Running a hotel can lead to big potential profits. If you get it right you will have a stream of paying guests eager to book up your rooms. Investing in a hotel franchise takes a lot of work, both before you open your doors and while you are up and running.
Here is what you need to think about when looking to get into hotel business.
Things to consider before investing in a hotel franchise
Owning a hotel is not a simple investment. Operating a high volume, high turnover like a successful hotel requires a high degree of organisation and attention to detail. Your guests will be looking for an experience that is easy and comforting, but behind the scenes this means a lot of work. Before you commit your money to a hotel franchise, you should consider the following points.
What type of hotel are you interested in?
Not all hotels are the same, and the differences don’t just lie in the size of rooms or the quality of the materials used. Likewise, different kinds of guests will be looking for varying kinds of experience. Are you more interested in a budget style experience that offers a more stripped back service that allows travelling business people a place to sleep and get ready for appointments? Or, is your aim to provide a more high-end and full experience full of good food, exquisite services and the kind of experiences that guests won’t find anywhere else? There is a huge difference between these two poles, and a whole range of different options in-between.
What is your market?
Your hotel is going to need to serve a specific market. If there isn’t a steady stream of people looking to stay, your new operation won’t be in business for very long. If there is a new business park being built, you could look to cater for people travelling to the area for meetings, for example. Again, this depends on who you are targeting – if you are mainly looking to attract tourists, you will need to be in a location that is really easy to find and doesn’t make it too difficult for guests to see the sights.
What level of service will you be providing?
Different levels of service will mean different levels of cost, work and expectations from your guests. You need to be sure that you are clear on what you will be promising so you that guests don’t walk into your express budget city hotel expecting a five-star experience. Running a hotel involves a lot of juggling, and you need to be aware of what your strengths and weaknesses are. You may have a lot of experience in dealing with clients, but next to none when it comes to operating a high-volume all-day kitchen. Knowing where your gaps are will help you make sure you get the right people on board and ensure that your new hotel operates to the level of quality that you envisage.
Hotels for sale UK
If you’re looking to get into the hotel industry, a franchise could be the opportunity you’re looking for. With an already-established business model to follow, you can feel confident in the success of your business. You are also likely to have support from the head office, which can help smooth over any issues you have along the way.
Let’s see what hotel franchise opportunities are currently available in the UK.
One of the world’s most successful hotel franchises, Travelodge has been offering budget-friendly rooms to holiday makers, business travellers and those after a weekend away since 1985. Since then, it has taken the industry by storm, expanding across the UK and even venturing overseas. There are currently over 500 hotels in the UK and 50 abroad, and this number is set to increase.
Focusing on treading the line between offering value for money and a comfortable space, the hotels offer spacious rooms, comfortable beds and a diverse range of food. They’re family-friendly and business-friendly, making the offering well-rounded. This is part of the secret to its success.
Another feature that sets Travelodge apart from its competitors is its environmental focus. With internal programmes designed to save energy and encourage recycling, it has taped into this growing trend early.
As the World’s Leading Budget Hotel Brand for 2010, 2011 and 2012, it has a strong track record. The franchise welcomes new business owners who have a keen eye for detail, an astute business awareness and a deep understanding of customer service.
At the other end of the spectrum is Hemera Holidays – a luxury travel brand offering deluxe lodges, cabins and holiday homes. It is a relatively new business having started out in 2014, but it is already enjoying plenty of success with 40 operating offices established so far.
Boasting over 165,000 rental properties generating £2bn of revenue, it has a lot to offer as a franchise, and the franchisor is constantly on the lookout for more aspiring business owners who want to help grow its outreach. There are two options for franchisees: a licence model and a full franchise model, offering different levels of involvement and support.
So what do franchisees need to have? Along with business acumen, you also need a dedicated attitude towards customer service. Not only will you need to be happy to help holiday makers, but you’ll also work closely with the property owners to build strong relationships and grow the network. This really is an exciting opportunity that is set for big things.
Hotels for sale Scotland
Point Franchise doesn’t currently have any hotel franchise in Scotland specifically. If this is where you have your business sights set, Travelodge or Hemera Holidays may be able to suggest opportunities. Ever looking for ways to grow, you could help them realise their business ambitions. For example, Wendy who owns Hemera Holidays is currently working on the next phase of her expansion. She may welcome the opportunity to expand in Scotland.
The Editorial Team, Point Franchise ©