10 steps to open a Hotel

Are you planning to open a hotel? If so you are in the right place. Scroll below to read the steps to open a hotel.

Opening a hotel is a series of steps  and in this post, I will share that with you. If you follow these steps, you will be able to open your hotel successfully. On this page you will also find links to key steps to follow as you open a hotel. 

Step 1 : Land

One of the first step to building a hotel is to acquire land for the construction. You will need to buy or lease land that you wish to construct your hotel upon. If the hotel is already constructed and you are purchasing a ready hotel, then you can avoid this step completely. However you will still need to do the due diligence to ensure that all the papers for the land are in order 

Step 2 : Permits and License

If you are opening a hotel, you will need to procure a host of license. Depending on the state you are planning to set up you will need anywhere from 85 to 175 permits to open a hotel. Some of the license to open a hotel are given here.

For your specific location, you may have consultants who can help you get through the maze of this bureaucracy.

If you are planning to go in for a classification, read the information on the government sites.

For India, specific information can be found here

Step 3 : Building specifications

Once you have the required licenses and the permission to build, then you will need to begin the task of identifying an architect, designer, MEP and HVAC consultants, Kitchen designers, safety and security consultants. 

These professionals or teams will help you design the hotel of your dreams while keeping the functional and the aesthetic sensibilities. 

In order to brief them about your vision, you will need a build specification for all the areas so that the designers can design as per your requirement. 

Step 4 : CAPEX purchase

While the building is being planned, you will also need to plan the CAPEX investment. This is important because your MEP and HVAC design will have to consider the electrical load and you will need to be design for these purchases.

Typically some major equipment that you will need to consider at this stage are:

• Engineering HT and LT equipment
• HVAC systems
• Generator
• Laundry Equipment
• Kitchen Equipment 

At this stage of planning, you will also need to consider contacting vendors to start getting quotes and BoQ for the hotel.

Step 5 : Operating Equipment

Once the hotel construction has started and the major equipment have been ordered, you will have to focus on the operating equipment. Every hotel will have its unique set of requirements. However this handy file should help you to put a starter list together without missing out on any essential products. 

Step 6 : Hiring and Training

Congratulations. You are midway to opening your hotel. At this stage the hotel is around 6 – 12 months away from opening. This is the time to focus your attention on hiring your department heads, and staff. 

Our articles on Human resources can help you with solutions for Hiring 

Before you do the hiring you will need the job description for all departments along with hiring guides to ask the correct questions. 

Once you have hired them, you will need to provide induction and training for the team. 

Learn more about how you can train your team better.

Step 7 : Critical path and SOP

Critical path is a set of steps that the operations team will undertake to help open the hotel. It is a logical step by step instruction on what needs to be done at what time to ensure your opening is seamless. 

Buy the critical path file.

The advantage of having a critical path file is that you can ensure that no task is missing.

One of the key point in the critical path is the SOP or standard operating procedure. Every department in the hotel should have a SOP deck to ensure that the department functions well. 

Step 8 : Snag list

2 months before the hotel is due to open, you along with your team will do a process of quality check and handover from the projects team. This process is called snagging or punching. 

You and your team will have to physically walk the entire property methodically and make sure you check all the areas well. If done well, you can ensure that the hotel will remain in good shape for the next few years. 

Some of the areas are critical and you need to make sure that these areas are not missed out.

• Highside checklist
• MEP snag list
• Rooms snag list
• Public area snag list 

These areas should be returned to the projects team to ensure that they are defect free and in working condition. 

Step 9 : Marketing and PR

Once you build a hotel, you will need a great marketing and PR plan to position the hotel effectively. 

In this digital age, you will need to position your hotel in the local market and online as well. 

Local branding can be a combination of PR and advertising. However digital marketing is ever evolving and you need to be on top of the game. 

Online marketing can be broadly divided into social and advertising.

Online sales are divided into Direct channels like your own website, OTA, Meta Search engines like Trivago etc. 

Learn the basics about Revenue Management

Read post about Marketing that can help you run a successful hotel

Step 10 : Opening and Running

If you have reached this far, congratulations. This means your hotel is now open and your dream to open a hotel is a reality. But as a last step before you open the hotel, you will need to make a  budget.

Buy the Hotel Budget Template. 

This file will help to simplify your hotel budget and make sure you are on top of your revenue and expenses. Read how to use this file

Now that your hotel is open you will have to run it well to ensure that you keep the guest, staff and all stake holders happy. You will also have to ensure that you make money and profit. 

You will have to make more money, save cost and train your team to ensure that the hotel is successful 

Did you ever open a hotel?

Let us know in the comments below if did something different.