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From idea to execution: 10 sections to include in your hotel business plan
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By Lana Cook
Do you love connecting with people from all over the world who share your passion for travel? Don’t want to work a typical 9-5 job and instead want to build a business where every day is different, and you own your schedule?
Opening a hotel business is a dream many entrepreneurs have, but it can be a daunting venture to start. A hotel business plan is a critical first step for business owners to turn their dreams into reality. A strategic plan allows one to study the hotel industry, identify their hotel’s unique point of view, and outline how exactly they will reach their goals.
Read on to learn more about the 10 sections to include in your hotel business plan, tips for creating an effective plan, and key things you need to start your new hotel business.
What is a hotel business plan?
A hotel business plan is a detailed document that identifies your business’s goals, objectives, and strategies for success. It includes market research and a roadmap for building and operating your business.
Why do you 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:
- Helps you identify whether you have a viable business idea
- Provides a detailed roadmap on what you need to accomplish and why
- Gives potential investors insight into your business idea and confidence that you can be successful
- Keeps you on track as you start to execute the different tactics outlined in your plan
- Identifies critical milestones for you and your team to reach
Your plan does not have to be static and should change over time as your business grows and evolves. Your first draft is a starting point to help guide your strategy and instill confidence in potential investors.
10 sections to include in your hotel business plan
Whether you’re starting a small boutique hotel, a cozy B&B, or a 5-star resort, you will need to address the following sections in your hotel business plan.
1. Executive summary
An executive summary is the most essential part of your business plan. It should concisely explain the purpose of your business and why it will be a success.
Include your mission statement explaining why your hotel exists and its overall goal. For example, Capella Hotels & Resorts ’ mission is to combine tradition, discovery, individuality, and twist of the unexpected to create the perfect stay for each guest.
You should also include your vision statement that clearly describes your hotel’s purpose for being in a single sentence. For Capella Hotels, its vision is to embody excellence in the craft of hospitality.
We recommend writing your executive summary as the final stage, as it should summarize the goals and objectives laid out in your plan.
2. Company analysis
Your company analysis is where you can dive into your hotel’s competitive advantage. Ask yourself what makes your hotel unique. Why would guests want to stay with you instead of your competitors?
In this section, identify your brand’s identity and the goals and objectives you want to accomplish. Outline how many rooms and room categories your property will have. For example, will you offer a hybrid hospitality model with dorms, single rooms, and suites? Explain what ancillary revenue sources you’ll offer, like in-room food and beverage options, welcome drinks, or airport shuttles.
Use storytelling to communicate your excitement and passion and make it clear what your hotel will bring to the hospitality industry that hasn’t been done before.
3. Industry analysis
As a business owner, you must be prepared for forces outside your control. You will need to conduct a market analysis that looks at the hospitality industry to identify micro and macro trends that may impact your business. Look at:
- Economic trends
- Environmental trends
- Political trends
- Global health trend
- Technology trends
For each trend, identify how it will impact your business and ways to mitigate risk or take advantage of opportunities.
For example, digital check-in technology has increased across the hotel industry with the rise of tech-savvy guests, new innovative software providers in the market, and labor challenges. Therefore, you should consider what guest engagement solutions you’ll include at your hotel.
In addition to trends, look at the history of the hospitality industry, its current size, and how it’s expected to grow in the short and long term. This research will impact the rest of your plan, especially your marketing and finances.
4. Customer analysis
What type of hotel guests do you want to attract? It’s impossible to please every kind of guest, which is why it’s important to identify your target market . Once you know who you want to stay at your property, you can develop amenities, services, and marketing materials to attract these guests and deliver exceptional experiences.
- What type of guests do I want? Business or leisure travelers?
- What demographics? Age, gender, marital status, etc.
- What are my target market’s interests? Water sports, hiking, relaxation, museums, animals, etc.
- What does my target market value? Sustainability, contactless technology, personalized service, localized experiences, etc.
This section will help you formulate the guest experience to ensure that expectations meet reality .
5. Competitive analysis
The competition you face will vary depending on where your hotel is located. This section is where you should conduct in-depth competitor research to understand how your hotel will compare. Identify who your five major competitors are — ideally, three direct competitors who you will be competing with upon opening and two aspirational competitors that you can emulate as you grow your business.
Conduct a SWOT analysis based on your competitors to look at:
- Strengths – where does your property excel in comparison to competitors? Why would travelers pick you? Price, amenities, location, technology, etc.
- Weaknesses – where does your property fall short in comparison to competitors? Price, amenities, location, technology, etc.
- Opportunities – what industry trends can you take advantage of? What local events or partnerships can you capitalize on?
- Threats – what are the biggest threats facing your property? War, travel restrictions, recession, etc.
A thorough analysis can help solidify your competitive advantage and develop a contingency plan for how you will deal with your weaknesses and threats.
6. Marketing plan
Without demand, there is no business. A hotel marketing plan outlines the channels you’ll use to reach your target audience to drive bookings. Your marketing strategy should include 3 key channels:
1) Paid media — paid advertising to promote your property and drive bookings. This includes online travel agencies (OTAs) , search engine marketing (SEM) , retargeting, and metasearch advertising .
2) Owned media — content you create, like your hotel website , social media channels , blog posts, and SEO .
3) Earned media — user-generated content created by third parties like media coverage or online reviews.
7. Operations plan
How do you plan to run your day-to-day operations? This section of your plan will outline all of the key tasks and responsibilities of your team and what exactly your hotel will offer. Consider:
- The number of staff and supervisors required
- Job descriptions and responsibilities
- Your service standards (check out our downloadable SOPs for some inspiration)
- How you’ll manage your inventory
- What hotel technology solution(s) will you need? PMS, channel manager, booking engine, payment terminal, revenue management tools, guest engagement software, etc.
- What services and amenities do you want to offer?
Detail your short and long-term operational plans and the stakeholders involved for each area.
8. Management team
Whether or not you’ve hired your team yet, this section is one of the most important sections that potential investors will look at. Make sure to outline the key personnel you will require and their roles.
In general, these are the following roles you’ll want to outline:
- Hotel management (general manager, front office manager, housekeeping manager, maintenance manager, revenue manager)
- Hotel sales team
- Housekeeping staff
- Front office staff
Depending on the size of your hotel, your team will vary. Identify what team members you will need to open and your hiring plans over the next five years.
9. Strategic plan
Hoteliers must be strategic in optimizing occupancy rates across seasons to maintain revenue. As part of your strategic plan, identify how you will manage:
- Pricing – what room types will you offer, and how will the pricing vary?
- How will you maintain consistent occupancy throughout the high and low seasons? Will you adapt your pricing and marketing strategies?
- How will you conduct revenue management ? What type of rules/alerts will you use to adjust rates? Will you use technology to help with revenue management ?
- What will your online reputation management strategy be? How will you collect and respond to online reviews?
- What will your distribution mix look like? How will you drive reservations across a variety of channels?
10. Financial plan
Your financial projections are the most challenging but arguably the most important part of your hotel business plan. In this section, you should include the following:
- Start-up costs – how much money will you need from lenders to operate your hotel? Consider business licenses, furniture, down payments, etc.
- Operating costs – how much money will you need to keep your business running? Consider staffing costs, guest acquisition costs , mortgage payments, utilities, SaaS payments, etc.
- Income statement – what will your revenue, expenses, and profit be over the first 3-5 years of business?
- Cash flow projections – how will cash flow in and out of your business? Show what capital investment you’ll need to start.
- Balance sheet – identify your assets, liabilities, and equity.
If you’re looking for a potential investor, your financial plan will be the section they care about most. Here you must prove how your business will provide a return on investment. Don’t forget to include an Appendix that shows more detailed reporting and financial figures.
8 tips for creating an effective plan
1. Start with the section that excites you the most! Covering all the topics outlined above can feel overwhelming, so don’t feel pressured to go in order.
2. Reach out to a business owner you admire. No matter what type of business you’re starting, it’s always helpful to get advice from another business owner. Reach out to a successful local business owner to see if they’d be willing to share some insights they learned along the way.
3. Be concise. While there’s a lot to cover, you must be concise in each section of your plan. Include any additional research or documentation in the appendix to keep your business plan clean.
4. Try to avoid industry jargon. Depending on what type of investor is reading your plan, they may find jargon irrelevant and distracting.
5. Ensure you have a clear competitive advantage. You should be able to state in one sentence what makes your property unique. This selling point will be prominent in all of your marketing materials.
6. Set SMART goals. Setting specific, measurable, achievable, relevant, and time-bound goals is important to stay organized and on track to reach milestones.
7. Don’t forget about your plan. You will have spent hours developing your plan, so make sure you use it! Reference your plan as you build and grow your business , and remember that it’s ok if things change.
8. Illustrate your passion. Communicate why you want to be a part of the hospitality industry. Passion is contagious and gives investors more confidence that you will work hard to achieve your dreams.
What do you need to start a hotel business?
Ok, so you’ve read through this article and are now wondering — what’s next? Ensure you have the following items on your radar to start your business.
- A vision. Know exactly what kind of business you want to build.
- A business plan. Stay on track with a well-developed business plan.
- A location. Decide if you want to build a new property or renovate an existing hotel.
- Capital. Do you need to raise an upfront capital investment? Remember that new businesses usually aren’t profitable for the first few years and will need cash flow to pay for expenses.
- Business licenses & permits. Depending on the type of property and its services, you’ll need an occupancy permit, alcohol license, food service license, sales tax license, etc.
- Technology. Choose a hospitality management platform that can help you scale your business.
- Furniture & equipment. You must furnish your property with the proper furniture, electronics, appliance, etc.
- Staff. Take time hiring staff you can trust and who understand your hotel’s brand and vision.
Your business plan provides the foundation for your new business and outlines the next steps in the journey. Ensure you fully understand the market and competitive landscape to enter the industry prepared for whatever is to come. Start slow and invest in the right people and technology to support the growth of your business.
