BASIC MANAGEMENT and OPERATION PROCEDURES for Boutique HOTEL

 1. Before you open

• Is a Boutique HOTEL REALLY needed where you plan to build one?

• Do you, or your family, have clear ownership of the land with no dispute?

• What standard will you build to?

• Will you have separate rooms or dormitory style – how many rooms, how many beds?

• These questions must all be answered before you even start.

2. Can you deal with people?

• Are you comfortable with people of differing ages and from different races and religions?

• Can you deal with people without a discussion becoming an argument?

• Do you agree with the saying that: “the customer is always right”?

• These are all essential requirements. 

3. Legal requirements

• Your business name may need to be registered.

• You may need Planning Board approval to build your guesthouse.

• You will need to check with departments such as:

• Health Division,

• Fire Services,

• Safety Council,

• Tourism Office,

• Provincial and City Planning Offices,

• Liquor Licensing Office (if you can sell liquor in your area),

• Gaming Control Authority (if applicable),

• ….plus any other relevant body

• 4. Basic requirements

• Construction should be sturdy; with good, level floors; dry in the rainy season; warm in cold weather and cool when it is hot.

• Beds should be fresh, strong, dry, clean and comfortable. Leave a comfortable space to move freely around the bed. 

• Have secure rooms so the guests’ property is protected.

• Keep an area free for socializing, where guests can congregate; an area for cooking and, if possible, an area for sports such as basketball.

5. Basic bathrooms need:

If you do not have rooms with bathrooms, you will need:

• A shower for every three rooms –     separate male/female facilities;

• Hot water in cold areas (such as highlands);

• A practical, non-slip floor without sharp edges such as from stones or coral;

• Good drainage - not muddy or with pools of stagnant water (inside or outside);

• Surfaces which are easy to keep clean, and that they ARE clean;

• Privacy – away from prying eyes;

• Good water flow from overhead tanks or gravity feed from a stream.

7.Basic toilets need

• One toilet for every three rooms;

• Must be: mosquito proof, no flies, no smell;

• Good, dry, level floor (as with shower);

• Clean surfaces and easy to keep clean;

• Toilet paper or a bowl / bottle with water;

• Outside the toilet: a place to wash hands with water, soap and clean towel;

• Investigate eco-friendly toilet technology.

8.Your staff should -

• …be clean, sober and neatly dressed - ideally in a uniform so they look the same and guests know who are staff, and who are not; 

• …greet guests warmly, with a friendly smile;

• …care for guest’s security and welfare;

• …treat guest’s belongings and property with       respect and guard them against theft;

• …be on duty during the day to attend to your guests;

• … provide a security guard to patrol your grounds (day and night if needed).

9. If you provide bed linen

Linen must be clean and fresh (not damp or smelling).

• If in a cooler (mountain) region, each bed should have clean, fresh blankets to keep guests warm at night;

• Pillows must be fresh (and not stained) and have clean pillow cases to cover them;

• Each bed should have TWO sheets. Every sheet, pillow case, etc MUST be laundered after each guest has left and fresh linen supplied for new guests;

• If a guest is staying longer than one night, the linen should be changed and washed every 2-3 days (more often if damp or dirty), even if they still look clean;

• All linen should be stored in a clean, airy, dry environment.

10. If you launder guests’ clothing

• If you offer to wash guest’s clothing, you accept responsibility against their loss, and for their care and condition;

• If you cannot iron clothing - tell the guest in advance;

• Beware of washing coloured and white items together, in case the colours run;

• Keep items belonging to different guests separate so they are not mixed up and the wrong items given to guests.

11. If you launder guests’ clothing

• If you offer to wash guest’s clothing, you accept responsibility against their loss, and for their care and condition;

• If you cannot iron clothing - tell the guest in advance;

• Beware of washing coloured and white items together, in case the colours run;

• Keep items belonging to different guests separate so they are not mixed up and the wrong items given to guests.

12. Join a Hotel Association

• Compare problems and solutions;

• Negotiate bulk-buying of common items to get a better price;

• Joint negotiation for major purchases such as solar power, generators and other technology;

• Exchange information;

• Get information on how to improve your guesthouse - constructing eco-friendly toilets for instance;

• Joint promotion programs.

13. Handling bookings

• If you accept bookings from a registered travel agent they will expect a 10% commission.

• The guest will give you a VOUCHER -you supply only the services described.

• When you, or your staff, confirm a booking and the price you MUST honors that booking at the price quoted.

14. Setting Room Rates

• CAPITAL COST

• If the building cost $50,000: to recover the cost over 10 years, divide the $50,000 by 10 years / divided by 365 days in a year = $13.70.

• Then divided by 10 rooms = $1.37 per room, per day.

• OPERATING COSTS

• If operating costs are $10,000 per year (to pay wages, maintenance, electricity, etc, all, the expenses for a year). Divide $10,000 by 365 (days in a year), divided by the number of rooms (10) = $2.74 per day.

• Then add the $1.37 and $2.74 together = $4.11. This is the amount you need to receive to cover your operating costs and a return on your initial investment.

• Of course, this is at 100% occupancy, if only half your rooms are sold over a year, then the amount would be doubled to $8.22 per day.

• PROFIT

• You then need to add in a fair profit, put aside money for maintenance, etc., plus an amount you need to pay for your own wages.

15. Goods and Services Tax (GST)

• Any business in PNG with a turnover (total income) of more than K100,000 per year is required to register for GST. Under this level, registration is optional.

• GST is a 10% tax applied to the sale of most items. 

• If a room cost K20.00 for one night, 10% (K2.00) would be added for GST making the total K22.00. 

• A business registered for GST sends a monthly report to the government with the amount of GST collected, LESS the amount of GST paid by their business, and sends the balance to the government.

• If your guesthouse has a high turnover it is worth registering, apart from the legal requirement to do so, as you can then claim all the GST you have paid to your suppliers. 

Remember that the quality of your Boutique Hotel and the standard of service provided by your staff is how tourists will judge: 

• your country, 

• your province, 

• your village – 

• and YOU

• !!!!!!!!!!!!!!!

Thanks for spending your time to read articles. Please have a good day and stay safe.