How Difficult is it to Launch a Hotel Business?

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Sometimes you think of a fantastic business idea, but then you look at the realities of starting it and your idea is shot down. It could take too much money; the market is too narrow or perhaps someone is already doing exactly what you wanted to do. It’s essential to do your research before making any big moves, whether you’re going to become a sole trader working alone, or you want to build up a business empire. One of the businesses you might have thought about starting is a hotel or another type of accommodation for travelers. But what does starting a hotel business take, and can anyone do it? Read on to find out what you need to launch a hotel, and how difficult it is to make it successful.


You can start some companies with almost nothing. All you need to begin is a desk, a phone, and an internet connection to do things such as launching a consulting business. But for other ventures, you’re going to need a lot of capital to start you off. A hotel company isn’t one that you can begin without the cash to find a property and furnish it. One option is buying an existing hotel, but many hoteliers start from scratch. Whatever you choose to do, the reality is that you can’t launch a hotel without having enough money to acquire, construct and begin running your hotel. If you don’t already have the finance, where can you get it from? Without it, you won’t be going anywhere.

Business Smarts

Of course, if you have the money but no business sense, you’re not going to get very far. You may already have a good knowledge of the hotel industry, but if you don’t it’s time to get researching. There’s a lot to think about, from the scale of your establishment to the perfect location for your service. You need to look at the different types of hotel, from low-budget to luxury, to decide which one would fare best in your chosen location. A good head for numbers will help you as you work out rates and projected profits.



Setting up a hotel isn’t as simple as buying a building, putting out bed linen and then inviting your guests in. While you can start some enterprises in a matter of minutes, a hotel business often takes years to come to fruition. Don’t expect to go from an idea to a functional hotel in a matter of months, because it’s not going to happen. Even if you acquire an existing property, you may still need time to make changes.

A Business Partner

If you’re unfamiliar with the industry, your best bet could be to find a partner who knows what they’re doing. Having someone with experience and knowledge to help you get started will make moving into the hospitality sector much smoother. If you want to learn the trade, have someone successful teach you everything they know, and you’ll have a better chance of making it.

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