Leverage events to optimize hotel site selection
Why site selection makes or breaks hotel success
When it comes to travelers selecting a hotel, location is the name of the game. After all, a centrally located hotel means easy access to any activities visitors need to travel to during their stay. This is why location has such a significant impact on the demand your hotel will generate throughout each season, which ultimately impacts your nightly rates and your ability to meet financial projections. Location is key to long-term success for your hotel.
3 elements to consider during the hotel site selection process
1. Does the location suit your target market?
In order to become a staple for your target market segments, you’ll need to ask pointed questions to better understand what their needs are. Where is your target market, and what type of location are they looking for? Is it a luxury experience that takes advantage of the surrounding landscape? Or is it a centrally located option right in the heart of a bustling city? The answers to these questions will help you identify your guests’ price sensitivity, must-have amenities, and preferences for transportation options.
2. Is the location supported by easy access to transportation?
One of the most important factors in site selection is accessibility, meaning how easily people can get to and from your location. The more transportation options, the better. Think rideshare availability, public transportation options, and walking and bicycle paths.
Do your due diligence to avoid selecting a neglected location, which can lead to transportation issues due to underdeveloped roads. If possible, select a location with clear visibility from the road so you can constantly advertise your brand to daily traffic. Depending on your location, parking should also be readily available– either via self-parking, or valet parking, which boosts revenue.
Besides being easy to access and park at, take into account how accessible other places are from you. Consider a location with proximity to places that people visit regularly, which brings us to our next element to consider:
3. Does the location feature any tourist attractions?
Remember, people aren’t traveling solely to stay at your hotel. Proximity to demand generators, such as tourist attractions, is what makes the location an attractive site. Look for land with proximity to local amenities that attract personal and business travelers, such as:
Landmarks and cultural attractions
Venues
Theme parks
Major events
Business or industrial parks
Restaurants/bars
Shopping
Leverage data to understand location-based demand
One unique way leading hotels and accommodation providers are optimizing their site selection is with event data – in other words, choosing locations based on demand from nearby venues and areas that have many events. Events drive people movement. For example, the Ryder Cup is a 3-day golf competition that drives $130 million in economic impact to eastern Wisconsin between Milwaukee and Green Bay, due in part to a demand for approximately 30,000 hotel rooms (Source).
Understanding how events impact certain regions – both historically and in the future – gives accommodation providers the demand insight needed to determine whether a location will be successful long term, or not. Sign up for your free PredictHQ account today to better understand event impact around the locations you’re thinking about investing in.
