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Without a doubt, running a hotel is an incredible challenge. The investments needed to simply operate the property can be incredible. With that in mind, many hoteliers find it challenging to find the budget needed to invest in improving their green practices. These investments are worth the cost in the long run.
Ethically, reputationally, and financially the long-term results make the costs more than justified. Finding the finance can be tough, but could you turn to equity release to help fund these improvements?
If your hotel has built up equity during the course of the term of your mortgage, you could be able to use that equity. Indeed, some current equity release providers are able to find the opportunity quite easily. So long as you have built up the equity, it could be released by using a provider with a proven history of success in this matter.
While not every hotel is going to be eligible for this kind of process, it is something that you could consider trying to use to your advantage. Equity release allows you to easily get access to sums of money that you might simply not have had before. These sums could then be used to invest in various sustainability practices.
For example, solar panels are going increasingly common for hotels. They can be easily hidden on the roof, avoiding any potential aesthetic penalties. At the same time, though, they can provide a valuable source of power during the brighter months of the year. Over time, this will result in a greater return on investment overall.
Other practices hoteliers invest in could include recycling, better trash management, and more efficient – and ethical – choices in catering.
Equity release can make sense for hotels in the right position
While many property owners never look to use their equity, in commercial business it should be something you look at intently. The right approach to managing a hotel includes always looking for ways to get ahead of the competition. Today, guests look to find hotels that can offer them a smooth experience. They also want to stay at hotels that take the environment seriously.
At the moment, as environmental consciousness becomes clear for more and more people, the businesses they partner with change. Individuals now want more assurances that a business is intelligent with its use of the environment. They want to know that the companies they invest their hard-earned money in are doing as much as they can to care for the world in years to come.
It is true that many green practices can be high-cost endeavors to set up. And while the long-term return on investment is clear, not every business can find the funds. Putting your business into cash flow troubles to invest in can be dangerous. However, by using heard-earned and well-built equity, you could overcome this challenge.
Then, investments can be made which will pay off for your business from an organizational, financial, and reputational standpoint. If your hotel has equity, you could use an equity release provider to access much-needed funds for property improvement. If nothing else, it is worth considering and investigating.
