motel business plan australia

How to write a business plan for a motel?

Putting together a business plan for a motel can be daunting - especially if you're creating a business for the first time - but with this comprehensive guide, you'll have the necessary tools to do it confidently.

We will explore why writing one is so important in both starting up and growing an existing motel, as well as what should go into making an effective plan - from its structure to content - and what tools can be used to streamline the process and avoid errors.

Without further ado, let us begin!

In this guide:

Why write a business plan for a motel?

• What information is needed to create a business plan for a motel?
• How do I build a financial forecast for a motel?
• The written part of a motel business plan
• What tool should I use to write my motel business plan?

Being clear on the scope and goals of the document will make it easier to understand its structure and content. So before diving into the actual content of the plan, let's have a quick look at the main reasons why you would want to write a motel business plan in the first place.

To have a clear roadmap to grow the business

It's rarely business as usual for small businesses. The economy follows cycles where years of growth are followed by recessions, and the business environment is always changing with new technologies, new regulations, new competitors, and new consumer behaviours appearing all the time...

In this context, running a business without a clear roadmap is like driving blindfolded: it's hazardous at best. That's why writing a business plan for a motel is essential to create successful and sustainable businesses.

In order to write an effective business plan, you will need to take stock of where you are (if you are already in business) and where you want the business to go in the next three to five years.

Once you know where you want your motel to be, you'll have to identify:

• what resources (human, equipment, and capital) are needed to get there,
• at what pace the business needs to progress to get there in time,
• and what risks you'll face along the way.

Going through this process regularly is beneficial, both for startups and existing companies, as it helps make informed decisions about how best to allocate resources to ensure the long-term success of the business.

To get visibility on future cash flows

If your small motel runs out of cash: it's game over. That's why we often say "cash is king", and it's crucial to have a clear view of your motel's future cash flows.

So, how can you achieve this? It's simple - you need to have an up-to-date financial forecast.

The good news is that your motel business plan already includes a financial forecast (which we'll discuss further in this guide). Your task is to ensure it stays current.

To accomplish this, it's essential to regularly compare your actual financial performance with what was planned in your financial forecast. Based on your business's current trajectory, you can make adjustments to the forecast.

By diligently monitoring your motel's financial health, you'll be able to spot potential financial issues, like unexpected cash shortfalls, early on and take corrective actions. Moreover, this practice will enable you to recognize and capitalize on growth opportunities, such as excess cash flow enabling you to expand to new locations.

To secure financing

Crafting a comprehensive business plan for your motel, whether you're starting up or already established, is paramount when you're seeking financing from banks or investors.

Given how fragile small businesses are, financiers will want to ensure that you have a clear roadmap in place as well as command and control of your future cash flows before entertaining the idea of funding you.

For banks, the information in your business plan will be used to assess your borrowing capacity - which is defined as the maximum amount of debt your business can afford alongside your ability to repay the loan. This evaluation helps them decide whether to extend credit to your business and under what terms (interest rate, duration, repayment options, collateral, etc.).

Similarly, investors will thoroughly review your plan to determine if their investment can yield an attractive return. They'll be looking for evidence that your motel has the potential for healthy growth, profitability, and consistent cash flow generation over time.

Now that you understand the importance of creating a business plan for your motel, let's delve into the necessary information needed to craft an effective plan.

Information needed to create a business plan for a motel

Drafting a motel business plan requires research so that you can project sales, investments and cost accurately in your financial forecast, and convince the reader that there is a viable commercial opportunity to be seized.

Below, we'll focus on three critical pieces of information you should gather before starting to write your plan.

Carrying out market research for a motel

Carrying out market research before writing a business plan for a motel is essential to ensure that the financial projections are accurate and realistic.

Market research helps you gain insight into your target customer base, competitors, pricing strategies and other key factors which can have an impact on the commercial success of your business.

In particular, it is useful in forecasting revenue as it provides valuable data regarding potential customers’ spending habits and preferences.

You might discover that customers may prefer to book motels that offer modern amenities, such as free WiFi and updated appliances. Additionally, market research could also reveal that customers may be more likely to stay at motels that offer a variety of recreational activities, such as swimming pools and fitness centres.

This information can then be used to create more accurate financial projections which will help investors make informed decisions about investing in your motel.

Developing the sales and marketing plan for a motel

Budgeting sales and marketing expenses is essential before creating a motel business plan.

A comprehensive sales and marketing plan should provide an accurate projection of what actions need to be implemented to acquire and retain customers, how many people are needed to carry out these initiatives, and how much needs to be spent on promotions, advertising, and other aspects.

This helps ensure that the right amount of resources is allocated to these activities in order to hit the sales and growth objectives forecasted in your business plan.

The staffing and equipment needs of a motel

Whether you are at the beginning stages of your motel or expanding its horizons, having a clear plan for recruitment and capital expenditures (investment in equipment and real estate) is vital to ensure your business's success.

To achieve this, both the recruitment and investment plans must align coherently with the projected timing and level of growth in your forecast. It is essential to secure appropriate funding for these plans.

A motel may incur staffing costs for hiring front desk staff, housekeepers, and maintenance staff. You may also need to purchase equipment such as beds, furniture, towels, cleaning supplies, and other necessities. Additionally, you may need to invest in security equipment such as cameras, locks, and alarm systems.

To create a financial forecast that accurately represents your business's outlook, remember to factor in other day-to-day operating expenses.

Now that you have all the necessary information, it's time to dive in and start creating your business plan and developing the financial forecast for your motel.

What goes into your motel's financial forecast?

The objective of the financial forecast of your motel's business plan is to show the growth, profitability, funding requirements, and cash generation potential of your business over the next 3 to 5 years.

The four key outputs of a financial forecast for a motel are:

• The profit and loss (P&L) statement ,
• The projected balance sheet ,
• The cash flow forecast ,
• And the sources and uses table .

Let's look at each of these in a bit more detail.

The projected P&L statement

The projected P&L statement for a motel shows how much revenue and profits your business is expected to generate in the future.

Ideally, your motel's P&L statement should show:

• Healthy growth - above inflation level
• Improving or stable profit margins
• Positive net profit

Expectations will vary based on the stage of your business. A startup will be expected to grow faster than an established motel. And similarly, an established company should showcase a higher level of profitability than a new venture.

The forecasted balance sheet of your motel

The projected balance sheet of your motel will enable the reader of your business plan to assess the overall financial health of your business.

It shows three elements: assets, liabilities and equity:

• Assets: are productive resources owned by the business, such as equipment, cash, and accounts receivable (money owed by clients).
• Liabilities: are debts owed to creditors, lenders, and other entities, such as accounts payable (money owed to suppliers).
• Equity: includes the sums invested by the shareholders or business owners and the profits and losses accumulated by the business to date (which are called retained earnings). It is a proxy for the value of the owner's stake in the business.

Analysing your motel projected balance sheet provides an understanding of your motel's working capital structure, investment and financing policies.

In particular, the readers of your plan can compare the level of financial debt on the balance sheet to the equity value to measure the level of financial risk (equity doesn't need to be reimbursed, while financial debt must be repaid, making it riskier).

They can also use your balance sheet to assess your motel’s liquidity and solvency:

• A liquidity analysis: focuses on whether or not your business has sufficient cash and short terms assets to cover its liabilities due in the next 12 months.
• A solvency analysis: takes and longer view to assess whether or not your business has the capacity to repay its debts over the medium term.

The projected cash flow statement

A cash flow forecast for a motel shows how much cash the business is projected to generate or consume.

The cash flow statement is divided into 3 main areas:

• The operating cash flow shows how much cash is generated or consumed by the operations (running the business)
• The investing cash flow shows how much cash is being invested in capital expenditure (equipment, real estate, etc.)
• The financing cash flow shows how much cash is raised or distributed to investors and lenders

Looking at the cash flow forecast helps you to ensure that your business has enough cash to keep running, and can help you anticipate potential cash shortfalls.

It is also a best practice to include a monthly cash flow statement in the appendices of your motel business plan so that the readers can view the impact of seasonality on your business cash position and generation.

The initial financing plan

The initial financing plan - also called a sources and uses table - is an important tool when starting a motel.

It shows where the money needed to set up the business will come from (sources) and how it will be allocated (uses).

Having this table helps understand what costs are involved in setting up the motel, how the risks are distributed between the shareholders and the lenders, and what will be the starting cash position (which needs to be sufficient to sustain operations until the business breaks even).

Now that the financial forecast of a motel business plan is understood, let's focus on what goes into the written part of the plan.

The written part of a drugstore business plan

The written part of the business plan is where you will explain what your business does and how it operates, what your target market is, whom you compete against, and what strategy you will put in place to seize the commercial opportunity you\'ve identified.

Having this context is key for the reader to form a view on whether or not they believe that your plan is achievable and the numbers in your forecast realistic.

The written part of a motel business plan is composed of 7 main sections:

• The executive summary
• The presentation of the company
• The products and services
• The market analysis
• The strategy
• The operations
• The financial plan

Let's go through the content of each section in more detail!

1. The executive summary

The first section of your motel's business plan is the executive summary which provides, as its name suggests, an enticing summary of your plan which should hook the reader and make them want to know more about your business.

When writing the executive summary, it is important to provide an overview of the business, the market, the key financials, and what you are asking from the reader.

Start with a brief introduction of the business, its name, concept, location, how long it has been in operation, and what makes it unique. Mention any services or products you plan to offer and who you sell to.

Then you should follow with an overview of the addressable market for your motels, current trends, and potential growth opportunities.

You should then include a summary of your key financial figures such as projected revenues, profits, and cash flows.

Finally, you should detail any funding requirements in the ask section.

2. The presentation of the company

In your motel business plan, the second section should focus on the structure and ownership, location, and management team of your company.

In the structure and ownership part, you'll provide an overview of the business's legal structure, details about the owners, and their respective investments and ownership shares. This clarity is crucial, especially if you're seeking financing, as it helps the reader understand which legal entity will receive the funds and who controls the business.

Moving on to the location part, you'll offer an overview of the company's premises and their surroundings. Explain why this particular location is of interest, highlighting factors like catchment area, accessibility, and nearby amenities.

When describing the location of your motel, you could point out its proximity to major highways, its access to popular attractions, and its potential for drawing in business from the local area. You might emphasize the potential for repeat customers, as well as the potential for drawing in customers from further afield.

You may also want to highlight the area's natural beauty and any other points of interest that could draw guests in. Additionally, you could point out any potential for additional development in the area, which could result in increased business for your motel.

Finally, you should introduce your management team. Describe each member's role, background, and experience.

Don't forget to emphasize any past successes achieved by the management team and how long they've been working together. Demonstrating their track record and teamwork will help potential lenders or investors gain confidence in their leadership and ability to execute the business plan.

3. The products and services section

The products and services section of your motel business plan should include a detailed description of what your company sells to its customers. 

For example, your motel might offer customers complimentary breakfast, complimentary Wi-Fi, and 24-hour desk service. Breakfast can provide customers with a convenient and healthy meal option, Wi-Fi can allow customers to stay connected to their work and family, and 24-hour desk service can provide customers with assistance and support at any time.

The reader will want to understand what makes your motel unique from other businesses in this competitive market.

When drafting this section, you should be precise about the categories of products or services you sell, the clients you are targeting and the channel/s that you are targeting them through. 

4. The market analysis

When outlining your market analysis in the motel business plan, it's essential to include comprehensive details about customers' demographics and segmentation, target market, competition, barriers to entry, and relevant regulations.

The primary aim of this section is to give the reader an understanding of the market size and appeal while demonstrating your expertise in the industry.

To begin, delve into the demographics and segmentation subsection, providing an overview of the addressable market for your motel, key marketplace trends, and introducing various customer segments and their preferences in terms of purchasing habits and budgets.

Next, shift your focus to the target market subsection, where you can zoom in on the specific customer segments your motel targets. Explain how your products and services are tailored to meet the unique needs of these customers.

For example, your target market might include business travelers. These are people who are travelling for work and need a place to stay for the night or the weekend. They typically book their stays in advance and look for amenities like free breakfast, Wi-Fi, and comfortable beds. Business travellers usually need a reliable, convenient place to stay while on the road.

In the competition subsection, introduce your main competitors and explain what sets your motel apart from them.

Finally, round off your market analysis by providing an overview of the main regulations that apply to your motel.

5. The strategy section

When writing the strategy section of a business plan for your motel, it is essential to include information about your competitive edge, pricing strategy, sales & marketing plan, milestones, and risks and mitigants.

The competitive edge subsection should explain what sets your company apart from its competitors. This part is especially key if you are writing the business plan of a startup, as you have to make a name for yourself in the marketplace against established players.

The pricing strategy subsection should demonstrate how you intend to remain profitable while still offering competitive prices to your customers.

The sales & marketing plan should outline how you intend to reach out and acquire new customers, as well as retain existing ones with loyalty programs or special offers. 

The milestones subsection should outline what your company has achieved to date, and its main objectives for the years to come - along with dates so that everyone involved has clear expectations of when progress can be expected.

The risks and mitigants subsection should list the main risks that jeopardize the execution of your plan and explain what measures you have taken to minimize these. This is essential in order for investors or lenders to feel secure in investing in your venture.

Your motel faces a wide variety of risks. For example, you may be exposed to financial risks due to the potential for theft or fraudulent activities.

You might also face the risk of lawsuits due to liability issues, such as accidents or injuries on the premises. It is important to anticipate these risks and have a plan in place to mitigate them.

6. The operations section

The operations of your motel must be presented in detail in your business plan.

Begin by addressing your staff, specifying the main roles and your recruitment plan to support the anticipated growth. Outline the qualifications and experience needed for each role and discuss your recruitment strategies, which may involve using job boards, referrals, or headhunters.

Next, clearly state your motel's operating hours, allowing the reader to gauge the adequacy of your staffing levels. Additionally, mention any considerations for varying opening times during peak seasons and your approach to handling customer queries outside regular operating hours.

The key assets and intellectual property (IP) required to run your business should also be highlighted. If you rely on licenses, trademarks, physical structures like equipment or property, or lease agreements, ensure they are well-documented in this section.

You may have key assets such as the land or building that the motel is on, as well as furniture and equipment within the motel.

Additionally, you might have intellectual property such as a brand or logo associated with the motel, as well as any copyrighted material used in marketing or advertising the motel.

Finally, provide a comprehensive list of suppliers you intend to collaborate with, along with a breakdown of their services and main commercial terms, such as price, payment terms, break clauses and contract duration. Investors often seek insight into the reasons behind your supplier choices, which may include a preference for higher-quality products or established relationships from past ventures.

7. The presentation of the financial plan

The financial plan section is where we will include the financial forecast we talked about earlier in this guide.

Now that you have a clear idea of the content of a motel business plan, let's look at some of the tools you can use to create yours.

What tool should I use to write my motel's business plan?

In this section, we will be reviewing the two main options for writing a motel business plan efficiently:

• Using specialized software,
• Outsourcing the drafting to the business plan writer.

Using an online business plan software for your motel's business plan

Using an online business planning software is the most efficient and modern way to create a motel business plan.

There are several advantages to using specialized software:

• You can easily create your financial forecast by letting the software take care of the financial calculations for you without errors
• You are guided through the writing process by detailed instructions and examples for each part of the plan
• You can access a library of dozens of complete business plan samples and templates for inspiration
• You get a professional business plan, formatted and ready to be sent to your bank or investors
• You can easily track your actual financial performance against your financial forecast
• You can create scenarios to stress test your forecast's main assumptions
• You can easily update your forecast as time goes by to maintain visibility on future cash flows
• You have a friendly support team on standby to assist you when you are stuck

If you're interested in using this type of solution, you can try The Business Plan Shop for free by signing up here .

Hiring a business plan writer to write your motel's business plan

Outsourcing your motel business plan to a business plan writer can also be a viable option.

Business plan writers are experienced in writing business plans and adept at creating financial forecasts without errors. Furthermore, hiring a consultant can save you time and allow you to focus on the day-to-day operations of your business.

However, hiring business plan writers is expensive as you are paying for the software used by the consultant, plus their time, and their profit margin of course.

From experience, you need to budget at least £1.5k ($2.0k) excluding tax for a complete business plan, more if you need to make changes after the initial version (which happens frequently after the initial meetings with lenders or investors).

You also need to be careful when seeking investment. Investors want their money to be used to grow the business, not spent on consulting fees. Therefore, the amount you spend on business plan writing services (and other consulting services such as legal services) needs to be negligible relative to the amount raised.

The other drawback is that you usually don't own the business plan itself: you just get the output, while the actual document is saved in the consultant's business plan software - which makes it difficult to maintain the document up to date without hiring the consultant on a retainer.

For these reasons, outsourcing the motel business plan to a business plan writer should be considered carefully, weighing both the advantages and disadvantages of hiring outside help.

Ultimately, it may be the right decision for some businesses, while others may find it beneficial to write their own business plan using online software.

Why not create your motel's business plan using Word or Excel?

