How to Run a Thriving Lodging Business: Do You Have What It Takes?

Running a successful hotel is both rewarding and demanding. Whether you’re hands-on or prefer to delegate, being a property owner requires strong leadership, a capable team, and efficient technology to ensure smooth operations. Here’s a guide to help you understand the core models of hotel management, organizational structures, and the technology essential to running a modern hotel.

Three Management Models
Hotels are typically managed under one of the following models:

1. Independent Hotel Ownership
In this model, the hotel owner directly oversees the property and its operations. It’s perfect for those who want full control over branding, guest experience, and day-to-day management. However, the independence requires significant effort to establish policies, build a reputation, and attract guests without the support of a known brand. Owners often manage operations themselves or leave it to their management team, holding regular meetings to provide guidance.

A Typical Day for an Independent Owner:

• 9 a.m.: Review the arrivals report for important guests.
• 10 a.m.: Weekly performance meeting with the management team.
• 1 p.m.: Meet with HR and the general manager to review staffing.
• 3 p.m.: Property walk-through to plan renovations.
• 6 p.m.: Host a travel journalist at the hotel’s restaurant.

2. Third-Party Management
Some owners delegate the daily operations of their property to professional management companies like Hilton or smaller, regional firms. These companies provide standardized procedures, training, and operational expertise. It’s a great option for those with little hospitality experience or who prefer a hands-off approach.

A Typical Day for an Owner Using a Management Company:

• 9 a.m.: Review the performance report.
• 11 a.m.: Meet a candidate for the general manager position
• 1 p.m.: Review updates on privacy policies with the team.
• 2 p.m.: Discuss the budget with the financial controller.
• 4 p.m.: Join a meeting with other regional property owners.

3. Franchise Model
Franchise hotels operate under well-known brands like Holiday Inn or Marriott’s Autograph Collection. While owners retain a level of autonomy, they benefit from the established reputation, marketing, and reservation systems of the franchise. It offers a balance between independence and brand support.

A Typical Day for a Franchise Hotel Owner:

• 9 a.m: Review arrivals and loyalty member preferences.
• 11 a.m.: Tour the property with a brand representative.
• 1 p.m.: Analyze guest reviews from the franchise portal.
• 2 p.m.: Process the monthly franchise fee invoice.
• 4 p.m.: Join a brand-wide regional meeting with fellow franchisees.

Hotel Organizational Structure
Hotels are split into “front of house” (guest-facing areas like the lobby and restaurants) and “back of house” (staff-only areas like kitchens and storage rooms). Employees are organized by department, with each reporting to a manager, who then reports to the general manager (GM). The GM reports to the owner or management company. Here’s a breakdown of the main departments and their respective technology tools.

Front Office
The front office handles guest check-ins, inquiries, and other guest services. The team includes front desk staff, guest services, and concierges.

Technology Needs:

• Property Management System (PMS)
• Mobile check-in apps
• Keyless room entry systems
• Guest engagement and feedback software

Housekeeping
Housekeeping oversees cleaning and maintaining guest rooms and public spaces.

Technology Needs:
– Housekeeping management software to track tasks and room turnover

Maintenance
The maintenance team ensures all equipment, from HVAC to plumbing, runs smoothly and handles repairs.

Technology Needs:

• Maintenance management software
• Energy management systems for optimizing resources

Food & Beverage
This department manages everything from the hotel’s restaurant to room service.

Technology Needs:

• Point of Sales (POS) systems
• Digital menus and mobile ordering apps
• Inventory control systems

Sales, Marketing, and Revenue Management
These teams drive bookings through marketing, manage room rates, and monitor performance.

Technology Needs:

• Central reservations system (CRS)
• Rate management tools
• Website booking engines
• Customer Relationship Management (CRM) systems

Human Resources
HR manages hiring, training, and employee well-being.

Technology Needs:

• Applicant tracking software
• Employee engagement tools

Accounting
Accounting handles budgets, financial reports, payroll, and purchasing.

Technology Needs:

• Accounting and payroll software
• Invoicing and taxation systems

The Power of an Integrated Platform
Many hotels rely on separate systems for various departments, often up to 20 different technology solutions. A more efficient approach is to use an integrated platform that connects all essential tools in one system. This setup allows easier access to real-time data and improves operational efficiency across the property.

7 Tips for Running a Successful Hotel
1. Have a Clear Vision and Direction: Leadership is key to keeping your team focused. Define your hotel’s vision, values, and goals, and ensure they are woven into daily operations.

2. Hire and Retain Talented Staff: Offering competitive wages, a positive work environment, and development opportunities helps attract and keep skilled employees.

3. Establish Strong Policies and Procedures: Standard operating procedures (SOPs) ensure consistency. Support staff with proper training to deliver excellent service.

4. Invest in the Guest Experience: A great guest experience starts with friendly service, clean rooms, and comfortable amenities.

5. Solicit Guest Feedback: Regularly ask for feedback and use it to improve operations and guest satisfaction.

6. Leverage Technology: Use technology to automate tasks, streamline operations, and enhance the guest experience.

7. Monitor Reports for Better Decisions: Use data and reporting tools to stay informed about performance, guest preferences, and financials.

By combining strong leadership, smart technology, and a clear operational strategy, you can run a successful and thriving lodging business.