Why are some high-end hotels and guesthouses almost unattended, but they can stand still?

A senior hotel manager once told me that high-end hotels seem to be neglected. In fact, there are many ways to make profits, all of which are long-term businesses. As long as you build a high-end hotel, you won't worry about making money.

Many people's understanding of high-end hotels is still stuck in the inherent impression of express hotels. They think that the comparison between high-end hotels and express hotels is only that the infrastructure is more luxurious and the house price is more expensive.

If high-end hotels are unoccupied for a long time, will they face the risk of loss like express hotels?

But it won't. A Shangri-La hotel executive once told me that although the room occupancy rate is an important source of income for high-end hotels, the impact is not absolute.

For high-end hotels, the occupancy rate of 50% is a very common phenomenon, and after the occupancy rate reaches 75%, the whole hotel is in a state of high load, so it is necessary to control the room occupancy rate in time to avoid affecting the operation of the whole hotel.

Generally speaking, the room occupancy rate of a high-end hotel can only be maintained at 20% per year. You can keep the hotel in balance.

The rest of the profit model depends on other projects of the hotel, and the supporting services of high-end hotels are the focus of attracting guests' consumption.

Below, I will give you a comprehensive analysis of how high-end hotels that seem to be neglected are profitable.

"High-end hotel" generally refers to a four-star hotel with luxurious hotel environment and facilities, which provides first-class accommodation, catering and services for business and leisure travelers.

High-end hotels are generally built in large port cities or commercial centers of cities, with high consumption and good service, and are venues for stars and rich people.

From the definition of high-end hotel, we can know that the cost of investing in building a high-end hotel is very high, but under the premise of high investment, there are not many guests who usually stay, so how can the hotel make a profit?

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

0 1. Hotel supporting projects

Besides guest rooms, high-end hotels have other services. Generally speaking, hotels 1 to 5 floors do not provide accommodation. 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

But any bigger 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 supporting project. 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. Seek a capital premium

The location requirements of high-end hotels are very strict. Generally, they will choose the prosperous areas in the city, or the areas with extremely fast value-added in the future.

There is also a saying, "Where a five-star hotel is built, it means that the land price in that place will rise soon."

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.

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 above are some simple sharing about why high-end hotels can stand for a long time.

Therefore, 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.

I still have a say in this. After all, I worked in a five-star hotel. I won't talk about the facilities inside Anyway, the price is top-notch The most common standard room is 1000 to 2000 yuan. There are villas and suites, the cheapest 1000. This is not a five-star hotel, so I don't know what a five-star hotel is. First of all, in the normal period and peak season when there is no epidemic, the business capacity of the whole hotel is still acceptable. In the off-season Golden Week, the guest rule can reach 1 0,000%, and the occupancy rate can reach 30% to 40%, because there are very few individual guests in this high-end hotel, and most of them are meetings or other activities, including the presence of stars.

Anyway, the investment of this high-end hotel is not bad, and the annual profit can reach 1 10 million. Some people may wonder, it will take a long time for hotels to recover their costs according to this profit model, and won't they make money? I can only say that you are naive. You didn't know how dark it was until you touched it. First of all, do you know what is his most valuable thing in the hotel industry? What you think is the hotel itself is actually the land under the hotel. I invested hundreds of millions in that hotel, added land to this hotel, and directly pledged 10 times the cash in the bank.

That's how people play. You think that hotels can make money, but in fact, hotels can't make much money at all.

So to be honest, the waiter's attitude is not good at all, and the service attitude is definitely not up to standard, because people don't make money by that. I don't know if all hotels are like this, but at least the hotels I serve are like this.

Only people at the bottom of the pyramid will think of opening a hotel to make money. Most of those high-end hotels are diversified enterprise groups, and the real estate rights of hotels can be mortgaged to banks for other money-making fields. For example, a hotel mortgage to a bank, financing 300 million yuan, then invest in a real estate, mortgage financing, become a chip enterprise, mortgage financing, become a graphene enterprise, mortgage financing, become a carbon fiber enterprise, and turn around, a large enterprise group with assets of tens of billions. Dangdang went public, doubled, and the market value was hundreds of billions. The high-end hotels that stand there only need to be displayed there in a decent and glamorous way. I thought of it and publicized it. It is enough to receive those high-spending people in an extremely luxurious way. Usually there are not many customers, and you don't need to earn much money, as long as the profit maintains the operating cost. With the long-term and chronic overall economic growth, land will appreciate.

