Amount
Use of Capital
If we are fully capitalized, we hope to be profitable by (MM/DD/YYYY)
Our Clientele
Our Competition
Our Specific Marketing Plan
Operations plan.
Our Suppliers
Our Personnel
Expense Projection
We expect our monthly outlay of expenses to approximate to the following:
Amount | Type of Expense |
---|---|
| |
| |
| |
Describe here
[Sender.FirstName] [Sender.LastName]
[Client.FirstName] [Client.LastName]
Care to rate this template?
Your rating will help others.
Thanks for your rate!
Analyze prices and competitors now. Try Smartpricing Free!
Step-by-step instructions and Excel file to write your first business plan
Detailed instructions.
This guide is a real handbook on how to write a business plan from scratch, even if you have never done it before. Inside you will find all the basic sections with clear explanations that will walk you through the compilation step by step, reducing the risk of mistakes or oversights.
To draw up your business plan you will have to handle numbers and financial data, which are essential for establishing projections of growth, profitability and stability of your accommodation. In the guide you will find the button to access an Excel chart with preset formulas and instructions for using them.
We know how difficult it can be to bridge the gap between theory and practice. That's why our handbook provides not only a list of the sections and steps you need to take to compile your business plan, but also concrete examples related to hotels, B&Bs, resorts, and vacation rentals.
Defining your goals and the means to achieve them is easier if you have a road map to follow. A business plan protects you from wrong "hunches," paving the way for success.
My facility has been open for some time. do i still need a business plan.
Yes! The business plan is not only needed for "big projects," for new openings or to participate in public tenders, but it is a useful tool for all accommodations, even those that are small to medium-sized or have already been in the market for years. You can use it to recalibrate your strategy, assess the feasibility of new products or services, better plan your resources, and unearth new opportunities to cope with a moment of crisis.
It is normal to find some difficulty in creating a business plan, especially if it is your first time, because it is an extensive document that must contain your facility's current situation, market trends, and your goals for the future. Our business plan template is easy to fill out because not only is it structured with step-by-step instructions, but it also contains practical examples of how to complete it, so you can understand exactly what to write.
Sure! The resource you will get is an editable PDF, so all you have to do is open it on your computer and follow the directions by filling in each section directly. Also, within the PDF, you'll find a button to immediately access the accompanying Excel as well, which you'll need for the financial and analysis part. The two documents are designed to be used together, so you will also find instructions on how to integrate them step by step.
Turn your dreams into reality with a comprehensive hotel business plan.
Studies show that entrepreneurs who finished their business plan were twice as likely to succeed in growing their business than those with no plan. A hotel business plan provides a detailed roadmap of what needs to be accomplished and why and gives potential investors insight into your business idea.
Included in this business plan are templates for:
What is hotel revenue management the beginner’s guide.
If you want to start a new hotel business or expand your existing hotel, you need an effective business plan.
The following hotel business plan template gives you the key elements to include in a solid business plan. In addition to this template, a solid plan will also include market research to help you better understand the hospitality industry trends, and how you plan to attract customers. It will also help you craft your mission statement, marketing plan and strong financial projections.
You can download our Hotel Business Plan Template (including a full, customizable financial model) to your computer here.
Below are links to each of the key sections of a comprehensive business plan for a hotel:
Comments are closed.
July 6, 2023
Adam Hoeksema
The hospitality industry offers immense potential, while some might believe that operating a hotel is straightforward, involving only accommodations and foot traffic, careful planning and meticulous execution are essential for achieving success, hence a well-structured business plan is indispensable.
Our primary expertise lies in hotel financial projection models but we understand that some of our clients require comprehensive business plans. That's why we've taken the initiative to delve into this topic and cover the following:
How to select a location for a hotel, how to analyze the competition for a hotel, how to create financial projections for a hotel, example hotel business plan, hotel business plan faqs, why write a business plan for a hotel.
For Hoteliers seeking financial support from investors, banks, or financial institutions, a well-structured business plan is a fundamental prerequisite. Demonstrating a thorough evaluation of the market, a clear and strategic approach, and a thoughtful assessment of potential risks and rewards is paramount to attracting the necessary funding for your venture.'
A hotel business plan should provide investors and lenders with compelling reasons why guests will choose your hotel, demonstrate why you or your team are the ideal operators for the hotel, and present a financial projection that ensures their investment is secure. Below is a comprehensive outline of our complimentary hotel business plan template .
We suggest the following sections for your Hotel business plan
Executive Summary
Company Description
Market Analysis
Product and Service Offerings
Marketing Plan & Customer Acquisition
Operating Plan
Financial Plan
Choosing the right location for your hotel is a critical step in ensuring its success and captivating your target audience. To help you make the best decision, we present three essential points to consider when selecting a location for your hotel Local Demand and Visitor Profile: Assess the local demand for hotel accommodations in the area. Analyze the type of visitors who frequently visit the locality, such as tourists, business travelers, or event attendees. Understanding the local visitor profile will help you tailor your hotel's offerings to meet their needs and preferences.
Proximity to Key Points of Interest: Look for a location that is in close proximity to key points of interest within the local area. This could include popular tourist attractions, convention centers, business districts, or entertainment venues. Being near such attractions increases the chances of attracting more guests and ensures a steady flow of potential customers.
Accessibility and Transportation Links : Ensure that the location is easily accessible by various modes of transportation. Consider the distance from major transportation hubs like airports, train stations, and bus terminals. Also, evaluate the availability of public transportation options nearby, as this will make it convenient for guests to travel to and from your hotel.
By focusing on these three points, you can identify a suitable local location for your hotel that caters to the specific needs of the local market and maximizes its potential for success.
There are a couple of tools that I like to use when analyzing the competition in the hotel industry.
Ahrefs – Ahrefs will allow you to look up a competitor hotel's website, and you can see how much organic traffic they are getting and exactly what keywords are sending that traffic. For example, we can see that the Bottleworks Hotel in Indianapolis is receiving roughly 3,500 monthly visits from organic Google Search.
