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Hotel Business Plan

Hotel business plan by xotels. Step by step guide on how to write a hotel business plan.

OK, so you have decided to realize your dream and become a hotel entrepreneur, so now you need to start writing your hotel business plan . You have thought out an amazing concept delivering unparalleled guest service. The next step would be to write a hotel business plan. It’s like a road map to the opening. However, as a seasoned hotel revenue management consulting and hotel management company , we have seen that this is where most entrepreneurs get stuck.

Why? Many do not have the time and don’t know what to write or how to do the financials. But until you finish your business plan, you will not be able to get the financing either. So you end up with ideas sitting in your head not realizing your dream.

Really it is not that difficult to make a good hotel business plan. It is merely a structured summary of your idea. Most people try to include everything about their hotel concept in the plan. This leads to an indigestible super novel-like bookwork, aka a mess.

The key is, knowing what to include, and what not to include in your hotel business plan. Create a clear road map for success. Excite investors rather than bore them to death like most business plans full of redundant information do. And you need to lead readers down the exact path you want.

One of the main challenges for example is that after reading the first page most businesses often don’t fully understand what the hotel is all about. For investors and lenders, it is crucial they can quickly comprehend your plan, without reading the whole document.

hotel business plan 2

Hotels 101: The Basics of Business Planning

We have put together a hotel business plan template to help you on your way. Check out our approach based on 10 critical points, being:

  • Executive Summary
  • Company Analysis
  • Industry Analysis
  • Customer Analysis
  • Competitive Analysis
  • Strategic Plan
  • Operations Plan
  • Management Team
  • Financial Plan
  • Key Milestones

Steps of your Hotel Business Plan

Let’s dive into the step-by-step checklist of what your hotel business plan should look like.

These are the steps to developing your own hotel business plan. See which steps to follow to write your own hotel business plan.

Infographic by Xotels

1. Executive Summary

This first part should consist of two main parts, being:

  • Mission Statement (Introduction): a 1 line company description only the essence of your hotel (not 2 lines or a paragraph). It explains why you are in business or which huge need you are solving, that currently is not being met. For example in the case of Qbic Hotels “Moving modular hotels into under-utilized real-estate to reduce build-out cost and time.” 
  • Objectives : What do you hope to accomplish (i.e. “Reach an annual occupancy of 90%”).

 2. Company Analysis

More detailed information on the USPs (unique selling points) of your hotel concept.

hotel business plan 3

3. Industry Analysis

Information on the current industry trends and the current state of the market and how this will impact your hotel. This is needed as investors want to be sure you really understand the hotel industry. This acts as the foundation on which decisions such as trends and developments to follow will be based.  

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hotel business plan format

4. Customer Analysis

In-depth information on your target market, including geographic, demographic, socioeconomic, psychographic, and behavioural segmentation details. It can also help you to keep up to date with the latest hotel marketing trends to understand which are the types of guests who will be staying at your hotel. Explain which features will be meeting the needs and wants of these main segments when thinking of:

Basically, how will consumers answer this question ‘Why my hotel?’

Aim to break it up to the point value can be easily communicated (do not make it too overcomplicated). Think of the following examples:

  • Psychographics: interests, lifestyles, personality, values, opinions, and attitudes
  • Behavioural segmentation: purchasing behaviour, level of engagement, customer loyalty
  • Demographics: gender, age, marital status and education
  • Geographics: location (country, state, region, city)
  • Socio-economics

Any of the above examples of hotel segmentation can, if described well, be of great value to your business plan. An example of this could be a hotel located in a beach town, where you should be able to describe how demographics and psychographics differ from summer to winter time. Especially, since this example is typically known for lower demand in winter which you could be compensating for with the right hotel marketing strategies on hand.

hotel business plan format

5. Competitive Analysis

A study of your local competition or global concept competitors, with each of their strengths, weaknesses, occupancy rates and market share ( SWOT analysis ). And don’t forget the most important part; what differentiates you from them. What makes you stand out?

Ask yourself: “can I add value to a specific area”, especially when it comes to hotel-dense areas like city centres or major destinations.

6. Strategic Plan

This exists of 3 parts:

  • Marketing : How exactly will you attract customers/guests? How will you position yourself? What will your message be to the different segments of your business mix? How will your direct marketing work? What will be the plan for your hotel website, SEO, SEM and SMM? Will you do offline promotion? In short, your hotel marketing strategy should cover everything there is to know about how to market your hotel.
  • Distribution : Which 3rd party channels will you use and how will you manage availability? What technology will you need?
  • Revenue management : What pricing and yield techniques will you use? What will your payment and cancellation policies be? Which room types will you be selling, and how will they be individually marketed? How many revenue scenarios will I create? Where can I compensate income/demand streams when necessary?

Make sure you have the capabilities to plan out a strong marketing, distribution and revenue management strategy. 

Things get complicated rather fast, and choosing to outsource hotel and revenue management is likely to give you a strategic advantage, during the planning phase, and the execution of your business plans.

7. Operations Plan

How will you run your hotel? Think of the following elements:

  • How many staff and supervisors will you need? 
  • What are their job descriptions/responsibilities? 
  • What background and experience should they have? 
  • When should they start? 
  • What are your service standards?
  • Will you develop manuals?
  • Which supplier will you use?
  • How will you manage inventory?

8. Management Team

Include the bios of your team. Focus on what uniquely qualifies you to make your hotel such a success. Having a great team is the key to success , and stakeholders will be impressed with a thorough explanation of the added value everyone brings to the table.

9. Financial Plan

Provide the start-up costs of the hotel (capital investment), the ongoing business costs, operational expenses and revenue projections for the next five years. These figures should be always based on your Hotel Feasibility Study . The KPIs to look at include expected occupancy, ADR (Average Daily Rate) and RevPAR (Revenue per Available Room).

If you are raising money , outline how much funding will be needed and when. Explain how you will generate a return on investment for investors, or when lenders will be paid back.

10. Key Milestones

These are the most important achievements which once they have been completed, will make your hotel more likely to succeed. Think off:

  • Location selection
  • Permits & Licenses
  • Build-out / Construction of the Hotel
  • Staffing and Training
  • GOP Break-even
  • NOI Break-even

Each time one of the key milestones is achieved, the risk of lenders or investors decreases . And once your last key milestone is reached, the chance of success is more or less guaranteed.

11. Appendix

Provide any other relevant information here. Don’t clutter the main sections of your hotel business plan with too many details. Rather support them with attachments in this part.

hotel business plan format

Putting Your Plan into Action

Many people have great business ideas. But that really doesn’t matter. The difference between dreamers and entrepreneurs is the action mindset. Are you ready to ship your idea to the market? 

The first step is to put your ideas on paper. I hope this free sample will help you write a persuasive hotel business plan. Because no investor or lender will be interested if you cannot present a clear plan.

Follow your dreams and go for it!

Maximize Your Hotel Revenue

Uncover the hidden revenue potential of your hotel or resort.

hotel business plan format

Need help to Develop and Manage your Hotel Concept?

Our revenue management consulting experts at XOTELS have helped hundreds of hotels to develop and optimize their businesses.

With cost-effective implementations and best practices developed over years of experience, successful business for your boutique hotel, resort, B&B, aparthotel, hostel, or any other lodging concept for that matter.

Hope this template has helped you get inspired to start your own hotel business .

Best of luck in your endeavours!

Patrick Landman

PS. Get in touch with us if you need help developing and managing your hotel concept, and help bring your hotel to the next level with our hotel consulting services.

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Hotel Business Plan Template

Written by Dave Lavinsky

Hotel Business Plan

You’ve come to the right place to create your hotel business plan.

We have helped over 100,000 entrepreneurs and business owners create business plans and many have used them to start or grow their hotel companies.

Sample Hotel Business Plan Template

Below is a template to help you create each of the key elements of your own hotel business plan:

Executive Summary

Business overview.

Pegasus Hotel is a startup full-service independent luxury hotel in Austin, Texas. Owned by two local businessmen, Frank Girard and Miles Butler, it will serve the new up and coming district of the outskirts of Austin and cater to the locals and travelers who crave a luxurious and relaxing atmosphere. Pegasus Hotel will be a 10-story, 360-room hotel with a five-star restaurant and bar, relaxing pool and spa, 20,00 square feet of meeting and event space, a spacious and fully-equipped fitness center, and a view of scenic Austin. Pegasus Hotel will hold weddings and events, meetings, retreats, and those looking to unwind and be pampered while staying at the hotel. The service and amenities will be first class and the concierge will treat guests with extreme care and ensure guest satisfaction is held at an exceptional standard..

Service Offering

The following are the services and amenities that Pegasus Hotel will provide:

  • 354 luxury rooms, two presidential suites, and four parlor suites
  • Olympic size pool with adjacent hot tubs and surrounding cabanas
  • First-class full-service spa
  • First-class restaurant and bar
  • Spacious fitness center
  • Over 20,000 square feet of attractive meeting space for events
  • Concierge and butler service
  • Complimentary wifi
  • Valet service
  • Laundry service
  • Business center

Customer Focus

Pegasus Hotel will target the population of Austin, Texas, its surrounding communities, and travelers visiting Austin for work or play. Guests will be mid to high level income, enjoy traveling, enjoy visiting spas and high-end restaurants, and work in the corporate or government sector.

Management Team

Pegasus Hotel will be owned by Frank Girard and Miles Butler. They will act in an Owner capacity, and will not be involved in the day to day operations of the hotel. Frank and Miles will hire the appropriate staff to ensure Pegasus Hotel is a profitable and successful business.

Lorenzo Falucci, General Manager, has over twenty years of experience in the hotel industry. He has most recently managed another independent boutique hotel in New York and was excited to be recruited by Frank and Miles to operate the Pegasus Hotel.

Lorenzo will hire Lisa Montgomery as the Director of Sales and David Jimenez as the Assistant General Manager. Lorenzo, Lisa, and David will be the senior management team of Pegasus Hotel. They will oversee all other department managers – Maintenance, Housekeeping, Front Desk/Guest Relations, and Food and Beverage. Each department manager will oversee various employees in their respective department and role. The Pegasus Hotel will have a large and sophisticated operation as each department is integral in the success of the hotel.

Success Factors

Pegasus Hotel will be able to achieve success by offering the following competitive advantages:

  • Friendly, attentive, and highly responsive staff that caters to each guest and will be able to provide the best guest experience possible.
  • Luxurious amenities throughout the hotel that will make each guest feel pampered.
  • Modern and contemporary designed hotel tucked against a beautiful Texas landscape perfectly suited to host any event.
  • Competitive rates and frequent guest discounts.

Financial Highlights

Pegasus Hotel is seeking $10,000,000 in debt financing to begin constructing the hotel and commence operations of the business. The funding will be dedicated towards securing the land lease and the hotel build-out and design. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff, furniture, fixtures, and equipment, initial inventory, and working capital. The breakout of the funding is below:

  • Secure the land lot, architecture, build-out, and design: $6,000,000
  • Hotel furniture, fixtures, and equipment: $2,000,000
  • Initial inventory: $750,000
  • Three months of overhead expenses (payroll, rent, utilities): $1,000,000
  • Marketing & advertising: $150,000
  • Working capital: $100,000

The following graph below outlines the pro forma financial projections for Pegasus Hotel.

hotel business plan format

Company Overview

Who is pegasus hotel.

Pegasus Hotel is a startup full-service independent luxury hotel in Austin, Texas. Owned by two local businessmen, Frank Girard and Miles Butler, it will serve the new up and coming district of the outskirts of Austin and cater to the locals and travelers who crave a luxurious and relaxing atmosphere. Pegasus Hotel will be a 10-story, 360-room hotel with a five-star restaurant and bar, relaxing pool and spa, 20,00 square feet of meeting and event space, and a view of scenic Austin. Pegasus Hotel will hold weddings and events, meetings, retreats, and those looking to unwind and be pampered while staying at the hotel. The mission statement of the hotel is to provide first class service and amenities.

The guests rooms will include luxury beds and bedding with best-in-class furniture and bathroom fixtures. Pegasus Hotel will also have a full-service spa that will be able to provide massages, facials, makeup and/or hair service, steam rooms, and a sauna. The Olympic-sized pool will have adjacent hot tubs with a swim-up bar and surrounding cabanas. Pegasus Hotel will be equipped with state-of-the-art fitness equipment in its spacious gym. The restaurant will be a high-end steakhouse that will feature entrees from a world-renowned chef and a wine list cultivated by the area’s most respected sommelier. There will also be over 20,000 square feet of meeting space that will hold weddings, bat mitzvahs, reunions, galas, and any special event.

Pegasus Hotel will be independently owned and operated and will feature its own reservation system and operational software. Each employee will be expertly trained and vetted to pass luxury industry guest service standards. Pegasus Hotel is committed to providing the best guest experience possible while maintaining a profitable hotel. Pegasus Hotel aims to be a step above the rest and be an unforgettable experience for all who step foot into the hotel.