Using Microsoft Excel and Word (or their Google, Apple, or open-source equivalents) to write a motel business plan is a terrible idea.

For starters, creating an accurate and error-free financial forecast on Excel (or any spreadsheet) is very technical and requires both a strong grasp of accounting principles and solid skills in financial modelling.

As a result, it is unlikely anyone will trust your numbers unless - like us at The Business Plan Shop - you hold a degree in finance and accounting and have significant financial modelling experience in your past.

The second reason is that it is inefficient. Building forecasts on spreadsheets was the only option in the 1990s and early 2000s, nowadays technology has advanced and software can do it much faster and much more accurately.

And with the rise of AI, software is also becoming smarter at helping us detect mistakes in our forecasts and helping us analyse the numbers to make better decisions.

Also, using software makes it easy to compare actuals vs. forecasts and maintain our forecasts up to date to maintain visibility on future cash flows - as we discussed earlier in this guide - whereas this is a pain to do with a spreadsheet.

That's for the forecast, but what about the written part of my motel business plan?

This part is less error-prone, but here also software brings tremendous gains in productivity:

• Word processors don't include instructions and examples for each part of your business plan
• Word processors don't update your numbers automatically when they change in your forecast
• Word processors don't handle the formatting for you

Overall, while Word or Excel may be viable options for creating a motel business plan for some entrepreneurs, it is by far not the best or most efficient solution.

• Having an up-to-date business plan is key to maintaining visibility on your future cash flows.
• A business plan has 2 parts: a financial forecast highlighting the expected growth, profitability and cash generation of the business; and a written part which provides the context needed to interpret and assess the quality of the forecast.
• Using business plan software is the modern way of writing and maintaining business plans.

We hope that this guide helped you to better understand how to write the business plan for a motel. If you still have questions, do not hesitate to contact us.

Also on The Business Plan Shop

• How to write a 5 years business plan
• Business plan myths

Know someone who owns or wants to start a motel? Share this article with them!

Founder & CEO at The Business Plan Shop Ltd

Guillaume Le Brouster is a seasoned entrepreneur and financier.

Guillaume has been an entrepreneur for more than a decade and has first-hand experience of starting, running, and growing a successful business.

Prior to being a business owner, Guillaume worked in investment banking and private equity, where he spent most of his time creating complex financial forecasts, writing business plans, and analysing financial statements to make financing and investment decisions.

Guillaume holds a Master's Degree in Finance from ESCP Business School and a Bachelor of Science in Business & Management from Paris Dauphine University.

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How To Write a Business Plan for Motel in 9 Steps: Checklist

By henry sheykin, resources on motel.

• Financial Model
• Business Plan
• Value Proposition
• One-Page Business Plan
• SWOT Analysis
• Business Model
• Marketing Plan

Welcome to our blog post on how to write a business plan for a motel in 9 simple steps! In today's fast-paced world, travelers are always on the lookout for affordable and comfortable accommodations while they are on the road. The motel industry has witnessed steady growth in recent years, providing ample opportunities for entrepreneurs to tap into this lucrative market.

Statistical data reveals that the motel industry is predicted to grow at a CAGR of 4.4% from 2021 to 2028. This growth can be attributed to the increasing number of domestic and international travelers, as well as the rising demand for budget-friendly lodging options. With the right business plan in place, you can capitalize on this trend and create a successful motel business that caters to the needs of modern-day travelers.

To get started, the first step is to identify your target market and location. Determine the type of travelers you want to cater to, such as business executives, families, or budget-conscious tourists. Additionally, research potential locations that offer easy access to major highways or tourist attractions, ensuring convenience for your guests.

Next, it is essential to conduct thorough market research and competitive analysis. Understand the existing players in the market, their pricing strategies, and the amenities they offer. This information will help you identify gaps in the market and develop a unique selling proposition that sets your motel apart from the competition.

In addition to market research, assessing the financial feasibility and funding requirements of your motel business is crucial. Determine the initial investment required, the projected revenue, and the operating expenses to ensure profitability. This information will also be valuable when seeking funding from investors or financial institutions.

Developing a clear vision and mission statement for your motel business will provide a foundation for your business plan. Clearly define the purpose of your motel and the values it will uphold, which will guide your decision-making process and establish a strong brand identity.

Your unique selling proposition and competitive advantage should be clearly articulated. Think about what sets your motel apart from others in the market. Do you offer a wider variety of room types or additional amenities like mini-fridges, microwaves, or free WiFi? Highlight these unique features to attract potential guests.

With a rough draft of the business plan outline in place, you can start gathering the necessary industry and market data. Include relevant statistics, growth trends, and demographics to support your business strategy and demonstrate your knowledge of the market.

Identifying potential risks and challenges is an important step in any business plan. Consider factors such as seasonality, economic fluctuations, or changes in consumer preferences that may impact your motel business. Develop contingency plans to mitigate these risks and ensure the long-term success of your venture.

Finally, set specific goals and objectives for your motel business. These can be financial targets, customer satisfaction goals, or expansion plans. Setting clear objectives will help you stay focused and measure the progress of your motel as it grows.

In conclusion, writing a business plan for a motel requires careful consideration of target market and location, market research, financial feasibility, vision and mission statement, unique selling proposition, industry and market data, risks and challenges, and setting goals and objectives. By following these 9 simple steps, you can create a comprehensive plan that will pave the way for a successful motel business in the highly competitive hospitality industry.

Identify Target Market And Location

Identifying the target market and choosing the right location are crucial steps in creating a successful motel business. Understanding the needs and preferences of your target market will help you tailor your services and amenities to attract and retain customers. Additionally, selecting the right location will ensure that your motel is easily accessible to your target market and can attract a steady stream of travelers.

When identifying your target market, consider factors such as demographics, travel patterns, and preferences. Are you targeting budget-conscious travelers, business professionals, families, or a specific niche market? Understanding who your customers are will help you determine the amenities and room types you should offer.

Once you have identified your target market, it's time to choose the right location for your motel. Consider factors such as proximity to major highways or transportation hubs, nearby attractions or landmarks, and the availability of parking facilities. It's important to choose a location that is convenient for travelers and offers easy access to the places they want to visit.

Tips for identifying the target market and location:

• Conduct surveys or interviews: Gather insights from potential customers to understand their preferences and expectations from a motel.
• Study competitor locations: Analyze the locations of existing motels in the area and identify any gaps in the market that you can fill.
• Consider local attractions: If your target market includes tourists, choose a location that is close to popular attractions or landmarks.
• Collaborate with local businesses: Partnering with local businesses, such as restaurants or tourist agencies, can help attract more customers to your motel.

Conduct Market Research And Competitive Analysis

Market research and competitive analysis are crucial steps in building a successful business plan for your motel. By conducting thorough research, you will gain a deep understanding of your target market, identify your competition, and discover opportunities for growth.

1. Identify your target market: Begin by defining your target market, which includes identifying the demographic characteristics, preferences, and needs of your potential customers. This information will guide you in tailoring your motel's amenities, room types, and services to meet their specific requirements.

2. Conduct a comprehensive market analysis: Research the current and future trends in the hospitality industry, particularly in the motel sector. Analyze the demand for accommodations in your chosen location, studying factors such as tourism statistics, level of competition, and seasonality. This analysis will help you understand the potential demand for your motel and determine if there is room for growth.

3. Gather information on your competition: Identify your direct and indirect competitors in the area. Look for motels or hotels offering similar services, amenities, and price ranges. Analyze their strengths and weaknesses, customer reviews, online presence, and marketing strategies. This analysis will help you identify gaps and opportunities in the market that you can capitalize on.

• Visit local motels and immerse yourself in their guest experience to understand their operations and service quality.
• Utilize online platforms, such as review websites and social media, to gather information about customer feedback and complaints about existing motels in the area.
• Seek customer feedback through surveys or questionnaires to gain insights into their preferences and needs.

4. Analyze industry trends and innovations: Stay up-to-date with industry news, advancements, and emerging technologies that could impact the motel business. This information will help you make informed decisions regarding the development of your business plan and potential areas of differentiation.

5. Determine market size and growth potential: Estimate the size of the market and evaluate its growth potential by exploring factors such as population growth, projected economic development, and tourism forecasts. This data will allow you to assess the viability of your motel business and understand its potential for success.

By conducting thorough market research and competitive analysis, you will have a solid foundation for developing a business plan that aligns with your target market's needs and provides you with a competitive edge in the industry.

Determine The Financial Feasibility And Funding Requirements

One of the most crucial steps in writing a business plan for a motel is determining the financial feasibility and understanding the funding requirements. This step aims to assess whether your motel business idea is financially viable and if you have enough resources to support its establishment and operation.

To determine the financial feasibility, you need to conduct a thorough analysis of the costs involved in setting up and running a motel. This includes expenses such as land acquisition or lease, construction or renovation costs, purchasing furniture and amenities, hiring staff, marketing, and ongoing operational costs. It is essential to break down these costs and create a comprehensive budget that covers all the necessary expenditures.

Once you have estimated the costs, you need to assess the potential revenue your motel can generate. This can be done by analyzing the demand for motel accommodations in your target market, understanding the average room rates in the area, and projecting the occupancy rates you expect to achieve. This analysis will help you determine if the projected revenue can cover the expenses and provide a return on investment.

When it comes to funding requirements, you need to consider how much capital you have available and whether it is sufficient to cover the initial investment. If you have a funding gap, you will need to explore various financing options. These may include seeking loans from financial institutions, attracting investors or partners, or considering other sources of funding such as grants or crowdfunding.

Tips for determining financial feasibility and funding requirements:

• Create a detailed financial projection that takes into account both fixed and variable costs.
• Research and compare interest rates and terms offered by different lenders to secure the most favorable financing option.
• Prepare a compelling business plan that highlights the potential return on investment to attract investors or partners.
• Consider alternative financing methods like public-private partnerships or government programs specifically designed for motel development.
• Regularly review and update your financial plan to ensure it remains viable and relevant.

By thoroughly analyzing the financial feasibility and determining the funding requirements for your motel business, you'll be better prepared to make informed decisions and secure the necessary resources to bring your business idea to life.

Develop A Clear Vision And Mission Statement

A clear vision and mission statement is essential for any business, including a motel. It helps to define the purpose, direction, and values of your business. Your vision and mission statements will guide your decision-making process and provide a framework for your business plan.

When developing your vision statement, it is important to think about the long-term goals and aspirations of your motel. What do you envision your motel becoming in the future? What impact do you want to have on your customers and the community?

Your vision statement should be concise and inspirational, capturing the essence of what your motel aims to achieve. It should be a forward-looking statement that reflects your aspirations for the future.

Once you have defined your vision, it is time to develop your mission statement. Your mission statement should clearly articulate the purpose of your motel and how it intends to achieve its vision. It should describe who your target market is, what services you will provide, and how you will differentiate yourself from competitors.

Tips for developing a clear vision and mission statement:

• Think about the unique qualities and amenities your motel will offer
• Consider the values and principles that will guide your business
• Keep your statements concise and focused
• Ensure that your statements are aligned with your target market and industry trends
• Use your vision and mission statements as a reference point when making decisions about your motel's direction

By developing a clear vision and mission statement, you can lay the foundation for a successful motel business plan. These statements will help you stay focused on your goals and communicate your purpose to investors, employees, and customers.

Define The Unique Selling Proposition And Competitive Advantage

When developing a business plan for your motel, it is important to clearly define your unique selling proposition (USP) and competitive advantage. These two factors will set your motel apart from the competition and attract customers. Your USP is what makes your motel different and desirable to your target market, while your competitive advantage positions you as a stronger option compared to other motels in the area.

1. Identify your unique features: Determine what sets your motel apart from others. Consider the amenities and services you offer, such as the mini-fridges, microwaves, free WiFi, cable TV, and complimentary continental breakfast mentioned in the business idea. Highlight these unique features to showcase the value they provide to your guests.

2. Understand your target market: Analyze the preferences and needs of your target market. What are they looking for when choosing a motel? Are they price-conscious travelers, business professionals, or families? Tailor your USP and competitive advantage to address their specific needs and desires.

3. Emphasize exceptional customer service: Providing excellent customer service can be a powerful competitive advantage. Train and empower your staff to go the extra mile for your guests. Offer personalized experiences and make sure your guests feel valued and cared for during their stay.

4. Highlight your location: If your motel is located in a prime location, such as near popular tourist attractions or business districts, make sure to leverage it as a part of your USP. Emphasize the convenience and accessibility your location offers to attract more guests.

Tips for defining your USP and competitive advantage:

• Research your competitors' offerings and determine how you can differentiate yourself.
• Stay up-to-date with industry trends and incorporate them into your USP.
• Consider conducting customer surveys to gather feedback and identify opportunities for improvement.
• Don't just focus on price; find other ways to provide value to your guests.
• Showcase any awards, certifications, or recognition your motel has received to build trust and credibility.

Defining your unique selling proposition and competitive advantage is crucial for the success of your motel business. It will help you attract the right customers and position your motel as the top choice in the market. Take the time to carefully analyze your strengths and capitalize on them in your business plan.

Create A Rough Draft Of The Business Plan Outline

Once you have gathered all the necessary information and conducted thorough research, it's time to start crafting a rough draft of your business plan outline. This preliminary document will serve as the foundation for your final business plan.

When creating this rough draft, it's important to include all the essential sections and elements that a comprehensive business plan should have. This will help you to organize your thoughts and ideas in a logical and coherent manner.

Here is a suggested outline for your motel business plan:

• Executive Summary: Provide an overview of your motel business, highlighting its key features and benefits.
• Company Description: Describe your motel in detail, including its location, target market, and unique selling proposition.
• Market Analysis: Present the results of your market research and competitive analysis, demonstrating a thorough understanding of your target market and competition.
• Organization and Management: Outline the structure and key personnel of your motel business.
• Products and Services: Describe the various room types, amenities, and additional offerings that your motel will provide.
• Marketing and Sales Strategy: Detail your plans for promoting and selling your motel's services.
• Operational Plan: Explain how your motel will operate on a day-to-day basis, including staffing, suppliers, and logistics.
• Financial Projections: Provide projected financial statements, including income statement, balance sheet, and cash flow statement.
• Appendix: Include any supporting documents, such as market research data, resumes of key personnel, or legal agreements.
• Keep your rough draft concise and focused, ensuring that each section conveys the necessary information without unnecessary fluff.
• Use bullet points and subheadings to make your draft easy to read and navigate.
• Review and revise your rough draft multiple times to ensure clarity, coherence, and accuracy.
• Seek feedback from trusted advisors or mentors to gain valuable insights and suggestions for improvement.
• Remember that this rough draft is a starting point, and it will evolve and become more refined as you progress with your business plan.

Gather The Necessary Industry And Market Data

In order to develop a comprehensive business plan for your motel, it is essential to gather relevant industry and market data. This information will not only help you understand the current trends and dynamics of the motel industry, but it will also assist you in making informed decisions for your own business. Here are some important steps to consider when gathering the necessary industry and market data:

• Utilize online surveys and questionnaires to gather customer feedback directly
• Network with industry professionals and attend trade shows to gain insights from experienced entrepreneurs
• Consider hiring a market research firm to conduct comprehensive analysis and gather data

By taking the time to gather the necessary industry and market data, you will be equipped with valuable insights to guide your business decisions. This information will help you develop effective marketing strategies, identify your target market, and position your motel as a competitive player in the industry.

Identify Potential Risks And Challenges

As with any business venture, it is essential to identify the potential risks and challenges that your motel may face. By anticipating these potential obstacles in advance, you can better prepare and develop strategies to mitigate their impact. Here are some important factors to consider:

• Competition: Analyze the level of competition in the area where you plan to open your motel. Identify other lodging options and assess their strengths and weaknesses. This will help you determine how to differentiate your motel and attract customers.
• Economic Factors: Consider the economic conditions and trends that may affect the demand for accommodations in your target market. Economic downturns, fluctuations in travel patterns, and changes in consumer spending habits can significantly impact the success of your business.
• Location: Assess the location of your motel and evaluate its accessibility, visibility, and proximity to key amenities and attractions. If the motel is in a remote or less desirable location, it may be challenging to attract customers and generate consistent revenue.
• Seasonality: Determine whether your motel's location experiences seasonal fluctuations in tourism or business travel. If your business heavily relies on the high season, you may need to develop strategies to generate revenue during the off-peak periods.
• Operational Challenges: Consider the operational aspects of running a motel, such as staffing, maintenance, and customer service. Ensuring that you have a well-trained and effective team in place and implementing efficient operational procedures are critical to delivering a positive guest experience.
• Regulations and Legalities: Familiarize yourself with the local, state, and federal regulations that govern the lodging industry. Ensure that your motel complies with all necessary licenses, permits, and safety regulations to avoid legal issues and penalties.
• Regularly review and update your risk assessment as market conditions and external factors evolve.
• Consider seeking professional advice from industry consultants or experts to assess potential risks and develop effective risk management strategies.
• Create contingency plans to address unforeseen events, such as natural disasters, disruptions in the supply chain, or public health emergencies.