We can also see what keywords are sending the most traffic to that page below:
By understanding the SEO strategies and keywords that competitor hotels are targeting, you can develop your content and marketing strategies to compete in the same spaces or identify underserved areas to capitalize on. This can assist in improving your hotel's online presence and attracting more guests through search engines.
TripAdvisor – Although mainly known as a review site, TripAdvisor can be a free and powerful tool for analyzing competition within the hotel industry. You can see guest ratings, read reviews, and understand what customers appreciate or dislike about different hotels in your area. This qualitative information can help you identify where your competitors are succeeding or failing and where you might have an opportunity to differentiate your services.
Just like in any industry, the hotel business has its own unique factors that impact financial projections, such as occupancy rates, room pricing, seasonal demand, and guest service expenditures. Utilizing a hotel financial projection template can simplify the process and increase your confidence. Creating accurate financial projections goes beyond showcasing your hotel venture's ability to generate revenue; it's about illustrating the financial roadmap to profitability and the realization of your hospitality goals.
To develop precise projections, consider the following key steps:
Estimate startup costs for your hotel business, including property acquisition or leasing, renovation or construction, furnishing and decoration, staff training, and initial marketing and branding expenses.
Forecast revenue based on projected occupancy rates, average room prices, ancillary service income (such as restaurants, spas, conference facilities), and potential growth in the customer base.
Project costs related to ongoing operations like housekeeping, food and beverage services, guest amenities, and maintenance.
Estimate operating expenses such as staff salaries, utility costs, property insurance, marketing expenses, guest support, and administrative costs.
Calculate the capital needed to launch and sustain your hotel business, covering initial expenses and providing working capital for continued growth, including funds for unforeseen challenges such as seasonal fluctuations.
While financial projections are a critical component of your hotel business plan, seek guidance from experienced professionals in the hotel industry. Adapt your projections based on real-world insights, leverage industry resources, and stay informed about hospitality trends and evolving consumer behavior to ensure your financial plan aligns with your goals and positions your hotel venture for long-term success.
Explore our Hotel Business Plan, presented below. If you prefer, you can access a downloadable Google Doc version of this hotel business plan template , allowing you to personalize and tailor it to your specific needs. Additionally, a helpful video walkthrough is available, guiding you through the process of customizing the business plan to perfectly align with your unique hotel concept.
1. executive summary.
1.1 Organization Overview
1.2. Objectives
1.3. Mission Statement
2. Organization Description
2.1. Organization History
2.2. Legal Structure
2.3. Unique Value Proposition
2.4. Target Beneficiaries
3.1. industry overview.
3.2. Collaborator and Competitor Identification
3.3. Target Beneficiaries
4. Marketing and Fundraising
4.1. Strategic Plan
4.2. Program or Service Offerings:
4.5. Promotions and Fundraising
5. Organizational Structure and Management
5.1. Organization’s Facility & Location
5.2. Staffing Plan and Volunteer Management
5.3. Governance, Financial Management, and Accountability
6. financial plan.
6.1. Startup Costs
6.4. profit and loss statement, 6.5. cash flow projections, 6.6. break-even analysis, 7. appendix.
7.1. Supporting Documents
7.2. Glossary of Term
7.3. References and Resources
1.1. company overview.
Briefly introduce the hotel's background, products or services, and target market.
- Example: Seaside Crest is a tropical-themed hotel located in Key West, Florida, offering a unique and luxurious experience for guests seeking a beachfront getaway.
Outlines the hotel's short-term and long-term goals.
- Example: Establish Seaside Crest as the premier destination for tropical hospitality in Key West, providing exceptional service and unforgettable experiences for our guests.
- Example: Long-term: Expand our presence in other tropical destinations while maintaining our commitment to quality and guest satisfaction.
Describes the hotel's purpose and core values.
- Example: At Seaside Crest, our mission is to create a haven of relaxation and tropical paradise for our guests. We are dedicated to delivering exceptional hospitality, breathtaking surroundings, and personalized service, ensuring that every guest's stay is a memorable one.
Highlights the factors that will contribute to the hotel's growth and success.
- Example: The success of Seaside Crest lies in our commitment to creating a tropical ambiance, offering top-notch amenities, providing outstanding customer service, and delivering a seamless guest experience.
2.1. company history.
Provides context on the hotel's background and founding story.
- Example: Seaside Crest is the brainchild of founder and hotelier, Emily Roberts, who envisioned creating a tropical paradise in Key West, Florida. With a passion for hospitality and a deep love for the coastal beauty of the region, Emily embarked on the journey of bringing Seaside Crest to life.
Describes the hotel's legal structure (e.g., sole proprietorship, partnership, LLC, corporation).
- Example: Seaside Crest operates as a limited liability corporation (LLC)
Emphasizes the hotel's competitive advantage or unique offerings.
- Example: Seaside Crest distinguishes itself by offering a one-of-a-kind tropical-themed experience, combining luxurious accommodations, breathtaking beachfront views, vibrant island-inspired decor, and personalized service.
Defines the hotel's ideal customer base.
- Example: Seaside Crest caters to discerning travelers and vacationers who seek an extraordinary beachside retreat in Key West, Florida.
Presents a general overview of the industry, its trends, and growth potential.
- Example: The tropical hotel industry in Key West, Florida, is a thriving sector driven by the city's popularity as a tourist destination, the allure of its tropical climate, and the abundance of natural beauty that surrounds it.
Evaluates the hotel's direct and indirect competitors, as well as their strengths and weaknesses.
- Example: Other hotels and resorts in Key West offering tropical-themed accommodations.
- Example: Vacation rentals, bed and breakfast establishments, and boutique hotels in the area.
Explores the hotel's target customers, their demographics, preferences, and pain points.
