A Few Things a Hotel Owner Can Do in a Down Economy…
11/15/12
Many hotel owners have been struggling to find their way through a down economy without drowning in the swamp of low revenues, default and foreclosure. According to Steve Van of Prism Hotels and Resorts, in a recent article in Western Real Estate Business, survival may mean getting a little dirty. By dirty I mean cleaning house by rearranging management, making renovations and doing your research on strategic pricing. While some decisions may be difficult to make, the end result could be a jump start as the economy picks up. Here is a summary of the ideas presented in the article:
1) Find, train and retain the right people in your management team. Don’t be afraid to take a good look at your current management and evaluate their effectiveness. Good leadership skills are a must.
2)Invest in renovation projects while business is slow and minimize guest disturbance.
3) Be effective with room rates. Look at current data, not just historical figures and find out when it’s best to drop and raise your room rates. Also decide what services are necessary and which ones you can do without. Keeping in mind, of course, that the customers experience at your hotel is most important.
Check out the article for more details: http://www.nwhotelinvestor.com/wp-content/uploads/2012/11/How-Hotel-Owners-Can-Weather-the-Markets-Down-Cycles.pdf