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Hotel Business Plan

OK, so you have decided to realize your dream and become a hotel entrepreneur, so now you need to start writing your hotel business plan . 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 revenue management consulting and 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.  

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4. Customer Analysis

In-depth information on your target market, including geographic, demographic, socioeconomic, psychographic, and behavioural segmentation details. It can also help you to keep up to date with the latest hotel marketing trends to understand which are the types of guests who will be staying 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 hotel marketing strategies 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!

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Uncover the hidden revenue potential of your hotel or resort.

Need help to Develop and Manage your Hotel Concept?

Our revenue management consulting experts 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 for your boutique hotel, resort, B&B, aparthotel, hostel, or any other lodging concept for that matter.

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, and help bring your hotel to the next level with our hotel consulting services.

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How to Write a Successful Hotel Business Plan + Template

Creating a business plan is essential for any business, but it can be especially helpful for hotel businesses who want to improve their strategy and/or raise funding.

A well-crafted business plan not only outlines the vision for your company, but also documents a step-by-step roadmap of how you are going to accomplish it. In order to create an effective business plan, you must first understand the components that are essential to its success.

This article provides an overview of the key elements that every hotel business owner should include in their business plan.

Download the Ultimate Hotel Business Plan Template

What is a Hotel Business Plan?

A hotel business plan is a formal written document that describes your company’s business strategy and its feasibility. It documents the reasons you will be successful, your areas of competitive advantage, and it includes information about your team members. Your business plan is a key document that will convince investors and lenders (if needed) that you are positioned to become a successful venture.

Why Write a Hotel Business Plan?

A hotel business plan is required for banks and investors. The document is a clear and concise guide of your business idea and the steps you will take to make it profitable.

Entrepreneurs can also use this as a roadmap when starting their new company or venture, especially if they are inexperienced in starting a business.

Writing an Effective Hotel Business Plan

The following are the key components of a successful hotel business plan:

Executive Summary

The executive summary of a hotel business plan is a one to two page overview of your entire business plan. It should summarize the main points, which will be presented in full in the rest of your business plan.

• Start with a one-line description of your hotel company
• Provide a short summary of the key points in each section of your business plan, which includes information about your company’s management team, industry analysis, competitive analysis, and financial forecast among others.

Company Description

This section should include a brief history of your company. Include a short description of how your company started, and provide a timeline of milestones your company has achieved.

If you are just starting your hotel business, you may not have a long company history. Instead, you can include information about your professional experience in this industry and how and why you conceived your new venture. If you have worked for a similar company before or have been involved in an entrepreneurial venture before starting your hotel firm, mention this.

You will also include information about your chosen hotel business model and how, if applicable, it is different from other companies in your industry.

Industry Analysis

The industry or market analysis is an important component of a hotel business plan. Conduct thorough market research to determine industry trends and document the size of your market. 

Questions to answer include:

• What part of the hotel industry are you targeting?
• How big is the market?
• What trends are happening in the industry right now (and if applicable, how do these trends support the success of your company)?

You should also include sources for the information you provide, such as published research reports and expert opinions.

Customer Analysis

This section should include a list of your target audience(s) with demographic and psychographic profiles (e.g., age, gender, income level, profession, job titles, interests). You will need to provide a profile of each customer segment separately, including their needs and wants.

For example, a hotel business’ customers may include:

• Business travelers
• Leisure travelers
• Groups and conventions
• Wedding parties
• Local residents

You can include information about how your customers make the decision to buy from you as well as what keeps them buying from you.

Develop a strategy for targeting those customers who are most likely to buy from you, as well as those that might be influenced to buy your products or hotel services with the right marketing.

Competitive Analysis

The competitive analysis helps you determine how your product or service will be different from competitors, and what your unique selling proposition (USP) might be that will set you apart in this industry.

For each competitor, list their strengths and weaknesses. Next, determine your areas of competitive differentiation and/or advantage; that is, in what ways are you different from and ideally better than your competitors.

Below are sample competitive advantages your hotel business may have:

• Location : if your hotel is located in an ideal spot for leisure or business travelers, this could be a key competitive advantage
• Amenities : if your hotel offers unique amenities that are appealing to your target market segments, this could give you a leg up on the competition
• Customer service : if you focus on delivering exceptional customer service, this could be a key selling point

Marketing Plan

This part of the business plan is where you determine and document your marketing plan. . Your plan should be clearly laid out, including the following 4 Ps.

• Product/Service : Detail your product/service offerings here. Document their features and benefits.
• Price : Document your pricing strategy here. In addition to stating the prices for your products/services, mention how your pricing compares to your competition.
• Place : Where will your customers find you? What channels of distribution (e.g., partnerships) will you use to reach them if applicable?
• Promotion : How will you reach your target customers? For example, you may use social media, write blog posts, create an email marketing campaign, use pay-per-click advertising, launch a direct mail campaign. Or you may promote your hotel business via public relations (PR), speaking engagements, or other thought-leadership activities.

Operations Plan

This part of your hotel business plan should include the following information:

• How will you deliver your product/service to customers? For example, will you do it in person or over the phone only?
• What infrastructure, equipment, and resources are needed to operate successfully? How can you meet those requirements within budget constraints?

The operations plan is where you also need to include your company’s business policies. You will want to establish policies related to everything from customer service to pricing, to the overall brand image you are trying to present.

Finally, and most importantly, in your Operations Plan, you will lay out the milestones your company hopes to achieve within the next five years. Create a chart that shows the key milestone(s) you hope to achieve each quarter for the next four quarters, and then each year for the following four years. Examples of milestones for a hotel business include reaching $X in sales. Other examples include adding new locations, launching a new product/service, or hiring new employees.

Management Team

List your team members here including their names and titles, as well as their expertise and experience relevant to your specific hotel industry. Include brief biography sketches for each team member.

Particularly if you are seeking funding, the goal of this section is to convince investors and lenders that your team has the expertise and experience to execute on your plan. If you are missing key team members, document the roles and responsibilities you plan to hire for in the future.

Financial Plan

Here you will include a summary of your complete and detailed financial plan (your full financial projections go in the Appendix). 

This includes the following three financial statements:

Income Statement

Your income statement should include:

• Revenue: how much revenue you generate.
• Cost of Goods Sold: These are your direct costs associated with generating revenue. This includes labor costs, as well as the cost of any equipment and supplies used to deliver the product/service offering.
• Net Income (or loss): Once expenses and revenue are totaled and deducted from each other, this is the net income or loss

Sample Income Statement for a Startup Hotel Business

Balance Sheet

Include a balance sheet that shows your assets, liabilities, and equity. Your balance sheet should include:

• Assets : All of the things you own (including cash).
• Liabilities : This is what you owe against your company’s assets, such as accounts payable or loans.
• Equity : The worth of your business after all liabilities and assets are totaled and deducted from each other.

Sample Balance Sheet for a Startup Hotel Business

Cash Flow Statement

Include a cash flow statement showing how much cash comes in, how much cash goes out and a net cash flow for each year. The cash flow statement should include:

• Cash Flow From Operations
• Cash Flow From Investments
• Cash Flow From Financing

Below is a sample of a projected cash flow statement for a startup hotel business.

Sample Cash Flow Statement for a Startup Hotel Business

You will also want to include an appendix section which will include:

• Your complete financial projections
• A complete list of your company’s business policies and procedures related to the rest of the business plan (marketing, operations, etc.)
• Any other documentation which supports what you included in the body of your business plan.

Writing a good business plan gives you the advantage of being fully prepared to launch and/or grow your hotel company. It not only outlines your business vision but also provides a step-by-step process of how you are going to accomplish it.

As you can see, there is a lot that goes into creating a successful hotel business plan. But with careful planning and execution, you can set your hotel business up for success.  

Finish Your Hotel Business Plan in 1 Day!

Hotel Business Plan Template

Written by Dave Lavinsky

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.

Sample Hotel Business Plan Template

Below is a template to help you create each of the key elements of your own hotel business plan:

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 mission statement of the hotel is to provide first class service and amenities.

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 guest service standards. 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 hospitality 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 future 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 capital 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 our direct competitors 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 local competition:

Marketing Plan

Brand & value proposition.

Pegasus Hotel will offer the unique value proposition to its target local market:

• 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 detailed information.

Third Party Booking Websites

Once the hotel is nearing 60 days towards opening, all of the third-party 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 hotel 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 hotel operations 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 business.

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 hotel 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 Secure Funding For Your Hotel?

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. This is true for a business plan for a hotel, a resort or a boutique hotel.

What are the Steps To Start a Hotel Business?

Starting a hotel business can be an exciting endeavor. Having a detailed roadmap of the steps to start a business will help you stay focused on your business goals and get started faster.

• Develop A Hotel Business Plan - The first step in starting a business is to create a comprehensive business plan that outlines all aspects of the venture. This includes market research to identify the potential market size and target audience , the hotel’s services, pricing strategies and a detailed financial forecast.  
• 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.
• 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. 
• 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. 
• 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. 
• 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. 
• 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. 
• Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your own hotel business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective digital marketing strategy including SEO and paid advertising . You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a new hotel business:

• How to Start a Hotel Business

Where Can I Get an Example Hotel Business Plan PDF?

You can download our example hotel business plan PDF template here . This is a business plan template you can use in PDF format.

Other Helpful Business Plan Templates

Franchise Business Plan Template Resort Business Plan Template Bed and Breakfast Business Plan Template

• Sample Business Plans

Hotel Business Plan

Have you ever thought of owning a hotel? Great call!

Starting your own hotel business can be an exciting and rewarding venture, as the hospitality industry is booming nowadays, fueled by leisure trips and work vacations.

Whethe­r you’re planning to start a cozy bed & breakfast amenity or a luxury resort, the first thing you’ll need is a solid business plan to make it thrive.

Need help writing your plan in order?

Worry not; we’ve got you covered. This hotel business plan template will help you get started and guide you on what to write in the sections of your plan.

Sounds good? Let’s dive right in!

What Is a Hotel Business Plan?

A hotel business plan is a professional document that outlines your business idea, goals, and strategies to achieve them. Whether you’re a startup or expect to grow an existing one, you’ll need a solid business plan.

It provides a clear understanding of your hotel business, starting from its goals, target market, and service offerings to marketing strategies, financial projections, and long-term growth plans. So, it serves as a strategic blueprint for your entrepreneurial journey.

Now that you know what a hotel business plan is, let’s understand why you need one and how it can help you.

Why You Need a Business Plan for Your Hotel?

As a hotelier, having a good business plan is essential for opening and running your hotel business.

It helps you get your hotel business off the ground and make it successful, navigating all the intricacies of hotel management effectively.

