what to include in hospitality business plan

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.  

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• 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

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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.

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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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Hotel Business Plan Template

Written by Dave Lavinsky

Hotel Business Plan

You’ve come to the right place to create a comprehensive business plan for a hotel.

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 sample business plan to help you create each of the key elements of a well-developed 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 daily 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 hospitality 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.

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 efforts & advertising: $150,000
• Working capital: $100,000

The following graph below outlines the pro forma financial projections for Pegasus Hotel.

Company Analysis

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 key 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.

This competitive 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 / Online Travel Agencies

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, hotel operations software, and revenue management. 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.

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. 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 start-up 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

• Marketing & advertising: $150,000

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

Free Hotel Business Plan Template PDF

You can download our hotel business plan PDF here. This is a business plan template you can use in PDF format. You can easily complete your hotel business plan using our Hotel Business Plan Template here .

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 hotel concept, identifies your target customers, presents your hotel marketing plan and details your revenue projections.

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 solid 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 Business 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, potential investors, grants, or crowdfunding platforms to secure funding.

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

Other Helpful Business Plan Templates

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

Hotel Business Plan Guide + Sample Plan

July 6, 2023

Adam Hoeksema

The hospitality industry offers immense potential, while some might believe that operating a hotel is straightforward, involving only accommodations and foot traffic, careful planning and meticulous execution are essential for achieving success, hence a well-structured business plan is indispensable.

Our primary expertise lies in hotel financial projection models but we understand that some of our clients require comprehensive business plans. That's why we've taken the initiative to delve into this topic and cover the following:

• Why Write a Business Plan For a Hotel?
• What to Include in a Hotel Business Plan?

Hotel Business Plan Outline

How to select a location for a hotel, how to analyze the competition for a hotel, how to create financial projections for a hotel, example hotel business plan, hotel business plan faqs, why write a business plan for a hotel.

For Hoteliers seeking financial support from investors, banks, or financial institutions, a well-structured business plan is a fundamental prerequisite. Demonstrating a thorough evaluation of the market, a clear and strategic approach, and a thoughtful assessment of potential risks and rewards is paramount to attracting the necessary funding for your venture.'

What to include in a hotel business plan?

A hotel business plan should provide investors and lenders with compelling reasons why guests will choose your hotel, demonstrate why you or your team are the ideal operators for the hotel, and present a financial projection that ensures their investment is secure. Below is a comprehensive outline of our complimentary hotel business plan template .

We suggest the following sections for your Hotel business plan

Executive Summary

Company Description

Market Analysis

Product and Service Offerings

Marketing Plan & Customer Acquisition

Operating Plan

Financial Plan

Choosing the right location for your hotel is a critical step in ensuring its success and captivating your target audience. To help you make the best decision, we present three essential points to consider when selecting a location for your hotel  Local Demand and Visitor Profile: Assess the local demand for hotel accommodations in the area. Analyze the type of visitors who frequently visit the locality, such as tourists, business travelers, or event attendees. Understanding the local visitor profile will help you tailor your hotel's offerings to meet their needs and preferences.

Proximity to Key Points of Interest: Look for a location that is in close proximity to key points of interest within the local area. This could include popular tourist attractions, convention centers, business districts, or entertainment venues. Being near such attractions increases the chances of attracting more guests and ensures a steady flow of potential customers.

Accessibility and Transportation Links : Ensure that the location is easily accessible by various modes of transportation. Consider the distance from major transportation hubs like airports, train stations, and bus terminals. Also, evaluate the availability of public transportation options nearby, as this will make it convenient for guests to travel to and from your hotel.

By focusing on these three points, you can identify a suitable local location for your hotel that caters to the specific needs of the local market and maximizes its potential for success.

There are a couple of tools that I like to use when analyzing the competition in the hotel industry. 

Ahrefs – Ahrefs will allow you to look up a competitor hotel's website, and you can see how much organic traffic they are getting and exactly what keywords are sending that traffic. For example, we can see that the Bottleworks Hotel in Indianapolis is receiving roughly 3,500 monthly visits from organic Google Search.  

We can also see what keywords are sending the most traffic to that page below:

By understanding the SEO strategies and keywords that competitor hotels are targeting, you can develop your content and marketing strategies to compete in the same spaces or identify underserved areas to capitalize on. This can assist in improving your hotel's online presence and attracting more guests through search engines.

TripAdvisor – Although mainly known as a review site, TripAdvisor can be a free and powerful tool for analyzing competition within the hotel industry. You can see guest ratings, read reviews, and understand what customers appreciate or dislike about different hotels in your area. This qualitative information can help you identify where your competitors are succeeding or failing and where you might have an opportunity to differentiate your services.

Just like in any industry, the hotel business has its own unique factors that impact financial projections, such as occupancy rates, room pricing, seasonal demand, and guest service expenditures. Utilizing a hotel financial projection template can simplify the process and increase your confidence. Creating accurate financial projections goes beyond showcasing your hotel venture's ability to generate revenue; it's about illustrating the financial roadmap to profitability and the realization of your hospitality goals.

To develop precise projections, consider the following key steps:

Estimate startup costs for your hotel business, including property acquisition or leasing, renovation or construction, furnishing and decoration, staff training, and initial marketing and branding expenses.

Forecast revenue based on projected occupancy rates, average room prices, ancillary service income (such as restaurants, spas, conference facilities), and potential growth in the customer base.

Project costs related to ongoing operations like housekeeping, food and beverage services, guest amenities, and maintenance.

Estimate operating expenses such as staff salaries, utility costs, property insurance, marketing expenses, guest support, and administrative costs.

Calculate the capital needed to launch and sustain your hotel business, covering initial expenses and providing working capital for continued growth, including funds for unforeseen challenges such as seasonal fluctuations.

While financial projections are a critical component of your hotel business plan, seek guidance from experienced professionals in the hotel industry. Adapt your projections based on real-world insights, leverage industry resources, and stay informed about hospitality trends and evolving consumer behavior to ensure your financial plan aligns with your goals and positions your hotel venture for long-term success.

Explore our Hotel Business Plan, presented below. If you prefer, you can access a downloadable Google Doc version of this hotel business plan template , allowing you to personalize and tailor it to your specific needs. Additionally, a helpful video walkthrough is available, guiding you through the process of customizing the business plan to perfectly align with your unique hotel concept.

Table of Contents

1. executive summary.

1.1 Organization Overview

1.2. Objectives

1.3. Mission Statement

2. Organization Description

2.1. Organization History

2.2. Legal Structure

2.3. Unique Value Proposition

2.4. Target Beneficiaries

3. Market Analysis

3.1. industry overview.

3.2. Collaborator and Competitor Identification

3.3. Target Beneficiaries

Key Point  1

4. Marketing and Fundraising

4.1. Strategic Plan

4.2. Program or Service Offerings:

4.4. Distribution Channels

4.5. Promotions and Fundraising

Key Point  2

5. Organizational Structure and Management

5.1. Organization’s Facility & Location

5.2. Staffing Plan and Volunteer Management

5.3. Governance, Financial Management, and Accountability

Key Point  3

6. financial plan.

6.1. Startup Costs

6.3. Expense Projections

6.4. profit and loss statement, 6.5. cash flow projections, 6.6. break-even analysis, 7. appendix.

7.1. Supporting Documents

7.2. Glossary of Term

7.3. References and Resources

Key Point  5

 1.1. company overview.

Briefly introduce the hotel's background, products or services, and target market.

      -  Example: Seaside Crest is a tropical-themed hotel located in Key West, Florida, offering a unique and luxurious experience for guests seeking a beachfront getaway.

   1.2. Objectives

Outlines the hotel's short-term and long-term goals.

        - Example:  Establish Seaside Crest as the premier destination for tropical hospitality in Key West, providing exceptional service and unforgettable experiences for our guests.

        - Example: Long-term: Expand our presence in other tropical destinations while maintaining our commitment to quality and guest satisfaction.

  1.3. Mission Statement

 Describes the hotel's purpose and core values.

        - Example:  At Seaside Crest, our mission is to create a haven of relaxation and tropical paradise for our guests. We are dedicated to delivering exceptional hospitality, breathtaking surroundings, and personalized service, ensuring that every guest's stay is a memorable one.

  1.4. Keys to Success

Highlights the factors that will contribute to the hotel's growth and success.

        - Example:  The success of Seaside Crest lies in our commitment to creating a tropical ambiance, offering top-notch amenities, providing outstanding customer service, and delivering a seamless guest experience. 

2. Company Description

   2.1. company history.

Provides context on the hotel's background and founding story.

        - Example: Seaside Crest is the brainchild of founder and hotelier, Emily Roberts, who envisioned creating a tropical paradise in Key West, Florida. With a passion for hospitality and a deep love for the coastal beauty of the region, Emily embarked on the journey of bringing Seaside Crest to life.

   2.2. Legal Structure

 Describes the hotel's legal structure (e.g., sole proprietorship, partnership, LLC, corporation).

        - Example: Seaside Crest operates as a limited liability corporation (LLC)

 2.3. Unique Selling Proposition

  Emphasizes the hotel's competitive advantage or unique offerings.

        - Example: Seaside Crest distinguishes itself by offering a one-of-a-kind tropical-themed experience, combining luxurious accommodations, breathtaking beachfront views, vibrant island-inspired decor, and personalized service. 

  2.4. Target Market

Defines the hotel's ideal customer base.

        - Example: Seaside Crest caters to discerning travelers and vacationers who seek an extraordinary beachside retreat in Key West, Florida. 

  Presents a general overview of the industry, its trends, and growth potential.

        - Example: The tropical hotel industry in Key West, Florida, is a thriving sector driven by the city's popularity as a tourist destination, the allure of its tropical climate, and the abundance of natural beauty that surrounds it.

3.2. Competitor Analysis

 Evaluates the hotel's direct and indirect competitors, as well as their strengths and weaknesses.

        - Example: Other hotels and resorts in Key West offering tropical-themed accommodations.

        - Example: Vacation rentals, bed and breakfast establishments, and boutique hotels in the area.

3.3. Target Market Analysis

Explores the hotel's target customers, their demographics, preferences, and pain points.

        - Example: Seaside Crest targets vacationers and travelers seeking a tropical getaway in Key West. Our primary market includes couples, honeymooners, and families looking for luxurious accommodations with a distinct tropical ambiance and proximity to the beach.

3.4. Market Opportunities

Identifies potential opportunities for the hotel to grow within the market.

        - Example: Seaside Crest can capitalize on market opportunities by offering unique amenities and experiences such as beachfront dining, spa services inspired by tropical traditions, and curated excursions to explore the natural wonders of Key West. Collaborations with local businesses for island-inspired dining and entertainment can further enhance the guest experience.

