If you have ever considered running a hotel of your own, our handy guide below may give you some ideas as to how to get into the industry. Property sale experts Ready Steady Sell mainly have experience with customers looking to sell their houses fast – however from time to time, they have had some dealings with customers who are trying to sell bed and breakfasts and hotels.
They have taken the time to give us their top 5 reasons sellers call up looking to sell their hotel businesses quickly – so that you can avoid making the same mistakes that they have in the past.
A number of customers didn’t realise the amount of maintenance that would be required to run a hotel when they first got into the business. Maintenance is an ongoing procedure, and needs to be kept on top of. Some buildings require more maintenance than others – for example a period property in the country is going to require far more maintenance than a new build hotel in a city centre.
Running Out Of Funds
It’s very easy to underestimate the number of funds needed to run a hotel. We have already looked at maintenance however, you also need to consider other general running costs and regular payments you will need to be making. If you don’t have the funds to cashflow this – it is probably not an industry you want to get involved in.
Hotel stays can be very seasonal for some areas. In the middle of winter nobody wants to visit seaside towns. City centres also have their peak times and down times. You need to do your research thoroughly before taking on any investment hotel that you are considering running.
Managing staff can be a headache especially if you have never done it before. Jumping straight into running a hotel with no experience can be a disaster waiting to happen. It may be an idea if you are serious about getting into Hotels to start off small. Maybe a B&B would suit you better to begin with until you find your feet in the hoteling world.
Hotels have stiff competition. With the likes of Trip Advisor, it is even tougher these days to stay on top of your game as everyone is watching you. Customers can instantly destroy your business with a few negative reviews. There is also a possibility of competitors hijacking your reviews with negative reviews!
In conclusion, hoteling isn’t for everyone – and it certainly isn’t for the faint hearted. Do your research, know the area, learn about your customers and you should be on the right track to success.