Tips

Viesniicas biznesa plaans - tips

We have put together a guideline with 10 critical points you must include in your hotel business plan;

1. Executive SummaryThis 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%."

2. Company Analysis

More detailed information on the USPs (unique selling points) of your hotel concept.

3. Industry Analysis

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.

4. Customer Analysis

n-depth information on your target market, including geographic, demographic, socio-economic, psycho-graphic, behavioral segmentation details. Which are the types of guests who will mostly stay at your hotel? Explain how your hotel will meet the needs of these main segments in terms of location, amenities and services. Basically, how will consumers answer this question ‘Why my hotel?’

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). And don’t forget the most important part; what differentiates you from them. What makes you stand-out?

6. Strategic Plan

This exists of 3 parts:

• Marketing: How exactly will you attract customers / guests? How will you position yourself? What will your message be to the different segments of your business mix? How will your direct marketing work? What will is the plan for your hotel website, SEO, SEM and SMM? Will you do offline promotion?
• Distribution: Which 3rd party channels will you use and how will you manage availability? What technology will you need?
• Revenue Management: What pricing and yield techniques will you use? What will your payment and cancellation policies be?
   

7. Operations Plan

How will you run the hotel? How much staff and supervisors will you need? What are their job descriptions / responsibilities? What background and experience should they have? When should they start? What are your service standards? Will you develop manuals? Which supplier will you use? How will you manage inventory?

8. Management Team

Include the bios of your team. Focus on what uniquely qualifies you to make your hotel such a success.

9. Financial Plan

Provide the start-up costs of the hotel (capital investment), the ingoing business costs, operational expenses and revenue projections for the next five years. Include KPI like expected occupancy, ADR (average daily rate) and REVPAR (revenue per available room).

If you are raising money, outline how much funding will be needed and when. Explain how you will generate a return on investment for investors, or when lenders will be paid back.

10. Key Milestones

These are the most important achievement which once they have been completed, will make your hotel more likely to succeed. Think off:

1. Location selection
2. Permits & Licenses
3. Build-out / Construction of the Hotel
4. Staffing and Training
5. Opening
6. GOP Break-even
7. NOI Break-even
8. 10% Ebitda

Each time one of the key milestones is achieved, the risk of lenders or investor decreases. And once your last key milestone is reached, chance of success is more or less guaranteed.

11. Appendix

Provide any other relevant information here. Don’t clutter the main sections of your hotel business plan with too many details. Rather support them with attachments in this part.

Many people have great business ideas. But that really doesn't matter. The difference between dreamers and entrepreneurs is the action mindset. Are you ready to ship your idea to the market? 

The first step is to put your ideas on paper. I hope this guideline will help you write a persuasive hotel business plan. Because no investor or lender will be interested if you cannot present a clear plan.

Follow your dreams and go for it!

If you have any questions or ideas, please post them below!

Cheers,