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Steps In Carrying Out Hotel Development Keep this in mind, no matter what type of hotel it is being built, the process for hotel development will always follow the same direction. On the other hand, there are a number of things that may possibly change or would have to be changed especially if you’re eyeing for uniqueness in your project. Choosing where you plan to build the hotel is typically the first step and is also a two fold procedure. It is a must to figure out which city the hotel will be erected and also, to which part of that city it’ll be built. Well, the answer to these questions will fall to the clientele. As a great example of this, for a city that is popular for its business district, you might want to build a hotel that focuses on the business customers. It will have to be situated in central place in that city wherein most headquarters for businesses are located. Your next step in your hotel development is to acquire a financing. In order to do this, you will have to come up with a strong business plan that consist of things similar to cost per room, operating the hotel, the expected rates of occupancy and the kinds of rates that you’re planning to charge per room. You need to have thorough idea of how much your expenses would be whenever possible. The reason why this is important is figuring out how much cash you need to secure.
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What’s more, you have to take into mind the cost of land you’re going to build on, the associated legal fees with development, cost of things similar to furnishing the hotel and the general construction cost. There are a couple of ways to finance the building of hotel; it may be from your investors or from business loans.
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Always remember that your go signal for buying the land and getting zoning variances that are needed, securing the franchise and employing a contractor is when the financing is already secured. And when everything is finally settled, you will have to decide whether you would build new building from the very start or remodel an old building. In addition to that, you also need to decide how your hotel will look and feel. Building new hotel from scratch would be a very demanding task but it’ll give you more control over the process. On the other hand, franchising national brands will be the best move that you can make if you wish to save time and money on the design fees while being able to attract more lenders.