If you are interested in getting involved hotel ownership, the first question worth asking yourself is…
“What type of hotel owner am I prepared to be?”
By nature, hospitality is a hands on business and one that is very immersive. Its personal. 1-to-1-multiplied-by-many is a summary of the mode of interaction.
There are so many contributing factors within the value chain, that a great deal of attention to detail in all areasis required.
Generally speaking, the commitment of hotel ownership lies along a spectrum of personal involvement, ranging from:
Below are some common forms of hotel ownership:
6 common hotel ownership definitions
- Stockholder – relatively speaking, a dissociated form of hotel ownership. An on-paper owner, by way of publicly floated company stock. Input for operation is by way of vote via AGM.
- Joint investor owner – as one of a number of investors, you have a shared interest in company shares & dividend alongside your fellow investors. You have a seat on the executive board of the business and provide steer to overarching direction. The board devolves instruction to management team for execution.
- Sole investor owner – with full ownership responsibility, this model of ownership is onerous to say the least. All avenues of escalation which supersede management fall on your plate. Therefore, experience and operational knowledge/competency are greater dependencies in this mold.
- Absentee owner – absent from the the day to day running of the hotel, the absentee owner is not on the ground typically, but should never be mistaken for being uninvolved. Their site visits are purposed and planned in advanced to add significant mission value to management team and staff. Operational and managerial experience counts for a lot with this model – being able to boost the confidence of staff and add value with only minimal face-to-face interaction, yet making it all count when you have occasion.
- Owner manager – the head of all operations for the hotel. A hands-on daily general manager, as well as owner of the hotel responding to all of the high level operational issues of the business as a ready and able senior responder. A day job, on-site during office hours only.
- Live-in owner -the most integrated hotel ownership model. This is an owner who literally lives within the walls and halls of the business and therefore is the eyes and ears of every sq.in. They live at work so there is little scope to get away from the continually demand of the business. Staff and customers are assured by knowing the owner is almost continually available. Often coupled with an open door policy of access and approach, such owners are called to give intimate, husbandman-like level of care to team members – nurturing a close-knit, family-like dynamic throughout. This closeness would rub off on guests. A multidisciplinary, business all-rounder best describes such an owner, who is equally able to tighten leaky faucets as they are updating room rate discounts within their direct booking platform.