- Example: Seaside Crest targets vacationers and travelers seeking a tropical getaway in Key West. Our primary market includes couples, honeymooners, and families looking for luxurious accommodations with a distinct tropical ambiance and proximity to the beach.
Identifies potential opportunities for the hotel to grow within the market.
- Example: Seaside Crest can capitalize on market opportunities by offering unique amenities and experiences such as beachfront dining, spa services inspired by tropical traditions, and curated excursions to explore the natural wonders of Key West. Collaborations with local businesses for island-inspired dining and entertainment can further enhance the guest experience.
4.1. product or service offerings: .
Describes the hotel's products or services in detail.
- Example: Seaside Crest offers a range of tropical-themed accommodations and amenities, including luxury guest rooms, beachfront dining, spa services, and curated excursions.
Outlines the hotel's approach to pricing its products or services.
- Example: Seaside Crest adopts a competitive pricing strategy, providing value for money while maintaining the exclusivity and high-quality experience associated with a tropical-themed hotel.
Explains how the hotel plans to generate sales and build customer relationships.
- Seaside Crest will implement a comprehensive sales strategy that includes online booking platforms, direct marketing to travel agencies, and partnerships with local tour operators to attract and engage potential guests.
Describes the methods through which the hotel will deliver its products or services to customers.
- Example: Seaside Crest will primarily distribute its services through online travel agencies, direct bookings through its website, and collaborations with travel agencies specializing in tropical getaways.
Details the hotel's promotional efforts and advertising strategies.
- Example: Seaside Crest will employ targeted marketing initiatives, utilizing social media and search engine platforms, to enhance brand visibility and attract new guests seeking a tropical-themed hotel experience in Key West..
5.1. facility location and layout.
Specify the hotel's physical business location and refer to the internal arrangement and organization of the space.
- Example:Seaside Crest will secure a prime location in Key West, strategically positioned in close proximity to the beach and popular tourist attractions. The hotel's layout will be designed for optimal guest comfort and convenience, with thoughtfully arranged spaces and amenities.
Cover the hotel's comprehensive approach to safety and security, including surveillance systems, access control measures, etc.
- Example: Seaside Crest will prioritize the safety and security of our guests and staff. We will implement robust security measures, including surveillance systems, access control, and trained personnel to monitor and respond to any potential threats or emergencies.
Involves the hotel's procedures to ensure high standards of cleanliness, hygiene, etc.
- Example: Our dedicated housekeeping staff will maintain the highest standards of cleanliness throughout the hotel, including guest rooms, common areas, and amenities. We will follow strict protocols to ensure a hygienic and pleasant environment for our guests.
Involves energy-efficient practices and technologies to minimize energy consumption, reduce utility costs, and promote sustainability
- Example: As a responsible and sustainable hotel, Seaside Crest will strive to minimize energy consumption and reduce our environmental impact. We will implement energy-efficient practices, such as using energy-saving appliances, LED lighting, and smart systems for temperature control.
includes tracking and controlling supplies, equipment, and amenities to optimize operations.
- Example: Seaside Crest will employ an efficient inventory management system to track and manage hotel resources, including linens, toiletries, and other supplies. This system will ensure optimal inventory levels, minimize waste, and support smooth day-to-day operations.
All of the unique Hotel projections you see here were generated using ProjectionHub’s Hotel Financial Projection Template. Use PH20BP to enjoy a 20% discount on the template.
Provide a detailed breakdown of the total startup costs requirements, and where you plan for those funds to come from. You will also want to break down how the startup costs will be used including working capital to cover losses before the business breaks even.
- Example: The total startup costs for Seaside Crest are estimated at $7,335,552. The owner plans to secure a business loan of $15,000, with $7,500,000 contributed through personal funds.
Provide an estimate of the hotel's future revenue based on market research and assumptions.
- Example: Seaside Crest projects increasing revenue over the next five years, with $3,282,587 in the first year and reaching $5,938,052 by the fifth year.
Estimates the hotel's future expenses, including fixed and variable costs.
- Example: Seaside Crest's expenses include cost of goods sold, operating expenses, and direct labor and supply costs for the hotel, restaurant, spa, and events.
Summarizes the hotel's revenue, expenses, and net income over a specific period.
- Example: Seaside Crest expects to achieve net income of $375,657 in the first year, growing to $1,845,652 by the fifth year, demonstrating a consistent increase in profitability.
Outlines the hotel's projected cash inflows and outflows.
- Example: Cash flow projections for Seaside Crest consider the seasonality of the hotel industry, ensuring effective financial management throughout the year.
Determines the point at which the hotel's revenue equals its expenses.
- Example: Seaside Crest anticipates reaching its break-even point within the first year of operation, indicating a strong potential for early profitability in the hotel industry.
Includes any relevant documentation that supports the information presented in the business plan, such as resumes, financial projections, market research data, and permits or licenses.
Provides definitions for industry-specific terms used throughout the business plan to ensure reader comprehension.
Lists any sources or resources referenced during the preparation of the business plan, including industry reports, market research data, and relevant publications.
How do I start a hotel business from scratch?
Starting a hotel business from scratch involves several key steps. Begin by conducting market research to identify a suitable location and target market. Develop a detailed business plan that outlines your hotel's concept, services, and financial projections. Secure funding through personal savings, loans, or investors. Obtain necessary permits and licenses and hire staff with hospitality experience.
What type of hotel should I open, and how do I choose a niche?
The type of hotel you open depends on your target market and location. Consider factors such as the level of service, amenities, and price range. Choose a niche that aligns with your interests and the demand in the local market. Options include boutique hotels, budget accommodations, luxury resorts, or themed hotels.
What marketing strategies can I use to promote my hotel?
Use a mix of digital marketing, social media, content marketing, and search engine optimization (SEO) to reach potential guests online. Collaborate with local tourism boards, travel agencies, and event planners to promote your hotel. Encourage positive reviews and testimonials to build credibility.
