How To Write A Business Plan For A Hotel
For entrepreneurship of hospitality properties, it is necessary to know how to write a business plan for a hotel. Writing such a plan shows consideration and projection of background, finances, property value, location, viability, marketing, operations and revenue. Writing a plan that shows a complete outline with supportive details will demonstrate feasibility and the potential of the hotel. Discover which essential parts to include when writing your hotel business plan. Develop instrumental content for the business portion of your hotel plan. Use each sub-heading of the outline as a guide to write from. Regard the sub-headings as subjects or topics to write upon. As for writing style, strive to write text that is informative while being concise, direct and to the point.
- Present the prospective hotel. This business plan can adequately serve for either a new or existing lodging property. Write the hotel name or proposed name of the hotel, the address of the hotel or the site at which the hotel would be constructed. Indicate the number of existing or planned hotel rooms, along with any on-site or intended recreational amenities, as well as the inclusion or probability of food service.
- List the value. Interpret value as either the listed price of the standing hotel complex, or the costs associated with combined property worth and new construction.
- Reference the location. Cite the geographic setting of or for the hotel. Describe whether the customer-base is or will be derived from business, recreation or tourism.
- Define the viable nature of the hotel venture. Determine the area’s need for the hotel as it relates to two distinct areas—supply and demand. Supply is written in regards to how many hotels will serve the same immediate area. Demand depicts the anticipated volume of customer traffic that will be traveling to or through the area where the hotel is located.
- Introduce yourself and your background. In addition to your name, write on your qualifications, expertise and the experience that you will bring to support the hotel project’s business plan. These constructive traits may include congruent education, management or proprietary roles within the field of hospitality.
- Indicate the financial situation. First, write into the plan your accounted finances that you can commit to a hotel purchase. Second, consider those real or tangible assets that you own, with proof of such purchases or titling. Of such assets, write the ones into this plan that you would be willing to present for collateral. Last, calculate and list an amount of funding that will need to be obtained or secured in order to complete the hotel purchase transaction.
- Incorporate intended methods for hotel marketing within the business plan. Research, determine and write how the hospitality property will be advertised and promoted. Promotional methods of marketing include hotel franchises and travel clubs, along with audio, print and visual modes of advertising.
- Present details of operation for the hotel. Write on how the hotel will operate. An operational guide will show the functionality of the particular property. The presentation is to consist of auditing, front desk, housekeeping, maintenance, management, marketing and amenity staffing.
- Estimate the hotel’s expenses. Prepare, as an equal and integral part of this business plan, a projected budget. Writing such a budget reveals advertising, decor, electronics, fees, furnishings, insurance, licensing, linens, payments, products, salaries, supplies, utilities and wages.
- Project an annual income for the hotel. A study of the hotel, its area and associated businesses, along with local government and chamber of commerce sources, will provide the statistics to compile a report from.