• Example 1: Conduct a survey among tourists in the area to determine their preferences for tropical-themed accommodations and their interest in a hotel with a beachfront location. (e.g., 80% of surveyed tourists express a strong preference for hotels with a tropical theme and direct beach access)
• Example 2: Analyze the occupancy rates and average daily rates of existing hotels in Key West to assess the demand and pricing trends in the market. (e.g., The average occupancy rate in Key West hotels during peak season is 85%, indicating a high demand for accommodations)

4. Marketing and Sales Strategy

4.1. product or service offerings: .

Describes the hotel's products or services in detail.

        - Example: Seaside Crest offers a range of tropical-themed accommodations and amenities, including luxury guest rooms, beachfront dining, spa services, and curated excursions.

4.2. Pricing Strategy

 Outlines the hotel's approach to pricing its products or services.

        - Example: Seaside Crest adopts a competitive pricing strategy, providing value for money while maintaining the exclusivity and high-quality experience associated with a tropical-themed hotel.

4.3. Sales Strategy

  Explains how the hotel plans to generate sales and build customer relationships.

        - Seaside Crest will implement a comprehensive sales strategy that includes online booking platforms, direct marketing to travel agencies, and partnerships with local tour operators to attract and engage potential guests.

 Describes the methods through which the hotel will deliver its products or services to customers.

   - Example: Seaside Crest will primarily distribute its services through online travel agencies, direct bookings through its website, and collaborations with travel agencies specializing in tropical getaways.

4.5. Promotions and Advertising

 Details the hotel's promotional efforts and advertising strategies.

        - Example: Seaside Crest will employ targeted marketing initiatives, utilizing social media and search engine platforms, to enhance brand visibility and attract new guests seeking a tropical-themed hotel experience in Key West..

• Example 1: Collaborate with local travel agencies to offer exclusive vacation packages that include a stay at Seaside Crest, showcasing the unique tropical experience and attracting potential guests. (e.g., 50 vacation packages sold within the first month of collaboration)
• Example 2: Organize a pre-launch event at a popular local venue, inviting travel influencers and bloggers to experience a preview of the hotel's amenities and share their impressions on social media. (e.g., 10 influencers with a combined reach of 500,000 followers attend the event and generate significant online buzz)
• Example 3: Offer a giveaway on social media to build a following

5. Facility Maintenance and Operations Plan:

   5.1. facility location and layout.

 Specify the hotel's physical business location and refer to the internal arrangement and organization of the space.

        - Example:Seaside Crest will secure a prime location in Key West, strategically positioned in close proximity to the beach and popular tourist attractions. The hotel's layout will be designed for optimal guest comfort and convenience, with thoughtfully arranged spaces and amenities.

5.2. Safety and Security:

Cover the hotel's comprehensive approach to safety and security, including surveillance systems, access control measures, etc.

        - Example: Seaside Crest will prioritize the safety and security of our guests and staff. We will implement robust security measures, including surveillance systems, access control, and trained personnel to monitor and respond to any potential threats or emergencies.

5.3. Cleaning and Housekeeping:

  Involves the hotel's procedures to ensure high standards of cleanliness, hygiene, etc.

        - Example: Our dedicated housekeeping staff will maintain the highest standards of cleanliness throughout the hotel, including guest rooms, common areas, and amenities. We will follow strict protocols to ensure a hygienic and pleasant environment for our guests.

• Example: The founding team of Seaside Crest includes Sarah Johnson, a seasoned hotelier with over 10 years of experience in managing luxury beachfront resorts, ensuring a deep understanding of the hotel industry's dynamics and customer expectations.
• Bennet  Leifer a renowned interior designer specializing in tropical-themed hospitality spaces, brings his expertise to Seaside Crest, ensuring the hotel's aesthetics align with the target market's preferences and create a memorable guest experience.

5.4. Energy Efficiency:

Involves energy-efficient practices and technologies to minimize energy consumption, reduce utility costs, and promote sustainability 

        - Example: As a responsible and sustainable hotel, Seaside Crest will strive to minimize energy consumption and reduce our environmental impact. We will implement energy-efficient practices, such as using energy-saving appliances, LED lighting, and smart systems for temperature control.

5.4.  Inventory Management:

includes tracking and controlling supplies, equipment, and amenities to optimize operations.

        - Example: Seaside Crest will employ an efficient inventory management system to track and manage hotel resources, including linens, toiletries, and other supplies. This system will ensure optimal inventory levels, minimize waste, and support smooth day-to-day operations.

All of the unique Hotel projections you see here were generated using ProjectionHub’s Hotel Financial Projection Template. Use PH20BP to enjoy a 20% discount on the template. 

   6.1. Startup Costs

  Provide a detailed breakdown of the total startup costs requirements, and where you plan for those funds to come from. You will also want to break down how the startup costs will be used including working capital to cover losses before the business breaks even.

        - Example: The total startup costs for Seaside Crest are estimated at $7,335,552. The owner plans to secure a business loan of $15,000, with  $7,500,000 contributed through personal funds.

6.2. Revenue Projections

Provide an estimate of the hotel's future revenue based on market research and assumptions.

        - Example:  Seaside Crest projects increasing revenue over the next five years, with $3,282,587 in the first year and reaching $5,938,052 by the fifth year.

Watch how to create financial projections for your Hotel

 Estimates the hotel's future expenses, including fixed and variable costs.

        - Example:  Seaside Crest's expenses include cost of goods sold, operating expenses, and direct labor and supply costs for the hotel, restaurant, spa, and events.

Summarizes the hotel's revenue, expenses, and net income over a specific period.

        - Example: Seaside Crest expects to achieve net income of $375,657 in the first year, growing to $1,845,652 by the fifth year, demonstrating a consistent increase in profitability.

 Outlines the hotel's projected cash inflows and outflows.

        - Example: Cash flow projections for Seaside Crest consider the seasonality of the hotel industry, ensuring effective financial management throughout the year.

  Determines the point at which the hotel's revenue equals its expenses.

        - Example: Seaside Crest anticipates reaching its break-even point within the first year of operation, indicating a strong potential for early profitability in the hotel industry.

Key Point  4

• Example 1: Benchmark financial projections against industry averages, such as the average revenue per available room (RevPAR) and average daily rate (ADR) for hotels in Key West, to ensure realistic revenue forecasts. (e.g., Seaside Crest's projected ADR is $250, in line with the average ADR of comparable beachfront hotels)
• Example 2: Analyze historical data from similar hotels in the area to estimate seasonality and demand fluctuations, accounting for factors like peak tourism seasons and local events. (e.g., Seaside Crest projects a 90% occupancy rate during the winter season based on the historical occupancy rates of nearby beachfront hotels)

   7.1. Supporting Documents

 Includes any relevant documentation that supports the information presented in the business plan, such as resumes, financial projections, market research data, and permits or licenses.

   7.2. Glossary of Term

 Provides definitions for industry-specific terms used throughout the business plan to ensure reader comprehension.

   7.3. References and Resources

Lists any sources or resources referenced during the preparation of the business plan, including industry reports, market research data, and relevant publications.

• Example 1: the owners of Seaside Crest invest a significant portion of their personal savings into the hotel's development and operations, demonstrating their commitment and confidence in the success of the venture. Additionally, they secure a personal guarantee for the hotel's financing, further aligning their interests with lenders and showcasing their willingness to share the risk.

How do I start a hotel business from scratch?

Starting a hotel business from scratch involves several key steps. Begin by conducting market research to identify a suitable location and target market. Develop a detailed business plan that outlines your hotel's concept, services, and financial projections. Secure funding through personal savings, loans, or investors. Obtain necessary permits and licenses and hire staff with hospitality experience.

What type of hotel should I open, and how do I choose a niche?

The type of hotel you open depends on your target market and location. Consider factors such as the level of service, amenities, and price range. Choose a niche that aligns with your interests and the demand in the local market. Options include boutique hotels, budget accommodations, luxury resorts, or themed hotels.

What marketing strategies can I use to promote my hotel?

Use a mix of digital marketing, social media, content marketing, and search engine optimization (SEO) to reach potential guests online. Collaborate with local tourism boards, travel agencies, and event planners to promote your hotel. Encourage positive reviews and testimonials to build credibility.

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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• How to Create a Hotel Business Plan: Beginners Guide

November 21, 2023

Would you build a house without a blueprint?

Probably not, because it could lead to inconvenience and problems.

The same concept is genuine in the corporate world.

It would be best to have a business plan to operate in the hospitality industry. When planning to own or operate a hotel, you must include everything from the project strategy to budgeting and implementation.

As the studies show that the global hospitality industry is expected to grow to 5.8 trillion U.S. dollars in 2027 at a CAGR of 5.5%, a detailed roadmap is what you need to enter the hotel business.

A hotel business plan will keep you on track and help attract investors. Remember, it is a crucial component for planning for success .

Let’s explore the concrete steps to include in your hotel business plan.

The path starts here.

5 Key Components of a Hotel Business Plan

Having a business plan is a no-brainer.

With a solid business plan, attracting investors , staying on track, ensuring workflows are followed, and enabling you to make crucial decisions becomes more accessible.

Let’s explore the critical components of the business plan for a hotel:

1. Executive Summary

An executive summary is a quick and concise part of a business plan that provides a complete roadmap of your hotel business.

A concise business overview encapsulating visionary business goals is a strategic compass, providing a snapshot of a company’s direction and objectives.

It offers stakeholders a quick understanding of the business’s purpose and potential, aiding informed decision-making and fostering alignment with the organization’s vision.

An executive summary should include:

• Business Overview
• Vision statement
• Mission statement
• Business objectives

You must write your executive summary at the final stage of business planning , as it would help you summarize the goals and objectives of your hotel business.

2. Business Description and Concept

A business plan’s business description and concept section should clarify your mission, the goals you are looking to achieve, unique selling points, and a breakdown of shareholder involvement.

In this section, you will outline the full-service hotel’s concept , target market, unique selling points, and overall vision, which is crucial for standing out in the competitive landscape.

The hotel landscape looked very different 20 years ago; today’s market is saturated.

Therefore, defining hotel concepts around the following key elements will help.

• Positioning

Hotel concept must define how your hotel should look like, what services will be offered, how it presents and markets itself the differentiating factors, and how its staff interacts with guests. Providing this information helps establish a clear market position and enhances its chances of success.

3. Market Analysis and Competitive Landscape

A comprehensive market analysis is indispensable in a business plan. It provides vital insights into the target market, industry, competitive landscape, and consumer behavior.

Understanding hotel industry trends enables you to make informed decisions, mitigate risks, and identify market gaps and opportunities. It’s the foundation for a successful and sustainable business strategy.

Take a broad look and analyze industry trends using business models such as SWOT, Porter’s five forces framework, and PESTEL analysis.

• SWOT Analysis

A SWOT analysis will give you an in-depth analysis of the hotel industry’s strengths, weaknesses, opportunities, and threats.

