It’s good news for the British hotel sector. After a buoyant 2015, forecasts by PwC for 2016 suggest that UK hotels could expect revenue per available room (RevPAR) growth of 2.3 per cent in London and 4.2 per cent outside the capital. These rates have increased consecutively for the last seven years in London and four years in the Provinces, so setting up a hotel right now could end up being a lucrative endeavour.
Category: News
6 top tips for first-time hotel owners
For many, starting your own hotel is a dream come true – perhaps the realisation of a long-held ambition and the chance to escape a humdrum existence. Others, while working at someone else’s establishment, may have vowed to have their own hotel one day.
It’s a superb life style choice and one that, done well, can provide job satisfaction and financial security. There are, of course, many things to consider before embarking on your new life. In our many years of providing finance to the sector, we’ve seen it all and thought we’d share some of our insight. Here are a few basic yet important tips for anyone who is thinking about owning a hotel for the first time.
Convincing lenders to get behind your idea
If you plan on opening or purchasing a bed and breakfast, hotel or guest house, it is vital to weigh up the potential risks you will have to deal with, including seasonal demand, competition and the economy. The lender you go to for finance will certainly consider all of these factors and take them into account, not only when deciding whether or not to lend to you but also when deciding on the rate. Naturally, if there is a higher risk it will cost more to get the funds you need. If you want to lend at the lowest rate possible, you need to show you have planned effectively and will be able to minimise risks. Continue reading “Convincing lenders to get behind your idea”
Never underestimate the importance of a location
The single most important thing to consider whenever you start a business, regardless of the sector or the scale of the operation, is whether or not it will be able to make a profit. Profitability is essential or the enterprise won’t be sustainable and will quickly encounter difficulties. You’ll also struggle to attract investors and financial backing if you can’t provide evidence that you will be able to deliver a return. Continue reading “Never underestimate the importance of a location”
Be proactive in your search for the right hotel business
When you begin your search for the perfect hotel to buy, it is important to take a proactive approach. Nobody can find the right property overnight, but by actively looking and maintaining contact with agents you can give yourself the best chance of investing your money wisely. By regularly communicating with agents, you will increase your exposure to hotels that meet your requirements when they become available. Continue reading “Be proactive in your search for the right hotel business”
Recovering from mis-sold finance
There are various financial issues and problems which can strike hospitality and accommodation businesses, and although it is important to take steps to safeguard your business, there are times when you may experience problems which are beyond your control. For example, many business owners have been mis-sold financial services and products in recent years, and this can be a challenging problem to rectify. If you have experienced this, our hotel finance specialists are here to help. Continue reading “Recovering from mis-sold finance”
Understanding the upfront costs of owning a B&B
Opening a bed and breakfast is a major commitment which requires extensive planning. It is essential to look to the long term and carefully consider the upfront cost of starting the business. It could take a few years before you break even, but with a successful plan and a quality business offering great facilities, you have the potential to achieve great success in time. Continue reading “Understanding the upfront costs of owning a B&B”
A fire safety policy is essential for any hotel
If you are planning to open a hospitality business, you are legally required to ensure the health and safety of your guests, staff and anybody else on the premises. If you do not implement suitable measures, you run the risk of facing legal action and potentially ruining the reputation of your business. Health and safety measures do not have to be complex; with a few simple steps, you can work out a suitable health and safety policy to safeguard yourself against legal issues and protect people from unnecessary risks. Continue reading “A fire safety policy is essential for any hotel”
Should you operate as a sole trader or company?
When you are forming any kind of business, including a hospitality business, one of the most important things to consider in the early stages is whether you wish to operate as a sole trader or a company. If there are two or more of you operating as sole traders together, for example if you are planning to open a B&B jointly with a friend or family member, you will become a partnership. The decision will largely depend upon the size of your business, its assets and its turnover, and there are advantages to both courses of action. Continue reading “Should you operate as a sole trader or company?”
Examining the cost efficiency of renovation work
Once you have secured funding and your hotel or bed and breakfast is up and running, you will have to ensure your rooms and other facilities are consistently well maintained and presented. Occasional repairs and refurbishments are part and parcel of operating a hospitality establishment, but as a business owner it is always prudent to assess each maintenance job and redecoration scheme before you begin to determine how cost-efficient the project actually is. Continue reading “Examining the cost efficiency of renovation work”