Pegasus Hotel History

Pegasus Hotel is owned by two local businessmen, Frank Girard and Miles Butler. Frank and Miles have been friends and business associates for over thirty years. They became friends in college while attending The University of Texas at Austin. Frank is a real estate developer specializing in commercial real estate and multi-use land projects. Miles is a software engineer who has built multitudes of software programs for various companies. They have both been extremely successful in their careers and want to divest their investments in a large-scale full-service hotel in Austin, Texas.

Since incorporation, Pegasus Hotel has achieved the following milestones:

  • Acquired a 40-acre lot on the outskirts of Austin, Texas.
  • Registered Pegasus Hotel, LLC to do business in the State of Texas.
  • Hired a consultant to conduct a feasibility study for a full-service hotel in Austin.
  • Began developing reservation and operational management software for use at the hotel.
  • Began the branding image, logo, website, and social media accounts for the staffing agency.
  • Applied for a liquor and mixed beverage permit with the Texas Alcoholic Beverage Commission.
  • Hired an architect to begin the design phase of the hotel.

Pegasus Hotel Services

The following will be the services and amenities Pegasus Hotel will provide:

Industry Analysis

The hotel industry is expected to increase to a $133 billion in the next five years. The hospitality industry will benefit from increases in travel spending, corporate profit and general consumer spending.

As consumers earn higher incomes and businesses replenish their budgets, travel spending is projected to increase over the next five years. Inbound trips by non-US residents are anticipated to rise 22% over next the five years, while domestic travel is expected to grow 9% during the same period.

The industry will see particularly strong future growth in extended-stay hotels, boutique hotels, spa and health retreats and resorts segments. As demand for these auxiliary services picks up, industry employment is anticipated to recover and increase over the next five years. Industry players are also expected to continue expanding abroad into emerging economies, such as Asia, Eastern Europe and South America. These foreign markets are expected to somewhat detract from domestic capital investment, as they offer higher growth prospects for industry operators.

Customer Analysis

Demographic profile of target market.

The precise demographics for Austin, Texas are:

Customer Segmentation

Pegasus Hotel will primarily target the following customer profiles:

  • Individuals and families who have disposable income (mid to high level)
  • Frequent travelers
  • Individuals who dine out and visit spas frequently
  • White collar workers (corporate or government office)

Competitive Analysis

Direct and indirect competitors.

Pegasus Hotel will face competition from other companies with similar business profiles. A description of our direct competitors is below.

Hotel Ella is a historic boutique hotel located in Austin, Texas. Located in downtown Austin and walking distance to the University of Texas campus, Hotel Ella is a stylish boutique hotel housed in the historic Goodall Wooten House, one of Austin’s original landmark estates. Constructed in 1900, the Greek revival-style mansion underwent an extensive renovation in 2013, and now offers the perfect balance between modernity and a rich history rooted in the fabric of the neighborhood and the university. Hotel Ella has 47 guest rooms, a cabana-lined pool, and a wrap-around veranda overlooking the front lawn. Hotel Ella features beautifully designed outdoor and indoor spaces perfectly suited for a vacation, wedding, or corporate event. The hotel also features a diverse collection of Texas Modernist works around the hotel grounds.

All guests of Hotel Ella are treated to warm southern hospitality and superior personalized service during their stay. The historic property is appointed with a variety of elegant 21st century amenities. Hotel Ella also offers the following amenities and guest services:

  • Complimentary 24-hour guest services
  • Complimentary high-speed wi-fi access
  • Complimentary electric car charging station
  • Complimentary morning newspapers available in the historic mansion
  • Complimentary coffee stations from 5am – 11am
  • Twice-daily housekeeping service
  • Cabana-lined outdoor pool
  • Fitness center
  • Same-day valet laundry services
  • In-room dining by Goodall’s
  • Business services: photocopying, printing, postal services, and supplies

Hotel Ella also welcomes dogs of all sizes at no additional fee.

Kimber Modern

Kimber Modern is located in the hip SoCo district of Austin and is intended to draw in the independent urban traveler seeking a unique escape. It is architecturally designed with clean lines and abundant light filtered through canopies of oaks in an artfully landscaped Courtyard. The hotel also encompasses absolute comfort and attention to detail while providing technologically sophisticated rooms in their boutique guest rooms. Guests booking at Kimber Modern will receive complimentary beverages, parking, and WiFi.

Kimber Modern offers the following hotel amenities to its guests:

  • Off street covered parking
  • Electric car charging station
  • Keyless entry
  • Complimentary WiFi throughout the hotel
  • Multi-level courtyard with a 25-foot glass water feature with multiple areas to lounge
  • Jura self-serve coffee system featuring a variety of coffee drinks 24/7
  • Beverage bar 24/7
  • Gourmet teas
  • Virtual concierge – computer, printer, and copier
  • Meeting space available for groups
  • 3pm check-in and noon check-out

Guests are also available to book the entire hotel for their group.

The Cat Noir Hotel

The Cat Noir Hotel is an award-winning 14-room boutique hotel located in the heart of Austin’s east side. The European-styled boutique hotel includes a restaurant and bar partner, Uncle Nicky’s Italian Specialties. Uncle Nicky’s offers a relaxed all-day dining experience that is themed after cafes in northern Italy. The Cat Noir Hotel opened in 2016 and has been ranked #2 by Travel + Leisure’s World’s Best Awards and Top 20 Best Hotels in Texas by Conde Nast Traveler.

The Cat Noir Hotel’s contemporary design maintains a sense of warmth and a unique aesthetic that is felt through the lobby, outdoor spaces, and each of the unique guest rooms. In addition to the design elements, The Cat Noir Hotel boasts the following features:

  • Private roof deck for guests to enjoy the stunning views of downtown, the Texas Capitol, and the University of Texas
  • Outdoor patio and courtyard areas on all levels
  • Artwork from local artists

Each of the guest rooms include Juliet balconies with neighborhood views, fine linens, and Simmons luxury plush mattresses.

Competitive Advantage

Pegasus Hotel will be able to offer the following advantages over their local competition:

Marketing Plan

Brand & value proposition.

Pegasus Hotel will offer the unique value proposition to its target local market:

  • Professional and attentive staff dedicated to ensure complete guest satisfaction.
  • Various amenities throughout the hotel for any guest to enjoy.
  • Modern and contemporary design with beautiful Texas views throughout the entire hotel.
  • Competitive rates.

Promotions Strategy

The promotions strategy for Pegasus Hotel is as follows:

Social Media

Pegasus Hotel will invest in advertising the hotel on social media platforms Facebook, Instagram, LinkedIn, and Twitter. By using targeted social media marketing, Pegasus Hotel will be able to reach those who frequent nice restaurants and spas and travel frequently.

Website/SEO Marketing

Pegasus Hotel will invest in a strong SEO presence so that when someone enters “Austin boutique hotel” or “first class hotel near me” in their Google or Bing search bar, Pegasus Hotel is at the top of the list. Their website will feature photos of the guest rooms, meeting areas, pool, spa, fitness center, and restaurant/bar. Future guests will be able to make a reservation to book their future stay on the website and access contact information for either a Director of Sales or General Manager of the property.

Pegasus Hotel will request all requests for news stories regarding the development of the hotel, owner/developer information, opening dates, etc. By accommodating the press’ requests for stories, it will also be free advertising for the public to learn about the new up and coming luxury hotel.

Frank and Miles will invest in a billboard in downtown Austin where the mid to upper class of residents frequent. The hotel will be minimalistic but eye-catching. It will feature an attractive rendering of the hotel along with the website. Curious passersby will be directed to visit the hotel’s website for detailed information.

Third Party Booking Websites

Once the hotel is nearing 60 days towards opening, all of the third-party websites will feature Pegasus Hotel so that travelers visiting Austin will be able to see it listed as an option for Austin hotels.

Bridal Shows and Wedding Industry Events

Pegasus Hotel will have a table at all of Austin’s bridal shows and wedding industry events. It will attract those couples searching for a venue to accommodate their special day.

The pricing of Pegasus Hotel will be moderate and on par with competitors so customers feel they receive value when purchasing its guest rooms and services.

Operations Plan

The following will be the operations plan for Pegasus Hotel.

Operation Functions:

  • Frank and Miles will be the owners of the hotel and hire the appropriate staff to manage the hotel. Frank will act as CFO of the hotel and Miles will be in charge of the reservation system and hotel operations software. Miles developed the software and will focus on making sure it’s always functional and efficient.
  • General Manager will be hired to oversee the entire staff and hotel operations to include guest satisfaction, oversee vendor contracts, events, and making sure that each department is running effectively and efficiently.
  • Assistant General Manager to assist the General Manager with overseeing the staff, with particular attention to guest satisfaction and front desk operations.
  • Director of Sales will be hired to sell events, corporate accounts, and group bookings for the hotel.
  • Maintenance Engineer will be hired to attend to all mechanical and plumbing issues that may arise.
  • Executive Housekeeper will be hired to lead the team of housekeepers to make sure all areas of the hotel are being cleaned to Pegasus Hotel standards and that each guest is receiving all accommodations to their requested schedule.

Milestones:

Pegasus Hotel will have the following milestones completed in the next six months.

8/1/202X – Purchase land lot and break ground on new hotel business.

8/15/202X – Finalize architectural renderings and hire a General Contractor to build the hotel.

9/1/202X – Finalize contract with advertising company for them to design the branding image of the hotel, logo, website, billboard, and social media accounts.

9/15/202X – Begin social media and website advertising campaign. Billboard with a teaser of ‘Coming Soon’ will go up in downtown Austin.

10/5/202X – Hire General Manager and Director of Sales.

10/15/202X – Attend annual Wedding Industry Event with a table to begin advertising Pegasus Hotel.

11/1/202X – Pegasus Hotel will go live on third party booking websites.

11/15/202X – Remainder of staff will be hired to begin training program.

11/30/202X – Final walk-thru of newly constructed Pegasus Hotel.

12/15/202X – Begin furnishing and interior design of the hotel.

1/1/202X – Grand Opening of Pegasus Hotel.

Lorenzo will hire Lisa Montgomery as the Director of Sales and David Jimenez as the Assistant General Manager. After an exhaustive search, Lorenzo believes has found the next two senior management positions to ensure the success of the hotel. Each comes with an impressive resume of prior hotel sales and operational experience.

Lorenzo, Lisa, and David will be the senior management team of Pegasus Hotel. They will oversee all other department managers – Maintenance, Housekeeping, Front Desk/Guest Relations, and Food and Beverage. Each department manager will oversee various employees in their respective department and role. The Pegasus Hotel will have a large and sophisticated operation as each department is integral in the success of the hotel.

Lorenzo, Lisa, and David will meet with Frank and Miles monthly to update them on progress and overall operations and sales efforts of the Pegasus Hotel.

Financial Plan

Key revenue & costs.

The revenue drivers for Pegasus Hotel are the revenues it will collect when guests book a reservation at the hotel. The hotel will also collect revenues from its restaurant and bar, spa, and events it will host.

The cost drivers will be the payroll and overhead costs to staff the hotel. Other costs will involve the land lease, utilities, marketing costs, and technology fees. There will also be costs associated with the maintenance of the hotel, food and beverage inventory, spa inventory, and hotel guest room supplies.

Funding Requirements and Use of Funds

Key assumptions.

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

  • Initial Number of Room Nights Sold per Month: 8,000
  • Number of Events per Month: 30
  • Land Lease per Year: $1,500,000

Financial Projections

Income statement, balance sheet, cash flow statement, hotel business plan faqs, what is a hotel business plan.

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 .

What Are the Main Types of Hotel Companies?

There are many types of hotel companies. Most hotels are affiliated with a hotel franchise company. Other hotel companies distinguish themselves by star level-  4 to 5-star hotels are on the higher end of rate and amenity offerings, whereas 2 to 3-star hotels cater more towards the everyday business travelers and families.

What Are the Main Sources of Revenue and Expenses for a Hotel Business?

The primary source of revenue for a hotel business are the room fees it charges each guest to stay at the hotel. Revenues are also collected for different amenity offerings, such as room service,  restaurant and bar revenue, spa revenues, and guest shop revenue.

The key expenses for a hotel business are the costs for inventory, maintenance, supplies, furniture, fixtures, and equipment, technology, and payroll of the staff. Other expenses will be the rent, utilities, and overhead costs, if applicable.

How Do You Secure Funding For Your Hotel?

Hotel businesses are most likely to receive funding from banks. Typically you will find a local bank and present your business plan to them. Angel investors and other types of capital-raising such as crowdfunding  are other common funding sources. This is true for a business plan for a hotel, a resort or a boutique hotel.

What are the Steps To Start a Hotel Business?

Starting a hotel business can be an exciting endeavor. Having a detailed roadmap of the steps to start a business will help you stay focused on your business goals and get started faster.

  • Develop A Hotel Business Plan - The first step in starting a business is to create a comprehensive business plan that outlines all aspects of the venture. This includes market research to identify the potential market size and target audience , the hotel’s services, pricing strategies and a detailed financial forecast.  
  • Choose Your Legal Structure - It's important to select an appropriate legal entity for your hotel business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your hotel business is in compliance with local laws.
  • Register Your Hotel Business - Once you have chosen a legal structure, the next step is to register your hotel business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 
  • Identify Financing Options - It’s likely that you’ll need some capital to start your hotel business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 
  • Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 
  • Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 
  • Acquire Necessary Hotel Equipment & Supplies - In order to start your hotel business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 
  • Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your own hotel business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective digital marketing strategy including SEO and paid advertising . You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a new hotel business:

  • How to Start a Hotel Business

Where Can I Get an Example Hotel Business Plan PDF?

