MAdvice 1: To launch and run a successful hotel business, you must start with your unique Hotel Concept
All too often, hoteliers and hospitality brand owners approach MAp for support only AFTER the (disappointing) launch of their new hotel. The reasons may vary: They don’t receive recognition in the market, they have difficulty attracting (the right) guests, they invest heavily in sales and communication but without the results they expect… the list goes on.
What 95% of these new hotel business owners have in common: they started the project with the wrong first step (have you heard the saying, “show me how your project starts, and I will tell you how it will end?”). When starting their hotel business, they look to architects and interior designers for plans, or go to design agencies for logos and hotel branding.
But what should be the first step in how to start a hotel? Developing your unique hotel concept! Your hotel's concept is the cornerstone upon which your sustainable hotel business will thrive. It's the essence of your brand, a reflection of your vision, and the blueprint for your hotel's future.
Investing the proper time, money and resources into developing a hotel concept will have the biggest return on your investment in the long-run.
So how do you create a hotel concept? Start with WHAT you would like to create - and answer the following questions. For what do you want to be known? For whom do you want to exist? What is your dream – your wish for the future? What kind of guests do you want to welcome in your hotel? What is your niche? What is your differentiator? What are you going to do to make this Planet a better place for all? Only when you know what your hotel stands for, can you start with the right architect or design agency, align them on your hotel concept, and bring it to life together.
If you wish to learn more about how to create a hotel concept, HERE’s our full blog post.
MAdvice 2: Get your basics right and plan for the long-run
At MAp, we work with hoteliers who have been in the hospitality industry for decades, and those who are entering the hospitality industry for the first time after finding success in other areas.
Those hotel owners who are successful and more profitable in the long run, get their basics right straight from the beginning, planning for sustainable and long-term success vs. fast return of investment.
It’s not difficult to find a hotel business plan template online somewhere that covers the most important facts. But from our experience, when putting your financial plan together, you should consider the following basics:
- Most new hotel projects open later than expected. So, include various opening phases (from soft to official launch) and do not rely on cashflow generated during the first months of opening.
- Calculate enough budget for the pre-opening phase: for pre-opening sales and communication, for hiring and training employees, for partnership and collaboration fees, etc. You only have one chance to make a first impression. However, all too often funds are not planned properly, and so in this most important phase, you’re not able to stand out in the market.
- Pay yourself and your People well. From our experience working with family-run properties, we see that family members’ salaries are not calculated properly. This means that, if you were to look at the numbers closely, your business wouldn’t be a profitable one. Therefore, if you intend to run the hotel on your own: calculate your manager salary, as well as the salaries of all the family members involved in the business. If you intend to hand over the running of the hotel to a hotel manager, calculate that salary in.
Do the numbers add up? Does this new hotel project still make sense to you? Then #onwards to our last MAdvice
MAdvice 3: Successful hospitality projects rely on strong, long-term partners
In a world where things change overnight, you need strong, long-term partners whom you can trust and rely on to start your sustainable hotel business. One wrong partner can cost you time, money and nerves. Looking at your unique hotel concept: Who best align with your concept and can bring it to life? Which partners have the same values and ambitions as you? With whom do your feel comfortable talking and spending time (you don’t do business with companies, you always do business with People)? Who can move your projects to the next level vs. just execute them? Make sure to build a diverse team, because as recent studies show, diverse teams drive profit too!
Bonus MAdvice: Put sustainability at the centre of your new hotel business
We are firm believers that in order to succeed in the future, your hotel must be a sustainable hotel. The hospitality industry is evolving, and in this era of conscious consumerism, sustainability is no longer just a buzzword but a crucial aspect of any successful hotel business! Sustainable hotels are not only conscious stewards of our Planet and People, they also outperform their counterparts in numerous ways.
Sustainable hotels:
- Appeal to a growing demographic of eco-conscious travellers
- Enjoy cost savings through energy efficiency and waste reduction, contributing to improved financial performance
- Better navigate turbulent times, like climate events and supply chain disruptions
- Attract a loyal and expanding customer base
- Benefit from enhanced brand reputation
- Foster positive relationships with their surrounding communities, contributing to a thriving destination
In essence, sustainability is not just an ethical choice; it's a savvy business decision that drives your hotel’s success.
But how should you start a sustainable hotel?
Integrate MAp’s 4Ps framework – Purpose, People, Planet and Profit – into your hotel concept, making sustainability a central piece for your hotel brand, your products + services, and your sales + marketing. To learn how, head HERE.
Next, search for partners that excel in the field of sustainability, holding sustainability certifications and having the right network in place to make your hotel stand out in the market and create the most impact for People and Planet.
Starting a sustainable hotel business is a journey that requires careful planning, unwavering commitment, and a forward-looking perspective. By starting with a distinct hotel concept, ensuring your basics are rock-solid, and nurturing strong, long-term partnerships, you can set your sustainable hotel on the path to success.
Hotel Concept Development
All of the hotel concepts we create at MAp are sustainable hotel concepts. That means we put sustainability at the heart of the hotel concept and weave it into all of the elements of the hotel concept, using our very own framework for sustainability, titled the 4 Ps of Sustainability (Purpose, People, Planet, Profit). Thus, sustainability becomes a central piece for your hotel brand, your products + services, and your sales + marketing.
ke time for prosecco