INSIGHTS

Does Your Hotel Actually Need a Consultant?

Including the cases where the answer is no. I make my living doing this work, so take the argument on its merits rather than on who is making it.

An Edinburgh street of hotel buildings

Most owners who contact me have been thinking about it for months. Something is not right, the accounts say so, and the question underneath is usually not “should I get help” but “is this the kind of problem outside help can actually solve?”

Sometimes it is not. So here is the honest version, both ways round.

The signs that say yes

  • Occupancy is fine and the profit is not. This is the clearest one. If the rooms are selling and the money is not arriving, the problem is structural, and structural problems are hard to see from inside.
  • You cannot say where the payroll went. Not the total — the shape. If nobody can explain why the wage line moved, nobody is controlling it.
  • The same problem keeps coming back. Fixed in March, back by June. That is a system problem, and systems are exactly what an outside pair of eyes is for.
  • You are about to spend serious money. A refurbishment, an acquisition, a repositioning. Getting a second opinion before the spend is cheap; getting one after is expensive.
  • You are the bottleneck. If the hotel needs you in it every day to function, you own a job rather than an asset.
  • You have lost the comparison. One hotel, no benchmark, no view of what normal looks like for a property of that size.

The signs that say no

These come up often enough to be worth saying plainly:

  • You already know what is wrong and you need money or time, not advice. If the answer is “the bathrooms are twenty years old”, you do not need a review. You need a refurbishment budget.
  • You have a strong general manager who is being second-guessed. Bringing someone in over a capable manager usually costs you the manager.
  • The problem is the market, not the hotel. If the town has lost its demand, no operational work will replace it. That is an asset decision.
  • You want someone to confirm a decision you have already taken. That is an expensive way to buy agreement, and a good advisor will disagree with you anyway.
  • Trading is fine and you are simply curious. There is nothing wrong with a check-up, but be honest that is what it is, and treat the cost accordingly.

Consultant, advisor, or someone who runs hotels

The words are used loosely, and the difference matters more than the label. A great deal of hotel consultancy is revenue management sold on its own, delivered from the outside, ending in a document. That can be genuinely valuable if pricing is your only problem. It rarely is.

In a real hotel the lines are connected. A rate decision lands on the housekeeping rota. A staffing change lands on the reviews. A commission problem is a distribution problem wearing a cost disguise. Advice that treats one of those in isolation tends to be right in theory and unusable on a Saturday night.

That is the test worth applying to anyone you speak to: do they understand what their recommendation costs to deliver?

What a good engagement should produce

  • Findings ranked by money and effort, not a list of everything that could be improved.
  • A separation of quick wins from projects, so you can start on Monday rather than in the new financial year.
  • Names against actions. Who does what, by when. A recommendation with no owner is a wish.
  • Something that survives contact with the team. If the people who have to live with a change were never asked about it, it will quietly not happen.

The failure mode is well known and worth naming: a thorough report, a polite meeting, and nothing different six months later. That has cost you money and changed nothing.

Questions worth asking before you hire anyone

  • Have you run a hotel? Which one, and when? Recently matters.
  • What will I actually have at the end? A document, a plan, or changed practice.
  • Who implements it? If the answer is “you do”, price that in — it is usually the expensive part.
  • Can you show me a property you worked on and what happened to it? Numbers, not adjectives.
  • What would you tell me not to bother with? Anyone who says everything is worth doing is selling hours.

The cost of waiting, honestly

I am not going to put a number on this, because it depends entirely on your hotel. But the two kinds of problem behave differently, and it is worth knowing which one you have.

Cost problems compound quietly. An overstaffed rota costs the same amount every week and will still be there next year. There is no deadline, which is exactly why it goes unaddressed.

Revenue problems expire. A period priced wrongly cannot be repriced once the dates have passed. If the issue is rate, channel mix or a season you are about to sell badly, the clock is real. That is the argument for moving sooner rather than at the end of the financial year.

If the answer is yes

A first conversation costs nothing and is usually enough to tell whether the problem is cost, revenue, the operation or the model — and whether it needs outside help at all. I have told owners they did not need me. That is a better outcome for both of us than an engagement that was never going to work.

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