You can download our example hotel business plan PDF template here . This is a business plan template you can use in PDF format.

Other Helpful Business Plan Templates

Franchise Business Plan Template Resort Business Plan Template Bed and Breakfast Business Plan Template

Hotel Mavericks Logo Design

How to Write a Successful Hotel Business Plan + Template

Business-Plan-VLFG

Creating a business plan is essential for any business, but it can be especially helpful for hotel businesses who want to improve their strategy and/or raise funding.

A well-crafted business plan not only outlines the vision for your company, but also documents a step-by-step roadmap of how you are going to accomplish it. In order to create an effective business plan, you must first understand the components that are essential to its success.

This article provides an overview of the key elements that every hotel business owner should include in their business plan.

Download the Ultimate Hotel Business Plan Template

What is a Hotel Business Plan?

A hotel business plan is a formal written document that describes your company’s business strategy and its feasibility. It documents the reasons you will be successful, your areas of competitive advantage, and it includes information about your team members. Your business plan is a key document that will convince investors and lenders (if needed) that you are positioned to become a successful venture.

Why Write a Hotel Business Plan?

A hotel business plan is required for banks and investors. The document is a clear and concise guide of your business idea and the steps you will take to make it profitable.

Entrepreneurs can also use this as a roadmap when starting their new company or venture, especially if they are inexperienced in starting a business.

Writing an Effective Hotel Business Plan

The following are the key components of a successful hotel business plan:

Executive Summary

The executive summary of a hotel business plan is a one to two page overview of your entire business plan. It should summarize the main points, which will be presented in full in the rest of your business plan.

  • Start with a one-line description of your hotel company
  • Provide a short summary of the key points in each section of your business plan, which includes information about your company’s management team, industry analysis, competitive analysis, and financial forecast among others.

Company Description

This section should include a brief history of your company. Include a short description of how your company started, and provide a timeline of milestones your company has achieved.

If you are just starting your hotel business, you may not have a long company history. Instead, you can include information about your professional experience in this industry and how and why you conceived your new venture. If you have worked for a similar company before or have been involved in an entrepreneurial venture before starting your hotel firm, mention this.

You will also include information about your chosen hotel business model and how, if applicable, it is different from other companies in your industry.

Industry Analysis

The industry or market analysis is an important component of a hotel business plan. Conduct thorough market research to determine industry trends and document the size of your market. 

Questions to answer include:

  • What part of the hotel industry are you targeting?
  • How big is the market?
  • What trends are happening in the industry right now (and if applicable, how do these trends support the success of your company)?

You should also include sources for the information you provide, such as published research reports and expert opinions.

Customer Analysis

This section should include a list of your target audience(s) with demographic and psychographic profiles (e.g., age, gender, income level, profession, job titles, interests). You will need to provide a profile of each customer segment separately, including their needs and wants.

For example, a hotel business’ customers may include:

  • Business travelers
  • Leisure travelers
  • Groups and conventions
  • Wedding parties
  • Local residents

You can include information about how your customers make the decision to buy from you as well as what keeps them buying from you.

Develop a strategy for targeting those customers who are most likely to buy from you, as well as those that might be influenced to buy your products or hotel services with the right marketing.

Competitive Analysis

The competitive analysis helps you determine how your product or service will be different from competitors, and what your unique selling proposition (USP) might be that will set you apart in this industry.

For each competitor, list their strengths and weaknesses. Next, determine your areas of competitive differentiation and/or advantage; that is, in what ways are you different from and ideally better than your competitors.

Below are sample competitive advantages your hotel business may have:

  • Location : if your hotel is located in an ideal spot for leisure or business travelers, this could be a key competitive advantage
  • Amenities : if your hotel offers unique amenities that are appealing to your target market segments, this could give you a leg up on the competition
  • Customer service : if you focus on delivering exceptional customer service, this could be a key selling point

Marketing Plan

This part of the business plan is where you determine and document your marketing plan. . Your plan should be clearly laid out, including the following 4 Ps.

  • Product/Service : Detail your product/service offerings here. Document their features and benefits.
  • Price : Document your pricing strategy here. In addition to stating the prices for your products/services, mention how your pricing compares to your competition.
  • Place : Where will your customers find you? What channels of distribution (e.g., partnerships) will you use to reach them if applicable?
  • Promotion : How will you reach your target customers? For example, you may use social media, write blog posts, create an email marketing campaign, use pay-per-click advertising, launch a direct mail campaign. Or you may promote your hotel business via public relations (PR), speaking engagements, or other thought-leadership activities.

Operations Plan

This part of your hotel business plan should include the following information:

  • How will you deliver your product/service to customers? For example, will you do it in person or over the phone only?
  • What infrastructure, equipment, and resources are needed to operate successfully? How can you meet those requirements within budget constraints?

The operations plan is where you also need to include your company’s business policies. You will want to establish policies related to everything from customer service to pricing, to the overall brand image you are trying to present.

Finally, and most importantly, in your Operations Plan, you will lay out the milestones your company hopes to achieve within the next five years. Create a chart that shows the key milestone(s) you hope to achieve each quarter for the next four quarters, and then each year for the following four years. Examples of milestones for a hotel business include reaching $X in sales. Other examples include adding new locations, launching a new product/service, or hiring new employees.

Management Team

List your team members here including their names and titles, as well as their expertise and experience relevant to your specific hotel industry. Include brief biography sketches for each team member.

Particularly if you are seeking funding, the goal of this section is to convince investors and lenders that your team has the expertise and experience to execute on your plan. If you are missing key team members, document the roles and responsibilities you plan to hire for in the future.

Financial Plan

Here you will include a summary of your complete and detailed financial plan (your full financial projections go in the Appendix). 

This includes the following three financial statements:

Income Statement

Your income statement should include:

  • Revenue: how much revenue you generate.
  • Cost of Goods Sold: These are your direct costs associated with generating revenue. This includes labor costs, as well as the cost of any equipment and supplies used to deliver the product/service offering.
  • Net Income (or loss): Once expenses and revenue are totaled and deducted from each other, this is the net income or loss

Sample Income Statement for a Startup Hotel Business

Balance sheet.

Include a balance sheet that shows your assets, liabilities, and equity. Your balance sheet should include:

  • Assets : All of the things you own (including cash).
  • Liabilities : This is what you owe against your company’s assets, such as accounts payable or loans.
  • Equity : The worth of your business after all liabilities and assets are totaled and deducted from each other.

Sample Balance Sheet for a Startup Hotel Business

Cash flow statement.

Include a cash flow statement showing how much cash comes in, how much cash goes out and a net cash flow for each year. The cash flow statement should include:

  • Cash Flow From Operations
  • Cash Flow From Investments
  • Cash Flow From Financing

Below is a sample of a projected cash flow statement for a startup hotel business.

Sample Cash Flow Statement for a Startup Hotel Business

You will also want to include an appendix section which will include:

  • Your complete financial projections
  • A complete list of your company’s business policies and procedures related to the rest of the business plan (marketing, operations, etc.)
  • Any other documentation which supports what you included in the body of your business plan.

Writing a good business plan gives you the advantage of being fully prepared to launch and/or grow your hotel company. It not only outlines your business vision but also provides a step-by-step process of how you are going to accomplish it.

As you can see, there is a lot that goes into creating a successful hotel business plan. But with careful planning and execution, you can set your hotel business up for success.  

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Hotel Business Plan

hotel business plan format

Owning a hotel is a dream for many people, who like to organize and engage in multiple different activities. From having unique themes to beautiful decor, a hotel business gives you an ample amount of chances to showcase your creativity.

But the pandemic might have naturally left many of you doubting the viability of hotels.

With a vast variety of reasons a hotel serves, the hotel business is very less likely to become irrelevant.

Most leading hotel businesses, today, rely on software to manage their operations. Kiosk Mode for automated check-ins, on-the-spot reservations, and feedback, hotel management software for customer management, and revenue control are just some of the many solutions that streamline hotel management.

And all you need to have a thriving hotel business is a hotel business plan that’ll help you get the maximum out of the profitable times and stay prepared for unexpected circumstances.

Industry Overview

The hotel industry stood at a whopping market value of 0.95 trillion dollars in 2021 and is recovering at a rapid rate after the COVID-19 pandemic.

The hotel industry is ruled by several major players, hence it is a good practice to go through their case studies and business strategies. There’s a high chance that you might find something very useful for yourself.

Work vacations and leisure trips are the major factors that contribute to the growth of the hotel industry.

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Things to Consider Before Writing a Hotel Business Plan

Select a good location.

An accessible and well-located hotel is much more likely to work than one that is situated otherwise. Also, the neighborhood you set up your hotel in matters a lot too. Hence, it is important to choose the right size of land and locality to set up your hotel.

Find good suppliers

From laundry, and housekeeping to the right ingredients for the restaurant,  there are several supplies a hotel needs. And to satisfy your customers, it is essential to get the best of everything. After all, the reputation and image of your hotel matter a lot when it comes to running a hotel business.

Know your financial requirements

A hotel has several financial requirements from location to installation of appliances, furniture, decor, and salaries of employees. This also makes for a complex financial structure. Hence, it is good to figure out and keep an account of all your financial needs before getting started.

Find your USP

In the mass of industry giants and small businesses that exist in the business, it is important to have something that helps you stand apart from everyone else. From theme-based decor to additional services and ventures, your USP can be anything. But make sure that you find one before you get up and running.

Chalking Out your Business Plan

If you are planning to start a new hotel business, the first thing you will need is a business plan. Use our sample hotel business plan created using upmetrics business plan software to start writing your business plan in no time.

Before you start writing a business plan for your new hotel business, spend as much time as you can reading through some samples of hotel and lodging-related business plans .

Reading some sample business plans will give you a good idea of what you’re aiming for, and also it will show you the different sections that different entrepreneurs include and the language they use to write about themselves and their business plans.

We have created this sample Hotel Business Plan for you to get a good idea about what a perfect hotel business plan should look like and what details you will need to include in your stunning business plan.

Hotel Business Plan Outline

This is the standard hotel business plan outline which will cover all important sections that you should include in your business plan.

  • Business Overview
  • Mission Statement
  • Location and Facility
  • Steve Cowan
  • Key Advisors to the Company
  • Economic Environment
  • Geographical/Competitive Environment
  • Legal/Political Environment
  • Technology Environment
  • High Line ($139-$750 per night, depending upon season)
  • Motel ($59-$119 per night, depending upon season)
  • Bed & Breakfast (B&B)
  • Summary of Opportunities and Threats in the Environment
  • Competitive Advantage
  • Industry Keys to Success
  • SWOT Analysis
  • Marketing Strategies
  • Target Markets – Consumer
  • Positioning and Product Strategy
  • Distribution Strategy
  • Pricing Strategy
  • Service and Support Philosophy
  • New Business Segment
  • Publicity and Public Relations
  • Guest Reward Programs
  • Advertising
  • Marketing and Promotion Budget
  • Evaluation & Control Strategies
  • Project Funding Summary
  • Phase 1 Funding Amounts Sought
  • Financial Plan Assumptions
  • Income Statement Projections
  • Balance Sheet
  • Cash Flow Projections

After getting started with Upmetrics , you can copy this sample hotel business plan template into your business plan and modify the required information and download your hotel business plan pdf or doc file.

It’s the fastest and easiest way to start writing your business plan.

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Download a sample hotel business plan

Need help writing your business plan from scratch? Here you go;  download our free hotel business plan pdf  to start.

It’s a modern business plan template specifically designed for your hotel business. Use the example business plan as a guide for writing your own.

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About the Author

hotel business plan format

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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Hotel Business Plan

hotel business plan format

Turn your dreams into reality with a comprehensive hotel business plan. 

Why do I need a 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: 

  • Company analysis
  • Industry analysis 
  • Competitive analysis 
  • Operations plan 
  • Financial plan

From idea to execution: 10 sections to include in your hotel business plan

What is hotel revenue management the beginner’s guide.

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Hotel & Lodging Business Plans

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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.

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Sample Hotel Business Plan

Sample Hotel Business Plan Template

Writing a business plan is a crucial step in starting a hotel. Not only does it provide structure and guidance for the future, but it also helps to create funding opportunities and attract potential investors. 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. It will serve as the foundation for your operations, setting out the goals and objectives that will help guide your decisions and actions. A well-written business plan can give you clarity on realistic financial projections and help you secure financing from lenders or investors. A hotel business plan example can be a great resource to draw upon when creating your own plan, making sure that all the key components are included in your document.

The hotel business plan sample below will give you an idea of what one should look like. It is not as comprehensive and successful in raising capital for your hotel as Growthink’s Ultimate Hotel Business Plan Template , but it can help you write a hotel business plan of your own.

Hotel Business Plan Example – StaySerenity Inn

Table of contents, executive summary, company overview, industry analysis, customer analysis, competitive analysis, marketing plan, operations plan, management team, financial plan.

