10 Red Flags to Watch for When Choosing a Hotel Site

10 Red Flags to Watch for When Choosing a Hotel Site-077

10 Red Flags to Watch for When Choosing a Hotel Site-077

10 Red Flags to Watch for When Choosing a Hotel Site

That cheap property might come with a hidden moat—and no drawbridge.
I will share how to uncover hidden risks of choosing a hotel site before they sink your hotel dreams.

Choosing a hotel site feels like house hunting on steroids. You fall in love with the view, the neighbourhood buzz, maybe even the quaint little coffee shop next door. But here’s the kicker—just like dating, charm can mask chaos. And once you’ve signed on that dotted line, you’re in it for the long haul.

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This episode’s for the independent hotel owner who’s gearing up to buy or build but wants to avoid costly regrets. We’re breaking down 10 red flags to watch for when choosing your hotel site. These aren’t just hypotheticals—they’re the real-world tripwires that many hoteliers stumble over.

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Whether you’re just getting started or thinking of expanding, the insights here can help you avoid a misstep that drains your budget and your energy. More practical guidance like this can be found in “The Hotel Owner’s Roadmap: Start, Manage, & Grow” course.

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1. The Land is Cheap… Too Cheap

If a property’s price looks too good to be true, it probably is. There’s usually a reason, and it’s rarely a good one. Environmental issues, zoning restrictions, or hidden costs like road access and utilities can be lurking.

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One hopeful hotelier found a dream spot by the ocean. Beautiful, serene—and falling into the sea. Erosion was gobbling up the cliffside at 3 metres a year. Always ask: Why is this so cheap?

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2. Unstable or Eroding Ground

If you’re eyeing a picturesque cliff or riverfront, get a geotechnical report. Slippery slopes aren’t just metaphors here—they can wipe out your investment. Don’t assume the view will stay where it is.

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3. Prone to Flooding

Some spots only show their true colours when the heavens open. Visit your site in all weather and talk to the locals. Is that lush green area a former swamp? Is the basement of that building still drying out from last year’s storm?

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4. It’s on the Wrong Side of Town

A cheap site in an industrial zone might be great for a warehouse—not a romantic getaway. Consider what surrounds your site. Heavy traffic, noisy factories, or even livestock smells can tank your guest satisfaction.

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5. Bad Accessibility

You could have a castle with velvet sheets and chocolate fountains, but if guests need four transfers and a goat to get there, it’s a hard pass. Are the roads decent? Is public transport nearby? Is signage clear?

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6. No Neighbourhood Appeal

Guests aren’t just staying at your hotel—they’re staying in the area. Are there local attractions, restaurants, walking paths? If the neighbourhood’s best offering is a petrol station, rethink it.

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7. Inconsistent Zoning Laws

You don’t want to fight city hall after you’ve sunk money into designs. Check if the site is zoned for hospitality use. Better yet, double-check. I’ve seen eager owners break ground only to be told they need to apply for a variance—delaying everything by months or more.

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8. Missing Infrastructure

You’d be surprised how many sites don’t have sewer hookups or steady water pressure. You can’t run a hotel on wishful thinking. Verify access to utilities before you buy—not after.

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9. Poor Fit With Target Market

Know your guests before you pick your ground. If you’re targeting wellness travellers, being beside a trucking depot isn’t the move. If your concept is luxury, the site better scream upscale from the parking lot.

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This step is covered in Module 2 of the Hotel Owner’s Roadmap course: Know your guests, and choose a site that aligns with their expectations.

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10. You’re Being Pressured to Decide

Any agent who pushes you to close quickly isn’t working for you. Good deals don’t need arm-twisting. Take your time. Visit the site at different hours. Talk to neighbours. And remember—you’re not just buying land. You’re laying the foundation for your hotel’s entire future.

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Running a hotel without a plan? That’s like sailing without a rudder.
Romantic…
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Until the storm hits.

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Get the “Your Independent Hotel Blueprint”. Seven proven steps to calm the chaos.

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Download it now—before the next wave hits.

You can find a link in the show notes.

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Which of these raised your eyebrows? Or did we miss a sneaky red flag you’ve

encountered yourself?

Drop your story in the comments.

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Key Takeaways

 

In Conclusion

A good hotel site supports your vision. A bad one suffocates it. The right location saves you money, boosts guest reviews, and makes daily operations smoother. When you skip past the warning signs, you gamble with your future.

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Invest your time where it counts. And if you want the full checklist of site selection tips, zoning hacks, and budgeting wisdom, it’s all in “The Hotel Owner’s Roadmap: Start, Manage, & Grow” course. Your dream hotel deserves a solid start.

Still winging it with spreadsheets and second guesses?

There’s a better way.

“Your Independent Hotel Blueprint” download lays it all out—seven clear steps from dream to done.

Grab it now. Free. Field-tested. Owner-approved.

Sign up for your copy now!

TO READ OR LISTEN TO THIS EPISODE ON HOTELIER HELPCAST WEBSITE

https://hotelierhelpcast.com/2025/06/10-red-flags-to-watch-for-when-choosing-a-hotel-site-077

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Serious about taking your business to the next level? Sign up for the “The Hotel Owner’s Roadmap: Start, Manage, & Grow course

https://courses.keystonehospitalitydevelopment.com/course/the-hotel-owners-roadmap-start-manage-grow

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Grab your copy of the “Your Independent Hotel Blueprint”  download

https://hotelierhelpcast.com/hotelier-helpcast-pdf-download

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