- Hotel Operator Company
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- Hotel Pre-Opening Services
- Hotel Turnaround Management
- Hotel Asset Management
- Hotel Owner Representative
- Hotel Concept Development
- Hotel Franchise
- Independent Hotel Chain
- Hotel Representation
- Hotel Revenue Management Consulting
- Resort Revenue Management
- Outsourced Revenue Management
- Revenue Manager for Hire
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Hotel Business Plan
OK, so you have decided to realize your dream and open your own hotel . You have thought out an amazing concept delivering unparalleled guest service. The next step would be to write a hotel business plan. It’s like a road map to the opening. However, as a seasoned Hotel Management Company , we have seen that this is where most entrepreneurs get stuck.
Why? Many do not have the time and don’t know what to write or how to do the financials. But until you finish your business plan, you will not be able to get the financing either. So you end up with ideas sitting in your head not realizing your dream.
Really it is not that difficult to make a good hotel business plan. It is merely a structured summary of your idea. Most people try to include everything about their hotel concept in the plan. This leads to an indigestible super novel-like bookwork, aka a mess.
The key is, knowing what to include, and what not to include in your hotel business plan. Create a clear road map for success. Excite investors rather than bore them to death like most business plans full of redundant information do. And you need to lead readers down the exact path you want.
One of the main challenges for example is that after reading the first page most businesses often don’t fully understand what the hotel is all about. For investors and lenders, it is crucial they can quickly comprehend your plan, without reading the whole document.
Hotels 101: The Basics of Business Planning
We have put together a hotel business plan template to help you on your way. Check out our approach based on 10 critical points, being:
- Executive Summary
- Company Analysis
- Industry Analysis
- Customer Analysis
- Competitive Analysis
- Strategic Plan
- Operations Plan
- Management Team
- Financial Plan
- Key Milestones
Steps of your Hotel Business Plan
Let’s dive into the step-by-step checklist of what your hotel business plan should look like.
Infographic by Xotels
1. Executive Summary
This first part should consist of two main parts, being:
- Mission Statement (Introduction): a 1 line company description only the essence of your hotel (not 2 lines or a paragraph). It explains why you are in business or which huge need you are solving, that currently is not being met. For example in the case of Qbic Hotels “Moving modular hotels into under-utilized real-estate to reduce build-out cost and time.”
- Objectives : What do you hope to accomplish (i.e. “Reach an annual occupancy of 90%”).
2. Company Analysis
More detailed information on the USPs (unique selling points) of your hotel concept.
3. Industry Analysis
Information on the current industry trends and the current state of the market and how this will impact your hotel. This is needed as investors want to be sure you really understand the hotel industry. This acts as the foundation on which decisions such as trends and developments to follow will be based.
4. Customer Analysis
In-depth information on your target market, including geographic, demographic, socioeconomic, psychographic, and behavioural segmentation details. Which are the types of guests who will mostly stay at your hotel? Explain which features will be meeting the needs and wants of these main segments when thinking of:
Basically, how will consumers answer this question ‘Why my hotel?’
Aim to break it up to the point value can be easily communicated (do not make it too overcomplicated). Think of the following examples:
- Psychographics: interests, lifestyles, personality, values, opinions, and attitudes
- Behavioural segmentation: purchasing behaviour, level of engagement, customer loyalty
- Demographics: gender, age, marital status and education
- Geographics: location (country, state, region, city)
- Socio-economics
Any of the above examples of hotel segmentation can, if described well, be of great value to your business plan. An example of this could be a hotel located in a beach town, where you should be able to describe how demographics and psychographics differ from summer to winter time. Especially, since this example is typically known for lower demand in winter which you could be compensating for with the right marketing strategy on hand.
5. Competitive Analysis
A study of your local competition or global concept competitors, with each of their strengths, weaknesses, occupancy rates and market share ( SWOT analysis ). And don’t forget the most important part; what differentiates you from them. What makes you stand out?
Ask yourself: “can I add value to a specific area”, especially when it comes to hotel-dense areas like city centres or major destinations.
6. Strategic Plan
This exists of 3 parts:
- Marketing : How exactly will you attract customers/guests? How will you position yourself? What will your message be to the different segments of your business mix? How will your direct marketing work? What will be the plan for your hotel website, SEO, SEM and SMM? Will you do offline promotion? In short, your hotel marketing strategy should cover everything there is to know about how to market your hotel.
- Distribution : Which 3rd party channels will you use and how will you manage availability? What technology will you need?