• Porter’s Five Forces Framework

Porter’s five forces framework helps you look beyond direct competitors when assessing strategy and, instead, consider broader environmental forces. It is best for in-depth competitor assessment and helps create a stand-out USP.

• PESTEL Analysis

PESTEL is an acronym for political, economic, social, technological, legal, and environmental. It gives a bird’s eye view of the whole environment from many different angles that one wants to check and keep track of while contemplating a business plan.

A thorough analysis can help solidify your competitive advantage and develop a contingency plan for how you will deal with your weaknesses and threats.

4. Organizational Structure and Management

An organizational structure is an integral part of the business plan as it provides an overview of the hotel’s management roles according to job responsibility and ranking.

Organizational structure enables quick decision-making , better coordination, and employee communication, enhancing productivity. It ensures the proper functioning of an organization by establishing its chain of command and workflow.

While structuring your hotel team, there are different types of organizational structures that you can choose from:

• Hierarchical

Management operational expertise is essential to ensure that each department carries out its goals to the best ability possible and handles any roadblocks that may stand in the way of business.

Let’s look at what management hierarchy looks like, practically speaking.

• Business owner
• General manager
• Assistant managers
• Department managers
• Operations staff

Detail your short and long-term operational plans and the stakeholders involved for each area. Mention efficient management practices that will help you make better strategic decisions relating to resources and make it easier to scale up your hotel business.

5. Services and Facilities

In this business plan section, you must mention all your hotel services, facilities, and guest offerings. Meeting guest expectations should be at the core of your hotel business plan.

You can enhance its appeal to potential investors and define the guest’s journey by showcasing services and facilities to meet diverse guest needs. Moreover, by outlining the services and facilities, the hotel can create a unique selling proposition and tailor its marketing efforts accordingly.

Here’s a list of standard services and facilities you can find in many hotels:

• Accommodation
• Front Desk Services
• Meeting and Event Facilities
• Recreational Facilities
• Business Services.
• Housekeeping
• Transportation Services
• Entertainment
• Concierge Services
• Childcare Services
• Pet-Friendly Services
• Special Needs Accessibility
• Luggage Storage
• Laundry and Dry Cleaning
• Room Amenities
• Spa and Wellness Services
• Emergency Services
• Wi-Fi and Internet Access

All the quality hotel amenities , services, and facilities must be mentioned in your business plan and aligned with the preferences of your target market.

Financial Projections and Funding

Establishing financial projections and identifying funding requirements and sources is fundamental to planning. They provide a roadmap for the hotel’s financial future, outlining revenue expectations, expense estimates, and profit projections.

Additionally, it offers a clear understanding of the return on investment potential, mitigating financial risks and ensuring sound financial planning for the hotel’s success and long-term sustainability.

Revenue Projections and Budgeting

Revenue projections and budgeting are essential for assessing the business’s viability, attracting investors or securing loans, and demonstrating a well-thought-out financial strategy.

Understanding the financial feasibility of the hotel business is essential to reduce or manage your business risk.

In this section, you should include the following:

• Revenue Projections
• Expense Projections
• Profit and Loss Statements
• Cash Flow Projections
• Financial Statement
• Break-Even Analysis
• Funding Requirements
• Use of Funds
• Funding Sources
• Return on Investment (ROI)
• Financial Assumptions
• Financial Contingency Plan
• Debt Repayment Plan
• Sensitivity Analysis

Financial forecasting based on sustainable budget practices will help you to decide whether a project or an investment is worthwhile by looking at its value and the minimum yield it generates. It

Funding Requirements and Investment Plan

Having an investment plan before starting the hotel business will provide a clear financial requirements roadmap, ensuring adequate capital for startup and improving ongoing operations .

Attracting investors and lenders becomes more accessible with a solid funding and investment plan, as it demonstrates financial preparedness to the investors and lenders.

Here’s how you can structure this section in your business plan:

• Startup Capital
• Working Capita
• Equity Investment
• Grants and Subsidies
• ROI Projections
• Exit Strategy
• Risk Mitigation
• Legal and Contractual Agreements

Securing hotel funding and attracting investments for your hotel becomes more accessible with a clear and well-structured plan. It instills confidence and makes your home business more attractive and feasible.

Risk Analysis and Mitigation

A Proactive approach to risk analysis and mitigation helps you develop contingency plans.

It helps mitigate operational, financial, and reputational threats , ensuring the safety and satisfaction of guests, protecting investments, and maintaining business continuity, ultimately supporting long-term profitability and success in a competitive industry.

Addressing risk mitigation strategies in the plan is crucial in creating a resilient and sustainable business model in the competitive and ever-evolving hotel industry.

To manage risks in the hotel business, you can implement the following strategies:

• Risk avoidance – For example, you may face a risk where you won’t be able to serve the customers on time due to a lack of staff. To avoid this risk, you could hire the correct number of staff in case of a seasonal rush at the hotel.
• Risk reduction – For example, you can’t serve an essential ingredient for your dish at your hotel due to seasonality issues. To avoid this risk, you must ensure inventory management practices and have connections with multiple suppliers.
• Risk transfer – For example, if you don’t have the expertise to maintain social media, you are at a loss for online opportunities. You can outsource digital marketing to an expert agency to avoid this risk.
• Risk control – For example, if you cannot achieve a certain staff performance level. To avoid this risk, you can provide on-site training and development.

The hotel business plan is committed to safeguarding investments and ensuring guest safety and satisfaction by identifying and assessing potential risks.

It also reassures investors, lenders, and stakeholders that the hotel is well-prepared to navigate unforeseen circumstances, enhancing confidence in the project’s viability.

Implementation Plan and Milestones

A strategy implementation plan is a detailed roadmap that clearly defines the steps and activities required to execute the strategy effectively.

In this section, you must present a breakdown of tasks into identifiable steps, assign tasks and responsibilities to the people involved, and create a definitive timeline for the entire project.

Operational Plan

An operational plan outlines the steps to achieve your hotel business objectives. It is helpful for investors and your employees because it pushes you to think about tactics and deadlines.

Your operations plan should be able to answer the following:

• Who – The person or departments in charge of completing specific tasks.
• What – A description of what each department is responsible for.
• Where – The information on where daily operations will be taking place.
• When –The deadlines for when the tasks and goals are to be completed.
• How much – The cost amount each department needs to complete their tasks

When creating your operational plan, consider all the activities that will help implement hotel operations, ensuring service excellence . Make sure your strategic objectives are in place and relevant.

Below is the list of the day-to-day operation plan for service delivery.

• Reception and Guest Services
• Food and Beverage Services
• Maintenance and Engineering
• Accounting and Finance
• Sales and Marketing
• Reservations and Front Desk
• Health and Safety
• Guest Relations and Services
• Room Reservations and Inventory
• Procurement and Supplies
• Efficient Staffing

Marketing and Promotion Strategy

Marketing strategy and promotion plans help hotel reach their target audience, build brand awareness, and drive sales. With it, a company may be able to compete, gain visibility, or achieve growth goals.

A well-defined marketing and promotion strategy is pivotal for revenue growth, profitability, and long-term success, ensuring that the hotel stands out and thrives in the hospitality sector.

Hotels increasingly embrace moral marketing , prioritizing sustainability, social responsibility, and ethical practices to connect with conscious consumers and create a positive impact. Include this in your business plan to manage the costs associated with green initiatives, ethical sourcing, social responsibility, and marketing to prioritize moral marketing and sustainability.

As a hotel business owner, online and offline marketing strategies must align with the hotel’s overall objectives and goals, enabling the hotel to achieve the desired operational efficiencies.

Online marketing and promotion strategies for the hotel business include:

• Search Engine Optimization (SEO)
• Pay-Per-Click Advertising (PPC)
• Social Media Marketing
• Email Marketing
• Online Travel Agencies (OTAs)
• Content Marketing
• Influencer Marketing
• Online Review Management

Offline promotion initiatives for guest attraction used by hotel business include:

• Local Event Sponsorship
• Print Advertising
• Direct Mail Marketing
• Travel Trade Shows
• Networking with Local Businesses
• Billboards and Signage

Promoting your hotel business will help you reach potential guests and give them a reason to choose your hotel over the competition, thanks to your unique value proposition.

Milestones and Key Performance Indicators (KPIs)

Setting milestones and key performance indicators helps hotel businesses stay on track and focused on achieving goals. These measurements enable informed decision-making , highlight areas that require improvement, and can be instrumental in adapting strategies to market trends.

Milestones and KPIs ensure goal tracking and enable accountability and efficiency, contributing to the overall success and sustainability of the hotel business.

Following are the ways to set milestones for your hotel business:

• Revenue Growth Targets
• Occupancy Rate Goals
• Customer Satisfaction Improvements
• Expansion and Renovation Milestones
• Marketing and Advertising Milestones
• Staff Training and Development Benchmarks
• Sustainability and Green Initiatives Targets

Once you’ve identified the milestones for hotel business performance , you can define key metrics to analyze the outcomes.

Critical metrics for tracking hotel performance:

• Occupancy Rate
• Average Daily Rate ( ADR )
• Revenue per Available Room ( RevPAR )
• Gross Operating Profit per Available Room ( GOPPAR )
• Customer Satisfaction Scores
• Direct Booking Percentage

Now, as we navigate the hotel business plan, this outline will be the compass that guides your venture toward success.

Conclusion on business plan creation showcases that your vision and strategies will serve as a tool to instill confidence in investors.

This meticulous planning, coupled with your commitment, inspires investor confidence and secures the necessary support for turning your hotel dream into a prosperous reality.

Maximize your hotel business by leveraging this dynamic plan to achieve your goals.

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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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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!  

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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

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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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 start a successful hotel business: a complete guide

From strategy, to software, to start-up costs: everything a new hotel owner needs to know.

In this guide, we deep dive into how to start a hotel business with step-by-step instructions and actionable tips. Whether you’re new to the hotel game or looking to grow your existing premises – here’s how to run a successful hotel.

In a world where renting out a property is easier than ever – all it takes is an internet connection and a host profile on Airbnb – arguably,  anyone can become a hotelier. But as anyone who’s done it will tell you, owning a hotel business goes far beyond giving people a place to sleep. The most successful hotel businesses take that practical need and turn into an unforgettable experience for their guests. It doesn’t matter whether you’re starting a five-star hotel, a family-friendly resort or budget motel – how you make your guests feel will determine your hotel’s reputation. And with online reviews the lifeblood of the hospitality industry, it’s critical that every guest leaves satisfied.

That’s why we created this guide – to help you dive deep into the crucial elements of starting – and growing – a successful hotel business.

Guide Contents:

• What type of person can run a hotel?

