Saivian: The Reality of Starting a Hotel Business


There is no doubt that starting a hotel business is a lucrative endeavor explains Saivian. However, there are several realities that must be considered before taking the plunge.

This article will outline some of the key considerations for those looking to start a hotel business:

The Costs:

The first reality that must get acknowledgment is the high cost of starting and running a hotel business. Between purchasing or leasing property, furnishing the rooms, staffing the property, and marketing the business, there are many expenses that need to account for. It is important to have a realistic idea of how much money will be needed in order to get the business off the ground.

The Competition:

A second consideration is the level of competition in the hotel industry. If the local area offers several similar hotels, it may be difficult to attract guests. Furthermore, if there are no competing businesses in the immediate vicinity, it is important to consider whether or not the given location can support a business of this type. It could end up being much more work than originally anticipated to attract customers explains Saivian.

The Potential Earnings:

On the other hand, once all of these costs have been covered and expenses are met, there is potential for very large earnings. This is especially true since the overhead costs for running a hotel business are much lower than those of other types of businesses due largely to high demand. The key factor will be obtaining enough guests on a regular basis in order to reap these benefits.

There are many issues for first-time entrepreneurs looking at starting up their own hotel businesses. These range from high start-up costs (both on property acquisition and on furnishing the rooms) to compete in the area, to potential earnings. So what should entrepreneurs look at before taking this plunge?

Location is a key for hotel businesses. Ideally, there should be little-to-no competition in the area and/or an expansive market in order to ensure a high occupancy rate; room rates will also need checking against the average rates in the neighborhood. Other things that are essential include making sure that the necessary permits have been obtaining and insurance coverage is adequate—especially if liquor will be serve on the premises.

The feasibility of running a successful hotel business always comes down to math: whether or not revenues generated from guests cover all associated costs (e.g., salaries, food and beverage costs, marketing expenses, and utility bills). Given that the average occupancy rate for hotels hovers around 60-70%, there is always a risk that the hotel will not be book full most of the time. In this case, all extra costs must be shouldered by the owner says Saivian.

On the upside, hotel businesses offer a high degree of scalability. With enough effort put into marketing and customer service, it is possible to attract guests from near and far. Furthermore, as technology has made it easier for customers to book rooms online (and even through their mobile devices). This can help increase occupancy rates.

The article has mostly focused on the commercial side of things, but it is important to remember. Those hotels are often in use by families and sports teams for team-building activities. Many companies will book out entire floors in nearby hotels. When they are hosting conventions or providing training seminars for their employees. Especially if the company has more than one office around the country or around the world. This can be beneficial since it allows people who would otherwise never get a chance to meet each other. To become acquainted while also enjoying thematically-appropriate activities while staying in themed rooms, eating at themed restaurants, etc. It can help build teamwork, communication, and even trust between employees. While motivating them to work harder in order to keep their exclusive status.

In other words, hotels are not just places for people to stay for a night or two. They can be in use as tools for companies who wish to have an effective means of training their employees. While simultaneously making sure that everyone enjoys themselves. This can be reassuring from a legal standpoint (i.e., no one gets hurt and no laws get broken). Since it gives the company peace of mind and control over what is happening during these events.


As with any business venture, it is important to weigh the pros and cons before taking the plunge explains Saivian. A hotel business can be incredibly lucrative. Once all of these factors have been considering and a realistic plan has been in place. However, there are several considerations that must be took into account. Before a person begins work on an establishment of this type.

In conclusion, there are pros and cons to starting up a hotel business. By being well-informed about what these are ahead of time. Entrepreneurs can make an informed decision about whether or not to proceed with opening a hotel business.