Hotel Business Plan [Sample Template]

Are you about to start a hotel and hospitality business? If YES, here is a complete sample hotel business plan template & feasibility report you can use for FREE.

Okay, so we have considered all the requirements for starting a hotel business. We also took it further by analyzing and drafting a sample hotel marketing plan template backed up by actionable guerrilla marketing ideas for hotel businesses.

So let’s proceed to the business planning section. All over the world, the hospitality business is being seen as a very serious trade and the reason for this cannot be farfetched.

The reason the hospitality business – especially the hotel business is being taken seriously is because of its relationship with the tourism industry. Starting a hotel business could eventually be one of the best things to attain for yourself. This is because of the lucrative nature and prosperity involved in this industry.

Every day foreigners, as well as local migrants and business people, travel from one point or the other and the option they are faced with is staying in hotels. It is pertinent to note that there are different categories of hotels, like 5-star, 4-star or even 3-star hotels.

One of the essential things that are unique to each category of the hotel is the facilities that make up each. Whatever type of hotel category you may have in view, there is always the most important step to take in making your business stand out, as well as succeed in the long run.

What can this be? Well, that is the hurdle of writing a business plan. You too have the wherewithal to do so, as a well put together business plan is available to you below.

A Sample Hotel Business Plan Template

1. Industry Overview

The hospitality industry has been in existence from time immemorial and it is still waxing strong simply because people can’t do away with the services they offer. When you talk about a hotel, you are talking about an establishment that provides lodging for guests/travelers, tourists, visitors et al, on a short-term basis with a fee.

When people lodge in hotels, they have the option of subscribing to other services the hotel offers; services as feeding, drinks, laundry, fitness center, swimming pool, conference room, and business room, amongst others.

As a matter of fact, the facilities provided by some hotels may range from a basic bed and storage wardrobe to luxury features such as en-suite bathrooms, mini parlor et al. It is the norm for big hotels to provide additional guest facilities like a swimming pool, conference center, business center, childcare, self-service laundry, fitness center, and social function services.

In some countries, hotels are required by law to serve food and drinks to all their clients that are lodged in their facility while in some countries, you would have to choose the additional services you want from the hotel. The bottom line is the higher the amount you pay in hotels, the more the services you are entitled to.

Starting a hotel business is capital intensive and it is considered a long-term investment because it takes a while for the owners to break even and start making profits. No doubt it takes a big-time investor to consider starting his or her own hotel business, which is why loads of hotels are owned by groups of investors.

One good thing about the hotel business is that the business can grow so big that it will not only have an active presence in key cities in the country where it started from but in major cities on all the continents of the world. It is important to state that hotel operations vary in size, function, and cost which is why hotels are classified into different grades (two-star hotels, five-star hotels, seven-star hotels et al).

2. Executive Summary

Sean and Sharon Hotel will be located in the heart of Las Vegas less than 20-minute drive from McCarran International Airport in Las Vegas, and a few minutes drive from Mandalay Bay Event Center. We are conveniently located in the world’s headquarters for casinos and games; a commercial center.

Sean & Sharon Hotel believes in the passionate pursuit of excellence and financial success with uncompromising services and integrity, which is why we have decided to venture into the hospitality industry by establishing our own hotel.

We are certain that our values will help us drive the business to enviable heights and also help us attract the number of clients that will make our hotel fully booked all through the year.

We are going to be a customer-centric hotel with a service culture that will be deeply rooted in the fabric of our organizational structure and indeed at all levels of the organization. With that, we know that we will be able to consistently achieve our set business goals, increase our profitability and reinforce our positive long-term relationships with our clientele, partners, and all our employees as well.

Our hotel facility will be decorated in an exquisite and elegant facade, so much so that it will be a conspicuous edifice in the city where it is located. Sean & Sharon Hotel will provide a conducive spot for our customers to take a break from their various busy schedules, to a place where they can find comfort and luxury.

Sean and Sharon’s hotel will be equipped with a business center and a VIP lounge, as well as a Fitness room and self-service laundry which will be made available for resident guests at no extra cost.

We will also install free Wi-Fi that will enable our guests to surf the internet with their laptops in the hotel room free of charge, and there will be wireless access in all the public areas in the hotel; we will also provide mobile phones for a loan to business travelers for their convenience so as to enable them to stay in – touch with their family members, friends, and business partners.

No doubt our business class guest rooms will provide our customers with a warm and comfortable home away-from home experience, a large banquet venue, as well as Chinese and Intercontinental cuisine. We are set to give our esteemed guests an unforgettable experience whenever they patronize our hotel.

