Golden rules for investing in hotels

first_imgThere are parameters that we can and cannot influence. It is important to pay attention that the constants have the highest possible level of quality, and the variables have a lot of room for improvement, said Orestes Fintiklis, a well-known entrepreneur from Cyprus, for Booking.com, and revealed its golden rules for investing in hotels, all of which should be taken into account when choosing a facility and the importance of reputation in the real estate industry.When we enter an investment, we must be aware that there are certain parameters that we cannot influence and that cannot be changed, such as, for example, the location, approach and structure of the building. These parameters are the so-called “constants”, while they are opposed by factors that can be influenced, “variables”. Some of these factors, which are subject to change, are sometimes within the competence of the owner such as service, cost structure and effective sales strategy. Variables that are not subject to owner control are conditioned by market rules, that is, the laws of supply and demand.In choosing a location for our investment, Fintiklis advises, we must look for facilities that have reliable constants, as well as the ability to improve variables. Namely, the potential for growth, which lies outside current cash flows, is vital. The ideal investment would certainly be one in which the constants are at a high quality level, while at the same time the variables in the competence of the owner have much room for improvement. In other words, we are looking for a hotel with a currently unfavorable market, but with a fundamental potential aimed at growth in the near future, for example with an imbalance in the relationship between supply and demand which is again in the process of recovery.It is also a risk that ultimately crystallizes good leaders. Good and strong leaders show a combination of innate abilities such as intelligence, but also a range of learned abilities that are the result of perseverance and hard work. Some of them are the ability to influence other people, patience, fairness and organizational skills.Also, the success of the investment depends on the reputation of the investor. Namely, the reputation is the result of years of service and hard work, as well as a professional team of managers with a clear name. Fintiklis warns that reputation takes years to build, and only a few moments to be lost forever.Staying focused on the goal and keeping a clear and balanced mind are key to success in today’s turbulent market. Anyone trying to grow their business should persevere and keep trying because a lot of good ideas and plans have failed solely because there was no right time for them or they are the result of bad luck. Also, we need to get the most out of our unique selling point, that is, from what sets our product apart from others and makes it special.Our goal is for guests to return to our hotel again and again. In addition to all the above, the quality of accommodation units and food should be emphasized. Extraordinary service is important, Fintiklis concludes, and extraordinary service means persistently meeting the customer’s expectations with the right attitude and a smile on his face.last_img