Consider these several reasons why you need a business plan for your hotel:

Define your goals

While writing a business plan, you’ll need to clearly define your specific goals & objectives and the strategies you’ll use to achieve them. So, it’s like keeping a detailed map for your business.

Manage finances better

A well-prepared business plan helps you show how much money you’ll require to start and run your hotel, and how much revenue or profit you’ll earn from it. It also includes detailed budgets, expense estimates, and ongoing operational costs.

Get funding from investors or banks

A comprehensive plan is important if you need money to start and grow your business. It helps you demonstrate to the potential investors or banks that you have a solid plan for success and the potential for return on investment.

Know your competitors & customers

With thorough market research and competitive analysis, your business plan helps you identify and understand your competitors and customers. Also, you can assess the customer needs and distinguish your hotel from the competition.

Identify potential risks

An actionable plan will allow you to anticipate the potential risks and the strategies to mitigate them. This way, you can avoid critical pitfalls before they happen and save meaningful resources.

In simple terms, a business plan is not just a written document, but it’s a valuable tool for planning, managing, and growing your hotel venture.

Now without further ado; let’s explore the key components of a hotel business plan.

Key Components of a Hotel Business Plan

While writing a comprehensive business plan, you should include the following 10 key components in your hotel business plan:

1. Executive Summary

An executive summary is the first and foremost section of a hotel business plan, providing a high-level overview of your entire business strategy.

Generally, it would be written at the end once all the other sections are finalized. This is so because it highlights the most important points you mentioned in the rest of your plan.

In your executive summary, consider including the following details:

• Your business idea & goals
• Vision-mission statements
• Market opportunities
• Target audience
• Marketing efforts and USPs
• Financial outlook

In short, this section is your chance to present a persuasive and compelling snapshot of your business that impresses potential investors or readers. And ensure you keep it short and simple (2 or 3 pages).

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2. Company Overview

The company overview section provides a detailed description of your business, from its basic information (name, size, and location) to objectives.

So, it clearly explains your hotel business concept in detail and outlines the future goals that every potential investor or lender needs to know.

For instance, you may ask yourself these questions to plan this section:

• What is the size and legal structure of your hotel? (e.g., LLC, corporation, sole proprietorship, partnership)
• Who are the hotel owners or shareholders?
• What is your business’s background and founding story?
• What milestones have you achieved till now?
• What are the short-term goals and long-term objectives?

Overall, your company overview section is an in-depth understanding of your business, so make it engaging and to the point.

3. Market Analysis

The market analysis section of a business plan provides a thorough explanation of the hospitality industry based on the scale of your hotel.

So, you’ll need to conduct comprehensive market research and industry analysis to identify the market size & growth potential, target market, customer behavior, market demand, and regulatory environment.

In addition to that, you may include data on market trends that might impact your business, such as technology, politics, environmental concerns, or global health issues.

This way, you can position your business strategically and justify your hotel’s future growth in the current market.

4. Competitive Analysis

Competitive analysis is a meticulous study of your key competitors depending on where your hotel is located.

Here, you should consider including details of your direct and indirect competitors in the local market, along with their strengths & weaknesses.

This section is an important aspect of market research that helps you evaluate the competitive environment and determine what sets you apart from others. You can even explain your competitive advantages and identify your USPs.

5. Service Offerings

In this section, you should mention details of the primary services and amenities you plan to offer.

You may include different types of rooms and amenities available, any special services such as event hosting, spas, restaurants, and any unique products offered.

This will help investors understand what exactly your business offers, how much it charges, and what value it brings to the market.

6. Sales and Marketing Strategies

The sales and marketing plan outlines promotional strategies and tactics you’ll use to reach your target audiences and maximize revenue.

It involves careful consideration of several key aspects, like who you’re trying to reach, what message you want to tell them, and how you plan to attract and retain them.

A well-crafted sales and marketing plan is essential for brand awareness, revenue growth, profitability, and long-term success, as it ensures your hotel stands out and thrives in the hospitality industry.

As a hotel business owner, your strategies may include online and offline marketing or external promotional campaigns that must align with your hotel’s goals and objectives. For example:

• Unique Selling Propositions(USPs)
• Social media marketing
• Strong web presence
• Word-of-mouth promotions
• Networking with other businesses

Well, this section assists potential investors to better understand how you’ll promote your business and generate bookings.

7. Management Team

The management team section is an integral part of a hotel business plan as it introduces the hotel owners, key executives, and managers.

So, you may consider highlighting their roles and responsibilities, qualifications, industry experience, and expertise that help grow your hotel business. For easy understanding, refer to the below hotel owner profile:

Apart from that, clearly explain your compensation plan and organizational structure that will help you make better strategic decisions. You can even give brief bios of your external advisors, consultants, or board members(if any).

8. Operations Plan

The operations plan describes the day-to-day business operations and activities that keep your hotel running smoothly.

For instance, you may consider including insights into the operational structure of your hotel and details about facilities management, staffing & training, customer service policies, and administrative processes.

Additionally, you can mention any technology or systems that will be used to support hotel operations.

9. Financial Plan

Preparing a strong financial plan with realistic financial projections is very crucial in business planning. Typically, it covers the financial projections for the first few years.

Your hotel financial plan offers a detailed roadmap for the hotel’s financial future, summarizing sales & revenue projections, cash flow estimates, balance sheets, and profit & loss statements.

Besides these financial statements, you may consider adding your financial requirements, startup costs, and risk analysis & mitigation plan.

Simply put, a well-written financial plan provides a clear understanding of the ROI potential and ensures the hotel’s success and long-term sustainability.

10. Appendix

In the appendix, you can attach any supporting documents that don’t fit into specific sections but support your plan. It includes

• Market research data and surveys
• Licenses & permits
• Leases or contracts
• Resumes of key executives
• Architectural blueprint of the facility

You may also include any additional documents or attachments that your readers might use for reference.

Download Free Hotel Business Plan Template

Need extra help or any sample business plan to start writing your hotel business plan? Well, here you go; download our free hotel business plan pdf now and get started.

This advanced business plan template has been specifically designed for your hotel business. With step-by-step instructions and examples, it assists you in developing your own plan.

Simply import data into your editor and use it as a reference!

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

Start Preparing Your Business Plan with AI

Drafting a comprehensive business plan from scratch can be an overwhelming task, right? But not to worry; Upmetrics can be your savior here!

It’s a modern, AI business plan generator that helps small business owners and new entrepreneurs create professional business plans in minutes.

From easy-to-follow guides and 400+ sample business plans to financial forecasting features, Upmetrics offers everything to streamline the entire business planning process.

So, wait no longer; start preparing your plan!

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Guide to Making a Business Plan Presentation

Frequently asked questions, do i need to include financial projections in my hotel business plan.

Of course, you have to include projections in your hotel business plan. These projections help you present a complete overview of your financial strategy and the financial viability of your hotel. Also, you can show your business’s profitability to attract potential investors or financial institutions and secure funding or loans.

What marketing strategies are effective for a new hotel?

For a new hotel, these marketing strategies are the most effective ones:

• Developing and optimizing a professional website for your hotel
• Leveraging social media channels and email marketing
• Utilizing Online Travel Agencies (OTAs) for bookings
• Advertising through events or travel trade shows
• Offering loyalty or referral programs

Where can I find resources and templates for writing a hotel business plan?

Using business planning software like Upmetrics can be a good choice. It provides hundreds of business resources and a sample hotel business plan template to write your hotel business plan. Simply export the template in the editor and finish your plan in a few hours.

What tips can help secure funding for a hotel business?

If you want to secure funding for your hotel, consider following these tips:

• Writing a comprehensive business plan
• Showcasing the potential profitability of your hotel
• Reaching out to family and friends for investments
• Creating a polished & compelling pitch
• Visiting hotel industry conferences and events

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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What is a Hotel Business Plan, and Why Do You Need One

90,562 hotels and motels were operating across the United States in 2022, offering travelers more than five million bookable guest rooms .   

That is a lot of competition. And precisely the reason why you need a hotel business plan.   

With this plan, you convince financial institutions that your hotel is a more valuable investment opportunity than thousands of others. You also have a reliable resource to guide you to opening day, help you navigate every trial that comes with running a hotel, and provide a set framework to support your staff.  

In this post, we explain what a hotel business plan is, the benefits it offers, the most useful information to include, and a few issues to avoid during planning. Let’s get started!  

Supercharge your venue's success with data-driven strategies

What is a hotel business plan?  

A hotel business plan is a detailed roadmap for turning your business idea into a successful, fully operational hotel. The plan outlines the overarching approach to your long-term goals, establishes tangible benchmarks with set timelines to work toward, and identifies the operational processes that will support long-term and short-term business goals.  

Key benefits of a hotel business plan  

You know what a hotel business plan is and why you need one, but what are the benefits? What really makes the effort spent drafting a business plan so worth it?  

Clarity and direction  

Creating a reliable hotel business plan supports you in every stage of development. From initial drafting and meeting with investors to officially welcoming guests, you have clarity in your current phase and direction for the next. With your business plan, distinct internal practices keep you on track, and a well-defined strategy amplifies your negotiating position with partners and investors. Once funding is secured and operations begin, your business plan provides clear direction for a well-trained team, ensuring all staff and management work cohesively toward shared objectives.  

Securing financing  

For new hotels or those looking to expand, convincing banks, investors, and other financial institutions of your hotel’s inherent value and financial viability is crucial. When you present a well-prepared business plan to financial entities, offering detailed research and transparent monetary projections, you increase the chances of securing funding for operational developments, property renovations, or expansion projects. With a hotel business plan amplifying your negotiating position, the notoriously difficult process of securing finances becomes more manageable.   

Calculated decision making  

In the densely competitive hospitality industry , effective decision-making can mean the difference between a prosperous hotel and a failed one. With your business plan in place, you can routinely reference the document to identify potential growth prospects , assess risks and value, and allocate resources and time wisely. By basing decisions on a consistent framework grounded in trusted research and strategic foresight, you can navigate market fluctuations, adapt to shifting customer demands, capitalize on new opportunities, and ensure every choice made is the best option for your hotel.  

Priority management  

Running a hotel requires a skillful balance of priorities, from upholding guest standards and managing teams to maintaining efficient operations and driving profitability. With a strategic business plan, you can identify which priorities have the most emergent need, where resources can be allocated most effectively, and guarantee every aspect of your hotel is properly maintained to maximize performance.  

Performance tracking  

A significant benefit of a well-crafted business plan is a clear outline of measurable performance goals . Pairing implementation strategies with routine progress tracking, result evaluation, and data-driven adjustments supports continuous improvement and upholds a competitive edge.  

Important metrics to track include:  

• Occupancy rates  
• Average daily rates (ADR)  
• Guest satisfaction scores  
• Revenue per available room (RevPAR)  

Gain valuable group insights to improve performance

What is included in a hotel business plan?  