About Lana Cook
Lana Cook is a Content Writer at Cloudbeds where she is able to combine her love of writing and passion for travel. She has spent the last few years writing about all things technology and the ways in which it can be used to help businesses thrive. When she’s not busy writing, you can find her checking out the latest movie or searching for a new TV show to binge.
Hotel business plan
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Hotel Business Plan
OK, so you have decided to realize your dream and open your own hotel . You have thought out an amazing concept delivering unparalleled guest service. The next step would be to write a hotel business plan. It’s like a road map to the opening. However, as a seasoned Hotel Management Company , we have seen that this is where most entrepreneurs get stuck.
Why? Many do not have the time and don’t know what to write or how to do the financials. But until you finish your business plan, you will not be able to get the financing either. So you end up with ideas sitting in your head not realizing your dream.
Really it is not that difficult to make a good hotel business plan. It is merely a structured summary of your idea. Most people try to include everything about their hotel concept in the plan. This leads to an indigestible super novel-like bookwork, aka a mess.
The key is, knowing what to include, and what not to include in your hotel business plan. Create a clear road map for success. Excite investors rather than bore them to death like most business plans full of redundant information do. And you need to lead readers down the exact path you want.
One of the main challenges for example is that after reading the first page most businesses often don’t fully understand what the hotel is all about. For investors and lenders, it is crucial they can quickly comprehend your plan, without reading the whole document.
Hotels 101: The Basics of Business Planning
We have put together a hotel business plan template to help you on your way. Check out our approach based on 10 critical points, being:
- Executive Summary
- Company Analysis
- Industry Analysis
- Customer Analysis
- Competitive Analysis
- Strategic Plan
- Operations Plan
- Management Team
- Financial Plan
- Key Milestones
Steps of your Hotel Business Plan
Let’s dive into the step-by-step checklist of what your hotel business plan should look like.
Infographic by Xotels
1. Executive Summary
This first part should consist of two main parts, being:
- Mission Statement (Introduction): a 1 line company description only the essence of your hotel (not 2 lines or a paragraph). It explains why you are in business or which huge need you are solving, that currently is not being met. For example in the case of Qbic Hotels “Moving modular hotels into under-utilized real-estate to reduce build-out cost and time.”
- Objectives : What do you hope to accomplish (i.e. “Reach an annual occupancy of 90%”).
2. Company Analysis
More detailed information on the USPs (unique selling points) of your hotel concept.
3. Industry Analysis
Information on the current industry trends and the current state of the market and how this will impact your hotel. This is needed as investors want to be sure you really understand the hotel industry. This acts as the foundation on which decisions such as trends and developments to follow will be based.
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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)
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.
Provide any other relevant information here. Don’t clutter the main sections of your hotel business plan with too many details. Rather support them with attachments in this part.
Putting Your Plan into Action
Many people have great business ideas. But that really doesn’t matter. The difference between dreamers and entrepreneurs is the action mindset. Are you ready to ship your idea to the market?
The first step is to put your ideas on paper. I hope this free sample will help you write a persuasive hotel business plan. Because no investor or lender will be interested if you cannot present a clear plan.
Follow your dreams and go for it!
Need help to Develop and Manage your Hotel Concept?
Our hotel consultants at XOTELS have helped hundreds of hotels to develop and optimize their businesses.
With cost-effective implementations and best practices developed over years of experience, successful business as a boutique hotel , resort, B&B, aparthotel, hostel, or any other lodging concept for that matter, is guaranteed.
Hope this template has helped you get inspired to start your own hotel business .
Best of luck in your endeavours!
PS. Get in touch with us if you need help developing and managing your hotel concept.
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Hotel Business Plan Template
Hotel business plan.
You’ve come to the right place to create your hotel business plan.
We have helped over 100,000 entrepreneurs and business owners create business plans and many have used them to start or grow their hotel companies.
Below is a template to help you create each section of your Hotel Business Plan:
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..
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
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.
Pegasus Hotel will be owned by Frank Girard and Miles Butler. They will act in an Owner capacity, and will not be involved in the day to day operations of the hotel. Frank and Miles will hire the appropriate staff to ensure Pegasus Hotel is a profitable and successful business.
Lorenzo Falucci, General Manager, has over twenty years of experience in the hotel industry. He has most recently managed another independent boutique hotel in New York and was excited to be recruited by Frank and Miles to operate the Pegasus Hotel.
Lorenzo will hire Lisa Montgomery as the Director of Sales and David Jimenez as the Assistant General Manager. Lorenzo, Lisa, and David will be the senior management team of Pegasus Hotel. They will oversee all other department managers – Maintenance, Housekeeping, Front Desk/Guest Relations, and Food and Beverage. Each department manager will oversee various employees in their respective department and role. The Pegasus Hotel will have a large and sophisticated operation as each department is integral in the success of the hotel.
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.
Pegasus Hotel is seeking $10,000,000 in debt financing to begin constructing the hotel and commence operations of the business. The funding will be dedicated towards securing the land lease and the hotel build-out and design. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff, furniture, fixtures, and equipment, initial inventory, and working capital. The breakout of the funding is below:
- Secure the land lot, architecture, build-out, and design: $6,000,000
- Hotel furniture, fixtures, and equipment: $2,000,000
- Initial inventory: $750,000
- Three months of overhead expenses (payroll, rent, utilities): $1,000,000
- Marketing & advertising: $150,000
- Working capital: $100,000
The following graph below outlines the pro forma financial projections for Pegasus Hotel.
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 standards of guest service. Pegasus Hotel is committed to providing the best guest experience possible while maintaining a profitable hotel. Pegasus Hotel aims to be a step above the rest and be an unforgettable experience for all who step foot into the hotel.
Pegasus Hotel History
Pegasus Hotel is owned by two local businessmen, Frank Girard and Miles Butler. Frank and Miles have been friends and business associates for over thirty years. They became friends in college while attending The University of Texas at Austin. Frank is a real estate developer specializing in commercial real estate and multi-use land projects. Miles is a software engineer who has built multitudes of software programs for various companies. They have both been extremely successful in their careers and want to divest their investments in a large-scale full-service hotel in Austin, Texas.
Since incorporation, Pegasus Hotel has achieved the following milestones:
- Acquired a 40-acre lot on the outskirts of Austin, Texas.
- Registered Pegasus Hotel, LLC to do business in the State of Texas.
- Hired a consultant to conduct a feasibility study for a full-service hotel in Austin.
- Began developing reservation and operational management software for use at the hotel.
- Began the branding image, logo, website, and social media accounts for the staffing agency.
- Applied for a liquor and mixed beverage permit with the Texas Alcoholic Beverage Commission.
- Hired an architect to begin the design phase of the hotel.
Pegasus Hotel Services
The following will be the services and amenities Pegasus Hotel will provide:
The hotel industry is expected to increase to a $133 billion in the next five years. The hospitality industry will benefit from increases in travel spending, corporate profit and general consumer spending.
As consumers earn higher incomes and businesses replenish their budgets, travel spending is projected to increase over the next five years. Inbound trips by non-US residents are anticipated to rise 22% over next the five years, while domestic travel is expected to grow 9% during the same period.
The industry will see particularly strong growth in extended-stay hotels, boutique hotels, spa and health retreats and resorts segments. As demand for these auxiliary services picks up, industry employment is anticipated to recover and increase over the next five years. Industry players are also expected to continue expanding abroad into emerging economies, such as Asia, Eastern Europe and South America. These foreign markets are expected to somewhat detract from domestic investment, as they offer higher growth prospects for industry operators.
Demographic profile of target market.
The precise demographics for Austin, Texas are:
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)
Direct and indirect competitors.
Pegasus Hotel will face competition from other companies with similar business profiles. A description of each competitor company is below.
Hotel Ella is a historic boutique hotel located in Austin, Texas. Located in downtown Austin and walking distance to the University of Texas campus, Hotel Ella is a stylish boutique hotel housed in the historic Goodall Wooten House, one of Austin’s original landmark estates. Constructed in 1900, the Greek revival-style mansion underwent an extensive renovation in 2013, and now offers the perfect balance between modernity and a rich history rooted in the fabric of the neighborhood and the university. Hotel Ella has 47 guest rooms, a cabana-lined pool, and a wrap-around veranda overlooking the front lawn. Hotel Ella features beautifully designed outdoor and indoor spaces perfectly suited for a vacation, wedding, or corporate event. The hotel also features a diverse collection of Texas Modernist works around the hotel grounds.
All guests of Hotel Ella are treated to warm southern hospitality and superior personalized service during their stay. The historic property is appointed with a variety of elegant 21st century amenities. Hotel Ella also offers the following amenities and guest services:
- Complimentary 24-hour guest services
- Complimentary high-speed wi-fi access
- Complimentary electric car charging station
- Complimentary morning newspapers available in the historic mansion
- Complimentary coffee stations from 5am – 11am
- Twice-daily housekeeping service
- Cabana-lined outdoor pool
- Fitness center
- Same-day valet laundry services
- In-room dining by Goodall’s
- Business services: photocopying, printing, postal services, and supplies
Hotel Ella also welcomes dogs of all sizes at no additional fee.
Kimber Modern 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.
Pegasus Hotel will be able to offer the following advantages over their competition:
Brand & value proposition.
Pegasus Hotel will offer the unique value proposition to its target 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.
The promotions strategy for Pegasus Hotel is as follows:
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.
Pegasus Hotel will invest in a strong SEO presence so that when someone enters “Austin boutique hotel” or “first class hotel near me” in their Google or Bing search bar, Pegasus Hotel is at the top of the list. Their website will feature photos of the guest rooms, meeting areas, pool, spa, fitness center, and restaurant/bar. Future guests will be able to make a reservation to book their future stay on the website and access contact information for either a Director of Sales or General Manager of the property.
Pegasus Hotel will request all requests for news stories regarding the development of the hotel, owner/developer information, opening dates, etc. By accommodating the press’ requests for stories, it will also be free advertising for the public to learn about the new up and coming luxury hotel.
Frank and Miles will invest in a billboard in downtown Austin where the mid to upper class of residents frequent. The hotel will be minimalistic but eye-catching. It will feature an attractive rendering of the hotel along with the website. Curious passersby will be directed to visit the hotel’s website for information.
