Hotel Business Plan Guide

7/24/2019 Hotel Business Plan Guide

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Hotel Business Plan Guide

Heres how you can write your hotel business plan by answering key questions. For the best

outcome, aim for a succinct, simple, tangible and realistic plan thats simple to read. Follow

these hotel business plan suggestions to build and finalie this documented plan.

Be sure to keep notes on your sources of information and financial assumptions analysis.

1. Executive Summary

!rite this part of your hotel business plan last. "t should be # page ma$imum and include%

!hats the hotels location, rating, room count, local market and o&erall feasibility'

!hats your hotel companys mission' (his e$plains the underlying business plan

!hat hotel product and ser&ice offering will be utilied' !hats the concept )*Ps'

!ho will your guests be' How is the market performing' !hat are the key trends'

!hat is the +- year forecast /ust headline profit and loss figures0 and hotel metrics'

"f requiring a loan and1or equity, what amount is needed and how will that be used'

!hat are the milestones and ob/ecti&es' i.e. 2chie&e a G3P breake&en by time 4

2. Company Description

Here your hotel business plan pro&ides further detail about the company and business.

!hats your # line mission statement' 5$plain the businesss guiding principle

6ame the specific goals milestones0 and ob/ecti&es progress markers to goals0

!hat are your hotel companys ma/or competiti&e strengths and competencies'

For operating hotels, whats the summary financial results o&er the past - years'

!hat background e$perience, skills and strengths do you bring to the business'

7ist shareholder breakdowns and legal form of ownership and why that form'0

3. Concept & USPs

Gi&e a snapshot of the hotel brand conceptyoure planning. 8es, you need a concept.

!hat is the hotel product' 7ist the hotels tangible offering, rooms and facilities

!hat ser&ices will be pro&ided' How will the guest ser&ice touches be deli&ered'

9efine your :Guest ;ourney


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!hy will your hotel brand concept be unique and appeal to target hotel guests'

Ha&e you benchmarked competitor hotels' 3r for hotel groups, other concepts'

!ill you implement proprietary features you can protect by intellectual property'

4. Industry & Maret

2nalysis of your industry and market is critical for hotel business plan decision making.

How is the industry changing' *hort or long term' How does that impact you'

!hat are the critical political, en&ironment, social and technological influences'

2re there ta$ ad&antages, construction moratoriums, grants or benefits a&ailable'

For new hotels, what barriers to entry e$ist' i.e. capital, awareness, local councils0

!hats the sie of your locations tourism market' 2nnual &isitors and room nights'

!hat is the current supply of hotel rooms' !hat about other local lodging options'

Breakdown the market. How much supply e$ists for &arious hotel star rating le&els'

For new hotels, do local demand trends &alidate a need for the new room supply'

!. Competitive Set

"dentify competitors and market segments to &alidate hotel business plan assumptions.

!ho are your direct local or regional competitors' 2re there indirect competitors'

!hat are their ad&antages, disad&antages, a&erage prices, occupancy and markets'

(ip% )se tourism offices, *(


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2dding a competitor framework to the hotel business plan helps &isualie opportunities.

". #ar$et %uests

Hotel business plans typically include a profile of current and targeted guests markets.

!ho are your hotels target guests' Predominantly leisure, business or mi$ed use'

For each type, what are their demographic, psychographic and socioeconomics'

i.e. "nbound, middleclass, leisure focused guests from *pain, Portugal and the )>

!hy will they choose your hotel' !hat )*P features and benefits appeal to them'

!hat other :customers e$ist that you must market to' 9istributors and (our 3ps'

. Maretin$

6ow add a marketing strategy consistent to your hotel business plan. 8ou need to think

about hotel marketing, your sales distribution0 plan and how you will manage re&enue.

Marketing Strategy

!hats the hotel brand position' How will guests recognie and understand you'

For each guest segment, how will you promote, market and sell your hotels offer'

!hat free and lowcost tactics e$ist to minimie your hotels marketing e$penses'

!hat media will you use, why and how often' !hats the forecast


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9oes your hotel require conferencing guests' !ho will bid on conference


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1*. +inancia,s

9epending on the audience, financial data might appear earlier in hotel business plans.

!hat is your forecast for key hotel metrics' 3@@, 29

Documents

Hotel Business Plan Guide