Should you buy a full service hotel?
December 29, 2019|Hotel Marketing
We have been getting a lot of questions lately from clients who already have a couple of independent limited-service hotels and are now looking at buying their first full-service hotel with banquet space, a cocktail lounge, and a restaurant. At first glance, it seems like a great opportunity.
The first question we usually ask is, who would be running the hotel? Running a limited-service hotel is learnable and does not require at least twenty years of experience. A full-service hotel, on the other hand, is a different ball game, especially when it comes to its large staff, luxurious facilities, and all the bells and whistles that go with it.
If you only have experience in running a limited-service hotel, we do not recommend that you buy a full-service hotel to gain that experience. You cannot just test $50 Million and see if you can make it. Running a full-service hotel is a lot more challenging versus running a limited-service hotel, which offers only a basic room and a little breakfast.
If you only have experience in running a limited-service hotel, but you truly intend to buy a full-service hotel and run it yourself, we certainly recommend that you hire a marketing company like us or, if you have the budget, a general manager and experienced restaurant staff. This might spell the difference between a $50 Million opportunity and a $50 Million mistake.
If we might be of service to do market research for a property you might be considering for potential opportunities, you are invited to reach out to us.
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