How to run a small hotel or hotel?

Opening a small hotel is the dream of many people who like to associate with others and want to start their own business. It's a pity that you can't completely hope that your hotel will succeed automatically when you start a business. Only careful research, management and financial planning can make the hotel successful. Please keep in mind the following when you plan to open your own hotel.

Parts 1 Conduct market research.

1 Determine the hotel address. Before worrying about the exact location, you must think more widely and decide your city or town. At the very least, you must consider the tourism industry in a specific area. Since this is a small hotel or hotel rather than a hotel chain, you may prefer vacationers and tourists to business people on business trips. Therefore, you must choose the places where people will go. Check travel websites or books, find out some good destinations that vacationers will often go to, and start looking for a good place for your hotel there. [1] 2 Consider whether to buy an existing hotel or build a new hotel. This is the first decision you have to make after you settle down in a town. You can find the owner who wants to sell the hotel, or build a new hotel from scratch. Before making a decision, you should carefully weigh the pros and cons of each option. [2] If you want to buy an existing hotel, it may be cheaper than building a new hotel, unless the industry needs substantial construction. You can also keep some employees, which will simplify your recruitment. However, if the hotel you buy has a bad reputation, your profit may be damaged. You will have to work hard to publicize that this hotel is under new management. If you want to build a new hotel, it may be more expensive. However, you can build it, which means you can design for a specific niche market. Also remember, if you want to build a new hotel, you must promote your grand opening to attract customers. In addition, when building a new hotel, make sure that the area is divided into hotels and guesthouses. Investigate other hotels, hotels and B&B hotels in this area. You must have confidence in the competition you will face and how to successfully develop the market for yourself. The following are the things you should pay attention to when investigating potential competition. This will let you know how to make your hotel stand out. [3][4] Understand the charges of competitors. Check all local hotels to find out the room rate per night. Remember, price is not everything. If a hotel is cheap, but all the comments are bad reviews, you should not compete with other hotels by reducing prices. Read customer reviews online. This will let you know what customers think of praise or complaints. In this way, you can know what customers are looking for in the hotel, which will make you better cater to the market. Check the services provided by local hotels besides rooms. Do they have a restaurant? Swimming pool? Gym? Or breakfast service? Book some local hotels and really understand what they offer. Overnight can give you a personal experience and know something about your hotel. Know your main market. This will help you to provide services to customers. Small hotels usually attract vacationers who can only stay for a few nights. If your hotel is located in a country or a small town, you may see many people from the city trying to get rid of the noise. If so, you should decorate the hotel with simple things that reflect the life in the town. [5]5 Determine the additional services your hotel needs to provide. Such customers usually look for a good personal feeling, so providing some services will make them feel humanized and comfortable. Holidaymakers in small hotels usually seek to relax, so you can set up a secluded outdoor area for guests to rest. Smaller hotels usually don't provide gyms or restaurants, but they can also include these. Remember, every extra service you decide to provide is an extra financial expense, including installation and maintenance. Please budget carefully to avoid losing money in these projects. [6][7]