- Revenue management : What pricing and yield techniques will you use? What will your payment and cancellation policies be? Which room types will you be selling, and how will they be individually marketed? How many revenue scenarios will I create? Where can I compensate income/demand streams when necessary?
Make sure you have the capabilities to plan out a strong marketing, distribution and revenue management strategy.
Things get complicated rather fast, and choosing to outsource hotel and revenue management is likely to give you a strategic advantage, during the planning phase, and the execution of your business plans.
7. Operations Plan
How will you run your hotel? Think of the following elements:
- How many staff and supervisors will you need?
- What are their job descriptions/responsibilities?
- What background and experience should they have?
- When should they start?
- What are your service standards?
- Will you develop manuals?
- Which supplier will you use?
- How will you manage inventory?
8. Management Team
Include the bios of your team. Focus on what uniquely qualifies you to make your hotel such a success. Having a great team is the key to success , and stakeholders will be impressed with a thorough explanation of the added value everyone brings to the table.
9. Financial Plan
Provide the start-up costs of the hotel (capital investment), the ongoing business costs, operational expenses and revenue projections for the next five years. These figures should be always based on your Hotel Feasibility Study . The KPIs to look at include expected occupancy, ADR (Average Daily Rate) and RevPAR (Revenue per Available Room).
If you are raising money , outline how much funding will be needed and when. Explain how you will generate a return on investment for investors, or when lenders will be paid back.
10. Key Milestones
These are the most important achievements which once they have been completed, will make your hotel more likely to succeed. Think off:
- Location selection
- Permits & Licenses
- Build-out / Construction of the Hotel
- Staffing and Training
- GOP Break-even
- NOI Break-even
Each time one of the key milestones is achieved, the risk of lenders or investors decreases . And once your last key milestone is reached, the chance of success is more or less guaranteed.
11. Appendix
Provide any other relevant information here. Don’t clutter the main sections of your hotel business plan with too many details. Rather support them with attachments in this part.
Putting Your Plan into Action
Many people have great business ideas. But that really doesn’t matter. The difference between dreamers and entrepreneurs is the action mindset. Are you ready to ship your idea to the market?
The first step is to put your ideas on paper. I hope this free sample will help you write a persuasive hotel business plan. Because no investor or lender will be interested if you cannot present a clear plan.
Follow your dreams and go for it!
Need help to Develop and Manage your Hotel Concept?
Our hotel consultants at XOTELS have helped hundreds of hotels to develop and optimize their businesses.
With cost-effective implementations and best practices developed over years of experience, successful business as a boutique hotel , resort, B&B, aparthotel, hostel, or any other lodging concept for that matter, is guaranteed.
Hope this template has helped you get inspired to start your own hotel business .
Best of luck in your endeavours!
Patrick Landman
PS. Get in touch with us if you need help developing and managing your hotel concept.
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About the author: patrick landman.
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Hotel Business Plan Template
Hotel business plan.
You’ve come to the right place to create your hotel business plan.
We have helped over 100,000 entrepreneurs and business owners create business plans and many have used them to start or grow their hotel companies.
Below is a template to help you create each section of your Hotel Business Plan Template:
Executive Summary
Business overview.
Pegasus Hotel is a startup full-service independent luxury hotel in Austin, Texas. Owned by two local businessmen, Frank Girard and Miles Butler, it will serve the new up and coming district of the outskirts of Austin and cater to the locals and travelers who crave a luxurious and relaxing atmosphere. Pegasus Hotel will be a 10-story, 360-room hotel with a five-star restaurant and bar, relaxing pool and spa, 20,00 square feet of meeting and event space, a spacious and fully-equipped fitness center, and a view of scenic Austin. Pegasus Hotel will hold weddings and events, meetings, retreats, and those looking to unwind and be pampered while staying at the hotel. The service and amenities will be first class and the concierge will treat guests with extreme care and ensure guest satisfaction is held at an exceptional standard..
Service Offering
The following are the services and amenities that Pegasus Hotel will provide:
- 354 luxury rooms, two presidential suites, and four parlor suites
- Olympic size pool with adjacent hot tubs and surrounding cabanas
- First-class full-service spa
- First-class restaurant and bar
- Spacious fitness center
- Over 20,000 square feet of attractive meeting space for events
- Concierge and butler service
- Complimentary wifi
- Valet service
- Laundry service
- Business center
Customer Focus
Pegasus Hotel will target the population of Austin, Texas, its surrounding communities, and travelers visiting Austin for work or play. Guests will be mid to high level income, enjoy traveling, enjoy visiting spas and high-end restaurants, and work in the corporate or government sector.