Set Specific Goals And Objectives

Once you have gathered all the necessary information and analyzed your target market, it is important to set specific goals and objectives for your motel business. These goals will serve as a roadmap for your operations and guide you towards success. Here are some key points to consider when setting goals and objectives:

• Be measurable and quantifiable: Set goals that can be measured using specific metrics and numbers. This will allow you to track your progress and assess the success of your business.
• Align with your vision and mission: Ensure that your goals and objectives align with the overall vision and mission of your motel business. This will help you stay focused and maintain a consistent direction.
• Be realistic and attainable: Set goals that are challenging yet achievable. Consider factors such as market conditions, competition, and available resources when setting your objectives.
• Set both short-term and long-term goals: Establish goals that can be achieved within a specific timeframe, such as quarterly or annually. Additionally, define long-term objectives that outline your ultimate vision for the business.
• Include financial goals: Set financial targets for your motel business, such as revenue growth, profit margins, and return on investment. These goals will ensure the financial sustainability and success of your venture.

Tips for Setting Goals And Objectives:

• Break down larger goals into smaller, actionable tasks for better manageability.
• Regularly track and evaluate your progress towards achieving your goals to stay on track.
• Review and revise your goals periodically to adapt to changing market conditions or business needs.
• Communicate your goals and objectives with your team to ensure everyone is aligned and working towards the same vision.

By setting specific goals and objectives for your motel business, you will have a clear direction and a framework for success. This step marks an important milestone in your business planning process, as it outlines what you aim to achieve and how you plan to get there. Stay focused, motivated, and monitor your progress regularly to make necessary adjustments and keep moving forward.

In conclusion, writing a business plan for a motel involves several important steps that are crucial for success. By identifying the target market and location, conducting thorough market research, and determining the financial feasibility, you can lay a strong foundation for your motel business. Additionally, developing a clear vision and mission statement, defining your unique selling proposition, and setting specific goals and objectives will help guide your business operations.

Creating a rough draft of the business plan outline and gathering necessary industry and market data will further assist in shaping your motel business. It is also essential to identify potential risks and challenges that may arise and develop strategies to mitigate them. Lastly, ensuring your motel offers a variety of room types and amenities, such as mini-fridges, microwaves, free WiFi, cable TV, and complimentary continental breakfast, will attract and satisfy your target customers.

In summary, by following these nine steps outlined in this checklist, you can create a comprehensive business plan that will set your motel up for success in the competitive hospitality industry.

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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.

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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 Writer 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..., infinitely scalable: build your ideal hotel tech stack with a modern platform, what is a booking engine how to increase profitability and direct bookings, hotel crs: what it is and how it helps the bottom line.

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Motel Business Plan Template

• Written by Dave Lavinsky

Table of Contents

If you’re looking to create a motel business plan, you’ve come to the right place!

Over the past 25 years, the PlanPros team has helped over 1 million entrepreneurs and business owners write business plans….and many of them have started and grown successful motel businesses.

Motel Business Plan Example

Below is our motel business plan template and sample plan:  

I. Executive Summary

Company overview.

At Starlite Comfort Inn, we are proud to introduce our new motel located in the heart of Delano, CA. Recognizing the scarcity of quality lodging options in the area, we have established our motel to cater to the diverse needs of families, individuals traveling through California, local workers, and residents seeking a comfortable stay. Positioned off route 99, our motel serves as an ideal stopover or temporary residence, offering a range of accommodation options at competitive prices. Our nightly rate is set at $80, providing flexibility for guests requiring short stays, while our weekly rate of $392 and monthly rate of $1440 cater to those in need of longer accommodations. Our commitment is to ensure comfort and convenience for our guests, making their stay memorable at Starlite Comfort Inn.

Success Factors

Our confidence in the success of Starlite Comfort Inn is based on our thorough market understanding and the clear differentiation from existing motels in Delano, which suffer from poor management and locations. Our strategic selection of a superior location, commitment to top-notch facilities, and dedication to guest safety and well-being distinguish us from our competitors. Since our establishment as a C Corporation on December 4th, 2023, we have secured an ideal location and partnered with renowned architects and contractors to materialize our vision. Our progress to date positions us well to become the preferred lodging choice in Delano.

Industry Analysis

The Motel industry in the United States, with a market size of $25 billion in 2020, plays a crucial role in the economy and is projected to reach $30 billion by 2025. Starlite Comfort Inn aligns well with industry trends, including a preference for affordable accommodation, demand for motels in accessible locations, and an emphasis on cleanliness and safety, particularly post-COVID-19. Our strategic location in Delano and commitment to maintaining a clean and secure environment cater to these trends, positioning us to capitalize on the industry’s growth and attract both leisure and business travelers.

Customer Analysis

Starlite Comfort Inn targets a diverse customer base, including commuters seeking a restful stopover with easy access, local workers requiring temporary lodging, and residents in need of short-term accommodations. We tailor our services for quick check-in/out processes, offer extended stay discounts and in-room workspaces for workers, and cater to families and individuals with a range of room types and facilities. Our strategic location and welcoming environment position us as a favored choice for those seeking comfortable stays close to home.

Competitive Analysis

Our top competitors include Motel 6 Delano, Rodeway Inn Delano, and Palm Motel Delano. While these motels offer basic amenities and affordability, they lack in service range, location advantages, or unique offerings. Starlite Comfort Inn sets itself apart with a prime location, state-of-the-art facilities, and a strong commitment to safety and guest well-being, offering a blend of accessibility and tranquility unmatched by competitors. Our modern amenities, rigorous security measures, and exceptional customer service establish us as the ultimate choice for comfort and convenience.

Marketing Plan

Starlite Comfort Inn employs a comprehensive marketing strategy that includes competitive pricing for nightly, weekly, and monthly stays, and a mix of traditional and digital promotional activities. We utilize highway signage for visibility, engage in local community sponsorships, optimize our website with SEO, leverage social media, conduct email marketing, partner with OTAs, and host unique events to attract a wide range of customers. These efforts aim to enhance brand visibility, foster community relations, and drive both direct and indirect bookings, establishing Starlite Comfort Inn as a premier lodging option in Delano.

Operations Plan

Starlite Comfort Inn’s operations focus on efficient front desk management, meticulous housekeeping, routine maintenance, offering a complimentary breakfast service, and stringent financial management. Our marketing and customer relations strategies are crafted to attract new customers and retain repeat ones through loyalty programs and promotions. Staff training on excellence in customer service and operational procedures is ongoing, ensuring compliance with labor laws. Emergency preparedness and legal compliance are paramount, with regular emergency drills and adherence to all regulatory requirements. Upcoming milestones include securing the property, obtaining necessary permits, completing facility construction or renovation, and launching a targeted marketing strategy to establish a solid customer base.

Management Team

Our management team, led by President Matthew Ruiz, brings extensive experience and expertise in the hospitality industry. With over 20 years of experience, including a significant tenure as a motel manager at Motel 6, Matthew’s leadership skills and industry knowledge are instrumental in steering Starlite Comfort Inn towards operational excellence and outstanding customer service. His commitment to creating a welcoming environment for guests and a supportive workplace for employees is key to our long-term success.

Financial Plan

To achieve our growth goals, Starlite Comfort Inn requires $2.79 million in funding. This investment will be allocated towards capital investments including land acquisition, building, location buildout, furniture, equipment, and non-capital investments such as working capital, staff salaries for the first 3 months, initial marketing and advertising, supplies, and insurance. These funds will ensure the successful launch and operation of Starlite Comfort Inn, positioning us for solid growth and a strong market presence.

Below is an overview of our expected financial performance over the next five years:

II. Company Overview

Products & services.

At Starlite Comfort Inn, we understand the diverse needs of our guests and offer flexible lodging options to suit every budget and requirement. Our nightly hotel room rate is affordably priced at $80, providing a cost-effective choice for short stays. For guests in need of longer accommodations, we offer a weekly rate of $392, and for those planning an extended stay, our monthly rate of $1440 ensures a comfortable and economical solution. Our commitment is to provide exceptional value without compromising on quality or comfort.

Strategically located in Delano, CA, Starlite Comfort Inn serves the lodging needs of customers in and around the area. Our prime location off route 99 makes us an ideal stopover for travelers, as well as a convenient option for local residents seeking quality accommodations. Our focus is on accessibility and convenience, ensuring that our guests have an enjoyable and hassle-free stay.

Our confidence in the success of Starlite Comfort Inn is grounded in several key factors. With only three other motels in the area, all of which have been poorly received due to substandard management and undesirable locations, our motel stands out as a superior option. We are committed to offering a better location, top-notch facilities, and enhanced safety for our guests. Our dedication to excellence in these areas sets us apart and positions us as the preferred choice for accommodations in Delano, CA.

History, Legal Structure & Accomplishments to Date

Since our inception on December 4, 2023, Starlite Comfort Inn has embarked on a journey to establish ourselves as a leading provider of affordable and comfortable lodging in Delano, CA. As a C Corporation, we have laid a solid foundation for our business, focusing on strategic location selection, collaborating with outstanding architectural and contracting firms, and committing to the highest standards of service and guest satisfaction. Our accomplishments to date reflect our dedication to realizing our vision and serving our community with pride.

At Starlite Comfort Inn, we are more than just a motel; we are a beacon of comfort and hospitality for all who visit Delano, CA. Join us and experience the difference.

III. Industry Analysis

The Motel industry in the United States is currently a thriving and significant sector of the hospitality market. With an estimated market size of $25 billion in 2020, it is evident that the Motel industry plays a substantial role in the economy. Furthermore, market research suggests that this industry is expected to experience steady growth in the coming years. By 2025, it is projected to reach a market value of $30 billion, indicating a positive trajectory for Motels across the country.

Several trends in the Motel industry are contributing to its growth and success, and these trends align well with the offerings of Starlite Comfort Inn in Delano, CA. One of the notable trends is the increasing preference for affordable accommodation options among travelers. Many consumers are seeking comfortable yet reasonably priced lodging, which is precisely what Starlite Comfort Inn aims to provide. Additionally, there is a rising demand for Motels that offer convenient and accessible locations, particularly in popular tourist destinations or along major highways. With its strategic location in Delano, Starlite Comfort Inn is well-positioned to cater to both leisure and business travelers.

Another trend that bodes well for Starlite Comfort Inn is the growing emphasis on cleanliness and safety in the hospitality industry. In light of the COVID-19 pandemic, consumers have become more cautious about hygiene and health precautions when choosing accommodation. Starlite Comfort Inn’s commitment to maintaining a clean and sanitized environment, implementing rigorous safety protocols, and adhering to government guidelines will undoubtedly attract customers seeking a secure and worry-free stay. By staying ahead of these industry trends, Starlite Comfort Inn can capitalize on the growing demand for Motels and position itself as a preferred choice for travelers in the Delano area.

IV. Customer Analysis

Below is a description of our target customers and their core needs.

Target Customers

Starlite Comfort Inn will target commuters passing through Delano, CA, recognizing the strategic location of the city as a juncture point for travelers. This segment includes individuals and families in transit who seek convenient, comfortable, and affordable lodging for short stays. The motel will tailor its services to ensure quick check-ins and check-outs, catering to the needs of guests who are on the move.

Local workers form another significant customer segment for Starlite Comfort Inn. The motel will offer special rates and packages to attract this demographic, which requires regular or semi-regular accommodations close to their places of employment. By providing a comfortable and budget-friendly alternative to long commutes, the motel will become a preferred option for local workers seeking restful nights close to work.

In addition to serving travelers and local workers, Starlite Comfort Inn will also focus on local residents in need of temporary accommodations. This includes individuals and families who require lodging during home renovations, celebrations, or in times of transition. The motel will ensure a welcoming and homely atmosphere, making it an attractive option for residents seeking comfort and convenience within their own community.

Customer Needs

Customers can experience unparalleled cleanliness at Starlite Comfort Inn, where every motel room meets high standards of hygiene. This emphasis on cleanliness ensures that guests enjoy a comfortable and worry-free stay, knowing their health and wellbeing are prioritized. The meticulously maintained rooms serve as a serene retreat for travelers seeking peace of mind during their journeys.

The staff at Starlite Comfort Inn are renowned for their friendliness and dedication to service excellence. Guests can expect a warm welcome and personalized attention throughout their stay, making them feel valued and at home. This level of customer service enhances the overall experience, fostering a sense of community and belonging.

Starlite Comfort Inn stands out for offering good value to its guests, combining affordable rates with exceptional service and amenities. Travelers can enjoy a range of conveniences without breaking the bank, ensuring their stay is both comfortable and cost-effective. Additionally, the motel prioritizes safety, implementing robust security measures to create a secure environment where guests can relax and unwind without concerns.

Understanding the modern traveler’s needs, Starlite Comfort Inn also provides additional amenities such as complimentary Wi-Fi, on-site parking, and access to local attractions. These conveniences cater to both leisure and business travelers, ensuring they have everything they need for a pleasant and productive stay. By addressing these essentials, the motel positions itself as a preferred choice for visitors to Delano, CA.

V. Competitive Analysis

Direct competitors.

Starlite Comfort Inn’s competitors include the following companies:

Motel 6 Delano, CA

This chain offers basic accommodation services aimed at travelers looking for affordability and convenience. Their product offerings include clean rooms, free Wi-Fi, and pet-friendly policies. Price points are typically low, aiming to attract budget-conscious customers. Motel 6 boasts significant revenues due to its widespread brand recognition and extensive network of locations across the country. In Delano, CA, it serves both local residents needing temporary accommodations and travelers passing through. Its key strengths include strong brand recognition and affordability. However, its weaknesses lie in a lack of unique amenities and a perception of lower quality compared to higher-priced competitors.

Rodeway Inn Delano

Rodeway Inn, part of the Choice Hotels group, offers economical lodging with a few more amenities than the most basic motels. Services include free breakfast, Wi-Fi, and an outdoor pool. Their pricing strategy is competitive, aiming to offer better value within the low to mid-price range accommodations. Rodeway Inn’s revenues benefit from the backing of the Choice Hotels brand, which helps in marketing and operational efficiencies. The motel serves both business travelers and tourists in Delano, CA. Strengths of Rodeway Inn include the balance between affordability and comfort, backed by a reputable parent company. However, its weaknesses could be seen in limited luxury offerings and facilities.

Palm Motel Delano Ca

This is a smaller, independently operated motel, offering personalized services that larger chains might not provide. The Palm Motel focuses on providing comfortable rooms, free parking, and a homey atmosphere. Its price points are competitive, aiming to attract guests who prefer a more personal touch to their stay. As a smaller entity, its revenues are not as high as larger competitors, but it enjoys loyalty in its local market. The motel mainly serves visitors and temporary workers in Delano, CA. Its key strengths include a personalized customer service experience and a cozy atmosphere. The main weaknesses are limited marketing reach and fewer amenities compared to larger chains.

Competitive Advantages

At Starlite Comfort Inn, we understand that location is key to providing an exceptional stay for our guests. Our strategic positioning not only makes us accessible but also places us near major attractions and essential amenities, ensuring that our guests can enjoy the convenience of proximity without compromising on tranquility. This blend of accessibility and serenity sets us apart, making us the preferred choice for travelers seeking an enriching and hassle-free experience. Our commitment to offering a prime location enhances the overall guest experience, positioning us as a leading accommodation option in the area.

Moreover, we take pride in our state-of-the-art facilities, which are designed to cater to the diverse needs of our guests. From luxurious rooms equipped with modern amenities to a range of on-site facilities that include a fitness center, swimming pool, and business center, we ensure that our guests have everything they need at their fingertips. Safety is a cornerstone of our operations, and we have implemented rigorous security measures to ensure that our guests feel secure at all times during their stay. Our well-lit parking areas, 24/7 surveillance, and trained security personnel are just a few examples of how we prioritize the safety and well-being of our guests. These competitive advantages, combined with our unwavering commitment to exceptional customer service, make Starlite Comfort Inn the ultimate choice for comfort, convenience, and peace of mind.

VI. Marketing Plan

Our marketing plan, included below, details our products/services, pricing and promotions plan.

Products, Services & Pricing

At Starlite Comfort Inn, guests can expect a comfortable and convenient stay, whether they are traveling for business, leisure, or in need of a long-term accommodation solution. Our range of services caters to the diverse needs of our customers, ensuring a memorable stay at competitive prices.

Our Offerings

Starlite Comfort Inn takes pride in providing a variety of accommodation options tailored to fit the requirements and budgets of our guests. Below is an overview of our key products and services along with their average selling price.

Nightly Hotel Room

For guests seeking short-term stays, our nightly hotel room option is perfect. Priced at an affordable $80 per night , these rooms are designed to provide maximum comfort and convenience. Guests can expect well-appointed rooms equipped with all the essential amenities to make their stay pleasant and relaxing.