Third Party Booking Websites
Once the hotel is nearing 60 days towards opening, all of the third party booking websites will feature Pegasus Hotel so that travelers visiting Austin will be able to see it listed as an option for Austin hotels.
Bridal Shows and Wedding Industry Events
Pegasus Hotel will have a table at all of Austin’s bridal shows and wedding industry events. It will attract those couples searching for a venue to accommodate their special day.
The pricing of Pegasus Hotel will be moderate and on par with competitors so customers feel they receive value when purchasing its guest rooms and services.
The following will be the operations plan for Pegasus Hotel.
- Frank and Miles will be the owners of the hotel and hire the appropriate staff to manage the hotel. Frank will act as CFO of the hotel and Miles will be in charge of the reservation system and operations software. Miles developed the software and will focus on making sure it’s always functional and efficient.
- General Manager will be hired to oversee the entire staff and operations of the hotel to include guest satisfaction, oversee vendor contracts, events, and making sure that each department is running effectively and efficiently.
- Assistant General Manager to assist the General Manager with overseeing the staff, with particular attention to guest satisfaction and front desk operations.
- Director of Sales will be hired to sell events, corporate accounts, and group bookings for the hotel.
- Maintenance Engineer will be hired to attend to all mechanical and plumbing issues that may arise.
- Executive Housekeeper will be hired to lead the team of housekeepers to make sure all areas of the hotel are being cleaned to Pegasus Hotel standards and that each guest is receiving all accommodations to their requested schedule.
Pegasus Hotel will have the following milestones completed in the next six months.
8/1/202X – Purchase land lot and break ground on new hotel.
8/15/202X – Finalize architectural renderings and hire a General Contractor to build the hotel.
9/1/202X – Finalize contract with advertising company for them to design the branding image of the hotel, logo, website, billboard, and social media accounts.
9/15/202X – Begin social media and website advertising campaign. Billboard with a teaser of ‘Coming Soon’ will go up in downtown Austin.
10/5/202X – Hire General Manager and Director of Sales.
10/15/202X – Attend annual Wedding Industry Event with a table to begin advertising Pegasus Hotel.
11/1/202X – Pegasus Hotel will go live on third party booking websites.
11/15/202X – Remainder of staff will be hired to begin training program.
11/30/202X – Final walk-thru of newly constructed Pegasus Hotel.
12/15/202X – Begin furnishing and interior design of the hotel.
1/1/202X – Grand Opening of Pegasus Hotel.
Lorenzo will hire Lisa Montgomery as the Director of Sales and David Jimenez as the Assistant General Manager. After an exhaustive search, Lorenzo believes has found the next two senior management positions to ensure the success of the hotel. Each comes with an impressive resume of prior hotel sales and operational experience.
Lorenzo, Lisa, and David will be the senior management team of Pegasus Hotel. They will oversee all other department managers – Maintenance, Housekeeping, Front Desk/Guest Relations, and Food and Beverage. Each department manager will oversee various employees in their respective department and role. The Pegasus Hotel will have a large and sophisticated operation as each department is integral in the success of the hotel.
Lorenzo, Lisa, and David will meet with Frank and Miles monthly to update them on progress and overall operations and sales efforts of the Pegasus Hotel.
Key revenue & costs.
The revenue drivers for Pegasus Hotel are the revenues it will collect when guests book a reservation at the hotel. The hotel will also collect revenues from its restaurant and bar, spa, and events it will host.
The cost drivers will be the payroll and overhead costs to staff the hotel. Other costs will involve the land lease, utilities, marketing costs, and technology fees. There will also be costs associated with the maintenance of the hotel, food and beverage inventory, spa inventory, and hotel guest room supplies.
Funding Requirements and Use of Funds
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
Income statement, balance sheet, cash flow statement, hotel business plan faqs, what is a hotel business plan.
A hotel business plan is a plan to start and/or grow your hotel business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.
You can easily complete your hotel business plan using our Hotel Business Plan Template here .
What Are the Main Types of Hotel Companies?
There are many types of hotel companies. Most hotels are affiliated with a hotel franchise company. Other hotel companies distinguish themselves by star level- 4 to 5-star hotels are on the higher end of rate and amenity offerings, whereas 2 to 3-star hotels cater more towards the everyday business travelers and families.
What Are the Main Sources of Revenue and Expenses for a Hotel Business?
The primary source of revenue for a hotel business are the room fees it charges each guest to stay at the hotel. Revenues are also collected for different amenity offerings, such as room service, restaurant and bar revenue, spa revenues, and guest shop revenue.
The key expenses for a hotel business are the costs for inventory, maintenance, supplies, furniture, fixtures, and equipment, technology, and payroll of the staff. Other expenses will be the rent, utilities, and overhead costs, if applicable.
How Do You Get Funding For Your Hotel Business Plan?
Hotel businesses are most likely to receive funding from banks. Typically you will find a local bank and present your business plan to them. Angel investors and other types of capital-raising such as crowdfunding are other common funding sources. This is true for a business plan for a hotel, a resort or a boutique hotel business plan.
What are the Steps To Start a Hotel Business?
Starting a hotel business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.
1. Develop A Hotel Business Plan - The first step in starting a business is to create a detailed hotel business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.
2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your hotel business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your hotel business is in compliance with local laws.
3. Register Your Hotel Business - Once you have chosen a legal structure, the next step is to register your hotel business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.
4. Identify Financing Options - It’s likely that you’ll need some capital to start your hotel business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.
5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.
6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.
7. Acquire Necessary Hotel Equipment & Supplies - In order to start your hotel business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.
8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your hotel business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.
Learn more about how to start a successful hotel business:
- How to Start a Hotel Business
Where Can I Get an Example Hotel Business Plan PDF?
You can download our example hotel business plan PDF template here . This is a business plan template you can use in PDF format.
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Hotels are one of the most lucrative businesses one can get into. They are especially profitable if the hotel business plan in question is located in a busy city or near a popular tourist destination. Being part of the hospitality industry, you will never run out of customers as long as your hotel is managed properly. To run your hotel plan profitability, you must have a proper business plan that will help you dance your worries away. We have various hotel business plan templates applicable for various related businesses and accommodations such as a startup mini hotel, guest house motel, 5 star resort lodge, 3 star spa, and boutique, etc. Keep scrolling!
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1. what is a hotel business plan, 2. what is the purpose of using a hotel business plan, 3. what should a hotel business plan include.
- Executive summary
- A detailed sample analysis of your company and the work you do
- Industry and market analysis
- Client and customer evaluation
- Your competitors and other sources
- Marketing and operation plan, etc.
4. What Is a Successful Business Plan?
5. how do you write a hotel business plan.
- Operations : explain how your organization will operate daily
- Management : mention your management team
- Financial details : this is where you mention all key finances
- Project planning : define all the targets you want to hit
- Appendix and other details.
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Hotel Business Plan Template
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If we are fully capitalized, we hope to be profitable by (MM/DD/YYYY)
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Boutique Hotel Business Plan Blueprint: Complete Guide
- January 3, 2023
Whether you’re looking to raise funding from private investors or to get a loan from a bank (like a SBA loan) for your boutique hotel, you will need to prepare a solid business plan.
In this article we go through, step-by-step, all the different sections you need in the business plan of your boutique hotel. Use this template to create a complete, clear and solid business plan that get you funded.
1. Boutique Hotel Executive Summary
Though the executive summary is the first and the most important section, it should normally be the last section you write because it will have the summary of different sections included in the entire plan.
Why do you need a business plan for a boutique hotel?
The purpose of a business plan is to secure funding through one of the following channels:
- Obtain bank financing or secure a loan from other lenders (such as a SBA loan )
- Obtain private investments from investment funds, angel investors, etc.
- Obtain a public or a private grant
How to write your boutique hotel’s executive summary?
Provide a precise and high-level summary of every section that you have included in your business plan. The information and the data you include in this segment should grab the attention of potential investors and lenders immediately.
Also make sure that the executive summary doesn’t exceed 2 pages in total: it’s supposed to be a summary for investors and lenders who don’t have time to scroll through 40-50 pages, so keep it short and brief.
The executive summary usually consists of 5 major sub-sections:
- Business overview : explain what is the concept of your hotel, whom it targets (business travelers vs. tourists), where it’s located, its size and any other amenities and services you offer
- Market & competitive overview : start by describing the state of the hotel industry in your area (the city or region where you plan to open yours). Also explain here the level of competition you expect from similar establishments. Finally, mention who are your target customers (your ideal customers) ie. their age, gender, disposable income as well as their preferences
- Sales & marketing strategy : describe how you plan to acquire new customers, outlining the exact marketing channels you intend to use and your overall budget
- Management & People : this section should provide information about the leadership hierarchy, highlighting the roles and responsibilities of every team member and their experience
- Financial plan : how much profit and revenue do you expect in the next 5 years? When will you reach the break-even point and start making profits? You can include here a chart depicting your key financials such as revenue, gross profits, and net profit
- Funding ask : what loan/investment/grant are you seeking? How much are you raising ? How long will this last?
Hotel Financial Model
Download an expert-built 5-year Excel financial model for your business plan
2. Boutique Hotel Business Overview
This is the section where you will provide details about your boutique hotel and its concept. You must address some important questions that lenders and/or investors generally ask.
Here is a quick list of some of those questions you must address:
- What is the rationale behind you opening this type of hotel today?
- What’s the location of the hotel and why did you select that location?
- What hospitality services and products will you provide? Will you offer any special services (massage, gym, etc.)?
- Will there be a restaurant?
- How many employees will you need to run the hotel?
- How many rooms will you have to accommodate your guests?
- What types of rooms will you offer your customers? At what rates?
- What will be the legal structure of your company?
a) History of the Project
Any business must have two components:
- Passion & experience of the business owner
- Rationale behind starting this type of business today
Passion & experience
Starting a huge investment like a boutique hotel requires much more than just capital. It also needs the relevant background experience in the hospitality industry.
