Sharing the Best Advice with First Time Hotel Owners

After a heavy career working 9-5 (often longer), your thoughts may turn to alternative forms of employment that are more enjoyable and can fit more easily into your lifestyle. Perhaps you are thinking of retiring from work, and have some money saved to invest in your future. Maybe you want to relocate somewhere by the sea – a place where you can begin the next stage of your life together with your loved one. Maybe you want to start a new business venture and are prepared to commit to it 100%, in order to make it succeed.

If this sounds like you, investing in a hotel could be a good option. Owning a hotel often allows you to live in a beautiful location – funded by other holidaymakers and tourists. It allows you to spend your life dedicated to your home, not having to stick to routine hours. Owning a hotel in a popular spot can be an incredibly lucrative financial choice, provided it is done properly.

Fenhouse was set up by current and previous hoteliers to help first time hotel owners truly make a success out of their business. Our team of consultants put together the below list of factors to consider if you are planning to go into the hotel management sector:

Do your research

Find out how much competition you are likely to have if you buy a hotel. Visit the location that you are buying the hotel in, and see how much they charge. What and who will you be up against? Doing some thorough research puts you in control. You can start to identify the types of service that other competitors offer, and begin to plan how you can offer something unique. This will help you stand out from competitors – encouraging future customers to choose you ahead of the competition.


Financial management

One of the main reasons for buying a hotel is to make a profit. Without this, your hotel will fail and the whole project will have been meaningless. Plan how you expect to see a return on your investment, and when you expect this to happen. Will there be peak times of the year where sales will increase? Will you have to lay staff off in the quieter months? Plan for each eventuality and budget accordingly.


Advice for Hotel Owners

If you have made the decision to become a hotel owner, you are set to embark on one of the most interesting and exciting career paths that there are! No two days are the same, and you are guaranteed to meet some amazing people along your journey.

Before you set off, however, one huge factor needs to be considered: how to get your hotel up and going efficiently.

Build a team

Running a hotel is stressful and hectic at the best of times. Consider bringing on board equity partners who will not only invest in your business, but who are likely to bring extensive business experience. Then build a day-to-day management team who you can trust to deliver your vision! Don’t forget to build partnerships with other businesses in the hospitality industry. Outsourcing certain services such as transportation can save you time and money. Read more at A Man with a Van London.

Get suppliers

We encourage you to start building a network of contacts and suppliers as soon as possible. With so many potential businesses interested in supplying hotels, it is important to find the right quality standard for you and to ensure that prices are competitive. Here at Fenhouse, we have worked with a small selection of suppliers for many years and would strongly recommend them to first time hotel owners, especially in the area surrounding the capital. We also specialise in advising on supply chains for hotels that also operate a spa. In the past, we have connected hotel owners to suppliers including manicure stations and even a high calibre laser hair removal machine. To learn more about the kind of suppliers we work with, click here.

Get help with hotel finance options

Perhaps this is a less likely choice for a hotel, but crowdfunding could be another option. Perhaps a local community do not want to see the hotel trade go away from their area and are willing to help fund your investment? Crowdfunding is risky in that if it all goes wrong, there may be hostility towards you. That said, if successful, investors will be happy that they added money to your venture.

Research

Find out how much competition you are likely to have if you buy a hotel. Visit the location that you are buying the hotel in, and see how much they charge.



Partnerships

Going into partnership with someone can be exciting! You are able to share the joy and the profits! Some partners will be happy to give you control, others will want to have some say in the running, so you need to work out the terms prior to going into business together.












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