Hotel Business Plan

9 Chapter Business Plan Template in MS Word, Google Docs and MAC Pages
Pitch Deck Template in PowerPoint, Keynote & Google Slides
5 Year Financial Model Template in MS Excel, Google Sheets and MAC Numbers
Financial Dashboard Template in MS Excel, Google Sheets and MAC Numbers
Business Model Canvas Template in MS Excel, Google Sheets and MAC Numbers
SWOT Analysis Template in MS Excel, Google Sheets and MAC Numbers
Competitive Analysis Template in MS Excel, Google Sheets and MAC Numbers

I.- Hotel Executive Summary

Business Overview

For business travelers in the [insert location here], [Company Name] has opened a new, modest, business-class hotel with a clean and modern atmosphere. The company's rooms will be furnished with cutting-edge furniture, cutting-edge technology, and contemporary accents.

Services

Based on its hotel business plan, there will be daily room cleaning, free local calls, cable TV, a free wifi network, and other facilities provided by [Company Name]. A 15-seat conference room with landlines, wireless internet, and a huge flat-screen television is also included in the hotel's amenities.

Customer Focus

For the most part, [Company Name] will be catering to business travelers who are looking for comfort, convenience, and simplicity in their travel experience.

According to the Madison Office of Tourism, there were 50,000 business travelers to the region in 2008.
According to the National Household Survey of Business Travel, 77% of business travelers are men in professional, managerial, or technical occupations (53%); 55% are between the ages of 40 and 49; 16% are between the ages of 18 and 29; 18% are between the ages of 30 and 39; 10 percent of those ages 50 to 59 According to the American Hotel & Lodging Association Lodging Industry Profile, the average household income in the United States is $85,900, with an average household size of three.

Additionally, the corporate travel industry is expected to include some leisure travel and overseas guests.

Management Team

[Founder's Name] has been in the hotel business for 20 years and is the driving force behind [Company Name]. He has never built a hotel from the bottom up, but [Founder] spent the previous 20 years in the hotel sector as a general manager and in various other managerial roles throughout the network. Thus, [Founder] has a thorough understanding of the hotel industry, which includes both the operational and management aspects of the firm, as well as preparation of hotel budgeting and forecasting template.

Success Factors

Because of the following factors, [Company Name] has a distinct advantage in the marketplace:

• In the town we're entering, there isn't a business-class hotel at the moment. As a result of our research, we know that significant firms with nearby headquarters have regular guests who will use our hotel site once it is open.


• The city's downtown, airport, and business sector are all within a few blocks of our location.


• In the next two years, XYZ and ABC have declared intentions to build new corporate centers in the city; as a result, the city's existing hotels will be unable to accommodate the increasing number of business travelers visiting these firms in the city.

Financial Highlights

To get off the ground, [Company Name] needs $3,000,000 based on its hotel financial model. As a specific example, these monies will be used as follows:

• $2,500,000 for hotel design and construction


• When [Company Name] hits break-even, working capital will be $500,000 to cover marketing, wages, and land expenditures.

II.- Hotel Business Overview

Who is [Company Name]?

It's a new, modest business hotel located in [insert location here] that aims to provide rooms with an airy, modern feel to attract business travelers to the region. Furniture, technology, and other modern accents will adorn the rooms of this hotel.

[Founder's Name] is the person who started [Company Name]. It was in [month, date] when [Founder's Name] made the decision to start [Company Name] after a long career in the hotel sector. In particular, [Founder] visited Madison, WI, for business at this period. [Founder's Name] was unable to locate a mid-range, business-class accommodation in the downtown area during his trip. When [Founder's Name] visited numerous hotels in Madison and learned of the predicted increase in business travel to the city, he realized that a business-class hotel would be a huge success.

Because of the demographics, business demographics, and competitive conditions in Madison's area of the city, he was confident in this hotel idea's success.

[Company Name]’s History

[Founder's Name] formed an S-Corporation for [Company Name] on [date of incorporation] after returning from Madison and studying the local customer base and internet market to estimate business travel growth.

Today, [Founder's Name] home office serves as the headquarters for the company's hotel development activities. On-site activities will begin once land rights have been secured to ensure that every aspect is considered and accomplished.