Now that you know the benefits of a hotel business plan, the decision to make one is easy! While the planning itself can be complex, below are suggestions for ideal sections to include in a successful plan to streamline the process.  

Executive summary  

The executive summary provides a brief overview of the purpose of your hotel business plan. It’s crucial to make this part of your plan clear and captivating despite its short length, as many investors, partners, and stakeholders decide whether your business is worth their time based solely on this summary.  

Your executive summary should feature the following:  

• Your hotel’s mission and vision.  
• A unique selling proposition (USP), like a highly sought-after location or special emphasis on technology.  
• Financial metrics and projections to explain why your hotel is the best investment opportunity.  

Company description  

The company description is a crucial selling point for investors and stakeholders. Here, you can explain why investing in your hotel is worth their time and money.   

• Share your concept and operational strategies in detail.  
• Describe the target market and guest experience you will deliver.   
• Explain what superior offerings set your hotel apart from your competitors and place your business at the forefront of the hospitality industry.  

Market analysis  

A business idea is only meaningful with thorough industry knowledge, and the market analysis section of a hotel business plan is your chance to show what you know. Include the following information to convey your understanding of the hotel industry and justify the demand for your hotel.  

Target market segments  

A clear grasp of target market segments tells investors you understand your potential customers and can successfully personalize services, amenities , and marketing campaigns to spur guest satisfaction and loyalty .  

Industry trends  

Analyzing industry trends identifies how your hotel can capitalize on current and emerging opportunities and communicates to investors that you are prepared to lead and evolve.  

Competitor analysis  

A competitor analysis outlines your hotel's strategic positioning, solidifies your competitive advantage, and reassures investors that your business is viable.  

Potential market share  

Determining potential market share helps estimate the market percentage your hotel will likely capture. This projection demonstrates your hotel’s growth potential, which attracts investor interest.  

Marketing strategy  

Similar to market analysis, your marketing strategy proves you understand and are prepared for the competitive nature of the hotel industry. This section should include actionable marketing plans demonstrating your ability to engage and retain customers to maximize bookings and meet revenue goals. A winning marketing plan outlines:   

• Branding details  
• Pricing structures  
• Advertising campaigns  
• Promotions and offers  
• Distribution channels  

Operations plan  

Now that you’ve pitched your hotel idea and proven you have reliable industry knowledge, it’s time to cover the day-to-day details. The operations plan should address everything from hiring staff and managing systems to maintenance protocols and guest service standards, all of which contribute to business efficiency, superior service, and guest enjoyment. This section is essential because it shows you are ready to put your concept into action and recognize that attention to logistical details is necessary for running a properly functioning, highly competitive hotel.  

Customer service strategy  

TrustYou reports that prioritizing quality customer service can boost a hotel's impact score by more than seven points. Since enjoyable guest experiences are indispensable for gaining new customers and convincing existing ones to rebook, it’s essential to highlight your commitment to creating invaluable experiences when meeting with investors.  

In your customer service strategy, provide in-depth plans for achieving and sustaining high levels of guest satisfaction. Explain how staff training will set clear expectations for guest experience standards and how guest feedback will be implemented to improve the team’s ability to foster positive guest communication and interactions.   

Mentioning loyalty programs in this section can also be beneficial, as it underscores your appreciation for guest experiences and the opportunities they provide.  

Technology plan  

While some guests favor in-person hotel interactions, 73 percent prefer a self-service approach . Offering face-to-face and technology-based options shows you understand and respect all guest preferences, making the guest experience as agreeable as possible. This approach also supports guest retention, which appeals to investors.   

What’s more, a technology plan effectively supports staff, management, and the overall operation of your hotel, keeping it competitive in a saturated market and improving viability. In this business plan section, specify how and why your hotel will implement advanced technology.  

• Why are predictive maintenance tools essential to keep your hotel in peak condition?  
• Which property management system (PMS) will you utilize for in-room technology?  
• How will revenue management systems optimize your revenue per available room (RevPAR)?  

Financial plan  

Money matters at every potential investor and stakeholder meeting; a hotel business plan accounts for that. Ensure assumptions are realistic and calculations are clear to build credibility and assess your hotel’s economic feasibility. This information also allows potential investors to evaluate the expected return on investment (ROI) and you to review financial performance against benchmarks.  

The financial plan must include the following financial projections:  

• Startup costs  
• Revenue forecasts  
• Expense estimates  
• Profitability analysis  

Sustainability practices  

With 78 percent of travelers reporting intentions to stay in an environmentally conscious hotel on at least one occasion, it’s essential to consider sustainability practices alongside your financial projections.  

Eco-friendly hotel initiatives express a commitment to environmental responsibility, which appeals to travelers, builds customer loyalty, and supports a positive brand image. Competitive advantage and long-term viability also increase with sustainable practices, as your hotel can secure cost savings by using inventory management systems for waste reduction or offering by-request laundry services for energy efficiency.  

Common planning issues and how to avoid them  

Your business plan is meant to be a long-term resource for your hotel, but certain issues can disrupt its effectiveness. Below are a few common planning issues business owners encounter and how to avoid them.  

1. Underestimating costs  

Many hotel owners have experienced the debilitating impact of poor financial planning. Underestimating costs severely impairs your hotel’s operational sustainability and growth , and closure is inevitable unless immediate adjustments are made.  

Solutions:    

• Consider every expense. When drafting your hotel business plan, consider every expense that needs to be accounted for. Don’t overlook initial setup costs, potential renovations, marketing funds, or high operational costs.  
• Plan for the unexpected. Emergency expenses can negatively impact your hotel’s budget even with a solid financial foundation. Including a generous contingency fund in your financial plans provides security from these unforeseen expenses.   
• Review, and review again. Wise budget use and good choices depend on consistent review. By comparing projections to actual expenses, you can identify and address discrepancies before a crisis occurs.  

2. Ignoring technological advancements  

In 2023, nearly 61 percent of surveyed hotels reported being likely to increase their technology investments over the next three years. As a new or improving hotel, it is essential to prioritize technology funding when drafting your business plan, as being wary of technology will severely limit your hotel’s ability to thrive.  

Solutions:  

• Stay informed. Regularly research the latest technology trends in the hospitality industry to see which technology is being implemented and why. Subscribing to industry publications and attending hospitality tech conferences are clear-cut ways to stay informed and invest in the best technology .  
• Start small. Implementing advanced technology can be intimidating, but you don’t have to dive in head first. Start small and prioritize the guest experience; chatbots or mobile check-ins are great options. When you see positive results and feel comfortable with more extensive changes, you can consider system revamps or smart room technology.  
• Invest in training. Your technology plan should include training strategies. Implementing advanced technology without teaching your team how to interpret results or troubleshoot potential hiccups is a recipe for disaster.  

3. Lack of Market Research  

Sound market research is the foundation for a reliable hotel business plan. However, lacking market research results in misguided strategies, hurts your chances of receiving investments, and puts you miles behind your competitors.  

• Conduct competitor evaluations. Financial institutions, guests, and employees need to be convinced that your hotel is the best choice for their investments, stays, and time. By identifying market gaps, you can capitalize on services and experiences that your competitors are neglecting.  
• Review demographic studies. Understanding guest behaviors and preferences shows you care about the guest experience. With the information gathered from demographic studies, you can improve your marketing strategies and offer personalized experiences to build brand loyalty.  
• Consider trend analyses. Knowing the latest industry trends is key to accommodating guest needs and outperforming competitors. With trend analyses to forecast future guest expectations, new technologies, and market demand fluctuations, your hotel can offer original solutions that attract guests and investors.  

Conclusion  

Drafting a dependable hotel business plan requires time and dedication, just like running a hotel. With your thoroughly researched, expertly crafted plan, you are prepared to take on every hurdle and celebrate every win your hotel experiences.  

For more ideas to support your hotel’s success, check out our tips for boosting hotel sales .  

Devyn Rheuby

Dev is a San Francisco-based content marketer specializing in article and eBook writing for tech and B2B companies. When she’s not working, she tries new coffee shops, reads fiction and fantasy series, and plays The Sims 4.

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Hotel Business Plan

Turn your dreams into reality with a comprehensive hotel business plan. 

Why do I need a hotel business plan?

Studies show that entrepreneurs who finished their business plan were twice as likely to succeed in growing their business than those with no plan. A hotel business plan provides a detailed roadmap of what needs to be accomplished and why and gives potential investors insight into your business idea.  

Included in this business plan are templates for: 

• Company analysis
• Industry analysis 
• Competitive analysis 
• Operations plan 
• Financial plan

From idea to execution: 10 sections to include in your hotel business plan

What is hotel revenue management the beginner’s guide.

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How to Start a Hotel

Advertiser Disclosure

How To Start Your Own Hotel Business

If you’re looking to start a new hotel business, you’ve come to the right place since we’re going to show you exactly how to do it. We’ll start by sharing how to open a hotel step-by-step, then answer some frequently asked questions about running a hospitality industry business and being a successful hotel owner.

Importantly, a critical step in starting a hotel is to complete your hotel’s business plan. To help you out,   you should download Growthink’s Ultimate Hotel Business Plan Template here.

Download our Ultimate Business Hotel Plan Template here

15 Steps to Start a Hotel Business:

• Choose the Name for Your Hotel
• Develop Your Hotel Business Plan
• Choose the Legal Structure for Your Hotel
• Secure Startup Funding for Your Hotel (If Needed)
• Find a Location to Buy or Start Building Your Hotel
• Register Your Hotel with the IRS
• Open a Business Bank Account
• Get a Business Credit Card
• Get the Required Business Licenses and Permits
• Get Business Insurance for Your Hotel
• Buy or Lease the Right Hotel Business Equipment
• Develop Your Hotel Marketing Materials
• Purchase and Setup the Software Needed to Run Your Hotel
• Hire and Train Your Hotel Staff
• Open for Business

1. Choose the Name for Your Hotel

The first step to starting a successful hotel business is to choose your hotel’s name.  

This is a very important choice since your hotel name is your brand and will last for the lifetime of your hotel. Ideally, you choose a name that is meaningful and memorable. Here are some tips for choosing a name for your hotel business:

• Make sure the name is available. Check your desired name against trademark databases and your state’s list of registered business names to see if it’s available. Also check to see if a suitable domain name is available.
• Keep it simple. The best names are usually ones that are easy to remember, pronounce and spell.
• Think about marketing. Come up with a name that reflects the desired hotel identity and/or focus of your hotel.

2. Develop Your Hotel Business Plan

One of the most important steps in how to start a hotel business is to develop a hotel business plan . The process of creating your hotel business plan ensures that you fully understand your market and your business strategy. The plan also provides you with a roadmap to follow and if needed, to present to potential investors for your business.

