How to Start a Hotel Business
Starting a hotel can always be a profitable business, particularly in India, a preferred tourist destination in the world. The growing economy of the country has also made it a favored destination for the business community. All this has made hospitality industry a very profitable sector in the country. Setting up a hotel guarantees you a great and successful future. However to start and run a hotel one needs proper planning.
How to Write a Hotel Business Plan?
A hotel business plan will help you operate your business in a very smooth and efficient manner. It serves as a roadway to your success. You business plan must include every aspect of the hotel business. Things which must be part of you hotel business plan include:
- Who will be your guests? Will you target business people or holidaymakers or a broad cross-section of guests?
- Where will the location of the hotel be? To tap tourists you need to have a seaside location or hills.
- How big will the hotel be? Your plan must also include facilities you will offer to guests, the number of staff required, and provision for staff accommodation
What Services will you Offer if you want to Start a Hotel Business?
- Will you have a bar?
- Will you offer restaurant meals and for this will you employ a chef?
- Will your restaurant and bar be open to non-residents?
- What will the bedroom facilities in hotel be? Will you have tea and coffee making facilities, TV, AC, mini-bars, hairdryers, WiFi Hotspot access etc?
- What all hotel facilities will you offer, such as sports room, child care facility, TV lounge, gymnasium etc
- Will you have a conference room, a discotheque or a function room?
- Will you offer an online booking service
- What policy will you have to counter wastage, theft and other stock losses –
Investment you Need to Start a Hotel Business
It is difficult to make a beginning without external investment.
The best place to go for finances is a bank. All banks will want to have a thorough look at your hotel plan before they sanction money for it. So, always keep a realistic and feasible business plan ready. For your financial assistance you can also look forward to avail grants and advice from a variety of bodies. You can opt for equity, capital or debt finance.
Common Mistakes you Should Avoid Before you Start a Hotel Business
You need to avoid two common mistakes when you set out to start new hotel business:
- Failing to Seek Professional Help
It is only an experienced professional aware of local government’s ins and outs can help you set up a hotel properly. They will help you in devising plans and in procuring licenses and permits on your behalf.
- Getting the Insurance Wrong
Insurance can buffer you from all types of unforeseen calamities which usually take toll on human lives. You need to make sure you insure the hotel itself from fire and thefts. Apart from property insurance, you will need workers compensation insurance and liability insurance for customer. Search for the best available policy.
- Purchasing a Hotel that is up for Sale
Starting your hotel business with a hotel that is up for sale can ease matters for you. You can refurnish it or just carry on with the business. However you need to take factors into account before buying one. This includes
- Enquire about the reasons for the sell off.
- Make a good estimate of how much you need to spend to make the hotel up to your standards.
- Your chosen property should have growth prospects. A dead property will be a wrong investment
If you have the dream to make it big, the hotel industry is where you need to invest in.