The hotel business carries many advantages and pitfalls at the same time, which should be known and taken into account in order to avoid material losses before starting an investment. If you correctly foresee all the factors, then the hotel will bring a stable profit.

However, before starting a business, you should weigh the pros, cons and risks of this industry.

Advantages of investing in the hotel business:

Disadvantages of investing in the hotel business:

It is worth noting that the above factors can be nullified by competently drawing up a business plan, calculating the budget and reasonably approaching the selection of employees.

The main risks in the hotel business

When entering any business, it is necessary to “know in person” all the risks in order to be ready to resolve possible problems. Among the risks in the hotel business:

The main stages of opening a hotel

  1. Development of the concept and business model of the hotel. At this stage, market research is carried out, the concept of the hotel is developed, technology for design is building. An architectural sketch is also created and a financial model is formed.
  2. Project design and construction support. This stage includes pre-project, design and construction and installation works. It also includes a complete set-up of the future hotel.
  3. Preparing the hotel for operation. Hotel launch. At this stage, the staff and sales department, financial and legal departments, the marketing and PR part of the team are formed, which ensure the smooth operation of the facility during launch and further operation.

Ukrainian realities: new opportunities

Of course, opening a hotel in Ukraine has its own specifics. Amid the coronavirus pandemic, many entrepreneurs have shelved the idea of ​​opening a hotel. However, despite the quarantine, new facilities continue to open in Ukraine. In particular, in December 2020, the Ribas Karpaty hotel was opened in Bukovel. It is in active demand, therefore, people have not stopped going on vacation, actively reviving domestic tourism. On the contrary, the situation with the closure of borders in most countries now gives Ukrainian entrepreneurs an opportunity to show a new level of hotel service in Ukraine.

For more detailed advice on opening a hotel, please contact Ribas Hotels Group, which specializes in hotel property management, marketing and consulting.

More details at the link about investments in hotel real estate.

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