A Guide to Private Real Estate Investors Development Hospitality Properties
One of the most interesting investment opportunities for private real estate investors in the world are hotels and other accommodation establishments. The main reason for this is that the hotel industry is becoming increasingly important as the global tourism and travel more affordable and accessible. As with any investment, there are some “best practices” that should be followed investment opportunities in the exploration of potential hospitality.
A hotel has to fit into a given slot in the existing market, because it is not so much a property as a commercial enterprise. Understanding this fact is the most important first step for the investor. This in turn requires a comprehensive understanding of the market itself, including various types of hospitality properties already in operation (the current supply) and the niches they service (the demand for accommodation). One of the most useful tools an investor may use in this step, a hotel market feasibility study by an experienced hotel consultants.
Location, Location, Location
The next step after identifying a niche market in need of a hotel property, to identify the location of the hotel is. While almost any amount to be developed in to a hotel property, the income of the property is fundamentally based on the location of the project.
Visibility: The building should be prominent and easy to find, especially by visitors from other areas who are not familiar with the locale.
Accessibility: It should be easy to obtain for the people to the hotel from the sources of demand, and the main areas of the city (airport, downtown, business district, convention center, etc.).
Environment: The location should have access to high-quality amenities such as restaurants, nightclubs and other support services afford.
At this stage of the development process, a good hotel brokers help would be very useful.
A concept for the hotel designed after the market and location are identified. In a way, the concept of the selected location is to be formed, and the market is served – for example, for a small but affluent market of young professionals on a business trip, an “edgy” or funky design with an emphasis on intimate gathering areas for personal meetings could be the focus. A critical component of the development team in this phase is an experienced hotel design team.
The selection of hotels or franchise brand is to take the next step, once the concept is clearly defined. Trademarks are the main component of the hotel’s marketing, because most of them come with a built-in customer base. In the early years of operation, as the hotel is known on the market, this will be particularly valuable. Perform the crucial step in this phase is a careful consideration of the relative strengths and weaknesses of each brand of the dozens of brands to choose from.
The determination of the most suitable hotel operator is the final step in the development of hospitality properties. While taking this step at the beginning of the development process is not a catastrophic decision, it is not the best, either. Most experienced developers agree that it is not ideal for the operator, an undue influence on the aesthetic and service aspects of the hotel. , When backing up both the brand and the funding, however, it is important to select an experienced and stable operator. The selection process should be a well thought-out because of the hundreds of professional and experienced hotel operator to be available. The project manager should ensure is that the goals of the selected operator are as closely aligned as possible with the owner / developer.
There are a lot of important steps in the hotel development and the right team of professionals on hand the chances of a successful process will increase.