Explanation of Hotel Development Stages

Publication: Dec 12, 2020


For the development of a successful business, a good idea is essential. Entering the hotel industry can be a profitable venture, but it's not easy by any means. In fact, it can be quite complex, lengthy, and expensive processes. So if you don't have the necessary skills to launch a hotel business, you can hire management or development companies to handle the project for you.

These teams will include experts who can help you select the property, obtain permits, and negotiate with local entities. It's a must if you opt for more complex projects, such as investing in a franchise or opening a resort. If you plan a hotel, you need professionals to have know-how and experience within the hospitality niche.

So what is a hotel development? It's the process involved in buying or building a facility and then turning it into a profitable business. You must adapt to the market's demands, know which type of rooms you want, location, attracting guests, and so on.

Research and Planning


Launching a hotel business is a significant undertaking. It requires careful planning and preparation to ensure that it becomes a huge success. These are the initial stages where the owners get to know the target market. They need to see the competition's offer as well.

At the research stage, the developers have a future project vision based on the data collected. They have the idea of the brand, location, design, and the guests who will come. These are some initial parameters that will be the basis of further planning.

Once the necessary data is collected, performing the project's analysis and design are coming up next. It's the moment when developers come up with a hotel concept. They help the owners choose the location, contractors, materials, room design, etc.

Budget and Financing Options


A successful hotel development requires sound planning and supervision. It also requires good money management and financing option. As with any business venture, there are certain risks. But with professional help, that shouldn't deter your project up and running. See here how to start it.

Most successful hotels have started small and gradually have expanded after success. But these days, no new accommodation can succeed with one or two rooms. It should aim for exponential growth instead. The key is to set a realistic budget and find the right financier.

Costs of hotel development increase with the complexity of the project. The economic impact of any project is directly related to the value it offers to the market. Thus, the higher the overall quality of services, the better the direct economic impact will be.

Financing is a process where the buyer and the lender are strangers with different objectives and goals. Development experts seek to find lenders with the best financing terms. They provide required papers, including the market demand for new rooms, a feasibility study, a business plan with solid projections, construction cost estimate, etc.


The operation stage is where the work on the new hotel actually begins. It includes everything from the construction or renovation of the facility to opening the doors to guests. Developers will get all permits and make sure all regulatory terms are met.

This stage has several key goals, ensuring a smooth process (productivity, safety, quality of craftsmanship, etc.). These all contribute to successful project finishing. But hotel development is not just about building and equipping a facility.

This stage also covers hiring managers and other staff members and getting them acquainted with the work process. After launching, developers help managers deals with guests and reservations, marketing, scheduling staff, keeping track of expenses, etc. They ensure building maintenance, not only in terms of the building but the quality of service too. The aim is to optimize work, but also costs.

Some tips on running a successful hotel are below:


A concrete need drives each decision about entering the hospitality industry and launching a hotel. The key objectives of each phase of its development are to achieve critical business goals. That's much easier with careful planning and coordination. Each stage has different tasks, but they all play a crucial role in helping the venture become profitable and successful.

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