Find your place in the market

• Choosing your hotel identity

Pull it all together: creating a hotel business plan

• Crunch the numbers: the cost of getting started
• Spread the word: develop a marketing plan
• The A-team: hiring and training staff

Smooth operation: implementing systems

• Support for setting up your hotel with Preno

When the first-ever hotel opened in 1768, everything was managed on paper – a huge ledger with guest details painstaking recorded. Computers and spreadsheets made things easier, and more recently, hotel management software streamlined everything from start to finish. 

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Even so, it takes an entrepreneurial mindset and a passion for the business to tap into what is now one of the largest industries in the world. Your drive to serve and delight your guests while managing multiple tasks with grace and dignity will determine the culture and success of your team. 

For your hotel to thrive, you must be willing to step up, work hard and understand that customer experience is everything.      

First, you need to thoroughly understand what it means to own a hotel. Soak up the latest news, thought leadership and best practices from local and international experts – Preno, for example, sends fortnightly industry news. While researching hotels in your area, you might find there’s no demand for your initial idea or that a slight tweak to your plans could prove more profitable.

A strong market analysis will help you decide whether you build or buy, or if adding efficiencies like new technology could streamline operations and improve your bottom line. 

Choose your hotel identity

Your style of hotel will inform several business decisions. It isn’t easy to transition from one type to another, so choose carefully based on your market research.

• Boutique. Often smaller, with unique characteristics, e.g. historic building
• Family-friendly. Larger rooms, extra beds, entertainment facilities and attractions close by, caters to the entire household
• Budget. Lower rates, scaled-back amenities to pass savings on to the customer  
• Luxury. High price tag, top-notch service, access to four or five-star amenities, e.g. spa, concierge, room service

A business plan is critical to laying out the foundations of launching, promoting and operating your business. To secure investment, it’ll be a requirement.

Here’s a summary of what your business plan should include. You’ll find more detail on some of these aspects further in the guide.      

• Executive summary. Give a high-level overview of your hotel business plan – short and concise. Include your mission statement and your objectives.
• Brand positioning. Dive deep into the story of your brand – who you are, your unique selling points and your target audience.
• Market/industry analysis. Demonstrate that you understand the market you’ll be operating in – both from a local standpoint, and a broader look at the industry. This will show investors your potential for growth based on local travel patterns and industry trends.
• Competitor analysis. Highlight your understanding of your competitors, and how your hotel fills a gap in the market. A SWOT (strengths, weaknesses, opportunities, threats) analysis is a good way to do this.
• Customer segmentation. Break down your target market: demographics, location, socioeconomics and behaviours. This is also known as crafting a guest persona. It’s important to understand your primary target market intimately, so you can cater for an experience that meets their needs and expectations.  
• Strategic plan. Cover marketing, distribution and revenue management in this section. This is where you’ll convince investors that you have a sound plan to connect with customers, manage your inventory and maximise your revenue.
• Operations plan. Create a detailed plan that covers staff, operating processes, suppliers and inventory management – everything involved in operating your hotel business. 
• Financial plan. Start talking money. Start-up costs followed by ongoing expenses (payroll, purchases, rent and utilities), forecasts and profit potential. 
• Management team. Introduce the people who will be running your business, their backgrounds and their capabilities.
• Important milestones. Include a timeline of relevant milestones (build, opening, profitability). This gives you progress markers to aim for and will increase your likelihood of success. 
• Appendix. Add additional information or supporting documentation to the appendix. Your business plan should focus on important strategic highlights – everything else you can add at the end.

Crunch the numbers: the costs of getting started

There are several variables that will determine the cost of opening a hotel:

• Location. Tourist hotspots and inner-city hotels will be more expensive than somewhere more regional or rural.
• Quality. Starting a five-star resort will be a lot more expensive than a budget motel.
• Size. Number of rooms and hotel facilities (restaurant, meeting room, spa, gym).

While it’s challenging to pinpoint the cost of setting up a hotel business, there are five areas you’ll need to include in your start-up budget:

• Land. Any real estate fees associated with purchasing land or securing a lease for your hotel site.
• Building and construction. Whether you’re starting from scratch, renovating an existing property or buying into a franchise, this will take up the largest portion of your start-up budget. Hotel owners typically need a lot of capital to get started, but you could secure a construction loan to fund this part of the project. Either way, your building costs will vary depending on your footprint, quality of materials and current building condition.
• Soft costs. Non-construction-related expenses like insurance, architects, consents, permits and taxes, designers and lawyers. 
• Furniture, fixtures and equipment. These are the costs associated with furnishing your hotel – anything that’s moveable, i.e. beds, electronic equipment, tables, chairs and desks.
• Working capital. For hiring staff, paying salaries and any expenses incurred before you open your doors and the cash starts coming in.

Now that you’ve got some numbers down on paper, it’s time to figure out whether your hotel venture is feasible. The numbers will tell you if your capital costs are worth the risk. Estimate key revenue and expenses like room pricing, vacancy rates and revenue per room. Don’t forget ongoing operating expenses like maintenance, wages, advertising, stock (service products and equipment) and utilities.

Run through a handful of scenarios in your forecasting to see how key decisions or events will impact the potential profitability of your business. You can find out more about calculating hotel metrics and conducting a hotel market analysis in this guide:

< How to calculate ADR and other hotel metrics>

Spread the word: developing a marketing plan

You’ve secured financing, the build or renovations are well underway – now you need to share your hotel with the world. Your hotel marketing plan is an important part of your overall business strategy. This is how you’ll communicate with your target audience – using your market research to guide you.

There are lots of ways to market your hotel – be creative and brainstorm ways to make your business stand out. There’s traditional marketing like TV, print and radio, or partnering with a PR agency or travel agent. 

In addition to setting up a well-optimised website and booking engine , here are some digital marketing ideas you’ll want to explore:

• Online travel agents (OTAs)– Think Booking.com, Expedia, TripAdvisor, and others. Most accommodation providers manage this through a channel manager like Preno.
• Social media marketing – Facebook, Instagram and LinkedIn are the big three. Even if you don’t use all platforms straight away, you’ll want to secure as many handles as you can. Here’s a simple guide to creating a social media strategy that works .
• Paid versus organic advertising – Google Ads, boosted Facebook posts and sponsored Instagram posts are all examples of paid marketing. Sharing content like blogs or videos on YouTube through your social media platforms is designed to drive customers organically to your website. 

Want more ideas on how to promote your hotel business online? Read this guide:

<The ins and outs of hotel online marketing>

The A-team: hiring and training hotel staff

Hiring the right team members can make or break your plan to grow a successful hotel business. Most skills and knowledge can be taught but finding people with the right innate characteristics is critical.      

Attracting a stellar team

Before you place any job ads, get clear about the type of people you want to hire – what values, insights and skills will they bring to the team? Clarity here will ensure you attract like-minded people who share your vision. Your employees reflect your brand, so they need to exemplify the character traits you feel are most important to your hotel. 

You’ll then need to figure out a plan: role, requirements, hiring timeline and training. Depending on whether you buy or build, and the size of your hotel business, there will be key team members you’ll need to hire first. These are usually sales and marketing, finance, project management and facilities. 

Onboarding – get to know the team

Once you’ve got the team, the work doesn’t stop. Proper onboarding and training are chances to show people the ropes and give your team time to gel before the big opening day. Extra training for particular roles may be needed.

Before you open your doors, you’ll need to set up hotel systems and software to streamline and automate operations, so you can run your business leaner and more efficiently. Your requirements for user-friendliness and functionality alongside your budget will come into play when choosing the best hotel management system for your property.      

Here are some options you’ll want to consider:

• Hotel management system. This will likely be at the top of your list. Without a system to manage your bookings, you’ll be in the red before you’ve even started. A good system will facilitate management and administrative tasks including front-desk operations, rate and occupancy management and payment processing. It also connects to all the other important tools your hotel uses – like Xero or Lightspeed. 
• Channel manager. Channel managers allow you to automate changing your rates and managing your availability across all your channels – so you don’t have to spend all day doing it. 
• Booking Engine. These help you avoid the 15% fees charged by OTAs like Booking.com and Airbnb by collecting bookings directly via your website. Be sure to pick a booking engine like Preno that is optimised for mobile, and tailored to create easy conversions.
•   Accounting software. Preno’s world-class integration with Xero ensures the two applications work seamlessly together to automate invoicing, bookkeeping and payment processing – making it easy for hoteliers to manage their bookings and accounting in one place. Well-connected systems will give you clearer insights into how your business is performing. 
• Restaurant management software. If your hotel offers food and beverages in a restaurant or similar, you’ll want a Point of Sale (POS) system that connects your restaurant to your hotel management system. This will allow guests to charge back to their room. Preno and Lightspeed Kounta POS enable this type of customer experience.

Time to open the doors: launching your hotel business  

This is when things can get a little scary – but also exciting! You’ve put in the hard work, you’re ready to open the doors – and invite your first guests in. 

Opening events are often well-received and they’re a great chance to connect with your local community and key stakeholders. Put your best foot forward by planning an event that reflects your purpose and values and focus on building relationships. 

Go forth and conquer – you’re ready

The hotel industry is a hyper-competitive environment, and the disruption of Covid-19 in the last year has triggered a fundamental shift in the way accommodation facilities operate. Despite all the change, customer experience is one of the most important elements in determining the success of a new or existing hotel business. If you know what your target hotel guests need, and you can deliver on this, plus more (i.e exceeding customer expectations), your hotel’s reputation – and success – will be off to the best start. It’s a big bet and the risk is high, but careful planning, strategy and empowering your operation with the right technology will set you on course to starting a successful hotel business.

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Talk to the Preno team about getting set up.  

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Sample Hotel Business Plan

Writing a business plan is a crucial step in starting a hotel. Not only does it provide structure and guidance for the future, but it also helps to create funding opportunities and attract potential investors. For aspiring hotel owners, having access to a sample hotel business plan can be especially helpful in providing direction and gaining insight into how to draft their own hotel business plan.

Download our Ultimate Hotel Business Plan Template

Having a thorough business plan in place is critical for any successful hotel venture. It will serve as the foundation for your operations, setting out the goals and objectives that will help guide your decisions and actions. A well-written business plan can give you clarity on realistic financial projections and help you secure financing from lenders or investors. A hotel business plan example can be a great resource to draw upon when creating your own plan, making sure that all the key components are included in your document.

The hotel business plan sample below will give you an idea of what one should look like. It is not as comprehensive and successful in raising capital for your hotel as Growthink’s Ultimate Hotel Business Plan Template , but it can help you write a hotel business plan of your own.

Hotel Business Plan Example – StaySerenity Inn

Table of contents, executive summary, company overview, industry analysis, customer analysis, competitive analysis, marketing plan, operations plan, management team, financial plan.

