LOCATION FACTORS IN MAKING INVESTMENT DECISIONS IN THE HOTEL BUSINESS

Abstract

The location of hotel facilities is a critical factor for the hotel business success and competitiveness. The article discusses key aspects of location selection for hotels and other accommodation facilities, including general and selective location as well as primary and secondary localization. The main attention is paid to the impact of location on hotel profitability, operations and investment attractiveness. Factors such as transport accessibility, infrastructure level, security and attractiveness of the region, which are important for ensuring the convenience of guests and the efficiency of hotels, are considered. The analysis covers the specifics of choosing a site for a new construction or existing accommodation facilities reconstruction. The article also provides a classification of hotel location zones in European cities such as old buildings, communication centers, business zones and suburban areas which helps to understand how different locations types affect the type and level of service. It is noted that the main factors in choosing a site for an accommodation facility are urban planning, architectural and landscape, engineering, economic and environmental aspects. The authors also compare approaches to hotel localization in the international and Ukrainian contexts, including specific factors for independent and chain hotels. The role of investment costs, labor costs, transportation costs and demand for hotel services is studied. Special attention is paid to the importance of the tourism resources availability and the access to public goods. Finally the article emphasizes the existing research gaps, such as insufficient detailing of location selection factors, lack of a comprehensive analysis methodology and market specifics. This creates a need for further research to optimize the process of hotel location selection, especially on the Ukrainian hotel market.