To enhance your planning process, incorporating insights from a  sample hotel business plan  can be beneficial. This can provide you with a clearer perspective on industry standards and effective strategies, helping to solidify your own business approach.

Your hotel business plan should include the following sections:

• Executive Summary – this section should summarize your entire business plan so readers can quickly understand the key details of your hotel.
• Company Overview – this section tells the reader about the history of your hotel and what type of hotel you operate. For example, are you a boutique hotel, a bed and breakfast, or an inn?
• Industry Analysis – here you will document key information about the hotel industry. Conduct market research and document how big the industry is and what trends are affecting it.
• Customer Analysis – in this section, you will document who your ideal or target customers are and their demographics. For example, what is their income level? What amenities do they look for in a hotel? What do they find important when choosing where to stay?
• Competitive Analysis – here you will document the key direct and indirect competitors you will face and how you will build competitive advantage.
• Product : Determine and document what products/services you will offer. 
• Prices : Document the prices of your products/services.
• Place : Determine where your business will be located and how that location will help you increase sales.
• Promotions : Determine what promotional methods you will use to attract guests to your hotel.
• Operations Plan – here you will determine the key processes you will need to run your day-to-day operations. You will also determine your staffing needs. Finally, in this section of your plan, you will create a projected growth timeline showing the milestones you hope to achieve in the coming years.
• Management Team – this section details the background of your hotel’s management team.
• What startup costs will you incur?
• How will your hotel make money?
• What are your projected sales and expenses for the next five years?
• Do you need to raise funding to launch your hotel?

3. Choose the Legal Structure for Your Hotel

Next you need to choose a legal structure for your hotel and register it and your business name with the Secretary of State in each state where you operate your business.

Below are the five most common legal structures:

1) Sole Proprietorship

A sole proprietorship is a business entity in which the owner of the hotel and the business are the same legal person. The owner of a sole proprietorship is responsible for all debts and obligations of the business. There are no formalities required to establish a sole proprietorship, and it is easy to set up and operate. The main advantage of a sole proprietorship is that it is simple and inexpensive to establish. The main disadvantage is that the owner is liable for all debts and obligations of the business.

2) Partnerships

A partnership is a legal structure that is popular among small businesses. It is an agreement between two or more people who want to start a hotel business together. The partners share in the profits and losses of the business. 

The advantages of a partnership are that it is easy to set up, and the partners share in the profits and losses of the business. The disadvantages of a partnership are that the partners are jointly liable for the debts of the business, and disagreements between partners can be difficult to resolve.

3) Limited Liability Company (LLC)

A limited liability company, or LLC, is a type of business entity that provides limited liability to its owners. This means that the owners of an LLC are not personally responsible for the debts and liabilities of the business. The advantages of an LLC for a hotel business include flexibility in management, pass-through taxation (avoids double taxation as explained below), and limited personal liability. The disadvantages of an LLC include lack of availability in some states and self-employment taxes.

4) C Corporation

A C Corporation is a business entity that is separate from its owners. It has its own tax ID and can have shareholders. The main advantage of a C Corporation for a hotel business is that it offers limited liability to its owners. This means that the owners are not personally responsible for the debts and liabilities of the business. The disadvantage is that C Corporations are subject to double taxation. This means that the corporation pays taxes on its profits, and the shareholders also pay taxes on their dividends.

5) S Corporation

An S Corporation is a type of corporation that provides its owners with limited liability protection and allows them to pass their business income through to their personal income tax returns, thus avoiding double taxation. There are several limitations on S Corporations including the number of shareholders they can have among others.

Once you register your hotel, your state will send you your official “Articles of Incorporation.” You will need this among other documentation when establishing your banking account (see below). We recommend that you consult an attorney in determining which legal structure is best suited for your company.

4. Secure Startup Funding for Your Hotel (If Needed)

In developing your hotel business plan, you might have determined that you need to raise funding to launch your business. Determining whether you want to purchase and renovate or build a new structure will majorly impact when you can open your new hotel and the amount of funding you will need.

If so, the main sources of funding for a hotel to consider are personal savings, family and friends, credit card financing, bank loans, crowdfunding and angel investors. Angel investors are individuals who provide capital to early-stage businesses. Angel investors typically will invest in a hotel that they believe has high potential for growth.

5. Find a Location to Buy or Start Building

Having the right space is important for your hotel and choosing the best location can have a major impact on your business.

To find the right space, consider:

• How many rooms will your hotel have?
• What are the zoning requirements for hotels in your area?
• Is the local market a good match for your target customers?

If you plan to build a new structure for your hotel, you will also need to work with architects to establish a timeline and determine construction costs.

6. Register Your Hotel with the IRS

Next, you need to register your business with the Internal Revenue Service (IRS) which will result in the IRS issuing you an Employer Identification Number (EIN).

Most banks will require you to have an EIN in order to open up an account. In addition, in order to hire employees, you will need an EIN since that is how the IRS tracks your payroll tax payments.

Note that if you are a sole proprietor without employees, you generally do not need to get an EIN. Rather, you would use your social security number (instead of your EIN) as your taxpayer identification number.

7. Open a Business Bank Account

It is important to establish a bank account in your hotel’s name. This process is fairly simple and involves the following steps:

• Identify and contact the bank you want to use
• Gather and present the required documents (generally include your company’s Articles of Incorporation, driver’s license or passport, and proof of address)
• Complete the bank’s application form and provide all relevant information
• Meet with a banker to discuss your business needs and establish a relationship with them

8. Get a Business Credit Card

You should get a business credit card for your hotel to help you separate personal and business expenses.

You can either apply for a business credit card through your bank or apply for one through a credit card company.

When you’re applying for a business credit card, you’ll need to provide some information about your business. This includes the name of your business, the address of your business, and the type of business you’re running. You’ll also need to provide some information about yourself, including your name, Social Security number, and date of birth.

Once you’ve been approved for a business credit card, you’ll be able to use it to make purchases for your hotel. You can also use it to build your credit history which could be very important in securing loans and getting credit lines for your business in the future.

9. Get the Required Business Licenses and Permits

Every state, county and city has different business license and permit requirements.

Nearly all states, counties and/or cities have license requirements for hotel, including:

• Business License :  A general business license is required for all businesses, including hotels. The cost of a business license varies depending on the state, county and/or city in which the hotel is located.
• Occupancy Permit :   An occupancy permit, also called a Certificate of Occupancy, is required before you can open your hotel to the public.
• Alcohol Licenses :  If you plan to serve alcohol at your hotel, you will need to obtain the appropriate license from the state in which your hotel is located.
• Sales Tax License :  You will need to obtain a sales tax license in order to collect sales tax from your customers.
• Food Service License : If you plan to serve food at your hotel, you will need to obtain a food service license.
• Fire Department Approval :  Most hotels are required to have approval from the local fire department before they can open to the public.

Be sure to check local government guidelines to determine which licenses and permits hotels are required to obtain in your area.

10. Get Business Insurance for Your Hotel

The right business insurance is important to protect your new hotel. Business insurance policies that you should consider for your hotel include:

• General Liability Insurance: This insurance protects your hotel business from third-party claims of bodily injury, property damage, and personal injury that occur on your premises or are caused by your business.
• Workers’ Compensation Insurance: If you have employees, you may be required to have workers’ compensation insurance. This insurance protects your employees if they are injured or become ill as a result of their job.
• Property Insurance: This insurance protects your hotel property from loss or damage due to fire, theft, vandalism, and other covered events.

11. Buy or Lease the Right Hotel Business Equipment

Beyond the furniture and equipment you will need in each room, opening a hotel will also require some business equipment, including:

• A reservation system to take bookings
• A property management system (PMS) to manage rooms and rates
• A booking engine if you want to accept online bookings
• Rooms keys and/or access cards
• Reception furniture

12. Develop Your Hotel Business Marketing Materials

Marketing materials will be required to attract and retain customers to your hotel.

The key marketing materials you will need are as follows:

• Website : Likewise, a professional hotel website provides potential customers with information about the services you offer, your company’s history, and contact information. Importantly, remember that the look and feel of your website will affect how customers perceive you.
• Social Media Accounts : establish social media accounts in your company’s name. Accounts on Facebook, Twitter, LinkedIn and/or other social media networks will help customers and others find and interact with your hotel.
• Logo : Spend some time developing a good logo for your hotel. Your logo will be printed on company stationery, business cards, marketing materials and so forth. The right logo can increase customer trust and awareness of your brand.

13. Purchase and Setup the Software Needed to Run Your Hotel

Most hotel businesses need a few types of software to run successfully.

First, you will need a PMS. This is software that helps you manage reservations, check-ins, and other aspects of your operations. Some popular options include Cloudbeds, Oracle Hospitality, and HOTELTIME.

You will also want to have a customer relationship management (CRM) system. This software helps you track interactions with customers, manage customer data, and market to potential guests. Many hotels use programs such as Experience Hotel, Oracle NetSuite, and Salesforce.

Additionally, you need to use accounting software such as Quickbooks or M3 to manage your hotel’s expenses.

Research the software that best suits your needs, purchase it, and set it up.

14. Hire & Train Your Hotel Staff

The quality of your hotel staff can make or break your business. You need to take the time to find, interview, and hire the right people.

Start by writing job descriptions for the positions you need to fill. Then, post the job openings online and in places where potential employees are likely to see them. Once you have a pool of candidates, conduct phone and in-person interviews to narrow down your choices.

Finally, once you have selected the employees you want to hire, provide training on your hotel’s policies and procedures. Additionally, give them a tour of the property and introduce them to other staff members. It helps to build out a strong sales team to prospect new business and nurture customer loyalty.

15. Open for Business

You are now ready to host a grand opening for your hotel. Make sure to include your grand opening event in your marketing plan and promote your hotel launch to the right target audience.

If you follow the steps above, you should be in a great position to build a successful business and know everything you need about how to start a hotel business. Below are answers to frequently asked questions that might further help you.

How to Finish Your Hotel Business Plan in 1 Day!

How to open a hotel faqs, is it hard to start a hotel.

Starting any business has its challenges and opening a hotel does require some planning and preparation. The biggest challenges in owning a hotel are securing funding for your new hotel, finding a great location to buy or build, and setting up systems that help your hotel achieve operational efficiency.

As with starting any business, having a good business idea, doing market research, and getting support from experts in the industry increase your chance of success.

How Can I Own a Hotel With No Experience?

If you have no experience in the hotel industry, you will need to find a good hotel management company. A hotel management company can help you with all aspects of starting and running your hotel. They will also be able to provide you with the necessary training.

What Types of Hotels Are Most Profitable?

There is no one-size-fits-all answer to this question. The type of hotel that is most profitable will depend on the location of your hotel and what is of value to the market in that area. A boutique hotel might be a huge success in a small city, while a family-friendly hotel could make more money when placed near a theme park. It is important to do market research to determine which type of hotel can be a profitable business in your area.

