Alright, so you have chosen to understand your fantasy and open your own lodging. You have thoroughly considered an astonishing idea conveying unparalleled visitor benefit. The following stage is compose a lodging marketable strategy. It resembles a guide to the opening. However this is the place most business visionaries stall out.
Why? Many do not have the time, 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.
They 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 business I 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.
We have put together a guideline / template with 10 critical points you must include in your hotel business plan;
1. Executive Summary
This exists of two parts:
- Mission Statement: Intro: 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 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%.”
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.
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).