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How to Start a Hotel Motel or Resort Business

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Category : > New Business Setup
Posted On : Tue Oct 11th,2016

The Ultimate Guide To Start Hotel, Motel, and Resort Business

The hotel industry is highly competitive and delivers high financial results. There are a lot of creative hotel business ideas but everyone does not follow organized implementation. The challenge lies in competitive strategies and suitable business structure to register your business in the concerned state.

 What is a Hotel?

A hotel offers you both meal and accommodation until you check out. Generally, hotels are located in busy areas like railway stations, airport, and commercial centers. People prefer hotels for short stay.

What is a Resort?

A resort offers repose and recreation along with the accommodation and meals. A resort includes everything like swimming pools, spas, and beach sports. Generally, resorts are placed near the peaceful and natural areas. People prefer resorts for a long stay.

What is a Motel?

Motels are mostly located near highways for the people who need a break for a short time during travel. A motel offers basic housekeeping and meal.

To start a hotel and resort business you need to carry the following questions:

  • Where to get started to open a hotel business?
  • What should be the nature of the hotel?
  • How does the location impact the business?
  • What should be the strategy to attract the guests?
  • What can be the operational costs?
  • Do you have the necessary business license and permits?
  • The most important- Have you registered your business in the state? What business structure you prefer to register your hotel, motel, and resort business?
  • Certificate of Occupany

Decide the hotel and resort facility

Decide the type of hotel and resort type you want to start. Hotel, motel, and resort can be divided by number of factors like:

  • Size
  • Location
  • Services offered

Decide which type of hotel business you want to start

  • Budget Hotels
  • Resort
  • A Suite
  • Airport Hotels
  • Business Hotels


Bring Innovation

It is not just enough to start a hotel business; you need to bring the distinctive features and uniqueness to address your customers and guests comprehensively. You can give an amazing experience with:

  • Complimentary breakfast
  • Massage services
  • Internet services
  • Valet parking
  • Gymnasium
  • Jacuzzi
  • Swimming pool


Prepare a feasibility report

Before starting a hotel and resort business you need to conduct a research to make everything visible. It will help you in:

  • Hotel/resort site
  • Average guests
  • Experience of expert consultancy
  • Market analysis

You can also hire a professional consultant to analyze the market and basic legal requirements to open your hotel business in the state.


Certificate of Occupancy

It is required for hotels, motels and resorts, and can be obtained by the building department of your state.


Determine your Business Structure

Opening a hotel or resort business require a legal business identity under the laws of state like:

  • Do you want to start a business under sole proprietorship?
  • Want to open an LLC, Corporation, General Partnership or a Limited Partnerships


Basic Licenses and Permints To Start a Business

You need to register your hotel and resort business with all necessary permits and business license:

  • Business Name registration with the secretary of state of your county clerks office.
  • Employer Identification Number may be obtained by the Internal Revenue Service.
  • A business license is required.
  • Sales and Use tax is required in most states to start a business.
  • Operating manager license
  • License for food and alcohol
  • Hotels and resorts providing swimming pool and spa services need additional licenses for these amenities
  • Workers' Compensation and Disability Insurance for your employees


Advertising to start a hotel Business

  • Create an online appearance
  • Let your guests leave the reviews about your services
  • Contact with travel websites for hotel and resort business suggestions
  • Provide online facility of booking rooms with pictures and various packages


Additional Business License Information

City business license department can guide you through essential business requirements either your hotel or resort business comes under such permit laws or not; if not you need to get conditional-use permit that means you will follow the codes of business license department.

Get a Health Department Permit

You need this license if you are selling food. Health department may inspect the facility before issuing the permit.


A foreign chain opening a business in the USA

A foreign chain is also eligible to open a branch office in the United States.


Useful Link:


The Author of this article is a M.Phil in English Literature

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