How Much Does It Cost To Start a Hotel?

Again, there is no one-size-fits-all answer to this question. The cost of starting a hotel will depend on a number of factors, such as the location of your hotel, the type of hotel, and the level of service you offer. You will also have different upfront costs depending on whether you are building a new hotel or purchasing an existing structure.

With regards to building costs or buying an existing property, this varies tremendously based on the type of hotel (e.g., budget vs luxury) and hotel size (e.g., 5 rooms vs 500 rooms).

How Does a Hotel Make Money?

A hotel makes money by charging guests for the use of the hotel's facilities. The amount charged will depend on the type of hotel, the location, and the level of service offered. Beyond charging for guest rooms, hotels may also make money from additional amenities, such as in-house restaurants, room service, and high-speed internet access.

Is Owning a Hotel Profitable?

Owning a hotel business can be profitable, but the amount of profit is highly-dependent on a number of factors, such as the location of your hotel. You can improve the profitability of your hotel by offering a higher level of service, attracting more guests, and keeping your expenses low.

How Much Does a Hotel Owner Make?

Hotel owners, operators and executives receive varied pay amounts based on the success of their hotel. According to Glassdoor, the typical Starwood Hotels & Resorts Vice President salary is $244,472, which is 45% above the national average.

What Are the Key Financial Metrics and Costs in the Hotel Market?

The key financial metrics in the hotel market are as follows:

Industry profit is measured as earnings before interest and taxes. Industry profits have averaged 15.5% of sales in recent years.

The industry’s major expenses are purchases and cost of sales, such as bedding and room supplies. Many hotels also provide meals and liquor, either in individual rooms or in separate restaurants or dining areas.

Last year, purchases were estimated to account for 29.9% of an average operator’s revenue.

Labor is required in many aspects of hotel management, from front-of-house activities, such as front desk, concierge and related activities, to all back-of-house activities, including general management, accounting, marketing, room cleaning and servicing the kitchens, bars and restaurants.

Many hotel jobs have a low skill and training requirement, and employees can be hired on a part-time or casual basis. Because of this practice, many hotels have high staff turnover.

Therefore, there is a constant need for recruitment and training, which can be costly. Some hotel owners and operators have outsourced part of their staff services to specialist staff-recruitment agencies to lower recruitment costs.

Last year, industry wages accounted for approximately 25.7% of total industry revenue.

Rent and Utilities

Rent and utilities on average comprise 7.6% of hotel revenue.

Other Expenses

Marketing expenses and royalty fees are another significant cost for those industry participants that operate on a franchise basis. Franchisees typically pay an annual fee of 4.0% to 6.0% of total revenue.

Other major operational expenses include repairs and maintenance, promotional costs, commission paid to agents, bookings and internet fees, accounting and legal costs, motor vehicle expenses, stationery and printing, insurance and other administrative and overhead costs.

Why Do Hotels Fail?

Hotels can fail for a number of reasons, including high expenses and low occupancy rates. Hotels can also fail due when owners misunderstand the market in an area and target the wrong customers or fail to do adequate research into hotel industry trends that impact their business.

Often, hotels begin to struggle due to poor management decisions that negatively impact the guest experience. Closely monitoring your spending and making sure your staff is performing well both go a long way toward making your hotel succeed.

How Big Is the Hotel Industry?

According to IbisWorld, there are 74,372 hotels, and the hotel industry generated $166.5 billion in revenue in the United States alone last year. This represents an annual growth rate of 4.7% over the past 5 years.

Industry profits were $26.0 billion, and wages paid to hotel employees totaled $42.7 billion.

What Are the Key Segments of the Hotel Market?

 A hotel is an establishment that provides lodging and, often times, meals and other services for travelers and other paying guests. A motel, on the other hand, provides lodging for motorists in rooms usually having direct access to an open parking area.

A particular hotel or motel can be classified by a number of characteristics, including whether it provides full or limited service, whether or not it is located in a metropolitan area, the state or region in which it is located, its price or rate level, the number of rooms, and whether it is independent or part of a chain operation.

Hotels and motels can also be segmented by room price rates. The establishments with room rates in the highest 30 percentile that are located in local or metropolitan markets are classified as upscale or luxury. The middle 30 percentile is classified as mid-priced, and the lowest 40 percentile as either economy or budget.

Overall, sales from hotels account for 87.4% of industry revenue and 82.0% of industry employment, though they account for only 44.0% of industry establishments.

Hotels that consist of 25 or more rooms provide 83.6% of industry revenue (with 62.7% of industry revenue coming from guest room rentals, 12.5% coming from food and alcohol sales, 4.2% coming from conference and meeting rooms and 4.2% coming from other charges), while hotels that offer fewer than 25 rooms only constitute 3.8% of industry revenue.

Motels provide about 12.6% of industry revenue. The relative proportion of revenue from each of these segments has been relatively stable over the past five years, although motels experienced some growth at the expense of higher-priced hotels during the recession.

What External Factors Affect the Hotel Market?

A number of factors affect the performance of the hotel industry. These drivers include:

• Domestic Trips By US Residents : Trends in domestic travel, especially for business travellers, and the total nights spent away from home directly affect demand for accommodation. As the number of trips made by US citizens rises, demand for hotels and motels to house them increases.
• Consumer Confidence Index : Changes in consumer confidence influence decisions that individuals make concerning expenditure on entertainment and traveling, particularly during a recession.
• Consumer Spending : Consumer spending levels have a direct effect on travel demand. When consumers are spending more overall, they are more likely to spend some of their money on travel and accommodations.
• Inbound Trips By Non-US Residents : Trends in international visitor arrivals and their lengths of stay influence demand for accommodation. A rise in inbound trips positively affects demand for hotels and motels.

Who Are the Key Competitors in the Hotel Market?

 As specified above, there are 74,372 hotels in the United States.

The market leaders (in terms of market share) include Hilton Worldwide Holdings Inc. (13.7%), Marriott

International Inc. (13.5%) and InterContinental Hotels Group PLC (7.5%).

The rest of the market is comprised of many smaller players.

Who Stays in Hotels?

Recent demographics show that totel guests are comprised of: 

• Domestic leisure travelers: 48.5%
• Business travelers: 24.0%
• International leisure travelers: 14.0%
• Meetings, events and incentive travelers: 13.5%

What Are the Keys to Launching a Successful Hotel?

Starting a hotel requires careful choice of a location and strategy, a business plan, access to considerable financial resources, and a customer service mindset.

1) Location and Opportunity

The location for your hotel is highly linked with the opportunity that you feel there is for your hotel. In the right location, where competitors are not fulfilling all customer needs, a hotel can thrive. However, in a beautiful neighborhood that happens to have heavy competition from existing hotels, success may not be so forthcoming. Likewise, if the neighborhood leaves too much to be desired, you may not be able to price the rooms low enough to encourage travelers to stay at your hotel, even if you are within walking distance of key attractions.

2) Strategy

The next step is to know how customers will answer the question “why my hotel?” How will you tailor your services to the customers you want to attract, whether they are families with kids, couples on romantic vacations, businesspeople, or international tourists? Consider the combination of amenities, atmosphere, location, and services that will be right for your customers. Always keep in mind that strategy means making tradeoffs – it is almost impossible to be everything to everyone and succeed. You might have to forgo a certain customer target market in order to make your service offering perfect for your most desired customers.

3) Planning

A hotel business plan is necessary not only for you to think through how you will take on the opportunity, but for you to convince any investor or lender that you have the ability to do so. No savvy investor will be attracted by a lack of planning. There is no excuse to not create a plan with the wealth of information available on writing business plans and even business plan templates tailored to the hotel business sector.

4) Fundraising

Whether you buy an existing hotel, build one from scratch, or renovate a building into a hotel, you will need millions of dollars to invest. Assuming you do not have this money, you will need to seek bank loans and/or angel investment in your hotel. As you will be working with considerable assets, dependable and experienced legal and accounting help is a must as you create deals with investors.

5) Hospitality Mindset

Finally, you must have an ingrained sense of how you want your guests to be treated so that you can instill this mindset in your top management and they can, in turn, teach this to the staff. Staying at a hotel can be stressful and uncomfortable, and guests demand the highest attention to their needs or they will have no problem complaining loudly and publicly. If employees sense you have higher motives than customer satisfaction, customer service may fall by the wayside and your hotel business may fail or never take off in the first place.

The first step to starting a hotel is to develop your hotel business plan . Growthink provides products and services to help you develop a professional business plan and turn your dream into reality.

Where Can I Download a Hotel Business Plan PDF?

You can download our hotel business plan PDF template here. This is a business plan template you can use in PDF format.

Additional Resources in the Hotel Market

For additional information on the hotel market, consider these industry resources:

• American Hotel & Lodging Association: ahla.com
• Hospitality Net: hospitalitynet.org
• Hotel Mavericks: www.hotelmavericks.com

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.

Click here to see how Growthink’s professional business plan consultants can create your business plan for you.

Other Helpful Business Plan Articles & Templates

Hotel Business Plan: How to Write a Business Plan For Your Hotel

Opening a hotel requires careful planning and a strategic roadmap for success.

A hotel business plan is your key to mapping out every essential detail of your venture, from its vision and target audience to financial projections and marketing strategies.

In this helpful post, we’ll look at how you can create a robust business plan specifically tailored to the hospitality industry.

Discover why a well-crafted plan is crucial, what elements it should encompass, and step-by-step insights on how to initiate the process effectively.

Whether you’re starting a new hotel or revitalizing an existing one, a solid business plan will be your cornerstone for achieving profitability and excellence in the competitive world of hospitality.

If you’re ready to get started, we put together a hotel business plan template that you can use.

What is a Hotel Business Plan?

A hotel business plan is an official document that serves as an in-depth guide for a hotel venture, encompassing aspects such as its objectives and intended audience, along with the offerings in terms of products and services, marketing tactics, and financial forecasts.

These business plans are vital instruments for initiating a new hotel enterprise , as they lend credence and furnish a framework for attaining long-term profitability and triumph.

Crafting a business plan enables you to ensure a thorough grasp of the necessary steps to fulfill your ambitions and the pathway to making your hotel endeavor prosperous.

In this post, we’ll explore the significance of writing a robust plan, the essentials that should be incorporated into it, and the approach to commence crafting your business plan with simplicity.

Do You Need a Hotel Business Plan?

Starting a hotel business requires a lot of strategy and planning.

The necessity of a business plan in this context is undebatable.

There are a number reason why you would want a hotel business plan before getting started.

