What are the keys to launching a new hotel?

1. Determine the Best Location

Location has traditionally been the most important critical success factor. In the right location,
where competitors are not fulfilling all customer needs, a hotel can thrive. However, in a
neighborhood that has heavy competition from existing hotels, success may not be so
forthcoming.

2. Plan for Capital

Whether you buy an existing hotel, build one from scratch, or renovate a building into a hotel,
you will need millions of dollars to invest. Assuming you do not have this money, you will need
to seek bank loans and/or angel investment in your hotel.

3. Have a Business Plan

A simple, clear, but persuasive hotel business plan is necessary not only for you to think through
how you will take on the opportunity, but for you to convince any investor or lender that you
have the ability to do so. No savvy investor will be attracted by a lack of planning.

4. Provide Exceptional Service

Hotels achieve this critical success factor by ensuring the staff is knowledgeable, courteous and
capable of resolving any conflicts that arise. Providing quality service also entails remembering
the names and preferences of repeat visitors and giving advice about attractions and
surroundings.

5. Implement a Smart E-commerce Strategy

A successful e-commerce strategy maximizes the economic value of your website and relies on
three key factors:

Your website's visibility

Your website's sales focus
The bookable offers you promote on your website

6. Structure a Smart Pricing Strategy

Set a smart pricing strategy that increases hotel occupancy. Determine room rates based on costs
and market research. Pricing factors include:

Staffing costs
Room category
Time and length of stay
Maintenance costs
 Competitor pricing

7. Be Flexible

Customers can have completely different expectations of a hotel, so your team needs to be given
the authority to make decisions to accommodate them when possible.

A manager with the authority to make exceptions can turn a situation around and earn a good
reputation for quality customer service.

8. Differentiate

There are two fundamental ways to differentiate and gain a competitive edge: be better and be
different:

1. Be significantly better at something that everyone provides by doing the underlying

activities differently.
2. Create a meaningful product attribute that the competition doesnt offer.

9. Focus on Quality Management

Quality management includes employee satisfaction and involvement.

By concentrating on employee satisfaction as well as customer service, a hotel can increase the
likelihood that employees are happy and, in turn, provide excellent customer service.

10. Invest in a Strategic Marketing Plan

The goal of a hotels marketing plan is to ensure long-term success. Employ an integrated
strategy that will reach your target market segments. Utilize marketing, public relations,
advertising and sales efforts to gain brand recognition and ultimately drive revenue.

What are the typical startup costs for a new hotel?

The typical startup costs for a new hotel include:

Building or buying the hotel

Working capital for staffing, marketing and other operational expenses

The percentages of sale for expenses are detailed above. With regards to the cost of building or
buying a hotel, this varies tremendously based on the type (e.g., budget vs luxury) and size (e.g.,
5 rooms vs 500 rooms) of the hotel.
Steps to Starting a Hotel
If you want to start a hotel, follow these steps:

1. Determine the type of hotel you would like to start (e.g., how many rooms, luxury vs
affordable, etc.)
2. Determine the ideal location(s) for your hotel
3. Determine whether you will build your hotel from scratch or renovate an existing
structure
4. Speak with architects and others who will be involved in building/renovating your hotel
to determine costs
5. Speak with local government to understand zoning and permit issues and associated costs
6. Develop your hotel business plan that details your strategy, plans and financial
projections
7. Present your plan to investors and lenders to raise the required funding
8. Build/renovate your hotel
9. Recruit and train your hotel staff
10. Purchase the required systems (e.g., reservation system, accounting software, etc.) to
effectively manage your hotel
11. Launch your pre-opening hotel marketing plan
12. Open your hotel to the public

How to Start a Hotel: 5 Keys to Success

Starting a hotel requires careful choice of a location and strategy, a business plan, access to considerable
financial resources, and a customer service mindset.