The second part is the management of hotel finance

1 hire an accountant. Even if you open a hotel because of your life dream, you must remember that it is still a financial investment. Unless your hotel is small and you are a skilled accountant, you may need an accountant to help you manage your finances. All hotels, even small hotels, need to pay a lot of fees, such as staffing, utilities, rent, taxes, equipment and so on. Accountants can help you manage the whole hotel and ensure your future finances. The US Small Business Administration suggests that you find an accountant in the following ways. [8] Personal recommendation is usually the best way to find a reliable accountant. Ask other local small business owners about the accountants they hired, and ask them if they are satisfied with the accountants they hired. You can also see if your local chamber of commerce holds online activities for small business owners, or you can contact a substitute accountant. Arrange a meeting with the agent accountant. Most accountants will provide free introduction meetings for potential customers. When you edit the list of candidates, please meet them to find out their experience and qualifications and see if they are suitable for your hotel. Find out if the candidate has any experience working in a hotel. Hotels are unique enterprises that need specific knowledge. It will be ideal if your candidate has worked in a hotel, especially the experience of managing a hotel alone. This will ensure that he has experience in the specific situation you may face. Determine whether the candidate is reliable. Besides experience, you need an accountant who can work for a long time. If he is late for the meeting, doesn't call back and doesn't work well, even if he has good experience, he may not be your best partner. Remember, you should try to establish long-term partnerships with those who can help you develop your business. 2. Make a good business plan. When opening a hotel, it may be necessary to seek capital investment from banks or private investors. Either way, the other party wants to see a business plan to determine whether your business is worth investing. Besides, a good business plan can help you organize your hotel and have a clear plan on how to succeed. The business plan of the hotel should at least include the following contents. [9] Describe the services provided by the hotel. Describe how these distinguish you from other hotels in the area. Can you offer a better price? Or more personalized service? Investors will want to know what makes your hotel different. Who is your potential market? Explain the people you want to serve and why they choose your hotel. Forecast your future income. Investors want to see your hotel profitable. With the help of an accountant, calculate your expected annual income. Also explain when you expect to start making profits and what level your hotel will be in in the next few years. Details of your expenses. Buying or renting a property, decorating and renovating it, your hotel will generate a lot of expenses. When applying for a loan, please provide your estimate of the total cost. Also make sure you have a good estimate of the daily operating costs. It may take several months for your hotel to start attracting enough customers to pay your expenses, so you need cash to stay open during this time. 3 get start-up funds. When you make a business plan and submit it to potential investors, through a good business plan, you can prove that your hotel will be a profitable attempt, which will convince investors to provide you with the necessary funds. You have two options for obtaining capital, and eventually you may need to combine them. The bank. Depending on the type of loan, you can get a loan from the bank for several months to several years. This can cover your start-up costs and operating expenses for the first few months. Private investors. These people can be friends, family members or other business owners who are interested in investing. You need to determine whether these people are just providing a loan and you need to repay the loan interest, or whether they want to buy your company. Make a contract, determine the terms of your agreement and notarize it to prevent future problems. 4 set the price. Once you open a hotel, your price will determine your profit level. Due to local competition, operating costs, seasons and countless other factors, your room price will be different. The general rule when setting the price is to ensure that the price is low enough to attract customers and make a profit. Please pay attention to some matters when pricing. [10] Know your cost. You have to accurately calculate the daily operating cost of the hotel to know how much it costs to run the hotel every month. Your income must at least cover your monthly expenses, otherwise you will not be able to continue your business. Understand the fees that customers are willing to pay. This will require some trial and error. At first, your only criterion may be your operating cost. If after a few months, you will notice that your room is constantly booked, and you have the ability to raise the price. If you can't get customers, lower the price. You can also conduct a questionnaire survey on customers and ask them if they think the house price is fair. Adjust the price according to the season. In the peak season, you can show higher prices because more people are on vacation. In the off-season, lower your price to attract customers in the off-season. 5 Reduce costs when necessary. Even with good financial management, your hotel will certainly experience a slow development period. You should analyze your expenses regularly and decide what is necessary and what can't be done. In the off-season, cut unnecessary costs to save money. For example, if you only book a few rooms a week, you may not need to stay alone at the front desk all day. Fulfill this obligation by yourself and save costs. [ 1 1][ 12]

Part III Management of Hotel Staff

1 Hire necessary personnel. The number of your employees will vary according to the size of the hotel. For a small bed and breakfast hotel, you may only need a few assistants to run it. And hotels with multiple rooms, even small rooms like yours, usually need a team of staff to operate smoothly. When looking for employees, you should consider the following positions. [13][ 14] housekeeper. When running a hotel, cleaning should be your first task. A dirty hotel will soon have a bad reputation and customers will not come. Depending on the size of the hotel, you may need a housekeeper or a team. A housekeeper can generally manage about 10- 15 rooms every day, so keep this in mind when recruiting. Front desk staff. Usually even small hotels need someone to serve at the front desk. Maybe it can be done in a few hours, but it still needs a team to serve at the front desk 24 hours a day. Maintenance personnel. One or two maintenance personnel in the small hotel should be enough. They should be general staff, they can perform a wide range of tasks: piping, painting, maintenance work, electrical and so on. In this way, you can let the maintenance staff handle some small tasks, and if they can't handle them, you can hire professionals to do more comprehensive work. A cook. If you plan to serve food in the hotel, you need at least one chef. Smaller hotels may only serve breakfast, so they may only need to cook for a few hours a day. Investigate all applicants. Know all your potential employees and refer to your personal data. You should also check them backstage. Please remember that your employees will have access to your guests' rooms and personal property. Before granting such access, you need to ensure that all employees are trustworthy. Make a manual for all employees. You should make a specific system for all employees. In this way, you can ensure consistent service for your guests. As part of the training, let all employees read this manual. In the manual, specify the expectations of each employee. [16] emphasizes treating all guests well. Without good service, your customers will be lost and your business will fail. It should also explain which activities are prohibited in public places and which behaviors will be dismissed. 4 Hold regular working meetings. Weekly or monthly meetings will help you maintain good relations with employees. You should tell your employees whether there is anything that can be improved through these meetings and ask for suggestions on how to improve. In addition, we must praise good work behavior and make employees feel that they are part of a team. Listen carefully while giving advice-even if you are the boss, your employees may have a hotel experience that you don't have, and they can make some suggestions for improvement. [17]5 Integration with employees. Tell your employees that they can talk to you about any problems or concerns at any time and will listen to your opinions. You should always stay in the hotel and play an active role in management. This will make employees more open to you. If you are never there, or it seems far away, your employees may not be honest with you. [ 18]

