Running a Hotel: Don’t Neglect the Numbers!

Running a hotel is guaranteed to be hard work at first, but once you’ve made a success of it you can focus on opening up in other areas. Many people who have their own hotels are millionaires; like Steve Wynn, who is the owner of the Bellagio in Las Vegas. However, Steve Wynn didn’t get rich by chance. Oh no; he planned it all. He had a real business plan, and knew exactly what he expected to spend in the process of starting his hotel. This is what you’ll need to do too, if you want to be a success. Now, I’m not going to sit here and write out the numbers for you. That would be a waste of my own precious time. However, I am going to give you an idea of the things you’ll need money for, so you can save up a big enough cash cushion to get your dream off the ground. Let’s get started:

 

 

 

Premises

 

The first thing you need for your hotel is appropriate premises. Choose somewhere suitable that you can envision being the kind of hotel you want to run. Alternatively, you could build your own hotel, but you’ll need a whole lot of money behind you in this case, as well as planning permission and other legal requirements.

 

The Initial Costs

 

Once you have your premises in place, you need to take care of the initial costs. This will include things such as insurance, beds, linen, a kitchen, cutlery, and other kitchen equipment. Depending on the kind of hotel you’d like to run, you may also want to purchase TV’s, and other electrical equipment to entertain your guests.

 

Kitting Out Your Hotel

 

The initial costs that come with your hotel includes kitting it out. This means investing in wallpapers, paints, floors, carpets, marble, and materials for transforming your hotel into somewhere your target market would love to stay. I’m guessing you won’t be doing any of this yourself, so you’ll need to hire a professional company to do it all for you. The amount you’ll pay depends on how long it is going to take and how much the materials cost.

 

Staff

 

Now you need to get your staff sorted out. You’ll need to hire trustworthy staff, and set a rate of pay for them that adheres to legal requirements and will keep them happy. You’ll need to make sure you can pay the staff, even if business is going slow. You’ll also need to buy their uniforms, and perhaps hire a cleaning service to come and collect the uniforms for washing, like http://www.laundryexpressperth.com.au/.

 

Ongoing Costs

 

Now you need to worry about the ongoing costs of running a hotel. This includes bills, repairs, and maintenance.

 

What Will You Charge?

 

Taking all of these things into account, you’ll need to work out what you’re going to charge your guests to stay at your hotel. This should reflect the quality of the hotel and it’s furnishings, as well as how much the hotel is going to cost to run. Try to remain competitive with similar hotels in the area.
Above all, make sure you have enough cash behind you to keep things going when business is slow. Good luck!

Image taken from Flickr

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