Hotel Business Plan Template
Hotel Business Plan
If you want to start a new hotel business or expand your existing hotel, you need a hotel business plan.
The following hotel business plan template gives you the key elements to include in a solid business plan. In addition to this template, a hotel business plan will also include market research to help you better understand the hospitality industry trends, and how you plan to attract customers. It will also help you craft your mission statement, marketing strategy and strong financial projections.
You can download our Hotel business plan template (including a full, customizable financial model) to your computer here.
Sample Business Plan For a Boutique Hotel
Below is a free sample of each of the key sections of a comprehensive business plan for a hotel business.
I. Executive Summary
Business overview.
[Company Name], located at [insert location here] is a new, small, business-class hotel focused on providing rooms with a clean and modern character that is attractive to business visitors to the area. The Company’s rooms will feature modern furniture, high-end technology and modern accessories.
Hotel’s Services
[Company Name] will offer all of the standard business hotel services including daily room cleaning, free local calls, cable TV, a free wireless network and various other amenities. Additionally, the hotel will include a conference room seating up to 15 for meetings with conference call landlines, wireless internet, and a large flat screen.
Customer Focus
[Company Name] will primarily serve business travelers who seek comfort, necessary amenities, and simplicity of services.
- 50,000 business visitors to the area last year according to Madison Office of Tourism
- Typical business traveler is male (77%) and in a professional, managerial, or technical occupation (53%) according to National Household Survey of Business Travel
- 55% between ages of 40 and 49, 16% 18 to 29, 18% 50-59, 10% 60+according to National Household Survey of Business Travel
- Average household income of $85,900 according to the American Hotel & Lodging Association Lodging Industry Profile
In addition to this business travel market, the Company will likely see some leisure travel and international guests.
Management Team
[Company Name] is led by [Founder’s Name] who has been in the hospitality industry for 20 years. While [Founder] has never developed a hotel from the ground up, he has worked in hospitality industry most recently as a general manager, and has held various different positions in the management chain over the last 20 years. As such [Founder] has an in-depth knowledge of the hotel business including the operations side (e.g., running day-to-day hotel operations) and the business management side (e.g., staffing, marketing, etc.).
Success Factors
[Company Name] is uniquely qualified to succeed due to the following reasons:
- There is currently no business-class hotel in the community we are entering. In addition, we have surveyed the major corporations with local offices and determined that they have frequent visitors who would use our hotel location when launched.
- Our location is central to the downtown, airport, and corporate district of the city.
- The management team has a track record of success in the hospitality industry.
- XYZ and ABC corporations announced plans to create new corporate centers in the city over the next two years and existing hotel businesses will not be able to handle the increased capacity of business visitors traveling to the city to visit these companies.
Financial Highlights
[Company Name] is currently seeking $3,000,000 to launch. Specifically, these funds will be used as follows:
- Hotel design/build: $2,500,000
- Working capital: $500,000 to pay for marketing, salaries, and land costs until [Company Name] reaches break-even.
Topline projections over the next five years are as follows:
II. Company Overview
Who is [company name].
[Company Name], located at [insert location here], is a new, small, business-class hotel focused on providing rooms with a clean and modern character that is attractive to business visitors to the area. The Company’s rooms will feature modern furniture, high-end technology and modern accessories.
[Company Name] was founded by [Founder’s Name]. While [Founder’s Name] has been in the industry for some time, it was in [month, date] that he decided to launch [Company Name]. Specifically, during this time, [Founder] took a business trip to Madison, WI. During his trip, [Founder’s Name] could not find a mid-level, business class hotel in the downtown area. After several visiting the hotel options in the city and learning of the expected growth in business travel to Madison, [Founder’s Name] clearly recognized an opportunity that a business-class hotel would enjoy significant success in this area.
Specifically the local demographics, business demographics and competitive situations in the Madison location were so favorable to the success of this business idea that he knew it would work.
[Company Name]’s History
Upon returning from Madison, surveying the local customer base and online market, estimating business travel growth, and finding a potential hotel location, [Founder’s Name] incorporated [Company Name] as an S-Corporation on [date of incorporation].
