Torn between constructing your dream hotel or acquiring an existing one? Let’s weigh the pros and cons of Building or Buying Your First Hotel.

You’ve walked into more hotels than you can count. Some charm you instantly, others leave you questioning the architect’s sanity. But now, you’re standing on the edge of a very personal question: should you build your first hotel from scratch or buy one already standing?

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This isn’t just a money decision. It’s a lifestyle shift. A commitment. A calling, even.

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Whether you’re a seasoned entrepreneur or dipping your toes into hospitality for the first time, this choice will shape everything — your stress levels, your bank balance, and the stories you’ll one day tell.

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In this episode, I’ll break down what you need to consider before you commit to either path. You’ll walk away knowing which option aligns best with your vision, budget, timeline, and appetite for control. And yes, we’ll have a laugh or two along the way.

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Know What You’re Really Getting Into

Let’s cut to the chase. Building a hotel from the ground up is a marathon, not a sprint. If your idea of patience is waiting two minutes for coffee, you might want to consider buying.

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When building, you control everything — design, layout, concept, even the scent of the lobby. But you also take on permits, zoning, soil reports, construction timelines (that somehow never stick), and yes, the occasional unscrupulous contractor who “just needs a little more time.”

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Buying, on the other hand, lets you skip the mud and go straight to the makeover. You can see what you’re buying. Walk through the lobby. Inspect the boiler room. Peek under the mattress, if you’re feeling brave.

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But here’s the kicker: buying means inheriting someone else’s choices — and mistakes. You might be stuck with 80s tiling and plumbing that predates your first car.

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Do The Numbers Add Up?

This isn’t Monopoly. It’s real money, and lots of it. Before you pick a path, get real about your budget. Not your “if everything goes perfect” budget. Your “what if the HVAC breaks down the week before opening” budget.

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Building a hotel often costs more upfront. But it can also mean fewer long-term repairs and a layout optimised for your target guests. You can create something that doesn’t just attract guests — it draws in your kind of guest.

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Buying can be quicker to cash flow. If the place is up and running, you might even walk in with bookings already lined up. But it also means you’re dealing with depreciation, old systems, and maybe that ghost in Room 3 who refuses to check out.

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Before making a move, crack open the budget planner from The Hotel Owner’s Roadmap: Start, Manage, & Grow course. It’s helped many of our readers avoid those “Oh no, I didn’t think of that” moments.

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Understand Your Timeline

Are you aiming to open doors in the next six months or the next 18?

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Building takes time. And patience. And then more time.

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There are plans to draw, approvals to win, materials to source, trades to manage. It’s exciting, yes. But if you’ve got investors breathing down your neck, or you’re living off your savings, you might want something faster.

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Buying can put you in business faster. Especially if the property’s already operating. You can start making money while upgrading. But be careful not to get caught in a renovation rabbit hole. What starts as “just new carpets” can turn into “let’s gut the whole thing.”

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Think About Legacy

This isn’t just an asset. This is your baby.

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Building lets you tell your own story from day one. Your vision. Your vibe. Your values. You don’t have to undo someone else’s decisions — you get to make your own. Just be ready to answer a lot of questions from your architect, builder, and curious neighbours.

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Buying means giving something existing a second life. That can be rewarding too. Like adopting a dog that just needed the right owner. You’re not erasing history. You’re adding to it.

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Have You Done the Walkaround?

If you’re thinking of buying, spend time at the property. Different days, different times. See what your guests would see. Smell what they’d smell. If you’re hearing a rooster at 4 a.m. or catching wind from a nearby cow farm, you want to know that before the deal is done.

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Building? Walk the land. Check the sunlight. Look at the drainage. Ask yourself, “Would I want to stay here?”

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One owner I knew nearly bought a cliffside paradise — until he discovered the cliff was eroding three metres a year. Romantic today, ocean floor tomorrow.

So, what’s your gut telling you — build or buy?

Share in the comments below.

Here are the 5 key takeaways of this episode.

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In Conclusion

Whether you build or buy, you’re stepping into a world that demands passion, vision, and a bit of a thick skin. But you’re also opening a door — not just to guests, but to the kind of life most people only daydream about. One filled with stories, challenges, and wins that feel personal.

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Follow your gut, do your homework, and lean on resources like “The Hotel Owner’s Roadmap: Start, Manage, & Grow” course to guide the way.

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And remember — it’s not about the building or the bricks. It’s about the experience you create inside.