The service and hospitality sectors are one of the fastest growing business sectors nationwide. The business of hotels is growing rapidly with an increasing need and requirement of accommodation facilities. The emergence and rise of online platforms like OYO rooms and Airbnb has made booking rooms and dinner reservations much easier than before. However, starting and managing a hotel business is a tough task and requires a lot of investment and strategic planning along with all the feasibility checks and financial calculations.
The following study is dedicated to studying the process of the development of a feasible and reliable hotel establishment plan.
Planning for the establishment of Hotel Business
- The first and foremost step for the creation of an actual hotel establishment plan is research and calculation of even minute details and important aspects, such as feasibility, viability and future sustainable growth.
- The other important step is to take the help of a financial expert who is well qualified and capable enough to calculate all the working capital expenditure and expenses along with the breakeven point and revenue generation methods.
- The plan must include the type of hotel along with general details, such as rooms, amenities, capacity and infrastructure requirements.
- The other important factor is the location and the amount of staff required.
- The location must be selected upon the availability and proper research of the requirement of the particular area.
- The hotel requires a lot of time to reach the break-even due to its huge initial spending and is often considered a long-term investment.
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Important strategies for running the hotel business
- The hotel generally requires a lot of human resources especially the management team of qualified and experienced managers along with the trainees for assistance
- The best way to prepare any hotel plan is to visit many popular hotels spread across the regions and study their planning and infrastructure
- Meeting various hotel owners and gaining the required experience from them is one of the most important steps for establishment of any particular hospitality assets as insights from them can prove to be very profitable and helpful in long term
- The second phase of the planning is the formation of the financial structure according to the requirements
- All the options such as feasibility along with the various partnership options can be sought out
- Many financial institutions, such as banks and NBFCs provide financial assistance with attractive interest rates and flexible repayment options for creation of business establishments
- Calculation of all the financial charts and data such as balance sheets, cost charts, revenue tables is crucial, as it provides the correct idea about the profitability and breaks even points of the hotel business
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Market research and analysis
- The meeting with investment experts will give you the correct idea about the different amount of investment required in the specific sectors, such as infrastructure, employment and marketing costs and overall business spending.
- It is important in the planning and execution phase to remain in contact with trusted professionals who can provide rightful and valuable guidance.
- The business of hotels contains various risks and vulnerabilities that are required to be assessed thoroughly to maintain safety and security at all stages of execution.
- The primary concern and responsibility of all the hotel owners is the security and safety of the guests.
- There should be a proper investment scope in maintaining security in the overall planning phase.
- The hotel owners must have a proper understanding of the requirements of the guests, as everyone has different demands.
- The factor of unique services and products make them stand out among the rest of the competitors.
- The most important thing in the mind of a hotel owner is the satisfaction of the customers that is why efforts must be made to personally hire all of the employees according to their qualification and experience.
Essential facts to consider for the hotel business
- The hotel business is one of the most exciting businesses that can make anybody rich enough to fulfil most of his/her dreams but requires a lot of hard work and patience
- The planning phase is a most important part of any live project and must be conducted with the help of superior technologies, such as artificial intelligence and machine learning in order to study the behaviour of various categories of customers
- The planning must include minute details of the execution phases, including the promotional strategy
- The good hotel plan will be very focused and specific to the exact needs and requirements and will not allow any wastage of precious resource on redundant investments
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