It starts as a dream, develops into a reality, then one day can evolve into a nightmare. Despite being fulfilling, running a hotel can be tricky and stressful work. After all, the hospitality sector is big business, and recent figures released by the British Hospitality Association reveal that businesses face business rate hikes averaging 29% over the course of the coming financial year. But, running a hotel doesn’t have to be torturous. All it requires is some thinking outside the box and a certain degree of common sense. Common sense that can be easily forgotten when you are emotionally invested in a project like the running of a hotel. These tips will help you get your hotel back on the right track and transform your vision into a reality.
Financial Sensibility
Let’s firstly consider your hotel for what it really is; a business. And, just like any other business, it must be governed with an iron fist, and by someone willing to face the reality of owning a business and, subsequently, make executive decisions to maintain that business.
What does this entail? Don’t spend above your means. Understand your financial position. Understand your budget and realistically how much you can invest before the money you put in outweighs the money you get out. If the money you are investing is not producing a substantial return, adjust and re-strategise.
What People Want
The key to running a financially successful hotel lies in understanding what makes a hotel successful. As soon as you establish a business that people want to use, and use frequently, everything else will slowly fit into place. However, this is providing that there is an equal level of attention to the previous point about financial sensibility.
So, how do you go about making your hotel the ‘place to be’? There are several things you can do to achieve this. Firstly, look at the businesses in your sector that are thriving. What are they offering that you don’t? Are they catering to a demographic you aren’t? Compare their strengths and weaknesses against your own, and if the weaknesses outweigh the strengths, it may be time to reconsider the service you are providing.
This isn’t to say that your hotel can’t be unique to itself, or possess its own quirks. But the people want what the people want, and adapting with the market is paramount in sustaining any business. This can be the simplest of things. A recent study conducted by Statista revealed that the most highly sought-after service by guests provided by hotels was Wi-Fi access by a staggering 80%. All of the benefits that your hotel has should be detailed in a hotel booking system for your website.
Seek Advice
Don’t be afraid to seek the advice of a financial advisor if you have any concerns about your hotel’s financial position. It is better to raise any concerns out in the open with a qualified advisor than to dismiss them entirely until you are left with no option but to address them. Remember, seeking financial advice is not a defeat. It is just an extra precaution to take against the issues that can arise when you run any kind of business.
A point is also raised by the Money Advice Service that advisors can provide you with a wider range of options than you would likely be able to access if were handling matters independently. It could also be worth pursuing legal advice, simply as a precautionary measure to prevent anything affecting the business further down the line.