Management Team
Pegasus Hotel will be owned by Frank Girard and Miles Butler. They will act in an Owner capacity, and will not be involved in the day to day operations of the hotel. Frank and Miles will hire the appropriate staff to ensure Pegasus Hotel is a profitable and successful business.
Lorenzo Falucci, General Manager, has over twenty years of experience in the hotel industry. He has most recently managed another independent boutique hotel in New York and was excited to be recruited by Frank and Miles to operate the Pegasus Hotel.
Lorenzo will hire Lisa Montgomery as the Director of Sales and David Jimenez as the Assistant General Manager. Lorenzo, Lisa, and David will be the senior management team of Pegasus Hotel. They will oversee all other department managers – Maintenance, Housekeeping, Front Desk/Guest Relations, and Food and Beverage. Each department manager will oversee various employees in their respective department and role. The Pegasus Hotel will have a large and sophisticated operation as each department is integral in the success of the hotel.
Success Factors
Pegasus Hotel will be able to achieve success by offering the following competitive advantages:
- Friendly, attentive, and highly responsive staff that caters to each guest and will be able to provide the best guest experience possible.
- Luxurious amenities throughout the hotel that will make each guest feel pampered.
- Modern and contemporary designed hotel tucked against a beautiful Texas landscape perfectly suited to host any event.
- Competitive rates and frequent guest discounts.
Financial Highlights
Pegasus Hotel is seeking $10,000,000 in debt financing to begin constructing the hotel and commence operations of the business. The funding will be dedicated towards securing the land lease and the hotel build-out and design. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff, furniture, fixtures, and equipment, initial inventory, and working capital. The breakout of the funding is below:
- Secure the land lot, architecture, build-out, and design: $6,000,000
- Hotel furniture, fixtures, and equipment: $2,000,000
- Initial inventory: $750,000
- Three months of overhead expenses (payroll, rent, utilities): $1,000,000
- Marketing & advertising: $150,000
- Working capital: $100,000
The following graph below outlines the pro forma financial projections for Pegasus Hotel.
Company Overview
Who is pegasus hotel.
Pegasus Hotel is a startup full-service independent luxury hotel in Austin, Texas. Owned by two local businessmen, Frank Girard and Miles Butler, it will serve the new up and coming district of the outskirts of Austin and cater to the locals and travelers who crave a luxurious and relaxing atmosphere. Pegasus Hotel will be a 10-story, 360-room hotel with a five-star restaurant and bar, relaxing pool and spa, 20,00 square feet of meeting and event space, and a view of scenic Austin. Pegasus Hotel will hold weddings and events, meetings, retreats, and those looking to unwind and be pampered while staying at the hotel. The service and amenities will be first class and the concierge will treat guests with extreme care and ensure guest satisfaction is to their liking.
The guests rooms will include luxury beds and bedding with best-in-class furniture and bathroom fixtures. Pegasus Hotel will also have a full-service spa that will be able to provide massages, facials, makeup and/or hair service, steam rooms, and a sauna. The Olympic-sized pool will have adjacent hot tubs with a swim-up bar and surrounding cabanas. Pegasus Hotel will be equipped with state-of-the-art fitness equipment in its spacious gym. The restaurant will be a high-end steakhouse that will feature entrees from a world-renowned chef and a wine list cultivated by the area’s most respected sommelier. There will also be over 20,000 square feet of meeting space that will hold weddings, bat mitzvahs, reunions, galas, and any special event.
Pegasus Hotel will be independently owned and operated and will feature its own reservation system and operational software. Each employee will be expertly trained and vetted to pass luxury industry standards of guest service. Pegasus Hotel is committed to providing the best guest experience possible while maintaining a profitable hotel. Pegasus Hotel aims to be a step above the rest and be an unforgettable experience for all who step foot into the hotel.
Pegasus Hotel History
Pegasus Hotel is owned by two local businessmen, Frank Girard and Miles Butler. Frank and Miles have been friends and business associates for over thirty years. They became friends in college while attending The University of Texas at Austin. Frank is a real estate developer specializing in commercial real estate and multi-use land projects. Miles is a software engineer who has built multitudes of software programs for various companies. They have both been extremely successful in their careers and want to divest their investments in a large-scale full-service hotel in Austin, Texas.