A well-structured business plan can aid you in various ways:

• Determine if you truly wish to pursue your business concept.
• Learn the essentials for advancing your hotel enterprise.
• Convince potential business partners to collaborate with you.
• Build self-assurance and validate the viability of your business idea.
• Gain greater command over your enterprise and focus on the key ingredients for success.
• Assess your progress and whether you are meeting your goals at various stages.

Above all, a business plan enhances your decision-making ability as your business expands.

Studies indicate that possessing a business plan can accelerate business growth by 30% and safeguard against business collapse.

Starting Your Hotel Business Plan

The key takeaway is to start without delay.

You might even begin by noting down points as you learn about the four crucial components of a hotel business plan:

Executive Summary and Overview

Though it appears at the beginning, the executive summary and overview are often easier to compose after you’ve gone through the planning process.

This segment is concise, usually spanning only a page or two. It often garners the most attention, so it deserves your focus.

Be direct and clear, outlining:

• Your Vision: What’s your grand vision for your hotel?
• Your Mission: This should succinctly describe why your hotel exists today – who are your guests and how do you meet their expectations?
• Your Goals: Set out your primary business objectives and timelines. Make them tangible, like achieving a 90% occupancy rate and a 25% increase in website leads within two years.

Here, you also have the chance to showcase your hotel brand identity – the colors, logo, font, and design that embody your business ethos.

Remember, this segment is pivotal to your plan. After writing it, ask yourself:

• Does it reflect your passion and excitement?
• Is it compelling and engaging?

If not, invest more effort. Your aim is to encapsulate your vision and create a guiding tool for all future decisions, both major and minor.

Hotel Services and Amenities

Starting a a hotel business demands a comprehensive understanding of the industry, market, and competitors.

To differentiate your hotel from others, it’s crucial to have a clear grasp of these elements.

• Industry Analysis: Your hotel is a part of the wider hospitality and tourism sectors. Investigate current hotel trends and issues impacting these industries. Consider the effects of technology, economy, politics, environmental concerns, and global health issues, especially on hotels similar to yours. Identify any potential red flags.
• Competitor Analysis: Identify your competitors, focusing primarily on those in your locality. Analyze what they are doing effectively and areas where they lack.
• Understanding Your Target Guests: Define your ideal guests. Are they families seeking a getaway, or couples looking for a cozy retreat? Include detailed demographics, lifestyle, and purchasing habits.
• Unique Selling Point (USP): What sets your hotel apart from competitors? Why would guests choose your hotel over others? This could be a distinct feature or service that makes your accommodation stand out.

You’ll also want to detail the specific services and amenities your hotel will offer, such as:

• Location and corresponding amenities (e.g., a pool in a tropical location).
• Guests’ dietary needs and preferences.
• Sustainability practices.
• Guests’ budget considerations and policies like cancellation and refunds.
• Social media engagement strategies.
• Unique physical features of your hotel, like a potential conference venue.

Starting a hotel requires deep dives into industry trends, competitor strengths/weaknesses, and your target audience’s desires.

Be sure to worn on creating a unique selling point, define your service offerings, and consider details like location, guest needs, budget, and social media presence to truly stand out in the market.

Business Operations, Management, and Marketing

Hotel Operations: Detail the operational aspects, including key tasks, potential outsourcing needs, staff employment, training requirements, and the creation of policies and manuals.

Hotel Marketing: Develop a hotel marketing strategy targeting the right audience with an appropriate message. Consider various channels like traditional and digital advertising, loyalty programs, hotel content marketing , social media , email marketing, online reviews, and hotel SEO . Analyze competitors’ strategies and incorporate digital marketing for efficiency.

Hotel Distribution: Outline your room distribution strategy, whether through your website, third-party platforms, or travel agents. Consider operational and financial aspects, and think about using a channel manager to avoid issues like double bookings.

Hotel Revenue and Pricing: Focus on profitability by setting appropriate room prices, offers, discounts, and payment options. Address rate parity, cancellation, and refund policies.

By addressing these areas comprehensively, your business plan will form a solid foundation for your hotel’s success.

Writing the Financial Business Plan For Your Hotel

In this section, you’ll need to cover the financial specifics crucial for your hotel’s establishment and profitability, including the initial capital investment, ongoing operational costs, and anticipated return on investment (ROI).

Areas to address in your financial business plan:

• The structure of your business (Will it be a partnership, a company, or another form?)
• The business model you intend to follow.
• Detailed breakdown of start-up and recurrent expenses and budget planning.
• Bookkeeping, accounting, and tax management strategies.
• Essential insurance coverage and permits required.
• Key suppliers and partnerships that are vital for your business.

Given the complexity of these aspects, it’s a good idea to consult a professional while crafting this section of your business plan.

Next Steps for Your Hotel Business Plan

Remember, converting your business aspirations into reality starts with documenting them in a business plan.

If the process seems daunting, tackle it one section at a time, beginning with what you find easiest.

Once your hotel business plan is fleshed out, use it to:

• Enumerate specific goals and tasks essential for launching your idea.
• Prioritize actions and set definitive deadlines.
• Identify and engage individuals responsible for various aspects of your plan.

Be aware that as your business concept evolves or grows, modifications to your business plan might be necessary.

Regularly reviewing your business plan, perhaps every six months or annually, is beneficial. This allows you to evaluate your progress and reassess your goals: are they still relevant, or do they need to be adjusted?

As you develop and implement your plan, don’t overlook the impact of hotel technology. It can revolutionize your business, simplify daily operations, and enhance revenue.

About the author

Alexander has been working with business in the travel and tourism industries since 2012. With over a decade of experience, Alexander and Wizard of Tourism strive to help those in the travel industry grow their business online.

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Frequently Asked Questions

Below are answers to your most frequently asked questions:.

Immediately upon purchasing Growthink’s Ultimate Hotel Business Plan Template, you will be taken to our Member’s Area where you can instantly download our template and begin working on your business plan.

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You can create an unlimited number of business plans with Growthink’s Ultimate Hotel Business Plan Template. Once you purchase it, you have lifetime access to use it for any business in which you’re involved, now or in the future.

Yes, Growthink’s Ultimate Hotel Business Plan Template works flawlessly on both PCs and Macs.

Growthink’s Ultimate Hotel Business Plan Template is designed for both established Hotels and startups.

Yes , you can! Anyone can easily follow our basic instructions and create a great business plan quickly and easily. Plus, my expert team is available to help you if you have any questions.

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Easy Step by Step Guide to Writing a Hotel Business Plan

July 20, 2022

Adam Hoeksema

If you’re thinking of starting your own hotel business, hopefully, you’ve already got some experience in the industry and you have at least a loose plan forming around where and when you want to do it. 

There are loads of perks to running your own hotel business, but there’s also a lot of work and plenty to consider, especially at the early stages. One of the earliest steps in a hotel business model is writing up the business plan. 

For this, you’ll need to conduct detailed research, gather accurate data, and form precise predictions. This hotel business plan will be the framework for your company to grow into a successful enterprise. In this article, we’re going to go over the general steps required to form a business plan for a hotel, from conception to gathering your clientele, 

The whole process begins with an understanding of what it means to run your own business in the hotel industry.

Considerations of the Hotel Business Model

Before embarking on any business venture, it’s important to know the whys and why-nots. Without thoroughly weighing the pros and cons against one another you’re likely to be taken by surprise somewhere down the line when your romantic notion turns out to be harder or more boring than you expected. 

Before you get to work on your hotel business plan, consider the following reasons you might want to open a hotel of your own:

• Starting any new company will come with the perks of running things the way you want to, and a hotel business is no different. There are plenty of drawbacks to being self-employed, too, and we’ll go over those in the next section but a lot of the motivations for being your own boss are in the freedom to make decisions and the creative liberty you’ll have over the direction of the company as a whole. 
• You’ll also likely be able to work on your own schedule for the most part, and not be tied down to office hours and the daily commute. 
• Another obvious perk of opening a hotel is the money. While the average profitability of hotels might seem low, the industry has the potential to create billionaires , so there is a large range of opportunities there in terms of money-making if you’re good enough. 
• The hotel industry is the service industry, and if you’re a fan of making people feel welcome and comfortable, you should get a lot of value out of running a hotel. Hospitality is an opportunity to create a nice experience for customers, and with a hotel, you can sleep comfortably in the knowledge that you’ve spread positivity.
• It’s also not a particularly complicated job to get your head around. While there are a number of moving parts, if you’re thinking of starting a hotel business, you’ve likely got extensive experience in the industry already, so starting small and simple shouldn’t be much of a challenge.
• Hotels are relatively immune to market fluctuations, too, and aside from the recent covid intervention, they tend to survive crashes where other businesses fail. The hospitality industry as a whole is bouncing back well.

Before you jump in though, it’s a good idea to get a reality check on some of the drawbacks of opening a hotel.

• Starting with the hassles that come to any business owner, running a hotel means that you’re the one who will ultimately be responsible if things go south. Creative freedom is one thing, but you’re also going to have to take full charge of the venture and make sure it’s running as intended. 
• This can sometimes feel overwhelming, and if there’s too much to do, you’re likely to be unable to take breaks or risk leaving it up to management to handle, especially early on. Running a business of any kind takes strong leadership and you’ll need to set examples and spread the message of your business direction clearly and effectively to make sure everyone’s on board. 
• You might also be limited by the whims of the shareholders. If you have taken on significant investment to start the business, you won’t be the sole director of the company. This means that you’ll maybe have to sacrifice some of your dreams to please those whose money is invested in it.  Starting an Airbnb has lower startups costs than a full service hotel.
• On that note, your salary will have to come from what’s left when everything is paid off. If your business isn’t profitable, you’ll still have to pay your staff and cover the bills; it’s your salary that will need to suffer. 

Once these considerations have been taken into account, if you are confident that you want to proceed, it’s time to start forming your hotel business. 

Before Writing a Business Plan for a Hotel

For your hotel business plan, it’s better if you’ve at least got an idea of how you’re going to set up and source the necessities for your company before you start. There are some things you’ll need to know before getting started, and these will play a role in your financial projections and marketing strategies later on. 

• Funding – Starting a company costs money and doesn’t usually make a return for the first few years. This means you’re going to have to cover the running costs from elsewhere. This is the first and most basic rule of entrepreneurship. Finding the building, covering the staff and utility costs, ad campaigns, insurance, and rent are just some of the costs you’ll have to calculate in order to source the correct funding. 

From here, identify the type of funding you need, whether that’s going to be angel investment or venture capital, or even bootstrapping using profits from your other ventures, you’ll need to establish how much equity you need to exchange and where all the money will be going. 

• Equipment – Furniture, meeting room equipment, computers for the main desk, barkeeping equipment, and any entertainment systems and fire extinguishers for the rooms and the lobby all need to be listed and accounted for. 
• Licenses – Subscriptions for cable, insurance, and licensing of various kinds come as part of the package when opening a hotel, so make sure you’re legal and legitimate. Health and Safety, including fire safety specs, need to be met throughout the building. You’ll need to make sure you’re covered for customer damage, and that your customers and staff are safe.