1) Location and Opportunity

The location for your hotel is highly linked with the opportunity that you feel there is for your hotel. In
the right location, where competitors are not fulfilling all customer needs, a hotel can thrive. However,
in a beautiful neighborhood that happens to have heavy competition from existing hotels, success may
not be so forthcoming. Likewise, if the neighborhood leaves too much to be desired, you may not be
able to price the rooms low enough to encourage travelers to stay at your hotel, even if you are within
walking distance of key attractions.

2) Strategy

The next step is to know how customers will answer the question "why my hotel?" How will you tailor
your services to the customers you want to attract, whether they are families with kids, couples on
romantic vacations, businesspeople, or international tourists? Consider the combination of amenities,
atmosphere, location, and services that will be right for your customers. Always keep in mind that
strategy means making tradeoffs - it is almost impossible to be everything to everyone and succeed. You
might have to forgo certain customer target markets in order to make your service offering perfect for
your most desired customers.

3) Planning

A simple, clear, but persuasive hotel business plan will be necessary not only for you to think through
how you will take on the opportunity, but for you to convince any investor or lender that you have the
ability to do so. No savvy investor will be attracted by a lack of planning. There is no excuse to not create
a plan with the wealth of information available on writing business plans and even business plan
templates tailored to the hotel business sector.

4) Fundraising

Whether you buy an existing hotel, build one from scratch, or renovate a building into a hotel, you will
need millions of dollars to invest. Assuming you do not have this money, you will need to seek bank
loans and/or angel investment in your hotel. As you will be working with considerable assets,
dependable and experienced legal and accounting help is a must as you create deals with investors.

5) Hospitality Mindset

Finally, you must have an ingrained sense of how you want your guests to be treated so that you can
instill this mindset in your top management and they can, in turn, teach this to the staff. Staying at a
hotel can be stressful and uncomfortable, and guests demand the highest attention to their needs or
they will have no problem complaining loudly and publicly. If employees sense you have higher motives
than customer satisfaction, customer service may fall by the wayside and your hotel business may fail or
never take off in the first place.

The first step to starting a hotel is to develop your hotel business plan. Growthink provides products and
services to help you develop a professional business plan and turn your dream into reality.

Administration and general

Determine Insurance Needs

Confirm Insurance Providers
Ensure Insurance is activated
Purchasing & Receiving
Register with Hospitality Warehouse
Identify Primary Suppliers
Establish Credit with Suppliers
Implement purchase order system
Develop Inventory Management System
Develop Requisition Procedures
Leases
Confirm lease in place and copies available
Printing and Stationery
Business Cards ordered
Hotel Letterheads
PMS Stationery
GUEST Account Stationery
Purchasing Order Forms
Payroll & Personnel Forms
Order Payroll Stationery
Uniforms
Finalise Specifications and Quantities
Order Uniforms
Order STAFF Name Badges
Transportation
Finalise Requirements
Affiliations & Memberships
Establish Membership
Community Policing Forums
Pre-opening Offices
Locate and Prepare pre-opening offices
Relocate Pre-opening Offices to Hotel

financial plan

Order Accounting Package (ACCPAC) software

Establish Hotel credit policy and procedures
Set-up Accounts Procedures
Obtain reporting formats
Obtain Accounting Procedures Manuals
Set-up Dictionary of Accounts
Schedule training on ACCPAC
Set-up Accounts STAFFING
Recruit Key Accounts STAFF
Payroll
Set-up salaries bank account
Register to Bank Account
Order Payroll software
Order Payroll Stationery
General Manager Checklist Completed post-
opening
Pre-opening Budget
Draft pre-opening budget
Pre-opening budget approval
Operating Forecasts completed
Hotel Budgets
Draft 12 mth Operating Budget
Draft Capex Budget
Banking
Set-up Bank Accounts incl. Salary Account
Arrange Overdraft Facilities
Set-up credit card agreements
Arrange Security Cash collection
Determine Operating Cash requirements
Asset Management
Open Fixed Asset Register
Complete pre-opening asset stock takes
See Admin & General
See Risk Management
See Legal Compliance

it and softwares

Service Level Agreement finalised

Installation dates confirmed
Data configuration set-up
Data input and configuration
Set restrictions in PMS
Implement Rate Codes In PMS
Enter Packages Into PMS
System Installed & Tested
Training dates confirmed
Backup Systems & Protocol
F&B Outlet POS Systems
Not Available

