close

ADVICE: What type of hotel do you want to own?

Hotel sign

Opening and running a hotel is an exciting and potentially lucrative dream. If you are going to make it a success, however, you need to be sure that you open the right hotel for you.

The hotel industry is extensive and there are a large number of different hotels in operation around the world. Each type of hotel appeals to a different type of customer and will take a slightly different entrepreneur to run successfully.

Before you invest any of your money, here are some of the options you have. You will need to evaluate the market, your personal circumstances, passions and available capital in order to choose the right hotel to buy or open.

Story continues below
Advertisement

Luxury hotel:

This is a great choice of hotel for those who wish to venture into the hotel business. However, it usually requires a large investment. In this hotel, guests expect to get more than what is considered standard.

Despite this, these hotels are usually in high demand. Those looking for a weekend of luxury and a way to treat themselves will often prefer this option. Luxury hotels customarily include room service, and luxury extras like a heated pools or golf courses.

In these types of hotels, guests usually expect the best since they pay a premium price. Thus, you must be ready to make a huge investment in PR and top-quality services. Another important consideration is the location. Most luxury hotels are located in exotic tourist hotspots.

Boutique hotel:

Just like a luxury hotel, there is no standard set of features. However, what is a common attribute is that a boutique hotel is usually small with anywhere from 10 to 80 or so rooms.

Most of these hotels are situated in busy cities and travellers or tourists looking to enjoy the cultural scene in a city. At times, they are located away from the city but close to a tourist hotspot.

The service in boutique hotels is often ultra-personal and every boutique hotel is different. Many of them will be done to a particular theme or style to add to its unique feeling.

Business hotel:

These hotels are often built close to convention centres and airports to cater to people who are travelling for business. Efficiency and practically is usually at the top of priorities for the guest that use this type of hotel.

Hotels such as these need to offer good amenities like Wi-Fi, newspapers, and breakfast. Hotels catering to business people will also offer spaces where their guests can conduct meetings and will usually make sure that the rooms are silent.

Serviced apartments:

Also called aparthotels, they are designed for extended stays. Most have standard hotel amenities plus extras such as a fully equipped kitchen, a laundry room, and a lounge. They can also feature parking and more than one bedroom.

A serviced apartment is perfect for families going on extended holiday and businesspersons on extended travels. If this is the clientele you have in mind, a serviced apartment might be the best option for you.

Guesthouse:

A guesthouse usually has fewer rooms that a standard hotel. Often, a guesthouse is a private home that has been converted to offer guest accommodation. In these cases, it’s not uncommon for the owner to live on the same property.

The type of hotel that you decide to run will be influenced by both your means and what you’re passionate about. You should also do as much research as possible so that you know what there is room for in the market.

Know who it is that you’re marketing to and what it is that you should offer them. No matter what hotel you open, though, you will always need to have quality beds, good plumbing and a clean environment. And, as the hotel owner, you will need to work hard to keep up these standards.

By Matthew Hernon is an Account Manager at Dynamis looking after Business Transfer Agents and Franchises across BusinessesForSale.com and FranchiseSales.com.

Zoe Monk

The author Zoe Monk

Leave a Response