Adam is the Co-founder of ProjectionHub which helps entrepreneurs create financial projections for potential investors, lenders and internal business planning. Since 2012, over 50,000 entrepreneurs from around the world have used ProjectionHub to help create financial projections.
How to start a non-emergency medical transportation business.
This article is a guide on learning more about how to start a non-emergency medical transportation business and the key financial assumptions necessary to create reliable financial projections.
Learn 5 key tips to make your startup business plan stand out and secure an SBA loan, from demonstrating market potential to creating realistic financial projections.
Learn practical steps to increase your SBA loan approval odds. This guide offers 8 straightforward strategies from an experienced SBA loan officer.
Bed and breakfast business plans.
Whether your business is a rustic retreat or a high-end bed and breakfast, these sample business plans for hotels, inns, resorts, and other lodging businesses will help you write a business plan that will guide you to business success.
Fill-in-the-blanks and automatic financials make it easy.
No thanks, I prefer writing 40-page documents.
Discover the world’s #1 plan building software
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.
Executive summary, business summary, business overview, market analysis.
Advertising and operational strategy, financial plan, step 1: start with a plan, step 2: make a proposition, step 3: make a marketing plan, step 4: get capital, step 5: build the small hotel, step 6: hire key workers, step 7: launch the hotel, share this post on your network, you may also like these articles.
In this comprehensive guide, we explore the essentials of creating an effective Floor Plan. Whether you are designing a new home, renovating an existing space, or planning an office…
In this comprehensive guide, we explore the essentials of creating an effective Nursing Care Plan. Whether you are a nursing student, a new graduate, or an experienced nurse, this…
You’ve probably decided to follow your dreams and open your very own hotel. But before you begin spending your financial resources and designing your hotel blueprint, you need to have a hotel business plan . It will guide you every step of the way and serve as your road map to the opening.
Hotel business plan example.
Size: A4, US
Size: 257 KB
Size: 653 KB
Size: 252 KB
Size: 367 KB
Size: 168 KB
Size: 744 KB
Size: 408 KB
Size: 60 KB
Size: 391 KB
A hotel business plan contains the goals of the owners, the methods, and the timeframe for accomplishing them. It also describes the hotel as a business, its recorded history, as well as its financial projections and information. They serve as a road map for the owners on how to run the hotel.
Statista reports that as of March 2020, the average daily rate of hotels in the United States to be $110.66 million. The current state of the world shows how a hotel business can go down without specific content in the plan. It has to be adaptable with unexpected events occurring all over the world by finding new ways of providing service and gaining profit. If you have never made a hotel business plan before, check out these tips for some ideas on your design.
Place the executive summary in your business plan’s introduction. Your mission statement serves as an introduction to your design. It’s typically a one-line statement that describes the essence of your company. This explains why you are in business or the market’s need for your services. Your plan’s objectives or business goals will then specify what you hope to accomplish with this corporate venture.
The concept you have for your hotel should contain a unique selling point to succeed in a competitive market. This general analysis comprises the distinctive qualities that differentiate your hotel business from others. Provide detailed information for this section to make it easier for investors and other stakeholders to grasp your ideas.
Market research and customer analysis is a vital aspect of your document. After all, you can’t serve a market you know nothing about. In-depth information about your target customers will help you determine the primary needs of this market segment in terms of location, amenities, and service.
This constitutes the management responsible for running key aspects of the business. You need to identify the type of staff members and administrative body your hotel business requires, such as the number of employees and their responsibilities.
Do i pay for my hotel stay before or after i check-in.
Generally, most hotels charge you for your stay when you are checking out, right after your stay in the hotel. However, you can also pay beforehand for your stay if you wish to book a room in advance.
Hotels are generally a good investment and make for an excellent source of income as long as you have a large market and an effective way to draw in customers. The economy can significantly impact the success or failure of your hotel.
It is usually the owner of the hotel who comes up with the business plan. However, one must be business savvy and have an education in hotel management when it comes to this. If the owner is not very knowledgeable, they can have a team prepare it for them instead.
Hotels vary depending on the characteristics they possess, including the services that they provide, the location, the prices, and whether the establishment is an independent firm or part of a chain operation. Whether you own a startup bed and breakfast or a 5-star luxury hotel, the only way it will thrive is to have a solid hotel business plan to guide your endeavors in the hospitality industry.
Text prompt
Create a study plan for final exams in high school
Develop a project timeline for a middle school science fair.
Elements of economic plan include several new tax incentives and preferences
Vice President and Democratic presidential nominee Kamala Harris today released details of elements of her economic plan. Among other items, Harris proposed several new tax incentives and preferences, including the following:
The plan does not include specifics on whether the revenue cost of these items would be offset, though it does state that Harris will ask “the wealthiest Americans and largest corporations to pay their fair share” and that the plan will reduce the deficit.
Harris also calls for Congress to pass the Stop Predatory Investing Act , which would eliminate certain tax benefits for investors who own large numbers of single-family homes.
Notably, with regard to President Biden’s oft-stated pledge not to increase taxes on those making less than $400,000, “Vice President Harris is committed to ensuring no one earning less than $400,000 a year will pay more in new taxes.”
This pledge suggests that, for the $4 trillion of “tax cliff” items scheduled to expire at the end of 2025, Harris appears committed to extending those tax cuts for individuals making $400,000 or less. Though it is worth noting that use of the word “new” raises some uncertainty as to how the pledge will be applied.
Harris does not in today’s release endorse, or otherwise mention, the official tax plan of the Biden-Harris Administration, the so-called Green Book . Her vow to raise taxes on large corporations and the wealthy, however, is consistent with many of the proposals included in the Administration’s plan. Among other things, that plan calls for a 7% increase in the corporate tax rate, a number of new taxes on multinational businesses, and new taxes on high-earning individuals. For more information on the FY2025 Green Book, read KPMG report: Tax proposals in FY 2025 budget .
