How do I Become a Hotel Owner?

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  • Written By: N. Madison
  • Edited By: Jenn Walker
  • Last Modified Date: 21 November 2017
  • Copyright Protected:
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    Conjecture Corporation
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In order to become a hotel owner, an individual must usually have money to fund his venture or good enough credit to allow him to borrow start-up funds. To succeed as a hotel owner, an individual typically needs a good location, business sense, and enough guests to make the business profitable. An individual who wants to become a hotel owner does not need a college degree, but earning a degree in either hotel or business management may help to improve his chances of success.

Entering the hotel business as a hotel owner generally requires a great deal of money. An individual may choose to purchase a used hotel or have a brand-new property built to his specifications. Either way, becoming a hotel owner typically requires a large investment. Money is required not only for purchasing or building a property, but also for running the hotel until it starts to earn a profit. Expenses can include utilities, food, furnishings, payroll, licensing fees, and tax payments.

Often, an individual who wants to become a hotel owner will seek loan money to help him get started. He’ll usually need good credit and a well-thought-out business plan in order to get loan money. If an individual has bad credit, he may take on a partner with good credit or seek the help of a co-signer. Some aspiring hotel owners seek investment funds instead of or in addition to loan money. Others may liquidate bank accounts or stocks and bonds in order to help fund this business venture.

Good business sense is key to a hotel owner’s success. In preparation for owning a hotel, an individual may earn a business or hotel management degree. It may also prove beneficial to work in a hotel for a couple of years before purchasing one. This work experience may give a prospective hotel owner valuable insight into the inner workings of a hotel. It may also help him learn what it takes to market a hotel business, attract guests, and entice guests to return for repeat stays.

Once an individual is ready to become a hotel owner, he’ll have to choose whether to buy a franchise or start his own hotel brand. A franchise hotel has name recognition, which means guests may be willing to stay there simply because the hotel has a well-known name. With his own brand, however, a hotel owner can be creative and develop a hotel environment that is entirely unique. Whether he selects a franchise or develops his own brand, a prospective hotel owner should also consider location. Choosing an in-demand location can dramatically improve his chances of success.

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Animandel
Post 3

I have read about people selling hotels who offer to teach the new owners the business. Sometimes the sellers will agree to work at the hotel while the new owners learn the business. I guess they set up a contract and agree to work for a specified length of time after the sale of the hotel.

Sporkasia
Post 2

If you don't have a lot of money to invest and you want to own a hotel, a bed and breakfast might be a good way to start. I have looked into them myself. Of course, you need to choose a good location, but finding an old home in need of renovation that would be suitable for a B&B is not that difficult.

Also, you can get some of these homes at great prices and they have a lot of square footage, which is great for a B&B. A B&B may not be a hotel, but it is in the same family. And if you already have a big old house with a lot of room then even better.

Drentel
Post 1

I once considered buying a hotel with a buddy from college. He wanted to get a loan and finance a franchise. I understood where he was coming from when he said that a well-known name would advertise itself and bring in customers. However, I was afraid of taking out a big enough loan to purchase one of those hotels.

Instead, I wanted to buy a five to 10 room motel somewhere and go from there. I decided not to invest. Not that it matters now, but I still debate with myself which would have been the better choice.

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