Server & LAN Network

System specifications agreed
Service Level Agreement finalised
Equipment Orders placed
Installation dates confirmed
System Installed & Tested
Backup Systems & Protocol
Workstations
Requirements determined
System specifications agreed
Service Level Agreement finalised
Equipment Orders placed
Installation dates confirmed
System Installed & Tested
Training dates confirmed
Printers/Scanner/ Fax
Requirements determined
System specifications agreed
Service Level Agreement finalised
Equipment Orders placed
Installation dates confirmed
System Installed & Tested
Training dates confirmed
Software Requirements
Requirements determined
Orders placed
Licencing
Software Licences obtained
TV Licence application
Internet Service Provider
Determine ISP
Service Level Agreement finalised
Domain registered
e-mail accounts set-up
Internet connectivity
Telephone System
Confirm Switchboard Specifications
Training dates confirmed
Arrange Telkom Application
Finalise Hotel Phone Number
Finalise Hotel Fax Number
Arrange Fax to Mail Facility
Complete On-Hold Message Recording
In-Room Entertainment
Specify requirements
Order Decoders
Installation & Testing
Determine Bouquet
Obtain licencing
Source Public Area Music
Timekeeping System
Requirements determined
System specifications agreed
Equipment Orders placed
Installation dates confirmed
System Installed & Tested
nd systems

legal compliance

Obtain business trading number

Licensing
Trading licence
TV Licence
Promotion of Access to Information Act
Fire Clearance Certificate obtained
Employment Equity
Job Classifications verified
Skills Development
Skills Development Facilitator appointed
Training Committee established
Health and Safety
Health & Safety Representatives appointed
First Aiders trained and appointed
Health & Safety Committee established
First Aid Boxes equipped and available

marketing plan

Develop Hotel USPs per Market Segment

Complete Competitor Analysis
Complete SWOT Analysis
Hotel Sales Collateral
Develop facilities guide/presentation folder
Develop Pre-Opening Brochure
Develop Permanent Brochure
Develop ancillary sales collateral/stationery
Develop Press Kit
Develop Property Maps
Photography/Video
Coordinate photo shoot for permanent brochure
Photography available
Marketing Plan
 Appoint Marketing Plan Co-Ordinator
Appoint Sales Executive
Acquisition Plan to be formulated
Acquisition Plan to be approved
Rates Structure
Complete and Submit Rate Builder
Rate Grid to be approved
Soft Opening Programme
Determine Target Groups
Determine pre-opening programmes
Hotel Opening Programme
Determine official opening date
Determine Target Groups
Determine Programme
Hotel Branding
Minimum Branding Requirements ascertained
Minimum Branding Requirements ordered
Hotel Brochure finalised
Hotel Signage finalised
Corporate Flags ordered
Rates Board ordered
Brochure Rack and Brochures ordered
Hotel Stationery finalised and ordered
Key Cards designed
Internal Signage agreed
Marketing Material ordered
Branding Checklist Completed
Hotel Web Page
Hotel.com Web Entry
Hotel Fact Sheet submitted
Pictures submitted