Sean and Sharon Hotel is owned by Sean Glacier, Sharon Glacier, and other investors whose names can’t be mentioned in this business plan for obvious reasons. The owners and board members of Sean and Sharon hotel are big-time investors in the hospitality industry.

Sharon Glacier has well over 20 years of experience in hotel management and she has a Master’s Degree in Hotel Management. She will be bringing her wealth of experience to the table to make Sean and Sharon Hotel the number one choice in Las Vegas.

Over and above we are building a hotel business that will be the cynosure of all eyes. One that competes favorably with other hotels that are in existence in Las Vegas. We plan to do this bearing in mind that it would take hard work, loads of financial commitment, as well as well-trained employees who can be indoctrinated in the quest for building a top-notch hotel in Las Vegas city.

3. Our Products and Services

Sean and Sharon Hotel is set to operate a standard hotel service in Las Vegas, Nevada. The point that we want to become a force to reckon with in the hospitality industry means that we will provide our guests with a fitness room, social room, self-service laundry room, and business center; for the purpose of business or leisure and more.

In all that we do, we will ensure that our guests leave with an unforgettable experience that will make them want to come back as well as recommend our hotel to their friends, family members, and business partners. These are the services and amenities that will be made available to our guests;

Lodging
Meals (Local Delicacies, Chinese cuisines, and intercontinental cuisines et al)
Drinks (wines, beers, distilled spirits, martinis, beverages, and non–alcoholic drinks)
Swimming pool
Gym
Self – service laundry room
Business center
Minimart
Conference room
Banquet venue
Childcare
Shuttle service

4. Our Mission and Vision Statement

Our vision is to open a standard hotel that will become the number one choice in Las Vegas
Our mission is to deliver reliable, genuine, caring, and excellent service superior to what our competition can offer in any location where our hotel will be situated and to ensure that our hotel enjoys over 90 percent occupancy in most parts of the calendar year.

Our Business Structure

The success of any business is to a larger extent dependent on the business structure of the organization and the people who occupy the available role. Sean and Sharon Hotel will work with a business structure that will give room to employees to explore their creativity, give a sense of belonging, as well as grow through the corporate ladder of the organization.

We will work hard to ensure that we only recruit the right set of people with the right mindset to help us achieve our business goals and objectives in record time. We intend to build Sean and Sharon Hotel on this structure;

Chief Executive Officer (Owner)
Hotel Manager
Human Resources and Administrative Manager
Bartender/Baristas
Accountants/Cashiers
Facility/Maintenance Manager
Marketing Officer
Front Desk Officer
Cleaners/Washer men
Security Officers

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

Responsible for providing direction for the business
Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
Responsible for fixing prices and signing business deals
Responsible for recruitment
Responsible for payment of salaries
Responsible for signing checks and documents on behalf of the company
Evaluates the success of the organization

Hotel Manager:

Responsible for managing the daily activities in the hotel
Ensures that the facility is in tip-top shape and conducive enough to welcome customers
Interfaces with vendors
Reports to the Chief Executive Officer
Attends to Customer complaints and inquiries
Prepares budget and reports for the organization
Responsible for Training and Development in the organization
Handles procurement
Handles any other duty as assigned by the CEO

Human Resources and Administrative Manager

Responsible for overseeing the smooth running of HR and administrative tasks for the organization
Defines job positions for recruitment and managing interviewing process
Carries out staff induction for new team members
Responsible for training, evaluation, and assessment of employees
Responsible for arranging travel, meetings, and appointments
Oversees the smooth running of daily office activities.

Marketing Officer (2)

Develops, executes and evaluates new plans for expanding increase sales
Documents all customer contact and information.
Represents the company in strategic meetings
Helps increase sales and growth for the company
Identifies, prioritizes, and reaches out to new partners, and business opportunities et al

Facility/Maintenance Manager

Responsible for planning and overseeing building work/renovation
Responsible for allocating and managing space within buildings
Responsible for managing building maintenance activities
Responsible for coordinating cleaning, catering, and parking services
Responsible for organizing security and general administrative services
Ensures that facilities meet government regulations and environmental, health and security standards
Advise on energy efficiency and cost-effectiveness
Supervises multi-disciplinary teams of staff including maintenance, grounds, and custodial workers

Bartender / Baristas (4):

Interacts with customers, takes orders for drinks, food, and snacks.
Plans and presents bar menu.
Checks identification of the guest to make sure they meet age requirements for purchase of alcohol and tobacco products.
Mixes ingredients to prepare cocktails and other drinks.
Mixes drinks, cocktails, and other bar beverages as ordered and in compliance with hotel standard drink recipes.
Prepares alcohol or non-alcohol beverages.
Services Wine and Beer to guests.
Arranges bottles and glasses to make attractive displays.
Assesses customer’s needs and preferences and makes recommendations
Makes lists of supplies in conjunction with the bar manager/management
Prepares inventory or purchase requisitions as needed to replenish supplies.
Ensures that the assigned bar area is fully equipped with tools and products needed for Mixing beverages and serving guests.