Since incorporation, Pegasus Hotel has achieved the following milestones:
- Acquired a 40-acre lot on the outskirts of Austin, Texas.
- Registered Pegasus Hotel, LLC to do business in the State of Texas.
- Hired a consultant to conduct a feasibility study for a full-service hotel in Austin.
- Began developing reservation and operational management software for use at the hotel.
- Began the branding image, logo, website, and social media accounts for the staffing agency.
- Applied for a liquor and mixed beverage permit with the Texas Alcoholic Beverage Commission.
- Hired an architect to begin the design phase of the hotel.
Pegasus Hotel Services
The following will be the services and amenities Pegasus Hotel will provide:
Industry Analysis
The hotel industry is expected to increase to a $133 billion in the next five years. The industry will benefit from increases in travel spending, corporate profit and general consumer spending.
As consumers earn higher incomes and businesses replenish their budgets, travel spending is projected to increase over the next five years. Inbound trips by non-US residents are anticipated to rise 22% over next the five years, while domestic travel is expected to grow 9% during the same period.
The industry will see particularly strong growth in extended-stay hotels, boutique hotels, spa and health retreats and resorts segments. As demand for these auxiliary services picks up, industry employment is anticipated to recover and increase over the next five years. Industry players are also expected to continue expanding abroad into emerging economies, such as Asia, Eastern Europe and South America. These foreign markets are expected to somewhat detract from domestic investment, as they offer higher growth prospects for industry operators.
Customer Analysis
Demographic profile of target market.
The precise demographics for Austin, Texas are:
Customer Segmentation
Pegasus Hotel will primarily target the following customer profiles:
- Individuals and families who have disposable income (mid to high level)
- Frequent travelers
- Individuals who dine out and visit spas frequently
- White collar workers (corporate or government office)
Competitive Analysis
Direct and indirect competitors.
Pegasus Hotel will face competition from other companies with similar business profiles. A description of each competitor company is below.
Hotel Ella is a historic boutique hotel located in Austin, Texas. Located in downtown Austin and walking distance to the University of Texas campus, Hotel Ella is a stylish boutique hotel housed in the historic Goodall Wooten House, one of Austin’s original landmark estates. Constructed in 1900, the Greek revival-style mansion underwent an extensive renovation in 2013, and now offers the perfect balance between modernity and a rich history rooted in the fabric of the neighborhood and the university. Hotel Ella has 47 guest rooms, a cabana-lined pool, and a wrap-around veranda overlooking the front lawn. Hotel Ella features beautifully designed outdoor and indoor spaces perfectly suited for a vacation, wedding, or corporate event. The hotel also features a diverse collection of Texas Modernist works around the hotel grounds.
All guests of Hotel Ella are treated to warm southern hospitality and superior personalized service during their stay. The historic property is appointed with a variety of elegant 21st century amenities. Hotel Ella also offers the following amenities and guest services:
- Complimentary 24-hour guest services
- Complimentary high-speed wi-fi access
- Complimentary electric car charging station
- Complimentary morning newspapers available in the historic mansion
- Complimentary coffee stations from 5am – 11am
- Twice-daily housekeeping service
- Cabana-lined outdoor pool
- Fitness center
- Same-day valet laundry services
- In-room dining by Goodall’s
- Business services: photocopying, printing, postal services, and supplies
Hotel Ella also welcomes dogs of all sizes at no additional fee.
Kimber Modern
Kimber Modern is located in the hip SoCo district of Austin and is intended to draw in the independent urban traveler seeking a unique escape. It is architecturally designed with clean lines and abundant light filtered through canopies of oaks in an artfully landscaped Courtyard. The hotel also encompasses absolute comfort and attention to detail while providing technologically sophisticated rooms in their boutique guest rooms. Guests booking at Kimber Modern will receive complimentary beverages, parking, and WiFi.
Kimber Modern offers the following hotel amenities to its guests:
- Off street covered parking
- Electric car charging station
- Keyless entry
- Complimentary WiFi throughout the hotel
- Multi-level courtyard with a 25-foot glass water feature with multiple areas to lounge
- Jura self-serve coffee system featuring a variety of coffee drinks 24/7
- Beverage bar 24/7
- Gourmet teas
- Virtual concierge – computer, printer, and copier
- Meeting space available for groups
- 3pm check-in and noon check-out
Guests are also available to book the entire hotel for their group.
