The hotel business has recently become more and more in-demand. With the development of tourism, the demand for hotels is growing rapidly, especially in large cities. The organization of this business is quite costly. However, this fact largely depends on the format of the establishment itself, as well as the pricing policy of the region, where it will be opened. The main questions for a beginning entrepreneur are ‘how to start a hotel business and how to make it successful’? So, check out what questions usually arise when planning to start a hotel business…
Business Plan
A successful case always begins with planning. The business plan of the hotel should contain all the main stages of the opening of the future enterprise. First of all, when planning any business, you should perform market analysis, identify customer demand, competitor pricing and competitiveness. In order to make marketing analysis, you can hire a specialist marketer.
Of course, the business plan of the hotel should contain the description of the project – its purposes and tasks, products and services. It’s necessary to determine the format of the establishment, the target audience, location, personnel and equipment. In the end, you need to draw up a financial plan, make calculations, and indicate the amount of starting capital. In some cases, personal funds are not enough to open an enterprise, so you need to think carefully about the sources of financing. In fact, there are no clear requirements for the business plan, and the entrepreneur makes it exclusively for himself. This is done in order to continue to act in accordance with the intended goals.
Hotel Format
If speaking about how to start a hotel business, it’s wiser to start with a small hotel format. This will help you to assess your own capabilities. In case the hotel will be in demand, then investments will pay off in a short time, and you can think about expanding and developing the business.
What hotel format can you choose:
- Hostel for 7-10 rooms;
- Guesthouse up to 25 rooms;
- Small hotel up to 50 rooms.
In addition, it’s necessary to determine the services and pricing policy of the future hotel. In many ways, you need to act on the basis of customer demand. For example, in some cities most of the guests are students, and in this case it’s more expedient to open an economy-class hotel. In the resort cities comfortable rooms at an average cost will be in demand. In large cities and regional centers, the most popular options are business-class hotels.
Services
The first and most important thing for the hotel is cleanliness and safety. Each organizer must provide guests with daily cleaning, clean bed linen and towels. And it doesn’t depend on the price of accommodation. In more expensive hotels, guests are usually offered breakfast, internet, cable TV or other services. On the territory of the hotel there must be a laundry or an agreement on the provision of services of a third-party organization. No less important thing, which necessarily should be provided in the hotel, is the safety of the guests. You need to conclude an agreement with a security company, install an alarm fire-fighting system, and create an evacuation plan. It’s also desirable to have a convenient parking and car rental service. Remember, the more services you offer, the more demand your hotel will have.
(photo by minda5676)
Location of the Hotel
This is the key point of the hotel business, because the number of guests directly depends on it. You should choose the location depending on many factors. For example, in large cities and regional centers, it’s more expedient to open a hotel in the city center or near historical sights. In resort towns, housing is more expensive and more in demand near a recreation area. By the way, tourism and hotel business are two interconnected concepts. In the locality where there is always a large stream of guests, hotels are very profitable and cost-effective.
Hotel Design
Each enterprise of the hotel business, regardless of price and location, attracts guests’ attention primarily with the design of the rooms and the building itself. If the hotel is aimed at guests with a limited budget, then perhaps the rooms will be less functional and comfortable, but furnishing and interior items must be definitely new. Style of the interior doesn’t matter. The most important thing is that all interior items and furniture were harmoniously combined together to create a single composition. Among popular styles for hotel rooms are classic, minimalism, and neoclassic. Room equipment should be of high quality. Of course, the suites must comply with sanitary and fire regulations.
Personnel
Management of the hotel business should be entrusted to a professional who can rationally use material, information and labor resources. If there is no experience in this area, it’s better to hire an experienced manager and several administrators. In many respects, the number of full-time employees depends on the scale of the hotel: if it’s small, then the administrator can perform bookings and the maid can work part-time in the laundry.
(photo by JSH Hotels & Resorts)
Despite the fact that the hotel business is quite a costly event, recently the number of hotels is increasing. This fact shows that it’s profitably to be the owner of the hotel. However, the final success depends on the level of customer service and prices for accommodation. By the way, don’t forget about the advertising campaign and other events to attract the audience.