Investing in, managing, or operating a hotel is not for the faint-hearted – And neither is constructing one. Hotels are a long-haul investment with a fast-paced environment that can force you to think on your toes and make quick decisions, all while greeting guests with a happy smile.
A competitive, fast-paced industry requires fast-paced construction and renovation.
Before you dive into constructing a hotel headfirst, make sure you ask yourself these important questions:
What brand is best for me and my location?
Conduct your own research – There are numerous hotel chains and flags out there from Marriott to Choice to Hyatt to Best Western.
Understanding your location and demographic is the first step in making the right selection.
If you’re thinking of locating in the city, you might consider a midscale, upscale, or even a boutique hotel where tourist numbers are higher and people are traveling on business. In a smaller town or rural area, an economy or midscale hotel that’s affordable and practical may be a better fit. Other hotel types to consider are extended-stay or full-service. Extended-stay hotels, such as Home2 Suites by Hilton, normally offer larger rooms with more amenities for individuals on lengthy business trips, or families needing a second place to stay while they renovate their home. Full-service hotels are among many hotel chains, offering food and beverage services in addition to the typical overnight stay – This may even include a restaurant.
Above all, whichever you choose, ensure you are comfortable with it.
Am I financially prepared?
This may be the most obvious question to ask yourself, because like all investments, you need one main ingredient: Money. Check, and check again, that your finances are in order before you begin your hotel plans because those planning and construction costs will add up. Again, you won’t make a profit immediately once the hotel is open for business, and you will inevitably run into some financial hiccups along the way to success. Sitting down with your bank, or even other parties like architects and contractors, to review your finances and create project budgets is a great preparation tool.
