When undertaking a project, many variables must first be analyzed in order to ensure the best results possible. In this regard, a hotel project is no exception.
Many aspects must be taken into consideration for a hotel project to be successful, from defining the hotel concept and ascertaining the project’s viability, to finding investors and support for the grand opening. In this scenario, it is easy to become “lost” and forget to analyze one or more of these aspects, which is why we have ritten this article that covers everything that should be considered when launching a hotel project.
First, we must understand the importance of good planning throughout the project. This not only enables analyzing its conditions, characteristics and opportunities in the future, but it is also a fundamental tool for developing sustainable advantages in an increasingly innovative and competitive market.
However, a hotel project has many other objectives:
- To define the concept and philosophy of the hotel or resort.
- To analyze the market in which the project will operate in order to assess its feasibility.
- To set out the business objectives and to develop the strategies needed to achieve them.
- To develop a detailed action plan so the steps to be taken may be evaluated and tracked, and so any potential deviations that arise throughout the process may be corrected.
- To ease decision making in a variety of areas, such as marketing, managing the company internally and externally, and assigning resources.
Once this is clear, we can delve into the different areas of a hotel project.
Defining the hotel concept
Since a boutique hotel is not the same as a large hotel, and a familyfriendly resort is different from an adults-only establishment, the first step is to define the type of hotel project that will render the best results in the corresponding scenario.
This requires studying a number of aspects, such as the competitors, the investment budget, the market trends and the applicable legislation. Once this has been analyzed, we can accurately define which hotel concept will offer the highest yield, now and in the future.
Analyzing the project’s viability
Once the hotel concept has been defined, the next step is to analyze the project’s viability in the current scenario.
This begins with the general aspects and moves towards the specific details to be identified, including the risks the project may face, the actions to be taken to overcome those risks, the benefits and the potential costs.
This analysis enables us to ascertain whether a project is viable and can face the future scenarios that may arise.
No one undertakes a hotel project to lose money, so another fundamental step is to first estimate the project’s rate of return.
By analyzing a number of economic, financial and technical variables, we can define whether a project is profitable or if it will lose money. If the yield is not estimated, we risk losing time, effort and a lot of money on a project that could be disastrous.
Once we have a hotel with a defined concept and have analyzed the project’s viability and profitability, it is time to find the investors needed to make the project a reality.
When referring to investors, these can be public or private, financial institutions, banks or any other type of person or entity willing to invest in our project in exchange for a return on their investment. This last part is the most important because ensuring this yield to the greatest extent possible will make it easier to obtain the necessary funding.
Choosing a hotel management company
To make the most of any hotel project, it is important to have a company with expertise in hotel management and consultancy.
Choosing a company that adapts to you and to your needs and those of your hotel or resort is fundamental in ensuring your project optimally reaches the objectives that were set out at the beginning of the process. IHCS has the perfect service for your project and we invite you to contact us to learn more.
This is the last step. Once everything has been analyzed and locked down, it is time to make the hotel project a reality. In this stage, each step must be taken accordingly and progress must be tracked so any necessary adjustments can be made. This enables us to ensure that we ultimately create the hotel that was planned at the start of the project.
We hope this article helped you gain a better understanding of the importance of and the various elements involved in developing a hotel project. If so, then we encourage you to share it. And if you are taking the first steps in your project and are searching for a company that can carry it out, IHCS has a comprehensive project development service that will help you make your idea a reality. Contact us today!