StaySerenity Inn is an innovative hospitality venture located in the heart of Tucson, Arizona, dedicated to providing guests with a tranquil and serene stay experience. Our mission is to offer high-quality accommodations that blend modern comforts with the unique charm and beauty of the Southwest. We aim to cater to a wide array of guests, from business travelers to families seeking a peaceful retreat. By prioritizing customer satisfaction and leveraging the picturesque landscape and cultural richness of Tucson, we are committed to becoming a leading choice for travelers seeking comfort, peace, and a touch of local flavor in their accommodations.

Our success is built on a foundation of identifying and capitalizing on key factors that set us apart in the competitive hospitality market. To date, we have made significant strides in establishing a strong brand identity, highlighted by our commitment to exceptional customer service and creating a serene guest experience. Our strategic location, which combines accessibility with scenic beauty, plays a crucial role in attracting our target clientele. Additionally, our focus on sustainability and community engagement has not only enhanced our brand image but has also fostered positive relationships with local businesses and stakeholders. These accomplishments are testament to our dedication to excellence and innovation in the hospitality industry.

The hospitality industry is witnessing a dynamic shift, with travelers increasingly seeking personalized and unique stay experiences over conventional hotel accommodations. This trend is particularly pronounced in destinations like Tucson, Arizona, where the blend of natural beauty, cultural heritage, and recreational activities attracts a diverse visitor base. The market shows a growing preference for accommodations that offer a sense of place and connection to the local community, alongside modern amenities and sustainable practices. This evolving landscape presents both challenges and opportunities for StaySerenity Inn, as we strive to meet the changing preferences of travelers while standing out amidst the competition through our unique value proposition.

Our target customers encompass a broad spectrum of travelers who share a common desire for a tranquil and immersive stay experience. This includes business professionals seeking a quiet retreat after a day of meetings, families looking for a comfortable and engaging place to stay during vacations, and solo travelers drawn to the cultural and natural attractions of Tucson. Our marketing efforts are tailored to resonate with these segments, emphasizing the serene environment, personalized service, and access to local experiences that StaySerenity Inn offers. Understanding the diverse needs and preferences of our target customers is crucial to our strategy, guiding our service offerings and marketing messages to effectively attract and retain our desired clientele.

StaySerenity Inn’s competitive advantage lies in our ability to offer a peaceful and personalized stay experience that seamlessly integrates the natural and cultural richness of Tucson. Unlike our competitors, we emphasize tranquility and a deep connection to the local environment, catering to those seeking a more serene and authentic travel experience.

Our marketing plan revolves around highlighting the unique aspects of StaySerenity Inn, including our serene location, personalized services, and commitment to sustainability. We offer a range of accommodations and pricing options to suit various needs, from luxurious suites to more affordable rooms, all designed with tranquility and comfort in mind. Our promotions plan is multifaceted, encompassing digital marketing campaigns, partnerships with local businesses, and special package deals that showcase the value and unique experiences available at StaySerenity Inn. By leveraging social media, search engine optimization, and targeted advertising, we aim to increase our visibility and attract our target customer segments effectively.

Our operations plan is structured around key milestones that are crucial for the successful launch and growth of StaySerenity Inn. These include securing a prime location, obtaining necessary permits and licenses, completing the building and furnishing of our hotel to meet our brand standards, and hiring and training a committed team. We are focused on implementing an effective marketing strategy, launching our hotel with a strong online presence, and achieving operational excellence to ensure guest satisfaction and financial success. Establishing partnerships with local businesses and attractions is also a priority, enhancing our guests’ experience and supporting our goal of reaching $15,000/month in revenue.

Our management team is composed of experienced professionals with a diverse set of skills and a shared passion for hospitality. This team brings together expertise in hotel management, customer service, marketing, and sustainability practices, ensuring that every aspect of StaySerenity Inn’s operations is guided by knowledge and a commitment to excellence. Our leadership’s dedication to creating a serene and memorable guest experience is at the core of our business philosophy, driving our efforts to achieve success in the competitive Tucson hospitality market.

Welcome to StaySerenity Inn, a new beacon of hospitality in Tucson, AZ. As a local hotel, we take pride in introducing a high-quality lodging experience that has been missing in our community. Our commitment is to provide an unparalleled stay for all our guests, ensuring they find a serene and comfortable environment every time they choose us.

At StaySerenity Inn, our offerings are comprehensive and tailored to meet the needs of every guest. Our accommodation services are top-notch, designed to ensure comfort, security, and the best of modern amenities. Dining and catering at our hotel promise an exquisite culinary journey, with dishes prepared by top chefs that cater to a variety of tastes and dietary requirements. For those seeking an effortless and enjoyable stay, our concierge and guest services are always on hand to assist with any needs, from booking tours to making restaurant reservations. Our housekeeping and maintenance teams ensure that all aspects of the hotel are pristine and functioning optimally, creating a clean and welcoming environment for our guests. Additionally, our recreational and wellness facilities, including a spa, gym, and pool, offer guests the chance to unwind and maintain their health and well-being while staying with us.

Located in the heart of Tucson, AZ, StaySerenity Inn serves both the local community and travelers visiting this vibrant city. Our strategic location allows easy access to the best that Tucson has to offer, including cultural sites, natural parks, shopping, and dining experiences, making us a perfect choice for those looking to explore the area.

Our unique position for success stems from several key factors. Firstly, our founder brings invaluable experience from previously running a successful hotel, ensuring that StaySerenity Inn benefits from proven strategies and a deep understanding of the hospitality industry. Additionally, we are committed to offering superior guest and accommodation services compared to our competition, setting new standards for what guests can expect during their stay.

Since our inception on January 3, 2024, as a Limited Liability Company, we have made significant strides in establishing StaySerenity Inn as a premier destination for guests. Our accomplishments to date include the creation of a distinctive logo that represents our brand’s values, the careful selection of a company name that communicates our mission, and securing a prime location that complements our offerings. These achievements mark the beginning of our journey to becoming a cornerstone of hospitality in Tucson, AZ.

The hotel industry in the United States is a robust and thriving market, with an estimated size of over $200 billion in revenue annually. This industry encompasses a wide range of accommodation options, from luxury resorts to budget-friendly motels, catering to a diverse range of travelers and tourists. With an increasing demand for travel and tourism in the country, the hotel industry is poised for continued growth in the coming years.

Market research indicates that the hotel industry in the United States is expected to experience steady growth in the upcoming years, driven by factors such as a growing economy, rising disposable incomes, and an increasing preference for travel experiences. As more Americans choose to explore different destinations and seek unique lodging options, the demand for hotels is expected to rise, creating opportunities for new players in the market like StaySerenity Inn.

Recent trends in the hotel industry, such as the rise of experiential travel, the popularity of boutique hotels, and the increasing focus on sustainability and eco-friendly practices, bode well for StaySerenity Inn. By offering personalized experiences, eco-conscious amenities, and a convenient location in Tucson, AZ, StaySerenity Inn is well-positioned to attract a growing segment of travelers who seek unique and memorable stays. With a focus on customer satisfaction and a commitment to providing exceptional service, StaySerenity Inn is poised to succeed in the thriving hotel industry in the United States.

Below is a description of our target customers and their core needs.

Target Customers

StaySerenity Inn will target local residents seeking a luxurious getaway without the need to travel far from home. This customer segment includes couples looking for a romantic weekend escape, families desiring a convenient vacation spot, and individuals needing a serene environment for relaxation or personal reflection. The Inn will tailor its offerings to cater to these local demands, from personalized spa services to family-friendly activities and romantic packages.

Aside from local residents, StaySerenity Inn will also attract business travelers who value convenience, comfort, and exceptional service. These customers often seek accommodations that provide a seamless blend of work and leisure amenities. The Inn will equip its facilities with state-of-the-art business centers, high-speed internet, and meeting rooms to meet the needs of this segment, while also offering leisure amenities that encourage relaxation after a day of work.

Additionally, StaySerenity Inn will target tourists and adventure-seekers visiting Tucson for its unique attractions and outdoor activities. This segment is drawn to experiences that are both enriching and authentic, from exploring the Sonoran Desert to cultural tours in the city. The Inn will offer customized tour packages and adventure experiences, making it an attractive choice for those wishing to explore the natural beauty and cultural richness of Tucson.

Customer Needs

StaySerenity Inn fulfills the essential need for high-quality accommodation, catering to guests seeking comfort, modern amenities, and exceptional service. Guests can expect meticulously designed rooms that blend luxury with functionality, ensuring a restful and productive stay. The Inn prioritizes cleanliness and customer care, making it a preferred choice for discerning travelers.

Understanding the diverse needs of its guests, StaySerenity Inn also offers a range of guest services designed to enhance their stay. From a concierge ready to assist with local recommendations to seamless check-in and check-out processes, every aspect is crafted to meet the high expectations of its guests. Additionally, amenities such as high-speed internet, a state-of-the-art fitness center, and on-site dining options cater to both leisure and business travelers alike.

Beyond the basics, StaySerenity Inn recognizes the growing demand for personalized experiences. Guests can enjoy tailor-made services, including room customization and event planning assistance, ensuring their stay is as unique as their preferences. This attention to detail not only satisfies the immediate needs of its guests but also fosters a lasting relationship, encouraging repeat visits.

StaySerenity Inn’s competitors include the following companies:

Hotel McCoy is an art hotel that focuses on local culture and retro vibes, offering its guests a unique blend of modern amenities and mid-century charm. The hotel provides services such as an outdoor pool, a fitness center, and a bar, all adorned with works from local artists. Its price points are moderate, making it accessible to a wide range of customers seeking an artsy yet affordable stay. Hotel McCoy serves not only tourists but also locals looking for a staycation with a twist. Its key strength lies in its unique branding and strong local partnerships. However, its reliance on a niche market could be considered a weakness, as it may not appeal to all segments of the broader traveler market.

Arizona Inn is an upscale, historic hotel known for its luxurious accommodations and exceptional service. It offers a range of services including fine dining, a swimming pool, tennis courts, and beautifully manicured gardens. The price points are on the higher end, targeting affluent travelers seeking a premium experience. Located in a serene part of Tucson, it attracts both leisure and business travelers who appreciate its quiet elegance and attention to detail. Arizona Inn’s key strengths are its historic charm, high-quality service, and exclusive ambiance. A potential weakness is its higher price point, which may limit its accessibility to a broader audience.

Hacienda Del Sol Guest Ranch Resort blends the rustic charm of a historic ranch with the luxury of a top-tier resort. It offers a variety of accommodations from rooms to private casitas, alongside amenities such as horseback riding, spa services, and fine dining. The resort caters to a premium segment, with price points reflecting its upscale offerings. It serves a diverse clientele, including couples on romantic getaways, families, and corporate groups. Hacienda Del Sol’s strengths include its unique historical background, extensive amenities, and breathtaking desert views. However, its niche appeal as a luxury ranch resort may not cater to all preferences, particularly those looking for a more urban or contemporary setting.

Competitive Advantages

At StaySerenity Inn, we pride ourselves on surpassing the expectations of our guests through unparalleled accommodation and guest services. Our dedication to creating a memorable and comfortable experience is evident in every aspect of our operations. We understand that the little details make a big difference, which is why we offer personalized services tailored to the specific needs of each guest. From the moment they check in, guests can expect a warm, welcoming atmosphere coupled with state-of-the-art amenities designed to cater to both leisure and business travelers. Our staff is trained to go above and beyond, ensuring that every stay is seamless and every guest feels valued and cared for.

Beyond our exceptional service, StaySerenity Inn stands out in the competitive Tucson hospitality market through our innovative approach to guest engagement and satisfaction. We leverage cutting-edge technology to enhance the guest experience, from mobile check-in and digital room keys to personalized room settings that can be adjusted before arrival. Additionally, our strategic location offers easy access to local attractions, making us an ideal choice for guests looking to explore the best of Tucson. Our commitment to sustainability and eco-friendly practices also sets us apart, appealing to environmentally conscious travelers seeking a green lodging option. By focusing on these areas, we not only meet but exceed the expectations of our guests, securing a competitive edge in the market.

Our marketing plan, included below, details our products/services, pricing and promotions plan.

Products and Services

StaySerenity Inn offers a variety of services tailored to meet the needs of every guest, ensuring a comfortable and memorable stay. The Inn prides itself on providing exceptional accommodation, dining experiences, and a comprehensive range of guest services and amenities aimed at enhancing the overall experience of its visitors.

Accommodation Services: Guests can expect to find a wide range of room and suite options designed to cater to diverse preferences and budgets. From standard rooms to luxurious suites, each space is meticulously furnished and equipped with modern amenities. Prices for accommodation services vary depending on the type and season but generally start at around $120 per night for a standard room, offering comfort and value to both leisure and business travelers.

Dining and Catering: The Inn features an on-site restaurant that serves a variety of gourmet dishes prepared with fresh, local ingredients. Guests can enjoy breakfast, lunch, and dinner in a cozy and elegant setting. For those who prefer dining in the comfort of their own room, room service is also available. The average price for a main course at the restaurant is approximately $25. Additionally, catering services for events and meetings are available upon request, with prices varying based on the menu and number of guests.

