The Australian economy relies on the mighty tourism dollar, as people flock from far and wide to sample the sights, sounds and quality of life. For those who already live in this vast country, this presents a myriad of opportunities and you may be considering some of these options as you plan your future. Perhaps you're thinking about branching out into tourism as you need a significant career change or have money to invest in a new project. Either way, you may fancy the idea of becoming a hotelier, even though you have no direct experience. While you have a lot of enthusiasm, where should you start?
Location
There are thousands of hotels in your state, many of which are for sale at any one time and no shortage of opportunities. However, as in the world of real estate in general, the most important thing is the location. Your choice of location will dictate how you approach any purchase. You will need to draw up a comprehensive business plan and this will look entirely different if you plan to purchase something in the centre of Sydney versus a rural property in the bush.
Your Target Clientele
There are many different sectors to consider as well. Some hotels are purely for leisure guests, while others will focus on seminars and meetings. Others are best known for an anchor restaurant, while some may owe their success to a spa or golf course. The type of people who visit each of these properties will be very diverse and require a different approach to marketing and operations.
Your Financial Goals
While you may only be interested in hotels that have a good track record and a healthy set of accounts right now, you must make short, medium and long-term projections for further growth. This will be very important if you're trying to raise capital from any source.
You will need to complete this plan before you reach out to venture capitalists or lenders, as you should get a decision in principle from them before you approach any sellers. If you can show that you are serious and have the resources to move forward, the buyer will be more interested in talking seriously with you.
As you begin work on this plan you will need to think about other revenue streams that could help to safeguard the future of your business. It's not always easy to increase the yield per individual room, but you may be able to expand an existing event centre so that you attract weddings or corporations. In the industry, this is where the profit lies, and it should be a significant part of your focus.
Once you have a vision and can narrow down your field of search, talk with hotel brokers to uncover some opportunities.
Share11 July 2018
If you are planning a holiday or a business trip, you will need to find a hotel. However, staying in any old hotel could really ruin your trip. For example, if the noise levels are too high, you may not be able to get a good night of sleep. When looking for your dream hotel, it pays to know what to look out for. I didn't have a clue about how to find a dream hotel. However, all of that changed when I was introduced to a man who books hotels for VIPs. He gave me lots of useful information which I would like to share with you.