Different locations will have different licensing laws, so make sure you’re compliant in your area. 

• Staff – These are the people who will be interacting directly with your customers, so pick wisely. They’re the lifeblood of the hotel industry, and you’ll need a lot of them. A strong cleaning crew, a welcoming reception, competent kitchen staff, and management teams are some of the main roles that need to be filled well, so make sure you know how to go about this. 
• Marketing Strategies – How will you be reaching your customers? This section is expanded upon below, but you’ll need to have a plan for where to advertise and how, how much it’ll cost, and what sort of promotions you’ll be running to get your first hotel customers in the door.

Hotel Business Plan

For your hotel business plan, you’re going to need to establish your business model. Simply setting up or buying a building and expecting it to fill itself probably isn’t going to work, and you’ll need to do your market research to establish exactly whom you will be serving, and how to attract them. 

Here are the initial seven stages for setting up your hotel business plan, and the essential pages it will contain:

1. Executive Summary

Although this is the first page of the hotel business plan as a document, it’ll typically be filled in last, as a way of summarizing the subsequent categories of the plan itself. This is by far the easiest stage of the plan to complete! 

2. Company Description

This is a product of your extensive market research and involves a thorough understanding of who you are and what you’re about. If this stage seems difficult to complete, it’s a good sign that you’re not ready to start, and you need to do more reflecting on the specifics of your dream. Begin the company description with a pitch, as this will be one of the first things a prospective investor sees. Use this section to communicate your excitement and passion for the company. 

3. Products and Services 

Here’s where you’ll lay out the range of services you’ll be offering. Suites, singles, doubles, twins, and everything in-between need to be itemized and set along with their rates across the different seasons. You can show your awareness of the competition in this stage too, by referring to their rates in comparison to yours. If you’ll be selling any products as well, this is the section to list and describe them.

4. Market Research

This section will need to cover an accurate depiction of your market data. It needs to be detailed and complete and should lay out all the specifics of your ideal customers. The market research you’ve done should show you exactly what your customers’ pain points are and how and where you’ll find them to solve their problems. A weak or poorly-researched market data section will be an immediate turn-off for potential investors and demonstrate that you’re unqualified as a partner. 

5. Business Strategy

Once you know who your customers are, the logical progression is to explain how you’re going to reach them. This section should list your sales and marketing strategies, demonstrating a thorough grip on the sales funnel and customer journey from their perspective. Make sure the path to conversions is clear in this section. 

You don’t need to list every employee in the company, but a demonstration of your management team, possibly with their photos included, and a short blurb identifying their experience and contribution to your company is very useful. It’s important not to go overboard on the descriptions and let their talent speak for itself. Focus primarily on the aspects of each member of the team that contribute to the direction of your company. 

7. Financial Documents

Your hotel business plan is nothing without precise financial documents. These are likely to be the first part of the entire hotel business model that investors will scrutinize. That means they need to be accurate projections, based on real financial reports that don’t paint an unrealistically optimistic picture of your financial future. Financial papers are essentially a test of how objective and honest you are about your chances, and investors will pay close attention to them for this purpose. 

It can be useful to get help with these. For specialized, professional templates specifically designed for hotels, take a look at our hotel financial model , boutique hotel and Airbnb financial templates here at ProjectionHub. These templates cover five years and are entirely customizable to your needs. They also come with free support, should you need advice on how to work with them.

Once you’ve got all your paperwork and research in order, you’ll be ready to welcome your first customers. Of course, you should have a plan for this already, and we’ve got some ideas to help you along with that below.

Sourcing Customers

Your market research should strongly indicate which path you want to follow when it comes to finding your customers. There are several approaches to this, and a strong customer acquisition plan that makes use of strengths from multiple strategies is fundamental to the overall hotel business model. 

Here are the main ways to bring people into your new hotel business, many of which apply to businesses of any size and scale:

• Offer discounts – discounts on rooms are a fast way to draw people in and get them familiar with your service. Loyalty programs and rewards for return customers can also be woven into this strategy, helping promote repeat customers. Your main goal for attracting customers should always be to have them return and to bring people with them or refer them directly. 
• Be present online – Have a social media page that presents your promotions in places where you’ve established your ideal customers will be looking. Comment on industry-related topics and establish yourself as a voice of authority. Share information and take part in customer education, so that you become trusted by your clientele before they even set foot in your hotel. 
• Have a website – Your social media should lead people to your website, which will provide booking options and a wider range of information on the services you offer. Provide a menu, room rates, and easy access to the information your customers want to know and make sure the booking process is effortless.
• Have a landing page – One way to boost bookings is to have a landing page on the website. This should present the promotional offers, and maybe have a video or high-quality photos presenting the value of your service in a visually appealing way to draw people in. 
• Advertise – From your market research, it should be possible to target tasteful ads and spread your presence around your market. People need to know you exist, and how to reach you, so the exact way to advertise will depend on whom you’re trying to reach, but common cheap forms are Google Ads and flyers. 

Intelligently targeting is the key here. For a good return on ad spend, it’s important not to just throw your message around at random hoping to reach someone. Put the groundwork in to identify your customers and reach them where they spend their time. 

• Work with other hotels – Your market may be quite different from neighboring hotels, meaning you can work together to hand off bad-fit customers to one another should they be suitable. For example, if your hotel is cheaper than the one nearby, they might send people your way when they decide they can’t afford a room there, and vice versa. This collaboration can form a mutually-beneficial relationship that makes use of both companies’ marketing efforts.  

Keeping up the high service will lead to customers returning regularly, so always think of the long run when you’re reaching out to people. The specifics of this guide will vary, depending on your specific business model and the scale of your project, as well as the location and the market you’re approaching, but most of these points are generally applicable under any circumstances. 

Running a hotel can be a profitable and satisfying endeavor, but it does come with a lot to consider. A hotel business model involves a huge amount of research both inside and outside of the company, and putting all of this into a detailed business plan is the only way you’re likely to get financial support from investors, should you need it. 

But there’s more to a hotel business plan than simply looking for investment; it’s a cross-section of the entire company, and the process of forming one involves learning and understanding your project in new ways. For this reason, it’s a useful exercise in building the company, and with this guide, hopefully, you’re one step closer to achieving that. 

About the Author

Adam is the Co-founder of ProjectionHub which helps entrepreneurs create financial projections for potential investors, lenders and internal business planning. Since 2012, over 50,000 entrepreneurs from around the world have used ProjectionHub to help create financial projections.

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A developed hotel business plan showcases the feasibility of the venture, entices potential investors and lenders. It acts as a roadmap for the hotels' management team during its growth and operational phases.

What is a Hotel Business Plan?

A hotel business plan is a document that outlines the strategies, goals, and operational specifics for initiating or expanding a hotel or hospitality enterprise.

It functions as a guide for the business, aiding in securing funding, attracting investors, and overseeing the progress and administration of the hotel.

What Is the Purpose of a Business Plan for a Hotel?

The primary purposes of a hotel business plan are:

Fundamentally, a good small hotel business plan is necessary to get funds, run the business, draw investors, handle risks, and gauge success in the hospitality industry .

How to Write a Business Plan for a Hotel

Generally speaking, a hotel is an institution that offers its services and facilities within the framework of commercial hospitality.

Developing a hotel business plan is a step towards launching a prosperous hotel venture. A well-thought-out plan acts as a roadmap for your hotel's journey through developmental stages and operational phases. Here are some crucial factors to consider when starting a hotel business plan:

Executive Summary

Start by writing a short summary that describes your business idea, its unique selling point, its target market, and its main goals. This part should interest possible investors and other stakeholders.

Provide a compelling summary of the business concept, target market, location, facilities, services offered, management team experience, funding requirements, and projected financial highlights. Keep it clear and engaging.

Market Analysis

A thorough study of the industry, competition, target market, and potential demand.

Conduct research on the local and regional hospitality market, industry trends, growth projections, and opportunities. Analyze target market segments, demographics, and consumer preferences. Identify and evaluate direct and indirect competitors, strengths, weaknesses, and market positioning. Assess potential demand based on market data and consumer behavior.

Location and Facilities

This outline covers all the bases: accommodations, dining options, event spaces, and recreational amenities.

Include information regarding the rooms, their sizes, amenities, dining options (restaurants, bars, catering), event/meeting spaces, recreational facilities (spa, fitness center, pool), and any additional services or packages that may be offered.

Management and Operations

Hotel management business plan details on the organizational structure, staffing, daily operations, and systems.

Explain the organization's structure, key roles and responsibilities, staffing needs, hiring methods, daily duties (such as front desk, housekeeping, maintenance, and guest services), systems and processes (such as reservations, inventory, and revenue management), how staff will be trained and developed, and how the business will make sure it follows all laws and licenses. Last but not least, describe the organization's structure.

• Marketing and Sales

An all-inclusive strategy for marketing and selling the hotel's amenities and services.

Make a marketing plan that includes branding, social media, ads, and events. Find customer profiles and target groups. Outline a pricing strategy based on competition and positioning. Describe distribution channels such as OTAs, direct bookings, and partnerships. Explain sales strategies, including direct sales, corporate accounts, and social media. Finally, discuss customer loyalty programs.

Financial Projections

Financial statements and detailed projections of startup costs, operational expenses, revenue, and more.

Create estimated statements such as profit and loss statements, balance sheets, and cash flow statements. Provide explanations for the underlying assumptions and reasoning behind these projections, conduct sensitivity analyzes to assess the impacts of scenarios, and outline the breakdown of startup expenditures, including property costs, renovation expenses, furniture purchases, and pre-launch investments. Additionally, outline costs like employee salaries, utility bills, advertising expenses, and administrative overheads, alongside forecasting revenue sources such as occupancy rates, average daily earnings, per room bookings, and supplementary income streams.

Funding Requirements and Use of Funds

The amount of capital needed and planned sources of financing.

Calculate the funding for the hotel startup business plan as well as day-to-day operations. Give specifics about the funding sources (equity investments, loans, etc.), the conditions of each, the effective use of the funds, the ROI, and the exit strategies for the investors.

Risk Assessment and Mitigation

Identification of potential risks and strategies to address them.

Find possible risks (like economic downturns, natural disasters, changes in regulations, and competition), figure out how likely each one is to happen and what kind of effect it will have, make backup plans and ways to reduce those risks, and talk about risk management practices (like insurance and emergency preparations).

Implementation Timeline

A detailed roadmap for executing the various phases of the hotel launch.

Set important dates and milestones for the development and launch phases, such as site acquisition, construction, licensing, staffing, and marketing. Assign roles and duties, look for potential problems or dependencies, and set checkpoints to see how things are going and make changes.

