What Does it Take to Open a Hotel?

Life experience is equivalent to education in certain circumstances, and business is no stranger to this rule. Some of the most successful business people have fallen into a black hole of turmoil before they made their mark, including Bill Gates who is notorious for being one of the most successful dropouts in history. But, just because Bill Gates and Steve Jobs didn’t finish school doesn’t mean that they didn’t work hard to achieve their success. It is important to learn about the hospitality business before you can achieve success. Knowing important trends, business models, and even knowing where to strategically place your hotel to attract the most clients is key. It wouldn’t hurt to take a crash course in hospitality and tourism or even a night school business class before heading into your entrepreneurship.

Types of hotels

Knowing what type of hotel you’d like to open is important to think about before you raise the capital to start your endeavor. The location of a motel that travellers will use overnight will be considerable less expensive to maintain and even fund than a fancy beach resort. There are different types of hotel accommodations such as boutique hotels that cater to trendy consumers, motels that cater to guests who plan on staying for short periods of time, resort like hotels with full service restaurants and spas, and hotels that are off major highways to accommodate travelers. A lot of hotel owners are gearing their hotels to accomodate large gatherings such as conferences and weddings during off peak seasons. This is only possible with hotels that have large dining halls and a full time staff who is knowledgeable in the catering business. Begin researching hotel types and available locations before making any financial decisions.

Finances

When you dream about owning a hotel, do you dream about living in a large suite in the hotel so you can roll out of bed and take the elevator to work? This is actually possible by obtaining management rights. Such an accommodation can be worked out before you’ve even invested in the property. After you’ve done your research on the type of hotel you would like to obtain, the next subject to research is financial options. Decisions like whether or not you’d like to franchise your venture can make a large impact on your investment due to the fees involved. It is always advisable to make investment decisions after you’ve spoken to a experienced investment manager.  

Failure is always a possibility when it comes to entrepreneurship. The best thing you can do is arm yourself with research. Research is the key to making a decision about the location and type of hotel that is suitable for your dream entrepreneurship. Ensure that you’ve research trends so that you can entice your consumers to coming to your hotel all year round. Always stay current on hotel trends in the hotel market as well as peak seasons for tourism. Prepare yourself and your future business so that you are ready for anything and the world will be your oyster!

Adam Torkildson