Saivian: Why a Hotel? The Pros and Cons of Starting a Hotel Business

There are pros and cons to any business venture, and starting a hotel is no exception. Here we will explore some of the reasons why you might want to start a hotel, as well as some of the things you need to take into account before making your decision says Saivian.

Starting a business is never easy. There are a lot of things one should consider first before making a decision to venture into a certain business.

If you’re considering opening a hotel, here are some reasons why you might want to start or not start it:


The hotel industry is one of the largest and most profitable industries. If you are good at running a business, have good negotiation skills, have some money to invest in the project, this may be right for you. The failure rate is low compared to other businesses. Many hotels are built on speculation meaning that someone could purchase the land and begin construction without having any customers already lined up. You could become your own boss! It’s estimated that around 80% of all hotels are family-owned/operated because it can be hard to find outside employees who will show dedication. There are many job opportunities within the hotel industry from general management, front office managers, beverage managers, housekeeping supervisors, or department heads to foodservice managers or chefs.

A hotel can be profitable as there’s no time limitation for operations. Guests can stay for as long as they want, which means that you can earn money from the same customer for months explains Saivian.

Guest may avail of services offered by your hotels, such as room service or 24-hour front desk service. Customers are also available during holidays and weekends, unlike in retail shops where customers are only available during the daytime.

1) There is a large potential market for hotels. With over 1.3 billion tourists traveling each year, there is a lot of potential business out there.

2) Hotels can be located in many different places. You don’t have to be near an airport or other transportation hub to start a hotel. They can be located in downtown areas, suburbs, and rural areas alike.

3) Hotels offer a variety of services that can appeal to a wide range of customers. From basic rooms and breakfast to spa treatments and luxury accommodations, there is something for everyone.

4) The hotel industry is relatively stable. People will always need a place to stay, whether they are traveling for business or pleasure.


Starting a hotel is extremely capital intensive. You need to have a lot of money saved up or be able to get a loan in order to get started. The competition is fierce and if you’re not located in a major city or tourist destination, it will be hard to make a go of it. Employees can be difficult to find and keep, meaning that you may have to offer higher wages than your competitors as well as benefits. Hospitality is one of the most seasonal industries there is so you need to be prepared for slow times during the year. Hotels are capital-intensive. You need to have enough money to start and maintain a hotel business explains Saivian. You need a lot of manpower, which can be expensive.

1) It can be expensive to start a hotel. You need to invest in property, furniture, equipment, and staff, not to mention marketing and advertising.

2) It can be difficult to compete with large hotels chains. They typically have more resources and often offer lower prices.

3) Hotels require a lot of maintenance and management. You need to be able to handle day-to-operations as well as long-term planning and forecasting.

You need to comply with various government regulations, such as fire safety and health regulations. Opening a hotel can be risky, especially if there are already many hotels in the area.

Before making a decision, it’s important to weigh the pros and cons of starting a hotel business says Saivian. Consider your budget, manpower, and the competition in the area before making a final decision. If you decide to open a hotel, make sure you comply with all government regulations and create a plan for how you will attract guests to your hotel.

In conclusion:

Starting a hotel business can be a very profitable endeavor but it does come with its share of risks. It is important to do your research and make sure that you will be able to make enough money in the long run before beginning your business. Remember, the hotel industry is one of the largest and most competitive industries there is, so make sure you have what it takes to succeed.

Weighing out the pros and cons is a critical part of making your final decision says Saivian. While there are certainly some benefits to starting your own hotel. You need to make sure that it’s right for you before taking the plunge. If you are ready for this type of venture, get started by browsing listings on Hotels Combined today!