Absent from today’s release is a proposal to exempt tip income from taxation. Harris has previously indicated that she (along with Republican nominee Donald Trump) supports this idea.
Finally, it should be noted that the sum total cost of all these proposals is several trillion dollars. Pursuing all of these ideas is likely to put significant pressure on finding new tax increases to offset the cost of these items.
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006.
All Formats
16+ hotel business plan templates – pdf, google docs, ms word, apple pages.
If you are planning to start a hotel business and don’t know how to plan it, we have got just the right solution for you. Simply download any of our plan templates that suits you. They come with a ready-made and suggestive content that can be modified as per your hotel requirements. By downloading them, you can ensure you do all the adequate hotel planning before you start-up your business.
Example of small hotel business plan template.
More in plan templates.
Resort hotel business plan template, hotel catering business plan template, luxury hotel business plan template, new start-up boutique hotel business plan template, lotus sea hot spring 5-star hotel business plan sample template, feasibility study and hotel business plan sample template, lisbon three star hotel accommodation business plan template.
Word templates, google docs templates, excel templates, powerpoint templates, google sheets templates, google slides templates, pdf templates, publisher templates, psd templates, indesign templates, illustrator templates, pages templates, keynote templates, numbers templates, outlook templates.
Advertiser Disclosure
If you’re looking to start a new hotel business, you’ve come to the right place since we’re going to show you exactly how to do it. We’ll start by sharing how to open a hotel step-by-step, then answer some frequently asked questions about running a hospitality industry business and being a successful hotel owner.
Importantly, a critical step in starting a hotel is to complete your hotel’s business plan. To help you out, you should download Growthink’s Ultimate Hotel Business Plan Template here.
Download our Ultimate Business Hotel Plan Template here
The first step to starting a successful hotel business is to choose your hotel’s name.
This is a very important choice since your hotel name is your brand and will last for the lifetime of your hotel. Ideally, you choose a name that is meaningful and memorable. Here are some tips for choosing a name for your hotel business:
One of the most important steps in how to start a hotel business is to develop a hotel business plan . The process of creating your hotel business plan ensures that you fully understand your market and your business strategy. The plan also provides you with a roadmap to follow and if needed, to present to potential investors for your business.
To enhance your planning process, incorporating insights from a sample hotel business plan can be beneficial. This can provide you with a clearer perspective on industry standards and effective strategies, helping to solidify your own business approach.
Your hotel business plan should include the following sections:
Next you need to choose a legal structure for your hotel and register it and your business name with the Secretary of State in each state where you operate your business.
Below are the five most common legal structures:
A sole proprietorship is a business entity in which the owner of the hotel and the business are the same legal person. The owner of a sole proprietorship is responsible for all debts and obligations of the business. There are no formalities required to establish a sole proprietorship, and it is easy to set up and operate. The main advantage of a sole proprietorship is that it is simple and inexpensive to establish. The main disadvantage is that the owner is liable for all debts and obligations of the business.
A partnership is a legal structure that is popular among small businesses. It is an agreement between two or more people who want to start a hotel business together. The partners share in the profits and losses of the business.
The advantages of a partnership are that it is easy to set up, and the partners share in the profits and losses of the business. The disadvantages of a partnership are that the partners are jointly liable for the debts of the business, and disagreements between partners can be difficult to resolve.
A limited liability company, or LLC, is a type of business entity that provides limited liability to its owners. This means that the owners of an LLC are not personally responsible for the debts and liabilities of the business. The advantages of an LLC for a hotel business include flexibility in management, pass-through taxation (avoids double taxation as explained below), and limited personal liability. The disadvantages of an LLC include lack of availability in some states and self-employment taxes.
A C Corporation is a business entity that is separate from its owners. It has its own tax ID and can have shareholders. The main advantage of a C Corporation for a hotel business is that it offers limited liability to its owners. This means that the owners are not personally responsible for the debts and liabilities of the business. The disadvantage is that C Corporations are subject to double taxation. This means that the corporation pays taxes on its profits, and the shareholders also pay taxes on their dividends.
An S Corporation is a type of corporation that provides its owners with limited liability protection and allows them to pass their business income through to their personal income tax returns, thus avoiding double taxation. There are several limitations on S Corporations including the number of shareholders they can have among others.
Once you register your hotel, your state will send you your official “Articles of Incorporation.” You will need this among other documentation when establishing your banking account (see below). We recommend that you consult an attorney in determining which legal structure is best suited for your company.
In developing your hotel business plan, you might have determined that you need to raise funding to launch your business. Determining whether you want to purchase and renovate or build a new structure will majorly impact when you can open your new hotel and the amount of funding you will need.
If so, the main sources of funding for a hotel to consider are personal savings, family and friends, credit card financing, bank loans, crowdfunding and angel investors. Angel investors are individuals who provide capital to early-stage businesses. Angel investors typically will invest in a hotel that they believe has high potential for growth.
Having the right space is important for your hotel and choosing the best location can have a major impact on your business.
To find the right space, consider:
If you plan to build a new structure for your hotel, you will also need to work with architects to establish a timeline and determine construction costs.
Next, you need to register your business with the Internal Revenue Service (IRS) which will result in the IRS issuing you an Employer Identification Number (EIN).
Most banks will require you to have an EIN in order to open up an account. In addition, in order to hire employees, you will need an EIN since that is how the IRS tracks your payroll tax payments.
Note that if you are a sole proprietor without employees, you generally do not need to get an EIN. Rather, you would use your social security number (instead of your EIN) as your taxpayer identification number.
It is important to establish a bank account in your hotel’s name. This process is fairly simple and involves the following steps:
You should get a business credit card for your hotel to help you separate personal and business expenses.
You can either apply for a business credit card through your bank or apply for one through a credit card company.
When you’re applying for a business credit card, you’ll need to provide some information about your business. This includes the name of your business, the address of your business, and the type of business you’re running. You’ll also need to provide some information about yourself, including your name, Social Security number, and date of birth.