Part IV Hotel Marketing

1 Design the website. If your hotel doesn't appear online, your potential customers are basically invisible. You can design your own website, but you may need to invest in professional work on your website-cheap websites are usually easy to identify. At least your website should have the name, location, contact information and one-night price of the hotel. Small hotels often attract guests to look for a more personalized feeling, so you can meet this demand by adding some specific information to the website. Whatever you put on the website, make sure it is accurate and up-to-date. An outdated website will make your hotel look inactive or unprofessional, which may affect your business. [19] Hotel pictures. Guests will want to see where they will live. Including photos of the room and nearby scenery. About your personal information. Put yourself on the website to make your website more personalized. You can also upload employees if they want. This will also attract guests to stay in your hotel. History of the hotel. Some small hotels are located in historic houses. If so, you will attract fans of this history, and you can provide a comprehensive history of the building and its surrounding areas. Any unique sales or transactions offered by your hotel. List and description of nearby scenic spots. If you are near any tourist attractions, please show this information. This will make your hotel look like a convenient place to stay. Advertise on Expedia, Viator or travel websites in Hotels.com. These and other websites aim to find hotels and tourist destinations for people. By placing advertisements on these websites, you will attract guests from all over the country and even other countries. Put a brochure at the rest stop on the interstate. Most rest areas have brochures and tourist information. Please contact your local chamber of commerce to find out how to get your brochure. Small hotels sometimes help travelers make decisions. By advertising in this way, you will be able to seize this potential market. [20]4 Offer discounts or special prices. Group discount, free breakfast and lower accommodation price are good ways to attract customers. Make sure you advertise any offers you offer on the website. In addition, when offering discounts, make sure that you can still guarantee all the operating costs. [2 1]5 undertake activities. Weddings, business and leisure activities will bring you many guests. If you only have a few small rooms, this may be impossible. However, even a small hotel can have enough space to hold such activities. Although you may not have room for large-scale business meetings, more and more enterprises are increasingly sending some senior executives or managers to attend more intimate retreats. Hotels in small towns may be ideal places for such activities. Advertise on your website and other travel websites. Activities can be held in public and special discounts can be offered to participants. [22]6 Cooperation with local enterprises. Small hotels are usually operated near local attractions. Take advantage of this and let these scenic spots help you advertise. Contact the managers of local parks, historical sites, restaurants and theaters to see if some deals can be made. If they recommend your hotel to tourists, you can put their brochures in your lobby to attract tourists for them. In this way, you can get passengers in this area who may not have seen your other advertisements. [23]7 Make sure all guests have a good experience. In addition to advertising and other ways, word of mouth is still very important. All your guests may tell friends and family about your hotel, and guests will post it on social media and provide it for their friends to watch online. You should make every effort to ensure that this feedback is positive. Even if a disgruntled guest feeds back the information of your hotel online, it will damage your business. If you make every guest feel a good experience, you will build customer loyalty and bring you excellent advertising effects. [24]8 Cultivate repeat customers. Guests who like to stay in the past are an important source of future business. Besides providing them with good service during their stay, there are several ways to attract repeat customers. [25] Set the mailing list. By mass mailing, you can let past guests know the discounts and specials you offer. It's better for guests to sign this list instead of sending it to everyone who has stayed. Otherwise, you may disturb the guests and lose these repeat customers. Reward repeat customers by offering special discounts to past guests. There are many ways to do this. You can give the guest a discount for the second stay, or provide one night for free after staying at least one night. You can also put the points system together, so that guests can accumulate points in this way and get preferential treatment. Respond to customer feedback. Some travel websites allow hotels to reply to customer comments. You should take advantage of this and answer good and bad feedback. This will make guests feel that you have taken their opinions seriously, and they may be more willing to come again. It also shows potential guests that you are committed to good customer service.

skill

Try to see the scenery around your hotel. The scenic spot is a good place to open a small hotel.