The COVID-19 pandemic has taken a toll on industries worldwide, and the U.S. hotel industry is no exception. Hotel managers have suddenly found themselves with depleted cash reserves and empty hotels, wondering how monthly mortgage payments and payroll needs will be met.
Here are some ways hotel managers can step up their game post-COVID-19 and attempt to return to a sense of normalcy.
Invest in PR
In today’s day and age, brand identity and awareness are inextricably tied to the success of your business. The conversation about your hotel on social media platforms can make or break your success. Travelers judge hotels based on reviews and they tend to rely on the proof they find on social media to validate their decision-making. This is why PR is a highly effective marketing tool to generate visibility for your hotel. Informative, inviting, and innovative content that engages your audience will help build an eager and loyal following and create brand recognition—a recipe for success for anyone in the hospitality industry!
Work out a dedicated plan with your communications team and develop a thoughtful PR strategy to mitigate the crisis brought by COVID-19. When your target audience sees the effort you’re putting into everyone’s health and safety, they won’t have to think twice about booking their next day at your hotel.
Hotel owners can seek loans to arrange working capital to stay afloat during these trying times or boost their regular operations. Bridge loans are an ideal option in this case because they help cover the gap between the different points of financial stability your business may face. This type of temporary funding is intended to help businesses cover short-term costs until long-term funding is secured. As the name suggests, this acts like a bridge that connects a company to debt capital through short-term borrowings. Bridge loans are usually secured by collateral in the form of real estate, valuable assets, or a personal guarantee.
Another loan option you can take advantage of is private money lending. This can be used when the amount you require doesn’t qualify for a traditional loan or you need to obtain the finances before the usual 30 days.
Bring in a Partner
If you’re still struggling to get things under control, bringing in a partner may help. Whether it’s a family member, friend, hotel association, hotel franchise company, or third-party management company—there are countless excellent candidates that you can consider for partnership.
Partnering with someone can give you access to a broader range of expertise and they may also bring in the knowledge and skills you may lack.
A prospective partner may also bring in capital into your hotel business, helping increase cash flow in the short run. Your new business partner may have some strategic connections and networks that you can take advantage of to attract potential investors and raise the capital required for growth.
Step Up Your Financial Game Post-COVID-19
Global Capital Partners Fund is a leading commercial financing company in NYC. They assist businesses in financing all phases of real estate development. Whether it’s asset-based loans, construction loans, bridge financing, mezzanine financing,—they have it all covered.
For all your commercial real estate funding needs, speak to their expert consultants and get a quick quote now.