Once you’ve been approved for a business credit card, you’ll be able to use it to make purchases for your hotel. You can also use it to build your credit history which could be very important in securing loans and getting credit lines for your business in the future.
Every state, county and city has different business license and permit requirements.
Nearly all states, counties and/or cities have license requirements for hotel, including:
Be sure to check local government guidelines to determine which licenses and permits hotels are required to obtain in your area.
The right business insurance is important to protect your new hotel. Business insurance policies that you should consider for your hotel include:
Beyond the furniture and equipment you will need in each room, opening a hotel will also require some business equipment, including:
Marketing materials will be required to attract and retain customers to your hotel.
The key marketing materials you will need are as follows:
Most hotel businesses need a few types of software to run successfully.
First, you will need a PMS. This is software that helps you manage reservations, check-ins, and other aspects of your operations. Some popular options include Cloudbeds, Oracle Hospitality, and HOTELTIME.
You will also want to have a customer relationship management (CRM) system. This software helps you track interactions with customers, manage customer data, and market to potential guests. Many hotels use programs such as Experience Hotel, Oracle NetSuite, and Salesforce.
Additionally, you need to use accounting software such as Quickbooks or M3 to manage your hotel’s expenses.
Research the software that best suits your needs, purchase it, and set it up.
The quality of your hotel staff can make or break your business. You need to take the time to find, interview, and hire the right people.
Start by writing job descriptions for the positions you need to fill. Then, post the job openings online and in places where potential employees are likely to see them. Once you have a pool of candidates, conduct phone and in-person interviews to narrow down your choices.
Finally, once you have selected the employees you want to hire, provide training on your hotel’s policies and procedures. Additionally, give them a tour of the property and introduce them to other staff members. It helps to build out a strong sales team to prospect new business and nurture customer loyalty.
You are now ready to host a grand opening for your hotel. Make sure to include your grand opening event in your marketing plan and promote your hotel launch to the right target audience.
If you follow the steps above, you should be in a great position to build a successful business and know everything you need about how to start a hotel business. Below are answers to frequently asked questions that might further help you.
How to open a hotel faqs, is it hard to start a hotel.
Starting any business has its challenges and opening a hotel does require some planning and preparation. The biggest challenges in owning a hotel are securing funding for your new hotel, finding a great location to buy or build, and setting up systems that help your hotel achieve operational efficiency.
As with starting any business, having a good business idea, doing market research, and getting support from experts in the industry increase your chance of success.
If you have no experience in the hotel industry, you will need to find a good hotel management company. A hotel management company can help you with all aspects of starting and running your hotel. They will also be able to provide you with the necessary training.
There is no one-size-fits-all answer to this question. The type of hotel that is most profitable will depend on the location of your hotel and what is of value to the market in that area. A boutique hotel might be a huge success in a small city, while a family-friendly hotel could make more money when placed near a theme park. It is important to do market research to determine which type of hotel can be a profitable business in your area.
Again, there is no one-size-fits-all answer to this question. The cost of starting a hotel will depend on a number of factors, such as the location of your hotel, the type of hotel, and the level of service you offer. You will also have different upfront costs depending on whether you are building a new hotel or purchasing an existing structure.
With regards to building costs or buying an existing property, this varies tremendously based on the type of hotel (e.g., budget vs luxury) and hotel size (e.g., 5 rooms vs 500 rooms).
A hotel makes money by charging guests for the use of the hotel's facilities. The amount charged will depend on the type of hotel, the location, and the level of service offered. Beyond charging for guest rooms, hotels may also make money from additional amenities, such as in-house restaurants, room service, and high-speed internet access.
Owning a hotel business can be profitable, but the amount of profit is highly-dependent on a number of factors, such as the location of your hotel. You can improve the profitability of your hotel by offering a higher level of service, attracting more guests, and keeping your expenses low.
Hotel owners, operators and executives receive varied pay amounts based on the success of their hotel. According to Glassdoor, the typical Starwood Hotels & Resorts Vice President salary is $244,472, which is 45% above the national average.
The key financial metrics in the hotel market are as follows:
Industry profit is measured as earnings before interest and taxes. Industry profits have averaged 15.5% of sales in recent years.
The industry’s major expenses are purchases and cost of sales, such as bedding and room supplies. Many hotels also provide meals and liquor, either in individual rooms or in separate restaurants or dining areas.
Last year, purchases were estimated to account for 29.9% of an average operator’s revenue.
Labor is required in many aspects of hotel management, from front-of-house activities, such as front desk, concierge and related activities, to all back-of-house activities, including general management, accounting, marketing, room cleaning and servicing the kitchens, bars and restaurants.
Many hotel jobs have a low skill and training requirement, and employees can be hired on a part-time or casual basis. Because of this practice, many hotels have high staff turnover.
Therefore, there is a constant need for recruitment and training, which can be costly. Some hotel owners and operators have outsourced part of their staff services to specialist staff-recruitment agencies to lower recruitment costs.
Last year, industry wages accounted for approximately 25.7% of total industry revenue.
Rent and Utilities
Rent and utilities on average comprise 7.6% of hotel revenue.
Other Expenses
Marketing expenses and royalty fees are another significant cost for those industry participants that operate on a franchise basis. Franchisees typically pay an annual fee of 4.0% to 6.0% of total revenue.
Other major operational expenses include repairs and maintenance, promotional costs, commission paid to agents, bookings and internet fees, accounting and legal costs, motor vehicle expenses, stationery and printing, insurance and other administrative and overhead costs.
Hotels can fail for a number of reasons, including high expenses and low occupancy rates. Hotels can also fail due when owners misunderstand the market in an area and target the wrong customers or fail to do adequate research into hotel industry trends that impact their business.
Often, hotels begin to struggle due to poor management decisions that negatively impact the guest experience. Closely monitoring your spending and making sure your staff is performing well both go a long way toward making your hotel succeed.