Concierge and Guest Services: StaySerenity Inn’s concierge team is dedicated to ensuring guests have a delightful and hassle-free stay. Services include booking tours and excursions, making restaurant reservations, arranging transportation, and more. While many of these services are complimentary, some, like guided tours and special event tickets, are available at an additional cost, depending on the activity.

Housekeeping and Maintenance: The Inn maintains the highest standards of cleanliness and comfort in all guest rooms and public areas. Daily housekeeping services are included in the room rate, ensuring that rooms are fresh and tidy. Maintenance issues are addressed promptly to ensure that all facilities are in perfect working order, contributing to a seamless guest experience.

Recreational and Wellness Facilities: For guests looking to relax and rejuvenate, StaySerenity Inn offers an array of recreational and wellness facilities, including a fitness center, outdoor pool, and spa. Access to the fitness center and pool is complimentary for all guests, while spa services, such as massages and treatments, are available for an additional fee, typically starting at $50 depending on the service.

At StaySerenity Inn, guests can expect a harmonious blend of comfort, luxury, and attentive service, all designed to make their stay in Tucson as enjoyable and relaxing as possible.

Promotions Plan

To attract customers, StaySerenity Inn employs a multifaceted approach to promotion, leveraging the power of online marketing while incorporating traditional and innovative tactics to ensure visibility and appeal. Understanding the importance of digital presence, StaySerenity Inn invests in a robust online marketing strategy. This includes a user-friendly website showcasing the hotel’s amenities, rooms, and services with high-quality images and virtual tours, allowing potential guests to experience the comfort and serenity of the hotel before they book. Social media platforms play a crucial role in this strategy, with regular posts highlighting special offers, guest reviews, and events at the hotel, engaging directly with a broad audience.

Email marketing campaigns are another essential component, targeting past guests and potential customers with personalized offers, updates, and newsletters, keeping StaySerenity Inn top of mind. Search Engine Optimization (SEO) ensures that when potential guests search for accommodations in Tucson, AZ, StaySerenity Inn appears among the top results, increasing its visibility and attracting more traffic to its website. Pay-per-click (PPC) advertising also amplifies this effect, targeting specific demographics and interests to drive bookings.

Beyond online marketing, StaySerenity Inn engages in local community events and partnerships with local businesses to build relationships and enhance its reputation. Hosting and sponsoring local events not only showcases the hotel’s commitment to the community but also provides direct exposure to potential guests. Collaborations with local attractions, restaurants, and businesses offer guests unique packages and experiences, making StaySerenity Inn a preferred choice for those looking to explore Tucson.

Furthermore, StaySerenity Inn implements a referral program, encouraging satisfied guests to refer friends and family with incentives, such as discounts on future stays. This word-of-mouth promotion is invaluable, building a loyal customer base and generating positive buzz around the hotel.

Lastly, StaySerenity Inn recognizes the importance of professional networking and will maintain a presence in local and regional hospitality associations, attending trade shows and networking events to forge connections within the industry, learn from peers, and stay ahead of trends that can enhance the guest experience.

Through these comprehensive promotional methods and tactics, StaySerenity Inn expects to not only attract customers but also create memorable experiences that encourage repeat visits and build a strong, loyal customer base in Tucson, AZ.

Our Operations Plan details:

  • The key day-to-day processes that our business performs to serve our customers
  • The key business milestones that our company expects to accomplish as we grow

Key Operational Processes

To ensure the success of StaySerenity Inn, there are several key day-to-day operational processes that we will perform.

  • Check-in and Check-out Procedures: Efficiently manage guest check-ins and check-outs to minimize wait times and ensure a smooth process for guests. This includes preparing key cards, processing payments, and providing guests with all necessary information about their stay.
  • Room Cleaning and Maintenance: Ensure that all rooms are thoroughly cleaned, sanitized, and ready for new guests by a specific time each day. This also involves regular maintenance checks to fix any issues such as plumbing problems, electrical faults, or general wear and tear.
  • Customer Service: Provide excellent customer service at all times, including handling guest inquiries, complaints, and requests promptly and professionally. This also involves offering concierge services to help guests with restaurant reservations, directions, and recommendations for local attractions.
  • Inventory Management: Regularly check and restock supplies such as toiletries, linens, and minibar items to ensure that everything guests might need is always available. This also includes managing inventory for the hotel’s restaurant or cafe if applicable.
  • Food and Beverage Services: If the hotel has its own dining facilities, manage the operations of these services, including meal preparation, service quality, and hygiene standards. This also involves menu planning and ensuring that dietary requirements can be catered to.
  • Financial Management: Monitor daily revenues and expenses to keep track of the hotel’s financial health. This includes processing payments, managing invoices, and preparing financial reports.
  • Marketing and Promotions: Implement ongoing marketing strategies to attract new guests and encourage repeat business. This can include managing the hotel’s online presence, offering special promotions, and maintaining loyalty programs.
  • Staff Management: Schedule and manage staff to ensure that all areas of the hotel are adequately covered. This involves training employees, managing shifts, and ensuring that the team works well together to provide the best possible service to guests.
  • Health and Safety Compliance: Ensure that the hotel complies with all local health and safety regulations to provide a safe environment for guests and staff. This includes regular safety drills, food safety checks, and ensuring that all safety equipment is in place and working properly.
  • Feedback Collection and Analysis: Collect feedback from guests through various channels such as comment cards, online reviews, and direct feedback to staff. Analyze this feedback to identify areas for improvement and implement changes where necessary.

StaySerenity Inn expects to complete the following milestones in the coming months in order to ensure its success:

  • Identifying and Securing a Prime Location : Finding a location that is both appealing to potential guests and financially viable is crucial. This should be in proximity to local attractions, business centers, or natural beauty spots to attract a wide range of customers.
  • Obtaining Necessary Permits and Licenses : Ensuring compliance with local regulations by obtaining all necessary permits and licenses for operation. This includes health and safety inspections, building codes, and any specific hospitality industry regulations in Tucson, AZ.
  • Building and Furnishing the Hotel : Completing the construction or renovation of the hotel premises to meet the brand standards of StaySerenity Inn. This includes interior design and furnishing that align with the target market’s expectations and the brand’s image.
  • Hiring and Training Staff : Recruiting a team of professionals who are committed to providing excellent customer service. This involves hiring for various positions including management, front desk, housekeeping, and any other roles necessary for the operation. Training is essential to ensure the team delivers service that meets the brand’s standards.
  • Marketing and Promotional Activities : Implementing an effective marketing strategy to build brand awareness and attract guests. This includes digital marketing efforts, local advertising, partnerships with local businesses, and creating attractive packages or promotions.
  • Launch Our Hotel : Officially opening StaySerenity Inn to the public. This milestone may include a soft launch period to gather initial feedback and make adjustments before the grand opening.
  • Build a Strong Online Presence and Reputation Management : Developing a robust online presence through a user-friendly website, social media platforms, and listings on hotel booking sites. Actively managing online reviews and customer feedback to maintain a positive reputation.
  • Achieve Operational Excellence : Streamlining operations to ensure guest satisfaction, efficient use of resources, and effective management of operational costs. This includes continuous training for staff, maintaining high standards of cleanliness and safety, and implementing eco-friendly practices.
  • Get to $15,000/Month in Revenue : Reaching the financial milestone of generating $15,000 in monthly revenue. This will involve continuously analyzing performance, adjusting pricing strategies, and enhancing marketing efforts to increase occupancy rates and average daily rates.
  • Establish Partnerships with Local Businesses and Attractions : Creating partnerships with local businesses, tour operators, and attractions to offer guests unique experiences and packages. This will not only enhance the guest experience but also contribute to increasing the hotel’s visibility and attractiveness. By achieving these milestones, StaySerenity Inn can mitigate risks and build a solid foundation for long-term success in Tucson, AZ.

StaySerenity Inn management team, which includes the following members, has the experience and expertise to successfully execute on our business plan:

Carter Mitchell, CEO

Carter Mitchell brings a wealth of experience and a proven track record to the role of CEO at StaySerenity Inn. With a history of noteworthy success in the hospitality industry, his leadership is rooted in practical experience, having previously managed a hotel with distinction. This background has afforded him a deep understanding of what it takes to run a successful lodging establishment, from operational efficiency to exceptional customer service. Mitchell’s strategic thinking, combined with his hands-on experience, positions him uniquely to propel StaySerenity Inn towards lasting success. His leadership skills and industry knowledge are critical in ensuring that the Inn not only meets but exceeds the expectations of its guests.

To reach our growth goals, StaySerenity Inn requires significant funding. This investment will be allocated towards securing our location, completing necessary renovations and furnishings in line with our brand vision, and covering operational costs until we reach our revenue targets. Our financial strategy is designed to ensure that we effectively manage our resources to establish a solid foundation for profitability and long-term success.

Financial Statements

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Income Statement

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Cash Flow Statement

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Hotel Business Plan Example PDF

Download our Hotel Business Plan PDF here. This is a free hotel business plan example to help you get started on your own hotel plan.  

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Examples

Hotel Business Plan

hotel business plan format

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.

14+ Hotel Business Plan Examples

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What is a Hotel Business Plan?

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.

How to Create a Hotel Business Plan

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.

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. 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.

2. Write Down Company Analysis

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.

3. Present Market Analysis

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.

4. Discuss Operations Plan

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.

FAQ’s

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.

Is a hotel a good investment?

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.

Who creates the hotel business plan?

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.

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Hotel business plan template

Save hours writing your plan with our hotel business plan template and online financial forecasting software. You can also download as PDF or Word.

Discover our hotel business plan template

Our hotel business plan template gives you the structure to write a professional plan.

Not accustomed to writing business plans? Our hotel business template will turn a typically challenging process into a total breeze.

Modelled on a complete business plan of a hotel in France, our template features both the financial forecast and the written part that presents the project, its team, the local market and the business strategy implemented by the management.

Cast your eyes on this template to achieve a better understanding of what your bank and investors would like to see, so that you can create a business plan that meets their expectations.

hotel businesss plan template

7 day free trial. No credit card required. Hotel business plan template available with paid plans only.

How to use this hotel business plan template

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
  • Download in Word format: want to edit your plan on Word? Simply export the hotel business plan template to Ms Word (.docx) format

online editor for hotel business plan template

Hotel business plan template content

This template includes a complete hotel business plan example, with a financial forecast and the following sections:

  • Executive summary: the executive summary gives the reader a clear and concise overview of your business idea
  • Company: this section lays out the structure of your business, including its location, management team and legal form
  • Products and services: here, you'll give an overview of the services offered by your hotel such as room rentals, meals and additional guest services
  • Market analysis: the market analysis is where you’ll demonstrate that there is a strong demand for your products and services through a thorough assessment of the industry (customer profile, hot trends, regulation, competition, etc.)
  • Strategy: this section highlights the company's game plan when it comes to pricing, marketing and mitigating risks along the way
  • Operations: this step lays out the company's operational organisation, including the recruitment plan
  • Financial plan: the financial plan includes a table of sources & uses (initial funding plan), and complete financial statements (P&L, balance sheet and cash flow statement).
  • Appendices: this part provides the opportunity to include multiple financial appendices generated by our software (debt maturity profile, monthly financial statements, financial analysis, etc.).

cover page and table of contents for the hotel business plan template by The Business Plan Shop

Executive summary of the hotel's business plan

The executive summary gives the reader a clear and concise overview of your business idea.

Our hotel business plan example's executive summary is formed of the following subsections:

  • Business overview: in this subsection, we outline who the hotel founders are, what legal form they've chosen for the business, and the rationale behind the choice of their location
  • Market overview: in this subsection, we summarize the conclusions of the market analysis performed by the hotel's owners and explain who they might target (our hotel business plan template targets Pariseans, senior citizens and foreign tourists visiting the seaside resort of Cabourg)
  • Financial highlights: in this subsection, we give an overview of the forecasted financial performance of the hotel over the first 3 years of operation
  • Our ask: in this subsection, we outline the amount of financing required to start the hotel and how it's going to be funded (the founders are seeking a bank loan to start their hotel)

executive summary for hotel business plan sample

Company overview included in our hotel business plan sample

This section lays out the structure of your business, including its location, management team and legal form.

Our hotel business plan template's company section is formed of the following subsections:

  • Structure & Ownership: in this subsection, we outline who the hotel shareholders are, what legal form they've chosen for the business
  • Location: in this subsection, we present the area surrounding the location chosen for the business and the layout and main features of the premises
  • Management Team: in this subsection, we give an overview of the background of each of the hotel's founders and explain how they met and why they decided to start a company together

company overview included in hotel business plan template

Products and services offered by the hotel

The products and services section is where you will present the services offered by your hotel such as room rentals, meals and additional guest services sold by your hotel.

In our hotel business plan template products and services section, we cover:

  • Room rentals: a selection of rooms to choose from for every budget
  • Reception: 24- hour reception service
  • Food and drink service: access to a food and drink service between 10 am to 6 pm as well as an all-you-can-eat breakfast buffet
  • Shuttle service: access to a free shuttle service from the train stations or airports within Caen, Deauville-Trouville, or Lisieux for guests staying more than 4 nights
  • Connectivity: access to free Wifi and television in the bedrooms

product and services description of the hotel business plan example

Market analysis for the opening of the hotel

The market analysis is where you’ll demonstrate that there is a strong demand for your products and services through a thorough assessment of the industry (customer profile, hot trends, regulation, competition, etc.)