Typically, many individuals creating their own boutique hotel will have a long-standing passion and track record for the hospitality industry. Yet, if you lack the experience, it probably isn’t the right time to start your boutique hotel. Instead, you can choose a franchising option and work with an established hotel franchise.
What motivates you to start a boutique hotel in the region today? Unlike some other businesses, a boutique hotel requires a lot of financial and human capital investment.
So, before taking your first steps in this field, provide enough reasons to justify your decision to venture into the business. For instance, if there’s a scarcity of stylish boutique hotels targeting tourists in the region, you can use that to justify your reasons for starting one.
b) Hotel Concept
Describe your boutique hotel’s concept. Here are a few questions you may answer here:
- Will you target a specific market (all-inclusive vs. tourists, business travelers, etc.)?
- What types of rooms will you have (midscale, upscale, luxury?)
- What amenities will you offer your guests? A restaurant, rooftop bar, a SPA, a conference/meeting room? See more on amenities in the next section
- What will be the hotel’s design, layout and surface?
- Where will the boutique hotel be located? Is this next to a busy street, an airport, a tourist attraction or a corporate center?
c) Services & Facilities
Prioritize the most sought-after services in the region. While many boutique hotels offer the same services, you may want to differentiate yourself vs. competitors to attract guests.
Below are a few examples of the guest services you can provide depending on your target audience:
Boutique Hotel Services
- Bar / Restaurant
- Event management (weddings, conferences, etc.)
Boutique Hotel Facilities
- Swimming pool / Jacuzzi
- Business center
- Summer terrace
- Smoking rooms
- Fitness room
- Conference room
d) Room Rates
Next, describe your pricing strategy. Indeed, designing a pricing list for a boutique hotel isn’t the easiest thing to do. So, you can rely on information from some of your biggest competitors in the region to help you set standard rates.
Make sure to have a clear table with the different room categories and their daily rate. If you have off-peak vs. peak rates, make sure to include it too here. It doesn’t need to be exact (as the rates will likely change over time), so use price ranges instead.
e) Legal Structure
Finally, your business overview section should specify what type of business structure you want:
- Is this a corporation or a partnership (LLC)?
- Who are the investors? How much equity percentage do they own?
- Is there a Board of Directors? If so, whom? Do they have experience in the industry?
3. Boutique Hotel Market Overview
Provide comprehensive information about your market. You will want to tailor your services to suit the target audience. And that means you will need accurate information about the hospitality industry in your region:
- Industry size & growth : how big is the boutique hotel industry in your area? Is it growing / declining, and what are the factors contributing to its growth/decline?
- Competition overview : how many competitors are there? How do they compare vs. your hotel? Are they franchises or independent boutique hotels? Do they target the same guests as you do? How can you differentiate yourself from them?
- Customer analysis: who is your target market? Are they business travelers or tourists, single travelers, couples or families? How often do they travel and need an hotel? How much do they spend on average on hotel stays?
a) Boutique Hotel Industry Size & Growth
How big is the boutique hotel industry in the us.
The market size of boutique hotels in the US is estimated to be $16.9 billion in 2022.
Also, there are about 5,500 boutique hotel businesses in the country, meaning the annual turnover for each boutique hotel is around $3,000,000.
Another source estimated there were 4,600 boutique hotels in the US in 2021 and defines them as a high-end, independent hotel with less than 100 rooms and a unique design. The same source reported that boutique hotels accounted for 3.2% of total hotel rooms in the US in 2017, yet but 5.6% of the US hotel room revenue.
How big is the boutique hotel industry in your area?
After getting a clear picture of the boutique hotel industry in the US as a whole, narrow down to your location. Yet, you may not find this information anywhere (at least not for free). In that case, you can use our guide to estimate the TAM, SAM, and SOM for your business. Here is an example of how to do it:
We know the average annual turnover per boutique hotel is $3 million. Therefore, if the area where you want to open your hotel has 30 competitors (say, in a 30-mile radius), you can assume the boutique hotel industry in your area is worth $90 million .
How fast is the boutique hotel industry growing in your city?
The US boutique industry has suffered an unprecedented decline due to the pandemic. Indeed, it decreased from its peak at $20.6 billion in 2019 to $16.9 billion 2022, despite some recovery from its through.
But what about where you live? US national averages can be a great addition to your business plan, yet they don’t necessarily help to assess the boutique hotel industry where you want to open your own boutique hotel.
Instead, you can use the number of hotels as a proxy for market growth. For instance, if there were 28 boutique hotels in the region in 2020 and 30 in 2022, you can safely assume that the average annual growth rate is ~3% in your area.
The estimation above isn’t perfect as it disregard the occupancy rate. For example, if the 28 hotels had an occupancy rate of 20% in 2020, up to 50% in 2022, the market growth rate would actually be much higher i.e. 60% CAGR from 2020-22.
b) Competition Overview
This sub-section focuses on crucial information about your main competitors. Take a closer look at the hospitality services and products offered by other boutique hotels in the region. And while at it, analyze their marketing strategies, pricing structure, and anything you can do to stand out from the competition.
Don’t forget to include a comparative table, highlighting every piece of information the lenders may need when analyzing your business.
Here is a sample table that you can use:
c) Customer Analysis
Customer analysis is all about knowing your ideal guests: who exactly are you targeting?
You can narrow it down with the following questions:
- Demographics (age, gender, single vs. couples, etc.)
- Frequency of visits (how often do they need such services?)
- Average disposable income
- Average spend per stay (hotel, restaurant, other)
- Favorite services (e.g. gyms, spas, etc.)
4. Sales & Marketing Strategy
This section should highlight the strategies you have in place to attract potential clients. Try to answer the following questions:
- What are your unique selling points (USPs)?
- Which marketing strategies will you use to attract new clients?
- How will you track the success of your marketing strategy?
- What is your customer acquisition cost (CAC)?
- What is your marketing budget?
- Will you consider any offers or promotions to attract new clients?
What marketing channels do boutique hotels use?
Like any new business, a boutique hotel requires comprehensive marketing during the first months to attract potential clients.
You can resort to the following channels to help you get new clients, even from your main competitors:
- Online local listing (Google reviews)
- Online booking platforms (Booking.com, Tripadvisor, etc.)
- Social media content & ads: for example encourage your guests to post on social media and / or hire a social media content manager who will create daily posts and manage your social media presence
- PPC ads ( Google Ads )
- Word of mouth, recommendations
What are your Unique Selling Points (USPs)?
In other words, how do you differentiate yourself vs. competitors? This is very important as you might need to win customers from competitors. A few examples of USPs are;
- Quality of services : you may offer high-quality services (e.g. luxury suites, fine dining restaurant, etc.)
- Pricing: your boutique hotel may be cheaper vs. competitors for the same quality of service
- Location : setting up your boutique hotel near your target market gives you the upper hand
- Amenities : you may be the only boutique hotel in the area offering a health SPA, a separate event center for weddings, etc.
5. Management & People
You must address 2 things here:
- The management team and their experience
- The organizational structure : different team members and who reports to whom
Small businesses often fail because of managerial weaknesses. Thus, having a strong management team is vital. Highlight the experience and education of senior managers that you intend to hire to oversee your hotel business.
First, describe their duties, responsibilities, and roles. Also, highlight their previous experience and explain how they succeeded in their previous roles.
Even if you haven’t already hired a general manager, administrative staff, receptionists, chefs, and other relevant staff members, you must provide a chart of the organizational structure defining hierarchy and reporting lines.
6. Financial Plan
The financial plan is perhaps, with the executive summary, the most important section of any business plan for a boutique hotel.
Indeed, a solid financial plan tells lenders that your business is viable and can repay the loan you need from them. If you’re looking to raise equity from private investors, a solid financial plan will prove them your boutique hotel is an attractive investment.
There should be 2 sections to your financial plan section:
- The startup costs of your project (if you plan to start a new hotel, renovate your hotel, adding rooms, etc.)
- The 5-year financial projections of your boutique hotel
a) Startup Costs
Before we expand on 5-year financial projections in the following section, it’s always best practice to start with listing the startup costs of your project. For a boutique hotel, startup costs are all the expenses you incur before you open your hotel and receive your first guests. These expenses typically are:
- The leasing deposit (if you rent) or the cost to buy the building (if you buy)
- Renovations and improvements
- Equipment & appliances
- Furniture & tableware
Of course, the startup costs depend on a number of factors, like the size of your hotel, its location, the facilities, etc.
On average, it costs $8,400,000 to $10,800,000 to build and open a small boutique hotel with 20 rooms (assuming you decide to build the hotel from scratch).
Note that these costs are for illustrative purposes and may not be fully relevant for your business. For more information on how much it costs to open and run a boutique hotel, read our article here .
b) Financial Projections
In addition to startup costs, you will also need to build a solid 5-year financial model for your boutique hotel business plan.
Note that your financial projections should be built using a spreadsheet (e.g. Excel or Google Sheets) and presented in the form of tables and charts in your business plan.
As usual, keep it concise here and save details (for example detailed financial statements, financial metrics , key assumptions used for the projections) for the appendix instead.
Your financial projections should answer at least the following questions:
- How much revenue do you expect to generate over the next 5 years?
- When do you expect to break even ?
- How much cash will you burn until you get there?
- What’s the impact of a change in pricing (say 15%) on your margins?
- What is your average customer acquisition cost ?
You should include here your 3 financial statements (income statement, balance sheet and cash flow statement). This means you must forecast:
- The number of nights booked over time ;
- Your expected revenue ;
- Operating costs to run the business ;
- The construction costs and FF&E expenses
When projecting your revenue, make sure to sensitize pricing, the expenses (salaries, utilities, supplies, etc.) and the number of stays (or booked nights). Indeed, a small change in these assumptions may have a significant impact on your revenues and profits .
7. Use of Funds
This is the last section of the business plan of your boutique hotel. Now that we have explained what your boutique hotel’s concept is, the amenities it offers, your marketing strategy, etc., this section must now answer the following questions:
- How much funding do you need?
- What financial instrument(s) do you need: is this equity or debt, both?
- How long will this funding last?
