It takes a lot to start a business – that goes without saying, but starting your hotel? It could be a heck of a lot harder.
There is so much to consider with opening a hotel and the first is money, you’re going to need a fair amount to get started. You need to prepare yourself well, and you’ll need to do a huge amount of research and ensure your business plan is developed well – this will help you obtain the capital you need to start off. If you include a summary of what your company can offer, compose a comprehensive analysis of the market and your competition, identify your long term goals and appeal to investors your business plan will be sound.
A good idea would be to visit competing hotels to get an idea of what they offer and how you can differentiate your hotel from their offerings whether it be your amenities or services – put it in your plan.
It is so important to decide early on on exactly what type of hotel you want to run and the accommodation that you will offer. Will it be an affordable budget number or will you be boutique and upscale? What about the amenities on offer? Will you provide a swimming spa and a gymnasium? What about breakfasts and beauty spas? Of course, your location will need to be considered – a luxury hotel next to a roaring highway might not be the best option, but it is up to you – but competition might be strong in other areas.
A hotel is a rather unique proposition as you’ll need plenty of licenses in order to operate your hotel. Depending on your location you’ll need a permit to operate, licenses for selling food, licenses for selling alcohol, a license for the manager of the hotel and you may even need licenses for every amenity you offer from a swimming pool to a health spa. Insurance is also key.
Thankfully, like most businesses, it is technically easier than ever to run a hotel and while there is so much hard work to do there are plenty of hospitality solutions providers and software developers out there who can make your life a great deal easier. You still need to keep it clean while you manage though!
It might be a good idea to purchase an existing hotel before remodeling and refurbishing it. This gives you a good location and a building ready made for your business. Make sure that all the utilities of the building function – the electricity and plumbing mainly. While you might be a dab hand at design, you should speak to an interior design firm to decorate your site on a large scale.
Many hotels don’t make a great deal of money from the get-go – so promote your business via travel websites and social media to get as much attention, and money, as possible. It’s a hard slog, but with a determined mindset you can achieve it and run the hotel that you have been dreaming of!