StaySerenity Inn is an innovative hospitality venture located in the heart of Tucson, Arizona, dedicated to providing guests with a tranquil and serene stay experience. Our mission is to offer high-quality accommodations that blend modern comforts with the unique charm and beauty of the Southwest. We aim to cater to a wide array of guests, from business travelers to families seeking a peaceful retreat. By prioritizing customer satisfaction and leveraging the picturesque landscape and cultural richness of Tucson, we are committed to becoming a leading choice for travelers seeking comfort, peace, and a touch of local flavor in their accommodations.

Our success is built on a foundation of identifying and capitalizing on key factors that set us apart in the competitive hospitality market. To date, we have made significant strides in establishing a strong brand identity, highlighted by our commitment to exceptional customer service and creating a serene guest experience. Our strategic location, which combines accessibility with scenic beauty, plays a crucial role in attracting our target clientele. Additionally, our focus on sustainability and community engagement has not only enhanced our brand image but has also fostered positive relationships with local businesses and stakeholders. These accomplishments are testament to our dedication to excellence and innovation in the hospitality industry.

The hospitality industry is witnessing a dynamic shift, with travelers increasingly seeking personalized and unique stay experiences over conventional hotel accommodations. This trend is particularly pronounced in destinations like Tucson, Arizona, where the blend of natural beauty, cultural heritage, and recreational activities attracts a diverse visitor base. The market shows a growing preference for accommodations that offer a sense of place and connection to the local community, alongside modern amenities and sustainable practices. This evolving landscape presents both challenges and opportunities for StaySerenity Inn, as we strive to meet the changing preferences of travelers while standing out amidst the competition through our unique value proposition.

Our target customers encompass a broad spectrum of travelers who share a common desire for a tranquil and immersive stay experience. This includes business professionals seeking a quiet retreat after a day of meetings, families looking for a comfortable and engaging place to stay during vacations, and solo travelers drawn to the cultural and natural attractions of Tucson. Our marketing efforts are tailored to resonate with these segments, emphasizing the serene environment, personalized service, and access to local experiences that StaySerenity Inn offers. Understanding the diverse needs and preferences of our target customers is crucial to our strategy, guiding our service offerings and marketing messages to effectively attract and retain our desired clientele.

StaySerenity Inn’s competitive advantage lies in our ability to offer a peaceful and personalized stay experience that seamlessly integrates the natural and cultural richness of Tucson. Unlike our competitors, we emphasize tranquility and a deep connection to the local environment, catering to those seeking a more serene and authentic travel experience.

Our marketing plan revolves around highlighting the unique aspects of StaySerenity Inn, including our serene location, personalized services, and commitment to sustainability. We offer a range of accommodations and pricing options to suit various needs, from luxurious suites to more affordable rooms, all designed with tranquility and comfort in mind. Our promotions plan is multifaceted, encompassing digital marketing campaigns, partnerships with local businesses, and special package deals that showcase the value and unique experiences available at StaySerenity Inn. By leveraging social media, search engine optimization, and targeted advertising, we aim to increase our visibility and attract our target customer segments effectively.

Our operations plan is structured around key milestones that are crucial for the successful launch and growth of StaySerenity Inn. These include securing a prime location, obtaining necessary permits and licenses, completing the building and furnishing of our hotel to meet our brand standards, and hiring and training a committed team. We are focused on implementing an effective marketing strategy, launching our hotel with a strong online presence, and achieving operational excellence to ensure guest satisfaction and financial success. Establishing partnerships with local businesses and attractions is also a priority, enhancing our guests’ experience and supporting our goal of reaching $15,000/month in revenue.

Our management team is composed of experienced professionals with a diverse set of skills and a shared passion for hospitality. This team brings together expertise in hotel management, customer service, marketing, and sustainability practices, ensuring that every aspect of StaySerenity Inn’s operations is guided by knowledge and a commitment to excellence. Our leadership’s dedication to creating a serene and memorable guest experience is at the core of our business philosophy, driving our efforts to achieve success in the competitive Tucson hospitality market.

Welcome to StaySerenity Inn, a new beacon of hospitality in Tucson, AZ. As a local hotel, we take pride in introducing a high-quality lodging experience that has been missing in our community. Our commitment is to provide an unparalleled stay for all our guests, ensuring they find a serene and comfortable environment every time they choose us.

At StaySerenity Inn, our offerings are comprehensive and tailored to meet the needs of every guest. Our accommodation services are top-notch, designed to ensure comfort, security, and the best of modern amenities. Dining and catering at our hotel promise an exquisite culinary journey, with dishes prepared by top chefs that cater to a variety of tastes and dietary requirements. For those seeking an effortless and enjoyable stay, our concierge and guest services are always on hand to assist with any needs, from booking tours to making restaurant reservations. Our housekeeping and maintenance teams ensure that all aspects of the hotel are pristine and functioning optimally, creating a clean and welcoming environment for our guests. Additionally, our recreational and wellness facilities, including a spa, gym, and pool, offer guests the chance to unwind and maintain their health and well-being while staying with us.

Located in the heart of Tucson, AZ, StaySerenity Inn serves both the local community and travelers visiting this vibrant city. Our strategic location allows easy access to the best that Tucson has to offer, including cultural sites, natural parks, shopping, and dining experiences, making us a perfect choice for those looking to explore the area.

Our unique position for success stems from several key factors. Firstly, our founder brings invaluable experience from previously running a successful hotel, ensuring that StaySerenity Inn benefits from proven strategies and a deep understanding of the hospitality industry. Additionally, we are committed to offering superior guest and accommodation services compared to our competition, setting new standards for what guests can expect during their stay.

Since our inception on January 3, 2024, as a Limited Liability Company, we have made significant strides in establishing StaySerenity Inn as a premier destination for guests. Our accomplishments to date include the creation of a distinctive logo that represents our brand’s values, the careful selection of a company name that communicates our mission, and securing a prime location that complements our offerings. These achievements mark the beginning of our journey to becoming a cornerstone of hospitality in Tucson, AZ.

The hotel industry in the United States is a robust and thriving market, with an estimated size of over $200 billion in revenue annually. This industry encompasses a wide range of accommodation options, from luxury resorts to budget-friendly motels, catering to a diverse range of travelers and tourists. With an increasing demand for travel and tourism in the country, the hotel industry is poised for continued growth in the coming years.

Market research indicates that the hotel industry in the United States is expected to experience steady growth in the upcoming years, driven by factors such as a growing economy, rising disposable incomes, and an increasing preference for travel experiences. As more Americans choose to explore different destinations and seek unique lodging options, the demand for hotels is expected to rise, creating opportunities for new players in the market like StaySerenity Inn.

Recent trends in the hotel industry, such as the rise of experiential travel, the popularity of boutique hotels, and the increasing focus on sustainability and eco-friendly practices, bode well for StaySerenity Inn. By offering personalized experiences, eco-conscious amenities, and a convenient location in Tucson, AZ, StaySerenity Inn is well-positioned to attract a growing segment of travelers who seek unique and memorable stays. With a focus on customer satisfaction and a commitment to providing exceptional service, StaySerenity Inn is poised to succeed in the thriving hotel industry in the United States.

Below is a description of our target customers and their core needs.

Target Customers

StaySerenity Inn will target local residents seeking a luxurious getaway without the need to travel far from home. This customer segment includes couples looking for a romantic weekend escape, families desiring a convenient vacation spot, and individuals needing a serene environment for relaxation or personal reflection. The Inn will tailor its offerings to cater to these local demands, from personalized spa services to family-friendly activities and romantic packages.

Aside from local residents, StaySerenity Inn will also attract business travelers who value convenience, comfort, and exceptional service. These customers often seek accommodations that provide a seamless blend of work and leisure amenities. The Inn will equip its facilities with state-of-the-art business centers, high-speed internet, and meeting rooms to meet the needs of this segment, while also offering leisure amenities that encourage relaxation after a day of work.

Additionally, StaySerenity Inn will target tourists and adventure-seekers visiting Tucson for its unique attractions and outdoor activities. This segment is drawn to experiences that are both enriching and authentic, from exploring the Sonoran Desert to cultural tours in the city. The Inn will offer customized tour packages and adventure experiences, making it an attractive choice for those wishing to explore the natural beauty and cultural richness of Tucson.

Customer Needs

StaySerenity Inn fulfills the essential need for high-quality accommodation, catering to guests seeking comfort, modern amenities, and exceptional service. Guests can expect meticulously designed rooms that blend luxury with functionality, ensuring a restful and productive stay. The Inn prioritizes cleanliness and customer care, making it a preferred choice for discerning travelers.

Understanding the diverse needs of its guests, StaySerenity Inn also offers a range of guest services designed to enhance their stay. From a concierge ready to assist with local recommendations to seamless check-in and check-out processes, every aspect is crafted to meet the high expectations of its guests. Additionally, amenities such as high-speed internet, a state-of-the-art fitness center, and on-site dining options cater to both leisure and business travelers alike.

Beyond the basics, StaySerenity Inn recognizes the growing demand for personalized experiences. Guests can enjoy tailor-made services, including room customization and event planning assistance, ensuring their stay is as unique as their preferences. This attention to detail not only satisfies the immediate needs of its guests but also fosters a lasting relationship, encouraging repeat visits.

StaySerenity Inn’s competitors include the following companies:

Hotel McCoy is an art hotel that focuses on local culture and retro vibes, offering its guests a unique blend of modern amenities and mid-century charm. The hotel provides services such as an outdoor pool, a fitness center, and a bar, all adorned with works from local artists. Its price points are moderate, making it accessible to a wide range of customers seeking an artsy yet affordable stay. Hotel McCoy serves not only tourists but also locals looking for a staycation with a twist. Its key strength lies in its unique branding and strong local partnerships. However, its reliance on a niche market could be considered a weakness, as it may not appeal to all segments of the broader traveler market.

Arizona Inn is an upscale, historic hotel known for its luxurious accommodations and exceptional service. It offers a range of services including fine dining, a swimming pool, tennis courts, and beautifully manicured gardens. The price points are on the higher end, targeting affluent travelers seeking a premium experience. Located in a serene part of Tucson, it attracts both leisure and business travelers who appreciate its quiet elegance and attention to detail. Arizona Inn’s key strengths are its historic charm, high-quality service, and exclusive ambiance. A potential weakness is its higher price point, which may limit its accessibility to a broader audience.

Hacienda Del Sol Guest Ranch Resort blends the rustic charm of a historic ranch with the luxury of a top-tier resort. It offers a variety of accommodations from rooms to private casitas, alongside amenities such as horseback riding, spa services, and fine dining. The resort caters to a premium segment, with price points reflecting its upscale offerings. It serves a diverse clientele, including couples on romantic getaways, families, and corporate groups. Hacienda Del Sol’s strengths include its unique historical background, extensive amenities, and breathtaking desert views. However, its niche appeal as a luxury ranch resort may not cater to all preferences, particularly those looking for a more urban or contemporary setting.

