What are the steps to build a hotel?

Here are my bullet answers in regard to a corporate hotel. In addition, I suppose that you have enough money available.

Find a location that is close to: the airport, public transportation, a taxi stand, an exhibition center, the city center, a highway, a festival hall, a grocery store, a mall, a gas station, restaurants, bars and a gym.

Inform the landlord about your interest in purchasing the property. There is no need to tell all of your plans to the landlord. Sometimes landlords just have a sign at their property that says “For Sale” so that they obtain a great idea and realize it by themselves.

If the landlord is willing to sell, ask the city department / construction supervision department if you are allowed to build a hotel on the landlord’s property.

Even before you own the right property, you can contact architects that are familiar with constructing a business hotel. Have a close look at the last hotels they built. If these hotels are close by, then visit them in person. Going through the hotel’s website is not enough to get a feeling of the atmosphere, the design and the whole ambient.

You need to have done a lot of research when you get together with your architects. Let your architects know how many rooms you want to have. Remember the main product that you are selling is a room per night. I suggest to have more than 25 rooms available if you want to sell one for $70-95 per night. 50-60 rooms would be awesome. Below 20 rooms is frustrating and too risky. The effort you invest in managing 10, 15, 20, 25 or up to 50 or 60 rooms is more or less the same. Once you see how beautiful it is to have a lovely hotel, you will want to build another one. Therefore, start with a hotel that has close to 50-60 rooms. Then it will be much easier for you to have enough money to buy your next property.

As soon as your architect has all the development plans, concepts, specifications, etc., you will be confronted with choosing a construction company. You will receive many different offers from construction companies. Do not focus only on the cheapest one. Take your time to look at them one by one. Call the person who made the offer and find out how competent the company is. You need to research these companies. Ideally, you can choose the construction company that your architect works with. By applying this strategy you are putting more pressure on the architect to make sure that everything is going to work out fine. Your architect will recommend the construction company they usually work with, and so you can always emphasize how much trust you put in your architect’s recommendation.

There are prime contractor companies that want to offer you everything. From the first brick to (…). In my opinion, you should choose, or at least contact different companies to receive different ideas for your hotel. For instance, contact a company for your interior design, telephone-system, key-system and your Property Management System. The more ideas you obtain the better your choice will be.

Let’s say your hotel is built and all of the following points are implemented:

PMS-System

OTA-Connection

Channel-Manager

At the reception:

Download my complete PDF here: How to be certain that your hotel is ready to welcome your first guests

Your telephone-system is set up

Your Wi-Fi / Internet / TV is working

The keycards are functioning

LEDs are used

Video monitoring

The rooms:

All rooms are fully furnished and decorated
Paintings
Flowers (artificial)
Curtains / darkening curtains
Suitcase rack
Closet with hangers
Ironing board (not a must)
Iron (not a must)
Safe
Non-Smoking sign
Armchair
Chair
Small bin

On the desk you should have:

Pen
Notepad
Hotel Info-Map
TV-Control
Price-list of your minibar

For the bed:

Two pillows on a single bed and four pillows on a double bed

One eye-catching small pillow (maybe)
Blanket(s)
Mattress protector
Maybe even a bedspread
Reading lamp

In the bathroom:

– Space for a cosmetic bag
Bath towel
Hand towel
Bath mat
Towel holders
Hair dryer
Cosmetic mirror
Cosmetic tissues
Toilet paper
Liquid soap
Cosmetic set
Small bin

If you have a pantry kitchen (recommended to obtain more long stays):
Sink
Hot plate
Pan
Pot
Electric kettle
Cutlery
Plates
Cups
Coffee powder
Cappuccino powder
Sugar
Coffee milk
Refrigerator – beverages
Sponge
Cleaning soap

Make sure that all the items that make a room complete are easy to clean. For instance, use a vinyl-floor, common tiles, robust furniture, curtains you can wash by yourself and so on. Download my PDF “How to clean a room” here:

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