What is a hotel owner?

A hotel owner wears many hats, from managing day-to-day operations to making big-picture decisions about the property’s future. If you own a small hotel, especially with 3-5 rooms, you’re likely handling everything from guest relations and staffing to finances and marketing. The owner is often responsible for keeping things running smoothly, ensuring guests are happy, and maintaining profitability. Understanding your role can make all the difference in how effectively you manage your hotel.

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Why is it important to understand the role of a hotel owner?

Knowing the ins and outs of hotel ownership is crucial because you’ll be responsible for nearly every aspect of the business. Your role isn’t just about keeping the doors open—it’s about finding ways to balance guest expectations with operational efficiency and financial success. A well-rounded understanding helps you navigate the unique challenges of small hotel ownership, such as dealing with local regulations, managing staff, and ensuring long-term sustainability. Mastering this balance will help you keep your hotel running smoothly and set you up for growth.

What are the 4 types of hotel ownership?

There are four main types of hotel ownership, and it’s important to understand how each can impact your day-to-day management and long-term growth:

Sole ownership

Sole ownership gives you full control over all aspects of your hotel. You make every decision, from daily operations to long-term strategy, which offers you the greatest level of flexibility. However, it also means that you assume all financial risks and responsibilities. This model is best suited for hands-on owners who want complete control over their property.

Franchise

In a franchise model, you operate your hotel under the brand of a larger company. You’ll benefit from the brand’s marketing power, reputation, and operational support. However, you’ll need to follow the brand’s guidelines and pay ongoing franchise fees. This is a great option if you want the backing of a well-known brand but don’t mind adhering to strict operational rules.

Management contract

With a management contract, you own the hotel, but hire a professional management company to run it. This allows you to step back from day-to-day operations while experts handle guest services, staffing, and finances. However, you’ll have less control over the hotel’s operations, as the management company makes many of the key decisions.

Leased hotels

In a leased hotel model, you lease your property to an operator who handles all operations. You collect rent, while the operator takes care of everything from staff management to guest services. While this provides steady income with little day-to-day involvement, your hotel’s reputation and success depend largely on the operator’s performance.

hotel owner

How much does a hotel owner make?

  • United States: On average, hotel owners in the U.S. earn between $40,000 and $60,000 per year, with profits being heavily dependent on location, size, and the type of hotel. Larger or more upscale hotels in prime locations can see profits exceeding this range.
  • United Kingdom: In the UK, hotel owners typically make around £30,000 to £33,000 per year, but again, this can vary widely based on factors like the hotel’s location, size, and customer base​
  • Australia: Hotel owners in Australia tend to earn more, with an average income of around AU$102,000 per year. Like other regions, earnings are influenced by the type of hotel, its location, and the services it offers​

Sources: EposNow, DrFranchises

How to become a hotel owner

Becoming a hotel owner takes planning and strategy, especially if you’re managing a small property. Here’s what you need to focus on:

Navigating local regulations

Understanding and adhering to local zoning laws, health codes, and safety standards is critical for hotel owners. Non-compliance can lead to fines or, worse, closure of your property. Make sure you stay up to date with local regulations and consult with legal experts to ensure you’re meeting all requirements.

Implementing eco-friendly practices

With more guests seeking eco-conscious accommodations, adopting sustainable practices can set your hotel apart. Simple changes like using energy-efficient lighting, reducing waste, and cutting down on single-use plastics can attract environmentally aware travellers and reduce operational costs.

Overcoming staffing challenges

For small hotel owners, staffing can be one of the biggest challenges. Offering competitive wages, flexible schedules, and opportunities for cross-training can help retain valuable staff. A well-managed, happy team is essential to providing exceptional guest service and ensuring repeat business.

Enhancing guest experience

In a small hotel, personal touches can make a huge impact on guest satisfaction. Simple gestures like remembering guests’ preferences or offering local tips can enhance their stay and encourage them to leave positive reviews, boosting your hotel’s reputation and repeat business.

Building strong community connections

Partnering with local businesses and promoting nearby attractions can increase your hotel’s appeal while supporting the local economy. Guests are often looking for authentic experiences, and your community connections can provide just that, enhancing their overall stay.

Staying ahead with emerging trends

Keeping up with industry trends like wellness amenities or digital booking platforms ensures that your hotel stays competitive. Offering unique services, such as wellness packages or eco-friendly accommodations, can attract a broader range of guests and boost bookings.

Utilising technology for operational efficiency

Leveraging technology like online booking systems, automated guest communication, and property management software can streamline operations. These tools save time, improve organisation, and allow you to focus more on creating memorable guest experiences.

Be the best hotel owner that you can be with the help of Little Hotelier

Little Hotelier empowers small hotel owners by simplifying the day-to-day operations, making it easier to manage bookings, streamline guest communications, and increase occupancy rates. Whether you’re just starting or aiming to grow, Little Hotelier offers a user-friendly platform that automates tasks and enhances guest experiences.

  • Manage bookings effortlessly: Automate and manage all your reservations in one place, reducing manual work and improving efficiency.
  • Streamline guest communications: Use automated emails and messaging tools to keep your guests informed and satisfied throughout their stay.
  • Boost occupancy rates: Take advantage of revenue-boosting tools, including real-time availability and rate adjustments, to ensure you’re maximising bookings.

With Little Hotelier, you can focus more on delivering exceptional service and growing your business with ease.

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By Dean Elphick

Dean is the Senior Content Marketing Specialist of Little Hotelier, the all-in-one software solution purpose-built to make the lives of small accommodation providers easier. Dean has made writing and creating content his passion for the entirety of his professional life, which includes more than six years at Little Hotelier. Through content, Dean aims to provide education, inspiration, assistance, and, ultimately, value for small accommodation businesses looking to improve the way they run their operations (and live their life).