The hotel development operations are currently being run out of [Founder’s Name] home office. Once the land rights have been purchased, operations will be run from an on-site location to insure that every detail is being thought out and completed.
Since incorporation, the company has achieved the following milestones:
- Found site location and signed the land deed purchasing rights to the land.
- Developed the company’s name, logo and website located at www…
- Hired an architecture firm to create a blueprint of the hotel
- Taking bids from construction crews and electrical engineering firms
- Determined equipment leasing and financing requirements
- Began recruiting key employees with experience in the industry
[Company Name]’s Services
Below is [Company Name]’s initial service offerings and amenities provided.
- Single Rooms
- Studio Apartment Style VIP Rooms for long-term stays
- Conference Room
Hotel Design
[Company Name] will develop a 20,000 square foot hotel with key elements that will include the following:
- Upper and Lower Floors with 18 Single
- 2 Studio Apartment Rooms
Located below is a rough sketch of the hotel design plan:
The hotel location will have 15 dedicated parking spots which should suffice even in peak parts of the travel season as guests will often not have cars with them
[Company Name] plans to be open 7 days a week, 24 hours a day, to take care of all guests’ inquiries and issues as they may arise. As demand dictates, we may extend or reduce our services and hours.
III. Industry Analysis
[Company Name] directly or indirectly competes with all hotels nearby our hotel locations that offer business travel services or small conference space. Local competition will come from small meeting spaces, inns, motels, bed & breakfasts, condo complexes, and hotels. Direct competition will come from companies offering business class services.
Industry Statistics & Trends
This competitive industry is served by the American Hotel and Lodging Association. The AH&LA, citing Smith Travel Research, reports that the average occupancy rate for the industry is 60%. The association calculates over 47,000 properties of 15 rooms or more, 4.3 million guest rooms, annual revenue of $133 billion, an average of 1 billion room nights sold per year, and approximately $27 billion in net profits.
Large companies include Marriott International, Hilton Hotels, Carlson Hotels, and Starwood Hotels and Resorts dominate the US hotel industry.
Major industry product lines are room fees and sales of food, alcoholic drinks, and merchandise. Room fees account for 70% of industry revenue, food is 15% and alcohol is 5%.
- “In the United States, tourism is currently the third largest retail industry, behind automotive and food stores.” – AH&LA
- “For a hotel stay, 35% of all business travelers spend one night, 26% spend two nights, and 39% spend three or more nights.” – AH&LA
- Profitability of individual companies depends on efficient operations as most costs are fixed.
- An effective marketing strategy is a must.
- A growing number of travelers will demand higher levels of discounts and more free services while expecting higher levels of service as a response to the recession and the hotel industry’s desperation to fill rooms.
IV. Customer Analysis
Profile of target market.
[Company Name] will serve the business travel market of [Insert location] and its immediate surrounding area.
The market we serve is value-conscious and has a desire for high comfort and basic amenities geared towards the business traveler’s lifestyle.
The AH&LA writes that “the typical business room night is generated by a male (65%), age 35-54 (50%, employed in a professional or managerial position (44%), earning an average yearly household income of $85,900. Typically, these guests travel alone (56%), make reservations (90%), and pay $112 per room night.”
The business traveler market is also described by the National Household Travel Survey of US Business Travel as follows:
“The typical business traveler is likely to be male; work in a professional, managerial, or technical position; be 30 to 49 years old; and have an income well above the population average.
Men account for more than three-fourths (77%) of business trips. This compares to nonbusiness travel where men take 54% of the trips and women 46%.
Those who consider their occupation to be professional, managerial, or technical account for over half (53%) of all business trips. This occupational category represents only about 40% of the general population. Sales or service workers account for the next largest share of business trips, 28%. On the other hand, clerical/administrative workers account for less than 4% of business trips even though they represent almost 12% of the population.”
Customer Segmentation
We will primarily target the following three market segments:
- The U.S. Business Travel Market: Travelers to [Insert Area, City] corporations and events.