According to IbisWorld, there are 74,372 hotels, and the hotel industry generated $166.5 billion in revenue in the United States alone last year. This represents an annual growth rate of 4.7% over the past 5 years.
Industry profits were $26.0 billion, and wages paid to hotel employees totaled $42.7 billion.
A hotel is an establishment that provides lodging and, often times, meals and other services for travelers and other paying guests. A motel, on the other hand, provides lodging for motorists in rooms usually having direct access to an open parking area.
A particular hotel or motel can be classified by a number of characteristics, including whether it provides full or limited service, whether or not it is located in a metropolitan area, the state or region in which it is located, its price or rate level, the number of rooms, and whether it is independent or part of a chain operation.
Hotels and motels can also be segmented by room price rates. The establishments with room rates in the highest 30 percentile that are located in local or metropolitan markets are classified as upscale or luxury. The middle 30 percentile is classified as mid-priced, and the lowest 40 percentile as either economy or budget.
Overall, sales from hotels account for 87.4% of industry revenue and 82.0% of industry employment, though they account for only 44.0% of industry establishments.
Hotels that consist of 25 or more rooms provide 83.6% of industry revenue (with 62.7% of industry revenue coming from guest room rentals, 12.5% coming from food and alcohol sales, 4.2% coming from conference and meeting rooms and 4.2% coming from other charges), while hotels that offer fewer than 25 rooms only constitute 3.8% of industry revenue.
Motels provide about 12.6% of industry revenue. The relative proportion of revenue from each of these segments has been relatively stable over the past five years, although motels experienced some growth at the expense of higher-priced hotels during the recession.
A number of factors affect the performance of the hotel industry. These drivers include:
As specified above, there are 74,372 hotels in the United States.
The market leaders (in terms of market share) include Hilton Worldwide Holdings Inc. (13.7%), Marriott
International Inc. (13.5%) and InterContinental Hotels Group PLC (7.5%).
The rest of the market is comprised of many smaller players.
Recent demographics show that totel guests are comprised of:
Starting a hotel requires careful choice of a location and strategy, a business plan, access to considerable financial resources, and a customer service mindset.
1) Location and Opportunity
The location for your hotel is highly linked with the opportunity that you feel there is for your hotel. In the right location, where competitors are not fulfilling all customer needs, a hotel can thrive. However, in a beautiful neighborhood that happens to have heavy competition from existing hotels, success may not be so forthcoming. Likewise, if the neighborhood leaves too much to be desired, you may not be able to price the rooms low enough to encourage travelers to stay at your hotel, even if you are within walking distance of key attractions.
2) Strategy
The next step is to know how customers will answer the question “why my hotel?” How will you tailor your services to the customers you want to attract, whether they are families with kids, couples on romantic vacations, businesspeople, or international tourists? Consider the combination of amenities, atmosphere, location, and services that will be right for your customers. Always keep in mind that strategy means making tradeoffs – it is almost impossible to be everything to everyone and succeed. You might have to forgo a certain customer target market in order to make your service offering perfect for your most desired customers.
3) Planning
A hotel business plan is necessary not only for you to think through how you will take on the opportunity, but for you to convince any investor or lender that you have the ability to do so. No savvy investor will be attracted by a lack of planning. There is no excuse to not create a plan with the wealth of information available on writing business plans and even business plan templates tailored to the hotel business sector.
4) Fundraising
Whether you buy an existing hotel, build one from scratch, or renovate a building into a hotel, you will need millions of dollars to invest. Assuming you do not have this money, you will need to seek bank loans and/or angel investment in your hotel. As you will be working with considerable assets, dependable and experienced legal and accounting help is a must as you create deals with investors.
5) Hospitality Mindset
Finally, you must have an ingrained sense of how you want your guests to be treated so that you can instill this mindset in your top management and they can, in turn, teach this to the staff. Staying at a hotel can be stressful and uncomfortable, and guests demand the highest attention to their needs or they will have no problem complaining loudly and publicly. If employees sense you have higher motives than customer satisfaction, customer service may fall by the wayside and your hotel business may fail or never take off in the first place.
The first step to starting a hotel is to develop your hotel business plan . Growthink provides products and services to help you develop a professional business plan and turn your dream into reality.
You can download our hotel business plan PDF template here. This is a business plan template you can use in PDF format.
For additional information on the hotel market, consider these industry resources:
Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.
Click here to see how Growthink’s professional business plan consultants can create your business plan for you.
IMAGES
COMMENTS
Our boutique hotel business plan is structured to cover all essential aspects needed for a comprehensive strategy. It outlines the hotel's operations, marketing strategy, market environment, competitors, management team, and financial forecasts. Executive Summary: Provides a snapshot of your Boutique Hotel's business concept, including ...
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.
15+ Hotel Business Plan Samples - PDF, Word. Hotels are one of the most lucrative businesses one can get into. They are especially profitable if the hotel business plan in question is located in a busy city or near a popular tourist destination. Being part of the hospitality industry, you will never run out of customers as long as your hotel is managed properly.
While writing a comprehensive business plan, you should include the following 10 key components in your hotel business plan: 1. Executive Summary. An executive summary is the first and foremost section of a hotel business plan, providing a high-level overview of your entire business strategy. Generally, it would be written at the end once all ...
A hotel business plan is a plan to start and/or grow your hotel business. Among other things, it outlines your business concept, identifies your target customers, presents your hotel marketing plan and details your financial projections. You can easily complete your hotel business plan using our Hotel Business Plan Template here.
Sample from Growthink's Ultimate Hotel Business Plan Template: The Marketing Plan describes the type of brand [Company Name] seeks to create and the Company's planned promotions and pricing strategies. The [Company Name] Brand. The [Company Name] brand will focus on the Company's unique value proposition: • Offering business-class rooms ...