Look at those big enterprise groups, which one is not, and the enterprise even loses money, but those big shareholders are worth tens of billions, and some have their own real estate abroad, but they just can't see their own enterprises making money.

Do you understand why?

In fact, there may be a big gap between what you see and the real situation of the hotel. For example, on the surface, there are very few people in and out of the hotel at ordinary times, as if there are no customers, but in fact the overall occupancy rate of the hotel is not low.

Let's take a look at the data of star hotels before the outbreak of 20 19.

By the end of 20 19, there were a total of star-rated hotels 10003 in China, including 62 hotels with one star, 65,438 hotels with two stars, 4,888 hotels with three stars, 2,550 hotels with four stars and 845 hotels with five stars.

In addition, in 20 19, the total operating income of 8920 star-rated hotels nationwide reached 190777 billion yuan, with a net profit of 5.559 billion yuan.

Judging from the overall performance of domestic star-rated hotels, in fact, the whole industry is still in a profitable state, but the profit margin is very small, and the overall profit margin of star-rated hotels is only about 3%.

Moreover, in many star-rated hotels, the real profits are actually mainly contributed by five-star hotels. For example, in 20 19, the operating income of five-star hotels was 814.68 million yuan, the corresponding total profit reached 61370,000 yuan, and the net interest rate reached about 7.5%.

Compared with five-star hotels, the profitability of three-star hotels in four-star hotels is relatively weak. In 20 19, the overall loss of four-star hotels was 433 million yuan, and the overall loss of three-star hotels was 278 million yuan.

In addition, in 20 19, the overall profit of two-star hotels was 654.38+27 million yuan, and that of one-star hotels was 06 million yuan.

This shows that at present, China's hotel industry presents a trend of profit at both ends and loss in the middle. The real profits are either high-end hotels or some relatively civilian hotels.

Then why do five-star hotels usually have few people looking at houses, but their profitability is still relatively strong? Actually, there are several reasons for this.

First, five-star hotels have diversified income sources. In many people's impressions, when it comes to hotels, many people think that they are only used for accommodation. In fact, for some high-end hotels, their functions are far more than accommodation, but there are many functions, such as accommodation, catering, meeting, entertainment, beauty, leisure and so on.

The profit contributed by accommodation to the hotel is not the highest. Judging from the actual situation of major hotels in China, catering is the main source of income for these high-end hotels.

This situation is not only in high-end hotels, but also in some low-star hotels. For example, in 20 19 years, catering business income accounted for 42.49%, while room income accounted for only 38. 19%.

For those cities with relatively developed economies, catering accounts for a higher proportion of hotel income. For example, from 2065438 to 2009, the total income of Beijing hotels was 1999 1 100 million yuan, of which catering income accounted for 49.7% and room income only accounted for 26.84%.

Moreover, the profit margin of high-end hotels is very high, and a buffet may cost more than 200 yuan.

Of course, in addition to buffets, they usually have special meetings or wedding banquets, which may bring tens of thousands or even hundreds of thousands of income to the hotel every time. This is the real source of income for the hotel.

Second, the occupancy rate of five-star hotels is relatively high. It seems that no one enters or exits the hotel at ordinary times, but it's just an illusion. From the actual situation, the occupancy rate of those high-end hotels is not low.

Because these hotels are open 24 hours a day and customers are scattered in different time periods, we can see that there are not so many people in the hotel, but the overall occupancy rate of the hotel can basically reach more than 50% a day.

For example, in 20 19, the national average occupancy rate of five-star hotels reached 60.94%, four-star hotels reached 55. 1 1%, and three-star hotels reached 52. 15%.

Although the occupancy rate is not particularly high, it is still acceptable for hotels.

In fact, for these high-end hotels, the occupancy rate 100% is not a good thing. The occupancy rate is between 60% and 80%, which is actually the most comfortable state and the best experience for customers.

Third, the per capita consumption of five-star hotels is high. High-end hotels face high-end customer groups. These high-end customer groups have strong spending power and very high per capita consumption. Let's take the guest room for example. In 20 19, the average unit price of five-star hotels in China was about 596.5/ room/day in 6 yuan, which was much higher than that of ordinary hotels.