The Cat Noir Hotel
The Cat Noir Hotel is an award-winning 14-room boutique hotel located in the heart of Austin’s east side. The European-styled boutique hotel includes a restaurant and bar partner, Uncle Nicky’s Italian Specialties. Uncle Nicky’s offers a relaxed all-day dining experience that is themed after cafes in northern Italy. The Cat Noir Hotel opened in 2016 and has been ranked #2 by Travel + Leisure’s World’s Best Awards and Top 20 Best Hotels in Texas by Conde Nast Traveler.
The Cat Noir Hotel’s contemporary design maintains a sense of warmth and a unique aesthetic that is felt through the lobby, outdoor spaces, and each of the unique guest rooms. In addition to the design elements, The Cat Noir Hotel boasts the following features:
- Private roof deck for guests to enjoy the stunning views of downtown, the Texas Capitol, and the University of Texas
- Outdoor patio and courtyard areas on all levels
- Artwork from local artists
Each of the guest rooms include Juliet balconies with neighborhood views, fine linens, and Simmons luxury plush mattresses.
Competitive Advantage
Pegasus Hotel will be able to offer the following advantages over their competition:
Marketing Plan
Brand & value proposition.
Pegasus Hotel will offer the unique value proposition to its clientele:
- Professional and attentive staff dedicated to ensure complete guest satisfaction.
- Various amenities throughout the hotel for any guest to enjoy.
- Modern and contemporary design with beautiful Texas views throughout the entire hotel.
- Competitive rates.
Promotions Strategy
The promotions strategy for Pegasus Hotel is as follows:
Social Media
Pegasus Hotel will invest in advertising the hotel on social media platforms Facebook, Instagram, LinkedIn, and Twitter. By using targeted social media marketing, Pegasus Hotel will be able to reach those who frequent nice restaurants and spas and travel frequently.
Website/SEO Marketing
Pegasus Hotel will invest in a strong SEO presence so that when someone enters “Austin boutique hotel” or “first class hotel near me” in their Google or Bing search bar, Pegasus Hotel is at the top of the list. Their website will feature photos of the guest rooms, meeting areas, pool, spa, fitness center, and restaurant/bar. Future guests will be able to make a reservation to book their future stay on the website and access contact information for either a Director of Sales or General Manager of the property.
Pegasus Hotel will request all requests for news stories regarding the development of the hotel, owner/developer information, opening dates, etc. By accommodating the press’ requests for stories, it will also be free advertising for the public to learn about the new up and coming luxury hotel.
Frank and Miles will invest in a billboard in downtown Austin where the mid to upper class of residents frequent. The hotel will be minimalistic but eye-catching. It will feature an attractive rendering of the hotel along with the website. Curious passersby will be directed to visit the hotel’s website for information.
Third Party Booking Websites
Once the hotel is nearing 60 days towards opening, all of the third party booking websites will feature Pegasus Hotel so that travelers visiting Austin will be able to see it listed as an option for Austin hotels.
Bridal Shows and Wedding Industry Events
Pegasus Hotel will have a table at all of Austin’s bridal shows and wedding industry events. It will attract those couples searching for a venue to accommodate their special day.
The pricing of Pegasus Hotel will be moderate and on par with competitors so customers feel they receive value when purchasing its guest rooms and services.
Operations Plan
The following will be the operations plan for Pegasus Hotel.
Operation Functions:
- Frank and Miles will be the owners of the hotel and hire the appropriate staff to manage the hotel. Frank will act as CFO of the hotel and Miles will be in charge of the reservation system and operations software. Miles developed the software and will focus on making sure it’s always functional and efficient.
- General Manager will be hired to oversee the entire staff and operations of the hotel to include guest satisfaction, oversee vendor contracts, events, and making sure that each department is running effectively and efficiently.
- Assistant General Manager to assist the General Manager with overseeing the staff, with particular attention to guest satisfaction and front desk operations.
- Director of Sales will be hired to sell events, corporate accounts, and group bookings for the hotel.
- Maintenance Engineer will be hired to attend to all mechanical and plumbing issues that may arise.
- Executive Housekeeper will be hired to lead the team of housekeepers to make sure all areas of the hotel are being cleaned to Pegasus Hotel standards and that each guest is receiving all accommodations to their requested schedule.
Milestones:
Pegasus Hotel will have the following milestones completed in the next six months.
8/1/202X – Purchase land lot and break ground on new hotel.
8/15/202X – Finalize architectural renderings and hire a General Contractor to build the hotel.
9/1/202X – Finalize contract with advertising company for them to design the branding image of the hotel, logo, website, billboard, and social media accounts.
