• Serdar Kabul

Starting a Hotel Business for Beginners

Hotels are a profitable business to start if you know what to do. There are more tourists heading to more locations in the world than ever before. Hence, the need for hotels has never been bigger than it is now. Since we are one of the most attractive tourist destinations, New Zealand is a perfect place for hotel businesses. However, you can’t just dive in to the hotel business without a few important pointers first.


You need to find a good location to build or buy an already constructed building for your hotel. If you want to build something downscale or economical, with the basic amenities, the best choice is to not do it at all. It’s very hard to get a good return on a newly constructed building, especially if you’re short on funds.

You can get great deals at economy property and charge reasonable rates for stays. If you want to go for something a little more highbrow, you should know that you need to have some great management experience, so it’s better to search for that talent and not go it alone.

Remember, it’s always a better choice to ask for help rather than to do it yourself. Choosing locations also needs to take in to account where your target market comes from. You can locate a good spot within the city or you can locate a spot in the outskirts where people go to get away.


You should also look at the competition and set your hotel stay rates accordingly. See where you can reduce prices and where you can raise them. Also find out what kind of packages other hotels provide and set yours accordingly. Also, you need to check some websites and apps which provide cheap options for accommodation such as Airbnb, etc.


If you want to experiment with some designs and luxury rugs, you should go ahead, but only if your target market warrants it. The ambiance of your hotel will attract customers and make them want to stay. You should be wary of spending too much on something superficial or what you don’t have at all.


This is something that matters in every business but is detrimental to this business in particular. Service staff and customer service quality is noted by almost every customer that frequents a business. If your bellhops, waiters or attendants are polite and know how to get the job done, they will always leave a good impression. If they don’t do their jobs diligently, then customers will notice and won’t return. Repeat customers are an extremely important part of your long term growth, so anything that can cause them to be a repeat customer should be right on the mark.

Remember, the hiring process you use should be rigorous enough so that you don’t let a bad apple slip through. Incompetence can be coached out, but impoliteness and laziness can’t.

Target Market

Here is where you decide which demographic you’re trying to serve. If it’s elderly tourists, you should tailor your experience to their liking, if it’s hitch hiking students or backpacking tourists, then their experience should be a minimalist and bare bones one.

You should always aim for comfort, but you should figure out which clientele you want to serve according to their tastes and their income level.

Hotels are a very hard business to run, you have to look at a thousand different things and ensure that the customer’s stay is pleasant. It’s like operating a home with constantly rotating tenants. However, there’s nothing that knowledge and hard work can’t solve.

Serdar Kabul

#Business #Hotel #Motel #Entreprenuer #Accomodation