Weekly Hotel Room

For those who require a more extended stay, our weekly hotel room offering presents an economical solution. At a cost of $392 per week , guests can enjoy a significant discount compared to the nightly rate. This option is ideal for travelers on extended vacations, business trips, or anyone in between homes.

Monthly Hotel Room

Our monthly hotel room service caters to guests in need of long-term accommodation. With a price of $1440 per month , this option offers the greatest value, combining the comfort and convenience of a hotel stay with the affordability of an apartment. It’s perfect for those on temporary work assignments, relocating, or anyone looking for a hassle-free living solution.

Why Choose Starlite Comfort Inn?

Choosing Starlite Comfort Inn means opting for quality, convenience, and value. Our comprehensive range of services ensures that whether you’re staying for a night, a week, or a month, your needs are met with the highest standards of hospitality. Guests can expect a welcoming environment, attentive service, and accommodations that ensure a comfortable and enjoyable stay.

Promotions Plan

Starlite Comfort Inn employs a diverse range of promotional methods to attract customers, ensuring a memorable and comfortable stay for all guests. Central to these efforts is the strategic use of highway signage . Eye-catching and strategically placed signs along the highway serve as beacons for travelers seeking comfort and convenience. These signs not only make the location easy to find but also highlight key amenities and offers that set Starlite Comfort Inn apart.

Building on the foundation of visibility provided by highway signage, Starlite Comfort Inn also engages with the local community through sponsorships and partnerships. By supporting local events and organizations, the Inn establishes itself as a community pillar, encouraging residents to recommend it to visiting friends and family.

Digital marketing plays a crucial role in the Inn’s promotional strategy. An optimized website serves as the digital front door of Starlite Comfort Inn, providing potential guests with all the information they need, from room availability to booking options. Coupled with search engine optimization (SEO) , the website ensures that Starlite Comfort Inn appears prominently in search results related to accommodations in Delano, CA.

Social media platforms are leveraged to create a community around the Inn. Through regular updates, engaging content, and promotional offers, Starlite Comfort Inn builds relationships with potential and returning guests . This not only boosts direct bookings but also encourages word-of-mouth recommendations.

Email marketing campaigns are tailored to keep past guests informed and engaged, offering them exclusive deals and updates about the Inn. These personalized communications encourage repeat visits and foster a sense of loyalty among guests.

To ensure a comprehensive approach, Starlite Comfort Inn also partners with online travel agencies (OTAs) . While direct bookings are prioritized, OTAs expand the Inn’s reach, attracting a broader audience that might not have been reached through direct channels.

Finally, Starlite Comfort Inn hosts events and workshops that not only provide additional revenue streams but also attract locals and travelers looking for unique experiences. From wine tasting events featuring local vineyards to wellness retreats, these events position the Inn as a destination, not just a place to stay.

In summary, Starlite Comfort Inn employs a multifaceted promotional strategy that combines traditional and digital marketing methods. From highway signage to digital engagement and community involvement, each tactic is designed to enhance visibility, build relationships, and ultimately attract both new and returning customers to the Inn.

VII. Operations Plan

Our Operations Plan details:

• The key day-to-day processes that our business performs to serve our customers
• The key business milestones that our company expects to accomplish as we grow

Key Operational Processes

To ensure the success of Starlite Comfort Inn, there are several key day-to-day operational processes that we will perform.

• Check-in and check-out guests efficiently to minimize wait times.
• Handle guest inquiries and provide information about local attractions and amenities.
• Manage reservations and occupancy levels to maximize room usage and revenue.
• Process payments and handle billing inquiries accurately.
• Ensure rooms are cleaned daily and prepared for new guests.
• Maintain cleanliness and hygiene in public areas such as the lobby, hallways, and restrooms.
• Conduct regular deep-cleaning schedules to uphold high standards of cleanliness.
• Replenish room supplies and amenities to meet guest needs.
• Perform routine checks and maintenance of hotel facilities and equipment.
• Address and resolve any maintenance issues reported by guests or staff promptly.
• Ensure all safety and security equipment is functioning properly.
• Update and maintain the property to keep it looking fresh and appealing.
• Utilize online platforms and social media to promote the motel and engage with potential guests.
• Collect and analyze feedback from guests to improve services and guest satisfaction.
• Offer loyalty programs or special discounts to encourage repeat business.
• Maintain an up-to-date and informative website that showcases the motel’s amenities and offerings.
• Monitor daily revenues and expenses to ensure profitability.
• Prepare and review financial reports regularly to track financial performance.
• Manage payroll, vendor payments, and budgeting efficiently.
• Implement cost-saving measures without compromising service quality.
• Hire qualified staff and provide ongoing training to improve skills and service quality.
• Conduct regular staff meetings to communicate goals, updates, and gather feedback.
• Establish clear job roles and responsibilities for efficient operation.
• Motivate and reward staff for exceptional performance to foster a positive work environment.
• Ensure compliance with local, state, and federal regulations regarding hospitality operations.
• Conduct regular safety drills and training for staff to prepare for emergencies.
• Maintain an effective lost and found system to handle guests’ lost items securely and efficiently.
• Implement and monitor security measures to ensure the safety of guests and staff.

Starlite Comfort Inn expects to complete the following milestones in the coming months in order to ensure its success:

• Secure a prime location in Delano, CA: Successfully acquiring a strategically located property that is accessible and appealing to potential customers.
• Obtain necessary permits and licenses: Ensuring all local, state, and federal regulations are met and the business is legally compliant to operate as a motel.
• Construction and renovation of the property: Completing any necessary construction or renovation work to meet Starlite Comfort Inn’s brand standards and customer expectations for comfort and safety.
• Hire a general manager who can run day-to-day operations: Recruiting and hiring a competent and experienced general manager to oversee the motel’s operations, ensuring smooth functioning and high-quality guest experiences.
• Develop and implement a marketing strategy: Crafting and executing a marketing plan that effectively targets potential customers, builds brand awareness, and drives bookings.
• Establish partnerships with local businesses and tourist attractions: Creating mutually beneficial relationships with local entities to enhance guest experiences and drive referrals.
• Launch the motel and start accepting guests: Officially opening Starlite Comfort Inn for business and beginning to serve guests, marking the transition from setup to operational status.
• Achieve operational efficiency: Streamlining operations to reduce costs, improve guest satisfaction, and ensure the motel runs smoothly and efficiently.
• Reach $100,000 in monthly sales: Achieving this level of sales revenue to ensure profitability and long-term sustainability of the business.
• Implement a customer feedback system: Setting up mechanisms to gather, analyze, and act on customer feedback to continuously improve service quality and guest satisfaction. Each of these milestones is crucial for mitigating risks and setting the foundation for Starlite Comfort Inn’s success in the competitive hospitality industry.

VIII. Management Team

Our management team has the experience and expertise to successfully execute on our business plan.

Management Team Members

Starlite Comfort Inn management team, which includes the following members, has the experience and expertise to successfully execute on our business plan:

Matthew Ruiz, President

Matthew Ruiz, President , brings an extensive background in hospitality management to Starlite Comfort Inn, having honed his skills over two decades. His tenure as a motel manager, notably with Motel 6, has equipped him with a deep understanding of the essentials for running a successful lodging establishment. His experience spans various facets of motel management including operations, customer service, staff training, and financial oversight. Under his leadership, Matthew aims to leverage his comprehensive industry knowledge to elevate Starlite Comfort Inn’s operational excellence, guest satisfaction, and profitability. His proven track record of enhancing operational efficiencies and customer service standards positions him as a pivotal figure in achieving the Inn’s strategic objectives.

IX. Financial Plan

Funding requirements/use of funds.

To accomplish our growth goals, Starlite Comfort Inn needs $2.79 million in funding. Key uses of this funding will be as follows:

Financial Projections

5 Year Annual Income Statement

5 year annual balance sheet, 5 year annual cash flow statement, what is a motel business plan.

A motel business plan is a document that outlines the strategies you have developed to start and/or grow your motel business. Among other things, it details information about your industry, customers and competitors to help ensure your company is positioned properly to succeed. Your motel business plan also assesses how much funding you will need to grow your business and proves, via your financial forecasts, why the business is viable.  

Why You Need a Business Plan for your Motel Business

A business plan is required if you are seeking funding for your motel business. Investors and lenders will review your plan to ensure it meets their criteria before providing you with capital. In addition, a motel business plan helps you and your team stay focused. It documents the strategies you must follow and gives you financial projections you should strive to achieve and against which you can judge your performance.  

Motel Business Plan Template PDF

Download our Motel Business Plan PDF to help guide you as you create your business plan for your own motel company.  

Wondering how to start a hotel business? You’re not alone. One of the  first-ever hotels , as we’ve come to know them, was started in Exeter, England in 1768. Today, the industry has skyrocketed to be part of  one of the largest in the world.  But dreaming of starting a hotel business and actually doing it are two completely different things. That's where we come in. 

In this guide, we’ll teach you how to start a hotel business with step-by-step instructions, expert advice, and actionable tips. Keep reading to discover the fundamentals all hotel businesses need to succeed.

The steps we cover in this guide:

• Step 1: Find a market need
• Step 2: Craft your strategic goals
• Step 3: Run the numbers
• Step 4: Review financing options
• Step 5: Do your paperwork
• Step 6: Hire and train your team
• Step 7: Draft a marketing plan
• Step 8: Launch your hotel business

Discover how to start a hotel business in 8 steps:

Step 1: find a market need..

The first and most important step when learning how to start a hotel business is to gain a thorough understanding of  the hospitality industry  worldwide, as well as in your location. To get started, find your favourite  hotel news sources , then set aside time each day or week to stay informed. Once you have some familiarity with the industry, it’s time to dive into the market research for your hotel.

Let us help you start your hotel business

Cvent's resources library  is a great place to start. It's where you can read the latest news, thought leadership, and best practices from a wide variety of industry experts. The goal of your industry research is to get a clear idea of whether you can be competitive in your market. Also, what characteristics your hotel will need in order to succeed. 

Rather than starting with an idea and making the research fit, try to find an area of need in your market. What audiences are underserved? Where is demand outpacing supply? What does your location need in terms of hospitality and accommodation?

To give you a good understanding of where you’ll fit in, your market research should include:

• Property type.  All hotels are not built the same. The industry is made up of resorts, spas, airport hotels, all-inclusives, hostels, boutiques, and many other property types. Determine what property type you plan to offer and what other options in that category exist in your location.
• Hotel size.  Closely related to your property type is the hotel size. How many guest rooms will you offer, and how does that compare to your competitors?
• Star rating.  What level of service and  hotel amenities  do you plan to offer?
• Location.  What region will you operate in? Is demand increasing in the area? What location amenities, like airports, beaches, or  event venues , will you be in close proximity to?
• Brand affiliation.  Will you be a part of a larger brand’s umbrella? Being affiliated with a brand  can help with marketing , business intelligence, pricing, and audience targeting.
• Extra amenities.  What services or amenities are important for hotels of your type and star rating in your location? Things like free Wi-Fi, meeting space, a pool, or  wedding services  are all important, depending on your target audience.
• Guest demographics.  How would you define the  types of guests  who may frequent your location? What is the purpose of travel, and what are some common characteristics of these travellers? Knowing whether you are targeting business travellers, families, couples, solo travellers, retirees, or other demographic groups will help you to craft your marketing plan and hotel concept.

All of this research should give you a good idea of your main competitors and target audience. Those two pieces of information will determine everything else about your property, from budget and financing to marketing and daily operations. Spend time on this step to make sure you’ve found a true need in the market. You’ll be better prepared for success.

You can utilise tools like  Cvent's Hotel Business Intelligence™ Software Solutions  to provide you with the transformative business insights needed to conduct your market research and benchmark against the competition.

Step 2: Craft your hotel's strategic goals.

Once you have an understanding of market needs, you’ll need to create a smart solution to fill that gap. Your unique combination of amenities, concept, decor, marketing, location, and services can help you stand out from the crowd and capture market share if you approach it strategically.

Consider how you’ll approach pricing,  revenue management , sustainability, customer satisfaction, events, and other market needs when crafting your goals. As with all goals, they should be S.M.A.R.T - specific, measurable, attainable, relevant, and time-based. According to the  Naples Hotel Group , an expert hotel development firm, some of the best goals a hotel owner can focus on include: 

• Measuring and increasing customer satisfaction.
• Creating a solid revenue management system.
• Building a strong online reputation.
• Attending at least one  hotel industry conference .
• Considering working with a consulting firm to bypass the common roadblocks new hotel owners face.

Make sure the needs of the market and your target audience, along with your business needs, help determine your goals. This will ensure that everything you do helps your customers, as well as your bottom line.

You can use a  hotel business plan template  to outline the results of your research and planning, including your competitive advantage, goals, and your plan to get those results.

Step 3: Run the numbers.

With your goals and plan in place, it’s time to run the numbers to make sure you'll be profitable. Using your market research, you can estimate key factors like room pricing, vacancy rates, RevPAR (revenue per available room), and operating costs. A basic overview of  hotel finances  will help you hire the right revenue manager and sales team later on. The two key areas to focus on are profitability and any external factors that may affect your hotel business. You’ll also need to estimate initial costs for your hotel business. This includes startup and hiring costs, licensing, permits, construction, renovations, and your first year of operations.

Set up a few scenarios in your forecasting to see how key decisions affect the potential profitability of your business. For instance, do you want to buy or build? Buying into a franchise or taking over an existing hotel building has lower startup costs, unless you have to renovate extensively. But it also requires you to establish your new hotel identity, which can be a challenge depending on the current state of the business. On the other hand, building a hotel, while usually considerably more expensive upfront, can provide a solution to a lack of available buildings and can be more lucrative in the long run. 

Step 4: Review financing options for your hotel business.

Once you decide on the right financial plan for your business, you’re ready to fund it. There are a number of available options for financing your hotel business. Jim Pendergast, Senior Vice President and General Manager of  altLINE , discussed this topic in a recent interview with Cvent.

“It's important to understand the full scope of financing options available for your hotel's funding," he said. "Generally, you have two commercial financing categories when opening your hotel: traditional credit or specialty credit.

With traditional credit lines, you receive financing based on long-term assets. These are things like real estate owned by your hotel as well as cash flow projections and calculations submitted during underwriting. Lenders review these assets before awarding your loan.

With specialty credit, you'll receive financing or credit lines based on near-term assets. This might be hotel equipment or invoices from accounts receivable. The idea is these backings are more liquid than what's needed in traditional lending.

Both traditional and specialty financing are appropriate vehicles for hotels depending on your capital needs. However, the larger and more established your hotel franchise, the more specialty lending could make ongoing sense. This is because large hotels manage significant account receivables operations. 

Consider the amount of credit card transactions that must be administered. Also, hospitality-related vendor operations happening within the establishment. The larger your AR activities, the more something like AR-based asset lending and similar specialty lending might benefit you.”

Step 5: Do your paperwork.

There are many important legal, regulatory, and insurance requirements to fulfill in order to establish any new business. Your hotel business is no different. 

Consult with your legal, insurance, accounting, and operations teams to determine the requirements for your location. At a minimum, you’ll need to set up a business structure and get business insurance. You will also likely need building or renovation permits, hotel licensing, and licensing for serving food and alcoholic beverages. There will also be a number of health and safety requirements as you complete your building or renovation process. 

All of this paperwork is not the motivating factor for getting into the hospitality industry, but it is important. Work with your team to check requirements at the local, state, and federal level. Additionally, keep on top of the process throughout so you don’t have to repair costly mistakes later.

Modern hotel management begins here

Step 6: Hire and train your hotel team.

A business is only as good as the team members that contribute to its success. By hiring great employees at all levels, you’ll set yourself up to deliver value to your guests and become a market leader.

Many hotels opt to hire for executive and departmental positions first, setting the tone and direction. These leaders can then identify what they want to see within their teams and how many staff members they need. Each team should identify the roles and skills they’re looking for, as well as developing a plan to reach and source great new hires.

Make sure that your application and interview processes are easy for candidates so that you don’t introduce needless friction. Find ways to communicate your core mission, values, and approach to this new business throughout the hiring process. This will help you attract candidates who share your vision.

Once you’ve hired a great team, take the time to onboard and train them. This is an incredibly important step that will help everyone in the long run. Any employees who will interact with guests should receive extra training on  customer service  and guest relations so that they’re ready to lend a helping hand, regardless of whether it’s in their job descriptions.

Focus from the beginning on becoming the employer of choice in your market. You’ll attract a stellar team that’s ready to help you become a market leader.

Step 7: Draft a marketing plan.

You’re now ready to share your hotel concept with the world. Well in advance of opening, you’ll need to spread the word and set yourself up for a profitable launch. 

Your  hotel marketing plan  is an important part of your overall business strategy. It guides your decision-making on decor, daily operations, communications, customer service, and more. 

Think back to the target audience that you identified in your market research. Using that initial audience, you can now conduct more in-depth customer research to determine who your customers are. Also, where you’ll find them, how you’ll communicate with them, and how they define value.