- Where else does the money come from? If you apply for a SBA loan for example, where does the other part of the investment come from (your own capital, private investors?)
If you raise debt:
- What percentage of the total funding the loan represents?
- What is the corresponding Debt Service Coverage Ratio ?
If you raise equity
- What percentage ownership are you selling as part of this funding round?
- What is the corresponding valuation of your business?
Use of Funds
Any business plan for a boutique hotel should include a clear use of funds section. This is where you explain how the money will be spent.
Will you spend most of the loan / investment in paying for construction costs? Or will it cover mostly renovation and furniture costs?
For the use of funds, we also recommend using a pie chart like the one we have in our financial model template where we outline the main expenses categories as shown below.
How to write a stellar business plan for a hotel
Do you think life is best lived in the lap of luxury, comfort and convenience? If so, you may have decided to open a hotel.
Whether you're already an experienced hotelier or not, starting up a new hotel business is a journey that's invigorating, but with lots of hurdles along the way.
And that's why we're here - to help lead you through each step. In this guide, we'll take you through the process of writing a business plan for a hotel - from what it should contain, to practical solutions you can use to draft it up.
On the menu:
Business plan by hotel type
Start by envisioning the concept of your hotel.
- Define the type of guests you want to attract
Turn your dream into reality by writing a hotel business plan
Why the business plan for a hotel is essential, how to write the business plan for a hotel: the financial forecast, how might the editorial section of your hotel business plan look, feeling lost let our business plan software guide you.
- Three things you should know before creating a hotel business plan
Depending on your budget, location and skill set, you could choose to open one of several types of hotels.
The beauty is that regardless of which hotel concept you go for, the structure of your business plan will remain the same.
Below are the six key types of hotels that you could draw up a business plan for:
A hotel chain
A hotel chain includes multiple hotels that are part of a single brand.
As a small or medium business owner, this isn't practical in the short run but you can join an already-established brand by becoming a franchisee.
You'll receive training and advice but the start-up fee is likely to be significant.
This model usually caters for short stays and is a lot smaller in terms of the number of rooms it offers.
It offers a great option for tourists or motorists and a well-designed structure with a good location can bring in a constant stream of revenue.
A hotel resort
Depending on your location, you could choose to open up a hotel resort.
These are generally situated near tourist attractions such as ski parks or historic sites.
It could be a viable option as a part-time business, during the peak ski season for example.
An extended-stay hotel
Unlike motels, these offer long-term accommodation to guests. This usually means seven or more days.
If you choose this model, you could attract a wide target audience. Businesspeople, families or even students who are holidaying are all potential marketing targets.
This means that you'll need to have a strong marketing plan that caters for multiple groups.
A unique, new model that has become popular in recent times.
Guests stay in accommodations that are considered favourable to the environment.
This model may be costly to initially build but can bring in considerable revenue if there is demand for such hotels in the catchment area.
Business hotel suites
This model caters for businesspeople predominantly and offers reasonable prices to stay overnight.
Such hotels are usually located near event hubs or business districts.
If you choose to operate using this model, you'll likely need to invest in business equipment such as printing facilities, seminar seating and online access.
First things first, you need to have a clear vision of exactly the type of hotel you want to open. This is your dream project, so it's important to mould it in such a way that makes you feel proud and, most importantly, motivated to continue playing an active role in it.
Start by taking stock of your career background, your skills, your areas of expertise and your own desires when thinking about your hotel business plan - whilst listing everything you lack in terms of hospitality training and financial resources. By doing so, you'll be able to build a business that is suited to your ambitions and unique way of working.
You could also opt to take over an existing hotel. To learn more about this process, check out our guide on how to take over a hotel .
Define the type of guests you want to attract
To paint a more accurate picture of your hotel, you need to consider your clientele. A hotel should offer a break from reality and be indicative of its guest's aspirations (whether they're looking for a fun city break or a calming spa retreat) so set aside time to draw up their profile.
For this, you'll need to find out their age, where they come from, their average budget, job status and what they're looking for in a hotel. This will all go in your hotel's business plan as well.
Once you've gotten to know a little more about your future customers, you can sharpen the vision for opening your hotel. For example, if a sizeable chunk of your target market is made up of parents, you're most likely going to include play facilities or a kids club. The idea is to mirror everything your guests are looking for in a weekend or holiday break.
Dreams are all well and good, but to truly put your plan into motion, you'll need to get your head out of the clouds and focus on the planning stage.
This is where the business plan for your hotel comes in. Whether you're launching a restaurant, clothes shop or hotel, writing a business plan is an integral step for any entrepreneur starting a new company.
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To put it simply, a business plan for a hotel is a document in which you lay out the details for your project, the objectives you have for your business, and the steps you'll need to take to ensure it's a success.
Writing a business plan for your hotel also means having to carry out market research for a hotel to familiarise yourself with the hotel market in the town or city in which you'd like to base your business, as well as the strengths and weaknesses of nearby competitors.
The prices you set will depend on your business model and where you're based. From there, you can draw up a financial forecast for a hotel to integrate into your business plan.
Writing a business plan for a hotel not only enables you to check whether your hotel is likely to be profitable but also plays an essential role in presenting it to potential investors in the hope they'll provide funding to help get it off the ground.
It's therefore essential to have a solid, comprehensive business plan to prove your dedication and credibility as an entrepreneur.
The hotel business plan is also useful if you plan to apply for a loan or other forms of financial aid to help you open your hotel. To find out more about the funding solutions available to entrepreneurs, read our practical guide to hotel funding .
The financial forecast of a hotel consists of four main tables. These tables are presented in more detail below.
The projected profit and loss statement
The P&L statement makes it possible to assess the company's sales growth, monitor changes in the cost structure and thus evaluate its profitability (gross margin, EBITDA, net income).
Your gross margin (sales revenue - the cost of goods sold) must be sufficient to cover your overheads.
By then subtracting general expenses (administrative, commercial and payroll expenses) to the gross profit, you will obtain EBITDA. It corresponds to the company's cash operating income. If it is positive, the activity is profitable.
The P&L statement is not sufficient to understand the overall financial situation of the company. It's best to analyse it in conjunction with other tables in the financial forecast.
Forecasted cash flow statement
With this chart, you'll be able to understand how cash is consumed and generated within the business.
This statement will allow you to realise whether or not you require external financing (as a result of insufficient cash flow).
Forecasted balance sheet
This table provides a view of the company's assets at the end of the year.
The forecasted balance sheet is made up of two parts: assets and liabilities. The assets represent the company's resources, while liabilities correspond to the company's debts.
From a financial point of view, this table makes it possible to evaluate the financial structure of your business, i.e. the breakdown between the company's equity and financial debts.
It, therefore, allows you to verify whether or not debt levels are reasonable and evaluate the company's liquidity, i.e. it's capacity to honour its short-term commercial, tax and financial debts).
Initial financing plan
The initial financing plan shows how the company's initial investment is financed.
This table is also useful for estimating the distribution of risk at the beginning of activity between the shareholders and the lenders.
There are two sides to this table:
- Sources (capital contributions, loans etc.), i.e. the money available to the business
- Uses (equipment, start-up costs, etc.) i.e. how this money is used at the launch of the business
Ideally, the cash position shown in the initial financing plan should be sufficient to keep the business afloat until you reach your break-even point if your business takes longer than expected to start up.
The written part of your business plan is as important as your financial forecast. It meticulously highlights each section of the business and aims to convince banks or financial institutions that your venture is feasible.
This section will also be an opportunity to explain the assumptions made in the financial forecast section in greater detail.
Contextualising your assumptions via your market research also allows you to determine whether or not they are realistic.
The essential written parts of the business plan include:
The executive summary
This section provides a brief overview of the entire business plan, illustrating both the purpose of the company and its key goals. The aim is to outline the key details, in the hope of persuading the reader to want to know more.
The company summary
In this part, you should aim to present the administrative details of the company including:
- The number of partners
- The legal structure
- Percentage ownership
- Head office
- Where the premises are located
Products and services
You should aim to describe the services that your hotel offers in detail while explaining how your hotel will be competitive in the market (unique selling points such as fast and efficient room service or a cosy bar etc.).
You may also address any intellectual property rights such as trademarks or copyright.
Use this section to show that there is a gap in the market for your goods or services (for e.g a need for additional hotel rooms). It should also include analysis of the local market, any trends, competition and regulations in the area.
The next step in our guide on how to write the business plan for a hotel involves a strategic outlook.
Inform the reader about how each of your services (including the guest rooms) will be priced. For example, how might prices vary based on the number of nights that guests decide to stay at the hotel? Are there any offers in the bar?
Yield management is a popular strategy used by hoteliers - it involves adjusting the price of rooms based on the level of demand observed on the market in order to maximise the occupancy rate of the hotel.
Since there are two perceived seasons for hotels - peak season and off-peak season, yield management allows hotel managers to balance their revenue stream throughout the year.
Higher prices can be charged when occupancy levels are high and a combination of lower prices/promotion ideas can be used when occupancy levels are low.
You should also present your marketing strategies in detail (including your use of social media, digital advertising, newsletters, etc.).
List any potential risks to your hotel and how you plan to address them, such as getting fire insurance cover and installing a security alarm.
Here you will highlight the organization of the company. This should include the opening hours of the business, the staff (directors and employees), any key assets that you plan to hold and the suppliers that you might be working with.
Financial plan of the hotel
In this section, you will present your financial forecast and explain the assumptions made in your calculations.
Two key tips for preparing a hotel business plan:
- Be sure to address customer payment terms: clients can pay either when they check-in or check-out depending on the hotel policy. This will impact your cash flow.
- Explain any business jargon used in detail, so that the reader does not get confused with industry terms they might not be familiar with.
If drafting up a business plan for a hotel on your own feels a little too complicated, then you've come to the right place.
Our online business plan software makes it easy for you. Designed specifically for entrepreneurs who've never written a business plan before, it will guide you step by step through the process - so you don't get lost in between the many different stages.
It will also make creating a financial forecast a breeze - leaving you with a clear, well-presented, and professional document with which you can confidently showcase your business idea to investors.
