How To Start a Hotel Business and Succeed?
The thought of building your dream hotel can be exciting and intimidating at the same time. In view of the stiff competition in the hospitality industry, it is natural to feel nervous about starting your own hotel. Not only is it imperative that you have an entrepreneurial mindset to tread in this industry, but you also need to have an open mind that understands that this business is based on how well you can serve your customers. To run a successful hotel business, you must have the natural urge to serve others, and this positive, caring attitude will percolate from the senior management executives down to your guests.
Steps to start a hotel business successfully:
- Build/Buy: One of the first things to decide is whether you want to build the hotel from scratch or buy one that is up for sale. Research shows that entrepreneurs are keener to build rather than buy. Hotel acquisitions may be less risky, but entrepreneurs want the control that comes with building from scratch. So, whatever your choice, you must research and analyze, if purchasing existing properties, to detect potential inefficiencies and add new technologies to further streamline operations and increase revenues.
- Analyze data: Once you have made the choice, you must evaluate data to identify the amount of capital you will require and how long it will take to convert it into profits. For this, you must identify sources for funds, whether you can get loans from friends or family, or if you will prefer borrowing from banks.
- Make a plan: To establish a successful hotel business you need a plan that will determine its launch and eventual success. Without this, you cannot meet deadlines; nor will you get investors to fund your business proposition. To make a proper business plan, you must perform research, focusing on what your hotel will offer. You have to identify the target market for which you must focus on their wants; you cannot hope to build a hotel to cater to one and all. Your marketing plan makes it possible to reach out to the right customers.
- Have a UVP: A Unique Value Proposition is necessary at this stage. To do this, you must collect information about your target guests by creating surveys to get inputs from staff of competitor hotels, conversing with staff handling guests in other hotels, and using social media channels for feedback. You need to figure out what really motivates your target audience to choose a certain kind of accommodation.
- Find a suitable location: This can make or break your business proposition. For instance, a hotel close to the city center, as in Barcelona, will attract more people, while a hotel featuring a golf course will appeal to golfers. Your job is then to see what extra services you can offer compared to what your competitor hotels in that area are already offering. Finally, you need your hotel in a location that is accessible by trains, taxis, or buses. For example, business people will look for accommodations in central locations from where it is easier to commute.
- Pricing: Once you have your target audience, you should start researching your competitor hotels for deciding on prices. Your UVP will determine how guests choose your hotel among others. So, research well to come out with a unique selling point. Find out about permits, licenses and understand zoning from the local government, and inquire about the costs involved for these.
The Manor RESTAURANT
An American Bistro Diner
in the west portal neighborhood of san francisco
321a West Portal Ave., San Francisco, CA 94127
9:00 AM – 8:00 PM Tues – FRI
7:30 AM – 8 PM Sat & sun