The following achievements have been made by the firm since its inception:

• Signed the land deed to purchase the land's rights. -Developed the company's name, logo, and website at www...


• For the hotel's plan, we hired an architecture company


• Requesting quotes from electrical engineering and construction companies


• Determined the finance and lease needs of the equipment, and forecasted the hotel cash flow


• Started looking for key employees with prior hotel business expertise.

[Company Name]’s Products/Services

Below is [Company Name]’s initial service offerings and amenities provided.

Services	Services
Single Rooms	1 Luxury Bathroom with Jacuzzi and Shower
Studio Apartment Style VIP Rooms for long-term stays	Daily Cleaning
Conference Room	Toiletries
Single Rooms	Coffee, Tea, and Chocolate
Two Double Beds or One Queen Bed	Fully-equipped kitchenette with oven, microwave, refrigerator, pots, pans, etc
Workspace	Dining area with dining table
Modern Bathroom	Flat Panel TV
Daily Cleaning	Wireless Network
Toiletries	Complimentary Bath Robe, Slipper, and Bathroom Amenities
Complimentary Coffee, Tea, and Chocolate	Conference Room
TV with Cable	Comfortable seating for 15 at a board-room style table
Wireless Network	Conference call capable phones
Studio Apartment Style VIP Rooms	Wireless internet
Sitting Room area with Workspace, Couch and TV.	Elevated large LCD screen compatible with DVD, VHS, and computer connection
California King bed	Water dispenser

Design

[Company Name] will develop a 20,000 square foot hotelwith key elements that will include the following:

• Upper and Lower Floors with 18 Single


• 2 Studio Apartment Rooms


• Conference Room

Located below is a rough sketch of the hotel design plan:

The hotel location will have 15 dedicated parking spots which should suffice even in peak parts of the travel season as guests will often not have cars with them

[Company Name] plans to be open 7 days a week, 24 hours a day, to take care of all guests’ inquiries and issues as they may arise. As demand dictates, we may extend or reduce our services and hours.

III.- Hotel Industry Analysis

Whether directly or indirectly, [Company Name] competes with all surrounding hotels offering business travel services or modest meeting space. Small meeting spaces, inns, motels, bed & breakfasts, condominium complexes, and hotels will all be competing for your business. Companies that provide business-class services will face direct competition.

What you Get in Your Hotel Business Plan Package

Industry Statistics & Trends

The American Hotel and Lodging Association has 11,000 members in the hospitality business, according to its website. There is an average overnight rate of $106.55 and an industry occupancy rate of 60%, which results in a revenue per available room (RevPAR) of $62, according to Smith Travel Research. According to the organization, there are 47,000 establishments with 15 rooms or more and 4.3 million guest rooms, $133 billion in yearly revenue, an average of 1 billion room nights sold each year, and $27 billion in net profits for the lodging sector.

The US hotel sector is dominated by large corporations like Marriott International, Hilton Hotels, Carlson Hotels, and Starwood Hotels and Resorts.

Room fees and the selling of food, alcoholic beverages, and souvenirs are the primary products of the lodging sector. Seventy percent of the industry's revenue comes from guest fees, fifteen percent from food, and five percent from alcoholic beverages.

• Tourism is presently the third-largest retail business in the United States, behind automobile and grocery shops. Asheville, North Carolina and Los Angeles


• 35 percent of all business travelers spend one night in a hotel, 26 percent spend two nights, and 39 percent spend three or more nights. Asheville, North Carolina and Los Angeles


• Companies' profitability is largely determined by how well they manage their fixed expenses.


• Marketing is a need.

In reaction to the crisis and hotel industry's desperate need to fill rooms, more and more passengers would demand larger discounts and more free offerings while still requiring more service.

IV.- Hotel Customer Analysis

Profile of Target Market

As a corporate travel service provider, [Company Name] will focus on [Insert location]. This is outlined in the business plan for the hotel.

The business traveler's lifestyle necessitates high levels of comfort and convenience, and we cater to that need.

According to the AH&LA, the typical business room night is created by a male (65 percent), age 35-54 (50 percent, engaged in a professional or management job (44 percent), with an average yearly household income of $85,900. Traveling alone, making reservations, and paying $112 a night is the norm for these guests (56 percent).