If you're still not sure, why not dip your toe and test our business plan software for free? Click here to try it out and let us know how you get on.
What you should know before creating a hotel business plan
We recommend taking into account seasonality as one of your risks and mitigants.
A wet or cold summer could lead to a sharp fall in the number of tourists in the area where you are planning to situate your hotel.
Would you have special leeway just in case? Is it possible to maintain a cash reserve to deal with a poor season?
That's it for this time, we hope this article has helped you better understand how to write a business plan for a hotel. If you have any questions related to launching your business, please don't hesitate to get in touch with our team.
See also on The Business Plan Shop
- Business plan template for a hotel
- How to buy a hotel with no money
- How to open a bed and breakfast
Know someone who might be interested in this article? Share it with just one click!
Founder & CEO at The Business Plan Shop Ltd
Guillaume Le Brouster is a seasoned entrepreneur and financier.
Guillaume has been an entrepreneur for more than a decade and has first-hand experience of starting, running, and growing a successful business.
Prior to being a business owner, Guillaume worked in investment banking and private equity, where he spent most of his time creating complex financial forecasts, writing business plans, and analysing financial statements to make financing and investment decisions.
Guillaume holds a Master's Degree in Finance from ESCP Business School and a Bachelor of Science in Business & Management from Paris Dauphine University.
Published on 08 Mar 2021 , last update on 09 Jun 2023 , as per our editorial standards .
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Hotel Business Plan Sample
Hotel Business Plan for starting your own hotel
Hotels are among some of the best businesses that you can start if you have the investment for it. As a matter of fact, if you want to invest a large sum of money in a business that has virtually zero risk, rental real estate business plan might just be the safest option.
We will give you a business plan for hotel that you can use to start your own hotel and make a lot of money while you are at it. This sample business plan for a hotel will follow the example of Hotel Intergalactic, a venture by John Abruzzi. Let us now see what business consultants have to say about this business.
Hotel Business Plan Summary
2.1 the business.
Hotel Intergalactic will be a 3-star hotel situated in downtown Los Angeles. The hotel will be registered with the local government and will be insured. The details of this business will be described in this executive summary for hotel with focus being on the way you can make lucrative profits by owning a hotel.
2.2 Management of Hotel Business
The next thing this business plan template for hotel needs to address is the way this hotel will be managed. For this, we will hire a manager to look after the day-to-day matters of the hotel. Other than the manager, one accountant and three assistant managers will be hired.
As this is a business plan for small hotel, we will not be hiring a lot of managerial staff to run it. The assistant managers will be responsible for procurement, operations, and customer service. The assistant managers will report to the manager who will act as an agent of the owner, John Abruzzi and will make decisions on his behalf in his absence.
2.3 Customers of Hotel Business
The customers of this free sample hotel business plan will be the following:
- People coming to visit Los Angeles.
- People who are in Los Angeles for business meetings.
- Los Angeles-based companies that need accommodation for their employees coming from other cities.
2.4 Business Target
The targets of Hotel Intergalactic are:
- Becoming the best hotel in Los Angeles.
- Starting to make a profit of £29,800 a month by the end of year 3.
- Expanding its services to at least other cities by the end of year 5.
3.1 company owner.
Hotel Intergalactic will be owned by John Abruzzi. John has a master’s degree in hospitality management and has been working in the hoteling industry for more than half his life. He knows the business and is passionate about it. He also has enough money to start the business. Combined, all these factors make him the perfect owner in this hotel business plan pdf.
3.2 Why the Hotel is being started?
John Abruzzi is one of the most prominent hotel managers in the area and that means if he starts a hotel people will know he means business. In this example of a hotel business plan, the main reason for starting this business is that this is a profitable business opportunity.
3.3 How the Hotel will be started?
Step1: Making a Feasibility Report
The next thing this new hotel business plan needs to discuss is the feasibility report. At this stage, a survey will be conducted to chalk out the demand and availability of hotels in downtown Los Angeles area. Any good hotel business plan sample doc needs to make sure of the thing that a proper feasibility report is made and the hotel is designed according to the demand in the area.
Step2: Developing a Brand
This hotel business plan, just like a resort business plans needs to cover another important thing. This is developing a brand. As the hotel is going to be in the heart of Los Angeles, it is cardinally important to have a brand.
Step3: Establishing the Hotel
As the hotel is to be constructed from scratch, the best-case scenario would’ve been an empty plot but that is not the case as the downtown Los Angeles area is fully covered by a concrete jungle. For this purpose, an apartment building will be bought and will be modified into a hotel.
Step4: Promotion and Marketing
Last, but not the least, the hotel needs to be promoted on all media channels to make sure people are aware of its existence and it attracts business.
Services of Hotel Business
A hotel business plan, unlike a home inventory business plan has a limited number of services. While a home inventory service business can offer a lot of services, a hotel business can only offer a few. Here’s an overview of the services Hotel Intergalactic will be offering:
It goes without saying that the most important service offered by the hotel will be accommodation. The hotel will have 20 single-bed, 20 double-bed, and 10 twin-bed rooms for accommodating the guests.
- Banquet Service
The second most important service provided by Hotel Intergalactic will be that of a banquet. Three large halls will be made a part of the hotel and will be provided for everything from business meetings to birthday parties.
The top floor of the hotel will have an open-air rotating restaurant which will be open for the guests in the hotel and any other person coming in just for a meal.
- Bar and Lounge
The hotel will also feature a bar and a coffee lounge. These services will also be available for both the guests of the hotel as well as other people.
Marketing Analysis of a Hotel Business
Marketing analysis is the study of the various variables of the market that can affect the successful operation of a business. Any business plan for a hotel operation needs to shed light on this in order for the hotel to be successful. Before we get into the details of this business plan sample hotel industry, we need to have a look at the industry as a whole. There are just above 90,000 hotels in the US and more than £194billion change hands in this industry annually.
5.1 Market Trends
If you want to learn how to write a business plan for a hotel, you will have to closely study the trends of the industry. Just like making sample property management business plans , it is important to have an insight into the market before establishing a hotel.
The US hoteling market might have its seasonal ups and downs, but it has been noted in the past decade that the industry has seen a steady growth. The worth of this industry has increased from £133billion in 2009 to just under £200billion in the last decade. Industry experts and analysts are of the view that this industry will show a minimum of 5% growth by 2025.
Let’s now see more details of this hotel business plan outline.
5.2 Marketing Segmentation
One of the most important things to consider when planning any business is the market segmentation. You need to have a clear idea of the market segments that you are going to target and only then you can properly plan everything.
Apparently, the hoteling business is only for one market segment, the people who need a place to spend the night. However, there is more to the story that just that. Even a house painting business plan has multiple market segments. Any hotel can have customers and clients divided into a number of market segments. We will focus on four segments of the market via Hotel Intergalactic.
5.2.1 Individual Customers
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Most of our customers will fall into this category. These will be the people who show up at the hotel and want a room. We will make every possible effort to make sure these customers go home happy and consider us the next time they need a hotel.
Companies need accommodation for their employees when they are on a meeting. This segment of the market will give us bulk business and we will offer them discounts to make them our loyal customers.
5.2.3 Bar and Restaurant Customers
As the hotel will have a bar and restaurant, the people coming to visit them will also be a segment of the market for us.
5.2.4 Banquet Customers
As the hotel is to have three banquet halls, this will also be an important market segment for us. We will rent out the halls for conferences, parties, weddings, birthdays and any other function people need them for.
5.3 Business Target
Our business targets are:
- To maintain the highest standards of client satisfaction.
- To become a well-known name in the industry.
- To expand the business to all the major cities of the US.
5.4 Product Pricing
Hotel Intergalactic will offer the services at a price comparable to that of the competitors. We might keep the price a bit lower than that of the competition at the start to attract customers but once we earn name, we will increase the prices.
Marketing Strategy of Hotel Business
The next important thing for opening a hotel business plan is the marketing strategy of the hotel. No hotel management company business plan can be complete if it has no marketing strategy. To make a workable marketing strategy, we need to do the following.
6.1 Competitive Analysis
The competitive analysis for Hotel Intergalactic has revealed the following:
- The competition in this field is immense in the area we are working in. We need to provide something extra to get customers.
- We will provide complementary dinner to our customers. No hotel in the area does this and this will give us a competitive edge.
- We will subsidize the companies who want accommodation for their employees so that they choose us over the other options.
6.2 Sales Strategy
- We will advertise the hotel through all the media channels in the area.
- We will partner up with travel agents and tour planners to get customers.
- We will offer discounts to companies who want to get accommodation for a large number of their employees.
6.3 Sales Monthly
6.4 sales yearly, 6.5 sales forecast, personnel plan.
Another thing that needs to be made clear in this hotel resort business plan sample is the staff that we will need to operate the hotel. Unlike an RV park start up business plan , we will need a larger workforce to smoothly run the operations of the hotel.
7.1 Company Staff
- John Abruzzi will be the owner and CEO of the hotel.
- 1 General Manager.
- 2 Assistant managers.
- 1 Accountant.
- 1 Receptionist.
- 3 Waitresses.
- 2 Bartenders.
7.2 Average Salary of Employees
The last thing to be discussed in this business plan is the budget for hotel business plan. As the hotel is being started from scratch, the following expenses are to be arranged:
- The cost of establishing the hotel.
- The cost of hiring the staff.
- The salaries of the staff for the first 6 months.
- The cost of buying cars for guest pick and drop.
- The money needed to advertise the hotel.
- The money needed to establish a web presence of the hotel.
8.1 Important Assumptions
8.2 break-even analysis, 8.3 projected profit and loss, 8.3.1 profit monthly, 8.3.2 profit yearly, 8.3.3 gross margin monthly, 8.3.4 gross margin yearly, 8.4 projected cash flow, 8.5 projected balance sheet, 8.6 business ratios.
Download Hotel Business Plan Sample in pdf
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6+ SAMPLE Small Hotel Business Plan in PDF
Small Hotel Business Plan
6+ sample small hotel business plan, what is a small hotel business plan, elements of a small hotel business plan, tips on small hotel business plan, how to start a small hotel business, how large is the market for hotels, how do hotels get their revenues.