Our hotel business plan example's market analysis section is formed of the following subsections:

  • Demographics and Segmentation: in this subsection, we explore the market in depth. We look at the supply and demand sides both at the national and local level, analyse the hot trends perceived by the founders, and the key statistics that will help the founders build their positioning
  • Target market: in this subsection, our founders explain who they view as their ideal customers (our hotel business plan template targets Pariseans, senior citizens and foreign tourists visiting the seaside resort of Cabourg)
  • Competition: in this subsection, we take a look at the direct (independent or franchised hotels in downtown Cabourg and the surrounding towns) and indirect (other forms of accommodation such as holiday homes, guesthouses, airbnb) local competition to ensure we have a differentiated positioning and that the market is large enough to accommodate the arrival of a new hotel
  • Regulation: in this subsection, we give an overview of the main regulation applicable to our hotel

market analysis section of the hotel business plan template

Setting the strategy for our hotel

This section highlights the company's game plan when it comes to pricing, marketing and mitigating risks along the way.

Our hotel business plan template strategy section is formed of the following subsections:

  • Pricing: in this subsection, we explain how we set the prices of our main categories of services (free shuttle service, wifi, all-you-can-eat breakfast buffet and food and drink service) as well as hotel rooms and the rationale behind our choice
  • Marketing plan: in this subsection, we explain what action we'll put in place to build awareness and loyalty among hotel guests
  • Milestones: in this subsection, we give an overview of the main goals we set for ourselves for the next 3 years
  • Risks and Mittigants: in this subsection, we perform an assessment of the medium and long-term risks that could jeopardize the financial viability of our hotel and outline how we intend to mitigate them

hotel business plan example: stragtegy section

Operations section of the hotel business plan template

This part lays out the company's operational organisation, including the recruitment plan.

Our hotel business plan example's operations section is formed of the following subsections:

  • Personnel plan: in this subsection, we explain what our opening hours will be and explain the responsabilities of each of our hotel staff member
  • Key assets and IP: in this subsection, we list the assets and intellectual property rights which are critical to our business operations and explain how we will secure and protect each of these
  • Suppliers: in this subsection, we give an overview of the main suppliers we will use our what commercial terms have been negotiated with them

hotel business plan template: operations section

Financial plan included in our hotel business plan template

This section presents the expected financial performance of the hotel over the next 3 years.

Our hotel business plan example's financial plan is formed of the following subsections:

  • Start-up funding: in this subsection, we list the cost of each item required to launch the hotel
  • Important assumptions: in this subsection, we explain the methodology and the main assumptions used to build the hotel's financial forecast
  • Sales forecast: in this subsection, we detail the expected revenues and growth rate for our hotel in the coming years
  • Cost structure: in this subsection, we list all the expenses required for our hotel to operate smoothly
  • Projected Profit & Loss statement: in this subsection, we analyse our forecasted P&L and comment on the expected profitability of our hotel over the next 3 years
  • Projected cash flow statement: in this subsection, we analyse the expected cash generation of the hotel
  • Projected balance sheet: in this section we give an analysis of the liquidity and solvability implied from our balance sheet

hotel business plan forecasted P&L

Appendices of the hotel business plan template

This part provides the opportunity to include multiple financial appendices generated by our software (debt maturity profile, monthly financial statements, financial analysis, etc.).

Our hotel business plan template's appendices include:

  • A Maturity profile chart showing the principal repayments of their loans over the next 3 years
  • A monthly cash flow forecast: showing how much cash is being generated or consumed each month over the first 3 years of operations

hotel business plan template: monthly cash flow forecast

Hotel business plan template sample

Executive summary, business overview.

The Hotel Le Cardinal will be an independent hotel aimed primarily at tourists visiting the seaside resort of Cabourg.

The hotel is located in a 1920's building, on a street in downtown Cabourg and close to the resort's main attractions.

The building will be completely renovated and equipped to receive a 3-star rating. The hotel will have a capacity of 20 rooms that can accommodate 38 people, as well as a private car park with 17 spaces.

The legal structure chosen is that of a limited liability company. The company will be managed by 2 veterans of the hotel industry: Mr Romain D. (50% of the shares) and Mr Damien S. (50% of the shares).

Romain has worked in the commercial division of one of Europe's leading hotel chains for 10 years, whilst Damien, who has spent the last 5 years managing a hotel in Caen, has over 15 years of experience working in the operational aspects of the hotel trade.

Market Overview

Domestic Market

On average, the French hotel sector reaches annual revenues of €15.8 billion, €12 billion of which concerns independent leisure and corporate travel.

One fundamental trend affecting the hotel market is the rising importance of the Internet, with a study carried out by the firm Coach Omnium in 2012 estimating that up to 93% of hotel customers search for their hotels online.

According to a Phocuswright study from 2013, we can estimate that the typical breakdown of hotel reservations in 2015 is as follows:

  • 66% of direct reservations (at the front desk of a hotel or over the phone)
  • 24% of online reservations via an online travel agency (these websites generally take a commission of between 10-30% of the room rate, including taxes)
  • 10% of online reservations via the hotel's website

Target Market

We have identified the following customer segments:

  • Parisians: couples, groups of friends, and families wishing to escape from the capital and enjoy the charms of the seaside resort for short (weekends) or medium-length stays (school holiday periods), thanks to easy accessibility of the resort by train or car.
  • Seniors: retirees who have more time than working people and a budget that allows them to travel more often, especially during the off-season.
  • Foreigners: groups and families of Europeans wishing to visit the region, especially the sites of the 1944 landing.

Financial Highlights

We expect the company to be profitable in its first year of operation. We expect to achieve a turnover of €424,115 and EBITDA of €48,721 in the first year and a turnover of €476,531 and EBITDA of €93,385 in years 2 and 3.

Based on the current plan, the EBITDA margin is expected to be 11.49% of sales in year 1, and we believe that the improved hotel occupancy in subsequent years will enable us to achieve an EBITDA margin of 19.60% in years 2 and 3.

The business should be sufficiently capitalized to allow us to meet our loan repayments while maintaining sufficient liquidity to meet any contingencies and keep the hotel in good condition.

The objective of this business plan is to obtain bank financing of €200,000 to finance part of the renovation work and the purchase of equipment necessary for the opening of the hotel.

500,000+ entrepreneurs have already used The Business Plan Shop

Easy to get started with and well-guided throughout. Lots of business plan templates to help you and writing is easy because there are explanations at each step of the process.

Quite frankly excellent because I was able to finalize my business plan in less time than expected. This software offers a very coherent and complete approach to writing your project.

It is a very well designed software that allows you to visualise each step of your project, understand if the idea is viable or not and think about the steps needed to start your business.

The software is just impeccable. Of course, it meets the requirements of people starting a business. In addition to having a tool for putting together a proper financial forecast, there is also a tool to help write the business plan.

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hotel owner using our business plan template

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Hotel business plan template faq.

A hotel business plan is a written document that sets out the commercial, operational and financial objectives of the company over the next 3 to 5 years.

It consists of two main parts:

  • A written part that presents, in detail, your hotel business, the team, your strategy, and your medium-term objectives.
  • A financial forecast that highlights the expected profitability of the hotel and the initial funding requirements.

The lack of business planning is one of the main reasons why more than 50% of startups fail within 5 years. If you're starting a hotel, writing a business plan is a must-have in order to reduce the risk of failure of your project.

Business plans are also required by most lenders and investors in order to secure financing, therefore a business plan is also highly recommended if you're seeking a loan or equity investment for your hotel.

Writing a hotel business plan without The Business Plan Shop can be both error-prone and time-consuming - whether you're new to entrepreneurship or experienced:

  • You'll need to research the structure of a business plan, what to include in each section, and what key elements investors and lenders expect to see
  • You may encounter writer's block (especially if it's the first time you're writing a business plan for your hotel)
  • You'll need to create a financial forecast on a spreadsheet which requires a solid understanding of accounting and financial modelling in order to be done without error
  • You'll need to spend hours formatting financial data on Excel or Sheets before it's ready to integrate into your business plan
  • Any updates to your hotel business plan or financial forecast will need to be done manually

Luckily for you, The Business Plan Shop's online platform and hotel business plan template guide you through every stage of writing a business plan, so that you can spend more time managing and growing your business instead.

Our editor follows a best-in-class structure for professional business plans. Each section and subsection includes examples and instructions to help you, while our business plan templates provide further inspiration if you're stuck.

Our financial forecasting software helps you create a forecast and integrate it into your business plan with ease. Anytime you update your data, your business plan automatically updates.

And with our forecasting software all the calculations are done for you, without errors.

The budget to start and run a hotel will depend on the exact concept and location.

A small boutique hotel in an inexpensive neighbourhood and fewer rooms will require limited investment. A bigger hotel with more rooms, restaurants and more services for guests will require a larger upfront investment and more staff to operate.

As an example, in our hotel business plan template the total initial funding requirement amounted to €270,000 (c. $289,000 or £232,750), with the founders contributing €170,000 (c. $182,000 or £146,550).

In order to assess the exact budget for your hotel idea, you need to do a financial forecast using a financial projection tool such as the one we offer .

The package we offer at The Business Plan Shop goes way beyond a simple blank template you need to fill. With our platform you get:

  • Access to one of the best business plan software on the market
  • Access to our hotel business plan template which contains a complete example of a written business plan and financial forecast to start a hotel
  • Access to our entire business plan templates library - giving you dozens of examples to take inspiration from
  • Access to our financial planning and analysis platform so that you can track the actual performance of your business against what you had planned in your business plan and re-plan easily

But you shouldn't take our word for it: try our solution for free and make your own opinion!

The free trial enables you to try the software for free during 7 days in order to verify that it meets your requirements before buying.

Some features are limited during the free trial, the main limits are:

  • You can only create one business plan
  • The financials of the first year are visible, but data for other years are hidden
  • You can export your plan in PDF but not in Word or CSV
  • No access to our business plan templates

You can create your account and start your free trial here .

Access to our template is included with all our paid subscriptions.

Please visit our pricing page to learn about this in more detail.

Other business plan templates and resources to discover

Hotel Business Plan Guide + Sample Plan

hotel business plan format

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:

  • Why Write a Business Plan For a Hotel?
  • What to Include in a Hotel Business Plan?

Hotel Business Plan Outline

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.'

What to include in a hotel business plan?

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.  

hotel business plan format

We can also see what keywords are sending the most traffic to that page below:

hotel business plan format

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.

Table of Contents

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. Market Analysis

3.1. industry overview.

3.2. Collaborator and Competitor Identification

3.3. Target Beneficiaries

Key Point  1

4. Marketing and Fundraising

4.1. Strategic Plan

4.2. Program or Service Offerings:

4.4. Distribution Channels

4.5. Promotions and Fundraising

Key Point  2

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

Key Point  3

6. financial plan.

6.1. Startup Costs

6.3. Expense Projections

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

Key Point  5

 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.

   1.2. Objectives

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.

  1.3. Mission Statement

 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.

  1.4. Keys to Success

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. Company Description

   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.

   2.2. Legal Structure

 Describes the hotel's legal structure (e.g., sole proprietorship, partnership, LLC, corporation).

        - Example: Seaside Crest operates as a limited liability corporation (LLC)

 2.3. Unique Selling Proposition

  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. 

  2.4. Target Market

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.

3.2. Competitor Analysis

 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.

3.3. Target Market Analysis

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.

3.4. Market Opportunities

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.

hotel business plan format

  • Example 1: Conduct a survey among tourists in the area to determine their preferences for tropical-themed accommodations and their interest in a hotel with a beachfront location. (e.g., 80% of surveyed tourists express a strong preference for hotels with a tropical theme and direct beach access)
  • Example 2: Analyze the occupancy rates and average daily rates of existing hotels in Key West to assess the demand and pricing trends in the market. (e.g., The average occupancy rate in Key West hotels during peak season is 85%, indicating a high demand for accommodations)

4. Marketing and Sales Strategy

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.

4.2. Pricing Strategy

 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.

4.3. Sales Strategy

  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.

4.5. Promotions and Advertising

 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..

hotel business plan format

  • Example 1: Collaborate with local travel agencies to offer exclusive vacation packages that include a stay at Seaside Crest, showcasing the unique tropical experience and attracting potential guests. (e.g., 50 vacation packages sold within the first month of collaboration)
  • Example 2: Organize a pre-launch event at a popular local venue, inviting travel influencers and bloggers to experience a preview of the hotel's amenities and share their impressions on social media. (e.g., 10 influencers with a combined reach of 500,000 followers attend the event and generate significant online buzz)
  • Example 3: Offer a giveaway on social media to build a following

5. Facility Maintenance and Operations Plan:

   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.

5.2. Safety and Security:

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.