Competitive Advantages

At StaySerenity Inn, we pride ourselves on surpassing the expectations of our guests through unparalleled accommodation and guest services. Our dedication to creating a memorable and comfortable experience is evident in every aspect of our operations. We understand that the little details make a big difference, which is why we offer personalized services tailored to the specific needs of each guest. From the moment they check in, guests can expect a warm, welcoming atmosphere coupled with state-of-the-art amenities designed to cater to both leisure and business travelers. Our staff is trained to go above and beyond, ensuring that every stay is seamless and every guest feels valued and cared for.

Beyond our exceptional service, StaySerenity Inn stands out in the competitive Tucson hospitality market through our innovative approach to guest engagement and satisfaction. We leverage cutting-edge technology to enhance the guest experience, from mobile check-in and digital room keys to personalized room settings that can be adjusted before arrival. Additionally, our strategic location offers easy access to local attractions, making us an ideal choice for guests looking to explore the best of Tucson. Our commitment to sustainability and eco-friendly practices also sets us apart, appealing to environmentally conscious travelers seeking a green lodging option. By focusing on these areas, we not only meet but exceed the expectations of our guests, securing a competitive edge in the market.

Our marketing plan, included below, details our products/services, pricing and promotions plan.

Products and Services

StaySerenity Inn offers a variety of services tailored to meet the needs of every guest, ensuring a comfortable and memorable stay. The Inn prides itself on providing exceptional accommodation, dining experiences, and a comprehensive range of guest services and amenities aimed at enhancing the overall experience of its visitors.

Accommodation Services: Guests can expect to find a wide range of room and suite options designed to cater to diverse preferences and budgets. From standard rooms to luxurious suites, each space is meticulously furnished and equipped with modern amenities. Prices for accommodation services vary depending on the type and season but generally start at around $120 per night for a standard room, offering comfort and value to both leisure and business travelers.

Dining and Catering: The Inn features an on-site restaurant that serves a variety of gourmet dishes prepared with fresh, local ingredients. Guests can enjoy breakfast, lunch, and dinner in a cozy and elegant setting. For those who prefer dining in the comfort of their own room, room service is also available. The average price for a main course at the restaurant is approximately $25. Additionally, catering services for events and meetings are available upon request, with prices varying based on the menu and number of guests.

Concierge and Guest Services: StaySerenity Inn’s concierge team is dedicated to ensuring guests have a delightful and hassle-free stay. Services include booking tours and excursions, making restaurant reservations, arranging transportation, and more. While many of these services are complimentary, some, like guided tours and special event tickets, are available at an additional cost, depending on the activity.

Housekeeping and Maintenance: The Inn maintains the highest standards of cleanliness and comfort in all guest rooms and public areas. Daily housekeeping services are included in the room rate, ensuring that rooms are fresh and tidy. Maintenance issues are addressed promptly to ensure that all facilities are in perfect working order, contributing to a seamless guest experience.

Recreational and Wellness Facilities: For guests looking to relax and rejuvenate, StaySerenity Inn offers an array of recreational and wellness facilities, including a fitness center, outdoor pool, and spa. Access to the fitness center and pool is complimentary for all guests, while spa services, such as massages and treatments, are available for an additional fee, typically starting at $50 depending on the service.

At StaySerenity Inn, guests can expect a harmonious blend of comfort, luxury, and attentive service, all designed to make their stay in Tucson as enjoyable and relaxing as possible.

Promotions Plan

To attract customers, StaySerenity Inn employs a multifaceted approach to promotion, leveraging the power of online marketing while incorporating traditional and innovative tactics to ensure visibility and appeal. Understanding the importance of digital presence, StaySerenity Inn invests in a robust online marketing strategy. This includes a user-friendly website showcasing the hotel’s amenities, rooms, and services with high-quality images and virtual tours, allowing potential guests to experience the comfort and serenity of the hotel before they book. Social media platforms play a crucial role in this strategy, with regular posts highlighting special offers, guest reviews, and events at the hotel, engaging directly with a broad audience.

Email marketing campaigns are another essential component, targeting past guests and potential customers with personalized offers, updates, and newsletters, keeping StaySerenity Inn top of mind. Search Engine Optimization (SEO) ensures that when potential guests search for accommodations in Tucson, AZ, StaySerenity Inn appears among the top results, increasing its visibility and attracting more traffic to its website. Pay-per-click (PPC) advertising also amplifies this effect, targeting specific demographics and interests to drive bookings.

Beyond online marketing, StaySerenity Inn engages in local community events and partnerships with local businesses to build relationships and enhance its reputation. Hosting and sponsoring local events not only showcases the hotel’s commitment to the community but also provides direct exposure to potential guests. Collaborations with local attractions, restaurants, and businesses offer guests unique packages and experiences, making StaySerenity Inn a preferred choice for those looking to explore Tucson.

Furthermore, StaySerenity Inn implements a referral program, encouraging satisfied guests to refer friends and family with incentives, such as discounts on future stays. This word-of-mouth promotion is invaluable, building a loyal customer base and generating positive buzz around the hotel.

Lastly, StaySerenity Inn recognizes the importance of professional networking and will maintain a presence in local and regional hospitality associations, attending trade shows and networking events to forge connections within the industry, learn from peers, and stay ahead of trends that can enhance the guest experience.

Through these comprehensive promotional methods and tactics, StaySerenity Inn expects to not only attract customers but also create memorable experiences that encourage repeat visits and build a strong, loyal customer base in Tucson, AZ.

Our Operations Plan details:

• The key day-to-day processes that our business performs to serve our customers
• The key business milestones that our company expects to accomplish as we grow

Key Operational Processes

To ensure the success of StaySerenity Inn, there are several key day-to-day operational processes that we will perform.

• Check-in and Check-out Procedures: Efficiently manage guest check-ins and check-outs to minimize wait times and ensure a smooth process for guests. This includes preparing key cards, processing payments, and providing guests with all necessary information about their stay.
• Room Cleaning and Maintenance: Ensure that all rooms are thoroughly cleaned, sanitized, and ready for new guests by a specific time each day. This also involves regular maintenance checks to fix any issues such as plumbing problems, electrical faults, or general wear and tear.
• Customer Service: Provide excellent customer service at all times, including handling guest inquiries, complaints, and requests promptly and professionally. This also involves offering concierge services to help guests with restaurant reservations, directions, and recommendations for local attractions.
• Inventory Management: Regularly check and restock supplies such as toiletries, linens, and minibar items to ensure that everything guests might need is always available. This also includes managing inventory for the hotel’s restaurant or cafe if applicable.
• Food and Beverage Services: If the hotel has its own dining facilities, manage the operations of these services, including meal preparation, service quality, and hygiene standards. This also involves menu planning and ensuring that dietary requirements can be catered to.
• Financial Management: Monitor daily revenues and expenses to keep track of the hotel’s financial health. This includes processing payments, managing invoices, and preparing financial reports.
• Marketing and Promotions: Implement ongoing marketing strategies to attract new guests and encourage repeat business. This can include managing the hotel’s online presence, offering special promotions, and maintaining loyalty programs.
• Staff Management: Schedule and manage staff to ensure that all areas of the hotel are adequately covered. This involves training employees, managing shifts, and ensuring that the team works well together to provide the best possible service to guests.
• Health and Safety Compliance: Ensure that the hotel complies with all local health and safety regulations to provide a safe environment for guests and staff. This includes regular safety drills, food safety checks, and ensuring that all safety equipment is in place and working properly.
• Feedback Collection and Analysis: Collect feedback from guests through various channels such as comment cards, online reviews, and direct feedback to staff. Analyze this feedback to identify areas for improvement and implement changes where necessary.

StaySerenity Inn expects to complete the following milestones in the coming months in order to ensure its success:

• Identifying and Securing a Prime Location : Finding a location that is both appealing to potential guests and financially viable is crucial. This should be in proximity to local attractions, business centers, or natural beauty spots to attract a wide range of customers.
• Obtaining Necessary Permits and Licenses : Ensuring compliance with local regulations by obtaining all necessary permits and licenses for operation. This includes health and safety inspections, building codes, and any specific hospitality industry regulations in Tucson, AZ.
• Building and Furnishing the Hotel : Completing the construction or renovation of the hotel premises to meet the brand standards of StaySerenity Inn. This includes interior design and furnishing that align with the target market’s expectations and the brand’s image.
• Hiring and Training Staff : Recruiting a team of professionals who are committed to providing excellent customer service. This involves hiring for various positions including management, front desk, housekeeping, and any other roles necessary for the operation. Training is essential to ensure the team delivers service that meets the brand’s standards.
• Marketing and Promotional Activities : Implementing an effective marketing strategy to build brand awareness and attract guests. This includes digital marketing efforts, local advertising, partnerships with local businesses, and creating attractive packages or promotions.
• Launch Our Hotel : Officially opening StaySerenity Inn to the public. This milestone may include a soft launch period to gather initial feedback and make adjustments before the grand opening.
• Build a Strong Online Presence and Reputation Management : Developing a robust online presence through a user-friendly website, social media platforms, and listings on hotel booking sites. Actively managing online reviews and customer feedback to maintain a positive reputation.
• Achieve Operational Excellence : Streamlining operations to ensure guest satisfaction, efficient use of resources, and effective management of operational costs. This includes continuous training for staff, maintaining high standards of cleanliness and safety, and implementing eco-friendly practices.
• Get to $15,000/Month in Revenue : Reaching the financial milestone of generating $15,000 in monthly revenue. This will involve continuously analyzing performance, adjusting pricing strategies, and enhancing marketing efforts to increase occupancy rates and average daily rates.
• Establish Partnerships with Local Businesses and Attractions : Creating partnerships with local businesses, tour operators, and attractions to offer guests unique experiences and packages. This will not only enhance the guest experience but also contribute to increasing the hotel’s visibility and attractiveness. By achieving these milestones, StaySerenity Inn can mitigate risks and build a solid foundation for long-term success in Tucson, AZ.

StaySerenity Inn management team, which includes the following members, has the experience and expertise to successfully execute on our business plan:

Carter Mitchell, CEO

Carter Mitchell brings a wealth of experience and a proven track record to the role of CEO at StaySerenity Inn. With a history of noteworthy success in the hospitality industry, his leadership is rooted in practical experience, having previously managed a hotel with distinction. This background has afforded him a deep understanding of what it takes to run a successful lodging establishment, from operational efficiency to exceptional customer service. Mitchell’s strategic thinking, combined with his hands-on experience, positions him uniquely to propel StaySerenity Inn towards lasting success. His leadership skills and industry knowledge are critical in ensuring that the Inn not only meets but exceeds the expectations of its guests.

