, but these are the bare ingredients that your plan needs to have.
You’ll need to include details such as whether it will be a franchise, bed & breakfast, luxury resort, or another kind of hotel. And, you’ll need to decide how it will be staffed, whether there will be on-site dining, room service, and other details.
When deciding on a commercial property, you’ll need to perform research to find out where a hotel is likely to thrive. And, you’ll have to choose whether to build or use a structure that already exists. In addition, you’ll need to check on the zoning and business license requirements for your preferred locale.
Funding Your Hotel
Eight out of ten businesses fail. And the number one reason that businesses crash is that they run out of cash.
One of the biggest considerations when opening a hotel is the capital needed to fund it.
Funding a hotel isn’t cheap, after all.
You’ll need to employ professionals every step of the way, even during the planning phase. For example, you’ll need an architect to draw up the building plans. You might also need an accountant, a website developer, and other types of service providers.
Once you open the hotel, you’ll need enough money to maintain its operation until it begins to turn enough profit to sustain itself.
Depending on the size of the operation, you could possibly take out a loan to partially fund your hotel.
Often, there are investors that provide financial backing needed to start a hotel. If this is the case in your circumstances, you will need to identify potential investors. Then, you will have to present your plan to those individuals to secure a commitment from them.
You will need to do the same to receive funding from lenders. Be sure that you gather adequate information from lending sources prior to making any decisions. There is a wide range of terms and solutions available, and it’s essential that you choose the right one for your venture.
Beyond the planning phase, there is a long list of things that you will need to do to prepare for the opening day.
You’ll need to build or renovate your hotel. You’ll also need to furnish and decorate its’ interior.
You’ll also need to hire and train your hotel staff. You should also prepare a salary and benefits schedule. And, you’ll need to decide on a uniform policy for your employees as well.
Then, you’ll have to launch a marketing campaign, create a website, and purchase and install any necessary software systems (for reservations, billing, etc).
Finally, after completing these steps, you’ll be ready to open your hotel to the public.
You’ll want to make sure that you plan for the opening day, as well. You will want it to be extra special.
You might offer added attractions or activities on this day to attract a crowd. This might include a ribbon cutting, giveaways, food or promotional items. You may even announce your opening to the local media outlets.
Start Your Venture Today!
If you’re serious about opening a hotel, there’s no better time than the present to get started building your dream. Even if you haven’t figured out all of the details just yet, you may find that once you start, the rest of the plan will fall into place.
Opening a hotel can be a challenge. But when you take the right steps and put forth the effort, you’ll find that all of your hard work will be worth it in the long run.
Why not get started on your dream today?
Contact us now to find the perfect place to start your own hotel!