plan : f n b

Contract GUEST Valet/ Laundry

Contract GUEST Transport
Develop F&B Outlet Concepts
Restaurant Concept
Restaurant Theme
STAFFING LEVELS
Service Levels
Menu Planning
Menu Tastings
Menu Costings
Develop Standard Recipes
Menu Pricing finalised
Menus to Print
Table Layouts
Centrepieces
Linen/ Table Mats
Bar Concept
Operating Hours
STAFFING Levels
Wine List Finalised
Wine List Costed
Drinks Pricing
Service Levels
Room Service
Operating Hours
STAFFING Levels
Service Levels
Menu Planning
Menu Costings
Menu Pricing finalised
Menus to Print
Equipment specifications
Equipment ordered (see Purchasing)
Equipment commissioning complete
Kitchen
Determine Kitchen smallwares
Specify kitchen smallwares
Order kitchen smallwares
Delivery date confirmed
Equipment commissioning complete
Purchasing
Linen
Specifications confirmed
Orders Placed
Delivery Dates Confirmed
Cutlery
Specifications confirmed
Orders Placed
Delivery Dates Confirmed
Crockery
Specifications confirmed
 Orders Placed
Delivery Dates Confirmed
Glassware
Specifications confirmed
Orders Placed
Delivery Dates Confirmed
Equipment
Specifications confirmed
Orders Placed
Delivery Dates Confirmed
F&B Inventories
Develop Kitchen par stock
Develop master beverage/bar par stock and wine list
Procure opening F&B inventories
Conferencing
Conferencing Layouts
Conferencing Packages
Specify Conferencing Equipment
Order Conferencing Equipment
Delivery Dates Confirmed
Equipment commissioning complete
Technical support available
Storage and Control
Arrange suitably secured storage
Complete Asset Register
Complete Opening Stock Inventories
Obtain Quality Operating Standards Manual
Issue Minimum Operating Standards to Heads of Departments
Customise Minimum GUEST Service Standards
Communicate Minimum GUEST Service Standards
Schedule Pre-opening Quality Assurance Assessment
Obtain required SA Grading
Implement "Hot or Not" GUEST Feedback System

plan h/k

Issue Minimum Operating Standards to Heads of Departments

Customise Minimum GUEST Service Standards
Communicate Minimum GUEST Service Standards
Schedule Pre-opening Quality Assurance Assessment
Obtain required Standard Assessment Grading
Implement GUEST Feedback System
 HOUSEKEEPING
Equipment
Requirements Specified
Housekeeping Trolleys
Vacuum Cleaners
Cleaning Smalls
Quantities and Specifications established
Delivery Dates Confirmed
Asset Register opened
Linen
Quanities Specified
Par Stock Established
Quality Specifications Set
Orders Placed
Delivery Dates Confirmed
Secure Storage
Opening Inventory Taken
GUEST Supplies
GUEST Bathroom Amenities
GUEST Stationery
GUEST Beverage Supplies
Quanities Specified
Par Stock Established
Quality Specifications Set
Orders Placed
Delivery Dates Confirmed
Secure Storage
Opening Inventory Taken
Minimum Branding
Checklist Completed
Outsourcing
Housekeeping Contract Cleaning
Service Level Agreement finalised
Laundry
Service Level Agreement finalised
Public Area Contract Cleaning
Service Level Agreement finalised
All Contractors to undergo Induction Training

risk management

Determine Insurance Needs

 Confirm Insurance Providers
Ensure Insurance is activated
Arrange Risk Audit post opening
Emergency Planning
Draft Emergency Procedures
Draft Evacuation Procedures
Obtain Emergency Services Contact Numbers
Appoint Fire Station Officers
Train STAFF in Emergency Procedures
Hold Fire & Evacuation Drill
Health & Safety
Order First Aid Boxes
Order Emergency Equipment
Megaphones
Hard Helmets
Vests
2-way radios
Torches
Verify proper operation of all Life Safety equipment/systems
GUEST Security
Check CCTV installation & monitoring
Key Register & Monitoring System in place
Computer Security
Backup Systems & Procedures in place
Electronic Communication Policy in Place

staffing

Finalise STAFFING Numbers

Finalise Salary & Benefits Budget
Obtain HR Operating Standards Manual
Establish Conditions of Employment
Draw up Contracts of Employment
Confirm Employment Policies
Establish Hotel Rules
Obtain HR Forms
Establish Performance Expectations
Issue Job Descriptions
Issue GUEST Service Standards
Arrange for Probationary Performance Reviews
Determine Outsourcing Requirements
Housekeeping
 Service Level Agreement finalised
Laundry
Service Level Agreement finalised
Contract Cleaning
Service Level Agreement finalised
Maintenance
Service Level Agreement finalised
Security
Service Level Agreement finalised
STAFF Transport
Service Level Agreement finalised
Customise Position Specifications
Develop Hiring Schedule
Develop Training Schedules
Confirm Training Dates & Providers
Hire Senior Management Team
Operation Manager
Asst.Operation Manager
Hire Department Heads
Accounting Spv
FO Spv
HK Spv
Sales Executive
Eng Spv
Hire Junior Management
Hire Service and Support STAFF
Schedule Training
Induction Training
Skills Training
Systems Training (PMS & POS)
Emergency Procedures