For those seeking a customized solution, we offer a downloadable 'Hotel Business Plan PDF'. This document is crucial for entrepreneurs determined to create a compelling and effective strategy for launching or expanding their hotel services. The 'AI Business Plan Generator' serves as a detailed guide, offering deep insights into the hotel industry.
BUSINESS PLAN. Sunrise and sunset right from your bed. Prepared By. John Doe. (650) 359-3153 10200 Bolsa Ave, Westminster, CA, 92683 [email protected] https://upmetrics.co. Table of Contents. Executive Summary4 Business Overview 5 Management 5 JOHN DOE 5 Objectives 5 Mission Statement 5 Location and Facility 6.
Hotel Business Plan. If you want to start a new hotel business or expand your current one, you need a business plan. Over the past 20+ years, we have helped over 5,000 entrepreneurs and business owners create business plans to start and grow their hotel businesses.
2.0 Business Plan Give a high-level overview of your hotel business plan - short and concise. Include your mission statement and your objectives. Dive deep into the story of your brand - who you are, your unique selling points and your target audience. Demonstrate that you understand the market you'll be
A business plan is exactly that: your recipe for success! A business plan is not only necessary if you are preparing to open a new hospitality business; it is a detailed technical document that helps you establish: your hotel's goals: e.g., improve customer service, achieve a certain occupancy rate, increase turnover over the previous year, etc.
A hotel business plan is a document that describes how a specific hotel expects to earn and how much will it cost to get it up and running. Writing it is a good way for an aspiring hotelier to understand the risks involved. It can also be used to get investors and partners on board, as a well-written business plan shows the hotel's potential. ...
To draw up your business plan you will have to handle numbers and financial data, which are essential for establishing projections of growth, profitability and stability of your accommodation. In the guide you will find the button to access an Excel chart with preset formulas and instructions for using them. 3.
A hotel business plan provides a detailed roadmap of what needs to be accomplished and why and gives potential investors insight into your business idea. Included in this business plan are templates for: And more! Turn your dreams into reality with a comprehensive hotel business plan template. Includes 10 sections from objectives to financials.
The following hotel business plan template gives you the key elements to include in a solid business plan. In addition to this template, a solid plan will also include market research to help you better understand the hospitality industry trends, and how you plan to attract customers. It will also help you craft your mission statement ...
This guide provides in-depth knowledge about creating a hotel business plan with step by step instructions, templates and more.
For aspiring hotel owners, having access to a sample hotel business plan can be especially helpful in providing direction and gaining insight into how to draft their own hotel business plan. Download our Ultimate Hotel Business Plan Template. Having a thorough business plan in place is critical for any successful hotel venture.
Hotel Business Plan Guide + Sample Plan. July 6, 2023. Adam Hoeksema. The hospitality industry offers immense potential, while some might believe that operating a hotel is straightforward, involving only accommodations and foot traffic, careful planning and meticulous execution are essential for achieving success, hence a well-structured ...
A hotel business plan is a formal document that provides a detailed roadmap for a hotel project, outlining everything from its goals and target market to the products and services it will offer, marketing strategies, and financial projections. Hotel business plans are important tools for starting a new hotel business because they establish ...
Shelter Business Plans. Whether your business is a rustic retreat or a high-end bed and breakfast, these sample business plans for hotels, inns, resorts, and other lodging businesses will help you write a business plan that will guide you to business success. Build a Better Business Plan. ©2024 Palo Alto Software.
Edit the hotel business plan template online, or download it. There are 3 ways to use this template: Edit it online: you can adapt this template to your business idea by changing the text or the financial forecast directly in our business planning software Download in PDF: if you're just after a little inspiration, you can download the hotel business plan template in PDF to read over it
Step 3: Make a Marketing Plan. A marketing plan plays a great role in the small hotel business plan. Through the marketing plan, you can attract customers. In the marketing plan, you can use your vision statement and mission statement to let the customers know that you have good aims in your business.
If you have never made a hotel business plan before, check out these tips for some ideas on your design. 1. Add Executive Summary. Place the executive summary in your business plan's introduction. Your mission statement serves as an introduction to your design. It's typically a one-line statement that describes the essence of your company.
File Format. MS Word. Pages. Size: A4, US. Download Now. Every successful business starts with a good plan. The above template is a hotel business plan, which is specifically made to highlight your hotel plans. It is available in many file formats. It is easily editable and can be customized as per your business needs.
Her vow to raise taxes on large corporations and the wealthy, however, is consistent with many of the proposals included in the Administration's plan. Among other things, that plan calls for a 7% increase in the corporate tax rate, a number of new taxes on multinational businesses, and new taxes on high-earning individuals.
Foundations Hotel & Conference Center LLC Hotel Business Plan Period: 2011 - 2016 790 Indian Trail Blvd. Traverse City, MI, 49686 Phone: 231-590-2546 Fax: 866-293-0079 Email: [email protected] Web Site: www.foundationshotel.com Contact: Julia Hoard, Manager/Director THIS DOCUMENT CONTAINS PROPRIETARY AND CONFIDENTIAL INFORMATION
Details. File Format. Google Docs. MS Word. Pages. Size: A4, US. Download Now. Download and use our Small Hotel Business Plan Template so that you can turn your passion for running a small hotel into a definite plan. Using this template, you can provide a summary of your plan along with the market analysis, strategies, and implementation details.
Harris's campaign said in a fact sheet that the vice president's plan seeks to "simplify and significantly expand" the Biden plan "by providing on average $25,000 for all eligible first ...
Open for Business. 1. Choose the Name for Your Hotel. The first step to starting a successful hotel business is to choose your hotel's name. This is a very important choice since your hotel name is your brand and will last for the lifetime of your hotel. Ideally, you choose a name that is meaningful and memorable.
The Peebles proposal includes 288 market-rate apartments, 92 affordable apartments, a 100-room hotel, 37,000 square feet of retail and 153,000 square feet of lab space. It also proposes 791 ...