Hotel Projects Need Operators at the Table From Day One
Hotel projects on the French Riviera are multiplying, but operators often join too late to shape design, staffing and budget decisions — and owners absorb the cost after opening.
On the French Riviera, hotel projects are multiplying — and in too many of them, the people who have actually run hotels get a seat at the table only after the design, the budget and the strategy are already locked. That sequencing, an experienced hospitality professional argues, is the single most expensive mistake in hotel development today.
The argument is straightforward. These projects assemble expertise in finance, real estate, architecture and asset management. All are essential. None of them replaces the judgment of someone who has led hotel teams, built commercial strategies and been accountable for a P&L.
Some investors and asset managers carry that operational experience themselves. Others hire it. The problem, the author writes, arises "when that expertise is sought too late to influence decisions. Or when it is never sought at all."
What does an operator actually see that an investor doesn't?
Look at a floor plan. A hotelier sees staff routes, delivery flows, and the operational spaces the building may lack. The concrete cost of ignoring this: at a five-star hotel in Switzerland where the author worked, a space shortage pushed sales offices twenty minutes away by car, while HR and finance stayed on site. Sales staff, whose job centers on welcoming clients and walking them through the property with operational teams, were structurally cut off from the product they were selling.
The same blind spot shows up everywhere in development decisions. Trading housekeeping storage for one more guestroom looks like pure upside on a spreadsheet. But where do linen, equipment and supplies go? How much extra staff movement does that create, and what does that movement cost in service time?
Interior design carries the same operational weight. Pale beige carpeting in suites is a housekeeping and maintenance decision disguised as an aesthetic one. Inadequate sound insulation through connecting doors is a guest-dissatisfaction generator built into the walls. A constraint overlooked at design, the author notes, becomes a daily difficulty at opening.
Why staffing budgets need an operator's read
A staffing budget puts a figure on an expense. Hospitality experience tells you what level of service that figure can actually deliver.
Shift patterns, days off, absences and seasonal peaks all have to be covered. A hotel promising highly personalized attention must staff for it. When it doesn't, the consequences run past the budget line: the guest experience degrades and teams burn out. Savings on paper become turnover and reputational costs in operation.
The same logic applies to revenue assumptions. Behind an average room rate and an occupancy forecast, an operator sees distribution channels to activate and the time required to build commercial relationships. A new hotel does not secure market position because it is beautiful, well located or affiliated with a prestigious brand — it must build awareness and reputation, with digital marketing resourced from the pre-opening stage, not retrofitted after.
Revenue plans also need a seasonality test: how the hotel operates outside high season, which guests it attracts then, and what business level the projections actually assume.
Who decides — and what happens when nobody knows
The author's own case study makes the governance point. As Director of Sales and Marketing at a luxury Geneva hotel, he received different and sometimes contradictory instructions from the general manager, the management company, the asset manager and the brand. Renovations were repeatedly postponed with no clear communication to the teams, forcing him to adapt client commitments to a timetable he couldn't control.
That was an operating property. But the lesson maps directly onto development: when roles and decision rights stay unclear during a project, the opening team inherits that uncertainty — and pays for it.
Bringing a hotelier into a project isn't enough, the author argues, "if their role is limited to implementing decisions already made. Their experience must be able to change a design choice, a budget assumption or a timetable."
The economics are unforgiving either way. After opening, whatever wasn't anticipated becomes a problem to manage and a cost to absorb — which is why owners who embed operational expertise early, with genuine authority over design and budget choices, are the ones who catch those costs while they're still avoidable.
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Correspondent covering companies, deals and strategy in Restaurant and hotel operations at The Pass Brief.
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