Starting a new hospitality venture is both an exciting and daunting prospect. Whether it’s choosing the right location, securing a financing package or managing operations, hoteliers face a multitude of decisions that can be overwhelming. Moreover, external challenges such as rising costs, a shortage of well-trained staff, the cost-of-living crisis and growing expectations from consumers for unique, value-added services all add to the pressure.
This is why a strong and detailed business plan is the foundation of any successful hospitality venture. Here are some considerations to get your hotel business started in 2025 and not die trying.
Setting the foundations
First, it’s crucial to conduct comprehensive market research to understand the demand for the product offering in a chosen location, to gauge what type of hospitality experience potential guests visiting the area want and also what type of visitors a business wants to attract.
A well-chosen site can make a huge difference to profitability, with proximity to transport links, local attractions and other amenities all influencing a venue’s desirability for customers. Lenders who understand the hospitality market in different regions can support businesses in this regard, ensuring that new hospitality owners get their offerings right. It means that they can identify the best locations, tailor their business strategy to regional trends, and navigate the specific regulatory and planning requirements in these areas.
In doing so, new owners can appeal to the nuances between different guests, whether they be business travelers, vacationing families, local trade or even eco-conscious tourists. This is where the right professional team, including the right lender, can add value, providing their insights and expertise to help newcomers craft effective business plans that will support them in achieving their ambitions.
Additionally, with sound understanding of the operational details that can make or break a hospitality business, such as staffing needs, technology systems or supply chains, an experienced lender who knows the market inside and out, will be able to provide practical support that helps an owner plan every aspect of their business from managing costs to hiring and training staff.
Delivering value
Prospective customers are increasingly looking to squeeze as much value as possible out of their experiences as they look beyond traditional comfort and services. They are expecting more. They want thoughtful touches that make a visit memorable, such as personalized amenities, eco-conscious practices and curated local experiences that reflect a community’s authentic culture.
In an era where experiences matter, consumers want to feel like they’ve gained something unique and meaningful. By focusing on added benefits, attention to detail, customized services, sustainable practices and authentic local experiences businesses in the hospitality sector can enhance customer satisfaction, create lasting impressions and stand out in a competitive market.
Addressing operational challenges with the support of knowledgeable partners can set businesses apart in a competitive landscape. With the right preparation and collaboration, hoteliers can not only face the complexities of starting a hospitality venture but also create memorable experiences that drive long-term success.
Story contributed by Alasdair Swan, head of commercial at The Cumberland. The Cumberland provides financial advisory for the hospitality industry across the U.K., Scotland and Islands.
