Profits and risks of opening a hotel

The profits and risks of opening a hotel are as follows:

1. profit: the profit of opening a hotel mainly comes from room income, catering income, conference income and other income. In the case of good management, the profit rate of the hotel can reach 20%~30%.

2. Risks: The risks of opening a hotel mainly include investment risk, competitor risk and consumer instability risk. Opening a hotel requires a lot of money, including rent, decoration fee, franchise fee, etc. If the management is not good, it may lead to investment losses. The competition in the hotel industry is very fierce. If there are too many competitors around, it will have a negative impact on the operation of the hotel.