How to Start a Hotel Business in Las Vegas

Las Vegas Strip

One of the most frequently visited spots in the United States is Las Vegas, Nevada. Most of us have either seen the neon lights of the main strip in the city in person or on TV, so you know the market for hotels and casinos is already pretty intense. However, if you are interested in jumping into the hospitality industry with your own hotel, there are certainly worse locations to consider. Of course, you want to take your decision one step at a time and make sure you know exactly what you are getting into. Here are five steps to consider.

Instructions

1. Decide what type of hotel you want to have. Not all hotels are created equal. Many of the largest hotels in Las Vegas are paired with casinos and are more like resorts. On the other hand, you could choose to open a more subdued business hotel where people traveling for work in the city could stay while avoiding the tourist scene. Some families or couples might also prefer something a little less glitzy, and might enjoy staying at a quaint bed and breakfast.

2. Find a location. Your next big challenge is to locate an available space for this hotel. Stay away from the famous strip, since it's too expensive, plus the competition would undoubtedly make success difficult. Of course, location also depends on the type of hotel you're considering. You might want to open up your facility closer to a residential area or near the business district or airport. Scout out Las Vegas and think about the needs of the potential guests you hope to lure to your facility.

3. Decide to build or buy. Buying is a good option if you have the money, since you'll have all of the facilities constructed and would be able to open your hotel much faster. However, you also need to consider why the hotel is being sold in the first place. What went wrong? If the problem was location-related, you could be setting yourself up for failure. Building a new facility can be more expensive, but you'll have more location options and more control of the design.

4. Add amenities. Unless you want to be a bare-bones motel-style facility in which room service consists of vending machines, you'll want to think carefully about the types of amenities to add to your hotel. These can make a big difference in who you attract and how much you can charge. At a minimum, the Las Vegas heat makes air conditioning a must. Unless you are running a bed and breakfast, each room should have its own unit. A pool can also be a smart move, but at a huge expense. Whirlpool baths, multi-jet showers, king-size beds, flat screen TVs, satellite TV, high-quality robes and other extra touches should all be considered.

5. Hire staff. Caring for a hotel and your guests won't be easy. You'll need to bring on a number of staff members who can help you clean the rooms, check in the guests and attend to their needs. If you plan to offer room service or a continental breakfast service, you may also need to hire a cook. Remember, the competition for experienced staff is going to be intense in Las Vegas, so be prepared to pay for the best if you want to truly impress your guests.

Tips & Warnings

• Learn about maintaining your hotel business and have a 5- to 10-year business plan created (see Resources below).

Resources

• Hotel Maintenance Strategies