Hospitality Brokers Advice: Should I Open a Second Location for my Independent Hotel?
If you own an independent hotel that attracts a lot of business, you may consider opening a second location. This is a huge undertaking, and a choice you shouldn’t be making lightly. You need to weigh all the pros and cons and make sure to do your research to see if it’s worth your while. After all, the project should have the potential to be profitable. Today in the Southeast International Hotel Brokers blog, our hospitality brokers give their take on opening a second location for an independent hotel.
Benefits of Opening a Second Location
Obviously, the biggest benefit of opening a second location is the potential revenue it will bring in. If this isn’t a factor, there isn’t a point in opening a second location at all. There are other benefits to opening a second location though. For one, it can give your brand some more widespread recognition. This will be beneficial for both your locations. Plus, if someone stays at one of your locations and loves their experience, they’re sure to stay in the other location if they visit that city.
Another reason you may want to consider opening a second location is that you have the lofty goal of eventually franchising your brand. This is something to consider much further in the future, but opening a second location is an important stepping stone for this particular goal.
Is it the Right Time?
The biggest question you need to be asking yourself before opening a new location is whether or not it’s the right time. Obviously, your first location needs to be doing really well for this to even be a consideration. If this is the case, you can start planning. You’ll need to pick another location that makes sense. Are you planning on opening a new location in a different place in the same city? Or are you trying to break into a new market altogether? These are important considerations to make.
To be as informed as possible, you need to do extensive market research and invest some time and effort into feasibility studies. Consider what’s special about your hotel and if it would interest the demographics of your new location. Calculate all the costs of building, marketing, opening, and running the new location. Once you have sufficient research to move ahead, you can start searching for your new location.
Contact Our Hospitality Brokers Today
If you’re in the market to buy or sell a hotel, choose the experts at Southeast International Hotel Brokers. Our team of hospitality brokers can help you through the entire buying and selling process. For more information and to speak to a member of our hospitality brokers team, contact us today.