Before the doors open: 5 master keys to optimize hotel pre-opening
I dare say there’s nothing quite as exhilarating as the opening of a new hotel. The excitement of unveiling a new space for guests to engage and enjoy, coupled with the sense of fulfilment in bringing a vision to life, is unmatched.
When the hotel doors finally swing open, they usher in not just your first guests but also a future of endless possibilities, from creating memorable experiences to fulfilling business and revenue aspirations.
As a hotelier-turned-hotel asset manager, I’ve been involved in eight hotel openings in the past four years alone; this doesn’t include my time in hotel operations where I’ve been in several openings, re-opening exercises. They all have been exhilarating to say the least. My team and I know from first-hand experience that the pre-opening phase is mission critical. It’s where the foundation for long-term success is laid — physically, strategically and operationally — but it’s also the toughest to crack.
Hotel owners and developers have to manage a myriad of partners, often with conflicting priorities. Project development, for example, can be at odds with operational considerations, as the former focuses on the physical building’s timelines, budgets and design while the latter must think of feasibility, functionality and guest experience.
As if striking a balance between the two isn’t challenging enough, here’s the cold, hard truth: you only have one chance to get it right.
With the stakes this high, my team and I have aggregated our experience to develop five sets of ‘master keys’ that we use to help hotel owners and developers unlock maximum value from the pre-opening process.
1. Bring in the right team, at the right time.
Onboarding executives who align with your vision is absolutely critical. From the General Manager at the helm, to commercial, financial and people leaders, this initial team must come together to create a framework for success.
Timing is everything here — bringing them onboard too early can hinder their ability to make decisions that rely on later stages of the project, while waiting too long will deprive them of the runway they need to develop a thoughtful strategic and operational plan.
2. Make your plans clear and keep stakeholders near.
Clear plans, along with defined accountability for stakeholders, are vital for a successful pre-opening journey. These include financial plans like budgets, especially since costs associated with team onboarding, operational ramp-up and marketing can escalate quickly. Having access to market benchmark data can be a game changer, as it affords you insights into industry standards and helps you assess if you’re overspending or investing in the wrong areas at the wrong time.
On a related note, here’s a word of caution: hotel opening delays are often project related. While these are beyond the control of the operational team, they tend to get entangled in the project side of things too early, leaving priorities in the operational critical path incomplete.
We see this time and time again — when priorities are misaligned, key items fall through the cracks. This not only impacts the hotel’s opening; it can also have a long-tail effect that lasts 12 to 18 months before plans are back on track, especially when the first operating budget is built on the business plan.
3. Discern what adds value, and what doesn’t.
In today’s highly saturated and highly competitive landscape, hotels need to be able to differentiate themselves with a strong and unique value proposition. Rather than replicating the long list of items that hotels typically purchase, the crux is to focus on what truly adds value to the experience you want to deliver while being cost effective on ownership spend.
While it is easy to fall into the trap of thinking that every item on the Operating Supply & Equipment list is essential, for example, what’s really needed is a careful assessment. Getting granular on the items and quantities, balancing these with brand standards, product longevity and relationship to the guest experience, is a painstaking exercise but one that helps you prioritise investments that will reap returns.
4. Think bespoke, not recycled.
If you want a strategic advantage in a crowded market, you need a bespoke strategy, not one that has been recycled. This starts with a clear business plan that not only outlines what makes your hotel different, but also explains why and how it can be financially, commercially, and operationally successful in the medium-to-long term.
This often proves challenging for many hotel owners and developers because it requires deep cross-functional expertise. Achieving alignment with internal stakeholders while drawing on external advisors for operator-agnostic perspectives, market intelligence and proven best practices can help ensure that your strategic plan is well-informed and geared towards profitability.
5. Prepare for plans to be derailed.
We always advise our clients to accept, from the get-go, that things will very likely not go as planned. Even with the most robust, well-thought-out plans, the pre-opening journey is likely to involve roadblocks, potholes and detours.
Backup plans are a must. It’s valuable to have players on your team with the experience and foresight to catch issues before they arise. From scenario planning to reforecasting budgets, this not only prepares you to expect the unexpected but, more importantly, improves how swiftly and effectively you respond as circumstances change.
With hotel pipelines across the region expanding at a steady pace, standing out from the competition requires more than just opening doors — it’s about opening them right. Acing the hotel pre-opening process sets the stage for a smoother ramp-up and faster path to stabilisation. With the right expertise on your side, the journey to a successful opening and sustained success becomes that much easier.
