Hotel Investment News Blog
The hotel investment news blog by Vojo Ventures, provides practical tips to hotel investors on topic like funding, financing, due-diligence, acquisition and other worthy news and articles.
We have been faced with this challenge many times, and it seems it oftenboils down to the same. It might surprise you that generally the problem is due to a lack of insight in independent hotels on how the travel industry really works. As experts at hotel investment, we know that there is also a shortage of understanding in the business in general. As a result hotel assets become distressed and are in dire need to be turned around.
Hospitality is a multi-billion dollar business in which finances weigh heavily. The ultimate goal has always been to increase revenue and achieve a strong return-on-investment. But until you get there, there can be a long and sometimes bumpy road ahead. Many hotels nowadays fall short when it comes to meeting their financial goals and they are likely to fail. This can be traced back to a multitude of reasons, therefore, we went into a few of the most important reasons hotel investments fail, along with our friends at TrustYou.
During the years, the TrustYou guest feedback platform has provided the company with interesting insights into the hospitality business and their expertise in the field of reputation management adds valuable data to this equation, meant to help hoteliers avoid losing capital and opportunities.
Hotel due diligence is the thorough and wide-ranging investigation into a hotel property when considering for acquisition. It is an essential step for would-be hotel buyers as it analyses all aspects of a hotel’s business. This lets the buyer know each and every aspect of the hotel and helps avoid any surprises that could come later. Ultimately, it informs the buyer’s purchasing decision, and can help guide hotel strategy.
In this article we look at the five main areas to consider when carrying out your own hotel due diligence. Before we begin, it must be said that hotel due diligence should never be rushed or compromised in any way. It is a crucial step of the hotel investment process that must be all-encompassing and analytical. If not, it can negatively impact your ROI.