Why a Clear Strategy is Key to Opening Day Success at Your New Hotel — Photo by Unsplash

It may seem overly simple to say that successfully opening a hotel requires a clear strategy, but a surprising number of properties are developed and opened each year with less than a fully-developed strategy in place. A few of them struggle through and manage to make it, while a large number of them fail.

In many cases, this issue affects experienced hotel owners or developers who have opened properties in the past and may be rushing into a new project assuming many of the success factors are identical. The problem isn't likely that owners and developers are going into the opening with no strategy, but rather that the strategy isn't thorough, customized to the specific project, and clear to everyone involved, so that the entire team can work together like a well-oiled machine to accomplish their goals.

"Don't go into it blind."

In a recent interview, internationally recognized hotel development expert, David McMillan, discussed the importance of a clear and thorough opening strategy that begins long before opening day, even long before signing a purchase agreement on a new property.

In that interview, he went on to discuss some important tips for new and experienced owners and developers alike who wish to give their hotel operation the very best chance at success:

"Befriend your competition."

One interesting tip McMillan provided was to befriend the owners of other hotels in the area before you finalize your purchase.

"Befriending the competition should occur prior to buying, so visit the other hotels that are in competition with the one you're going to buy so you know what you're up against. You can't do that as an enemy of the competitor, so you need to get to know the competitors and befriend them because you will be working with them as well as competing with them."

This is an exciting opportunity to do some in-depth research into the local hospitality market that you're unlikely to be able to accomplish using more traditional methods. Hotel owners and managers at local properties that have been established for some time are sure to know the ebb and flow of tourism in the area, to have important contacts in place for local event planning or travel destinations, and a finger on the pulse of what travelers to the area are looking for in a place to stay.

As McMillan notes, while you're going to be competing with these individuals on one level, you'll also be working together to enhance the overall appeal of your city or neighborhood to travelers, which will benefit all of you.

The same strategy of befriending and learning from established local owners can extend to other businesses that will naturally overlap with your success, such as restaurants, tourist attractions, gyms and spas, or any other local service that travelers may need to take advantage of during their stay.

"Touches on three levels…"

Going into the opening itself, McMillan notes another important tip regarding how the new hotel reaches out to connect with three different groups. He calls these three strategic connections "touches on three levels."

Employees

Just before opening day and into the first few weeks of operation, it's vital to get your staff fully involved in creating the best possible experience for your guests. That means eliminating any shred of the "I'm just here for the paycheck" attitude that permeates far too many service industry professionals.

He recommends creating incentives and prizes that can excite and motivate employees to do the very best job they can when serving guests. Something that will get their attention, help them appreciate and enjoy their jobs, while keeping the focus on the guest.

As an example, perhaps you can offer staff members with the highest quality feedback after the first month a free weekend at the hotel with their families? Or, perhaps one or more of the hotel amenities can be opened up to employees for free use during low-traffic hours.

Guests

The second touch is the one most hotel owners and managers think of first: connecting with guests.

This part of the strategy refers to some small, thoughtful extra perk that other hotels aren't offering, and that enhances your guests' experience. Some possible ideas include:

  • A fresh basket of fruit on the front desk for anyone to enjoy
  • Complimentary car wash
  • Complimentary room service meal on the first evening of their stay
  • Cookies and cold milk in the lobby every evening

These small added benefits can easily create lasting memories and positive feelings that can lead to positive reviews, extended stays, and guests returning down the road, perhaps with friends in tow.

Neighbors

Finally, the third touch McMillan describes involves the neighborhood where your new hotel is located. Whether they're local residents, business owners, or both, you're now a large part of their community. To get the relationship off to a good start, reach out to the local community with fun offers that will ingratiate you to them right off the bat.

For example, offer a free lunch or cocktail party for local residents where they can see the new hotel and meet the owner personally. Or, perhaps consider opening up a conference room free of charge to a local community group in need of a meeting place.

These kinds of gestures can help make the transition as a new hotel in the neighborhood smooth and profitable because the local residents and other businesses surrounding your property are an excellent source of word-of-mouth advertising and trusted recommendations that can be invaluable as your strategy progresses.

Organizing and even documenting these aspects of your opening strategy can seem a daunting task, but success doesn't come automatically in a competitive industry like hospitality. It takes strategic planning and a lot of hard work to make a success of a new hotel, but the rewards are more than worth the effort.

Debbie Williams
BusinessesForSale.com
3037507727
Dynamis Ltd