Start A Hotels Business - Business Ideas

Updated: September 15th, 2022
Start A Hotels Business

Please note that the data provided in this article are estimates and may vary depending on various factors, and should not be considered as perfect or definitive.

If you are considering starting a hotel, then it is time to implement your plan. There are five key elements to understand if you want to succeed in this industry: location, size, budget, experience, and market demand.

Here are some tips to consider before forming a hotel:

  • Name your business
  • Decide on a marketing strategy
  • Start by renting out a room in your home.
  • Hire a business capital broker
  • Try Airbnb
  • Make a marketing plan
  • Offer complementary services

Starting a hotels business requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell hotels services, or selling hotels services online, you can use this page as a guide for everything you'll need to know.

Key Stats

market size
$83.1B
starting costs
$18.9K
gross margin
43%
time to build
270 days

Startup Costs

Min Startup Costs Max Startup Costs

Equipment & Supply Expenses

$66

$1,200

Retail Business Expenses

$1,250

$11,650

Inventory Expenses

$350

$14,750

Advertising & Marketing Costs

$75

$9,636

Software Expenses

$0

$425

Website Costs

$13

$215

Total Startup Costs

$1,754

$37,876

Successful Businesses

Business URL Rank

Accor

group.accor.com

8,260

PRIVATEUPGRADES

privateupgrades.com

50,518

Hotels.ng

hotels.ng

56,055

SafariNow: Discover Unique Accommodation in Africa

safarinow.com

60,045

Luxury Hotels & Resorts Collections

langhamhotels.com

137,014

Scandic Hotels

scandichotels.com

181,956

Royal Orchid Hotels

royalorchidhotels.com

216,180

Sarovar Hotels

sarovarhotels.com

221,047

Vivanta Hotels: Book Business Hotels

vivantahotels.com

307,103

Club Quarters Hotels

clubquartershotels.com

308,704

Titanic Hotels

titanic.com.tr

411,879

Pros & Cons

Pros Description

Rewarding work

Starting a hotels business can be really rewarding work. After all, you are solving an immediate issue for your customer and you're working on something you truly care about.

Meaningful business connections

You never know who you will meet as a hotels business. This could be the start of an incredible business opportunity!

Daily physical activity

Hotels Business's typically involve a much greater degree of movement than other lines of work. Most days, you will spend your day walking, running errands for your business, and performing a multitude of tasks. This can have a positive impact on energy levels and your overall health.

Amazing perks and discounts

Working in the hotels business comes with its perks! As a seller for these products/services, you typically also get to enjoy industry perks and discounts.

You are your own boss!

With starting a hotels business, you are the one to make decisions for almost all of the operations. Calling the shots can be empowering and liberating!

Local Community

One of the best parts of starting a hotels business is that you can develop a local following by selling your products at craft shows, farmers' markets, or even local storefront businesses! This gives you access to additional revenue streams and loyal customers.

Cons Description

Crowded Space

Competition is high when it comes to your hotels business, so it's important that you spend a good amount of time analyzing the market and understanding where the demand lies.

Finding The Right Supplier

Most businesses in this space go the supplier/manufacturer route, which isn't a bad thing! However, finding the right supplier can take a lot of time, energy and trial/error. If done properly, this process can save you months (if not years) of time and energy. More on this below in the "finding a supplier" section.

Motivation of employees

If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees.

Low margins

The gross margins for your hotels business are typically around 43%, which can make it more challenging to incur new expenses and maintain profitability.

High employee turnover

In the hotels business, employee turnover is often high, which can be quite costly and time consuming for your business. It's important to try and avoid this as much as possible by offering competitive pay, benefits, and a positive work environment.

Taxes

As a hotels business, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it.