So, what does it take to break into the hotel industry? Well, to start with, money, and quite a lot of it. But there are many other factors that need to be considered by anyone considering getting into the challenging, yet potentially very lucrative world of hotels. Here are our top 3 considerations that need to be explored before moving forward with opening a hotel.
So anyone looking to open their hotel should have a basic list of requirements that they should be able to go through and decide whether they are up to the task in hand. Firstly, as we mentioned above you are going to need either substantial capital, or at least access to capital and to know that funding will not be a problem.
You should also be a person with a least a minimum level of hotel experience. It will be incredibly difficult for someone with no experience in hotels to know all the ins and outs of what is expected and how to go about those essential hotel elements. So anyone with no experience is certainly advised to go out and get some experience under their belt first.
A realistic and sensible attitude is also a plus. Going in with a ‘get rich quick’ attitude is not going to fare well when you you have to really tighten those purse strings in the first couple of years in order to pay back debt and start to break even. You will also need to consider how much of a ‘people’s person’ you are and how well suited you are to being around people and offering great customer service. This can be challenging to even the most patient and polite customer service representative so this should be a bit consideration for anyone thinking of this as a new business venture.
Renovation & Maintenance Requirements
You will also need to consider whether you want to take an existing hotel or whether you want to renovate a building so that it is suitable for being a hotel. These two choices offer wildly different projects logistically and financially. An existing hotel will likely have all the basic equipment and essential hotel set up there ready to go. This type of project is more about updating and maintaining areas from generator servicing to plumbing servicing, new fittings in order to modernise and basic cosmetic updates such as paintwork and new furniture. A complete renovation job will obviously incur a lot more work and will cost a lot more money. So these are certainly things to be thinking about when you are looking at the type of property you are interested in for your hotel project.
Management and Running Costs
A detailed financial forecast is vital and will need to take into account every cost incurred whilst running your hotel. For example, have you budgeted for the cost of insurance? If not, Quote Goat can help you compare quotes for hotel insurance.
Type Of Hotel & Visions
You will also need to figure out what kind of hotel you fancy starting up and the type of business you want to create. As there is such a diversity of hotels these days from luxury boutique, to hotel franchises, to budget hotels. Are you going to offer a full service or are thinking more along the Bed and Breakfast route? Do you want to offer full scale service or do you want to keep your hotel business offerings simple and practical.
Thinking through these types of considerations will help you to solidify the type of hotel you want to create, the kind of services that you’d like to offer and therefore the type of people that you’d like to market your new hotel to.