Why New Hotels Find It Difficult To Make Profits

Most people start a hotel property with the dreams of making huge profits. However the sad reality is that most of the hotel startups fail miserably, specially in the first few years. The first 2-5 years probably pose the greatest threat of a hotel shutting down, resulting in thousands or millions of dollars of loss for its investors.

There are many smart, intelligent people who have failed in this business. Many people who considered themselves capable, smart and intelligent ended up failing miserably. This is because there are many challenges which a hotelier has to face on regular basis. If the hotelier is unable to come up with workable solutions to these challenges, the hotel may go down under.

This does not mean hotel business is very difficult or complex. It is like any other business, it is just that the stakes are much higher because of large sums of money that is usually involved in opening up a hotel property. Many times the reasons for the failure of the hotels are totally preventable, if the owners have some kind of prior experience or foresight.

This is precisely one of the reasons why many people prefer to join a brand rather than running their own independent hotel. The reason is that when you run an independent hotel you are all alone by yourself, facing each challenge or obstacle on your own. When you join a brand, you can get some kind of assistance, support, mentorship, training and resources to help you out.

It is very tough to survive, let alone make serious profits in the hospitality business during the first couple of years. You need to have lot of passion to learn and improve various aspects of your operations. You need the determination, willingness to work hard and the discipline to make this all work. It would be great if you have an experienced panel to guide, encourage and support you. When you are faced with multiple choices and have to make a decision, it could be awesome to turn to somebody who has much more experience for direction.

If you are struggling with running your hotel and would like to join a franchise brand that cares for its partners and helps them succeed, get in touch with us at Stay Express. Our hotel brand has been started by former hoteliers who have a passion for this industry and a keen desire to help other hoteliers succeed.

We would be glad to help your hotel business grow and make substantial profits. Get in touch with us for further discussions. By the way our prices are super-affordable. Stay Express – Hotel Franchising With a Difference