Hotel Business Review Archives

Hotel owners may look to strategies designed to increase bookings, revamped marketing campaigns or cutting expenses in order to grow their business and see more profits. What many hotel owners don’t realize is that undiscovered cash flow may exist within their own property, if they know how to find it. The application of a cost segregation study may significantly reduce the hotel owner’s tax liability and provide needed cash flow for other business endeavors.

As the next generation of Asian-American hotel owners comes into leadership, should we be glad or be worried? Second-generation Asian Indian hoteliers have a great education, strong communication skills, and solid financial resources built by their first generation immigrant parents. But will their education and financial security make them too complacent and too cautious to work hard, to be bold entrepreneurs, and to match – or perhaps surpass – the business achievements of their parents? My column examines differences between first and second generation Asian-American hoteliers – and offers insight that every hospitality executive should be aware of as we work together to re-build our properties, our brands, and our industry from the recent economic recession.

Cost effectively implementing Brand Mandated Updates is driven by clearly outlining your objectives, understanding the critical elements of the brand’s program and selecting the best design and implementation teams you can locate and retain. If you can pull these elements together you will be able to effectively manage the process and get the best return for your investment.

Thousands of hoteliers will face foreclosure or even bankruptcy this year as the sluggish economy has owners falling behind on loan payments. There are no easy solutions, but there are some things you can do to avoid foreclosure or receivership -- or both. My column offers six tips to help anticipate the problem, plan a course of action, and proactively maintain control of your property. We certainly hope you will never have to use these tips, but they are a valuable start to forestalling foreclosure on your property so you can “Keep It.”

Selling your hotel can be hard enough without having to worry about hitting that perfect price. With the economy still struggling to recover from the worst recession in history, buyers tend to smell blood in the water – even if your hotel has remained profitable and your local economy is healthy. With that in mind, there are some simple things you can do to ensure your business fetches the best price possible

In today’s competitive hospitality market, it’s essential to approach improvements and renovations with a comprehensive strategy and an understanding of how you can benefit from a variety of tax deductions available to hotel owners. Can improvements actually pay for themselves through smart tax strategies like cost segregation and making energy efficient upgrades? Can you still take advantage of past renovations or somehow take a deduction for new equipment purchased or leased this year? Looking at the big picture and working with the right professionals as you plan your renovations and upgrades can provide a big payoff in tax savings and boosting your cash flow this year and in years to come.

The lodging industry has had many challenges over the past few years, but as of October 1, it can breathe a collective sigh of relief as the new debit card “swipe fees” go into effect, lowering burdensome fees charged every time a customer uses their debit card to pay for a room or other hotel services. Although these new rules can bring significant cost savings for hoteliers, it will not happen automatically. Some payments processors are hoping that the Durbin Amendment, which changed the interchange fees, will put extra money in their pockets instead of their customers. Hoteliers must educate themselves to ensure they are getting the savings they are due.

Hotel owners looking to sell their business often make a few common mistakes, ranging from not properly preparing for the sale to not offering seller financing. However, in a competitive marketplace there is not much room for error. These tips will guide you on increasing your chances of having a successful sale by paying attention to details that are often overlooked.

In 2010, the hospitality industry regained the number one spot as the top industry suffering from data breaches, accounting for 40 percent of reported incidents. As cybercriminals shift their attention to small hotels and restaurants in an effort to “play it safe,” the situation could conceivably become even more dire if hoteliers don’t proactively protect their businesses. It’s time that hoteliers confront this reality, implement effective data security measures and take the target off their backs. With the right technology and security policies, it’s easier than you might think.

Each year, many hotel owners decide to sell their business for a variety of personal and financial reasons. Whatever the cause, selling successfully requires the owner to think creatively and strategically to attract the maximum number of potential buyers and weed out those who aren't serious about buying. As the Internet has emerged as one of the most efficient and effective vehicles to publicize your business sale and attract potential buyers, part of this strategy should include an online listing. Here are some guidelines for a well thought-out and well-written listing that will allow a seller to attract more prospects and ultimately close a deal.

The traveling public, by and large, turns to the Internet when it comes to booking hotel reservations. Yet, while trying to compete for guests, independent operators often lose much-needed profit to commission fees charged by online travel agencies or by avoiding the online world altogether. Implementing direct website booking capabilities saves small and independent operators time and money, increases revenue, and provides a more secure, PCI-compliant method for accepting guest’s credit card information to hold or prepay for a reservation, allowing these establishments to truly compete in the industry and capture guests without compromising their hard-earned revenue.

These past few years have been tough on the business-for-sale market. This has put hotel owners ready to sell in a waiting game. Rather than sell for below market price, most smart hotel owners have simply been cutting unnecessary expenses, making ends meet and waiting for the market to rebound. Since the recession hit in the fall of 2008, most hotels have seen a drop in revenues and profits. The ensuing fall in purchase-price valuations only made matters worse. But 2010 saw a slight improvement in the seller market and many experts expect that 2011 will be a break out year for the business-for-sale industry. So is 2011 the year you should consider selling your hotel?

Businesses, consumers and the news media continue to throw around the terms "green building", "eco-friendly" and "green initiatives," but what do they mean and how do and/or will they affect the hospitality industry? Contrary to some naysayers, the green movement is not going away. Therefore, hospitality companies need to implement green initiatives now to keep pace with the competition. The hospitality industry has a unique opportunity to reduce the negative environmental impacts associated with guest rooms, event spaces and their general facilities through measures such as water and energy efficiency, waste management and reduction and local purchasing. As hospitality companies grow, build and expand they should also consider pursuing LEED certification. Green initiatives do not have to be costly and the hospitality industry is likely to realize a measureable return on their investment, whether in the form of energy savings or increased popularity with green conscious consumers.

Now that budget season has concluded for most operations and a plan has been made for the 2011 year, there is still much to consider for those who wish to prosper in this otherwise rather fragile economy. Having created a blueprint for the annual business in the budget, it is now important to work to stay in sync with that defined budget plan as well as the ongoing forecast on a day by day basis. What then should a property expect in daily operations information that can be reviewed in such a useful report? What is the information that Hotel Managers at all levels should utilize to make proper daily business decisions that are in line with the more detailed established budget plan for each week, month and remainder of the year?

Payroll is likely one of the biggest expenses your hotel incurs - and one that can cause the most headaches. It's one thing to have an unhappy guest, but an unhappy employee - or worse yet, a suspect government office - can have a significant impact on your business. Many of those headaches are avoidable by taking the appropriate steps from day one with the onboarding of a new hire to making changes to an employee's status, position or compensation level all the way through to retiring an employee from service.