Content

• Steps
• Advice

Owning a small hotel is the dream of many people who love to communicate and want to have their own business. However, you cannot just open the door and expect natural success. This job requires you to research, manage and plan your finances carefully to achieve high efficiency in business. Please keep these in mind when planning to open your own hotel.

Steps

Part 1 of 4: Market research

1. 

   Decide where to open a hotel. Before you worry about finding the exact location, you will have to think broader and decide which city or town to open a hotel in. You should at least consider the tourism industry there. Since this is not a chain of hotels but just motels and hotels, you will probably serve guests on vacation and sightseeing more than business travelers. As such, you need to choose a place that many people want to visit. Search for travel websites or books to find some tourist attractions, then start looking for a good place to open a hotel.

2. 

   
   
   Decide whether to buy an existing hotel or build a new one. This is the first decision you will need to make once you have selected a city. You can either buy hotels for sale or build completely new. These two options both have advantages and disadvantages that you need to consider carefully before making a decision.
   • Buying an existing hotel is usually cheaper than building a new one, unless a major repair is required. You can also keep some employees, so the recruitment will be simpler in the future. However, if the hotel you intend to buy has a bad reputation, your profitability will suffer. It's going to be pretty hard to advertise that this hotel is currently run by the new management.
   • Building a new hotel is usually more expensive. In return, you are built to your liking, meaning you can design according to your special preferences or market needs. Remember that if you build a new hotel, you will have to actively advertise to attract guests. You also need to check to make sure it's a planned place for hotels and motels.

3. 

   
   
   Survey other hotels, motels and hostels in the region. You need to have a clear understanding of the competition you'll face and how to create your own market. There are a few things you need to learn when surveying potential competitors. This will give you ideas on how to make your hotel stand out.
   • Find out prices in other hotels. Survey hotels in the area and find out their room rates. However, keep in mind that price is not everything - if a hotel has a cheap room rate but the customer feedback is too bad, you should not try to lower the price to compete with them.
   • Read reviews of customers online. Thereby, you can know the compliments or complaints of customers who used the services of other hotels. So you can know what your customers need to satisfy this market.
   • Find out about the extra services of the hotels in the region. Do they have a restaurant? Pool? Gym? Breakfast serving?
   • Book a room at hotels around the region to truly experience their service. An overnight stay in other hotels will help you get a better look at your competitors and come up with an idea for your hotel.

4. 

   
   
   Understand your main market. This will help you deliver services to your target customers. Small motels and hotels often attract tourists, and they only stay for a few nights. If your hotel is located in the countryside or small town, you will probably find many people looking for their time away from the hustle and bustle of big cities. If so, you should decorate your hotel with things that depict the simple and peaceful life of small towns.

5. 

   Decide what extra services you offer with your hotel room. Customers often look for privacy and comfort, so you should provide services that make them feel comfortable and private. Visitors to small hotels often want to relax, so you can create a secluded place outdoors for guests to rest. Small hotels usually don't have services like restaurants or gyms, but you can still open them. However, you need to remember that each additional service has an additional cost, including construction costs and maintenance costs. You should budget carefully to avoid losing money on these investments. advertisement

Part 2 of 4: Hotel financial management

1. 

   Hire an accountant. Even if you open a hotel because it is your dream, you must still remember that it is a financial investment. Unless the hotel is too small, or you have specialized accounting training, you generally need an accountant to help manage your finances. All hotels, even small ones, have costs to consider such as staff salaries, utility costs, space rent, equipment costs and taxes. The accountant will help you track the complexities of hotel finances and ensure the security of your financial future. The US Small Business Administration recommends the following steps for finding an accountant.
   • Referrals are often the best way to find a reliable accountant. You can ask some local small business owners who their accountants are and if they are satisfied with the employee's job. You might also look out for events that showcase recruitment networks for small business owners organized by your local chamber of commerce, where you can connect with potential accountants.
   • Make an appointment with potential accountants. Most accountants accept a free meeting with a prospect to introduce themselves. Once you have gathered a list of candidates, make an appointment to discuss their experience and qualifications and determine if they are a good fit for your business.
   • Find out if they have experience working in the hospitality industry.Hospitality is a unique business that requires unique knowledge. It would be ideal if your candidate has worked in a hotel, preferably a private hotel. This will ensure that the person is experienced in the situations you may encounter.
   • Determine the credibility of the candidate. In addition to the candidate's experience, you also need a staff member who can work for a long time. If the person is late, does not call back or works sloppily, even with a lot of experience, he is not your good partner. Remember that you are trying to build a good relationship with an associate that can help you grow your business.

2. 

