Emerging Trends in Wedding Venue Real Estate Investments

How to get into the wedding venue business

Investing in real estate is always a good idea, not only does it offer you a passive income it is also great for diversifying your investment portfolio.

In particular, looking at investing in real estate for a commercial reason like a wedding and event purpose offers a wide variety of business opportunities that are topped with the joy of seeing loving couples come together and unite in wedded bliss.

In this article we look at the current trends coming up in wedding venue real estate and how you can make the most out of these opportunities.

Looking for the best option?

When you invest in a wedding venue, it is similar to investing in any other commercial property, like an inn or lodging.

As mentioned earlier, any investment into property is great for diversifying your investment portfolio as well as your income. Dabbling into the wedding industry is also a very lucrative one, but only if you go about it the right way.

Naturally, when choosing a property, you want your pick to be aesthetically pleasing, functional, and popular among bridal couples. Ticking all these boxes won’t be easy, but it is important that you thoroughly explore all the options available to you so that you can make the best decision possible.

Ideas to consider

When looking for the right type of venue that you want to invest in, it is always a good idea to think ahead about what you are aiming for. It would be a good idea to look through directories of available spaces and decide on the right one for you. You can also visit property sites and toggle the filters according to the amenities you want in your venue.

For example, places such as Florida and California have many venue options that you can use as inspiration for your own. Areas like Miami Beach, Palm Beach, Camarillo, or Joshua Tree have an excellent array of venue examples that could provide some kind of inspiration for your own venue.

Trends in the wedding industry

• Ideally, you want your venue to offer personalization and flexibility for the wedding couple and hosts. This is mainly due to the revolving door of seasonal wedding trends that can be difficult to keep up with.
• Weddings are not a single-day affair. They sometimes take place over the course of a weekend, which is why additional services in addition to the ceremony can be to your benefit.
• Destination weddings are becoming very common, guests may be coming in from out of town, so having options to accommodate them will be in your best interest while also enhancing your revenue streams.
• Intimate weddings are just as common as grand celebrations these days. There is now more need for ceremonies to be able to help the bridal couple foster a connection with those that will be present on the day. So consider offering experiences as part of your package. Look at the location you are in and the local attractions that are offered.
• Earmark locations that are rising in population, however, you also need to look at the competition in these areas, as this can be a tipping point for the success of your venture.

Add-ons to consider

A wedding venue is not the only option that you can offer to your clients. It is a great opportunity to think out of the box and find ways of giving your clients a whole package experience.

Why not look at properties that can give the bridal families, especially those who are having destination weddings, an easy one-stop trip? Look at providing accommodation in the form of flats and cottages to rent, day accommodation or green room services to prepare in.

Creating an AirBnB space can provide extra convenience to the wedding party. Additional services are key for a holistic experience. You can even consider post-wedding brunches and rehearsal dinner spaces as part of your offerings.

Create a game plan

Before you create your business plan and obtain financing, you will need to speak to people in the wedding industry, especially if you are new to this type of venture. They will help with providing insight and nuance to getting into this industry that won’t be common knowledge.

Partnering with an expert can help you cover all your bases, like creating an acquisition model and drawing up projections that will result in business growth and success.

It is important to note that while weddings will never go out of style, trends do, which makes these markets everchanging. It is important that you keep your ear to the ground at all times to adapt and meet the needs of your clients.

Creating a business plan

Like with all business ventures, a business plan is necessary. With the right type of plan, you will be able to secure a commercial property investment and financing without too much trouble.

Be sure to highlight your plans for long-term success and showcase your vision and intent with solid backing. Make sure to point out the benefits of the location, amenities and services that you plan on including in your venture. The pricing structure of the venue and packages that you intend to offer can also be beneficial to add to the business plan. If you have suitable plans to make use of the venue space for off-season periods, you can include that in your business plan as well.

What you need to look at

• Venue rental fees: How much it will cost the client to hire out the venue
• Catering options: An option like in-house catering is great for increasing revenue. Alternatively, you can partner with local small businesses to offer packages to your clients
• Bar services: Offering a bar service aids with revenue, but it will require a lot of effort to maintain.
• Planning services: Offering a wedding planner to aid the couple or an on-the-day coordinator to help take the pressure off the wedding couple.
• Rentals: This can include offering bridal party options like decor, entertainment and floral arrangements

Considerations:

• The initial investment: The biggest cost would be property acquisition. You may also need to make allocations for renovations, licensing, and permits. All these require time and financing to get your venture up and running
• Marketing: To promote the venue and ensure that you drive traffic to your business.
• Operational costs: Depending on the services you offer, you will need to factor in the costs of paying staff as well as costs related to utilities and maintenance to ensure the venue is always in great condition.

Insurance: This is to cover any damages to the property or third-party coverage for any accidents that occur.

Financing options

If you have your own capital to start you off, then you are off to a good start. To finance your business plans, you can typically acquire commercial real estate loans from banking institutions, which is the most common route. However, it can be difficult for smaller businesses to acquire.

Alternative options include acquiring a Small Business Administration loan, which is favorable for smaller businesses. They have better repayment terms and a lower down payment. However, there is a downside to this, as it can be a long process to undertake.

Final Thoughts

Getting into commercial real estate investments can be a difficult process for many. Even more so if you are planning to dip your toes into the wedding and event industry.

To set up a wedding venue, there are a lot of aspects that you need to consider, including current trends in the industry, potential for growth, financial upkeep, and making sure that you offer comprehensive packages that outperform your competition. By partnering with experts and obtaining a full-understanding of these topics, you will be able to create a long-term venture that will bring you a lot of success.