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 new, 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 holiday-makers 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. Here are some of the things to consider if you are planning to go into the hotel management sector.
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.
A positive experience for a customer means that they will write a good review, go home and tell their friends, and re-visit your hotel in the future. High levels of customer service go a long way to producing this experience. You could, perhaps, enrol onto a customer service course before you buy your hotel? Hire members of staff who have training in customer service already. Above all, aim to exceed customer expectations and go that extra mile for your customers, to get them talking for all the right reasons.
Your hotel will need to run smoothly and efficiently to become successful. You want to be seen as an organised, tidy, busy hotel – accommodating everybody’s needs. Hire the right people and allocate them to the right role to make this as easy for you as possible, and don’t be afraid to delegate.
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.
When marketing your hotel, the most important thing to think about is your clientele. Who are they? Will they be surfers or retired people coming for a peaceful holiday? It is difficult to cater for absolutely everybody, so identify your market and base all of your business management around them.
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.
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.