   Business planning. When opening a hotel, you usually need to get capital from the bank or mobilize private investors. Both places want to look at your business plan to decide if it's worth the investment. In addition, a good business plan can also help you in setting your goals and getting the overall picture of how to make your business successful. The hotel business plan should contain at least the following points.
   • The services that the hotel provides. You need to point out how those services will help your hotel stand out from other hotels. Is your room rental better? Do you offer more personal services? Investors will want to know what makes your hotel unique.
   • Potential customers. Interpret your audience, and why they chose your hotel over other hotels.
   • The possibility of income in the future. Investors will want to see your hotel profitable. With the help of your accountant, you need to figure out how much your annual income might be. Also, you need to estimate how long it will take before profitability and hotel position begin in the years to come.
   • Comprehensive cost analysis table. With the purchase or rental of premises, repairs and furnishings, it will be expensive to start a hotel business. You need to be as precise as possible about your total cost estimate when you apply for a loan. You should also include a detailed estimate of your daily operating costs. It may take months for your hotel to start attracting enough guests to cover the costs, so you need money to be able to operate during that time.

3. 

   Find start-up capital. Once you've made a business plan, talk to potential investors. With a good plan, you will be able to demonstrate that your hotel is profitable, thereby convincing investors to donate the money you need. You have two options for raising funds, usually a combination of the two.
   • Bank. You can borrow money from the bank for a few months or a few years, depending on the type of loan. This can help cover hotel opening and operating costs for the first few months.
   • Individual investors. They may be friends, family or other business owners interested in investing. Make sure to make it clear to the investors that they either lend you the capital and then you will pay it back with interest, or that they are actually investing in your business. You can make an agreement outlining the terms and bring it notarized to prevent problems arising later.

4. 

   Price setting. When you open a hotel, the price of the service determines the profit margin. Room rental rates will vary depending on regional competition, hotel operating costs, tourist season, and a multitude of other factors. The general rule of thumb is to set a price low enough to attract customers and high enough to make a profit. There are a few things to keep in mind when deciding on a price point.
   • Know your costs. You should accurately calculate the daily operating costs of the hotel. Then multiply it to see what the cost is per month. Your income should at least be enough to cover the monthly operating costs of the hotel, otherwise you won't be able to keep the business.
   • Find out what makes customers willing to pick up their wallet. This takes time to experiment. When you start opening a hotel, you will probably rely solely on operating costs for your guide. After a few months, if you find that your rooms are continuously full, you can increase your room rate. If you see few guests, please lower the price of the room. You can also survey customers after their stay and ask if they think the rate is reasonable.
   • Adjust prices depending on the season. During winter guests, you can raise prices higher because there are more people on holiday. The season is less crowded, you should lower the price to attract customers on off-season vacation.

5. 

   Cut costs if needed. Even with good financial management, your business will slow down at times. You should regularly analyze your costs and decide which ones are necessary and which ones won't affect your business. When your business slows down, cut down on unnecessary expenses. For example, if there are no visitors during the week and only a few rooms are booked, you probably don't need to hire someone to stand at the reception all day. You can do this by yourself and save on the salary paid for the receptionist. advertisement

Part 3 of 4: Hotel staff management

1. 

   Hire the necessary staff. More or less staff depends on the size of the hotel. For a small motel, you might just need a few maids. Hotels with lots of rooms, even small ones, often require a team of staff to function smoothly. When hiring employees, you should consider hiring at least the following positions.
   • Housekeeping staff. Cleanliness should be a top priority in the hotel business. Dirty hotels will get a bad reputation very quickly and guests won't come again. Depending on the size of your hotel, you may only need one person or a cleaning team. A housekeeping staff may be responsible for about 10-15 rooms per day; Remember this when hiring.
   • Receptionist. Even small hotels need someone to be on duty at the reception desk. You can do this by yourself some hours a day but still need a 24-hour reception staff.
   • Maintenance worker. One or two maintenance workers are enough for a small hotel. They must be multi-purpose personnel, able to handle a variety of tasks: plumbing, electrical, painting, errands, etc ... So you can let the maintenance staff do the little things, and if they If you can't do something, you can hire a professional service.
   • Chef. If you plan on providing food and drink services at the property, you need to hire at least one cook. Small hotels may only provide breakfast, so you could only need one person to cook for a few hours a day.

2. 

   Find out all candidates. Interview all potential employees carefully and talk to their referrals. You should also do a background check on each person. Don't forget that your employees will be able to enter the room and access the tenant's property. You will have to ensure that all your employees are trustworthy before giving them this right.

3. 

   
   
   Distribute the manual to all staff. You should set specific rules that every employee should follow. That way, you can ensure the quality of your service. Ask all staff to read the manual as part of the training. The guide should state exactly what to expect from each employee.
   • Emphasize that all customers should be treated with courtesy. The customer will not come if the service is not good, and your business will fail.
   • You should also state what activities are not allowed in the hotel, and specify the circumstances under which the contract can be terminated.