Hotel marketing made simple

Hotel marketing expert and Co-Founder of Saffron Key, Ben Weagraff, advises that there is no one-size-fits-all plan for new hotel businesses.

“There’s a number of strategies that can work very well,” he  told SiteMinder . “But they depend on the hotel itself; its digital properties (including  website ,  email relationships , the strength of  social media channels ) and what exactly the hotel is trying to do.”

He goes on to note: “However, generally these techniques present a good repeatable path towards driving high-value customers. The greatest thing about  content marketing  is that it is low-cost, measurable, repeatable, and it builds upon itself. Once the foundation is in place, customers roll in at increasing rates.”

If you’re looking for ideas for inspiration, check out  Marriott’s marketing strategy . Also, be sure to check out all of  Cvent's hotel marketing solutions  to help guide you throughout the process.

Step 8: Launch your hotel business.

At this point, you’ve put in the work to open a profitable and high-quality hotel business for your market. You’ve got the plan and the team to make your vision a reality. Now it’s time to launch.

The goal of your launch is of course to introduce your hotel to guests. But it’s also a great opportunity to introduce yourself to the local community, key stakeholders, influencers, and potential partners. Put your best foot forward with these audiences by planning a  grand opening event  that reflects your mission and values.

Use  event planning and diagramming tools  to create your layouts, collaborate with vendors, and assign tasks to team members. As long as you focus on building relationships with your community, investors, and potential clients, your grand opening will be a success. 

Now you know how to start a hotel business using proven strategies from across the industry.

Now that you know how to start a hotel business, it's time to start thinking about reputation. Read on for  hotel reputation management tips  every hotelier should know.

Cvent is a leading meetings, events, and hospitality technology provider with more than 4,500 employees and nearly 21,000 customers worldwide.

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Motel Business Plan Template & Guidebook

Are you interested in starting a motel business but don't know where to start? Look no further than the #1 Motel Business Plan Template & Guidebook. This comprehensive guide offers everything you need to create a solid business plan for your motel, from financial planning to networking and marketing strategies. Whether you're just starting out or already have experience in the hospitality industry, this guide will help you take your motel to the next level. With the #1 Motel Business Plan Template & Guidebook, success is just around the corner!

Get worry-free services and support to launch your business starting at $0 plus state fees.

• How to Start a Profitable Motel Business [11 Steps]

How to Write a Motel Business Plan in 7 Steps:

1. describe the purpose of your motel business..

The first step to writing your business plan is to describe the purpose of your motel business. This includes describing why you are starting this type of business, and what problems it will solve for customers. This is a quick way to get your mind thinking about the customers’ problems. It also helps you identify what makes your business different from others in its industry.

It also helps to include a vision statement so that readers can understand what type of company you want to build.

Here is an example of a purpose mission statement for a motel business:

Our mission at ABC Motel is to provide a safe and clean lodging experience for travelers of all backgrounds, at an affordable price. We strive to make our customers feel welcome and comfortable with exceptional customer service and quality amenities. We are committed to exceed customer expectations and create a memorable stay for each of our guests.

2. Products & Services Offered by Your Motel Business.

The next step is to outline your products and services for your motel business. 

When you think about the products and services that you offer, it's helpful to ask yourself the following questions:

• What is my business?
• What are the products and/or services that I offer?
• Why am I offering these particular products and/or services?
• How do I differentiate myself from competitors with similar offerings?
• How will I market my products and services?

You may want to do a comparison of your business plan against those of other competitors in the area, or even with online reviews. This way, you can find out what people like about them and what they don’t like, so that you can either improve upon their offerings or avoid doing so altogether.

3. Build a Creative Marketing Stratgey.

If you don't have a marketing plan for your motel business, it's time to write one. Your marketing plan should be part of your business plan and be a roadmap to your goals. 

A good marketing plan for your motel business includes the following elements:

Target market

• Who is your target market?
• What do these customers have in common?
• How many of them are there?
• How can you best reach them with your message or product?

Customer base 

• Who are your current customers? 
• Where did they come from (i.e., referrals)?
• How can their experience with your motel business help make them repeat customers, consumers, visitors, subscribers, or advocates for other people in their network or industry who might also benefit from using this service, product, or brand?

Product or service description

• How does it work, what features does it have, and what are its benefits?
• Can anyone use this product or service regardless of age or gender?
• Can anyone visually see themselves using this product or service?
• How will they feel when they do so? If so, how long will the feeling last after purchasing (or trying) the product/service for the first time?

Competitive analysis

• Which companies are competing with yours today (and why)? 
• Which ones may enter into competition with yours tomorrow if they find out about it now through word-of-mouth advertising; social media networks; friends' recommendations; etc.)
• What specific advantages does each competitor offer over yours currently?

Marketing channels

• Which marketing channel do you intend to leverage to attract new customers?
• What is your estimated marketing budget needed?
• What is the projected cost to acquire a new customer?
• How many of your customers do you instead will return?

Form an LLC in your state!

4. Write Your Operational Plan.

Next, you'll need to build your operational plan. This section describes the type of business you'll be running, and includes the steps involved in your operations. 

In it, you should list:

• The equipment and facilities needed
• Who will be involved in the business (employees, contractors)
• Financial requirements for each step
• Milestones & KPIs
• Location of your business
• Zoning & permits required for the business

What equipment, supplies, or permits are needed to run a motel business?

• Motel licenses and permits
• Reservation software
• Front desk computer system
• Desk supplies
• Cleaning supplies
• Linens and towels
• Credit card machine and POS system
• Guest room furniture and fixtures
• "Do not disturb" door hangers or signs

5. Management & Organization of Your Motel Business.

The second part of your motel business plan is to develop a management and organization section.

This section will cover all of the following:

• How many employees you need in order to run your motel business. This should include the roles they will play (for example, one person may be responsible for managing administrative duties while another might be in charge of customer service).
• The structure of your management team. The higher-ups like yourself should be able to delegate tasks through lower-level managers who are directly responsible for their given department (inventory and sales, etc.).
• How you’re going to make sure that everyone on board is doing their job well. You’ll want check-ins with employees regularly so they have time to ask questions or voice concerns if needed; this also gives you time to offer support where necessary while staying informed on how things are going within individual departments too!

6. Motel Business Startup Expenses & Captial Needed.

This section should be broken down by month and year. If you are still in the planning stage of your business, it may be helpful to estimate how much money will be needed each month until you reach profitability.

Typically, expenses for your business can be broken into a few basic categories:

Startup Costs

Startup costs are typically the first expenses you will incur when beginning an enterprise. These include legal fees, accounting expenses, and other costs associated with getting your business off the ground. The amount of money needed to start a motel business varies based on many different variables, but below are a few different types of startup costs for a motel business.

Running & Operating Costs

Running costs refer to ongoing expenses related directly with operating your business over time like electricity bills or salaries paid out each month. These types of expenses will vary greatly depending on multiple variables such as location, team size, utility costs, etc.

Marketing & Sales Expenses

You should include any costs associated with marketing and sales, such as advertising and promotions, website design or maintenance. Also, consider any additional expenses that may be incurred if you decide to launch a new product or service line. For example, if your motel business has an existing website that needs an upgrade in order to sell more products or services, then this should be listed here.

7. Financial Plan & Projections

A financial plan is an important part of any business plan, as it outlines how the business will generate revenue and profit, and how it will use that profit to grow and sustain itself. To devise a financial plan for your motel business, you will need to consider a number of factors, including your start-up costs, operating costs, projected revenue, and expenses. 

Here are some steps you can follow to devise a financial plan for your motel business plan:

• Determine your start-up costs: This will include the cost of purchasing or leasing the space where you will operate your business, as well as the cost of buying or leasing any equipment or supplies that you need to start the business.
• Estimate your operating costs: Operating costs will include utilities, such as electricity, gas, and water, as well as labor costs for employees, if any, and the cost of purchasing any materials or supplies that you will need to run your business.
• Project your revenue: To project your revenue, you will need to consider the number of customers you expect to have and the average amount they will spend on each visit. You can use this information to estimate how much money you will make from selling your products or services.
• Estimate your expenses: In addition to your operating costs, you will need to consider other expenses, such as insurance, marketing, and maintenance. You will also need to set aside money for taxes and other fees.
• Create a budget: Once you have estimated your start-up costs, operating costs, revenue, and expenses, you can use this information to create a budget for your business. This will help you to see how much money you will need to start the business, and how much profit you can expect to make.
• Develop a plan for using your profit: Finally, you will need to decide how you will use your profit to grow and sustain your business. This might include investing in new equipment, expanding the business, or saving for a rainy day.

Frequently Asked Questions About Motel Business Plans:

Why do you need a business plan for a motel business.

A business plan is an essential document when starting a motel business. It helps identify the direction of your business, provides a detailed roadmap that outlines the steps necessary to reach your objectives, and helps secure financing. Additionally, it serves as a tool to measure progress and provides a clear vision of the future. A business plan can also help identify any potential roadblocks and develop strategies for mitigating them.

Who should you ask for help with your motel business plan?

A professional business consultant or mentor would be the ideal person to ask for help with a motel business plan. An accountant or lawyer may also be consulted to ensure that the business plan is compliant with all applicable legal and financial regulations.

Can you write a motel business plan yourself?

Yes, it is possible to write a motel business plan yourself, though it may require a substantial amount of time and research. A business plan should include an executive summary, market analysis, competitive analysis, financial projections and a detailed description of the business objectives, products or services and strategies. Additionally, research into local zoning laws, potential customer base and other relevant topics may be required to ensure the plan is comprehensive. There are also many resources available online to help with writing a motel business plan.

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I'm Nick, co-founder of newfoundr.com, dedicated to helping aspiring entrepreneurs succeed. As a small business owner with over five years of experience, I have garnered valuable knowledge and insights across a diverse range of industries. My passion for entrepreneurship drives me to share my expertise with aspiring entrepreneurs, empowering them to turn their business dreams into reality.

Through meticulous research and firsthand experience, I uncover the essential steps, software, tools, and costs associated with launching and maintaining a successful business. By demystifying the complexities of entrepreneurship, I provide the guidance and support needed for others to embark on their journey with confidence.

From assessing market viability and formulating business plans to selecting the right technology and navigating the financial landscape, I am dedicated to helping fellow entrepreneurs overcome challenges and unlock their full potential. As a steadfast advocate for small business success, my mission is to pave the way for a new generation of innovative and driven entrepreneurs who are ready to make their mark on the world.

How to Start a Hotel

Advertiser Disclosure

How To Start Your Own Hotel Business

If you’re looking to start a new hotel business, you’ve come to the right place since we’re going to show you exactly how to do it. We’ll start by sharing how to open a hotel step-by-step, then answer some frequently asked questions about running a hospitality industry business and being a successful hotel owner.

Importantly, a critical step in starting a hotel is to complete your hotel’s business plan. To help you out,   you should download Growthink’s Ultimate Hotel Business Plan Template here.

Download our Ultimate Business Hotel Plan Template here

15 Steps to Start a Hotel Business:

• Choose the Name for Your Hotel
• Develop Your Hotel Business Plan
• Choose the Legal Structure for Your Hotel
• Secure Startup Funding for Your Hotel (If Needed)
• Find a Location to Buy or Start Building Your Hotel
• Register Your Hotel with the IRS
• Open a Business Bank Account
• Get a Business Credit Card
• Get the Required Business Licenses and Permits
• Get Business Insurance for Your Hotel
• Buy or Lease the Right Hotel Business Equipment
• Develop Your Hotel Marketing Materials
• Purchase and Setup the Software Needed to Run Your Hotel
• Hire and Train Your Hotel Staff
• Open for Business

1. Choose the Name for Your Hotel

The first step to starting a successful hotel business is to choose your hotel’s name.  

This is a very important choice since your hotel name is your brand and will last for the lifetime of your hotel. Ideally, you choose a name that is meaningful and memorable. Here are some tips for choosing a name for your hotel business:

• Make sure the name is available. Check your desired name against trademark databases and your state’s list of registered business names to see if it’s available. Also check to see if a suitable domain name is available.
• Keep it simple. The best names are usually ones that are easy to remember, pronounce and spell.
• Think about marketing. Come up with a name that reflects the desired hotel identity and/or focus of your hotel.

2. Develop Your Hotel Business Plan

One of the most important steps in how to start a hotel business is to develop a hotel business plan . The process of creating your hotel business plan ensures that you fully understand your market and your business strategy. The plan also provides you with a roadmap to follow and if needed, to present to potential investors for your business.

To enhance your planning process, incorporating insights from a  sample hotel business plan  can be beneficial. This can provide you with a clearer perspective on industry standards and effective strategies, helping to solidify your own business approach.

Your hotel business plan should include the following sections:

• Executive Summary – this section should summarize your entire business plan so readers can quickly understand the key details of your hotel.
• Company Overview – this section tells the reader about the history of your hotel and what type of hotel you operate. For example, are you a boutique hotel, a bed and breakfast, or an inn?
• Industry Analysis – here you will document key information about the hotel industry. Conduct market research and document how big the industry is and what trends are affecting it.
• Customer Analysis – in this section, you will document who your ideal or target customers are and their demographics. For example, what is their income level? What amenities do they look for in a hotel? What do they find important when choosing where to stay?
• Competitive Analysis – here you will document the key direct and indirect competitors you will face and how you will build competitive advantage.
• Product : Determine and document what products/services you will offer. 
• Prices : Document the prices of your products/services.
• Place : Determine where your business will be located and how that location will help you increase sales.
• Promotions : Determine what promotional methods you will use to attract guests to your hotel.
• Operations Plan – here you will determine the key processes you will need to run your day-to-day operations. You will also determine your staffing needs. Finally, in this section of your plan, you will create a projected growth timeline showing the milestones you hope to achieve in the coming years.
• Management Team – this section details the background of your hotel’s management team.
• What startup costs will you incur?
• How will your hotel make money?
• What are your projected sales and expenses for the next five years?
• Do you need to raise funding to launch your hotel?

3. Choose the Legal Structure for Your Hotel

Next you need to choose a legal structure for your hotel and register it and your business name with the Secretary of State in each state where you operate your business.

Below are the five most common legal structures:

1) Sole Proprietorship

A sole proprietorship is a business entity in which the owner of the hotel and the business are the same legal person. The owner of a sole proprietorship is responsible for all debts and obligations of the business. There are no formalities required to establish a sole proprietorship, and it is easy to set up and operate. The main advantage of a sole proprietorship is that it is simple and inexpensive to establish. The main disadvantage is that the owner is liable for all debts and obligations of the business.

2) Partnerships

A partnership is a legal structure that is popular among small businesses. It is an agreement between two or more people who want to start a hotel business together. The partners share in the profits and losses of the business. 

The advantages of a partnership are that it is easy to set up, and the partners share in the profits and losses of the business. The disadvantages of a partnership are that the partners are jointly liable for the debts of the business, and disagreements between partners can be difficult to resolve.

3) Limited Liability Company (LLC)

A limited liability company, or LLC, is a type of business entity that provides limited liability to its owners. This means that the owners of an LLC are not personally responsible for the debts and liabilities of the business. The advantages of an LLC for a hotel business include flexibility in management, pass-through taxation (avoids double taxation as explained below), and limited personal liability. The disadvantages of an LLC include lack of availability in some states and self-employment taxes.

4) C Corporation

A C Corporation is a business entity that is separate from its owners. It has its own tax ID and can have shareholders. The main advantage of a C Corporation for a hotel business is that it offers limited liability to its owners. This means that the owners are not personally responsible for the debts and liabilities of the business. The disadvantage is that C Corporations are subject to double taxation. This means that the corporation pays taxes on its profits, and the shareholders also pay taxes on their dividends.

5) S Corporation

An S Corporation is a type of corporation that provides its owners with limited liability protection and allows them to pass their business income through to their personal income tax returns, thus avoiding double taxation. There are several limitations on S Corporations including the number of shareholders they can have among others.

Once you register your hotel, your state will send you your official “Articles of Incorporation.” You will need this among other documentation when establishing your banking account (see below). We recommend that you consult an attorney in determining which legal structure is best suited for your company.

4. Secure Startup Funding for Your Hotel (If Needed)

In developing your hotel business plan, you might have determined that you need to raise funding to launch your business. Determining whether you want to purchase and renovate or build a new structure will majorly impact when you can open your new hotel and the amount of funding you will need.

If so, the main sources of funding for a hotel to consider are personal savings, family and friends, credit card financing, bank loans, crowdfunding and angel investors. Angel investors are individuals who provide capital to early-stage businesses. Angel investors typically will invest in a hotel that they believe has high potential for growth.

5. Find a Location to Buy or Start Building

Having the right space is important for your hotel and choosing the best location can have a major impact on your business.

To find the right space, consider:

• How many rooms will your hotel have?
• What are the zoning requirements for hotels in your area?
• Is the local market a good match for your target customers?

If you plan to build a new structure for your hotel, you will also need to work with architects to establish a timeline and determine construction costs.