- The U.S. Leisure Travel Market: Travelers to [Insert Area or City] tourist attractions such as the Museum of Fine Art and the Annual Film Festival, as well as visitors to social events such as weddings.
- International Tourists: Last year, there were over 903 million international tourist arrivals worldwide, with a growth of 6.6%. International tourist receipts were $856 billion, according to tourismroi.com.
V. Competitive Analysis
Direct & indirect competitors.
The following hotels are located within a 10 mile radius of [Company Name], thus providing either direct or indirect competition for customer acquisition:
The Madison Concourse Hotel
The Madison Concourse Hotel is Madison’s leading hotel and has been in business for 20 years. The hotel offers a wide array of services and amenities that you typically find at a hotel.
The Madison Concourse offers luxury amenities, many of which are not necessary for business travelers and charges a high price for those amenities ($200-300 per night). Furthermore, the hotel does not offer a small conference room, only larger meeting spaces. Additionally, this hotel does not offer wireless internet in sleeping rooms.
The Edgewater Hotel
The Edgewater Hotel has been in business for 15 years. The Edgewater Hotel offers a variety of services and amenities all typical of the hotel and hospitality industry.
However, [Company Name] has several advantages over The Breakers Hotel including:
- Edgewater is priced at a premium because of its waterfront location
- Edgewater’s rooms are aging and in need of renovation
- Edgewater does not have studio apartment options for long-term stay
- Edgewater does not have meeting space
Doubletree Hotel Madison
Doubletree Hotel Madison is located four miles to the East of our intended location. Doubletree Hotel Madison has been in business for the past 10 years and is part of the Hilton family of hotels, allowing it to use centralized booking with Hilton and the Hilton loyalty points system.
[Company Name] has several advantages over Doubletree Hotel Madison including:
- Doubletree Hotel Madison does not have a central downtown location
- Despite the rooms being more modern than most existing, Doubletree Hotel Madison is still behind the time with no LCD TVs or Wireless Network.
While we expect that Doubletree Hotel Madison will continue to thrive based on the Hilton loyalty program, we expect that more and more customers will frequent [Company Name] based on the value offered for a similar price and more central location.
Competitive Pricing
Competitive advantage.
[Company Name] enjoys several advantages over its direct competitors. These advantages include:
- Location: [Company Name]’s location in the downtown area, gives the best access to the airport, corporate center, downtown conference centers, and restaurants. The Company also offers adequate parking making it easy for customers to relax upon arrival.
- Business Amenities: The small conference room allowing visitors to meet within the hotel, will be highly valued by some groups. WiFi throughout the hotel will make working remotely simple for business visitors.
- Management: Our management team has years of business and marketing experience that allows us to market and serve customers in the same manner as our most sophisticated competitors.
- Relationships: Having visited the community for a number of years, [Founder’s Name] knows all of the local leaders, newspapers and other influences. As such, it will be relatively easy for us to build the brand and awareness of the hotel.
VI. Marketing Plan
The Marketing Plan describes the type of brand [Company Name] seeks to create and the Company’s planned promotions and pricing strategies.
The [Company Name] Brand
The [Company Name] brand will focus on the Company’s unique selling points:
- Offering business-class rooms and services
- Offering a central location in the downtown area
- Providing excellent customer service
Promotions Strategy
[Company Name] expects its target audience to be business travelers and leisure travelers mainly from the U.S and surrounding locations in the Midwest. The Company’s promotions strategy to reach these individuals includes:
Phone Prospecting
[Company Name] will assign salespeople to contact area corporations to arrange for bulk corporate rates for their visitors depending on the volume of visitors they will have.
Public Relations
We will contact all local and regional area newspapers and television stations to tell them about the hotel opening and unique selling point of [Company Name].
Advertising
[Company Name] will initially advertise on travel websites, which are frequently being used these days to book travel due to their ease of use and reviews.
Ongoing Customer Communications
[Company Name] will maintain a website and publish a monthly email newsletter to tell local corporations and past customers about promotions and events.
Pre-Opening Events
Before opening the hotel, [Company Name] will organize pre-opening events designed for prospective national customers, local customers and press contacts. These events will create buzz and awareness for [Company Name] in the area.
