Do I Need to Have Operating Experience to Buy a Hotel?
If you’re considering buying a hotel, this is an important question you may be asking yourself. If it is something you’ve wondered, that’s a good sign that you are thinking things through and take the daily operations of your future hotel into serious consideration. After all, a hotel is a large purchase to make impulsively; you don’t want to do it without considering every angle and end up with buyer’s remorse.
A hotel broker that is well seasoned in the area of hotel sales will be able to educate you on the ins and outs and give insight into what experience you need to have in order to buy a hotel.
So do you need that experience to buy a hotel?
The short answer is no; it’s not absolutely necessary. However, lack of operating experience will likely leave a void that cannot exist if you want your hotel to succeed. Some people have enough business experience and the right personality type to bring it all together without actual experience running a hotel, but the hospitality industry is one that comes with its own set of complications and, for your sake, it would be best to not be thrown into that without knowing what you’re doing.
If you are looking to buy a hotel but lack operating experience, a great option is to consider hiring an asset management company to handle your hotel operations. This could help ensure operations stay in order, or it may be a temporary resolution to maintain functionality and professionalism in your hotel until you are comfortable enough to run it on your own.
If you do buy a hotel and choose to hire an asset management company, keep in mind that there will be fees involved. This means that your profit margin needs to be able to support that additional fee and still remain profitable.
If you’re not sure you want to split your profit margin any further by hiring an asset management company to run your hotel, you should talk to your hotel brokerage about what you’ll need and get a realistic idea of whether it’s something that you can pull off.
The hospitality industry is a booming industry. It’s exciting to get into it, but it does not come without its own unique set of challenges. Southeast International Hotel Brokers knows the industry well and what it will require of you. If you’re ready to buy a hotel, let us help guide you to the right solution.