6. Register Your Hotel with the IRS

Next, you need to register your business with the Internal Revenue Service (IRS) which will result in the IRS issuing you an Employer Identification Number (EIN).

Most banks will require you to have an EIN in order to open up an account. In addition, in order to hire employees, you will need an EIN since that is how the IRS tracks your payroll tax payments.

Note that if you are a sole proprietor without employees, you generally do not need to get an EIN. Rather, you would use your social security number (instead of your EIN) as your taxpayer identification number.

7. Open a Business Bank Account

It is important to establish a bank account in your hotel’s name. This process is fairly simple and involves the following steps:

• Identify and contact the bank you want to use
• Gather and present the required documents (generally include your company’s Articles of Incorporation, driver’s license or passport, and proof of address)
• Complete the bank’s application form and provide all relevant information
• Meet with a banker to discuss your business needs and establish a relationship with them

8. Get a Business Credit Card

You should get a business credit card for your hotel to help you separate personal and business expenses.

You can either apply for a business credit card through your bank or apply for one through a credit card company.

When you’re applying for a business credit card, you’ll need to provide some information about your business. This includes the name of your business, the address of your business, and the type of business you’re running. You’ll also need to provide some information about yourself, including your name, Social Security number, and date of birth.

Once you’ve been approved for a business credit card, you’ll be able to use it to make purchases for your hotel. You can also use it to build your credit history which could be very important in securing loans and getting credit lines for your business in the future.

9. Get the Required Business Licenses and Permits

Every state, county and city has different business license and permit requirements.

Nearly all states, counties and/or cities have license requirements for hotel, including:

• Business License :  A general business license is required for all businesses, including hotels. The cost of a business license varies depending on the state, county and/or city in which the hotel is located.
• Occupancy Permit :   An occupancy permit, also called a Certificate of Occupancy, is required before you can open your hotel to the public.
• Alcohol Licenses :  If you plan to serve alcohol at your hotel, you will need to obtain the appropriate license from the state in which your hotel is located.
• Sales Tax License :  You will need to obtain a sales tax license in order to collect sales tax from your customers.
• Food Service License : If you plan to serve food at your hotel, you will need to obtain a food service license.
• Fire Department Approval :  Most hotels are required to have approval from the local fire department before they can open to the public.

Be sure to check local government guidelines to determine which licenses and permits hotels are required to obtain in your area.

10. Get Business Insurance for Your Hotel

The right business insurance is important to protect your new hotel. Business insurance policies that you should consider for your hotel include:

• General Liability Insurance: This insurance protects your hotel business from third-party claims of bodily injury, property damage, and personal injury that occur on your premises or are caused by your business.
• Workers’ Compensation Insurance: If you have employees, you may be required to have workers’ compensation insurance. This insurance protects your employees if they are injured or become ill as a result of their job.
• Property Insurance: This insurance protects your hotel property from loss or damage due to fire, theft, vandalism, and other covered events.

11. Buy or Lease the Right Hotel Business Equipment

Beyond the furniture and equipment you will need in each room, opening a hotel will also require some business equipment, including:

• A reservation system to take bookings
• A property management system (PMS) to manage rooms and rates
• A booking engine if you want to accept online bookings
• Rooms keys and/or access cards
• Reception furniture

12. Develop Your Hotel Business Marketing Materials

Marketing materials will be required to attract and retain customers to your hotel.

The key marketing materials you will need are as follows:

• Website : Likewise, a professional hotel website provides potential customers with information about the services you offer, your company’s history, and contact information. Importantly, remember that the look and feel of your website will affect how customers perceive you.
• Social Media Accounts : establish social media accounts in your company’s name. Accounts on Facebook, Twitter, LinkedIn and/or other social media networks will help customers and others find and interact with your hotel.
• Logo : Spend some time developing a good logo for your hotel. Your logo will be printed on company stationery, business cards, marketing materials and so forth. The right logo can increase customer trust and awareness of your brand.

13. Purchase and Setup the Software Needed to Run Your Hotel

Most hotel businesses need a few types of software to run successfully.

First, you will need a PMS. This is software that helps you manage reservations, check-ins, and other aspects of your operations. Some popular options include Cloudbeds, Oracle Hospitality, and HOTELTIME.

You will also want to have a customer relationship management (CRM) system. This software helps you track interactions with customers, manage customer data, and market to potential guests. Many hotels use programs such as Experience Hotel, Oracle NetSuite, and Salesforce.

Additionally, you need to use accounting software such as Quickbooks or M3 to manage your hotel’s expenses.

Research the software that best suits your needs, purchase it, and set it up.

14. Hire & Train Your Hotel Staff

The quality of your hotel staff can make or break your business. You need to take the time to find, interview, and hire the right people.

Start by writing job descriptions for the positions you need to fill. Then, post the job openings online and in places where potential employees are likely to see them. Once you have a pool of candidates, conduct phone and in-person interviews to narrow down your choices.

Finally, once you have selected the employees you want to hire, provide training on your hotel’s policies and procedures. Additionally, give them a tour of the property and introduce them to other staff members. It helps to build out a strong sales team to prospect new business and nurture customer loyalty.

15. Open for Business

You are now ready to host a grand opening for your hotel. Make sure to include your grand opening event in your marketing plan and promote your hotel launch to the right target audience.

If you follow the steps above, you should be in a great position to build a successful business and know everything you need about how to start a hotel business. Below are answers to frequently asked questions that might further help you.

How to Finish Your Hotel Business Plan in 1 Day!

How to open a hotel faqs, is it hard to start a hotel.

Starting any business has its challenges and opening a hotel does require some planning and preparation. The biggest challenges in owning a hotel are securing funding for your new hotel, finding a great location to buy or build, and setting up systems that help your hotel achieve operational efficiency.

As with starting any business, having a good business idea, doing market research, and getting support from experts in the industry increase your chance of success.

How Can I Own a Hotel With No Experience?

If you have no experience in the hotel industry, you will need to find a good hotel management company. A hotel management company can help you with all aspects of starting and running your hotel. They will also be able to provide you with the necessary training.

What Types of Hotels Are Most Profitable?

There is no one-size-fits-all answer to this question. The type of hotel that is most profitable will depend on the location of your hotel and what is of value to the market in that area. A boutique hotel might be a huge success in a small city, while a family-friendly hotel could make more money when placed near a theme park. It is important to do market research to determine which type of hotel can be a profitable business in your area.

How Much Does It Cost To Start a Hotel?

Again, there is no one-size-fits-all answer to this question. The cost of starting a hotel will depend on a number of factors, such as the location of your hotel, the type of hotel, and the level of service you offer. You will also have different upfront costs depending on whether you are building a new hotel or purchasing an existing structure.

With regards to building costs or buying an existing property, this varies tremendously based on the type of hotel (e.g., budget vs luxury) and hotel size (e.g., 5 rooms vs 500 rooms).

How Does a Hotel Make Money?

A hotel makes money by charging guests for the use of the hotel's facilities. The amount charged will depend on the type of hotel, the location, and the level of service offered. Beyond charging for guest rooms, hotels may also make money from additional amenities, such as in-house restaurants, room service, and high-speed internet access.

Is Owning a Hotel Profitable?

Owning a hotel business can be profitable, but the amount of profit is highly-dependent on a number of factors, such as the location of your hotel. You can improve the profitability of your hotel by offering a higher level of service, attracting more guests, and keeping your expenses low.

How Much Does a Hotel Owner Make?

Hotel owners, operators and executives receive varied pay amounts based on the success of their hotel. According to Glassdoor, the typical Starwood Hotels & Resorts Vice President salary is $244,472, which is 45% above the national average.

What Are the Key Financial Metrics and Costs in the Hotel Market?

The key financial metrics in the hotel market are as follows:

Industry profit is measured as earnings before interest and taxes. Industry profits have averaged 15.5% of sales in recent years.

The industry’s major expenses are purchases and cost of sales, such as bedding and room supplies. Many hotels also provide meals and liquor, either in individual rooms or in separate restaurants or dining areas.

Last year, purchases were estimated to account for 29.9% of an average operator’s revenue.

Labor is required in many aspects of hotel management, from front-of-house activities, such as front desk, concierge and related activities, to all back-of-house activities, including general management, accounting, marketing, room cleaning and servicing the kitchens, bars and restaurants.

Many hotel jobs have a low skill and training requirement, and employees can be hired on a part-time or casual basis. Because of this practice, many hotels have high staff turnover.

Therefore, there is a constant need for recruitment and training, which can be costly. Some hotel owners and operators have outsourced part of their staff services to specialist staff-recruitment agencies to lower recruitment costs.

Last year, industry wages accounted for approximately 25.7% of total industry revenue.

Rent and Utilities

Rent and utilities on average comprise 7.6% of hotel revenue.

Other Expenses

Marketing expenses and royalty fees are another significant cost for those industry participants that operate on a franchise basis. Franchisees typically pay an annual fee of 4.0% to 6.0% of total revenue.

Other major operational expenses include repairs and maintenance, promotional costs, commission paid to agents, bookings and internet fees, accounting and legal costs, motor vehicle expenses, stationery and printing, insurance and other administrative and overhead costs.

Why Do Hotels Fail?

Hotels can fail for a number of reasons, including high expenses and low occupancy rates. Hotels can also fail due when owners misunderstand the market in an area and target the wrong customers or fail to do adequate research into hotel industry trends that impact their business.

Often, hotels begin to struggle due to poor management decisions that negatively impact the guest experience. Closely monitoring your spending and making sure your staff is performing well both go a long way toward making your hotel succeed.

How Big Is the Hotel Industry?

According to IbisWorld, there are 74,372 hotels, and the hotel industry generated $166.5 billion in revenue in the United States alone last year. This represents an annual growth rate of 4.7% over the past 5 years.

Industry profits were $26.0 billion, and wages paid to hotel employees totaled $42.7 billion.

What Are the Key Segments of the Hotel Market?

 A hotel is an establishment that provides lodging and, often times, meals and other services for travelers and other paying guests. A motel, on the other hand, provides lodging for motorists in rooms usually having direct access to an open parking area.

A particular hotel or motel can be classified by a number of characteristics, including whether it provides full or limited service, whether or not it is located in a metropolitan area, the state or region in which it is located, its price or rate level, the number of rooms, and whether it is independent or part of a chain operation.

Hotels and motels can also be segmented by room price rates. The establishments with room rates in the highest 30 percentile that are located in local or metropolitan markets are classified as upscale or luxury. The middle 30 percentile is classified as mid-priced, and the lowest 40 percentile as either economy or budget.

Overall, sales from hotels account for 87.4% of industry revenue and 82.0% of industry employment, though they account for only 44.0% of industry establishments.

Hotels that consist of 25 or more rooms provide 83.6% of industry revenue (with 62.7% of industry revenue coming from guest room rentals, 12.5% coming from food and alcohol sales, 4.2% coming from conference and meeting rooms and 4.2% coming from other charges), while hotels that offer fewer than 25 rooms only constitute 3.8% of industry revenue.

Motels provide about 12.6% of industry revenue. The relative proportion of revenue from each of these segments has been relatively stable over the past five years, although motels experienced some growth at the expense of higher-priced hotels during the recession.

What External Factors Affect the Hotel Market?

A number of factors affect the performance of the hotel industry. These drivers include:

• Domestic Trips By US Residents : Trends in domestic travel, especially for business travellers, and the total nights spent away from home directly affect demand for accommodation. As the number of trips made by US citizens rises, demand for hotels and motels to house them increases.
• Consumer Confidence Index : Changes in consumer confidence influence decisions that individuals make concerning expenditure on entertainment and traveling, particularly during a recession.
• Consumer Spending : Consumer spending levels have a direct effect on travel demand. When consumers are spending more overall, they are more likely to spend some of their money on travel and accommodations.
• Inbound Trips By Non-US Residents : Trends in international visitor arrivals and their lengths of stay influence demand for accommodation. A rise in inbound trips positively affects demand for hotels and motels.

Who Are the Key Competitors in the Hotel Market?

 As specified above, there are 74,372 hotels in the United States.

The market leaders (in terms of market share) include Hilton Worldwide Holdings Inc. (13.7%), Marriott

International Inc. (13.5%) and InterContinental Hotels Group PLC (7.5%).

The rest of the market is comprised of many smaller players.

Who Stays in Hotels?

Recent demographics show that totel guests are comprised of: 

• Domestic leisure travelers: 48.5%
• Business travelers: 24.0%
• International leisure travelers: 14.0%
• Meetings, events and incentive travelers: 13.5%

What Are the Keys to Launching a Successful Hotel?

Starting a hotel requires careful choice of a location and strategy, a business plan, access to considerable financial resources, and a customer service mindset.

1) Location and Opportunity

The location for your hotel is highly linked with the opportunity that you feel there is for your hotel. In the right location, where competitors are not fulfilling all customer needs, a hotel can thrive. However, in a beautiful neighborhood that happens to have heavy competition from existing hotels, success may not be so forthcoming. Likewise, if the neighborhood leaves too much to be desired, you may not be able to price the rooms low enough to encourage travelers to stay at your hotel, even if you are within walking distance of key attractions.

2) Strategy

The next step is to know how customers will answer the question “why my hotel?” How will you tailor your services to the customers you want to attract, whether they are families with kids, couples on romantic vacations, businesspeople, or international tourists? Consider the combination of amenities, atmosphere, location, and services that will be right for your customers. Always keep in mind that strategy means making tradeoffs – it is almost impossible to be everything to everyone and succeed. You might have to forgo a certain customer target market in order to make your service offering perfect for your most desired customers.

3) Planning

A hotel business plan is necessary not only for you to think through how you will take on the opportunity, but for you to convince any investor or lender that you have the ability to do so. No savvy investor will be attracted by a lack of planning. There is no excuse to not create a plan with the wealth of information available on writing business plans and even business plan templates tailored to the hotel business sector.

4) Fundraising

Whether you buy an existing hotel, build one from scratch, or renovate a building into a hotel, you will need millions of dollars to invest. Assuming you do not have this money, you will need to seek bank loans and/or angel investment in your hotel. As you will be working with considerable assets, dependable and experienced legal and accounting help is a must as you create deals with investors.

5) Hospitality Mindset

Finally, you must have an ingrained sense of how you want your guests to be treated so that you can instill this mindset in your top management and they can, in turn, teach this to the staff. Staying at a hotel can be stressful and uncomfortable, and guests demand the highest attention to their needs or they will have no problem complaining loudly and publicly. If employees sense you have higher motives than customer satisfaction, customer service may fall by the wayside and your hotel business may fail or never take off in the first place.

The first step to starting a hotel is to develop your hotel business plan . Growthink provides products and services to help you develop a professional business plan and turn your dream into reality.

Where Can I Download a Hotel Business Plan PDF?

You can download our hotel business plan PDF template here. This is a business plan template you can use in PDF format.

Additional Resources in the Hotel Market

For additional information on the hotel market, consider these industry resources:

• American Hotel & Lodging Association: ahla.com
• Hospitality Net: hospitalitynet.org
• Hotel Mavericks: www.hotelmavericks.com

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.

Click here to see how Growthink’s professional business plan consultants can create your business plan for you.

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Motel Business Plan Template

SEPT.08, 2021

Motel business plan for starting your own business

One of the businesses that cannot go out of business in the foreseeable future is that of a motel. As long as people keep traveling, they’ll need to stay somewhere and that means they’ll need motels. Motel business plans are one of the first requirements for starting this business. We’ll tell you in detail how to write a business plan for a motel in this post. This strategic business plan will talk about what type of business is a motel and how you can run it in a profitable manner.

Let’s have a detailed look at this business plan for hotel .

Executive Summary

2.1 the business.

Wanderer’s Inn will be a registered motel on Interstate 91 100 kilometers east of Austin, Texas. It will provide housing and lodging services for the tourists coming to the area or traveling on the road. If you want to know how to buy a motel or start one of your own, we’ll tell you all the details about it.

2.2 Management of Motel

One of the most important parts of motel ownership is motel management. This part of the business plan will talk about that. As this motel is not a very big one, the management will not be a very complicated one. All we need to have is a manager to run the day to day affairs of the business and two receptionist to welcome the customers.

2.3 Customers of Motel

When writing a business plan for buying a franchise , it is important to have a clear idea of the customers of the business. The customers of motel business plan can be from a number of different categories and market segments, and it is of paramount important to have service and products to serve all of them in order to run the business successfully.

The customers we will be entertaining at Wanderer’s Inn will be the following:

• Travelers coming to dine in.
• Travelers who need a room to stay.
• Locals who want to dine.
• Truck drivers who need to stay.

2.4 Business Target

Just like a resort business plan , it is important to have a clear business target before we start the motel business plan . The goal of this business is to make money, of course. However, we cannot go around telling that to the customers, it ruins the image of the business.

The targets of Wanderer’s Inn will be to:

• Provide best-in-class dining and resting services to the customers.
• Expand the services to other locations.
• Achieve more than 95% customer satisfaction score.
• Outcompete any of the competition.

Company Summary

3.1 company owner.