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Executive summary, business summary, business overview, market analysis.
- Economic Environment – This is the factor affecting inflation, increasing salaries, and types of employment. Know how people will want to spend money and why will they want to get away sometimes.
- Geographical Environment – This factor will tell whether there can be many people that will visit your hotel. You must consider the geographical location because you have to ensure that your hotel can be a likable place for customers.
- Legal Environment – Does your hotel comply with all the state laws? You must follow all the rules like liquor licenses so that your guests will not have any problem with your hotel. They need a place where they can do all things legally.
- Technology Environment – Your hotel should be updated with the latest technology. This can make your hotel more elegant and many will want to visit your hotel. State-of-the-art technology can set your hotel apart from other hotels.
Advertising and operational strategy, financial plan, step 1: start with a plan, step 2: make a proposition, step 3: make a marketing plan, step 4: get capital, step 5: build the small hotel, step 6: hire key workers, step 7: launch the hotel, share this post on your network, you may also like these articles, 23+ sample sports action plan in pdf | ms word.
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Conducting Market Research
1. determine where you’d like to locate your hotel., 2. decide if you will buy an existing hotel or build a new one..
- If you buy an existing hotel, it will probably be cheaper than building a new one, unless the property needs major renovations. It may cost a lot to you now, but think of it as a long-term investment that will eventually reap over time. Other than the renovation costs, you may also want to take into account the internal issues that the original hotel might have. There are a number of things that you can do: inspect as to whether all personnel assigned in their designated positions are competent enough to do their duty, the food that is being served, the cleanliness of the rooms, the customer service, etc. If you think that it is good as it is, then best keep them. If not, it is high time to do some changes. You may also see business plan outline with examples .
- If you build a new hotel, it will probably be more expensive. But the good thing about it, however, is that now you get to design your own hotel and construct it just the way you want it to be. But knowing that you are going to start everything from scratch also means that you have to get down to business immediately. Because once your new hotel opens, you still do not want it to be closed, do you? By the time it is ready to do business, everything needs to be set up in order to welcome the public. You may also want to check out some examples of ordinary yet effective plans for more details.
3. Investigate other hotels, guest houses, and B and Bs in the area.
- Find out what competitors charge.
- Read customer reviews online.
- Look at what local hotels offer besides rooms.
- Book a stay at some local hotels to really get a feel for what they offer.
4. Understand your primary market.
5. determine what extra services you’d like to offer with your hotel., the business plan for your hotel.
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Managing Your Hotel Finances
1. hire an accountant., 2. draw up a business plan..
- First up, you have to describe the services that the hotel will be offering to the public. How does this set you apart from other hotels in the area? Will you offer better rates? More personal service? Investors will want to see what makes your hotel unique. You may also see examples of action plans .
- Next up in your business plan is to explain on who your potential market is. Elaborate further on what demographic you are catering to, and as to the reason why they will pick your hotel over another.
- Finally, list down an estimation for your future earnings. Your investors will also want to see that your hotel will be profitable. With the help your newly-hired accountant, you can calculate what you expect your annual revenue to be. In that same accounting report, try to also state how long before you expect to start earning a profit, and where your hotel will be in the next several years. You may also like advertising plan examples & samples .
3. Acquire start-up capital.
- Another way is through private investors. These can be friends, family, or other business owners interested in making an investment. Make sure you define whether these people are just providing a loan that you will pay back with interest, or if they’re actually buying into your company. It would be helpful to draw up a contract defining the terms of your general agreement and having it notarized to prevent problems in the future.
4. Set your prices.
5. cut costs when necessary., components of integrated business planning.
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Managing the Hotel Staff
1. hire all the necessary staff., 2. investigate all your applicants., 3. produce a manual for all employees., hotel pre-opening checklist.
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Marketing Your Hotel
1. design a website., 2. place ads on travel sites like expedia, traveloka, or hotels.com., 3. leave brochures at rest stops on interstates., 4. make sure all guests have a great experience., 5. cultivate repeat business..
- Set up an email list.
- Reward repeat business by offering special deals to past guests.
- Respond to customer feedback.
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Hotel Business Plan Table of Contents
by Praveen Marar
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2006, 18th November, Berystede Hotel, Ascot, University of Manchester, ISBN 0-9547918-2-7, 184 pages
This project is dedicated to Almighty God, most Gracious, most Merciful and Determiner of all things without whom I would not have been able to successfully complete this project. To my parents Mr. and Mrs. David Kirui and Beatrice Kirui and my entire family, I love and appreciate you very much and appreciate your support. And also to all those who helped me throughout the process of writing this project I are thankful for their support rendered.
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The aim of the paper is to reveal a model that integrates the four main components of the strategic orientation of a company vision, mission, objectives and strategies with the processes composing its business activities and that is also adapted for companies operating in a particular sector of the economic activity the hotel industry.
Ni N Z O U (PhD)
2022, Case Study Drafr Paper
Hospitality is defined as the reception and treatment of strangers or guests. It entails taking excellent care of clients and customers to keep them coming back for more. When customers are not well taken care of, the hospitality business will struggle to generate revenue. Restaurants, hotels, catering, bartending, and transportation is examples of hospitality businesses. They are concerned with fostering a positive relationship between hospitality businesses and their customers, commonly referred to as guests. Customer satisfaction is typically required for such companies to remain in operation. Customers may seek out other companies that provide better hospitality if they are not satisfied. It is important to note that the hotel industry is an essential component of the tourism sector. Therefore, the growth in the industry cannot be avoided, and at the same time, in the hotel industry. The hotel industry is so intertwined with tourism that it accounts for roughly half of the foreign exchange earned from tourism trade and enterprises
Mark Buluma Eugine
2022, CERN European Organization for Nuclear Research - Zenodo
2004, Proceedings of the Water Environment Federation
1999, Journal of Convention & Exhibition Management
Professor Sultan Tarawneh
2019, Worldwide Hospitality and Tourism Themes
In an industry that is high on human touch, the quality of the customer service is of paramount importance. Employees have frequent interaction with the customers/guests and their performance drives the true competitive value of any hotel. Each hotel thus has to have sufficient number of staff that is trained and motivated to continue providing quality service. This paper will investigate how the top hotels in India are not only addressing the issue of current manpower shortage and training but also how they are preparing for the future when the market, the customer profile and the employee expectations are going to undergo a major change, when the brand loyalty could be minimal and the competition high. It will review the practices that the hotels currently use to understand the employee focus in organizations and their contribution to sustainable effectiveness as well as the challenges they face in the coming years and how they are preparing for the same in terms of talent attraction and retention.
Follow this and additional works at: http://opus.govst.edu/capstones Part of the Databases and Information Systems Commons For more information about the academic degree, extended learning, and certificate programs of Governors State University, go to
Customer discovery is critical for entrepreneurs to identify customers and their needs successfully. It is an essential piece of the lean startup methodology for discovering and confirming customers, their needs, value propositions, business models, and minimum viable products. This effort requires that the entrepreneur develop practical and successful interviewing skills and processes. This paper focuses on several essential aspects involved with the strategy to set up a productive customer discovery and interview process. It addresses upfront planning requirements, including the selection of the right customers and defining the optimal approach. The discussion then delves into a four-part approach to the strategic planning around the key objectives and questions to address, the methods to use, the gathering of data, and final the communication of results. Following this discussion, the paper examines the "FUNNEL" and "SPEECH" techniques. These are two approaches that the entrepreneur can use with screening customers and guiding one's interviewees through the "Painful Interview." In the end, discovery needs to focus on the customer and needs. It is not about one's company and its products. When used correctly, effective questioning and interviewing strategies leads to valuable insights that guide a data-driven decision, instead of one based on assumptions or guesses. These will focus on the right customers and their needs. Such will provide insights to create a compelling value proposition. This way the entrepreneur can mitigate risk, "nail" one's product and business model, and scale-up the venture with greater confidence.
2010, Cornell Hospitality Quarterly
Raymond Schmidgall , Lalu Tahsin
DR ABUKHALIFEH ALAA
2022, in Encyclopedia of Tourism Management and Marketing Published: 25 Aug 2022
A hotel property management system (PMS) is a ‘a set of application programs that directly relate to hotel front office and back office activities e.g. revenue management, reservation management, room and rate assignment, check-in & out management, guest accounting, folio management, account settlement and room status management’ (Kasavana and Cahill, 2003, p. 4). The availability and accessibility of data are vital to those in the hospitality industry. The hospitality industry requires a large volume of data to run day-to-day business operations and to achieve excellent service delivery. Unlike other industries, hospitality is a service-based industry that relies upon an ability to form relations with a customer base (Kokaz Pucciani and Murphy, 2011). As a result, the industry is reliant upon information about consumers and their preferences. These preferences may range from preferred room type to information about personal needs.
2021, Trans Stellar Journal
The study examined the impact of professional inputs of facility management team and its role in corporate organization properties in Port Harcourt, Nigeria. The study adopted a survey research design and a mixed method of data collection. Five (5) corporate organizations in Port Harcourt were selected for the study namely: MTN, First Bank, Dufil Prismas, Hotel Presidential and Port Harcourt Shopping Mall. The sampling techniques used were simple random sampling and purposive sampling techniques. The Taro Yamane formula was used to estimate the sample size of 132 respondents. A total number of 108 completed questionnaires were retrieved representing 82% of the questionnaires distributed and used for statistical analysis. The data collected were analyzed with descriptive statistical tools. In addition, semistructured interview was conducted with the managers and analyzed with content analysis. The findings revealed that the professional inputs of facility management team and its role in corporate organization properties management include development, coordination and management of all core and non-core areas of specialist activities together with the building and its systems, plant, ICT, equipment and fittings with the aim of assisting corporate organizations to achieve its strategic objectives. The study therefore recommends that the emerging trend in the demand of model facilities should anchor on continuous upgrading of facilities and its services, Management should introduce modern technology in tackling facilities management, challenges because it will enhance management performance and that there should be good communication among practitioners.
