Basics for Hotel Owners and Investors when building and/or operating a hotel or resort

We have seen many hotels and resorts which look good, but still receive many negative comments from guests since important basics have been overlooked.

Never forget the fact that some of the best architects do not have any hotel or service industry experience, so they don’t know how to design back-of-house areas, rooms and public areas for comfort and convenience! For most architects, the most important thing is to create a good looking hotel or resort to add to their portfolio. They will not care anymore ones the place is ready!

Today I like to give my comments and recommendations for certain basics to keep in mind when building a hotel or resort.

Your hotel or resort must be ‘feasible’

You must ensure that you did study the market well and that you have a proper 10 year cash flow forecast and a solid 1st year budget.

The hotel or resort must be ‘practical’

Never assume that your guest will appreciate and like what you think is nice and fancy!  Ensure to hire a professional hotel consultant or expert to guide and advice you with all room layouts, from electric plug to table and wardrobe location. You will save a lot of money in the end!

The hotel must work ‘smooth’

Ensure you hire a resort consultant to work with you and the architect at all back of house areas, the service work flow and all layout.

The hotel or resort must be ‘safe’

It is utmost important that you follow the building code of your individual country TOGETHER with Tour operator and agent minimum standards. I just consulted one resort here in Thailand where the owners did follow local building codes as per law, but did not follow the Tour Operator and Agent minimum standards which resulted to be a disaster as those operators and agents do refuse to accept this resort in their portfolio. (Especially if the business caters for families and kids as well)

The hotel or resort must be ‘employee friendly’.

Your employees will spend more time at work than at home.  Give them some quality and comfort as well! We have seen employee restaurants where waste-water pipes run through the roof of the dining area and one could hear guest flushing the toilet! We also have seen offices without windows and ventilation and smelly employee lockers. Staff dormitories without proper restrooms and showers where 5 and more people stay in one rooms is very common … and shocking!  Owners and managers of such places never stop wondering why all their quality staff resigns. Maybe they should visit and stay one night at the staff house with full board (in the staff canteen) to understand their employees better!

The hotel or resort must be ‘green’.

If you build your hotel, design it to be ‘green’! Environmental friendly hotels do not only separate garbage and use biological-safe chemicals! Your business must be designed to be ‘green’ to ensure you will accumulate less waste, have saving, get a good reputation and show your responsibility.

Your hotel or resort must stand for ‘future’; ‘education’; and ‘job security’.

Fact is that your hotel or resort will most properly still exist when you left this world already! Your employees must all understand that it might well be that their kids will ones have employment, development and future in your hotel or resort. You must provide good learning and development through a flawless Human Resource system.

Your hotel or resort must stand for “ethics; ‘values’ and ‘professionalism’.

It starts with the Manager AND owner! Constantly show and enforce your commitment to professionalism, solid values and ethics. Do NOT accept politics, gossip, favoritism and un-ethical behavior from your staff just because you like particular staff since they are kind, sweet talking and know how you like your coffee!

(I worked ones in a 5-star hotel where 30% of employees had the private mobile phone number of the owners!! … what a political nightmare!!)

I have also seen a resort where the owners accepts a certain level of corruption from some people as those favorite people of the owners have been long time serving employees, relatives of senior managers or simply just ‘well liked’ and ‘preferred’ staff! The owner – although a very kind person - did and does not realize that most unethical practices are never a secret in a hotel. Since the management or owners accept this behavior, they are actually creating a culture of unethical employees and lose control of their business and income.

Your hotel or resort must operate with a solid ‘vision’ and ‘mission’

As a wise person said: Vision without action is a day-dream, - Action without Vision is a nightmare!

Write it down and think about it! ALWAYS refer and mentioned your vision and mission (or part of it) whenever you communicate or have any meeting with your managers and employees!  Never stop communicating!

I know hotels and resorts here in Thailand where the Vision and Mission is nicely framed on the walls, but never communicated and implemented. Everyone just follows the habits of the managers or owners.

Your hotel or resort must be ‘unique’.

Don’t copy anything! But look everywhere for inspiration! Do not copy hotel manuals, standards, Job Descriptions etc. from other hotels and resort or you will end up being just like “another basic hotel” Follow your vision and mission in the hotel and create standards and material based on that vision and mission. Trust me, this will reward you!