Pricing Strategy
[Company Name]’s pricing will fluctuate based on the season and occupancy percentages using a computerized yield management system, but pricing will always place the hotel in the mid-range, below luxury offerings and above hotels and motels in the area that cannot be billed as business class. Customers will feel they receive great value when patronizing the hotel.
VII. Operations Plan
Functional roles.
In order to execute on [Company Name]’s business model, the Company needs to perform many functions including the following:
Administrative Functions
- General & Administrative functions including legal, marketing, bookkeeping, etc.
- Sourcing and storing supplies for the hotel and conference space
- Hiring and training staff
- Corporate sales to individuals and groups
Hotel Services
- Housekeeping
- Check-in focused on customer service
- Janitor/maintenance personnel to keep the hotel clean and in working order
[Company Name] expects to achieve the following milestones in the following [] months:
VIII. Management Team
Management team members.
[Company Name] is led by [Founder’s Name] who has been in the hotel industry for 20 years.
While [Founder] has never developed a hotel from the ground up, he has worked in the hotel industry most recently as a general manager, and has held various different positions in the management chain over the last 20 years. As such [Founder] has in-depth knowledge of the hotel business including the operations side (e.g., running day-to-day operations) and the business management side (e.g., staffing, marketing, etc.).
[Founder] has also worked real estate consultant on a part-time basis over the past 10 years. Specifically, he has worked in contracting positions to help real estate developers with their hotel launch plans as well as their operations plans once the hotel has been launched.
[Founder] graduated from the University of ABC where he majored in Hotel and Restaurant Management.
Hiring Plan
[Founder] will serve as the hotel president. In order to launch our Hotel, we need to hire the following personnel:
- Housekeeping staff (5 to start)
- Hotel Manager (will manage day to day operations of the hotel)
- Assistant Manager (will manage hotel operations nights and weekends)
- Service Staff (4 full-time to work check-in and guest services – allowing for at least 1 staff person to be on duty at all times)
- Sales Staff (2 full-time) will target and book corporate clients in sleeping rooms and the meeting space
- Legal, Bookkeeping, and other Administrative functions (3 staff)
IX. Financial Plan
Revenue and cost drivers.
[Company Name]’s will come from hotel room occupancy and conference room rentals.
The major costs for the company will be salaries of the staff and cost to maintain the standard of the hotel. In the initial years, the company’s marketing spend will be high, as it establishes itself in the market.
Capital Requirements and Use of Funds
[Company Name] is seeking a total funding of $3,000,000 to launch the hotel. The capital will be used for funding capital expenditures, manpower costs, marketing expenses and working capital.
Specifically, these funds will be used as follows:
- Hotel design/build: approximately $2,500,000
- Working capital: approximately $500,000 to pay for Marketing, salaries, and lease costs until [Company Name] reaches break-even
Key Assumptions & Forecasts
Below please find the key assumptions that went into the financial forecast and a summary of the financial projections over the next five years.
5 Year Annual Income Statement
5 Year Annual Balance Sheet
5 Year Annual Cash Flow Statement
Other Sector Templates
Bike Shop Business Plan Template
Brewery Business Plan Template & Example
Frozen Yogurt Business Plan Template
Business Plan Resources
Business Plan Examples
Business Plan Articles
Terms of Service
Privacy Policy
- Meet our Unified Platform
- See how it works
- Operations & Finance
Guest Experience
- Guest Communication & Digital Check-in
- Revenue & Analytics
- Pricing Intelligence Engine
- Cloudbeds Insights
- Distribution & Marketing
- Channel Manager
- Distribution Partners
- Booking Engine
- Digital Marketing Suite
- Cloudbeds Open API
- API documentation
- Become a Partner
- Integrated Partners
- App Marketplace
- Customer Support
- Customer Success
- Cloudbeds University
- Cloudbeds Help Center
-
- Multi-Property Groups
- Short-Term Rentals
- B&Bs and Inns
- Customer Stories
- Resource Center
- All Resources
- Guides & Reports
- SOPs & Checklists
- Passport UserCon 2024
- Calculators
- Popular Topics
- Reservations & Distribution
- Operations & Payments
- Digital Marketing
- Guest Engagement
- Revenue Management
- Industry Trends
- Partner Insights
- Customer Resources
- Help Center
- Product Updates
- Government Compliance
- Company News
- Meet the Team
From idea to execution: 10 sections to include in your hotel business plan
Stay up to date with the latest trends, insights and technology for hoteliers.
