If you have a significant amount of capital, the hospitality industry is a good place to invest. While buying a hotel is similar to buying other types of real estate, it is advisable to use Hotelberatung services to ensure you are making a smart purchase.

Things to consider before buying

The first thing you need to decide is whether you want to buy a franchise hotel or an independent hotel. While both have pros and cons, hotel chains offer the benefit of global recognition. Familiarity is important to consumers, and those who travel frequently are often loyal to particular accommodation chains. On the other hand, if consumers don’t have a positive perception of a hotel franchise, it can be difficult to overcome. Ask your hotel consulting firm to do some market research before you decide to make a purchase.

Now that you’ve narrowed down your real estate choices, it’s time to focus on financial planning. Prepare a detailed business plan and go through it with your hotel advisor before attempting to get a business loan, as banks are more likely to lend to people with a sound business strategy. Ask your hotel agent or advisor for help if you are unsure how to go about creating a business plan or securing financial backing.

In addition to obtaining financing and deciding on a property type, there are a few other things to consider before making an offer.

• Gain experience in the hospitality industry. This can mean a variety of things, from taking an online course to meeting other hotel owners. The more you know about the hospitality industry, the better your chances of success.
• Think carefully about the location of the hotel. Are you looking for a highly frequented property near the airport? Or a refuge in the mountains? If you choose to run the hotel yourself, it’s also important to choose a location that you like—and that’s close to home and key amenities.
• Consider your target audience. What demographic is attracted to your hotel? Your advertising and equipment should be aimed at this target group, regardless of whether it is young families with children, pensioners, business travelers or conference visitors.
• Decide how to differentiate your property from the competition. There are often hundreds of hotels and accommodation options in any given location, so standing out is key. Before you make a purchase, develop a business strategy that includes things like budget-friendly pricing, exceptional customer service, world-class amenities, and on-site dining services.

Why should you use hotel consulting services?

Even if you do your due diligence before purchasing a hotel, hospitality purchases are often complex. Whether you are interested in buying a timeshare condo, resort or turnkey hotel, a hotel consulting firm can ensure your property is in good condition and your financial interests are protected.

Jessica Leebelt is a web marketing professional from Denver, Colorado. She writes press releases and informational articles for a variety of clients including Hospitality Real Estate Counselors (HREC), leaders in the hospitality Hotelberatung and brokerage industry.