Original Research

A framework for successful hotel developments

Chris E Cloete, I Venter
South African Journal of Economic and Management Sciences | Vol 10, No 2 | a584 | DOI: https://doi.org/10.4102/sajems.v10i2.584 | © 2013 Chris E Cloete, I Venter | This work is licensed under CC Attribution 4.0
Submitted: 04 April 2013 | Published: 09 April 2013

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Chris E Cloete, University of Pretoria
I Venter, University of Pretoria

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Although there are similarities between hotel and other commercial property developments, hotel development has unique characteristics and requires specific management expertise. Hotels are usually ’single-use’ properties, whose primary revenue is generated from a service-based industry. They have a market value directly related to their ability to generate future net income by means of their operations. The essence of successful hotel property development lies in understanding these unique characteristics.
Various critical success factors for hotel development are identified in this article, and incorporated into a hotel property development framework, establishing a practical ‘road map’ for successful hotel developments. The validity of the proposed hotel property development framework has been assessed by intensive direct interviews with hotel development professionals.


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