The owner of Wanderer’s Inn will be Whip Whittaker. Whip has worked as a hotel manager for more than half his life. He has a lot of experience in running such establishments. He also has a lot of connection in the industry and can come up with the best team to run the business. He knows how to run a motel.

3.2 Why the Motel is being started?

The reason Whip has acquired this restaurant motel business plan and is going to start this business is that he stumbled upon a duffle bag on the railway track and it happened to have a million dollars in it. The very next thing he did was to download a motel business plan sample pdf as his dream to start his own motel business in USA could finally be realized.

3.3 How the Motel Business will be started?

Step1: Making a Feasibility  

The first thing you need to do to start any business is to make a feasibility report. Just to be clear, you can start a business skipping this step, by all means. However, that just exponentially increases your chances of losing the money you invest in the business, making that not the smartest choice. So Whip conducted a feasibility study and found out that there indeed is an opportunity to start a motel in the said location.

Step2: Developing a Brand

The next thing to do in order to establish a profitable motel is to make a brand around the name. It is important because people believe in brands the most and if we plan to expand the business to multiple locations in the future, having a brand is immensely helpful.

Step3: Establishing the Motel    

Once the work on branding has started, a date for the opening of the winery will be given and the work on making the winery will start. The winery’s construction will be started and it will be built as soon as possible.

Step4: Advertisement

No business can be successful if it is not known to the people who are going to be the customers. In order to make the business successful, we will advertise the business using all advertisements available in the area. All measures will be taken to make sure that the people travelling in the area know Wanderer’s Inn and stop by to buy our services.

If you need a complete business plan for buying a motel, it is important to have a clear view of the services the business will be providing. Wanderer’s Inn will provide all the services on and off the premises to make sure that no part of the business is untapped.

To give you an idea of what services a motel can provide, this free business plans for motels has some of the services the business can provide. This is just a starting point; you can further expand on it to include more services as well.

Here are some of the services we are making a part of this motel business plan pdf.

Hotel Rooms

The main service of the motel will be to provide hotel rooms for weary travelers who are travelling to unknown destinations.

Dining Services

Dining services will be provided to people who are staying in the hotel or just stopping by to dine in.

Off-Premises Catering

The people in the area who need catering and dining services for functions and parties off the premises can also hire our services.

Car Workshop

As most of the customers of the motel are travelling on a long trip, we will provide car workshop services for the ones who need.

Marketing Analysis of Motel

The next step needed to start a motel business plan successfully is to run a proper and complete marketing analysis of the business.

This business plan motel has a detailed marketing analysis of the business. This is because we think this is the most important part of motel hotel business plan. Even if you need a business plan for motel purchase, you need to run a marketing analysis so that the business can return you a profit according to your expectations.

5.1 Market Trends

Once your business hotel motel plan sample has made marketing trends of the business a part of the document so that you can have an idea of the business you are about to start. If we have a look at the trends of the motel business, it has expanded a lot in the past years. Bulk of the expand of this field can be attributed to the increase in interstate travel.

5.2 Marketing Segmentation

Now is the time that we discuss the marketing segmentation of the business. Customers of the business we are going to run will be divided into the following segments.

5.2.1 Travelers

People who are travelling in the area and want a room to stay will be the largest market segment for us.

5.2.2 Locals

We will also provide the services to the locals.

5.2.3 Workshop Customers

People who want car workshop services will also be one of the market segments for us.

5.2.4 Catering Customers

People who need off-premises catering services will be yet another market segment for the business.

5.3 Business Target

• To establish credible name in the motel industry in the area.
• To expand to at least 3 more places by 2 years.
• To make $174k in profits by the end of year 2.
• To become the best motel in the entire state.

5.4 Product Pricing

The services of Wanderer’s Inn will be priced at the market average of the other motels in the area. We will provide better services than the competition but at the same prices to grow our business at the start.

Marketing Strategy

If you need a business to be successful, having a marketing strategy is of paramount importance. This section of this boarding kennel business plan addresses this factor. You can use this motel marketing plan template for advertising your motel or come up with one of your own. If you want to know how much does it cost to own a motel, the answer is ‘a lot’. That will not be a part of this motel business plan pdf because the cost can vary from location to location.

What’s included in this motel business plan template is the competitive analysis and sales strategy for the business.

6.1 Competitive Analysis

• We have noted that there is no motel in 100 miles on both sides of the location we have selected for Wanderer’s Inn.
• The motels available in the area are of very low quality and standard and we can gain competitive edge by providing better services.
• There is a lot of demand of motel services in the area.

6.2 Sales Strategy

• We will use all local and national advertisement platforms to make sure that the motel is known to as many people as possible.
• We will offer top-class services at a discounted price to get as many customers as we can for the business.
• We will provide 100% customer satisfaction to make sure we get repeat customers and make a good name for the business.

6.3 Sales Monthly

6.4 Sales Yearly

6.5 Sales Forecast

Personnel plan

It is easy to come up with motel hotel business ideas but not all of them are translated into functional businesses. This is because this industry needs a lot of man power and having a personnel plan is a must for making the business possible and profitable. Just like a business plan for green house , you will need to have a lot of men to run the business. Let’s have a look at the details of the people you will need to make this business model for motel a reality.

7.1 Company Staff

The following people will be needed to run Wanderer’s Inn:

• Whip Whittaker will be the owner and CEO of the business.
• 1 manager for the hotel.
• 1 manager for the restaurant.
• 3 mechanics.
• 2 Office workers.
• 1 reception clerk.
• 1 Accountant.

7.2 Average Salary of Employees

Financial plan.

The last thing we need to discuss to complete this business plan is the cost of motel business plan . If you want to know how much does it cost to build a motel, you better ask a civil engineer, preferably an experienced one. This financial plan, just like the one in the business plans for RV park , covers the prices involved in starting this business.

• Money needed to buy land to make the motel.
• The cost of building the motel.
• The cost of furniture needed for the motel.
• The salary of employees.
• The cost of establishing a workshop.
• Bonds, securities, insurance, and registration costs.

8.1 Important Assumptions

8.2 break-even analysis.

8.3 Projected Profit and Loss

8.3.1 profit monthly.

8.3.2 Profit Yearly

8.3.3 Gross Margin Monthly

8.3.4 Gross Margin Yearly

8.4 Projected Cash Flow

8.5 Projected Balance Sheet

8.6 business ratios.

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How to Write a Successful Hotel Business Plan + Template

Creating a business plan is essential for any business, but it can be especially helpful for hotel businesses who want to improve their strategy and/or raise funding.

A well-crafted business plan not only outlines the vision for your company, but also documents a step-by-step roadmap of how you are going to accomplish it. In order to create an effective business plan, you must first understand the components that are essential to its success.

This article provides an overview of the key elements that every hotel business owner should include in their business plan.

Download the Ultimate Hotel Business Plan Template

What is a Hotel Business Plan?

A hotel business plan is a formal written document that describes your company’s business strategy and its feasibility. It documents the reasons you will be successful, your areas of competitive advantage, and it includes information about your team members. Your business plan is a key document that will convince investors and lenders (if needed) that you are positioned to become a successful venture.

Why Write a Hotel Business Plan?

A hotel business plan is required for banks and investors. The document is a clear and concise guide of your business idea and the steps you will take to make it profitable.

Entrepreneurs can also use this as a roadmap when starting their new company or venture, especially if they are inexperienced in starting a business.

Writing an Effective Hotel Business Plan

The following are the key components of a successful hotel business plan:

Executive Summary

The executive summary of a hotel business plan is a one to two page overview of your entire business plan. It should summarize the main points, which will be presented in full in the rest of your business plan.

• Start with a one-line description of your hotel company
• Provide a short summary of the key points in each section of your business plan, which includes information about your company’s management team, industry analysis, competitive analysis, and financial forecast among others.

Company Description

This section should include a brief history of your company. Include a short description of how your company started, and provide a timeline of milestones your company has achieved.

If you are just starting your hotel business, you may not have a long company history. Instead, you can include information about your professional experience in this industry and how and why you conceived your new venture. If you have worked for a similar company before or have been involved in an entrepreneurial venture before starting your hotel firm, mention this.

You will also include information about your chosen hotel business model and how, if applicable, it is different from other companies in your industry.

Industry Analysis

The industry or market analysis is an important component of a hotel business plan. Conduct thorough market research to determine industry trends and document the size of your market. 

Questions to answer include:

• What part of the hotel industry are you targeting?
• How big is the market?
• What trends are happening in the industry right now (and if applicable, how do these trends support the success of your company)?

You should also include sources for the information you provide, such as published research reports and expert opinions.

Customer Analysis

This section should include a list of your target audience(s) with demographic and psychographic profiles (e.g., age, gender, income level, profession, job titles, interests). You will need to provide a profile of each customer segment separately, including their needs and wants.

For example, a hotel business’ customers may include:

• Business travelers
• Leisure travelers
• Groups and conventions
• Wedding parties
• Local residents

You can include information about how your customers make the decision to buy from you as well as what keeps them buying from you.

Develop a strategy for targeting those customers who are most likely to buy from you, as well as those that might be influenced to buy your products or hotel services with the right marketing.

Competitive Analysis

The competitive analysis helps you determine how your product or service will be different from competitors, and what your unique selling proposition (USP) might be that will set you apart in this industry.

For each competitor, list their strengths and weaknesses. Next, determine your areas of competitive differentiation and/or advantage; that is, in what ways are you different from and ideally better than your competitors.

Below are sample competitive advantages your hotel business may have:

• Location : if your hotel is located in an ideal spot for leisure or business travelers, this could be a key competitive advantage
• Amenities : if your hotel offers unique amenities that are appealing to your target market segments, this could give you a leg up on the competition
• Customer service : if you focus on delivering exceptional customer service, this could be a key selling point

Marketing Plan

This part of the business plan is where you determine and document your marketing plan. . Your plan should be clearly laid out, including the following 4 Ps.

• Product/Service : Detail your product/service offerings here. Document their features and benefits.
• Price : Document your pricing strategy here. In addition to stating the prices for your products/services, mention how your pricing compares to your competition.
• Place : Where will your customers find you? What channels of distribution (e.g., partnerships) will you use to reach them if applicable?
• Promotion : How will you reach your target customers? For example, you may use social media, write blog posts, create an email marketing campaign, use pay-per-click advertising, launch a direct mail campaign. Or you may promote your hotel business via public relations (PR), speaking engagements, or other thought-leadership activities.

Operations Plan

This part of your hotel business plan should include the following information:

• How will you deliver your product/service to customers? For example, will you do it in person or over the phone only?
• What infrastructure, equipment, and resources are needed to operate successfully? How can you meet those requirements within budget constraints?

The operations plan is where you also need to include your company’s business policies. You will want to establish policies related to everything from customer service to pricing, to the overall brand image you are trying to present.

Finally, and most importantly, in your Operations Plan, you will lay out the milestones your company hopes to achieve within the next five years. Create a chart that shows the key milestone(s) you hope to achieve each quarter for the next four quarters, and then each year for the following four years. Examples of milestones for a hotel business include reaching $X in sales. Other examples include adding new locations, launching a new product/service, or hiring new employees.

Management Team

List your team members here including their names and titles, as well as their expertise and experience relevant to your specific hotel industry. Include brief biography sketches for each team member.

Particularly if you are seeking funding, the goal of this section is to convince investors and lenders that your team has the expertise and experience to execute on your plan. If you are missing key team members, document the roles and responsibilities you plan to hire for in the future.

Financial Plan

Here you will include a summary of your complete and detailed financial plan (your full financial projections go in the Appendix). 

This includes the following three financial statements:

Income Statement

Your income statement should include:

• Revenue: how much revenue you generate.
• Cost of Goods Sold: These are your direct costs associated with generating revenue. This includes labor costs, as well as the cost of any equipment and supplies used to deliver the product/service offering.
• Net Income (or loss): Once expenses and revenue are totaled and deducted from each other, this is the net income or loss

Sample Income Statement for a Startup Hotel Business

Balance sheet.

Include a balance sheet that shows your assets, liabilities, and equity. Your balance sheet should include:

• Assets : All of the things you own (including cash).
• Liabilities : This is what you owe against your company’s assets, such as accounts payable or loans.
• Equity : The worth of your business after all liabilities and assets are totaled and deducted from each other.

Sample Balance Sheet for a Startup Hotel Business

Cash flow statement.

Include a cash flow statement showing how much cash comes in, how much cash goes out and a net cash flow for each year. The cash flow statement should include:

• Cash Flow From Operations
• Cash Flow From Investments
• Cash Flow From Financing

Below is a sample of a projected cash flow statement for a startup hotel business.

Sample Cash Flow Statement for a Startup Hotel Business

You will also want to include an appendix section which will include:

• Your complete financial projections
• A complete list of your company’s business policies and procedures related to the rest of the business plan (marketing, operations, etc.)
• Any other documentation which supports what you included in the body of your business plan.

Writing a good business plan gives you the advantage of being fully prepared to launch and/or grow your hotel company. It not only outlines your business vision but also provides a step-by-step process of how you are going to accomplish it.

As you can see, there is a lot that goes into creating a successful hotel business plan. But with careful planning and execution, you can set your hotel business up for success.  

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Sales strategy, revenue management, 4 reasons regional hotels & motels are doing it tough.

• Michael Harper

As an experienced Hotel Sales & Yield Manager in my past life, and upon returning to my roots in regional NSW, I see so many regional Hotels & Motels missing opportunity and leaving money on the table as they struggle to compete. So I write today to provide some insight as to why I think Regional providors, may be doing it tough.

Four trends that I’m seeing in short stay Accommodation in Regional Australia

Growth of Serviced Apartments

There is an undeniable trend that the serviced apartment sector is on a spectacular growth curve as they continue to steal market share off the Motel and Hotel sectors.

Guest expectations are increasing as they demand more value from short stay accommodation providers. Serviced apartment style products give guests more space, more facility, more flexibility and often better value. While they are wanting more in some areas, in others, it is less important. Daily cleaning services as an example is an area guests are indicating they can do without if it means getting a better rate.

In 2011 Motels and Serviced Apartments had equal market share at 26% each and we have seen the apartment sector increase year on year ever since. Hotels are seeing a similar rate of decline also and while there is a rapid increase in supply of service apartments in metropolitan areas. With an aging Hotel/Motel stock in regional Australia, it’s only a matter of time before the same pattern occurs there as well.

Dumbed Down Customer Service

It’s not just physical assets that are important either. Customer Service Excellence is an area that I believe can be vastly improved at no cost to business. It is important to remember in regional hospitality, that our guests are often metropolitan based and have relatively high service expectations based upon their city experiences in much more competitive environments. “She’ll be right mate” is fine from an authentic and genuine point of view, but does it really meet their expectations. The cost of a smile or remembering someone’s personal details is nil, as is going over and above. Near enough is not good enough!

I had an experience in Albury once at the Siesta Resort where by upon my departure date, I emerge from our suite to find the General Manager of the property washing my windscreen and leaving a ‘travel safe’ message for me on the windscreen before we leave. The General Manager! Can you believe it? Now that’s customer service.

The opportunities are abound and they cost you very little, but keeps them coming back and spreading the word.

Digital Lag

While many regional operators have in fact moved to a website and even adopted platforms like trip advisor and the booking button, I still see is a reluctance to distribute room rates online through Online Travel Agents and having a strong digital footprint.

With the rise of consumer lead platforms such as AirBnB, regional operators can no longer ignore the rapidly changing digital phenomenon.

Now, I totally get this. It’s not that operators don’t understand the power of doing things digitally, it’s just simply when you consider the scale of the typical operation and the man hours required to maintain your online distribution it sometimes seems easier to just do it the old fashioned way. “Placing your Bookings on Auto Pilot” is the eternal promise that digital can bring, but the reality is so different. Small to medium Hotels & Motels seem hamstrung.

As a comparison to say the retail world, it is like customers are in the shop but it’s just too expensive to have staff on the floor to serve them. So rather than going over to serve them we only have the man power to wait for them to come to our retail service counter, one at a time! Exploring digital, places numerous virtual sales staff on the retail floor so to speak!

Going digital is fine if you have the resources to manage it and the scale to justify it, and otherwise can be quite a burden. However I believe there is still a way to maximise the digital opportunity for regional Hotel and Motel businesses. Ignore at your peril.

Static Pricing

Now here’s what I think is the biggest missed opportunity of all . Having spent time in a large city based Hotel as a Sales Manager driving many yield development programs, I have experienced what the big boys do to maximise the revenue performance of their properties. It is a multi-faceted approach with the simple aim of increasing, or optimising, room rates while maintaining or even growing occupancy.

There are many levers we can pull to achieve this and it’s not that hard. It simply takes a system and some focus.

As country boy at heart, upon returning to my roots in regional NSW, I see so many hospitality businesses missing out on the opportunity that property yielding presents. Most regional Hotels & Motels I see run with a ‘static’ pricing structure which doesn’t allow them to take advantage of the ebbs and flows of the market.