9/15/202X – Begin social media and website advertising campaign. Billboard with a teaser of ‘Coming Soon’ will go up in downtown Austin.
10/5/202X – Hire General Manager and Director of Sales.
10/15/202X – Attend annual Wedding Industry Event with a table to begin advertising Pegasus Hotel.
11/1/202X – Pegasus Hotel will go live on third party booking websites.
11/15/202X – Remainder of staff will be hired to begin training program.
11/30/202X – Final walk-thru of newly constructed Pegasus Hotel.
12/15/202X – Begin furnishing and interior design of the hotel.
1/1/202X – Grand Opening of Pegasus Hotel.
Lorenzo will hire Lisa Montgomery as the Director of Sales and David Jimenez as the Assistant General Manager. After an exhaustive search, Lorenzo believes has found the next two senior management positions to ensure the success of the hotel. Each comes with an impressive resume of prior hotel sales and operational experience.
Lorenzo, Lisa, and David will be the senior management team of Pegasus Hotel. They will oversee all other department managers – Maintenance, Housekeeping, Front Desk/Guest Relations, and Food and Beverage. Each department manager will oversee various employees in their respective department and role. The Pegasus Hotel will have a large and sophisticated operation as each department is integral in the success of the hotel.
Lorenzo, Lisa, and David will meet with Frank and Miles monthly to update them on progress and overall operations and sales efforts of the Pegasus Hotel.
Financial Plan
Key revenue & costs.
The revenue drivers for Pegasus Hotel are the revenues it will collect when guests book a reservation at the hotel. The hotel will also collect revenues from its restaurant and bar, spa, and events it will host.
The cost drivers will be the payroll and overhead costs to staff the hotel. Other costs will involve the land lease, utilities, marketing costs, and technology fees. There will also be costs associated with the maintenance of the hotel, food and beverage inventory, spa inventory, and hotel guest room supplies.
Funding Requirements and Use of Funds
Key assumptions.
The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.
- Initial Number of Room Nights Sold per Month: 8,000
- Number of Events per Month: 30
- Land Lease per Year: $1,500,000
Financial Projections
Income statement, balance sheet, cash flow statement, hotel business plan faqs, what is a hotel business plan.
A hotel business plan is a plan to start and/or grow your hotel business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.
You can easily complete your hotel business plan using our Hotel Business Plan Template here .
What Are the Main Types of Hotel Companies?
There are many types of hotel companies. Most hotels are affiliated with a hotel franchise company. Other hotel companies distinguish themselves by star level- 4 to 5-star hotels are on the higher end of rate and amenity offerings, whereas 2 to 3-star hotels cater more towards the everyday business travelers and families.
What Are the Main Sources of Revenue and Expenses for a Hotel Business?
The primary source of revenue for a hotel business are the room fees it charges each guest to stay at the hotel. Revenues are also collected for different amenity offerings, such as room service, restaurant and bar revenue, spa revenues, and guest shop revenue.
The key expenses for a hotel business are the costs for inventory, maintenance, supplies, furniture, fixtures, and equipment, technology, and payroll of the staff. Other expenses will be the rent, utilities, and overhead costs, if applicable.
How Do You Get Funding For Your Hotel Business Plan?
Hotel businesses are most likely to receive funding from banks. Typically you will find a local bank and present your business plan to them. Angel investors and other types of capital-raising such as crowdfunding are other common funding sources.
What are the Steps To Start a Hotel Business?
Starting a hotel business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.
1. Develop A Hotel Business Plan - The first step in starting a business is to create a detailed hotel business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.
2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your hotel business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your hotel business is in compliance with local laws.
3. Register Your Hotel Business - Once you have chosen a legal structure, the next step is to register your hotel business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.
4. Identify Financing Options - It’s likely that you’ll need some capital to start your hotel business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.
5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.
6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.
7. Acquire Necessary Hotel Equipment & Supplies - In order to start your hotel business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.
8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your hotel business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.
Learn more about how to start a successful hotel business:
- How to Start a Hotel Business
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Hotel Business Plan Template
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Hotel Business Plan
Executive summary.
In order to fulfill our vision we will require [Amount] in capital, which will be allocated roughly according to the following table:
If we are fully capitalized, we hope to be profitable by MM / DD / YYYY
Marketing plan
Our Clientele
Our Competition
Our Specific Marketing Plan
Facilities/Services
Operations plan.
