Hotel Business Plan

Business Plan Articles

If you are starting or acquiring a hotel and need financing, it is likely that you will need a business plan. A professional hotel business plan should reflect a number of unique factors including the location, market positioning, and capacity. Pro Business Plans has worked with many hotels to create custom plans to raise investment and bank loans. The following article outlines what is included in a custom hotel business plan.

hotel business plan

Hotel Business Plan

If the hotel is existing, the business plan should present the proposed changes by the management team to form financial projections about its future performance. If it is a new hotel, the plan should demonstrate how and why it will be able to fulfill the market demand. Many companies have achieved substantial returns on investment from hotels, but it is still important to communicate the positioning and potential of your hotel. This includes a description of the business model, marketing plan, and projections about the financial performance.

Business Model

The business model for a hotel is distinguished by its market positioning, location, and operations plan. Some hotels in premium locations with professional customer service target upper income business travelers. Others may target luxury vacationers to the same demographics, but for different travel purposes. A budget hotel can be just as profitable as a luxury one with lower prices and higher turnover, but the business model should be consistent. Charging low prices for a high-end luxury experience will quickly reduce the profit margins in a way that will reduce profitability.




Marketing Plan

The marketing strategy for a hotel depends upon the nature of its structure. Some franchises have strict controls on the way its franchisees can promote and the brand is already well established. In other circumstances, the brand needs to be established and public relations needs to be acquired. New hotels may seek to establish affiliate relationships with tourism groups or other synergistic companies, but all understand the importance of social media and a robust online marketing strategy. Users place tremendous emphasis on hotel reviews and reputation management should be a key priority.




Financial Projections

The financial projections for a hotel business plan should be based upon the potential capacity and the seasonal capacity utilization rate. Most hotels will have dynamic pricing based on the seasonal demand, which can be challenging to determine if the hotel is new. However, investors will be concerned with the potential profitability and break-even rate that the hotel needs to fulfill. This may be done by either analyzing comparable hotels in the area and analyzing regional traveler data. The profitability may be determined based on the expense structure of similar hotels, such as the percent of revenue spent on payroll. Pro Business Plans can help your hotel to create custom financial projections for your hotel business plan, contact us for a complementary consultation.




What is Included in Our Custom Hotel Business Plan?


  • Marketing Plan
  • SWOT Analysis
  • Competitive Analysis
  • Profitability Analysis
  • Personnel Plan
  • Organizational Chart
  • Company Valuation
  • Executive Summary
  • Company Description
  • Keys to Success
  • Three Year Objectives
  • Product or Service Description
  • Market Research
  • Fundraising Support
  • 12 Month & 3 Year Profit & Loss
  • 3 Year Balance Sheet
  • 12 Month & 3 Year Sales Forecast
  • 12 Month & 3 Year Cash Flows
  • Break-Even Analysis
  • Financial Ratio Analysis
  • Management Team

Speak With An Expert advisor about your plan at (877) 810 - 4172