5.3. Cleaning and Housekeeping:

  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.

hotel business plan format

  • Example: The founding team of Seaside Crest includes Sarah Johnson, a seasoned hotelier with over 10 years of experience in managing luxury beachfront resorts, ensuring a deep understanding of the hotel industry's dynamics and customer expectations.
  • Bennet  Leifer a renowned interior designer specializing in tropical-themed hospitality spaces, brings his expertise to Seaside Crest, ensuring the hotel's aesthetics align with the target market's preferences and create a memorable guest experience.

5.4. Energy Efficiency:

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.

5.4.  Inventory Management:

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. 

   6.1. Startup Costs

  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.

hotel business plan format

6.2. Revenue Projections

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.

Watch how to create financial projections for your Hotel

hotel business plan format

 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.

hotel business plan format

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.

hotel business plan format

 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.

hotel business plan format

  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.

hotel business plan format

Key Point  4

hotel business plan format

  • Example 1: Benchmark financial projections against industry averages, such as the average revenue per available room (RevPAR) and average daily rate (ADR) for hotels in Key West, to ensure realistic revenue forecasts. (e.g., Seaside Crest's projected ADR is $250, in line with the average ADR of comparable beachfront hotels)
  • Example 2: Analyze historical data from similar hotels in the area to estimate seasonality and demand fluctuations, accounting for factors like peak tourism seasons and local events. (e.g., Seaside Crest projects a 90% occupancy rate during the winter season based on the historical occupancy rates of nearby beachfront hotels)

   7.1. Supporting Documents

 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.

   7.2. Glossary of Term

 Provides definitions for industry-specific terms used throughout the business plan to ensure reader comprehension.

   7.3. References and Resources

Lists any sources or resources referenced during the preparation of the business plan, including industry reports, market research data, and relevant publications.

hotel business plan format

  • Example 1: the owners of Seaside Crest invest a significant portion of their personal savings into the hotel's development and operations, demonstrating their commitment and confidence in the success of the venture. Additionally, they secure a personal guarantee for the hotel's financing, further aligning their interests with lenders and showcasing their willingness to share the risk.

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.

About the Author

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.

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SharpSheets

500+ business plans and financial models

Boutique Hotel Business Plan Blueprint: Complete Guide

Avatar photo

  • January 3, 2023
  • Hospitality

hotel business plan format

Whether you’re looking to raise funding from private investors or to get a loan from a bank (like a SBA loan) for your boutique hotel, you will need to prepare a solid business plan.

In this article we go through, step-by-step, all the different sections you need in the business plan of your boutique hotel . Use this template to create a complete, clear and solid business plan that get you funded.

1. Boutique Hotel Executive Summary

Though the executive summary is the first and the most important section, it should normally be the last section you write because it will have the summary of different sections included in the entire plan.

Why do you need a business plan for a boutique hotel?

The purpose of a business plan is to secure funding through one of the following channels:

  • Obtain bank financing or secure a loan from other lenders (such as a SBA loan )
  • Obtain private investments from investment funds, angel investors, etc.
  • Obtain a public or a private grant

How to write your boutique hotel’s executive summary?

Provide a precise and high-level summary of every section that you have included in your business plan. The information and the data you include in this segment should grab the attention of potential investors and lenders immediately.

Also make sure that the executive summary doesn’t exceed 2 pages in total: it’s supposed to be a summary for investors and lenders who don’t have time to scroll through 40-50 pages, so keep it short and brief.

The executive summary usually consists of 5 major sub-sections:

  • Business overview : explain what is the concept of your hotel, whom it targets (business travelers vs. tourists), where it’s located, its size and any other amenities and services you offer
  • Market & competitive overview : start by describing the state of the hotel industry in your area (the city or region where you plan to open yours). Also explain here the level of competition you expect from similar establishments. Finally, mention who are your target customers (your ideal customers) ie. their age, gender, disposable income as well as their preferences
  • Sales & marketing strategy : describe how you plan to acquire new customers, outlining the exact marketing channels you intend to use and your overall budget
  • Management & People : this section should provide information about the leadership hierarchy, highlighting the roles and responsibilities of every team member and their experience
  • Financial plan : how much profit and revenue do you expect in the next 5 years? When will you reach the break-even point and start making profits? You can include here a chart depicting your key financials such as revenue, gross profits, and net profit
  • Funding ask : what loan/investment/grant are you seeking? How much are you raising ? How long will this last?

hotel business plan format

Hotel Financial Model

Download an expert-built 5-year Excel financial model for your business plan

2. Boutique Hotel Business Overview

This is the section where you will provide details about your boutique hotel and its concept. You must address some important questions that lenders and/or investors generally ask.

Here is a quick list of some of those questions you must address:

  • What is the rationale behind you opening this type of hotel today?
  • What’s the location of the hotel and why did you select that location?
  • What hospitality services and products will you provide? Will you offer any special services (massage, gym, etc.)? 
  • Will there be a restaurant?
  • How many employees will you need to run the hotel?
  •  How many rooms will you have to accommodate your guests?
  • What types of rooms will you offer your customers? At what rates?
  • What will be the legal structure of your company?

a) History of the Project

Any business must have two components:

  • Passion & experience of the business owner
  • Rationale behind starting this type of business today

Passion & experience

Starting a huge investment like a boutique hotel requires much more than just capital. It also needs the relevant background experience in the hospitality industry.

Typically, many individuals creating their own boutique hotel will have a long-standing passion and track record for the hospitality industry. Yet, if you lack the experience, it probably isn’t the right time to start your boutique hotel. Instead, you can choose a franchising option and work with an established hotel franchise.

What motivates you to start a boutique hotel in the region today? Unlike some other businesses, a boutique hotel requires a lot of financial and human capital investment.

So, before taking your first steps in this field, provide enough reasons to justify your decision to venture into the business. For instance, if there’s a scarcity of stylish boutique hotels targeting tourists in the region, you can use that to justify your reasons for starting one.

hotel business plan format

b) Hotel Concept

Describe your boutique hotel’s concept. Here are a few questions you may answer here:

  • Will you target a specific market (all-inclusive vs. tourists, business travelers, etc.)? 
  • What types of rooms will you have (midscale, upscale, luxury?)
  • What amenities will you offer your guests? A restaurant, rooftop bar, a SPA, a conference/meeting room? See more on amenities in the next section
  • What will be the hotel’s design, layout and surface?
  • Where will the boutique hotel be located? Is this next to a busy street, an airport, a tourist attraction or a corporate center?

c) Services & Facilities 

Prioritize the most sought-after services in the region. While many boutique hotels offer the same services, you may want to differentiate yourself vs. competitors to attract guests.

Below are a few examples of the guest services you can provide depending on your target audience :

Boutique Hotel Services 

  • Bar / Restaurant
  • Event management (weddings, conferences, etc.)

Boutique Hotel Facilities 

  • Swimming pool / Jacuzzi 
  • Business center
  • Summer terrace
  • Smoking rooms
  • Fitness room
  • Conference room

hotel business plan format

d) Room Rates

Next, describe your pricing strategy . Indeed, designing a pricing list for a boutique hotel isn’t the easiest thing to do. So, you can rely on information from some of your biggest competitors in the region to help you set standard rates. 

Make sure to have a clear table with the different room categories and their daily rate. If you have off-peak vs. peak rates, make sure to include it too here. It doesn’t need to be exact (as the rates will likely change over time), so use price ranges instead.

e) Legal Structure

Finally, your business overview section should specify what type of business structure you want:

  • Is this a corporation or a partnership (LLC)?
  • Who are the investors? How much equity percentage do they own?
  • Is there a Board of Directors? If so, whom? Do they have experience in the industry?

3. Boutique Hotel Market Overview

Provide comprehensive information about your market. You will want to tailor your services to suit the target audience. And that means you will need accurate information about the hospitality industry in your region:

  • Industry size & growth : how big is the boutique hotel industry in your area? Is it growing / declining, and what are the factors contributing to its growth/decline?
  • Competition overview : how many competitors are there? How do they compare vs. your hotel? Are they franchises or independent boutique hotels? Do they target the same guests as you do? How can you differentiate yourself from them? 
  • Customer analysis : who is your target market ? Are they business travelers or tourists, single travelers, couples or families? How often do they travel and need an hotel? How much do they spend on average on hotel stays?

a) Boutique Hotel Industry Size & Growth

How big is the boutique hotel industry in the us.

The market size of boutique hotels in the US is estimated to be $16.9 billion in 2022.

Also, there are about 5,500 boutique hotel businesses in the country, meaning the annual turnover for each boutique hotel is around $3,000,000.

Another source estimated there were 4,600 boutique hotels in the US in 2021 and defines them as a high-end, independent hotel with less than 100 rooms and a unique design. The same source reported that boutique hotels accounted for 3.2% of total hotel rooms in the US in 2017, yet but 5.6% of the US hotel room revenue.

hotel business plan format

How big is the boutique hotel industry in your area?

After getting a clear picture of the boutique hotel industry in the US as a whole, narrow down to your location. Yet, you may not find this information anywhere (at least not for free). In that case, you can use our guide to estimate the TAM, SAM, and SOM for your business. Here is an example of how to do it:

We know the average annual turnover per boutique hotel is $3 million. Therefore, if the area where you want to open your hotel has 30 competitors (say, in a 30-mile radius), you can assume the boutique hotel industry in your area is worth $90 million .

How fast is the boutique hotel industry growing in your city?

The US boutique industry has suffered an unprecedented decline due to the pandemic. Indeed, it decreased from its peak at $20.6 billion in 2019 to $16.9 billion 2022, despite some recovery from its through.

But what about where you live? US national averages can be a great addition to your business plan, yet they don’t necessarily help to assess the boutique hotel industry where you want to open your own boutique hotel.

Instead, you can use the number of hotels as a proxy for market growth. For instance, if there were 28 boutique hotels in the region in 2020 and 30 in 2022, you can safely assume that the average annual growth rate is ~3% in your area.

The estimation above isn’t perfect as it disregard the occupancy rate. For example, if the 28 hotels had an occupancy rate of 20% in 2020, up to 50% in 2022, the market growth rate would actually be much higher i.e. 60% CAGR from 2020-22.

hotel business plan format

b) Competition Overview 

This sub-section focuses on crucial information about your main competitors. Take a closer look at the hospitality services and products offered by other boutique hotels in the region. And while at it, analyze their marketing strategies, pricing structure, and anything you can do to stand out from the competition.

Don’t forget to include a comparative table, highlighting every piece of information the lenders may need when analyzing your business. 

Here is a sample table that you can use:

c) Customer Analysis

Customer analysis is all about knowing your ideal guests: who exactly are you targeting?

You can narrow it down with the following questions:

  • Demographics (age, gender, single vs. couples, etc.)
  • Frequency of visits (how often do they need such services?)
  • Average disposable income
  • Average spend per stay (hotel, restaurant, other)
  • Favorite services (e.g. gyms, spas, etc.)

hotel business plan format

4. Sales & Marketing Strategy

This section should highlight the strategies you have in place to attract potential clients. Try to answer the following questions:

  • What are your unique selling points (USPs)?
  • Which marketing strategies will you use to attract new clients? 
  • How will you track the success of your marketing strategy? 
  • What is your customer acquisition cost (CAC)? 
  • What is your marketing budget? 
  • Will you consider any offers or promotions to attract new clients? 

What marketing channels do boutique hotels use?

Like any new business, a boutique hotel requires comprehensive marketing during the first months to attract potential clients.

You can resort to the following channels to help you get new clients, even from your main competitors:

  • Online local listing (Google reviews)
  • Online booking platforms (Booking.com, Tripadvisor, etc.)
  • Social media content & ads: for example encourage your guests to post on social media and / or hire a social media content manager who will create daily posts and manage your social media presence
  • PPC ads ( Google Ads )
  • Word of mouth, recommendations 

hotel business plan format

What are your Unique Selling Points (USPs)?

In other words, how do you differentiate yourself vs. competitors? This is very important as you might need to win customers from competitors. A few examples of USPs are; 

  • Quality of services : you may offer high-quality services (e.g. luxury suites, fine dining restaurant, etc.)
  • Pricing: your boutique hotel may be cheaper vs. competitors for the same quality of service
  • Location : setting up your boutique hotel near your target market gives you the upper hand
  • Amenities : you may be the only boutique hotel in the area offering a health SPA, a separate event center for weddings, etc.

5. Management & People

You must address 2 things here:

  • The management team and their experience
  • The organizational structure : different team members and who reports to whom

Small businesses often fail because of managerial weaknesses . Thus, having a strong management team is vital. Highlight the experience and education of senior managers that you intend to hire to oversee your hotel business.

First, describe their duties, responsibilities, and roles. Also, highlight their previous experience and explain how they succeeded in their previous roles.

Organization Structure

Even if you haven’t already hired a general manager, administrative staff, receptionists, chefs, and other relevant staff members, you must provide a chart of the organizational structure defining hierarchy and reporting lines.

hotel business plan format

6. Financial Plan

The financial plan is perhaps, with the executive summary, the most important section of any business plan for a boutique hotel.

Indeed, a solid financial plan tells lenders that your business is viable and can repay the loan you need from them. If you’re looking to raise equity from private investors, a solid financial plan will prove them your boutique hotel is an attractive investment.

