Now that we have covered location, brand selection, financing, and development, the last major component of a hotel is operations. After all, you’re not just building an asset, it will be a 24/7 functioning business.
Throughout this series we have reiterated how important it is to remember that at the end of the day, ownership is building an operating asset. This requires that throughout the development process, the operator is involved at every step of the way. And as construction is underway, the operator will be in constant communication with the brand to ensure that the hotel is set up for success from the get-go as described in the previous posts. Within 6-9 months before opening, the operator will hire the General Manager who will serve as the eyes and ears on site in addition to completing the several months long training and other steps required to open the hotel. Shortly after the General Manager is hired, the operator will bring on a salesperson who will handle the vast number of requirements to get sales systems up and running in addition to pounding the pavement and pre-selling the hotel to ensure a successful opening. As the hotel opening rapidly approaches, more hotel team members will be brought on board to the point that the hotel will be fully staffed a few weeks before opening. Training, training, and more training will ensure not only a successful opening but also long-term success in operations.
Among the many benefits of having an operator onboard from the very beginning is that the operator will hire team members thus avoiding any human resources (HR) or employment law risk for investors with respect to operations before and after the hotel opens. Also, as a seasoned operator, Sea Glass Hospitality Partners has the resources and qualified network to identify the best talent available to operate the hotel and oversee a successful opening. It is important to remember that a hotel only opens once, and a successful opening is crucial to the long-term viability of hotel operations. Because asset value is directly tied to the operations of a hotel, the more successful the opening, the more rapidly operations can result in increased asset value.
Thank you for joining us on this brief journey into the hotel development process. Sea Glass Hospitality Partners has the knowledge, wherewithal, and enthusiasm to work with you and your team to evaluate hotel sites and be partners every step of the way to maximize asset value for owners. We look forward to engaging with you!