As Australia’s tourism industry booms, many property investors are entertaining the possibility of purchasing a hotel, either managing it themselves or hiring someone to do it for them. Even those without an extensive background in hospitality are beginning to enter the industry due to how lucrative it currently is.
Considering the number of hotels for sale, Brisbane investors have no shortage of choices either. But hotels and other tourism reliant businesses have several notable facets, and understanding them is important to succeeding.
- It is very people focused – Even more so than other forms of property management, hotels require a person that is very attuned to the needs and wants of their clientele. Expectations are high, and your reputation depends equally on both customer service and quality of the accommodations.
- There are peak seasons – As with anything in tourism and hospitality, there are inevitable high and low periods. This is an integral factor when managing cash flow, bookings, and the hotel’s marketing strategies.
- You have a team – Hotel managers can’t do everything on their own, they need to build and maintain a strong team of employees. Considering how fast-paced and high pressure a hotel’s operationare, at times, a single mistake can mean a very unhappy client. From housekeeping to the front desk, it is vital that your people can work efficiently together.
- Proactivity is important – There is a great need for a preemptive approach in hotel management. As reputation is everything in the hotel industry, you need to find and solve problems before a client complains. This requires strong communication and diligence from everyone.
- Local knowledge is key – When the majority of your clients are tourists, you and the hotel staff will often find themselves having to provide recommendations. This requires everyone to have a deep understanding of the local area and the various attractions. Fortunately, this is also an excellent opportunity for creating strategic business relationships with local establishments.
Hotels can be very profitable and rewarding, and understanding these aspects will help you manage one with ease.