What Is a Hotel Business Plan?
A hotel business plan is a formal written document that contains detailed information about how a business owner or entrepreneur executes to establish his/her hotel business. That includes his/her marketing strategies, operational methods, and financial assessments.
How to Create a Hotel Business Plan
There are a few reasons why you should create a business plan. But its ultimate purpose is to give you a detailed guide or road map on how to develop your start-up business. Hence, it's essential that you must create one before you launch your business. So if your future business is a hotel business, you're in luck. Below is a short guide we've formulated to help you create an effective hotel business plan.
1. Research the Market
The first step every entrepreneur must do when planning to open a new business is to research the market. In your case, you should research the hotel industry in the area where you plan to establish your hotel. Your research does not only limit to hotels. Resorts, motels, and apartments are also potential competition. Try to determine what their strengths are, how they obtain guests, and what makes their establishment unique from others. By doing that, you can come up with your own way on how to edge their positive attributes. You can make use of a simple analysis sheet when doing your research.
2. Propose a Marketing Strategy
Based on your findings of the local hotel industry you've researched, you can then formulate a marketing proposal for your hotel business. In this process, you must state how you're going to obtain the attention of your target market, what are your selling methods, your advertising methods, and possible beneficial offers. Only you know how you're going to formulate your marketing strategy. But the very essence of a marketing strategy is to entice guests and edge the competition.
3. Enumerate the Features of Your Hotel
The readers of your business plan format will undoubtedly want to know what your future hotel will feature. So give them that luxury by enumerating each of them. Of course, that includes all the room types, facilities such as swimming pools and gaming rooms, the lobby, restaurants, and other boutiques that will be found in your hotel. These potential features of your hotel may soon be posted on your brochures and flyers once you commence advertising it.
4. Formulate Your Financial Projections
When planning a business, finances are always involved, no matter what. Hence, you must formulate your financial projections on your hotel business plan. In general, that includes your potential budget, potential capital investment, and your current assets. You can use a budget sheet for this process. Since your hotel business is still a start-up business, you should start small by being realistic and practical regarding your finances. It's never advisable for a start-up hotel to try and go for a 5-star rating immediately.
5. Write an Executive Summary
Based on every element you've formulated on your business plan, you must write an executive summary for it. Primarily, an executive summary must contain an overview of your hotel business, including its potential name, general objectives, and management structure. You can also showcase your business logo if you already made one.