Lack of Room Demand is Killing your Hotel Business
As a direct result of this on-going COVID-19 Pandemic, international travels are restricted. This means to say that international tourist arrivals have dropped very drastically. In addition, inter-state travels are also adversely affected. Business and Corporate Professionals would only plan to go on business trips and stay in hotels if they are absolutely necessary. Of course, local/domestic leisure travellers and families are extremely cautious about moving around during this COVID-19 crisis. In conclusion, the demand for hotel rooms has decreased very significantly.
REASON NO. 2
Low Room Pricing is killing your Hotel Business
During this challenging times, we are very certain that price wars are taking place in your geographical location of competition. Aggressive promotions and heavy price discounting are definitely eating into your profit margins. Yes! In the short run, your main concern is to generate enough cash flow to support the hotel business operations. Your key focus is not about profits. However, with low room pricing, the big question is – How long can your business operations last? Next 3 months, next 6 months?? Very soon your hotel will not be able to sustain the business…
High Operating Cost is Killing your Hotel Business
To ensure that your hotel business is sustainable, your monthly revenue or collection must consistently exceed the cost of operation. However, the truth is – to the majority of the budget, business and boutique hotels, this is Mission Impossible, especially if you have to pay fixed rental every month or you need to service your loan repayments. Of course, in addition you still have to worry about your hotel’s utility bills, laundry cost, cleaning and disinfecting cost, staff cost, OTA commissions and a long list of bills that you need to pay
Staffing is Killing your Hotel Business
Many budget, business and boutique hotels have major staffing issues. High Staff turnover may be one of your biggest headaches. On one hand, the staff do not stay for too long because the pay is not attractive enough and they have to work long hours. On the other hand, your hotel cannot afford to pay higher salary because your business is not exactly doing well. This scenario is very common. In addition, many of your front office and housekeeping staff may not have the adequate level of knowledge/skills to effectively discharge their key result areas and to comply with the required standard operating procedures. The bottom line is – staffing can be very stressful for you
The Future is Killing your Hotel Business
This COVID-19 virus is not going to go away anytime in the near future. In fact, the virus will be around for the next – at least 12 to 18 months. In other words, your hotel business is not going to recover so fast. Therefore, the future of your hotel business is definitely very bleak. It is not encouraging at all
If you do not have concrete solutions to address the 5 Reasons that we have shared, there is no point in continuing your hotel business. You might as well Sell your Hotel Business. By delaying your decision, you will end up losing more money. That’s it. Straight to the point
What We Can Do For You?
Once you have made up your mind to sell your hotel business, Talk to us. For your information, we are Not Property Agents. We are Hotel Business Enhancement Consultants, with 38 years of experience offering Hotel Business Consulting, Hotel Management and Hotel Operation Service/Solutions especially to Budget, Business and Boutique Hotels. Of course, we do collaborate with Property Agents.
|Step 1||–||We will carry out a Hotel Business Audit to determine the Real Potential and Market Value of your business in your geographical location of competition over the next 3 to 5 years|
|Step 2||–||We will assist you to effectively package your hotel business|
|Step 3||–||We will source for buyers for you. Most important, we will assist you to secure a fair and reasonable price for your budget, business and boutique hotel during this highly challenging times|
At present, we are working with numerous Hotel Business Owners. An example of a Hotel Business Sale that we are currently facilitating is listed below –
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