Business strategy
The realization of each project is preceded by a phase of careful strategic planning, market capacity research and competitors analysis.
In the entire hotel industry, the mini-hotel concept is optimal for both business owners and guests. The mini hotel is a hotel designed for 8-50 rooms. Their average re-payment takes 6-8 years with proper business management.
What should be done when we get to the pre-opening stage of the hotel?
Depending on the type and size of the hotel, this phase can take from 12 to 18 months for medium and larger hotels and from 6 to 9 months for hotels with up to 50 rooms.
Although the construction site is already open and in full swing, the pre-opening stage starts quietly. This is the most important phase that creates the foundations of future business; and at the moment when the hotel opens and when the last construction workers leave the building, first reservations should already be in place.
The point of the pre-opening phase is not to waste time, because millions of funds are invested in the opening of the hotel and the facility should be on the market as soon as possible.
In accordance with the planned date for the opening of the hotel, a pre-opening team is formed, all the necessary permits (for construction, opening) have already been collected and the following is to be created: business plan, concept, appearance and name of the hotel.
The pre-opening phase is opened by General Manager or a Professional hospitality consultant. Afterward, the preparation of the hotel begins to develop in several directions. The first step is hiring the next level of senior management: first employees in sales and marketing, finance, rooms division, food & beverage division, and a lawyer. All management members must communicate closely and intensively on a daily basis, with regular visits to the construction site and monitoring of developments.
After the start of the pre-opening phase, a certain budget is predicted. In this phase, the revenue prediction begins to be created and expenses are recorded within the budget: from renting office space, and utilities, through personnel and marketing materials, to a small (operational) inventory.
- When it comes to sales & marketing, depending on the form and type of the hotel, a marketing plan is created – from philosophy and pricing policy to distribution channels that will reach the public. One of the important aspects of the pre-opening phase is the pricing strategy. You have to take into account the competition, but also the market where the hotel is located. The market should be well known because each one is specific. When defining the pricing policy, it is necessary to be down-to-earth and aware of the quality of the product being offered.
It is known that prices change according to corporate contracts, the volume of business, capacities, contracts with travel agencies, and seasons. The most important thing is that the management does not make a “salad” out of prices but creates a sound policy and price parity on the market (that prices are published through several channels on the market). - In parallel, the room division determines the categorization and facilities and contents according to the standards. The number of rooms, their standard, and the possibilities of changing and adjusting in certain situations are defined, after which they can be included in business offers and promoted.
- At the same time, the food & beverage (F&B) division deals with the organization of kitchens in all restaurants or cafes in the hotel and equipping the restaurant and bar area.
- The legal team also has many obligations in this phase. Sometimes this includes the registration of a new company, the drafting of work contracts and contracts with suppliers, preparing documentation for categorization, and at the same time the sanitary concept, because a large number of commissions and inspections will follow.
After top management recruitment, we move to the next level – the recruitment of teams. This phase begins 3 months after the start of the pre-opening phase. During that period, standard operating procedures (SOPs) and staff training programs are developed.
We are getting more and more into the details: choosing inventory, what type of cuisine we will have, what we will do with the bar, which activities we will specialize in, which operating systems we will use, marking the hotel from the outside and inside, access to the hotel; how we will be dressed, as well as a number of other details, which should lead to the timely opening in full glory.
Conclusion
In the pre-opening phase, all those “gears” are “screwed in” which should later maintain the operation of the entire mechanism without any issues. If mistakes are made there, the consequences will be felt later.