- First name *
- Last name *
- Property Name *
- Property Type * Property type* Hotel Bed and Breakfast Hostel Apartment Groups Vacation Homes Alternative Accommodations
- How many listings do you have?
- How many Addresses does your business have?
- * English Spanish Portuguese Franch Vietnamese Japanese Thai Italian
By Lana Cook
Do you love connecting with people from all over the world who share your passion for travel? Don’t want to work a typical 9-5 job and instead want to build a business where every day is different, and you own your schedule?
Starting a hotel business is a dream many entrepreneurs have, but it can be a daunting venture to start. A hotel business plan is a critical first step for business owners to turn their dreams into reality. A strategic plan allows one to study the hotel industry, identify their hotel’s unique point of view, and outline how exactly they will reach their goals.
Read on to learn more about the ten sections to include in your hotel business plan, tips for creating an effective plan, and key things you need to start your new hotel business.
Ready to get started creating your plan? Download our hotel business plan template.
What is a hotel business plan?
A hotel business plan is a detailed document that identifies your business’s goals, objectives, and strategies for success. It includes market research and a roadmap for building and operating your business.
Why do you need a hotel business plan?
Studies show that entrepreneurs who finished their business plan were twice as likely to succeed in growing their business than those with no plan. A hotel business plan:
- Helps you identify whether you have a viable business idea
- Provides a detailed roadmap on what you need to accomplish and why
- Gives potential investors insight into your business idea and confidence that you can be successful
- Keeps you on track as you start to execute the different tactics outlined in your plan
- Identifies critical milestones for you and your team to reach
Your plan does not have to be static and should change over time as your business grows and evolves. Your first draft is a starting point to help guide your strategy and instill confidence in potential investors.
10 sections to include in your hotel business plan
Whether you’re starting a small boutique hotel, a cozy B&B, or a 5-star resort, you will need to address the following sections in your hotel business plan.
1. Executive summary
An executive summary is the most essential part of your business plan. It should concisely explain the purpose of your business and why it will be a success.
Include your mission statement explaining why your hotel exists and its overall goal. For example, Capella Hotels & Resorts ’ mission is to combine tradition, discovery, individuality, and twist of the unexpected to create the perfect stay for each guest.
You should also include your vision statement that clearly describes your hotel’s purpose for being in a single sentence. For Capella Hotels, its vision is to embody excellence in the craft of hospitality.
We recommend writing your executive summary as the final stage, as it should summarize the goals and objectives laid out in your plan.
2. Company analysis
Your company analysis is where you can dive into your hotel’s competitive advantage. Ask yourself what makes your hotel unique . Why would guests want to stay with you instead of your competitors?
In this section, identify your brand’s identity and the goals and objectives you want to accomplish. Outline how many rooms and room categories your property will have. For example, will you offer a hybrid hospitality model with dorms, single rooms, and suites? Explain what ancillary revenue sources you’ll offer, like in-room food and beverage options, welcome drinks, or airport shuttles.
Use storytelling to communicate your excitement and passion and make it clear what your hotel will bring to the hospitality industry that hasn’t been done before.
3. Industry analysis
As a business owner, you must be prepared for forces outside your control. You will need to conduct a market analysis that looks at the hospitality industry to identify micro and macro trends that may impact your business. Look at:
- Economic trends
- Environmental trends
- Political trends
- Global health trends
- Technology trends
For each trend, identify how it will impact your business and ways to mitigate risk or take advantage of opportunities.
For example, digital check-in technology has increased across the hotel industry with the rise of tech-savvy guests, new innovative software providers, and labor challenges. Therefore, consider what guest experience solution you’ll include at your hotel.
