The hotel business has recently become more and more in demand. With the development of the tourism industry, the demand for hotels is growing rapidly, especially in large cities. The organization of this business is very expensive. Although it largely depends on the format of the institution and the pricing policy of the region in which it is held. The main question for novice entrepreneurs: where to start a hotel business and how to succeed in this business?
Business Plan to Start a Hotel
A successful business always starts with a plan. The hotel’s business plan should include all major steps in opening the future enterprise. First and foremost, developing a business plan requires analyzing the market, identifying customer needs, competing pricing policies, and gaining a competitive edge. Marketing Specialists can create Marketing Specialists for a fee.
In addition, the hotel’s business plan includes the project itself, i.e. a description of its goals and objectives, products, and services. Here it is necessary to determine the format of the institution, target audience, location, staff, and equipment.
In conclusion, you need to make a financial plan calculation and specify the amount of start-up capital. In some cases, personal funds are not enough to set up a business, so you need to carefully consider your funding sources.
In fact, there are no clear requirements for a business plan, and entrepreneurs make it exclusively for themselves. You must continue to act according to your intended purpose. So where will you start your hotel business? Of course, there are plans and additional tips and recommendations for beginners.
If we talk about where to start with a hotel, it would be wiser to start a small business. This will help evaluate your competence. If the hotel is in demand, the investment is made in a short time and you can think about expanding and developing your business.
Hotel format to choose from:
- Hostels with 7 or 10 rooms.
- Up to 25 hotels.
- A small hotel with up to 50 rooms.
It also determines the services and pricing policy of future hotels. In many ways, you have to act on customer demand. In some cities, most guests (e.g. students) prefer to open an economy-class hotel. In resort towns, comfortable spacious rooms with an average cost are required. Big cities and regional centers need business-class hotels.
Location Location Location
A key point in the hotel business is that it directly depends on the number of guests. Choosing a room depends on many factors. For example, in large cities and regional centers, it is better to open hostels or hotels near the center or historical landmarks. In-resort towns, housing near recreation areas is more expensive and in demand. By the way, tourism and hotel business are interconnected concepts. Getting a hotel in that town, where there are always a lot of guests, is profitable and economically feasible, but the format doesn’t matter.
It is immediately worth noting that if you take a room, renting it is unprofitable. You can still think about leasing the premises as a subsequent purchase in the contract. But the most ideal option would be to build a building from scratch according to an individual project. However, this is a long process that will take more than a year. Alternatively, you can purchase a finished building with an area of at least 300 square meters. m, carry out the reconstruction.
All hotel businesses, regardless of price and location, draw attention primarily to the design of the rooms and the building itself. If a hotel caters to guests with a limited budget, the rooms may be less functional and comfortable, but the furnishings and furnishings should be new.
Style on the inside doesn’t really matter. The main thing is that all home decorations and furnishings harmoniously fit together and create a single composition. The most popular styles for hotel rooms are classic, minimalist, and neoclassical. Similarly, furniture and appliances are new and of high quality. In general, the room must comply with sanitary and fire standards.
The most important and important thing in a hotel is cleanliness and safety. Each organizer must provide guests with daily cleaning, clean linens, and towels. And it does not depend on lodging fees. In more expensive hotels, breakfast, Internet, cable TV, or other services are provided. The hotel must have a laundry room or have an agreement on the provision of services by third parties.
Less important is that the essential order requires the hotel industry. This is your safety. It is necessary to conclude a contract with a security company and install an alarm firing system, and an evacuation plan. It is also desirable to have a convenient parking space.
Hotel Staff Plays a Vital Role
Specialists who can rationally use materials, information, and labor resources entrusted to the hotel management. If you are not experienced in this area, it is better to hire an experienced manager and several managers.
In many ways, the number of full-time employees is small, for example, if a hotel is small, a manager may take care of reservations and a maid may have a part-time job in the laundromat.
If the basic issue is solved calculate the cost of organizing an enterprise. Where you need to start your hotel business is the distribution of budgets for corporate organizations. Financial calculations should be:
- 50% of the total budget is spent on the construction or purchase of buildings.
- 25% – reconstruction and redevelopment of buildings;
- 15% – repairs, purchases of furniture and equipment
- 10% – other expenses and staff salaries
When planning your hotel business, you should consider that it will pay off only after 5-12 years. And revenue depends on many factors such as competition and seasonality.
If the hotel business is a fairly expensive event, recently there are only more hotels. It suggests that being the owner of a hotel is profitable and promising. However, success depends on the level of guest service and the price of the service. By the way, do not forget about advertising campaigns and other events that attract an audience.