Throughout the business plan for the hotel, include relevant supporting materials, such as market research data, competitive analyses, financial projections, and any relevant contracts or agreements. Tailor the plan to your specific resort concept, target market, and local conditions, and seek feedback from industry experts or advisors to ensure a comprehensive and compelling plan.

Hotel Business Planning: The Financial Side and Competent Managerial Organization

Quite often, a single person or a family could be the owner of a hotel. However, it is increasingly an incorporated firm or a private company that uses the advantages of limited liability.

There is not much room for impromptu speech ideas there. However small, a hotel always depends on one individual, either the manager or owner, and on loan securely available rather than on the availability of external finance.

Commonly, small hotels provide three types of financing:

• From personal savings;
• From retained profits and the realization of other assets;
• From bank loans and overdrafts as the main external sources.

This applies to long-ranged expenditure and short-term requirements, as well. Although a hotel business plan for much longer-term finance traditionally comprises the financial involvement of private sources and businesses that are ready to lend. Therefore, small hotels usually have a low proportion of loan capital, whereas the capital, which is contributed by private individuals, is comparatively high.

There exist four main sources, upon which the owner's income mainly bases itself:

• Annual profits;
• The appreciation of buildings and land;
• Income in kind (which often makes a significant part of total income);
• Return on investment as well as the additional payments that the owners derive as a reward for managing the hotel.

Sure thing, the small size of the hotel dictates its staffing specifics. Normally, the owner in such hotels combines the functions of operational management and ownership in one person.

Many horror book reviews name a hotel owner, one of the most popular characters for horror novels; authors often describe owners as small, weary, and unquiet people, who, after death, acquire a rather vicious habit of molesting their guests with ghostly howls. Well, the reality is not that dreadful; however, small hotel owners keep themselves quite busy, solely realizing a hotel business plan and being responsible for the organization, planning, staffing, financing, control, and direction at the same time.

Again, if in a small hotel the division of work is smartly organized, then the owner will never need to speech ideas off the reel but instead will get the possibility to supervise all employees directly. For example, establishing an office as the nerve center of the hotel and assigning tasks to them dealing with suppliers' invoices, wages, and other clerical tasks, such as management of guests' accounts, may relieve the owner from some weight in her shoulders.

What is more, it is advisable to create a hotel business plan that makes interchangeable as many employees as possible; thus, a receptionist could assist the dining room and the bar. A waitress may pay attention to the servicing of guest rooms apart from serving food and drinks in the dining room; a porter could also serve drinks on the bar and in the lounge, helping guests with their luggage and cars.

Anyway, the staff is not permitted to have any side work—say, provide their children with English homework help online , while even partial idleness could spoil the entire working atmosphere. On the other hand, if the owner is trying to imitate a big hotel by organizing an expanded departmental structure, he or she can leave the small hotel without particular advantages, which it usually benefits from.

Skills Needed to Plan a Hotel Business

Planning hotel business requires a diverse set of skills and expertise. Here are some key skills needed to effectively plan a hotel business:

• Market Research and Analysis

In order to learn about the local hospitality market, trends, demographics, and competition, you need to be a good researcher. You can not build your plan or make strategic decisions without this data.

• Financial Acumen

Financial literacy is crucial for developing accurate financial projections, including startup costs, operating expenses, revenue forecasts, and cash flow statements. Understanding financial statements, budgeting, and investment analysis is vital to opening the hotel.

• Operations Management

Expertise in operations management is necessary to plan and run the day-to-day operations of a hotel, including front desk operations, housekeeping, maintenance, and guest services. Understanding efficient processes, staffing requirements, and systems integration is key.

You need strong sales and marketing skills to promote your hotel effectively, increase brand awareness, and increase bookings. Advertising, social media marketing, pricing strategies, and customer relationship management are all part of this.

• Hospitality Industry Knowledge

In the hotel business, it is important to keep up with the latest trends, best practices, and government rules. Hotel owners need to know what their customers want, what the standards are for service in their field, and what problems their business has to deal with.

• Project Management

The planning of a hotel business involves tasks and milestones such as site selection, construction or refurbishment work obtaining licenses, hiring staff members and marketing efforts. Strong project management skills are essential to coordinating these activities while ensuring completion.

• Leadership and Team Management

For a small hotel business to succeed, it's essential to put together and run a good management team. Strong leadership skills, including the ability to motivate and develop staff, foster a positive company culture, and make strategic decisions, are essential.

• Risk Management

To keep your hotel business from being too affected by things like economic downturns or changes to regulations, you need to be able to spot risks and make backup plans.

• Strategic Planning

Developing a plan requires a keen sense of strategy, including establishing precise objectives, formulating practical tactics, and efficiently allocating resources to achieve long-term goals.

• Adaptability and Continuous Learning

Adapting to changes and continually learning are essential in the evolving hospitality sector, where trends and customer preferences can change quickly. Remaining flexible and open to learning is key to staying competitive and making necessary adjustments

While it may be difficult for one person to possess all these skills, forming a team with strengths or seeking advice from industry experts can ensure a rounded and resilient hotel business strategy.

Hotel Business Plan Writing Help

Crafting a thorough and captivating boutique hotel business plan can pose challenges, especially if you lack the knowledge or resources. This is where Studybay comes in as an ally, providing writing support customized to meet your specific requirements.

When it comes to getting funding, attracting investors, and guiding your hospitality venture towards success, a solid business plan is essential. Here at Studybay, we understand this. Market research, financial projections, operational tactics, and risk mitigation strategies are just a few of the important areas that our team of writers and experts in the field can help you address.

Benefits of Choosing Us for Hotel Business Plan Writing

By teaming up with Studybay for your writing requirements, you can utilize our knowledge and tools to craft a captivating document that propels your hospitality business towards success. Contact us today to discuss your requirements and begin the process of making your hospitality vision a reality.

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Top 10 Things To Do In Samara, Russia

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Samara is a large city in Russia and it lies along the Volga River. There are plenty of things to do in this beautiful city. It has buildings with amazing architecture, monuments full of history, the largest square from Europe, and good weather. There are a lot of quiet places as well, or if you feel like you want to party, there are a lot of bars where you can dance until morning. Here’s a list of the best things to do while you’re visiting Samara:

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1. Enjoy a day at Samara Embankment

The embankment is a great public space along the Volga River. This is one of the most beautiful places in Samara and it’s the best way to make a sunny day unforgettable. You can do some exercise over there, lay on a sandy beach and catch a tan, jog, or take a boat cruise on the Volga. Many different kinds of food and drinks all over, so you can enjoy a coffee on the beach.

Samara Embankment Address : Maksima Gorkogo St., Samara, Russia Website : Samara Embankment (in Russian)

2. Let yourself feel overwhelmed by Volga's Gates and Zhiguli mountains view

This is a stunning panorama of Zhiguli Gate where the Volga River runs between two mountains. If you’re looking for a romantic date, this is the perfect place to watch the sunset with someone you love. It’s a little far from the city. You can get there by taking the bus, which drives you exactly from the station to the place. It’s quite a small place and sometimes might be crowded, but the view is overwhelming.

Volga's Gates and Zhiguli mountains view Address : Region Upravlencheskij Gorodok | region Upravlencheskij Gorodok, Samara, Russia Website : Volga’s Gates and Zhiguli mountains (in Russian)

3. Visit Stalin's Bunker

Stalin’s Bunker is a very particular construction that was secretly built in a very short period of time during the second world war. This is a place that takes you back in time. Stalin’s Bunker is an interesting place to visit, but quite hard to get into, but the struggle is worth it. You will learn a lot from the guide and there would probably be someone there to translate everything in English.

Stalin's Bunker Address : Frunze st., 167, 443010 Samara, Russia Website : Stalin’s Bunker (in Russian)

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5. Municipal Museum Cosmic Samara

Are you interested in technology? If so, you must visit this museum. It is relatively small. You’ll only need one hour to visit, but it’s worth it.

The museum is easy to find, because of the great big rocket outside. It is accessible by tram, and there is a metro station not too far away. You can learn interesting things by taking an English tour. The descriptions next to the exhibits are only in Russian.

Municipal Museum Cosmic Samara Address : pr-t. Lenina, d.21 | Metro Rossiyskaya, 443110 Samara, Russia Contact : +7 846 263-39-35

6. Enjoy an evening at the Samara Academic Opera and Ballet Theatre

This is a magical way to spend an evening. Everything here is perfect, good operas and ballets with good decorations, orchestra, and actors! The opera building itself is indeed beautiful and is within walking distance of the historic areas of Samara. You should buy tickets early, so the price is cheaper. Before or after the performance, you can walk through the gardens surrounding the square.

Samara Academic Opera and Ballet Theatre Address : Kuibysheva Sq., 1 | Metro Rossijskaja, 443010 Samara, Russia Website : Samara Academic Opera and Ballet Theatre

7. Go for a walk in Strukovskiy Garden

This is a lovely and romantic place. This park is situated near the historic center of Samara, and it has a lot to offer. In winter it gets really magical, with figurines for the little ones, and bright lights everywhere. So if you want a quiet place to visit, this park will remain in your heart.

Strukovskiy Garden Address : Krasnoarmeiskaya, 2A, 443010 Samara, Russia Website : Strukovskiy Garden (in Russian)

8. Visit the Botanical Garden of Samara State University

This is a “hidden” place in Samara. This place looks like a real jungle, and it will make you feel like you’re living in the wild. You’ll see tropical plants and learn how the black pepper or coffee trees are growing. You can take really stunning photos here, but you’ll have to pay an extra fee. Make sure you’ll have time to come during working days, as on weekends, it’s closed.

Botanical Garden of Samara State University Address : Moskovskoye Hwy., 36, 443086 Samara, Russia Contact : +7 846 334-43-82

9. Chapaev Monument

View this post on Instagram A post shared by Boris (@bluemars77)

This is a famous monument of a Soviet hero. Many tourists come here and take photos with this monument, but there is no background info provided, so if you’re interested in history, make sure you learn about this monument before you get there. Nearby, you will find parks and a great view of the Volga River.

Chapaev Monument Address : pl. Chapaeva, 443010 Samara, Russia

10. Modernist style museum

This museum is located in the historical city center and it’s perfect for a visit even if you have just a few hours to kill in Samara. The owner was a millionaire so the things you’ll see here are of exceptional quality. You will find an exhibition of fine Belle Époque dresses, examples of furniture and decorations of the Art Nouveau era.

Modernist style museum Address : Frunze, 159, 443010 Samara, Russia Website : Modernist Style Museum (in Russian)

Put these on your list!

So now that you know the main attractions in Samara, get ready to experience a different kind of city and learn about its history!

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