In addition to trends, look at the history of the hospitality industry, its current size, and how it’s expected to grow in the short and long term. This research will impact the rest of your plan, especially your marketing and financials.
4. Customer analysis
What type of hotel guests do you want to attract? It’s impossible to please every kind of guest, which is why it’s important to identify your target market . Once you know who you want to stay at your property, you can develop amenities, services, and marketing materials to attract these guests and deliver exceptional experiences .
Ask yourself:
- What type of guests do I want? Business or leisure travelers? Retirees or Gen-Z?
- What demographics? Age, gender, marital status, etc.
- What are my target market’s interests? Water sports, hiking, relaxation, museums, etc.
- What does my target market value? Sustainability, contactless technology, personalized service, localized experiences, etc.
This section will help you formulate the guest experience to ensure that expectations meet reality .
5. Competitive analysis
The competition you face will vary depending on where your hotel is located. In this section, you should conduct in-depth competitor research to understand how your hotel will compare. Identify your five major competitors — ideally, three direct competitors you will be competing with upon opening and two aspirational competitors you can emulate as you grow your business.
Conduct a SWOT analysis based on your competitors to look at:
- Strengths . Where does your property excel in comparison to competitors? Why would travelers pick you? Price, amenities, location, technology, etc.
- Weaknesses . Where does your property fall short in comparison to competitors? Price, amenities, location, technology, etc.
- Opportunities . What industry trends can you take advantage of? What local events or partnerships can you capitalize on?
- Threats . What are the biggest threats facing your property? War, travel restrictions, recession, etc.
A thorough analysis can help solidify your competitive advantage and develop a contingency plan for how you will deal with your weaknesses and threats.
6. Marketing plan
Without demand, there is no business. A hotel marketing plan outlines the channels you’ll use to reach your target audience to drive bookings. Your marketing strategy should include three key channels:
1) Paid media . Paid advertising to promote your property and drive bookings. This includes online travel agencies (OTAs) , search engine marketing (SEM), retargeting, and metasearch advertising.
2) Owned media. The content you create, like your hotel website , social media channels, blog posts, and SEO.
3) Earned media. User-generated content created by third parties like media coverage or online reviews.
7. Operations plan
How do you plan to run your day-to-day operations? This section of your plan will outline all of the key tasks and responsibilities of your team and what exactly your hotel will offer. Consider:
- The number of staff and supervisors required
- Job descriptions and responsibilities
- Your service standards (check out our downloadable SOPs for some inspiration)
- How you’ll manage your inventory
- What hotel technology solutions will you need? PMS, channel manager, booking engine, payment terminal, revenue management tools, guest engagement software, etc.
- What services and amenities do you want to offer? Room service, bar, restaurant, pool, spa, wellness center, etc.
Detail your short and long-term operational plans and the stakeholders involved for each area.
8. Management team
Whether or not you’ve hired your team yet, this is one of the most important sections potential investors will look at. Make sure to outline the key personnel you will require and their roles.
In general, these are the following roles you’ll want to outline:
- Hotel management (general manager, front office manager, housekeeping manager, maintenance manager, revenue manager)
- Hotel sales team
- Housekeeping staff
- Front office staff
- Maintenance
Depending on the size of your hotel, your team will vary. Identify the team members you need to open and your hiring plans over the next five years.
9. Strategic plan
Hoteliers must be strategic in optimizing occupancy rates across seasons to maintain revenue. As part of your strategic plan, identify how you will manage:
- Pricing – what room types will you offer, and how will the pricing vary?
- How will you maintain consistent occupancy throughout the high and low seasons? Will you adapt your pricing and marketing strategies?
- How will you conduct revenue management ? What type of rules/alerts will you use to adjust rates? Will you use technology to help with revenue management?
- What will your online reputation management strategy be? How will you collect and respond to online reviews?
- What will your distribution mix look like? How will you drive reservations across a variety of channels?
10. Financial plan
Your financial projections are the most challenging but arguably the most crucial part of your hotel business plan. In this section, you should include the following:
- Start-up costs. How much money will you need from lenders to operate your hotel? Consider business licenses, furniture, down payments, etc.