There should be 2 sections to your financial plan section:

  • The startup costs of your project (if you plan to start a new hotel, renovate your hotel, adding rooms, etc.)
  • The 5-year financial projections of your boutique hotel

a) Startup Costs

Before we expand on 5-year financial projections in the following section, it’s always best practice to start with listing the startup costs of your project. For a boutique hotel, startup costs are all the expenses you incur before you open your hotel and receive your first guests. These expenses typically are:

  • The leasing deposit (if you rent) or the cost to buy the building (if you buy)
  • Renovations and improvements
  • Equipment & appliances
  • Furniture & tableware

Of course, the startup costs depend on a number of factors, like the size of your hotel, its location, the facilities, etc.

On average, it costs $8,400,000 to $10,800,000 to build and open a small boutique hotel with 20 rooms (assuming you decide to build the hotel from scratch).

Note that these costs are for illustrative purposes and may not be fully relevant for your business. For more information on how much it costs to open and run a boutique hotel, read our article here .

b) Financial Projections

In addition to startup costs, you will also need to build a solid 5-year financial model for your boutique hotel business plan.

Note that your financial projections should be built using a spreadsheet (e.g. Excel or Google Sheets) and presented in the form of tables and charts in your business plan.

As usual, keep it concise here and save details (for example detailed financial statements, financial metrics , key assumptions used for the projections) for the appendix instead.

Your financial projections should answer at least the following questions:

  • How much revenue do you expect to generate over the next 5 years?
  • When do you expect to break even ?
  • How much cash will you burn until you get there?
  • What’s the impact of a change in pricing (say 15%) on your margins?
  • What is your average customer acquisition cost ?

You should include here your 3 financial statements (income statement, balance sheet and cash flow statement). This means you must forecast:

  • The number of nights booked over time ;
  • Your expected revenue ;
  • Operating costs to run the business ;
  • The construction costs and FF&E expenses

When projecting your revenue, make sure to sensitize pricing, the expenses (salaries, utilities, supplies, etc.) and the number of stays (or booked nights). Indeed, a small change in these assumptions may have a significant impact on your revenues and profits .

hotel business plan format

7. Use of Funds

This is the last section of the business plan of your boutique hotel. Now that we have explained what your boutique hotel’s concept is, the amenities it offers, your marketing strategy, etc., this section must now answer the following questions:

  • How much funding do you need?
  • What financial instrument(s) do you need: is this equity or debt, both?
  • How long will this funding last?
  • Where else does the money come from? If you apply for a SBA loan for example, where does the other part of the investment come from (your own capital, private investors?)

If you raise debt:

  • What percentage of the total funding the loan represents?
  • What is the corresponding Debt Service Coverage Ratio ?

If you raise equity

  • What percentage ownership are you selling as part of this funding round?
  • What is the corresponding valuation of your business?

Use of Funds

Any business plan for a boutique hotel should include a clear use of funds section. This is where you explain how the money will be spent.

Will you spend most of the loan / investment in paying for construction costs? Or will it cover mostly renovation and furniture costs?

For the use of funds, we also recommend using a pie chart like the one we have in our financial model template where we outline the main expenses categories as shown below.

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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. To run your hotel plan profitability, you must have a proper business plan that will help you dance your worries away. We have various hotel business plan templates applicable for various related businesses and accommodations such as a startup mini hotel, guest house motel, 5 star resort lodge, 3 star spa, and boutique, etc. Keep scrolling!

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  • Marketing and operation plan, etc.

4. What Is a Successful Business Plan?

5. how do you write a hotel business plan.

  • Operations : explain how your organization will operate daily
  • Management : mention your management team
  • Financial details : this is where you mention all key finances
  • Project planning : define all the targets you want to hit
  • Appendix and other details.

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Hotel Business Plan Sample

Jul.04, 2013

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Hotel Business Plan Sample

Table of Content

Hotel Business Plan for starting your own hotel

Hotels are among some of the best businesses that you can start if you have the investment for it. As a matter of fact, if you want to invest a large sum of money in a business that has virtually zero risk, rental real estate business plan might just be the safest option.

We will give you a business plan for hotel that you can use to start your own hotel and make a lot of money while you are at it. This sample business plan for a hotel will follow the example of Hotel Intergalactic, a venture by John Abruzzi. Let us now see what business consultants have to say about this business.

Hotel Business Plan Summary

2.1 the business.

Hotel Intergalactic will be a 3-star hotel situated in downtown Los Angeles. The hotel will be registered with the local government and will be insured. The details of this business will be described in this executive summary for hotel with focus being on the way you can make lucrative profits by owning a hotel.

2.2 Management of Hotel Business

The next thing this business plan template for hotel needs to address is the way this hotel will be managed. For this, we will hire a manager to look after the day-to-day matters of the hotel. Other than the manager, one accountant and three assistant managers will be hired.

As this is a business plan for small hotel, we will not be hiring a lot of managerial staff to run it. The assistant managers will be responsible for procurement, operations, and customer service. The assistant managers will report to the manager who will act as an agent of the owner, John Abruzzi and will make decisions on his behalf in his absence.

2.3 Customers of Hotel Business

The customers of this free sample hotel business plan will be the following:

  • People coming to visit Los Angeles.
  • People who are in Los Angeles for business meetings.
  • Los Angeles-based companies that need accommodation for their employees coming from other cities.

2.4 Business Target

The targets of Hotel Intergalactic are:

  • Becoming the best hotel in Los Angeles.
  • Starting to make a profit of $29,800 a month by the end of year 3.
  • Expanding its services to at least other cities by the end of year 5.

Company Summary

3.1 company owner.

Hotel Intergalactic will be owned by John Abruzzi. John has a master’s degree in hospitality management and has been working in the hoteling industry for more than half his life. He knows the business and is passionate about it. He also has enough money to start the business. Combined, all these factors make him the perfect owner in this hotel business plan pdf.

3.2 Why the Hotel is being started?

John Abruzzi is one of the most prominent hotel managers in the area and that means if he starts a hotel people will know he means business. In this example of a hotel business plan, the main reason for starting this business is that this is a profitable business opportunity.

3.3 How the Hotel will be started?

Step1: Making a Feasibility Report

The next thing this new hotel business plan needs to discuss is the feasibility report. At this stage, a survey will be conducted to chalk out the demand and availability of hotels in downtown Los Angeles area. Any good hotel business plan sample doc needs to make sure of the thing that a proper feasibility report is made and the hotel is designed according to the demand in the area.

Step2: Developing a Brand

This hotel business plan, just like a resort business plans needs to cover another important thing. This is developing a brand. As the hotel is going to be in the heart of Los Angeles, it is cardinally important to have a brand.

Step3: Establishing the Hotel

As the hotel is to be constructed from scratch, the best-case scenario would’ve been an empty plot but that is not the case as the downtown Los Angeles area is fully covered by a concrete jungle. For this purpose, an apartment building will be bought and will be modified into a hotel.

Step4: Promotion and Marketing

Last, but not the least, the hotel needs to be promoted on all media channels to make sure people are aware of its existence and it attracts business.

Services of Hotel Business

A hotel business plan, unlike a home inventory business plan has a limited number of services. While a home inventory service business can offer a lot of services, a hotel business can only offer a few. Here’s an overview of the services Hotel Intergalactic will be offering:

  • Accommodation

It goes without saying that the most important service offered by the hotel will be accommodation. The hotel will have 20 single-bed, 20 double-bed, and 10 twin-bed rooms for accommodating the guests.

  • Banquet Service

The second most important service provided by Hotel Intergalactic will be that of a banquet. Three large halls will be made a part of the hotel and will be provided for everything from business meetings to birthday parties.

The top floor of the hotel will have an open-air rotating restaurant which will be open for the guests in the hotel and any other person coming in just for a meal.

  • Bar and Lounge

The hotel will also feature a bar and a coffee lounge. These services will also be available for both the guests of the hotel as well as other people.

Marketing Analysis of a Hotel Business

Marketing analysis is the study of the various variables of the market that can affect the successful operation of a business. Any business plan for a hotel operation needs to shed light on this in order for the hotel to be successful. Before we get into the details of this business plan sample hotel industry, we need to have a look at the industry as a whole. There are just above 90,000 hotels in the US and more than $194billion change hands in this industry annually.

5.1 Market Trends

If you want to learn how to write a business plan for a hotel, you will have to closely study the trends of the industry. Just like making “https://www.ogscapital.com/article/property-management-business-plans”sample property management business plans, it is important to have an insight into the market before establishing a hotel.

The US hoteling market might have its seasonal ups and downs, but it has been noted in the past decade that the industry has seen a steady growth. The worth of this industry has increased from $133billion in 2009 to just under $200billion in the last decade. Industry experts and analysts are of the view that this industry will show a minimum of 5% growth by 2025.

Let’s now see more details of this hotel business plan outline.

5.2 Marketing Segmentation

One of the most important things to consider when planning any business is the market segmentation. You need to have a clear idea of the market segments that you are going to target and only then you can properly plan everything.

Apparently, the hoteling business is only for one market segment, the people who need a place to spend the night. However, there is more to the story that just that. Even a house painting business plan has multiple market segments. Any hotel can have customers and clients divided into a number of market segments. We will focus on four segments of the market via Hotel Intergalactic.

5.2.1 Individual Customers

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Most of our customers will fall into this category. These will be the people who show up at the hotel and want a room. We will make every possible effort to make sure these customers go home happy and consider us the next time they need a hotel.

5.2.2 Companies

Companies need accommodation for their employees when they are on a meeting. This segment of the market will give us bulk business and we will offer them discounts to make them our loyal customers.

5.2.3 Bar and Restaurant Customers

As the hotel will have a bar and restaurant, the people coming to visit them will also be a segment of the market for us.

5.2.4 Banquet Customers

As the hotel is to have three banquet halls, this will also be an important market segment for us. We will rent out the halls for conferences, parties, weddings, birthdays and any other function people need them for.

5.3 Business Target

Our business targets are:

  • To maintain the highest standards of client satisfaction.
  • To become a well-known name in the industry.
  • To expand the business to all the major cities of the US.

Business plan for investors

5.4 product pricing.

Hotel Intergalactic will offer the services at a price comparable to that of the competitors. We might keep the price a bit lower than that of the competition at the start to attract customers but once we earn name, we will increase the prices.

Marketing Strategy of Hotel Business

The next important thing for opening a hotel business plan is the marketing strategy of the hotel. No hotel management company business plan can be complete if it has no marketing strategy. To make a workable marketing strategy, we need to do the following.

6.1 Competitive Analysis

The competitive analysis for Hotel Intergalactic has revealed the following:

  • The competition in this field is immense in the area we are working in. We need to provide something extra to get customers.
  • We will provide complementary dinner to our customers. No hotel in the area does this and this will give us a competitive edge.
  • We will subsidize the companies who want accommodation for their employees so that they choose us over the other options.

6.2 Sales Strategy

  • We will advertise the hotel through all the media channels in the area.
  • We will partner up with travel agents and tour planners to get customers.
  • We will offer discounts to companies who want to get accommodation for a large number of their employees.

6.3 Sales Monthly

6.4 sales yearly, 6.5 sales forecast, personnel plan.

Another thing that needs to be made clear in this hotel resort business plan sample is the staff that we will need to operate the hotel. Unlike an RV park start up business plan , we will need a larger workforce to smoothly run the operations of the hotel.

7.1 Company Staff

  • John Abruzzi will be the owner and CEO of the hotel.
  • 1 General Manager.
  • 2 Assistant managers.
  • 1 Accountant.
  • 1 Receptionist.
  • 3 Waitresses.
  • 2 Bartenders.

7.2 Average Salary of Employees

Financial plan.

The last thing to be discussed in this business plan is the budget for hotel business plan. As the hotel is being started from scratch, the following expenses are to be arranged:

  • The cost of establishing the hotel.
  • The cost of hiring the staff.
  • The salaries of the staff for the first 6 months.
  • The cost of buying cars for guest pick and drop.
  • The money needed to advertise the hotel.
  • The money needed to establish a web presence of the hotel.

8.1 Important Assumptions

8.2 break-even analysis, 8.3 projected profit and loss, 8.3.1 profit monthly, 8.3.2 profit yearly, 8.3.3 gross margin monthly, 8.3.4 gross margin yearly, 8.4 projected cash flow, 8.5 projected balance sheet, 8.6 business ratios.

Download Hotel Business Plan Sample in pdf

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hotel business plan format

2 thoughts on “ Hotel Business Plan Sample ”

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COMMENTS

  1. Hotel Business Plan Template

    Steps of your Hotel Business Plan. Let's dive into the step-by-step checklist of what your hotel business plan should look like. Infographic by Xotels. 1. Executive Summary. This first part should consist of two main parts, being: Mission Statement (Introduction): a 1 line company description only the essence of your hotel (not 2 lines or a ...

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    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.

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    In this article we go through, step-by-step, all the different sections you need in the business plan of your boutique hotel. Use this template to create a complete, clear and solid business plan that get you funded. 1. Boutique Hotel Executive Summary. Though the executive summary is the first and the most important section, it should normally ...

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