To reach our growth goals, StaySerenity Inn requires significant funding. This investment will be allocated towards securing our location, completing necessary renovations and furnishings in line with our brand vision, and covering operational costs until we reach our revenue targets. Our financial strategy is designed to ensure that we effectively manage our resources to establish a solid foundation for profitability and long-term success.

Financial Statements

Balance sheet.

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Income Statement

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Cash Flow Statement

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Hotel Business Plan Example PDF

Download our Hotel Business Plan PDF here. This is a free hotel business plan example to help you get started on your own hotel plan.  

How to Finish Your Hotel Business Plan in 1 Day!

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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

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• The hotel business plan and why it’s important

If you intend to own and operate a hotel, the one thing you must have in place is a solid, actionable, and realistic business plan.

Not only will this be useful to you when you want to attract investors and partners or when you need to obtain funding, but it can be the perfect roadmap to help you achieve your business goals and not get distracted along the way.

With a solid hotel business plan, you’ll be able to make important decisions more easily, and you’ll know whether you’re on the right track or you need to make changes in how you’re working.

With all this in mind, hotel business planning is crucial. Read on to find out how to get started on your hotel business plan to succeed in the hospitality and tourism industry.

Defining your hotel business plan

There are several key steps to consider to build a solid business plan for a hotel, including the following.

Understanding the purpose of your business plan

Studies indicate that having a well-crafted business plan can help your organization grow up to 30% quicker   and safeguard against potential risks, so it’s certainly something you’ll need to be able to do if you’re planning on running a hotel and getting into hotel management .

Take your time over your hotel business plan and think things through, but keep in mind that this document is not set in stone and you can make changes if necessary.

Many in the hotel industry find that they need to continuously adapt their business plans to reflect the changing needs of clients and the economy.

One element to include in your plan is an assessment of the risks and challenges of owning a hotel. If you can include these, it will show that you have researched the potential issues that you might come across during your career in hospitality  and that you have safeguards in place.

Identifying your target market

You’ll need to carry out thorough market research to determine exactly who your target market is – ie. your typical hotel guest. This can be something you do yourself, for example by sending out surveys or using social media. Or it could be a project you outsource to experts.

Although this latter idea will cost more, it could be useful when you need precise information for a hospitality business .

A degree in hospitality  can help you understand what your target demographic wants from a hotel, and if you can provide it for them, and account for this in your hotel business plan, you’ll have much stronger evidence as to why your hotel business model is going to succeed.

Once you know who is most likely to want to stay in your hotel, including their age, background, career, gender, and as much other information as you can find, you’ll be able to craft a marketing plan that speaks directly to these people, helping them make a decision that goes in your favor when they need somewhere to stay.

Conducting a SWOT analysis

Carrying out a SWOT analysis is a crucial task that will help you understand a business in greater detail. Once you have the information gathered from this analysis, you’ll know which areas you need to work on and improve, and where you excel and therefore stand out from the competition. Your USP could be developed from this.

A SWOT analysis considers your strengths, weaknesses, opportunities, and threats (hence the acronym). You must honestly appraise each of these elements as you work through them.

You’ll be able to see if your hotel development opportunities  will work or whether you might need to change how you are approaching something.

If you can include your SWOT analysis results in your hotel business plan, lenders and investors will be able to see that you have thought about every outcome of what you intend to do, and you’ll know precisely which route to take when it comes to moving forward.

Setting clear goals and objectives

With clear objectives in place, you’ll have clear goals to work towards. This will help to keep you and your team motivated, and it will steer you in the right direction at all times.

As for external lenders who might need information about where you see your hotel business going, these goals will show that you have a considered plan.

Combined with your SWOT analysis, this should be a solid foundation on which to build a business.

Developing your hotel business plan

Now that you have a better understanding of what goes into a hotel business plan, you’ll be ready to start writing one by incorporating the following.

Crafting a mission and vision statement

Mission and vision statements might seem at first to be the same thing, but they’re actually different.

The mission statement outlines everything your business is doing right now to reach its objectives. This will be just two or three sentences that talk about what your hotel business does, how it does it, and perhaps why it does it.

The vision statement is usually just one sentence that outlines the ambitions and ultimate goal of the hotel. The two might be linked, but they’re not the same.

Outlining your hotel business model

When writing your hotel business plan, there will be a variety of sections to include, such as these.

• An executive summary
• A business description and structure
• The services offered
• Your market research and marketing strategies linked to that SWOT analysis
• Your personnel, including management
• Financial plan and documents

Creating a marketing strategy

Your marketing strategy is at the core of how your hotel project is going to grow and be successful. As we’ve mentioned above, good market research will set you on the right path, as you’ll be able to tailor your advertising to those who are going to be interested in what you offer.

For example, if you advertise to customers who are looking for boutique hotels , you’ll need to ensure you emphasize the features that make it special.

Establishing a financial plan

Every business needs a robust financial plan. Your financial plan will give you information about where you are now and what you need in terms of profit to get where you want to go.

It will illustrate any savings you could make, and it will help you determine an accurate and profitable pricing model.

Structuring your management team

The “management” portion of a business plan provides details about the company’s leadership, personnel, resources, and ownership structure.

Management team members and their specific contributions to the company’s success should be detailed here.

Common mistakes to avoid when creating a hotel business plan

One of the biggest errors when it comes to your hotel business plan is not being realistic with your financial projections. Whether you hedge your bets or you’re too optimistic, seasoned lenders and investors will be able to tell if something isn’t right, and they won’t want to work with a hotelier who doesn’t understand their figures.

This is just one reason why attending hospitality school in Switzerland  – home to four of the world’s top five institutions – is a good idea, as you’ll learn how to understand business finances and how to create an accurate plan.

Another mistake is guessing rather than doing research. Your market analysis will give you important information that you can use to your advantage, and skipping this task because it’s time-consuming or difficult will only harm your business in the end.

Implementing and monitoring your hotel business plan

Once you have your hotel business plan in place, you should make sure that it is monitored and revised as needed.

Executing your hotel business plan

To execute your hotel business plan well, it has to be accurate – again, this is the most important thing to remember when you are writing each part of the plan. The hotel business plan should also be flexible to accommodate the ever-changing guest experience needs.

Although you’ll want to follow the plan as much as you can, you need to be able to adapt it when necessary. Work through each step that you have identified in the order that it needs to be accomplished, and slowly but surely, your hotel business will emerge.

Tracking and analyzing your progress

You must take stock of your current situation and analyze your progress regularly. To do this, you will need to have goals in place.

These might be financial, for example, or they might relate to the number of staff or clients you have. Unless you have specific goals to work towards in a certain timeframe, progress could be challenging to track.

Making adjustments where necessary

With the right monitoring, you can make changes where necessary and adapt your plan to ensure modifications are taken into account before you move too far from the correct path.

If a business owner is too fixated on sticking to their original plan, business growth could become stagnant.

If you want to run a hotel business, a hotel business plan is essential and should be the first task you undertake, especially if you want to obtain funding or find investors.

Start with your mission statement and vision statement, and keep these in mind as you work through the other important sections of the business plan. This will help you to stay focused and keep the ultimate goal in sight.

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How to write a business plan for your hospitality venue (that works)

The ultimate guide on how to write a successful business plan for your hospitality venue. Includes tips and insights from real businesses!

At the start of any business venture, there needs to be a plan for how it will move forward. A business plan is necessary for you to determine whether the investment will be successful or not, and it serves as a road map for developing your hospitality business.

It helps you focus on the goals you set forth while establishing your business. If you are looking for investors, a business plan proves to them that you have done your homework and have a realistic idea of how to make your business successful. 

It’s also one of the first steps to the growth. But what exactly should a business plan include? Here are some of the areas it needs to cover.

Pinpoint your business identity

There are several types of hospitality businesses out there, so establishing the identity of your business is really important. It also sets the scene and will help with your plan and goals moving forward.

Are you a popup food truck? A quick service restaurant? An upscale hotel? A cafe? A bar? All of these hospitality businesses are different and will all have different identities. Keep the concept simple, think about how you would introduce your business to a stranger and if they would understand it. Once you know this, building on the rest of your business plan becomes easier. 

Know your vision and mission 

Your business plan needs to contain the vision that you have for your hospitality venture. This will help with structuring your goals and business purpose, it's your big picture outcome. It's ok if this changes because at the start it can be challenging to predict what your business will look like ten years from now.  In your vision statement, you need to hype your ambitions such as “Our vision is to run the best fine dining restaurant in Washington D.C.” The mission comes next, stating what you intend to do with your business, i.e., “Our mission is to offer excellent and reliable service to all our customers. We shall strive to always be ahead of our competitors by offering high-quality food and beverages while ensuring a high level of customer service and professionalism." 

Identify your business structure

Here, you need to explain the business structure that you’ll use and why you chose this particular model. The success of the business largely depends on this. Get a specialist to advise you on which structure best suits your business .

There are various models, so it’s crucial to get this part right. An experienced adviser has seen numerous business structures and may offer a perspective that you didn't think of - it could set you apart from your competitors. You’ll also need to explain the positions in your business and the role that each plays. Some of the positions you should include are:

• Chief executive officer
• Business partners/investors
• Human resources manager
• Bartenders/Waiters
• Front desk operators
• Security guards

Depending on your business structure, some of these roles may not suit, so you’ll need to research which ones best work for your business.

Have a clear budget and finance plan

You will need an accountant or business adviser to guide you through this step. It includes coming up with a financial plan and budget that will start the business, for example where you expect to raise funds from and the allocation to each sector of the company. It’s also important to know the number of employees that you’ll need and their salaries. Other key costs will include the property (is it new/existing? what are the lease costs?), equipment/tools, your suppliers, and utilities.

Writing a plan helps you to determine whether your hospitality business is financially viable . You will need to include projections of how much money you will make - this is crucial, especially if you’re showing it to potential investors. In the end,  there should be a total figure of how much it will cost you to start and maintain the business.

Identify your services and amenities

The services and amenities that you provide will determine your clientele and customers. Their quality will justify the amount you charge the customers. All those that visit should experience exceptional customer service. If a customer has a memorable experience at your place, they will, in turn, recommend it to friends and family adding to the growth of the business. Depending on your hospitality business, here are some services and amenities to consider:

• Quality food and beverage menu that caters to your customers
• Fitness center/swimming pool
• Conference room
• Transport service
• Outdoor/indoor dining area
• Wifi access

Determine price points and payment options

The price you set should be competitive and match your rivals. If you offer customized or premium services, identify firstly if it’s feasible as guests will pay more, and this will need to be justified. Setting your price points will require significant research from you, especially if the product or services you’re offering are uncommon for consumers.  Offers and discounts to customers can also be used, so long as research is done prior to its effect on your profitability and finance plan. Overall, knowing your price points will help you not to overcharge or undercharge your clients and customers.

