According to the United States Bureau of Labor Statistics, the hotel industry is expected grow by 5 percent between 2008 and 2018. Like any business, starting a hotel requires careful research and planning before opening. The easiest way to do this is to create a detailed business plan for your hotel.
The first part of the business plan for your hotel is to write the executive summary section. This includes several components, including your mission statement and objectives. A mission statement is a single sentence that describes why you are in business, such as, "To be the hotel with the highest level of service in the industry." Your objectives are the things you hope to accomplish with your hotel business, such as, "Maintain a 75 percent occupancy rate throughout the year."
The next part of your hotel business plan is to provide an analysis of the hotel industry. Investors want to see that you understand the current state of the hotel industry. Outline any hotel industry trends and how those trends impact your business. Then, list each hotel that competes with you for business in your local area. Include each of their strengths, weaknesses, occupancy rates and market share.
A good business plan for your hotel also clearly communicates your target market, which are the types of customers who will stay at your hotel most often. Create a list of several customer segments that are likely to stay at your hotel. For example, one segment you might target is middle-aged men who travel for business. Another may be young couples who are looking for honeymoon destinations. Communicate how your hotel will meet the needs of each of your market segments.
The operations plan details the management team and staff you have chosen to manage your hotel. Talk about your past experience and your ability to oversee and manage a hotel as well. Include bios and resumes for key managers and communicate your plan for hiring, training and retaining employees. The operations plan also should include a list of suppliers and how you will obtain and manage inventory.
For the financial plan section, communicate the startup costs of the hotel, the ongoing costs of doing business and your projections for revenue and expenses for one , three and five years. Revenue projections are based on the number of rooms you will have, price per room and your expected occupancy rate.