It is precisely because the unit price is relatively high, so even if the occupancy rate of the hotel is not so high, there will be many profits that can be created for the hotel. If a five-star hotel has 300 rooms, the average unit price of each room is 600 yuan, and the average occupancy rate reaches 55%, the daily room income will be close to 654.38+10,000 yuan, and the annual income will exceed 36 million yuan. If all kinds of income such as catering, entertainment and conference reception are included, the annual revenue may reach more than 654.38 billion yuan.

It can be seen that although there are few people in these high-star hotels, they can still continue to make profits.

And for these high-end hotels, their initial investment is very large. If it is a self-built property, the initial investment may reach hundreds of millions or even billions. Even the leasing business has a long term.

In addition, the decoration requirements of these high-end hotels are very high, and the decoration cost of each room is relatively high. Five-star hotel single room decoration costs may reach more than 654.38+ million. If the decoration cost of other facilities is included, the decoration cost of a hotel may reach tens of millions or more.

It is precisely because of the high investment in the early stage that the hotel is basically impossible to make a profit in the short term. Investing in hotels basically has a long-term process, such as 10 years or more, or even more than 20 years.

For these high-end hotels, as long as the local traffic is high, the location is good and the marketing is in place, it is basically impossible to lose money in the long run, which is why they have stood firm for many years.

When it comes to hotels, we will take it for granted that whether a hotel makes money depends on the number of people staying. In fact, hotels don't rely on accommodation business to make profits at all. Their way of making money is another way. Generally, hotels and guesthouses will be opened in downtown areas with particularly large traffic. These hotels are generally national chain hotels, and the price is around 200. However, high-end hotels with accommodation prices above 500 are all located in remote places, which makes people ask, can you make money by driving in such a remote place with such a small flow of people?

What I want to tell you is that these high-end hotels can make money and make a lot of money, which is why they stand firm. Let me tell you the secret of high-end hotel management.

The reason why high-end hotels can stand still is because no one cares. First of all, we need to find out why high-end hotels seem to be neglected.

In fact, this truth is not so difficult to understand. First, ordinary people will not wander around high-end hotels if they have nothing to do, because they know that it is a place they can't afford. Secondly, high-end hotels are generally in remote places, so no one will go if there is nothing. Finally, the entrance decoration of high-end hotels is so luxurious that it is difficult to give people signs of coming and going.

So how do high-end hotels make a profit?

1, there is no shortage of guests in high-end hotels.

I used to be the assistant to the general manager. The general manager stays in a high-end hotel every time he goes on a business trip, and the price is above 600. Every time I decide on a business trip time, I will call the hotel to book a room 1-2 days in advance, on the one hand, to ensure that the leader has a place to live, on the other hand, to ensure that I can book this hotel.

Don't believe that if you don't book a high-end hotel that day, there is often no room for you.

The customer base of high-end hotels is very fixed. Successful people with financial ability and middle and senior managers of enterprises are loyal customers of these hotels. The former pays for itself, while the latter is reimbursed by the company. There are also expensive guests or leaders, and the choice of reception and check-in is also these high-end hotels.

So there is no shortage of guests in high-end hotels. On the contrary, the quality of these guests is relatively high, and what they pursue is only the good check-in experience and service of high-end hotels.

There is another situation. In order to protect their privacy, some guests prefer those remote high-end hotels, such as star-rated hotels. You should understand.

2. The main business of high-end hotels is diversified.

The biggest difference between high-end hotels and ordinary hotels is that there are many main businesses, not just living to make money. In addition to the accommodation business, the following business is also the main force for them to make money.

catering industry

At present, the most enthusiastic and profitable business of the hotel is to undertake various banquets, such as wedding banquets, housewarming banquets, celebration banquets, thank-you banquets and so on.

Banquet business is the business with the lowest cost and the highest profit. The price of a table of ordinary dishes is around 1000, the better one is 2000, and the more expensive one will not be mentioned, but no matter what your price is, the cost will not exceed 300, and this profit margin is very huge.

In addition to catering, catering can also make money, that is, venue rental fees, especially weddings. The banquet hall of a high-end hotel is graded. If you want a banquet hall with a better scene, you have to pay for it. The rental fee is pure profit, and the price is generally 3000.

Moreover, if a banquet is held, there will be many guests and vehicles, and ordinary small hotels are simply unable to host large banquets. At this time, the advantage of high-end hotels is that they are remote and have few people.

Conference hall business

Maybe someone will ask, do I have to go to the hotel for the meeting? What I want to say is, yes, the meeting is also going to the hotel, but this meeting is not a small meeting held within our company.

