Choosing the right site for your hotel is one of the most important decisions you’ll make as a hotelier.

I’ll explore the key factors to consider when selecting your hotel location.

Your hotel’s site will influence everything—from attracting guests to ensuring a solid return on investment. But how do you decide where to set up? Whether you’re starting fresh or looking to expand, finding that perfect spot can feel daunting. But don’t worry; I’ve got you covered.

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From understanding guest demographics to analysing the competition and gauging future growth potential, you’ll gain valuable insights that can save you time, money, and stress.

Know Your Target Market

Who are you hoping to attract? This is the question that should guide your decision-making process from the start. Different types of hotels cater to different types of travellers.

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If you’re planning to open a luxury boutique hotel, you’ll want to focus on high-traffic areas like city centres, near major attractions or upscale neighbourhoods. On the other hand, if you’re aiming for a budget-friendly hotel, proximity to transportation hubs like airports or highways might be a bigger draw.

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For example, I once worked with a hotel owner who had dreams of opening a high-end retreat. However, he made the mistake of choosing a site far from any nearby attractions or amenities. The result? A beautiful hotel with no guests. Understanding who you want to serve is key. Would a corporate traveller appreciate being close to convention centres or business districts? Would a family prefer being near a theme park or beach?

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Accessibility & Visibility Matter

Even the best hotel won’t succeed if it’s difficult to find or get to. Location is about more than just the address—it’s about ease of access. Guests expect convenience, and if they’re spending their first 30 minutes circling the block trying to find your property, their frustration might already outweigh their excitement.

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Hotels near major highways, airports, train stations, or popular tourist attractions generally fare better because they’re more accessible. But visibility is just as crucial. If potential guests can’t easily spot your hotel from the road, you might lose out to a more visible competitor.

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Now, I know what you’re thinking—this seems obvious, right? Yet I’ve seen too many hotels fail because they were tucked away behind other buildings or buried in hard-to-find locations. You might have the most fantastic amenities in the world, but if people can’t see you, they won’t come.

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Study The Local Competition

Your hotel’s location isn’t just about where you are, it’s also about who else is around you. Competitor analysis is essential. Look at other hotels in the area: What are their strengths and weaknesses? What gaps can you fill in the local market?

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For instance, if the neighbouring hotels all cater to business travellers, you might have an opportunity to focus on leisure or family-oriented stays. Alternatively, if the area is saturated with economy hotels, maybe there’s a niche for something more upmarket.

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When studying your competition, don’t forget to check online reviews. Guests are brutally honest online, and these reviews can provide valuable insights into what works—and what doesn’t—in the local market.

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Consider Future Growth Potential

The perfect hotel location isn’t just about what works today, it’s about long-term potential. Is the area likely to grow and attract more tourists, businesses, or events? Are there any upcoming developments or infrastructure projects that could boost the local economy? These factors could significantly affect the future success of your hotel.

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I once helped a hotel owner who chose a site based on an upcoming convention centre construction. It took a few years, but when the centre opened, his hotel’s bookings skyrocketed. He was ahead of the game, and his foresight paid off handsomely.

Do your homework. Look into city plans, and speak with local authorities to see if any new projects are in the pipeline. A location with potential for future growth is worth its weight in gold.

Safety & Security Are Key

No one wants to stay in an area that feels unsafe. Guest safety should be a top priority when considering any hotel location. Research crime rates in the area and consider whether it’s a neighbourhood where your guests will feel comfortable.

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Besides physical security, look into the hotel’s ability to withstand natural disasters. Flood-prone areas, for example, can cause a major headache. Insurance premiums will be higher, and you may face higher maintenance costs long term. Choose a location that’s both safe and secure to avoid unnecessary stress for you and your guests.

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Proximity To Amenities & Attractions

Travellers often decide hotels based on proximity to attractions or amenities like restaurants, shopping centres, or conference halls. If you’re too far removed from key spots, you might struggle to attract guests.

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Take, for instance, a small boutique hotel I helped with consulting. They were located in a lovely area, but it was miles away from anything of note—no landmarks, no public transport, not even a restaurant nearby. Sure, the setting was scenic, but guests complained about having to travel too far to find food or entertainment.

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Guests want convenience. If they can walk to a popular attraction or enjoy a variety of nearby dining options, they’ll be much happier—and likely to leave a glowing review.

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Environmental & Social Impact

Finally, the environment and community matter. Sustainable travel is a growing trend, and travellers are paying more attention to the environmental and social impact of where they stay. Choosing a location that fits into a community’s fabric or one that embraces green initiatives could be a major selling point.

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Additionally, think about how your hotel’s presence might affect the local community. Will your guests clash with the locals, or will they blend in? This can have a lasting impact on your hotel’s reputation.

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Are you ready to take your hotel business to new heights? Get your hands on our comprehensive guide, ‘Unlocking Hospitality Success: 25 Must-Know Insights for Independent Hotel Owners’. It’s packed with the wisdom you need to stand out in the crowded hospitality market. Think of it as your secret weapon to outshine the competition. Download your free copy now – just follow the link in the show notes!

What’s Your Experience?

Have you faced any location challenges when setting up or running your hotel?

I’d love to hear your thoughts in the comments below!

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In Conclusion

Choosing the perfect hotel location involves balancing guest needs, accessibility, competition, and long-term growth. It’s not just about finding a beautiful setting; it’s about selecting a site that aligns with your hotel’s goals and target market.

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Take your time, do the research, and weigh all the factors. By carefully considering each element, you’ll set yourself—and your hotel—up for success.

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In the next episode, I’ll talk about Steps to Navigating Hotel Construction.