Many people think that comparing high-end hotels with express hotels is just that the infrastructure is more luxurious and the room prices are more expensive. If high-end hotels remain unoccupied for a long time, will they face the same risk of losing money as fast hotels? In fact, no. A Shangri-La Hotel executive once told me that although room occupancy rate is an important source of revenue for high-end hotels, the impact is not absolute. No loss

For high-end hotels, when the occupancy rate reaches 50, it is already a very popular phenomenon. After the occupancy rate reaches 75, the entire hotel is in a state of high load and needs to be promptly Control room occupancy rates so as not to impact overall hotel operations.

Generally speaking, as long as the annual room occupancy rate of a high-end hotel can be maintained at 20. This way the hotel can maintain a profit and loss balance. The rest of the profit model depends on the hotel's other projects, and the supporting services of high-end hotels are the focus of attracting guests to come and spend.

From the definition of a high-end hotel, we can know that the cost of investing in and building a high-end hotel is very high. However, under the premise of high investment, there are not many guests staying in the hotel. So how does the hotel make a profit? What about? In addition to the room fees brought by guests' check-in, other profit methods mainly come from the following five points. 1. Hotel supporting items

In addition to guest rooms, high-end hotels also have other services. Generally speaking, the 1st to 5th floors of the hotel do not provide accommodation. There will be large conference rooms and restaurants. , such as Chinese food, Western food, buffet, bar, bar, swimming pool, high-end gym, etc. It mainly depends on the hotel's marketing team. If the hotel's catering industry is well done and attractive enough, it can bring great profits to the hotel. 2. Wedding banquets and corporate annual meetings

In addition to providing accommodation, all larger hotels will also host wedding banquets and large corporate annual meetings, including some important meetings in the unit. It mainly depends on whether the hotel will promote it and whether it is attractive enough. During the peak wedding season, many high-end hotels will receive weddings of many couples at the same time basically every day.

In addition, in daily life, many companies will choose to hold important meetings or annual meetings in high-end hotels in order to enhance the sense of ceremony. And according to my observation, in our local area, many insurance companies and real estate agencies have too many employees, so they will cooperate with hotels every time they hold a large meeting, and even sign long-term cooperation agreements. 3. Rent subsidy

This can be regarded as a kind of project support. Many five-star hotels in first-tier cities are on top of high-end office buildings. This is particularly true in Guangzhou's Zhujiang New Town Business District. Many high-end office buildings will sign cooperation agreements with some high-end hotels in order to improve their quality and attract more companies to settle there. Part of the hotel's revenue can be subsidized by office rents. 4. Seek capital premium

The location selection of high-end hotels is very strict. They usually choose prosperous areas in the city, or locations with extremely rapid value-added in the future. There is also a saying, "Where a five-star hotel is built means that the land price in that place is about to rise." Many high-end hotels were originally invested at a low cost. As the land price rises, they can be resold to local people in need. Enterprise or unit. 5. Hotels can be used as collateral to obtain loans

This is something that many people have overlooked. High-end hotels, as relatively high-quality assets, can be used as loan collateral. Many hotels can take advantage of this to obtain loans. Loans with relatively low interest rates. Then the loaned amount can be used in other investment directions to obtain profits. In addition to making money, what are the functions of high-end hotels?

In fact, in addition to making profits, many investors have other purposes when building high-end hotels. For example, when many real estate companies invest in tourist cities or high-value business land, they aim to improve the overall quality and attract customers. They will all choose to build a high-end hotel.

In addition, some non-real estate companies will also choose to invest in high-end hotels as a display of the company's own image, which not only expands the company's business, but also meets the reception needs of the company's daily operations, killing two birds with one stone.