The hospitality industry is a critical player in the growth of the UK economy. Restaurants, bars, and hotels have seen a drastic increase since 2007 and still increasing across the UK. Running a hotel business is a good idea. However, it comes with specific challenges. You need to have a mindset of an entrepreneur to run this business, but above all, you need the desire to serve. Besides, you need skills to delight your guests, leadership qualities, determination, ability to handle multiple tasks, and hard working.
Since you cannot directly approach your guests, your warm hospitality filters down through your stuff. Reports have recently highlighted a gap between employment opportunities and the skills and experience level of applicants. Money does not assure that you will successfully manage to hit the ground running. Creating a feeling of home away from home is not that easy. You need to decide a location, chefs, housekeeping staff, activities for your guests, and the like. If you want to start a hotel business, you need to follow the following steps:
Take A Decision – Build Or Buy
Though it is the longest step, it is paramount. As a hotel owner, you must know where your hotel should be, how it should look like, and how it should feel like. Take some time to visualize your dream and follow your imagination.
Decide whether you want to buy an existing hotel or want to build a new one. Money affects this decision on an enormous scale. Of course, you will look forward to purchasing a reputed hotel, and it can cost you a small fortune. However, if you do not bother about the reputation of a hotel, it will be a cheaper option than constructing a new hotel provided you do not have to spend a lot of money in refurbishment, and it is what you saw in your imagination. You need to figure out that the hotel you are buying does not have a bad reputation. Otherwise, you will suffer losses. Your business will collapse before it gets off the ground.
Building a new hotel can also be an expensive option. Apart from the construction work, you will have to spend an excessive amount of money on advertising your hotel. You will have to work harder to promote it. Consider your budget before choosing any one of the options. In the case of cash shortfalls, you can take out loans for bad credit with no fees.
Location Of Your Hotel
Once you have decided whether to buy a hotel or construct a new hotel, the next step is to determine the location. It plays an intrinsic role to determine the success of your business. Your hotel should be situated in the center of the city. There should be significant sights to see around. The airport should be nearby. Public transport should be available quickly. A beach should also be near the hotel. Your location is the key to success. Therefore you should choose an area that could attract a large number of people.
You must know about the level of competition in the market. It will determine how likely you are going to survive. Find out the number of hotels present in your location, how much they charge, and what kind of amenities they have. Remember that you need to evaluate the quality of their services. Go to their websites and read reviews. Some hotel owners charge very reasonable prices, but they render poor quality. Such hotels likely have terrible reviews. Therefore, dropping prices is not a great idea to stand out.
To gain real experience in their hospitality, you can stay in a hotel for a couple of days. You will get an idea of the interior, amenities, and tariffs. Try to know the specialty of the hotel that engages the guests. You must remember that you are a new player; that you have to build a reputation; that you need to emerge as a brand, so try to brainstorm ideas how better service you can provide to your guests. Staying for a couple of days will allow you to understand the depth of the competition carefully.
The price you quote for your services will determine the level of profits. Rates must be competitive: if you quote higher prices, you will lose your guests to your competitors, and if you quote the lower process, you will not be able to cover the cost. The other factors that influence your prices include seasons, the quality of your services and amenities. The rule of thumb says that prices should be low enough to attract people and high enough to make profits.
Before you set a price for your particular service, you should estimate the cost of running your entire hotel. It must include salaries of your housekeeping staff, chefs, utility bills and much more. Your income must cover all those expenses. Otherwise, you will not be able to hit the ground running.
Hire The Hotel Staff
The size of your hotel staff depends on the number of amenities. For a small hotel, a few helpers are enough. However, you need different teams on different floors if your hotel is enormous. A housekeeper can cover almost 8 to 10 rooms every day. Even if you have a small hotel, you will need a front desk team for 24×7 to attend guests. You will keep rotating the shifts for everyone. You will also need to build a team who could perform a wide range of maintenance tasks such as plumbing, painting, repair work ethic, and chefs who will handle the kitchen department. You will have to know the industry trend to decide their salaries. In the beginning, you will unlikely to have enough money to cover their salary expenses, but you do not need to worry as financial help is always available.
The Bottom Line
If you want to start a hotel, you must have a complete business plan. It must include location, competition, price, marketing, amenities, and estimation of cost. Right from the day first, you cannot make profits. Try to have patience. Focus on rendering the services of the best quality, and eventually, you will find an increase in the numbers of guests.