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9 steps to create a hotel business

9 steps to create a hotel business

As with any business, its success is often subject to how well the previous work was done in its constitution, planning and development. In order to create your own hotel, different variables must be taken into account. Although the process may vary depending on the country, whether the hotel will be constituted under an association, […]

As with any business, its success is often subject to how well the previous work was done in its constitution, planning and development. In order to create your own hotel, different variables must be taken into account.

Although the process may vary depending on the country, whether the hotel will be constituted under an association, under a natural person, etc. These are the most common steps to create a hotel company. With them, you will be able to get an idea of what is the way forward to have your own accommodation ready to operate.

 

1. Define your market

A common mistake when looking to open a hotel is to think first about the hotel and then about the market to which you will sell your accommodation. According to experts, the process should be the other way around, i.e., first define the needs of the market and then build your business around the solutions they need.

That is why the first step in creating a hotel business should be to define your market. There are many options, from families travelling with children to backpackers, luxury travellers, senior citizens or solo travellers.

2. Create the concept of your hotel with its differentiators

Once you have defined your market, it is time to establish the solutions you are going to offer to it. For example, if you have decided to focus on a market that prefers ecotourism and nature, then you can focus on creating an ecological and sustainable hotel.

From the concept of your hotel, you can work on the differentiators that will help you stand out from other hotels. Perhaps building your hotel with recycled materials, using clean energy, recycling water or growing your own food.

 

3. Design your brand

Once you have a clear idea of who you are targeting and what your hotel concept will be, the next step is to work on your brand. In fact, this is one of the most important steps to create a hotel company, since depending on the brand will be the positioning it can achieve in the minds of travellers.

Working on branding involves finding the best name for your hotel, designing the logo and creating the corporate image. Having a strong brand will help you gain recognition and relevance in the market which translates into customers.

4. Develop your business plan

Another step in creating a hotel business that you cannot skip is the creation of a business plan. Here you will not only establish what the business model of your hotel will be, that is, how you will generate money, but you will also define concepts such as expenses, costs, human resources, financial projections, sales, etc.

Basically, the business plan is the document that will bring together everything about your hotel. It will contain the key strategies and processes for its operation. In addition, the business plan is often an important requirement when looking for financing or investment.

 

5. Establish your company legally

To ensure the legality and operability of your business, it is important that you set up your company legally. This will depend on the country you are in, for example, trading companies in Spain are not set up in exactly the same way as in other countries.

The process you choose will depend on the type of association you choose. Having your company legally incorporated will also help you when you are looking for financing or investment. This is because a legally constituted company gives you more security and confidence.

9 pasos para crear un hotel

6. Licensing and permitting procedures

In addition to incorporating your company, you must also take the necessary steps to obtain the necessary licenses and permits to operate. Remember that not having these documents can lead to fines or the closure of your hotel.

As we told you in our blog post on licenses and permits, the most common procedures to carry out are:

  • Operating license.
  • Land use permit.
  • Civil protection permit.
  • Sanitary registration.

You should also take into account that additional permits are likely to be required, for example, if you have a restaurant, bar, beach area or shop. The ideal is to check the specific case of each hotel in order to comply with the regulations.

 

7. Get ready to start operations

With all the behind-the-scenes work done, the next step in setting up a hotel business is to get everything ready to start operating. This includes working directly on the hotel, either building it or refurbishing and adapting the property for use.

Once the hotel is ready, the marketing and sales department must enter the arena to generate awareness, recognition and brand positioning. This in order to attract travellers and start selling reservations and services as soon as possible.

8. Opening your hotel!

The last of the steps to create a hotel business is the most satisfying, as here you will see all your work ready to operate. However, before opening your hotel it is important to take into account some key points. For example, launching promotions that will help you gain guests quickly, even if you sacrifice a little profit.

At the beginning, it is important to bet on growth and reinvestment that will help consolidate the hotel and repair those little details or unforeseen events that will appear as you go along. In this way, you will guarantee the solidity of your hotel in the short, medium and long term.

 

9. At IHCS we help you with the steps to set up a hotel business

We know that going through each of these steps to set up a hotel business can be overwhelming. Especially when data on the number of hotels in the world and how competitive the market is puts even more pressure on you to make your hotel a success.

At IHCS we will help you through every step of the process to create a solid, profitable and strong hotel business. We will guide you and with all our experience, infrastructure and equipment, we will support you to overcome any obstacle, even the unforeseen ones. Just contact us and find out how we can help you create your own hotel business.

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