Many of our large group enterprises hold regular national or regional meetings every year. At this time, colleagues from all over the country will get together. Obviously, there is no such big place in the company. At this time, we need to rent a conference hall in the hotel. The price of the conference hall is not cheap. It can accommodate 100 people, and the lowest price is 5000 yuan.

For convenience, these people who come to the meeting will be arranged to stay in this hotel in a unified way, so is the accommodation business a supplement?

In addition to the conferences we mentioned, any high-sounding conferences such as academic exchanges, product launches and press conferences will rent conference halls or multi-function halls in high-end hotels, and the income will often be more objective.

Even if we ordinary people haven't been exposed to those tall meetings, the company's annual meeting should be attended frequently. In fact, the annual meeting of the company is very similar to the banquet, with catering and venue rental, all held in high-end hotels.

catering industry

Unexpectedly, the hotel also joined the catering industry. In fact, the hotel catering business began to be taken seriously after the outbreak.

Our company is the kind of company that usually receives more guests. Generally, you will choose to receive guests in high-end hotels for the convenience of leaders. Secondly, it doesn't matter whether the hotel environment is good or not, but the environment is the most important.

Before the outbreak, the hotel's catering business was scattered in addition to banquets and conference meals, and there was also a catering income from the guests who stayed.

Besides breakfast, high-end hotels also serve Chinese food and dinner, which are expensive. I once stayed in a hotel in Wuzhizhou, Sanya, and ordered two dishes for dinner, a green vegetable and a bowl of soup, which cost hundreds of dollars.

But now I find that in addition to the traditional catering business, major high-end hotels have also launched high-end seafood buffet catering services.

The time period of this business is 14: 00- 9: 30 pm. The hotel will use the place where customers have breakfast in the morning as a seafood cafeteria. The price is slightly higher than that outside, but there are many guests, all of whom are concentrated in the evening meal, which has little effect on the guests who stay.

In fact, this has somewhat damaged the image of high-end hotels, but in the past two years, due to the epidemic, fewer people have gone out, and various large-scale meetings and centralized business trips have not been arranged, which has affected the traditional business of high-end hotels. This seafood buffet catering business is also an important source of income, which improves the visibility and reputation of the hotel.

3. The cost of high-end hotels is low.

Whether an enterprise makes money or not depends on its cost. The cost of high-end hotels is actually very low. Why?

Remember, all real high-end hotels don't have such a big cost as rent, because high-end hotels are opened by bosses themselves, and they build their own houses and hotels. Moreover, because of their remote location, there are few high-end hotels in downtown areas, so the land price is not high.

The cost of the hotel is mainly in the early stage. As long as the hotel is completed, it is basically waiting to collect rent to make money. The biggest cost in the later period is labor, followed by equipment maintenance. However, the salary of most employees in the hotel is not high, because the food, shelter and equipment are not maintained regularly, but regularly.

The environment of high-end hotels is holistic. Besides the internal environment of the hotel, the external greening is also a part, all of which have been carefully planned. Therefore, some enterprises need green space for group construction, and they will also rent it in high-end hotels. The rental fee of green space is more expensive, starting from 5000 yuan directly. This kind of rental service will bring other business to the hotel.

After reading it, you will find that the original high-end hotel is still very different from what we expected, not so out of touch, not so neglected, and the customer base is stable, and the main business is diverse, so we are not worried about making money at all.

If you think about it carefully, it is not difficult to find that although the business of high-end hotels is diverse, it is interlocking. For example, renting the conference hall will bring tourists, and accepting banquets will bring popularity and increase the flow of people. It is these interlocking business concepts that make high-end hotels expensive but stand firm.

Nobody cares? Just go and see their buffet at 6 o'clock. Especially for five-star hotels, thanks to the high prices of shopping malls, the prices of five-star hotels are not so outrageous, and there is a better environment and experience. There is also eternal business, wedding banquet consumption, and high-end hotels are not worried at all. And life is getting better and better.

A: Some high-end hotels and guesthouses are state-owned enterprises, government guest houses and sanatoriums. Some are pre-invested by local bosses.

With the saturation of the market, some high-end state-owned hotels are in a state of perennial losses, because the system does not adapt to market competition, the personnel performance is poor, the hardware is outdated and the service is poor. However, because the property is owned by the enterprise, the location is good, and there are many reception businesses within the enterprise, even if the loss is borne by the main business.

