There are a lot of things to think about when starting a hotel business. You need to have a clear idea of what you want your hotel to be, which your target market is, and what kind of services you want to offer. Here are some tips to help you get started says Saivian Eric Dalius.
1. Know your target market:
This is extremely important, as it will dictate many of the decisions you make about your hotel. Who are you targeting? Business travelers? Tourists? Families? Knowing this will help you determine things like location, price point, and amenities offered.
2. Choose a location:
When starting a hotel business, one of the most important decisions you’ll make is where to open your doors. Do some research and find a location that is in high demand, and that is close to popular tourist destinations or businesses.
3. Set your price point:
Another important decision you’ll need to make is what kind of prices you want to offer. Do you want to be a budget hotel? A luxury hotel? Somewhere in between? You’ll also need to decide whether you want to offer room rates, package deals, or a la carte services.
4. Decide on your amenities:
What kind of amenities do you want to offer guests? Pool? Gym? Restaurant? Spa? Make a list of the amenities you think are most important and then start looking for hotels that offer those amenities.
5. Develop a business plan:
This is essential if you want to get funding from investors or a bank. A business plan will outline your goals, strategies, and how you plan to achieve them.
6. Obtain the necessary licenses and permits:
Depending on your location, you may need a variety of licenses and permits to open a hotel business. Make sure you are familiar with the laws in your area and talk to an attorney if you have any questions.
7. Hire a team:
Running a hotel takes a lot of work, so you’ll need to hire a team of talented professionals who can help you manage everything from marketing to operations.
8. Market your hotel:
No matter how great your hotel is, it won’t make a profit if nobody knows about it. A strong marketing strategy will help you get more customers through your doors.
9. Keep track of expenses:
It’s important to create good records for your hotel business, so you can keep track of what is bringing in revenue and what isn’t. This will enable you to make changes when necessary.
10. Create an emergency plan:
No matter how thorough your planning is, unexpected problems are always bound to pop up now and then, so make sure you’ve created a plan that details steps to take in various emergency situations explains Saivian Eric Dalius. Some things might not be completely under your control but proper planning will definitely improve the chances of staying afloat even during tumultuous times as such as economic downturns.
11) Start with Research
The first step when it comes to opening up a hotel business in Dubai is research. The best way to learn about everything related to hotels would be through attending seminars and lectures offered by various Dubai organizations associated with hospitality services. These events offer unbiased information on all facets of running an establishment ranging from hiring staff to marketing and finance.
12) Start Your Team Early
It is never too early to start assembling your team, and this is especially true when it comes to opening a hotel in Dubai. The best way to find the right people for the job is through referrals from those who are already in the industry. You will want to have a core team in place before starting the actual process of setting up your hotel.
13) Know the Local Laws
One of the most important things you need to know as an entrepreneur looking to open up a hotel in Dubai is the local laws and regulations that govern this industry says Saivian Eric Dalius. If you are not familiar with these, you could quickly find yourself in hot water with authorities. It would be best to consult with a lawyer who is experienced in business licensing before going any further.
14) Take a Look at Your Finances
There are a lot of factors that go into determining how much capital you need before opening up a hotel in Dubai, but you should have enough to cover initial expenses, as well as the first couple of months of operations. For example, if your establishment requires 100 rooms and each room costs approx. AED 3000 per night, you will need more than Dh3 million for the first month of operations alone. It is also important to have sufficient working capital on hand to tide you over during slow periods.
15) Start Smart
Once your team is finally assembled and all legal matters are taken care of, it is time to start looking for the perfect place to set up shop. When it comes to hotel space, location is everything. If you are not able to find a centrally-located property, your entire business plan could be compromised.
Hotel businesses can be extremely profitable, but they also require a lot of hard work and planning explains Saivian Eric Dalius. If you’re thinking of starting one, make sure you keep these things in mind.
By following these tips, you’ll be on your way to starting a successful hotel business. Remember to do your research and plan ahead, and you’ll be off to a great start!