As outlined by the National Household Survey of US Business Travel, the business traveler market is also known as.

The typical business traveler is likely to be male; work in a professional, management, or technical role; be 30 to 49 years old; and have a salary far above the demographic average.

More over two-thirds of business travels are taken by men. In contrast, males make up 54% of non-business travel while women make up 46%.

Over half (53 percent) of all business travels are taken by those who classify their job as professional, managerial, or technical in nature. Only roughly 40% of the overall population falls into this type of employment. Another 28 percent of business travels are taken by those in the sales or service industry. On the other hand, just 4% of business trips are made by administrative and clerical professionals, despite the fact that they account for about 13% of all workers Ethnic minorities.

Demographics

The precise demographics of the town in which our hotel location resides is as follows:

Customer Segmentation

For the most part, we want to target these three market segments:

• Travelers visiting [Insert Area, City] corporations and events in the US business travel market.


• Travelers visiting tourist destinations like the Museum of Fine Art and the Annual Film Festival, as well as visitors to social events like weddings, make up the leisure travel market in the United States.


• Over 903 million foreign tourists visited the world last year, an increase of 6.6% over the previous year. According to tourismroi.com, $856 billion in international tourist revenues were generated.

V.- Hotel Competitive Analysis

Direct & Indirect Competitors

[Company Name] has direct and indirect rivalry for client acquisition within a 10-mile radius from the following hotels:

The Madison Concourse is a hotel located in the heart of Madison, Wisconsin.

The Madison Concourse Hotel has been the city's top hotel for the past two decades. Typical of a hotel, the hotel provides a wide range of services and amenities.

The Madison Concourse charges a hefty rate ($200-300 per night) for services that aren't required for business guests. In addition, the hotel only provides bigger meeting facilities and does not provide a small conference room. Wireless internet is not available in the rooms at this hotel.

The Edgewater Hotel

The Edgewater Hotel has been in operation for the past fifteen years. The Edgewater Hotel provides a wide range of hotel-specific services and facilities.

[Company Name], on the other hand, offers a number of benefits over The Breakers Hotel, including:

As a result of its proximity to the ocean, Edgewater is charged an exorbitant price for its rooms and facilities, which are outdated and in need of refurbishment. Edgewater does not provide studio apartment choices for long-term stays.

Doubletree Hotel Madison

Doubletree Madison is four miles away from our desired destination. Ten years ago, Doubletree Hotel Madison opened its doors and became part of the Hilton family, which allows it to use central booking and the Hilton reward points system.

The following are some benefits that [Company Name] has over the Doubletree Hotel Madison:

The rooms of the Doubletree Hotel Madison are more contemporary than most, although it lacks LCD TVs and a wireless network despite its key downtown position.
[Company Name]'s value for money and central location make it an attractive alternative to Doubletree Hotel Madison, but we expect more and more consumers to choose [Company Name] over Doubletree Hotel Madison.

What you Get in Your Hotel Business Plan Package

Competitive Pricing

Here is the pricing of our key competitors:

Competitive Advantage

From the business plan hotel example, there are various benefits that [Company Name] has over its rivals. These are some of the advantages:

• The finest access to the airport, corporate center, conference centers, and restaurants are all within walking distance of [Company Namedowntown ]'s location. Additionally, the company provides enough parking, allowing guests to unwind upon arrival.


• Business Amenities: The ability for visitors to convene in the hotel's tiny conference room will be greatly sought after by some organizations. Business travelers who need to work remotely may appreciate the availability of free Wi-Fi throughout the hotel.


• In order to compete with our most advanced rivals, our management team has years of business and marketing expertise, allowing us to promote and service consumers in exactly the same way .


• Relationships: [Founder's Name] has been visiting the town for a long time and knows all of the local leaders, newspapers, and other influencers. This means the hotel's brand and recognition will be very straightforward to create.

VI.- Hotel Marketing Plan

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

Branding will focus on the [Company Name] value proposition:

• Catering to the needs and desires of the corporate traveler


• Being conveniently located in the heart of the city and providing top-notch customer service

Promotions Strategy

Business travelers and vacationers from the United States and the neighboring Midwest are expected to be the primary customers of [Company Name]. The following are some of the methods used by the business to promote itself to potential customers like these:

Prospecting by phone
Depending on the expected number of visitors, [Company Name] will send sales representatives to approach local businesses about securing bulk corporate pricing for them.