Once you’ve identified this, you’ll need to indicate the payment options acceptable in your venue. Some people prefer to pay cash, others via check, cards, mobile money transfer, or bank transfer. Your payment options should cater to all of them.

Research your target market

Who do you intend to target with your hospitality business? Whether it is for specific clients or the general public, your services need to be inclusive. You will need to conduct a feasibility study and some research to determine the type of customers best suited for your business.

Knowing your audience, for example, what they do for a living, and their age will help you in setting up a business that will appeal to them. The neighborhood and location will also play a significant role in the type of customers that you’ll attract. Space, human traffic, parking, and security also need to be considered when identifying your target audience and the location of your business.

Create a marketing strategy

Your marketing strategy will depend on your target audience. The type of strategies that you employ will be useful if they attract the right people. Here are some marketing strategies to consider:

• Advertising online through social media channels
• Advertising on television, radio and/or print
• Employing competent people
• Improving performance and services to warrant referrals
• Creating partnerships with relevant stakeholders
• Having a loyalty program to reward clients

Research the economic conditions of the area that you intend to start your hospitality venture in and the general industry. Identify what marketing strategies have historically been successful and resonate with your target audience. Know who your competitors are, get feedback from your customers and industry experts - all of this information will help in executing the right marketing strategy.

Your business plan will determine your success. The location, pricing, amenities, and services that you offer should be impeccable if you wish to create a community of loyal customers. A large part of this will entail the level of customer service that your clients experience. You will need to come up with a strategy that will put you above your competitors making your hospitality venue the go-to place for every person.

Learn more about business management and start your Typsy hospitality training now on   Improving hospitality business operations   with Eden Sunshine.  

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Best Hospitality Business Ideas & Examples in 2023

Hospitality is a vast and dynamic industry that is constantly evolving. In the modern world, there is an increasing demand for unique and memorable experiences, and this has created a plethora of opportunities for aspiring entrepreneurs to start their own hospitality businesses. Whether you are looking to open a bed and breakfast, a restaurant, or a luxury resort, there are endless possibilities for you to explore. In this article, we will showcase some of the best hospitality business ideas and examples for 2023, to help inspire and guide you on your entrepreneurial journey.

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• How to Form an LLC in Your State
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List of Unique Hospitality Business Ideas:

Valet parking.

Ever dreamed of running your own business, one that's both lucrative and offers a service people genuinely appreciate? Well, buckle up, because we're about to guide you step-by-step on how to start a profitable valet parking business – a venture that combines the thrill of entrepreneurship with the satisfaction of solving a real-world problem.

Ever dreamt of combining your passion for sports with a lucrative business venture? Let's dive into the exciting, adrenaline-pumping world of sports bars and discover how you can turn your love for the game into a profitable business.

Ever dreamed of mixing cocktails while traveling to different events, meeting new people, and making a good income? Welcome to the world of mobile bar businesses, where we'll guide you step-by-step on how to turn this dream into a profitable reality!

Ever dreamt of owning a cozy little motel, the kind that lights up the highway and welcomes weary travelers with open arms? Buckle up, because we're about to embark on a journey that will guide you step by step on how to transform that dream into a profitable reality.

Ever dreamt of turning your love for exotic flavors and social gatherings into a profitable venture? Welcome to the exciting world of hookah bar business, where we'll guide you step-by-step on how to create a buzzing hotspot that not only satisfies your customers' cravings but also fills your pockets!

country club

Ever dreamt of running a successful country club, where the clink of golf clubs meets the laughter of satisfied members? Buckle up, as we're about to embark on a journey to turn that dream into a profitable reality, one step at a time.

banquet hall rental

Ever dreamed of owning a bustling venue where joyous celebrations and memorable events are a daily occurrence? Buckle up, because we're about to guide you on an exciting journey to start your own profitable banquet hall rental business, transforming those dreams into a reality.

Ever dreamt of mixing up cocktails and running your own show while raking in the profits? Dive into this guide and discover how to turn that dream into a reality by launching your very own profitable bartending business.

bed breakfast

Ever dreamt of owning a charming bed and breakfast, nestled in the heart of a quaint town or bustling city, where you can meet fascinating people from all walks of life? Let's turn that dream into a profitable reality, as we guide you through the exciting journey of starting your own successful B&B business.

Imagine hitting the open road in your RV, not just for a vacation, but to check on your very own profitable business. In this article, we're going to guide you through the exciting journey of turning your love for outdoor adventure into a lucrative RV park business.

wine tour bus

Ever dreamt of combining your love for wine and entrepreneurship into one profitable venture? Welcome aboard, as we uncork the secrets to starting your very own successful wine tour bus business, blending passion, profit, and pleasure in one smooth journey.

travel agency

Ever dreamt of turning your passion for travel into a thriving business? Dive into this article and discover how you can launch a profitable travel agency, making money while helping others explore the wonders of the world!

Ever dreamt of turning your love for the great outdoors into a profitable venture? Buckle up, adventure-seeker, as we guide you through the thrilling journey of starting your very own profitable campground business.

What business can I start in the hospitality industry?

There are many different types of businesses that you could start in the hospitality industry, depending on your interests, skills, and resources. Some ideas for hospitality businesses could include:

• A hotel or bed and breakfast: You could start a business that provides overnight accommodation and related services to travelers.
• A restaurant or café: You could start a business that serves food and drinks to customers.
• A bar or nightclub: You could start a business that serves alcoholic beverages and provides entertainment to patrons.
• A tour company: You could start a business that organizes and leads tours or activities for travelers.
• A catering company: You could start a business that provides food and event services for special occasions such as weddings, parties, and corporate events.

There are many other options as well. The key is to find a hospitality business that aligns with your passions and skills, and that meets the needs of your target market.

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How do small, independent motels stay in business?

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National chains like Best Western and Motel 6 loom large over highways across the country.

Most hotels are franchised out these days, but as of 2022 about a third of hotels were completely independent , according to the market data company STR.

Motel operators are feeling the sting of inflation, just like any other business owner. Expenses are rising while travelers cut back on discretionary spending. The occupancy rate for economy hotels was down 3.4% annually during the first five months of 2024, the travel industry site Skift reported. 

But despite these challenges, motel owners tend to succeed when their property is located in a prime location with little competition and they receive help from their community. They’re also strict on operational expenses like staffing and amenities, which helps keep costs down, and attract customers with affordable rates. 

Without any prior motel experience, Joel Gunnlaugsson and his wife purchased The Townliner Motel from his uncles for about $435,000 back in 2015. 

“We didn’t know jack squat about it, but the opportunity was right. We were young enough and we jumped in,” Gunnlaugsson. 

The motel sits on Washington Island, Wisconsin, where only about 1,000 people live year-round. But during the summer months, up to 5,000 people visit the island’s beaches, parks and museums, Gunnlaugsson said. The Townliner Motel is within walking distance.

“We got a great location because people can just park their car and walk down the street and enjoy dinner and have a cocktail, go to a coffee shop, go to a few gift shops,” said Gunnlaugsson, who’s also captain of the Washington Island Ferry Line. 

Location is key to a motel’s success. They’re often located off highways, near tourist attractions or in rural areas with little lodging, said Makarand Mody, an associate professor of hospitality marketing at Boston University.

They’re also cheaper than the comopetition. The Townliner charges $95 a night for one person and $109 for double occupancy. A one-night stay at an Airbnb on Washington Island can cost more than quadruple that, while listings on Expedia show that lodging near the island costs between $250 and $330 per night.

Many successful motel owners receive support from their community. Gunnlaugsson has lived in the area his entire life, and his uncles, the prior owners, built a customer base over decades. Gunnlaugsson said strong word-of-mouth and help from his network have grown the business 35%.

Community ties have especially helped one specific group thrive in the motel industry since the 1940s : Indian Americans.

In his 2012 book “Life Behind the Lobby,” Pawan Dhingra found Indian Americans owned half of motels in the U.S. As of January 2022, Asian American Hotel Owners Association members owned 59% of independent hotels in the U.S., or more than 13,000 properties, said Kamalesh Patel, vice chairman of the AAHOA.

“Everything I’ve learned from the industry is not from books and schools. It’s all hands-on through watching my parents run properties, watching my aunts and uncles run properties,” Patel said. 

Family often gives budding hoteliers practical tips for building the business.

“Where to buy these carpets, where to do this, where to do that – all that stuff makes a difference,” Dhingra said. 

And if you have loved ones in the same industry, they’re more likely to lend you money because they have reason to believe that money will be used for a good reason, Dhingra added.  

Big hotel chains benefit from economies of scale that independent operators struggle to match, Patel said. 

“Brand XYZ can say, ‘Hey, we have 3,000 properties. We’ll only buy XYZ from you, but you need to give our hoteliers better pricing,’” Patel said. 

The AAHOA and other trade groups help members secure better prices for supplies and amenities, like Wi-Fi, and provide networking opportunities through conferences. 

“One of the beautiful things about our community, even though we may not always agree on certain things, is we make sure we’re successful,” Patel said. 

Family can also help indie hotels save on labor costs, Mody said. Gunnlaugsson said his wife Krista largely runs the motel by herself, although they usually hire help during the summer.  

The lodging industry in general struggles with labor shortages, and owners have to pay more competitive rates to attract new recruits, said Iuliana Theis, an assistant professor of hospitality business management at the University of Delaware. Especially because many left the industry for good after pandemic layoffs.

Before the pandemic, leisure and hospitality workers earned less than $15 an hour on average Now they make they make almost $20 , according to Labor Department data.

While running an independent motel has its upsides, the Townliner Motel can struggle during the winter when there are fewer customers. For Gunnlaugsson, the cost of electricity averages about $500 a month, while internet, phone service and TV expenses amount to about $200 a month. Other big costs include their monthly mortgage bill, which is about $4,000. 

And motel owners are feeling the pinch of inflation and tariffs. Patel said average expenses for motel essentials like sheets and pillows have gone up roughly 30%, while Gunnlaugsson said the price of those items have increased by 15-20%. 

“We’ve had to, unfortunately, reflect those operational expenses in our rates,” Gunnlaugsson said. 

Hotels aren’t immune to skyrocketing insurance costs, driven by climate change and extreme weather. Before the COVID-19 pandemic, Patel said insuring his 30-unit property in Santa Cruz cost about $25,000 a year. Now he pays between $60,000 to $65,000. 

Small, independent motels could expect about a 30% profit margin before COVID-19, Patel said. Now it’s in the high teens. 

Even with increased costs, though, motel owners still find a way to thrive. 

At the Townliner Motel, Gunnlaugsson said he’s pulling in more than $130,000 a year, with profit margins around 15% to 20%. For now, the couple is reinvesting any profits into improvements  like a new roof, new sidewalks and a new parking lot. 

These motels may lack the name recognition and large marketing budget of their branded counterparts. But what the owners do have is “pride of ownership,” Patel said. 

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