Accountant/Cashier:

Collect payment for drinks served and balance all receipts.
Prepare a financial report at the end of every working week
Handles all financial transactions on behalf of the company
Interfaces with our bankers
Responsible for payment of tax, levies, and utility bills
Handle any other duty as assigned by the CEO/microbrewery manager

Front Desk Officer (2)

Ensures that customers feel relaxed and at home
Handles customers inquiries
Assesses customer’s needs and preferences and makes recommendations
Ability to Sell or influence others for up selling and suggestive selling.
Provides recommendations and suggestions to guest for choosing Drinks, food, and Snacks.
Serve customers in a friendly and helpful manner.
Provides guidance to guests on resort activities, dining options, and general resort and Regional information.
Demonstrates a thorough knowledge of food and beverage products, menus, and Promotions
Handles any other duty as assigned by the bar manager

Cleaners/Washerman (6):

Handles and moves objects, such as glasses, dish,es and bottles, using hands and arms.
Cleans up after customers and cleans work area.
Clears ashtrays as and when required.
Washes glassware and utensils after each use.
Maintains a clean working area by sweeping, vacuuming, dusting, cleaning of glass doors and windows, etc. if required.
Ensures that toiletries and supplies don’t run out of stock
Responsible for handling laundry
Handles any other duty as assigned by the restaurant manager,

Security Officers

Ensures that the facility is secured at all time
Controls traffic and organizes parking
Gives security tips to staff members from time to time
Patrols around the building on a 24 hours basis
Submits security reports weekly
Any other duty as assigned by the restaurant manager

6. SWOT Analysis

Sean and Sharon Hotel is fully aware that they are coming into an industry that can be highly competitive which is why they have decided to pay attention to the SWOT analysis for the organization.

We know that once we are able to identify our strengths, our weaknesses, our threats, and the opportunities that are available to us, we will be able to come up with good business strategies that will help us achieve all our business goals and objectives.

We know too well that one of the ways to build a successful business in the long run is the ability to glean some lessons from the weak points we have found ourselves in and convert them into an area of strength. In a case where there is little or nothing that can be done, we may also work so hard so that our areas of strength blossoms more, so that are weak area is very less visible.

Here is a of the result we got from the SWOT analysis that was conducted on behalf of Sean and Sharon Hotel Las Vegas, Nevada;

Strength:

Our area of strength cannot be farfetched; the location of our hotel is perfect for such business, our management team has robust experience in the industry, our customer services are second to none in the whole of Las Vegas and our facility is top notch

Weakness:

Our perceived weakness could be that we are a new business, and we may not have the financial muscle to sustain the kind of publicity we want to give our business.

Opportunities:

We are in one of the cities in the world that never goes to bed, plus the fact that Las Vegas is regarded as the world headquarters as far as the casino business is concerned.

It means that loads of tourists, business executives, and travelers would want to visit Las Vegas and we are well positioned to welcome them because our hotel facility is just about 20-minute drive from McCarran International Airport in Las Vegas, and a few minutes drive from Mandalay Bay Event Center.

Threat:

One of the threats that are likely going to confront us is; unfavorable government policies, the downturn in the economy which is likely going to affect sales, and perhaps the emergence of new hotels (competitors) within the same location where our hotel is located.

7. MARKET ANALYSIS

Market Trends

The trend in the hospitality industry is such that there are peak periods and off-peak periods. Thus, hoteliers know this and have been able to make provisions to properly handle the change in season.

For example; during summer or during any major sporting event or business summit, most hotels in Las Vegas are almost fully booked. As a matter of fact, that is the period that some hotels make the money that will sustain the business for the rest of the year.

Be that as it may, some hotels are well positioned and they enjoy rich patronage all through the 12 calendar months of the year. Another trending feature in the hotel industry is that it is profitable to build your brand and then venture into the sale of franchises if you know you don’t have the capacity to manage various branches of your hotel.

Over and above, hoteliers are quite aware that they are in the industry not for quick returns on their investments, but to steadily build a brand that can become a global brand while growing their profits year in and year out.

8. Our Target Market

Sean and Sharon conducted her feasibility studies and market survey and we were able to identify those who we expect will eventually become our loyal customers.