4. 

   
   
   Stipulate periodic staff meetings. The weekly or monthly meetings will help you stay on top of your staff. You should take advantage of these meetings to ask employees about any issues that could be improved, and encourage them to make suggestions for doing so.You should also be sure to compliment the staff when they do well to make them feel part of the team. Listen to the staff's suggestions - even if you're the owner - because they may have experience in the hospitality industry that you don't have, and they have the ability to suggest changes.

5. 

   
   
   Ready to be by the side of the staff. Tell the staff they can find you at any time if you have any problems or questions and you will listen to them. You should be regularly present in the hotel and take an active role in management. This will make the staff more comfortable with you and willing to open up. If you are never with them, you will appear distant and they will not be comfortable talking straight to you. advertisement

Part 4 of 4: Hotel marketing advertising

1. 

   Design a website. If it is not on the internet, your hotel is fundamentally unknown to potential guests. You can design your own website, but it's well worth it if you invest in a professional one - cheap sites are easy to spot. At the very least, your website should have the hotel name, location, contact information, and room rates. Small hotels often attract guests looking for privacy, so you can meet this need by adding specific information on your website. Whatever information you put on your website, you need to ensure it is accurate and up to date. An out-of-date website will make your hotel appear inactive or unprofessional and can be damaging to your business.
   • Hotel photography. Customers will want to see where they will stay. Post photos of hotel rooms as well as their surroundings.
   • Give information about yourself. Make your website personal by putting your information on the web. If the employees are willing, you can also put them on the site. This will provide a feeling of privacy, helping to attract guests to motels and hostels.
   • History of the hotel. Several small hotels are located in historic houses. If so, you would attract a niche market of history-loving clients, and you could respond to this demand by providing the full history of the building and surrounding area.
   • Any special rates or offers that the hotel offers.
   • List and describe nearby attractions. If the hotel is close to a tourist destination, advertise that information. This will make your hotel a convenient place to stay for tourists.

2. 

   Post advertising on travel websites such as Expedia, Viator, or Hotels.com. These sites are designed for those looking for hotels and tourist attractions. By posting ads on these sites, you will attract visitors from all parts of the country, even from other countries.

3. 

   Place brochures at intercity bus stops. Most of the bus stops have places to place tourist information and brochures. Contact those places to see if you can place your brochures. Small hotels are sometimes part of a tourist's spontaneous decision. By doing this advertising, you will attract a potential market.

4. 

   Offer incentives. Group discounts, free breakfast and discounts if guests book multiple days are good deals to attract low-budget customers. Remember to advertise all your offers on the site. However, you also need to make sure that you still have enough operating costs to cover when you offer discounts.

5. 

   Organization of events. Events like weddings or corporate activities will bring you more clients. If your hotel has only a few small rooms this might not seem possible. However, even a small hotel can have enough space to hold such events. While you don't have enough space for large conferences, today many businesses tend to take some of their CEOs or management boards to more intimate places for meetings and rest. A small town hostel can be the ideal setting for such events. Advertise on your website and other travel sites that you are willing to host events and offer discounts to attendees.

6. 

   Cooperate with local businesses. Small hotels often operate close to attractive destinations. Take advantage of this by having them help you advertise. Contact parks, historic sites, restaurants and theater administrators to see if you can cooperate. Invite them to place brochures in your hotel lobby if they recommend your hotel to visitors. This way, you can attract tourists in the area even if they don't see your ads.

7. 

   Make sure every guest who stays at your hotel has a great experience. In addition to other advertising methods, word of mouth advertising is also very beneficial. All guests staying at your hotel can tell their friends and family, post on social media and comment on the internet. You need to do everything to make sure it's positive. Even a single unsatisfied visitor can harm your business if they are put on the internet. By making sure every customer has a great time, you get customer loyalty, and that's a very good way to advertise.

8. 

   Take care of patrons. The satisfied guests who come to your hotel are a great potential market. In addition to providing good service during their stay, there are other methods you can use to entice them to return.
   • Make a list of email addresses. With the mailing list, you can keep customers informed about the offers you are offering. It is better to have customers subscribe to this list instead of sending letters to all the guests who have stayed in your hotel. If not, you may annoy the customer and make them turn away.
   • Reward patrons by offering special offers. There are many ways you can do this. You can get a discount for the second day of stay or get one free night after the minimum number of days off. You can also deposit points into the system so that customers can earn points and redeem offers.
   • Respond to customer feedback. Many travel websites allow hotels to respond to customer reviews. You should take advantage of this widget and respond to feedback, both good and bad. This will show the client that you value their opinion, and the more likely they will come back. Thereby you also tell potential customers that you are committed to providing good service to them.
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Advice

• Try to find a hotel with nice views. The place with beautiful views is a great place for a small hotel.