Prospective hotel must own or purchase a property that's appropriate for housing people on a temporary basis in an area that allows hotels. Proper upkeep of the hotel and its grounds is also essential, as certain areas may require regular inspections.Continue Reading
The easiest way to own a hotel is to purchase a used one, although it's important to know why the building was sold. Large buildings can also be converted into hotels if zoning rules allow, but the cost can be high. Similarly, it's possible to construct a new hotel with sufficient capital.
Owning a hotel also requires learning about local regulations. Many areas have special taxes for hotels that are used to generate funding from individuals from other regions. Sales taxes may also apply. Hotels often have different building code requirements than other structures. Fire escapes, for example, likely need to be installed, and information about accessing these escapes might have to be posted in each room.
Running a hotel also requires finding potential customers and pricing rooms appropriately. While a roadside sign might be enough to attract businesses, many travelers book rooms online. Hotels tend to do better in areas that attract visitors, but competition is also high in these areas. Hotels often operate at a loss during part of the year, so those investing need to ensure they can pay the bills when it's not tourist season.Learn more about Careers