Some hotels invested by private owners are all local investments, and the prices are not high when investing. The rent of the property they buy will not go up every year. In addition, with the appreciation of real estate, it is not so important for hotels to make money.

Let me explain some previous experiences and information. First of all, we should know that more than 75% stay for more than one month, and most hotels are operating at full capacity. Most of them operate in direct proportion when the occupancy rate exceeds 20%. Now this situation may change, and at the same time, the hotel operation mode and the market and positioning it faces will be adjusted higher or lower. What I'm talking about is that the ultra-high-end hotel itself has a narrow tourist base, but there will be plans at the beginning of construction. At least his customers have a bottom line in maintaining the lowest operating state, otherwise the hotel will transform or adjust the proportion of internal revenue departments under unexpected pressure as an action to increase income and reduce burden.

Hotel is actually a long-term value enterprise. He doesn't judge whether to make money according to the income surplus of two or three years. You know, when the hotel first opens, there will be a hot period for several years. As the saying goes, the new pit still smells good for three days. Therefore, if a hotel investigates the surrounding area and finds out the city at the early stage of construction, there is no problem, as long as its hardware meets the design. Once invested, this project is a silent asset, and its recovery cycle mainly depends on the operation team. If the market has not changed, all expectations are in line with the design at the initial stage of construction, and ultra-luxury hotels are in a relatively stable state while maintaining the occupancy rate of 30% to 40%. Because this kind of hotel needs quiet and enough space to make guests feel private and luxurious, there is a gap between the dining table and chairs and the people in the lobby. There are also room changes, reservation and upgrade guests staying in the room, or keeping the room quiet and keeping the guests' private habits empty ... and so on, all of which need twenty or thirty vacancies. However, this hotel itself will not build too many rooms, so such a prerequisite will cause him to step into the open space facing the society first, especially the lobby, which makes people feel that there are very few people.

A friend of mine is a professional hotel manager. I have also discussed this issue with her at ordinary times. Let me share with you what I have learned.

First, hotel investment is large.

The renovation of the hotel costs a lot. For the hotel managed by my friend, it is a four-star standard, room 168. At that time, the decoration cost was about 40 million.

Second, the hotel's profit is low.

Hotels are all one-time investments, and the later expenses are mainly staff salaries and utilities. The hotel managed by my friend has an average annual occupancy rate of about 60%, an average unit price of about 250, an annual water and electricity fee of 3 million, an annual employee salary of 6.5438+0 million and an annual profit of 4 million. It looks very profitable, but hotels are usually renovated once every ten to fifteen years, and the money earned is used for decoration. If you still need to pay the rent, it is basically a loss.

Since the investment is large and the profit is low, why can the hotel still stand?

My professional manager friend gave me the answer, and the boss earned the value-added part of the property. Take my friend's liquor store as an example. The hotel was built by the developer and used his own property. It was built while building a house. When the hotel was first built, it was estimated to be 200 million. Developers can borrow 1 more than 100 million yuan from banks. Now hotels can evaluate 500 million yuan, and developers can borrow 300 million yuan from banks. Therefore, as long as the hotel does not lose money or make a slight profit, developers will earn a lot of money through property appreciation. So you see, high-end hotels are basically self-owned, which is why high-end hotels don't charge rent.

1, high-end hotels don't look crowded, but that doesn't mean nobody cares. Everyone has different levels of life and different circles. How do you know what others are doing?

2. High-end hotels are very expensive and the profits are very high. Generally speaking, if the occupancy rate reaches 20% to 30%, there will be a certain profit. If all the high-end hotels are full, their services are simply too busy.

3. The customers of high-end hotels are mainly the annual meeting of large groups and the group consumption of major companies.

Holding various conferences will bring huge profits to high-end hotels.

And those big stars are also consumers of high-end hotels.

4. The location of high-end hotels will generate a lot of added value, and the land price around high-end hotels will rise. After the investment in high-end hotels, the land price will also appreciate rapidly, which will bring rich returns to the boss.

5. Invest in building a five-star luxury hotel, through which investors can get loans from banks. These are the boss's financing methods.

7. The big boss is keen on building high-end hotels. With these hotels, they will have more financing channels and generate more added value through the construction of high-end hotels.

8. The investment in the construction of a five-star hotel is a long-term investment project with a high investment amount and a narrow target customer group, which is not a short-term high-return project.

Building a high-end hotel is not only because it is less profitable to run a hotel. The world of the rich is not that simple.