How do high-end hotels seem to make money?

In addition to the room rate brought by guests, other profit-making methods mainly come from the following points.

The supporting projects of 0 1. Hotel include other services besides guest rooms. Generally speaking, there is no accommodation in the hotel 1 5 floors. There will be large conference rooms and restaurants, such as Chinese food, western food, buffet, bar, bar, swimming pool, advanced gym and so on. Mainly depends on the hotel's marketing team. If the hotel catering industry is well done and attractive enough, it can bring great profits to the hotel.

02. Wedding Banquet, Annual Meeting of Enterprises Any large hotel will not only provide accommodation, but also host wedding banquets, annual meetings of large enterprises, including some important meetings of the unit. Mainly depends on whether the hotel will promote and attract people. Many high-end hotels basically receive many couples' weddings at the same time every day during the wedding season.

Besides, in daily life, many enterprises will hold important meetings or annual meetings in high-end hotels in order to enhance the sense of ceremony. Moreover, according to my observation, in our local area, many insurance companies and real estate agents cooperate with hotels and even sign long-term cooperation agreements every time they hold large-scale meetings because of too many employees.

03. Rent subsidy This is a kind of project support. Many five-star hotels in first-tier cities are on the top floor of high-end office buildings, which is particularly high in Guangzhou Pearl River New Town business circle. Many high-end office buildings will sign cooperation agreements with some high-end hotels in order to upgrade their own grades and attract more enterprises to settle in. Part of the hotel's income can be subsidized by office rent.

04. The location of high-end hotels seeking capital premium is very strict. Generally, they will choose a prosperous area in the city, or an area with faster value-added in the future. Many high-end hotels with low-cost investment can be resold to local enterprises or units in need after the land price rises.

As collateral, the hotel can get a loan. This is also ignored by many people. As a relatively high-quality asset, high-end hotels can be used as loan collateral, and many hotels can use this to obtain loans with relatively low interest rates. In this way, the loan amount will be used for other investment directions to obtain income.

Besides making profits, what other functions do high-end hotels have? In fact, many investors have other functions besides making profits when building high-end hotels. For example, when many real estate enterprises invest in tourist cities or high-value commercial land, in order to improve the overall grade and attract guests. Will choose to build high-end hotels.

Other non-real estate enterprises will also choose to invest in high-end hotels as their own image display, which not only expands the company's business, but also meets the reception needs of enterprises in their daily operations, killing two birds with one stone.

The final conclusion is that interlacing is like a mountain. Any industry has its own reasons. Opportunities are reserved for people with brains and preparations. We still need to learn more from them.