Our Suppliers
Our Personnel
Expense Projection
We expect our monthly outlay of expenses to approximate to the following:
Describe here
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15+ Hotel Business Plan Samples – PDF, Word
Hotels are one of the most lucrative businesses one can get into. They are especially profitable if the hotel business plan in question is located in a busy city or near a popular tourist destination. Being part of the hospitality industry, you will never run out of customers as long as your hotel is managed properly. To run your hotel plan profitability, you must have a proper business plan that will help you dance your worries away. We have various hotel business plan templates applicable for various related businesses and accommodations such as a startup mini hotel, guest house motel, 5 star resort lodge, 3 star spa, and boutique, etc. Keep scrolling!
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General FAQs
1. what is a hotel business plan, 2. what is the purpose of using a hotel business plan, 3. what should a hotel business plan include.
- Executive summary
- A detailed sample analysis of your company and the work you do
- Industry and market analysis
- Client and customer evaluation
- Your competitors and other sources
- Marketing and operation plan, etc.
4. What Is a Successful Business Plan?
5. how do you write a hotel business plan.
- Operations : explain how your organization will operate daily
- Management : mention your management team
- Financial details : this is where you mention all key finances
- Project planning : define all the targets you want to hit
- Appendix and other details.
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6+ SAMPLE Small Hotel Business Plan in PDF
Small Hotel Business Plan
6+ sample small hotel business plan, what is a small hotel business plan, elements of a small hotel business plan, tips on small hotel business plan, how to start a small hotel business, how large is the market for hotels, how do hotels get their revenues.
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Sample Small Hotel Business Plan
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Small 3-Star Hotel Business Plan
Small Hotel Business Plan Example
Printable Small Hotel Business Plan
Executive summary, business summary, business overview, market analysis.
- Economic Environment – This is the factor affecting inflation, increasing salaries, and types of employment. Know how people will want to spend money and why will they want to get away sometimes.
- Geographical Environment – This factor will tell whether there can be many people that will visit your hotel. You must consider the geographical location because you have to ensure that your hotel can be a likable place for customers.
- Legal Environment – Does your hotel comply with all the state laws? You must follow all the rules like liquor licenses so that your guests will not have any problem with your hotel. They need a place where they can do all things legally.
- Technology Environment – Your hotel should be updated with the latest technology. This can make your hotel more elegant and many will want to visit your hotel. State-of-the-art technology can set your hotel apart from other hotels.
Competitive Analysis
Advertising and operational strategy, financial plan, step 1: start with a plan, step 2: make a proposition, step 3: make a marketing plan, step 4: get capital, step 5: build the small hotel, step 6: hire key workers, step 7: launch the hotel, share this post on your network, you may also like these articles, 14+ sample project assessment plan in pdf.
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Hotel Business Plan
Are you thinking of starting a hotel business We have prepared a solid hotel business plan sample that guides you on every stage of your business plan writing
Owning a hotel is a dream for many people, who like to organize and engage in multiple different activities. From having unique themes to beautiful decor, a hotel business gives you an ample amount of chances to showcase your creativity.
But the pandemic might have naturally left many of you doubting the viability of hotels.
With a vast variety of reasons a hotel serves, the hotel business is very less likely to become irrelevant.
Most leading hotel businesses today, rely on software to manage their operations. Kiosk Mode for automated check-ins, on-the-spot reservations, and feedback, hotel management software for customer management, and revenue control are just some of the many solutions that streamline hotel management.
And all you need to have a thriving hotel business is a hotel business plan that’ll help you get the maximum out of the profitable times and stay prepared for unexpected circumstances.
Industry Overview
The hotel industry stood at a whopping market value of 0.95 trillion dollars in 2021 and is recovering at a rapid rate after the COVID-19 pandemic.
The hotel industry is ruled by several major players, hence it is a good practice to go through their case studies and business strategies. There’s a high chance that you might find something very useful for yourself.
Work vacations and leisure trips are the major factors that contribute to the growth of the hotel industry.
Things to Consider Before Writing a Hotel Business Plan
Select a good location.
An accessible and well-located hotel is much more likely to work than a one that is situated otherwise. Also, the neighborhood you set up your hotel in matters a lot too. Hence, it is important to choose the right size of land and locality to set your hotel in.
Find good suppliers
From laundry, housekeeping to the right ingredients for the restaurant, there are several supplies a hotel needs. And to satisfy your customers it is essential to get the best of everything. After all, the reputation and image of your hotel matter a lot when it comes to running a hotel business.