Public Relations
It is our intention to notify the media of [Company Name's] upcoming hotel launch as well as its distinct value proposition.

Advertising
As a start, [Company Name] plans to advertise on travel websites, which are increasingly popular with consumers looking to book trips because of their user-friendly interfaces and positive customer evaluations.

Maintaining Consistent Contact with Customers
[Company Name] will produce a monthly email newsletter and keep a website up-to-date with local businesses and prior clients about special offers and events.

Opening-Day Activities
[Company Name] will host pre-opening events for national and local consumers, as well as for press contacts, prior to the hotel's opening. These events are a great way to get the word out about [Company Name].

Pricing Strategy

Using a computerized yield management system, [Company Name]'s price will change dependent on the season and occupancy percentages, but pricing will always place the hotel in the mid-range, below luxury options and above hotels and motels in the region that cannot be labeled as business class. Customers will feel like they are getting a lot for their money when they stay at this hotel.

VII.- Hotel Operations Plan

For [Company Name] to carry out the business strategy, the company must fulfill the following tasks as outlined in the hotel business plan template:

Administrative functions

• Legal, marketing, bookkeeping, and other general and administrative duties -Sourcing and storing hotel and conference room supplies -Hiring and training personnel -Corporate sales to individuals and organizations of all types and sizes

Hotel Services

• Housekeeping and check-in are two of the hotel's most important services.


• Personnel responsible for maintaining the cleanliness and functionality of the hotel.

What you Get in Your Hotel Business Plan Package

Milestones

[Company Name] expects to achieve the following milestones in the following [] months:

VIII.- Hotel Management Team

[Founder's Name] has been in the hotel business for 20 years and is the CEO of [Company Name].

When it comes to hotel management, [Founder] has worked in the sector for 20 years, most recently as a general manager, and has had a variety of roles throughout that time. As a result, [Founder] has extensive experience in the hotel industry, both in terms of day-to-day operations and in terms of strategic management.

[Founder] has also worked part-time as a real estate consultant for the previous ten years. When it comes to helping real estate developers establish and run hotels, he's worked as a contractor for a number of different companies.

A bachelor's degree in Hotel and Restaurant Management from the University of ABC was earned by [Founder].

Hiring Plan

The hotel's president will be [Founder]. It is imperative that we recruit the following staff members:

• Employees in charge of cleaning and maintenance (5 to start)


• Manager of a Hotel to manage the hotel's daily operations


• Associate Manager to deal with off-peak hotel operations (nights and weekends)


• In order to have at least one staff member on duty at all times, we hired four full-time employees to work in the front desk and guest services.


• Targeting and booking corporate clients in the hotel's conference and sleeping rooms will be the responsibility of two full-time sales staff.


• The legal, accounting, and other administrative activities (three personnel) are handled here.

IX.- Hotel Financial Plan

The revenue for [Company Name] will be derived from the use of hotel rooms and conference rooms.

Salaries for employees and fees associated with maintaining the hotel's quality will be important expenses for the business. The company's marketing budget will be considerable in the early years as it seeks to establish itself in the market.

Capital Requirements and Use of Funds

A total of $3,000,000 is being sought by [Company Name] to get the hotel up and running. Funding for capital expenditures, human resources, marketing costs, and working capital will all be provided by the capital.

As a specific example, these monies will be used as follows:

• $2,500,000 for the design and construction of a hotel


• Financial resources: about $500,000 to cover marketing, employee wages and leasing payments until [Company Name] achieves break-even point.

Hotel Financial Plan Sources And Uses Report

Key Assumptions

Below please find the key assumptions that went into the financial forecast and a summary of the financial projections over the next five years.

Hotel Financial Plan Core Inputs

Hotel Financial Plan Top Revenues Report

Hotel Financial Plan Top Expenses Report

Hotel Financial Plan Income Statement

Hotel Financial Plan Cash Flow Statement

Hotel Financial Plan Balance Sheet Statement