- Operating costs . How much money will you need to keep your business running? Consider staffing costs, guest acquisition costs, mortgage payments, utilities, SaaS payments, etc.
- Income statement . What will your revenue, expenses, and profit be over the first 3-5 years of business?
- Cash flow projections . How will cash flow in and out of your business? Show what capital investment you’ll need to start.
- Balance sheet . Identify your assets, liabilities, and equity.
If you’re looking for a potential investor, your financial plan will be the section they care about most. Here, you must prove how your business will provide a return on investment. Don’t forget to include an Appendix that shows more detailed reporting and financial figures.
8 tips for creating an effective plan
1. Start with the section that excites you the most! Covering all the topics outlined above can feel overwhelming, so don’t feel pressured to go in order.
2. Reach out to a business owner you admire. No matter what type of business you’re starting, getting advice from another business owner is always helpful. Reach out to a successful local business owner to see if they’d be willing to share some insights they learned along the way.
3. Be concise. While there’s a lot to cover, you must be concise in each section of your plan. Include any additional research or documentation in the appendix to keep your business plan clean.
4. Try to avoid industry jargon. Depending on what type of investor is reading your plan, they may find jargon irrelevant and distracting.
5. Ensure you have a clear competitive advantage. You should be able to state in one sentence what makes your property unique. This unique selling point (USP) will be prominent in all of your marketing materials.
6. Set SMART goals. Setting specific, measurable, achievable, relevant, and time-bound goals is important to stay organized and on track to reach milestones.
7. Don’t forget about your plan. You will have spent hours developing your plan, so make sure you use it! Reference your plan as you build and grow your business , and remember that it’s ok if things change.
8. Illustrate your passion. Communicate why you want to be a part of the hospitality industry. Passion is contagious and gives investors more confidence that you will work hard to achieve your dreams.
What do you need to start a hotel business?
Ok, so you’ve read through this article and are now wondering — what’s next? Ensure you have the following items on your radar to start your business.
- A vision. Know exactly what kind of business you want to build (a quaint bed and breakfast is very different from a large-scale resort).
- A business plan. Stay on track with a well-developed business plan.
- A location. Decide if you want to build a new property or renovate an existing hotel.
- Capital. Do you need to raise an upfront capital investment? Remember that new businesses usually aren’t profitable for the first few years and will need cash flow to pay for expenses.
- Business licenses & permits. Depending on the type of property and its services, you’ll need an occupancy permit, alcohol license, food service license, sales tax license, etc.
- Technology. Choose technology to help streamline operations and earn more revenue.
- Furniture & equipment. You must furnish your property with the proper furniture, electronics, appliances, etc.
- Staff. Take time hiring staff you can trust and who understand your hotel’s brand and vision.
Final thoughts
Your business plan provides the foundation for your new business and outlines the next steps in the journey. Ensure you fully understand the market and competitive landscape to enter the industry prepared for the future. Start slow and invest in the right people and technology to support the growth of your business.
Looking to start a hotel? Download the technology guide. Download now
About Lana Cook
Lana Cook is a Content Manager at Cloudbeds where she is able to combine her love of writing and passion for travel. She has spent the last few years writing about all things technology and the ways in which it can be used to help businesses thrive. When she’s not busy writing, you can find her checking out the latest movie or searching for a new TV show to binge.
Hotel business plan
You might also be interested in..., 36 of the best hospitality podcasts to listen to in 2025, sojern and cloudbeds announce new integration at world travel market 2024, what is a hotel crm system: benefits, features, and top 12 providers.
Distribution Strategy
Cloudbeds News
Cloudbeds Product Updates
- Cloudbeds Hospitality Platform
- Property Management System
- Marketplace
- Cloudbeds Payments
- Whistle for Cloudbeds
- Hotel Groups
- Vacation Rentals
- Ambassador Program
- Knowledge Base
- What to Expect
- Cloudbeds Login
- Terms of Service
- Privacy Policy
- Data Security
- Cookie Policy
- Accessibility
IMAGES
VIDEO