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Think you could make it as a successful hotelier? Of all the hospitality businesses, running a hotel is, perhaps, one of the most tricky. Not only will it take a significant investment, but there is so much to think about. It’s a hugely competitive field, there are many services that you must excel at, and customer expectations are high. Read on to find out the five critical keys to success you have to get right if you want success with your new hotel venture.
A lot of Capital
It doesn’t matter whether you own a huge building already or not – you need significant funding to start a hotel business. For the vast majority of new hoteliers, this will involve raising capital through bank loans or private investment – as well as using a significant amount of your personal savings. To appeal to your bank manager or an investor, you will need a razor sharp business plan that outlines your route to success in a realistic and accurate way.
creditA Great Location
The location is, perhaps, a little less critical for hoteliers than it was a decade or so ago. But make no mistake about it – location is still incredibly important. Whether it is excellent views or easy access to travel routes, the location of your hotel could make or break your business idea. It’s also important to be wary of the competition in your locale. If there are too many other hotels in the area offering the same things as you, it will be hard to make an impact.
Consider Valet Services
The location of your hotel can greatly affect parking as well. Valet services can be implemented everywhere, especially places with inclement weather. Valet should be highly considered if your hotel will be located where parking will be difficult. You don’t want to lose customers because the hotel a few blocks over has valet and you don’t. Hospitality parking services ensure that your guests are greeted quickly and with a smile. Valet can also assist with your customers’ luggage before it is turned over to hotel porter.
Exceptional Value
It doesn’t matter whether you are planning a luxury hotel or budget accommodation for business travelers, all of your guests will be looking for one thing: great value. Because of this, you will need to have a keen awareness of the audience you are trying to attract, right from the very start. It will help you work out what you need to determine everything, from the quality of hotel furniture you buy to the sheets used for bedding.
creditAn Excellent Management Team
If you are a small hotel, you might be able to manage most tasks yourself. But the chances are, you will soon start to struggle. It is vital to build a strong, experienced management team that you can rely on for the most important areas of running your hotel. There will be a need for management in the kitchen, for domestic services, and also maintenance – at the very least. Bigger hotels may also need a leader to run reception and meet and greet duties. Finally, don’t forget about managing the core business tasks, such as finances and marketing – which we will take a look at now.
A Robust Marketing Plan
Your hotel will live and die by its marketing efforts. Without marketing, your hotel will be invisible, lack focus, and you will struggle to find guests. Consider your target audience and speak to them in a language they relate to. Encourage them to write online reviews on their experience. Try to encourage as much repeat custom as possible – offer loyal guests special deals and discounts if they come back.
Hope this has helped you understand some of the complexities of setting up and running a new hotel. Good luck!
