The importance of experience
The value of industry knowledge and experience should never be underestimated when starting out in the hotel industry, says hotelier Sir Rocco Forte.
"A lot of people say, ‘I'm going to run a hotel,' and have no idea how to go about it," says Forte, who points out that having industry experience can also be a prerequisite to securing funding.
"I had a letter from someone who wanted to buy a small hotel in Scotland and they were surprised that the bank wouldn't lend them the money," he says. "The reality is that, unless you have a proven track record, then the bank doesn't have the confidence to back you."
Knowledge is also crucial when it comes to finding a property, as the more research you do, the less likely you are to overpay.
"It's all in the deal," says Forte. "Never pay too high a price. If you do, you're unlikely to be able to make the business work. Remember that, if you borrow money, you've got to repay it.
"Unless you have a cash flow that will repay the interest, then you shouldn't do the deal. It's quite normal for banks not to lend 100%."
Prior knowledge Having prior knowledge of the industry in a work capacity will also help to establish if you're cut out for a career in the industry - before it's too late.
"Don't get carried away by the excitement of it all," says Forte. "The hospitality industry seems very glam, but look at the nitty-gritty of it all. It's actually hard work. And you need to really care about the guests having a good time, and want to give good service."
