Why is it difficult to open a hotel?

The key to a hotel is whether its scale and positioning are in line with the local consumption level you are targeting, as well as the choice trends of this level of consumer groups.

Features are important, but not absolute. Importantly, the initial site selection and decoration are all closely related to scale and positioning. Do you understand?

The difficulties in the early stage of business are mainly reflected in publicity, which requires a lot of investment. , but profit recovery is unpredictable and must be judged based on your understanding of the local market!

When this period of time passes and the passenger flow is stable and gradually increases, management problems gradually emerge, requiring you to continue Adjustment, when management is stable, you will face cost control problems (involving profit growth). When this problem is solved, because it takes a long time, your original customers may find new ones, and you will cycle back to publicity and features, and the decoration itself is aging, which requires a certain amount of investment!

In short, it is difficult to do well in this business because the profit is very high (not counting operating costs, the profit of the dishes is basically 60%). Therefore, if there are many people doing it and the competition is brutal, the survival rate will be much lower. The key lies in personal understanding of the local market... The degree of understanding of the decision-maker determines whether the management you do is effective!