HACCP is a management system in which food safety is addressed through the analysis and control of
biological, chemical, and physical hazards from raw material production, procurement and handling, to
manufacturing, distribution and consumption of the finished product.Aug 14, 2017

Hazard Analysis Critical Control Point (HACCP) - FDA

HACCP or Hazard Analysis Critical Control Points is a scientific and systematic approach to identify,
assess and control of hazards in the food production processin hospitality industry

HACCP is a food safety system, and ISO 22000 is a food safety management system standard,
ISO22000 includes HACCP + other management.
HACCP will only make sure that the product is safe from any hazard whereas ISO -22000 makes sure that
your system is effective, improving continually.
It ensures the food safety in all areas of food production

HACCP is a regional standard while ISO22000 is an International Standard of Food safety.

Secondly ISO22000 is broader form of HACCP and all elements of HACCP are included in the ISO22000.

There are not many differences between HACCP and ISO22000. HACCP (short for Hazard
Analysis Critical Control Points) is the main platform for international legislation and good
manufacturing practices for all sectors of the food industry. HACCP is a risk management tool
recognised internationally for use in the proactive management of food safety issues. ISO22000
incorporates the HACCP principles and puts these in a broader framework which is aligned with
generally recognised principles of Management Systems that drive continual improvement of
performance.

ISO22000 certification provides a complete Food Safety Management System with benefits
including:

Applicability to all organizations in the global food supply chain

A truly global international standard
Complies with the Codex HACCP principles
A structure that aligns with the Management System structure of ISO9001 and ISO14001
Enables communication about hazards with partners in the supply chain

I design from inception & open restaurants and hotel kitchens as part of my work schedule regularly.

Just a few tips for all you guys:

1. always check with the local authorities for rules and regulations that govern your respective countries
for building restrictions
2. ensure that there is scope to first and foremost install a substantial ventilation and extraction unit
that runs the length and breadth of the back areas
3. organise your selves by planning a menu draft and then work towards planning the floor lay out of the
kitchen. also crucially remember structure permitting any goods that come into the kitchen must enter
from one end and run through the kitchen in a straight flow out as a finished product.
4. your prep areas must be clearly defined and segregated from the actual production areas.
5. ensure the walk-in fridge/ freezers are stragically placed to maximise flow of goods and production.
6. the floor is absolutely vital and must be laid as either kitchen anti-slip tiles or of industrial strength
anti-slip material both of which are readily available in the market.
7. your pot wash and dish wash area must be planned in a manner that it does not interfere at any point
with the flow of work and in fact should enhance the performance.
8. the one mistake we all make as chefs/ managers/ designers etc is that we forget the one other crucial
aspect of a F&B outlet. Storgae space and areas MUST be catered for to stack not only restaurant gear
but also pots and pans.
9. try and ensure you can buy commbination ovens (they are multi faceted and mlti use), a brat pan
(depending on space and menu of course) and most importantly good quality burners and other cooking
equipment. One can also invest in a good microwave combi (this is a microwave, oven, grill and combi
oven microwave that cooks a steak from frozen to medium in 1 minute flat). plus there is the regular
fare of tables and all else. Oh yes! the other thing is that one must ensure that the height of the table is
such that you should require minimal bending down to aid posture and effectively enhance production
time and reduce health issues which really effect a business

There is loads more but I am sure if you need any specific info you can alwways contact me on
kcsolutions@btinternet.com

I do hope this little bit is of help to you guys.

I can always be called upon in an official capacity if help is required to plan and organsie and set up a
unit.

Regards

Randhir Kalha