Hotel development refers to either hotel business development or hotel property development, but often to both as interdependent activities. Hotel development starts with strategic management, which calls for the involvement of the hotel business owner and operator during the project's design phase.
Hotel business development is the process of pursuing an organization’s strategic objectives and expanding the organization’s market exposure that is appropriate for its operational design. This is solely the responsibility of the hotel business owner and can be achieved through various strategies, including organizational mergers, purchasing existing hotel property, branding, and new-builds.
Hotel property development is the real estate development process that brings an idea or concept for a hotel with the associated hospitality services through project construction to successful realization. As with any property development project, it is an interdisciplinary, complex business process that encompasses the complete economic and physical life cycle of built property.
Property development can be viewed holistically as the delivery of complete solutions for real estate space, from project concept and implementation to the operation and disposition of the developed property. It results in new builds as well as the renovation or reconstruction of existing buildings.
Property development requires the skills and expertise of numerous professionals and service providers. It calls on the developer to assemble a team of professionals to address the various economic, physical, environmental and legal issues inherent in a real estate development project.
Integrated development involves the project developer acting in various professional capacities throughout the project development phases. It results in the developer gaining benefit along the value chain until project exit.
Sustainable development is the principled use of productive resources to ensure long-term, viable economic operations that provide socio-economic benefits to all project stakeholders, without compromising the opportunity of future generations to meet their own needs. Sustainable development calls for all stakeholders to understand and adopt sustainability principles throughout the property life cycle.
