Hotel Business Plan Template
Your first step in creating a hotel business plan is to create the Executive Summary, which is a few paragraphs that give a broad strokes overview of your business. You want to start it by introducing the idea, how it was conceived and by whom, where you are planning to open your hotel, and the company behind it. The goal is to create a narrative and your opening paragraph should serve as that narrative’s introduction.
Because location is so important with a hotel, the next step is to get a little in depth with regard to the area in which it is being built. Are there tourist attractions nearby? Why does the area fit your vision? This gives the reader lots of context with regard to the setting in which your hotel will be located. The actual hotel facilities are very relevant to your Executive Summary. How tall will your hotel be? Will it have a waterfront view? Again, we are trying to really paint a picture in the Executive Summary that can be fleshed out with the details that are in the rest of the plan. You may have other information that is specific to your vision, and anything you deem relevant to getting that vision across can go in the Executive Summary. Additionally, if you are looking for funding, you may want to place something similar to the following at the bottom:
In order to fulfill our vision we will require [AMOUNT] in capital, which will be allocated roughly according to the following table:
Use of Capital
If we are fully capitalized, we hope to be profitable by [TIME].
Next you want to describe, in reasonable detail the assumptions you are making to come to the conclusion that you will be profitable by the time you are describing. You don’t need to go into details profit and loss analysis here (that can come later) but make sure you are setting the reader up to understand why your projections make sense.
A hotel’s target clientele is very important and varies widely from the low end to the high end. The clientele you target will be dependent on a number of factors including location, how luxurious your facilities are, and the nearby attractions. Be sure to refer back to the picture you have previously painted to fit your stated demographic.
With a hotel business, it is easy to determine who your competition is as you will be in direct competition with other local hotels, and depending on where you are positioning yourself in the market, possibly hostels, motels, and bed & breakfasts. Analyzing this competition to understand exactly what their strengths and weaknesses are is vital to developing your marketing plan.
Our Specific Marketing Plan
Given all that you have described regarding your demographic and competition, you should be able to make your reader understand why your marketing plan gives you an advantage in the market you have established in the previous paragraphs. Be creative, and don’t be afraid to explore strategic partnerships with travel agencies and other businesses that can funnel clientele to your hotel. Remember, most of your clientele will be arriving from places outside your location so much of your marketing has to be directed outward.
If your hotel has not been built, you will have to describe to your reader what your hotel is going to look like. This is something you should have already started to describe in your Executive Summary, but here is where you get into detail. If you have mockups of the facilities to be built and the rooms in which your guests will stay, you should absolutely include them here. You want them to see your vision so get as detailed as possible – this is a big selling point in the hospitality industry. You may also want to get into other services that your hotel will provide on-site. Catering, event hosting, and the like. Additionally, you can describe the regular food services that you will offer – for instance, an on-site restaurant, a bar, or room service.
In building your operations plan, you should expect to get into the real behind-the-scenes details. If you have food on-site then talk about your suppliers. Personnel, licenses, and general expenses can also be described here.
When discussing supply arrangements you have, for food, furniture, or anything else that you need to purchase, you should first discuss any agreements you have entered and the basic terms of the agreement. Your reader doesn’t need all the details, just enough to get a flavor for the arrangements you have come to. Additionally, you should discuss any arrangements you will be seeking that you need.
A hotel staff is vital to its operation. Here, you want to discuss how many on-site staff you will have generally during hours of operation (and overnight of course) as well as your cleaning staff and any food service staff.
Hospitality businesses will always need to get certain licenses that may vary across locations. This is relevant for this portion of the plan and your requirements should be described in detail here.
Describe your periodic expenses, of which you will have many if you are running a hotel.
We expect our monthly outlay of expenses to approximate to the following:
Type of Expense
In this section you want to describe the key figures in your company – President, CEO, your Board of Directors. For each person, create a comprehensive biography and profile. Sometimes investors care more about the team and the team’s experience more than anything else. Don’t be afraid to include personal details either. Investors like to put their money with people they like and people they trust, and details like hobbies, family and the like can endear these key parties to the reader.