Thursday, March 10, 2011

How to make resort hotels profitable?

Reporting from MIPIM 2011: How to make resort hotels profitable?

Typically resort hotels require a higher investment per room than city hotels because of the expectations that come with resorts. For instance, resort hotels are expected to have larger rooms to accommodate for longer stays. Additionally, resorts are expected to provide a more vacation friendly setting. Resorts also require an increased investment in restaurants, spas and other amenities because of their remote locations.

One way in which hotel developers are working to increase profits is by developing resorts that are both vacation and business friendly. By accommodating business travelers and vacationers, resorts are able to increase their profits during the off-peak days of the year. In order to attract the business traveler, resort developers look to provide spaces that can function as both event and conference facilities. The transition to combine business amenities with resort amenities has seen success in some markets. However, it is important to note that this strategy can not be utilized in markets that have little business interaction in the surrounding areas. Golf, spa services, and the attraction of sporting events can also be key drivers of profits during the off-peak season.

Video via MIPIM World. For more, visit the official conference blog at


  1. As might not be expected, the hotels achieving the highest profit margin in each category achieved total revenues (measured on a per available room basis) less than the average for all hotels. While the lack of food and beverage revenue would explain this occurrence for full-service hotels, it can not be the reason for limited-service properties and several all-suite properties.

  2. All of this obviously takes some time and money, so it's ok to start slow. I'd say at the bare minimum you need good maintenance, a good selection of buffet tables, a pool, and a hot tub. Then just keep going until you can afford the other things.

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