Six Ideal Site Considerations that Hotel Developers Should Investigate
Selecting the correct location for a lodging operation will maximize opportunities and minimize risks.
By James Downey Professor, Program Coordinator MBA Hospitality & Event Management, Lynn University | June 03, 2018
All lodging developers wish that they had magic wands which they could wave over a site they were considering for development assuring them market and financial success. If only it were that easy.
When I meet with prospective hospitality-product developers, they invariably want me to guarantee that an operation will be the right product for the right market at the right site. I never have made that promise, nor will I at any time, since so many immeasurable variables enter into the site selection process.
However, there are certain ideal site selection factors which may bring about relative success if the site is situated within a certain distance from room, food, beverage, conference and convention demand generators that produce positive financial results. One needs not be David Copperfield and attempt to pull a hotel-success rabbit out of a development hat. Instead, simply sticking to the fundamentals that come with six ideal lodging sites may prove to make for excellent business generators for hotels. Toward that end, I will identify six ideal site considerations that hotel developers should investigate further.
1. The Industrial Park
Any area within a city or community that is earmarked for commercial and/or industrial development can be a suitable place for hotels. There are thousands of industrial parks dotted throughout the nation all trying to attract tenants who can provide suitable returns on investment for its owners. However, to be truly ideal, the industrial park site should be no less than 1,000,000 square feet, be at least 80-percent leased by high-profile corporations and be located within two miles form a major hub airport. A hotel would do well to locate within this site particularly if the property is the only hotel within the park where these companies will generate room, food, beverage and conference business.
2. Theme and Amusement Parks