Business in the field of hospitality services is indeed the main attraction for investors and entrepreneurs in starting a business. Hospitality is a business company that provides room accommodation for a place to rest. Usually the hospitality services those who come to go on vacation, meetings, or work. Hotel is one of the supporting factors of tourism to increasing a number of hotel populations’ makes hoteliers have to compete to make more value offered to customers from other hotels. It’s not only buildings and services offered also marketing factors also affect the success of the hotel business, including promotion, communication to the community through events and campaigns using digital marketing. Various existing hotels each has advantages, from building infrastructure, hotel functions, hotel location, services, to the theme they have. All of these factors are strengths and uniqueness that distinguishes them from others. However, how to convey this uniqueness to the community...
The aim of this paper is to explain the economic reasons for the complex variety of mechanisms of governance observed in the hotel industry. First, we focus on the allocation of property rights of key assets to propose an ordered typology of governance forms in the industry. This ranges from owned hotels, the organizational form which offers the hotel company
Laura Dresser , erin hatton
The hospitality industry is facing key economic and workforce challenges as it enters the 21st century. Success in meeting these challenges hinges on the ability of the industry’s stakeholders to come together and solve their common problems. This report is about model solutions for the industry, and how they can be built. Based on detailed background research, and literally hundreds of hours of interviews, discussions, and site visits at eight hotels in four different cities, we draw a comprehensive picture of this critical industry — not only how it looks right now, but also its potential to be an even stronger sector that offers better career opportunities.
1997, Cornell Hotel and Restaurant Administration Quarterly
Ada Mirela Tomescu
Bilal Ibrahim Dan-Iya
Develop a Strategic Business Plan for a New Venture. This Strategic Management Process should contain whatever is necessary to start-up a company from scratch, including the new company’s philosophy, mission, objectives, strategies and tactics, CSR, an analysis of the firm’s internal and external environment, organizational structure, leadership and, an one-page financial report justifying the firm’s survival for at least a year. You should justify your choices in terms of the chosen industry/sector on the grounds of innovation, competitive advantage and company’s sustained growth and survival. Your budget is $150,000 (US).
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Free Agriculture Sample Business Plan PDF + How to Write
6 min. read
Updated November 28, 2023
Free Download: Agriculture Business Plan Template
As a farmer, you’re in the business of putting food on the table. Agriculture is one of the world’s oldest professions.
Today it accounts for over 5% of U.S. Gross Domestic Product, and 1 in 10 American workers are in agriculture, food, and related industries.
But starting a new agriculture business requires intensive planning and upfront preparation. If you’re looking for a free, downloadable agriculture sample business plan PDF to help you create a business plan of your own, look no further.
Keep in mind that you don’t need to find a sample business plan that exactly matches your farm. Whether you’re launching a larger agricultural business outside a bustling city or a smaller organic operation, the details will be different, but the foundation of the plan will be the same.
Are you writing a business plan for your farm because you’re seeking a loan? Is your primary concern outlining a clear path for sales growth? Either way, you’re going to want to edit and customize it so it fits your particular farm.
No two agriculture farming businesses are alike.
For example, your strategy will be very different if you’re a dairy operation instead of a soybean farm. So take the time to create your own financial forecasts and do enough market research for your specific type of agriculture so you have a solid plan for success.
- What should you include in an agriculture farm business plan?
Your agriculture business plan doesn’t need to be hundreds of pages—keep it as short and focused as you can. You’ll probably want to include each of these sections:
1. Executive summary
An overview of your agriculture business, with a brief description of your products or services, your legal structure, and a snapshot of your future plans. While it’s the first part of the plan, it’s often easier to write your executive summary last.
2. Business summary and funding needs
Details about your farming operation, including how much capital you will need and the types of funding you’re considering. Include your business history, your current state, and your future projections. It should also cover your business location, the equipment and facilities needed, and the kinds of crops or livestock you plan to raise.
What’s your biggest business challenge right now?
3. products and services.
Provide details on the types of crops, farming methods, and any value-added products you plan to offer, such as finished goods or even agritourism offerings .
4. Marketing plan
Compile your market research findings, including the demand for your products or services, your target customers , and your competitors. It should also outline your marketing strategy—how you plan to attract and retain customers.
5. Financial plan
Your revenue projections, cost estimates, and break-even analysis. Your financial plan and forecasts should demonstrate that your business has a path to profitability.
- Building on your farm business plan sample
With a free agriculture business plan template as your starting point, you can start chipping away at the unique elements of your business plan.
As the business owner, only you can speak to aspects of your agriculture operation like your mission and core values.
You’re putting in the long hours to start a thriving farm business, so aspects of your mission – like a commitment to sustainable farming practices – will be best explained in your own words. Authenticity will help you connect with a growing market of consumers who value transparency and environmental stewardship in their food sources.
As for more conventional aspects of business planning , you will want to take on things like your marketing and financial plans one at a time. Here are a few specific areas to focus on when writing your business plan.
Invest time in market research
Starting an agriculture operation requires significant startup costs. When you throw in the unique land use considerations involved, it’s crucial to conduct thorough market research before investing hundreds of thousands – or even millions – of dollars into a farm business.
Start by researching the types of farms operating in your locality and wider region, and the specific crops or livestock they specialize in. You will need to understand seasonal trends, including crop yields and livestock productivity.
Note the demographics of the local community to understand their buying habits and preference for local produce. Also, be aware of the competitive landscape and how your farm can differentiate itself from others. All of this information will inform your service, pricing, marketing, and partnership strategy.
From there, you can outline how you plan to reach your target market and promote your farm’s offerings.
Craft your agriculture go-to-market strategy
One of the things that makes an agriculture farm business plan different from some service-based business plans is that you might decide to work only with one or two businesses that purchase your goods.
You may offer different tiers of products to different types of buyers, such as produce for an organic farmers market, and corn for another farm’s animal feed. If that’s the case, make sure you include ideas like setting aside land for organic growth and maintenance.
Discuss your advertising and promotional strategies, emphasizing channels relevant to your target market. Also, consider how partnerships with local businesses, farmers’ markets, and other industry stakeholders can enhance your visibility.
Include your pricing strategy and any special promotions or loyalty programs. Also, consider public relations and media outreach efforts that can raise awareness about your farm and its sustainable practices.
Prepare for unique farming challenges
Running an agricultural business comes with its own set of challenges, including weather-related disruptions and market volatility. Your business plan should identify these potential risks and present contingency plans to address them.
Include a plan to mitigate weather-related risks, such as crop diversification, employing weather-resistant farming practices, investing in appropriate infrastructure like greenhouses or drainage systems, or taking out insurance to cover weather-related losses.
Detail the operational aspects of your business , including land ownership, employee status, farm maintenance, and safety requirements. Also, illustrate your strategies for managing crop production, livestock care, land stewardship, and regulatory compliance.
Plan for the future
Contingency planning is important in all businesses.
But the unique challenges in agriculture of changing market dynamics, regulatory changes, and climate impacts make it especially necessary to plan for the future. Detail how you’ll measure success, and how you will be prepared to adapt your offerings if you need to change the focus of the business due to factors outside your control.
Also, be ready to discuss opportunities for scaling your business over time, such as introducing new crops, expanding farm operations, or opening additional locations.
- Get started with your farm business plan sample
There are obviously plenty of reasons farm owners can benefit from writing a business plan — for example, you’ll need one if you’re seeking a loan or investment. Even if you’re not seeking funding, the process of thinking through every aspect of your business will help you make sure you’re not overlooking anything critical as you grow.
Download this agriculture farm sample business plan PDF for free right now, or visit Bplans’ gallery of more than 550 sample business plans if you’re looking for more options.
See why 1.2 million entrepreneurs have written their business plans with LivePlan
Elon is a marketing specialist at Palo Alto Software, working with consultants, accountants, business instructors and others who use LivePlan at scale. He has a bachelor's degree in journalism and an MBA from the University of Oregon.
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Downtown Hutch Master Plan to include hotel, loft apartments, and museum
Posted: December 1, 2023 | Last updated: December 1, 2023
HUTCHINSON, Kan. (KSNW) — The Hutchinson Reno County Chamber of Commerce showcased its concepts for an improved downtown and invited the public to check it out. The “Downtown Hutch Master Plan” includes some major upgrades, like new loft apartments, a new hotel, and a museum. Upgrades that some say are desperately needed in the Salt City.
Eighteen months of frustration for Ol’ Jake’s Deli manager Cody True.
“Me personally, I see Main Street as not friendly for a newer business like this,” said True.
They decided to move Ol’ Jake’s Deli from their Main Street location.
“We’d have days, not a single person. You know, it would be 3-4 days in a row, maybe one or two people,” said True.
The Hutchinson Reno County Chamber of Commerce wants to change that with their new concept. It aims at improving foot traffic downtown by utilizing existing buildings that are sitting empty, like the Landmark Building on Main Street.
“We don’t have any real cool housing for the young professional to live in, so that’s what we’re going to make it is young professional housing in 40 apartments. The main floor will be commercial,” said Laura Meyer-Dick, vice president of First Kansas Bank .
Meyer-Dick, who purchased the Landmark Building, said she is following through with one of her dad’s goals, revitalizing Downtown Hutch.
According to Debra Teufel, the vice president of the Hutchinson Chamber of Commerce, the plan goes beyond housing and business improvements.
“We can, through the plan, look at spaces for a new hotel to be built. We are also trying to create an entertainment district, with some amenities, that might include a tourist attraction,” said Teufel.
Some business owners who currently have shops on Main Street believe the “Master Plan” is a step in the right direction.
“With the Landmark coming, it is exciting just having more people living downtown because logistically, they can participate in the downtown activities that we have,” said Malynda Jarrett, Sugar Time Confections owner.
The plan also provides easier access, with walkways and additional parks to free up congestion.
As for the next steps, Teufel says the plan will be presented to the city council and planning commission on Dec. 19.
For the latest news, weather, sports, and streaming video, head to KSN-TV.
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