We do not intend to waste our time on activities that would yield us nothing, which is why we invested time to create a hotel marketing plan to help us do only the most needful things. These are the category of people that we intend to market our hotel to;

Corporate Executives
Business People
Sports Men and Women
Government Officials
College Students
Tourists
Travelers
Traveling Agencies
Event Managers
Religious Organizations

Our Competitive Advantage

The competitive edge of Sean and Sharon Hotel Las Vegas, Nevada is the excellent and customized service that we offer to all our guests irrespective of their status. We can boldly say that the location of our hotel is going to give us an edge over our competitors in Las Vegas.

We are in the middle of the happening city in Nevada. From the location of our hotel, you can connect to any part of the city with little or no stress.

Another significant competitive advantage that we are bringing to the industry is the robust experience of our management team. We have a team that has a combination of 40 years of experience in the hospitality industry in the united states and Canada. They are considered core professionals in their own right.

9. SALES AND MARKETING STRATEGY

Sources of Income

Sean and Sharon Hotel will generate income from the following service offerings;

Lodgings
Meals (Local Delicacies, Chinese cuisines, and intercontinental cuisines et al)
Drinks (wines, beers, distilled spirits, martinis, beverages, and non–alcoholic drinks)
Swimming pool
Gym
Laundry service
Business center
Minimart
Conference room
Banquet venue
Childcare
Shuttle service

10. Sales Forecast

It is important to state that our sales forecast is based on the data gathered during our feasibility studies and also some of the assumptions readily available in the field. Below is the sales projection for Sean and Sharon Hotel, it is based on the location of our hotel and the services and products that we will be offering;

First Year-: $600,000
Second Year-: $900,000
Third Year-: $1, 500,000

N.B-: This projection is done based on what is obtainable in the industry and with the assumption that there wouldn’t be any unfavorable government policy.

Marketing Strategy and Sales Strategy

We will adopt the following means to attract the kind of people that we want in our hotel per – the time: The model of the bar we intend to run is a neighborhood type of bar, hence, we are not going to rely only on the conventional ways of marketing.

We don’t have the plans to run paid adverts on Local TV stations, local radio stations, or even local newspapers but we will sure maximize every other available means to promote our business.

Our unique selling proposition is that we have a collection of almost all brands of beers produced in America in our bar, we have assorted drinks and tobaccos et al. In view of that, we are going to adopt the following strategies to ensure that we do not only attract customers but generate repeated sales from them; Parts of the marketing and sales strategies that we will adopt are;

Open our hotel in a grand style with a party for all.
Advertise our hotel brand in travel and tours magazines, national newspapers, Satellite TV stations, and Radio station
Promote our business online via our official website and all available social media platform
Continuously Improve the performance of our brands
Hire the services of experts to make our brands the first choice for guests
Deliver consistent customer experiences to all our guests; making our first impression count positively
Continuously Improve the efficiency of our hotels and operating processes
Ensure that we Put our market scale and knowledge to good use
Using our worldwide scale and experience to convert more hotels to our brands
Make the most of our global presence – guests choose brands they know when they travel
Build strong partnerships within our own company and with our stakeholders across the world
Make use of attractive handbills to create awareness and also to give direction to our bar
Position our signage/Flexi banners at strategic places
Position our greeters to welcome and direct potential customers
Create a loyalty plan that will enable us to reward our regular customers
Engage in road shows within our neighborhood to create awareness for our hotel.

11. Publicity and Advertising Strategy

Sean and Sharon Hotel is in the hospitality business to make a profit and we can only make a profit if we steadily increase our customer base. No doubt, in order to remain relevant in the hospitality industry as a hotelier in Las Vegas, you should be able to continue to create hype around your hotel brand and that is exactly the publicity and advertising strategy that we will adopt.

We will ensure that we leverage all conventional and non – conventional publicity and advertising techniques to promote our hotel brand.

Although our hotel is located in Las Vegas, the scope of our market is global which is why we choose to make use of best practices as far as publicity and advertisement are concerned in the hotel business. Here are the platforms we intend leveraging on to promote and advertise Sean and Sharon Hotel, Las Vegas;

Encourage our loyal customers to help us use Word of Mouth (referrals)
Advertise our hotel brand in travel and tours magazines, national dailies, Satellite TV stations, and Radio station
Promote our business online via our official website
Sponsor relevant community programs
Leverage the internet and social media platforms like; Instagram, Facebook, Twitter, et al to promote our brand
Install our Bill Boards on strategic locations
Engage in road shows from time to time
Distribute our fliers and handbills in target areas

12. Our Pricing Strategy

Our pricing system is going to be based on what is obtainable in the industry, we don’t intend to charge more (except for premium and customized services) and we don’t intend to charge less than our competitors are offering in Las Vegas.