Know your financial requirements
A hotel has several financial requirements from location to installation of appliances, furniture, decor, and salaries of employees. This also makes for a complex financial structure. Hence, it is good to figure out and keep an account of all your financial needs before getting started.
Find your USP
In the mass of industry giants and small businesses that exist in the business, it is important to have something that helps you stand apart from everyone else. From theme-based decor to additional services and ventures your USP can be anything. But make sure that you find one before you get up and running.
Chalking Out your Business Plan
If you are planning to start a new hotel business, the first thing you will need is a business plan. Use our sample Eleven Palms – Hotel Business Plan created using upmetrics business plan software to start writing your business plan in no time.
Before you start writing a business plan for your new hotel business, spend as much time as you can reading through some samples of the hotel and lodging-related business plans .
Reading some sample business plans will give you a good idea of what you’re aiming for and also it will show you the different sections that different entrepreneurs include and the language they use to write about themselves and their business plans.
We have created this sample Eleven Palms – Hotel Business Plan for you to get a good idea about how a perfect hotel business plan should look like and what details you will need to include in your stunning business plan.
Hotel Business Plan Outline
This is the standard hotel business plan outline which will cover all important sections that you should include in your business plan.
- Business Overview
- Mission Statement
- Location and Facility
- Steve Cowan
- Key Advisors to the Company
- Economic Environment
- Geographical/Competitive Environment
- Legal/Political Environment
- Technology Environment
- High Line ($139-$750 per night, depending upon season)
- Motel ($59-$119 per night, depending upon season)
- Bed & Breakfast (B&B)
- Summary of Opportunities and Threats in the Environment
- Competitive Advantage
- Industry Keys to Success
- SWOT Analysis
- Marketing Strategies
- Target Markets – Consumer
- Positioning and Product Strategy
- Distribution Strategy
- Pricing Strategy
- Service and Support Philosophy
- New Business Segment
- Publicity and Public Relations
- Guest Reward Programs
- Advertising
- Marketing and Promotion Budget
- Evaluation & Control Strategies
- Project Funding Summary
- Phase 1 Funding Amounts Sought
- Financial Plan Assumptions
- Income Statement Projections
- Balance Sheet
- Cash Flow Projections
After getting started with Upmetrics , you can copy this sample hotel business plan template into your business plan and modify the required information and download your hotel business plan pdf or doc file.
It’s the fastest and easiest way to start writing your business plan.
Business Planning Resources
We have plenty of free business planning resources available to help you with your planning. You can download our resources to learn all about business planning.
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DISCLAIMER: The business plans, templates, and articles contained on upmetrics.co are not to be considered as legal advice. All content is for informational purposes, and upmetrics makes no claim as to accuracy, legality or suitability. The site owner shall not be held liable for any errors, omissions or for damages of any kind.
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We have put together a hotel business plan template to help you on your way. Check out our approach based on 10 critical points, being: Executive Summary Company Analysis Industry Analysis Customer Analysis Competitive Analysis Strategic Plan Operations Plan Management Team Financial Plan Key Milestones Appendix Steps of your Hotel Business Plan
You can download the Hotel business plan (including a full, customizable financial model) to your computer here <– Management Team Pegasus Hotel will be owned by Frank Girard and Miles Butler. They will act in an Owner capacity, and will not be involved in the day to day operations of the hotel.
Hotel Business Plan Prepared for: [Client.FirstName] [Client.LastName] [Client.Company] Prepared by: [Sender.FirstName] [Sender.LastName] [Sender.Company] Executive summary Your first step in creating a hotel business plan is to create the Executive Summary, which is a few paragraphs that give a broad strokes overview of your business.
Free Feasibility Study and Hotel Business Plan Sample modul.ac.a Details File Format PDF Size: 1MB Download Free Motel Hospitality Enterprise Industry Business Plan failteireland.ie Details File Format PDF Size: 694kB Download Free Lisbon Three Star Hotel Accommodation Business Plan repositorio.iscte-iul.pt Details File Format PDF Size: 3MB
A small hotel business plan is a document that has the plans of entrepreneurs for their small hotel business. It has a plan outline of its aims and goals. It has a strategic plan that is going to be used to make the business successful. A business plan is a roadmap that businessmen can use to guide them in running the business.
After getting started with Upmetrics, you can copy this sample hotel business plan template into your business plan and modify the required information and download your hotel business plan pdf or doc file. It’s the fastest and easiest way to start writing your business plan.