Be that as it may, we have put plans in place to discount our products and services once in a while and also to reward our loyal customers.

Payment Options

Our payment policy is all-inclusive because we are quite aware that different people prefer different payment options as it suits them. Here are the payment options that will be available in every of our pubs;

Payment by cash
check
Payment via Point of Sale (POS) Machine
Payment via online bank transfer (online payment portal)
Payment via Mobile money

In view of the above, we have chosen banking platforms that will help us achieve our payment plans without any difficulty.

13. Startup Expenditure (Budget)

These is the key areas where we will spend our start–up capital on;

Legal expenses for obtaining licenses and permits: $1,500.
The Total Fee for Registering the Business in Las Vegas, Nevada: $750.
Marketing promotion expenses (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
Cost for hiring Consultant – $5,000.
Insurance (general liability, workers’ compensation, and property casualty) coverage at a total premium – $30,800.
Cost of accounting software, CRM software, and Payroll Software – $15,000
Cost for acquiring facility for the hotel: $500,000.
Cost for facility remodeling – $100,000.
Other start-up expenses including stationery – $1000)
Phone and utility deposits ($3,500).
Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
The cost for Start-up inventory – $35,000
Storage hardware (bins, utensil rack, shelves, glasses case) – $3,720
The cost for counter area equipment (counter top, sink, ice machine, etc.) – $9,500
Cost for serving area equipment ( glasses, flatware) – $5,000
Cost for store equipment (cash register, security, ventilation, signage) – $13,750
Office equipment and furniture – $3,600
The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound systems, tables and chairs et al): $4,000.
The cost of Launching a Website: $600
The cost for our grand opening party: $5,000
Miscellaneous: $2,500

We would need an estimate of $3.5M to successfully launch Sean and Sharon Hotel in Las Vegas, Nevada.

Generating Funding/Startup Capital for Our Hotel

Sean and Sharon Hotel will be financed by Sean and Sharon Glaciers and their business partners. Part of the start–up capital will also be raised as a loan facility from the bank in the United States. These are the areas where we intend sourcing for funds for Sean and Sharon Hotel.

Generate part of the start–up capital from personal savings and the sale of his stocks (Sean and Sharon Glaciers)
Generate part of the start–up capital from our business partners
Generate a larger chunk of the startup capital from the bank.

N.B: Please note that Sean and Sharon Glaciers want to retain the lion’s share of the business shares hence they both are investing a total of 1 million USD. They will also secure a mortgage to purchase the property for the hotel.

14. Sustainability and Expansion Strategy

Part of the grand plan of sustaining Sean and Sharon’s hotel is to ensure that we provide the best training for our employees, put a succession plan in place, and will not relent in marketing and promoting our hotel brand.

From our findings, another factor that kills new businesses is financial leakages. In order to plug financial leakages, the management of Sean and Sharon Hotel will adopt the use of payment machines and accounting software to run the business.

In the bid to build a successful business, we will ensure that all our employees are comfortable and we will provide them with the best facilities and welfare package that will help them achieve peak performance in all their duties and in turn help the organization achieve its goals and business objectives.

Check List / Milestone

Business Name Availability Check: Completed
Business Registration: Completed
Opening of Corporate Bank Accounts: Completed
Securing Point of Sales (POS) Machines: Completed
Opening Mobile Money Accounts: Completed
Opening Online Payment Platforms: Completed
Application and Obtaining Tax Payer’s ID: In Progress
Application for business license and permit: Completed
Purchase of Insurance for the Business: Completed
Acquiring facility and remodeling the facility: In Progress
Conducting Feasibility Studies: Completed
Generating capital from family members: Completed
Applications for Loan from the bank: In Progress
Writing of Business Plan: Completed
Drafting of Employee’s Handbook: Completed
Drafting of Contract Documents and other relevant Legal Documents: In Progress
Design of The Company’s Logo: Completed
Graphic Designs and Printing of Packaging Marketing/Promotional Materials: In Progress
Recruitment of employees: In Progress
Purchase of the Needed furniture, electronic appliances, office appliances, and bar accessories: In progress
Creating Official Website for the Company: Completed
Creating Awareness for the business both online and in the neighborhood: In Progress
Health and Safety and Fire Safety Arrangement (License): Secured
Opening party / launching party planning: In Progress
Establishing business relationship with vendors – suppliers of all our needed food ingredients, drinks, tobacco, and snacks: In Progress