You see the hard work is already done. You have the investment in bricks and mortar; you have many systems, procedures and staffing all in place. Your rooms are available to be booked every day of the year. In my time at Rydges Hotels & Resorts, every day we had the task of selling 181 rooms to the public. If we didn’t sell them all, well you don’t get another chance to sell them do you! That’s it, the day is done. The thing that the public don’t understand is that when it’s deathly quiet, you don’t see anyone coming to console you on the days when you’re at 15% occupancy. So when it’s 100% occupancy (when the demand is high) surely you deserve the opportunity to sell those rooms at a premium!

So what are the impacts if we begin to address some of these challenges that are pressuring Regional Hospitality?

If we begin to satisfy your guests growing needs, through improved facilities. If we give your focus on customer service a makeover. If we customize your digital footprint to suit both the changing consumer needs and the demands of your operation, and if we maximise your profits through a dynamic pricing strategy. The rewards for addressing these 4 challenges can be great.

Revenue Here & Now

Make hay while the sun shines, so they say. We’ll that’s what you’re in business for isn’t it. It’s not just lifestyle, let’s put some profits into your pocket to help you towards that trip, holiday or investment you’ve been dreaming of. You run a 7 day a week business, you deserve some reward for your effort. You need a solid motel business plan to achieve this but it is so achievable.

Revenue in the Future

Looking to sell any time soon? Well the Hotel/Motel sector has had a pretty flat experience in recent years with many developers and investors looking more towards serviced apartment stock because of it’s attractive returns, growth trajectory and alternative exit points. So how are you going to position yourself for exit in a tightened market?

You need good performance numbers with strong revenue, great physical appeal, expanding customer base of both corporates and leisure guests, and solid systems and processes in place. All helping to make the investors mind up that your business is just plug and play. Investors don’t buy “Potential”, they buy what’s real.

If any of this sounds familiar and you have some concerns about the performance of your Hotel or Motel, then let’s get together and discuss what you can do to improve. I remain in touch with the industry and have a keen interest and understanding of the hospitality rooms business. So much so, I run my own short stay serviced apartments business in my home town of Temora. ( www.revivehotels.com.au in case you wanted to check it out).

I provide Hotel Business Coaching Services via my offering called Hotel Rescue . If you’d like to know more give me a call or drop me a line.

Hotel Strategy Co.

Hotel Strategy Co. is a results-driven performance agency helping Hoteliers maximise the revenue and profits in their accommodation business.

We have a dedicated team of Revenue Managers, Distribution Managers, Number Crunchers, Online Strategists, Digital Marketers, Sales Managers and Performance Optimisation Specialists, waiting to work hard for you.

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How to Start a Hotel Business in Australia

The hotel industry of Australia is quite a lucrative sector to invest in. If you are passionate about the hospitality business and want to invest in a startup, then Australia is the country you should look for. In this comprehensive blog, we will look at how to start a hotel business in Australia and what to do to make it successful.

9 Steps to Start a Hotel Business in Australia

• Market Research and Feasibility Study

First thing first, you will need to find out whether or not it is good to start a business right now. Especially, during the period of recession. Moreover, you will need detailed market research and competitor analysis. Find out who are your top competitors with whom you will be competing. After, you can look for things that you can provide in your hotel that your competitors are not providing. Feasibility study is crucial for every startup and so is for hotel business. Look at whether or not your hotel idea will be feasible especially economically and operationally. 

• Business plan

Once you have done in-depth market research, it is time for you to create a business plan. For that, the first thing you will do is select a unique and classy name for your hotel. Moreover, make a roadmap on how you will be executing every step to make your hotel successful. Make investment plans and outline your expected results in the coming 3 months, 6 months, and 1 year. Also, make a complete checklist of how you can achieve those milestones in the given period of time. 

• Legal and Regulatory Considerations

Once you have finalized your business name and business plan, it is time to register your business. Every business in Australia needs an Australian Business Number (ABN) to operate. You will need to register your business there and also fulfill any other legal regulations if required. Moreover, based on the state you are operating in, your local government can also ask for registration of your hotel. 

• Location Selection

Find a suitable location where you can operate your hotel. Find a naturally peaceful and beautiful place. It is always better if there is a lake, river, or beach nearby your hotel. It will attract more people to stay at your hotel. Moreover, look for a location that is less crowded with other hotels and motels. If you are planning to build a big 3-star or 5-star hotel, then the city area is better as you can target more wealthy people.

When it comes to financing, there are many options you can explore. Here are some sources of capital for starting a hospitality business in Australia: Personal Savings: Using personal savings is a new form of financing. If you have enough money, you can use them as an investment in your hotel.

Bank loans: Banks and financial institutions offer business loans that can be used to finance accommodation. Prepare a detailed business plan and financial forecast to demonstrate the viability of your business when applying for a loan.

Government Incentives and Assistance: The Australian Government offers a range of grants and assistance to small businesses, including those in the hospitality industry. Research and check government websites or speak to a business professional to identify grants or incentives that can help you. Investors: You can find investments from individuals or companies that want to support your hospitality business. This can reflect your business idea to potential investors or work with venture capitalists focused on the hospitality industry.

The design of the Australian hotel business should provide a collaborative and friendly environment for guests. From the moment they enter the reception area, it should offer a warm and efficient atmosphere with good materials, inviting chairs, and good visuals. With plush beds, ample storage space, modern appliances, and well-designed bathrooms, rooms should be the focus of comfort, functionality, and beauty. Areas such as lounges, bars, and restaurants should be designed with stylish decor, comfortable seating, and ambient lighting to provide an inviting environment for conversation and relaxation.

• Staff and Human Resource

Building a successful hospitality industry in Australia requires careful consideration of staff and human resources. When recruiting and hiring staff, it’s important to identify the specific roles and responsibilities your hotel needs. Create detailed job descriptions and qualifications to attract qualified candidates. Use a variety of recruiting methods, including online employment boards, chambers of commerce, and local networks. Complete the selection process, including background checks, interviews, and background checks to ensure you hire employees based on your hotel’s values ​​and have the skills and experience.

• Marketing 

A good marketing strategy can help attract visitors, build brand awareness and increase revenue. Start by defining your target market and having a clear understanding of their interests and needs. Create a unique personality that reflects the quality of your product and resonates with your target audience. Use various marketing methods such as digital platforms, social media, and print ads, and partner with travel agents or online travel agencies (OTAs) to attract potential guests. Consider video marketing as it is the fastest-growing marketing strategy and is equally effective as well.  Build a consistent website to showcase your hotel’s facilities, rooms, and services and optimize it for search engines to see. Use social media platforms to interact with customers, share content and promote special products or packages. Use online reputation management to track and respond to visitors. Consider offering incentives such as loyalty programs or referral bonuses to encourage repeat business and word-of-mouth referrals.

• Business Solutions

In a fast-paced and competitive hospitality industry, implementing the right business solutions is crucial for effective and efficient operations. Accounting software plays an important role in financial management, tracking income and expenses, and creating accurate financial information. With features such as automated invoicing, invoicing, and expense tracking, budgeting can simplify financial management, improve accuracy, and help with financing and forecasting. Another important solution in hotel businesses is point of sale (POS) software . POS software facilitates the efficient and effective operation of a variety of business environments, including front desk operations, restaurants, bars, and gift shops. It allows employees to process payments, manage inventory, track sales, and generate detailed reports. POS software can integrate with other systems such as inventory management and customer relationship management (CRM) to help improve operations, better serve customers, and gain insight into sales and visitor preferences.

Wrapping Up

Now, you have read all the necessary steps to start a hotel business in Australia, we are sure that you are informed. It is always tough to manage a startup business. But with careful implementation of the above steps you can easily run a hotel business. 

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Hotel Business Plan

OK, so you have decided to realize your dream and open your own hotel . You have thought out an amazing concept delivering unparalleled guest service. The next step would be to write a hotel business plan. It’s like a road map to the opening. However, as a seasoned hotel management company , we have seen that this is where most entrepreneurs get stuck.

Why? Many do not have the time and 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.

The 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 businesses 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.

Hotels 101: The Basics of Business Planning

We have put together a hotel business plan template to help you on your way. Check out our approach based on 10 critical points, being:

• Executive Summary
• Company Analysis
• Industry Analysis
• Customer Analysis
• Competitive Analysis
• Strategic Plan
• Operations Plan
• Management Team
• Financial Plan
• Key Milestones

Steps of your Hotel Business Plan

Let’s dive into the step-by-step checklist of what your hotel business plan should look like.

Infographic by Xotels

1. Executive Summary

This first part should consist of two main parts, being:

• Mission Statement (Introduction): 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 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. This acts as the foundation on which decisions such as trends and developments to follow will be based.  

Streamline Your Hotel Operations

We guide hotels and resorts toward unparalleled success, positioning them as market leaders.

4. Customer Analysis

In-depth information on your target market, including geographic, demographic, socioeconomic, psychographic, and behavioural segmentation details. It can also help you to keep up to date with the latest hotel marketing trends to understand which are the types of guests who will be staying at your hotel. Explain which features will be meeting the needs and wants of these main segments when thinking of:

Basically, how will consumers answer this question ‘Why my hotel?’

Aim to break it up to the point value can be easily communicated (do not make it too overcomplicated). Think of the following examples:

• Psychographics: interests, lifestyles, personality, values, opinions, and attitudes
• Behavioural segmentation: purchasing behaviour, level of engagement, customer loyalty
• Demographics: gender, age, marital status and education
• Geographics: location (country, state, region, city)
• Socio-economics

Any of the above examples of hotel segmentation can, if described well, be of great value to your business plan. An example of this could be a hotel located in a beach town, where you should be able to describe how demographics and psychographics differ from summer to winter time. Especially, since this example is typically known for lower demand in winter which you could be compensating for with the right hotel marketing strategies on hand.

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?

Ask yourself: “can I add value to a specific area”, especially when it comes to hotel-dense areas like city centres or major destinations.

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 be the plan for your hotel website, SEO, SEM and SMM? Will you do offline promotion? In short, your hotel marketing strategy should cover everything there is to know about how to market your hotel.
• 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? Which room types will you be selling, and how will they be individually marketed? How many revenue scenarios will I create? Where can I compensate income/demand streams when necessary?

Make sure you have the capabilities to plan out a strong marketing, distribution and revenue management strategy. 

Things get complicated rather fast, and choosing to outsource hotel and revenue management is likely to give you a strategic advantage, during the planning phase, and the execution of your business plans.

7. Operations Plan

How will you run your hotel? Think of the following elements:

• How many 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. Having a great team is the key to success , and stakeholders will be impressed with a thorough explanation of the added value everyone brings to the table.

9. Financial Plan

Provide the start-up costs of the hotel (capital investment), the ongoing business costs, operational expenses and revenue projections for the next five years. These figures should be always based on your Hotel Feasibility Study . The KPIs to look at include 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 achievements which once they have been completed, will make your hotel more likely to succeed. Think off:

• Location selection
• Permits & Licenses
• Build-out / Construction of the Hotel
• Staffing and Training
• GOP Break-even
• NOI Break-even

Each time one of the key milestones is achieved, the risk of lenders or investors decreases . And once your last key milestone is reached, the 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.

Putting Your Plan into Action

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 free sample 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!

Maximize Your Hotel Revenue

Uncover the hidden revenue potential of your hotel or resort.

Need help to Develop and Manage your Hotel Concept?

Our hotel consultants at XOTELS have helped hundreds of hotels to develop and optimize their businesses. 

With cost-effective implementations and best practices developed over years of experience, successful business as a boutique hotel , resort, B&B, aparthotel, hostel, or any other lodging concept for that matter, is guaranteed.

Hope this template has helped you get inspired to start your own hotel business .

Best of luck in your endeavours!

Patrick Landman

PS. Get in touch with us if you need help developing and managing your hotel concept.

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How To Set Up A Business In Australia

Published: Apr 5, 2024, 1:18pm

Table of Contents

Determine how you’ll make money, decide on a business structure, register your business, open a business bank account, know the rules and protect your business, set up your online channels, frequently asked questions (faqs).

Want to be your own boss? Got an idea for a new or improved product or service people will pay for? Starting a business in Australia is exciting, but there are many conditions and costs involved in setting one up.

Know what’s needed for you to legally start trading by following the most essential steps we’ve outlined below.

Related : How to Make Money From Home

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Unless you can fund your business operations and then generate enough revenue to make a profit, your business is destined for failure eventually. You need to determine if your business is viable and how you’ll attract customers or investors.

It’s wise to develop a business plan that articulates your core goals and how you’ll achieve them. You can do this independently or seek the guidance of a professional business consultant.

A business plan might cover:

• What you’ll offer and how, your target market, your unique selling points, and pricing.
• Market research, branding, marketing plans, sales channels and customer service strategies.
• Location, equipment, inventory, software, payment systems, and suppliers you’ll need.
• The high-level legal, compliance and risk management facets of running your business.
• Whether you’ll have employees and how they’ll be recruited, paid and managed.
• Establishment and overheads costs, funding/loans, sales and cash flow projections.
• The timing, people, resources and activities needed to make your plan a reality.

Business Queensland and Business Victoria both provide helpful business plan templates.

Another critical aspect of business set-up—once you know your business idea has legs—is choosing a business structure that aligns with how you’ll operate. The structure you chose will affect how you’re taxed and your administrative burden.

There are four business structures in Australia:

• Sole trader: This gives you full control but also means you’re personally responsible for all business liabilities. It’s simpler too: you’ll report your business income in your individual tax return.
• Partnership: Two or more people who share control and business liabilities. Partnerships must prepare a separate partnership tax return.
• Trust: A separate legal entity where a single person/entity, the trustee, holds the business’ assets and is responsible for how its run—on behalf of others, known as beneficiaries. Requires a formal trust deed and can be more costly and complex to set-up. Liability is limited where the trustee is a company.
• Company: A separate legal entity. While your personal liability is limited with a company, it’s also more expensive and complex, requiring registration with ASIC and placing legal responsibilities on the director/s.

It generally pays to seek professional advice if you’re not sure whether a sole trader, partnership, trust or company structure is right for you.

There’s a multitude of different registrations needed to stay above board. Fortunately, you can do many in one online application process via the government’s Business Registration Service .

Here are the key registrations for Australian businesses:

Australian Business Number (ABN)

An ABN is a free, unique identifier you’ll need to:

• Add to your invoices to show clients and suppliers you’re legitimate.
• Avoid having businesses you invoice withhold tax.
• Be able to claim tax credits on business expenses.
• Set up a domain name with ‘.au’ in the URL.
• Register for GST and pay as you go (PAYG) withholding.

You’ll need an ABN before you can register your business name—but you can apply for both at once.

If you choose a company structure, you’ll first need to apply for an Australian Company Number (ACN) and company name. Be aware that fees apply .

Note, you’ll receive a separate Tax File Number (TFN) for your business—automatically issued by the Australian Tax Office (ATO)—once you apply for an ABN for a partnership, company or trust.

Business Tax Registrations

Common tax registrations include:

• Goods and Services Tax (GST)
• Pay as You Go (PAYG) withholding

As soon your annual business turnover cracks the $75,000 mark, you’re required to register to collect the Goods and Services Tax (GST). So, if you think you’ll be on track to earn more than that in your first year of operation—registering for GST up-front is smart.

According to the ATO , you also must register for GST if:

• Your business charges passengers for taxi services or limousine travel (including ride sharing).
• You want to claim Fuel Tax Credits (FTC) or need to register for the Wine Equalisation Tax (WET) or Luxury Car Tax (LCT).

Once you’re registered for GST, you’ll need to complete regular business activity statements (BAS) .

If you’ll be employing people or have company directors to pay, you’ll need to register for PAYGW so you can collect tax from the income—and then report and pay this tax to the ATO. You’ll also need to register for PAYGW if you’ll be paying businesses that don’t provide you with an ABN.

[pro_tip As soon your annual business turnover cracks the $75,000 mark, you’re required to register to collect the Goods and Services Tax (GST). So, if you think you’ll be on track to earn more than that in your first year of operation—registering for GST up-front is smart

Business Name Registration

Your business name isn’t necessarily how you brand or market yourself. It’s the legal entity name of your business and allows you to operate Australia-wide.

ASIC’s fees for registering and renewing a business name are:

• $42 for one year
• $98 for three years

ASIC will send you a reminder by email 30 days before you need to renew your business name registration. A common and misleading tactic targeting business owners is unofficial letters or emails reminding you to renew and pay for your business name registration.

If it isn’t official correspondence from ASIC, you can ignore it. They’re either trying to scam you (the letter or email is fake), or profit from providing a service you don’t need (they add a charge on top of ASIC’s fee). Of course, some people may prefer to deal with a private service provider, accountant or solicitor to manage registrations and renewals—but carefully check their fees and legitimacy beforehand.

Registering a trademark isn’t required, but it could be a savvy way to protect your brand. For example, if another business owner trademarks a similar name to the one you use for your business, they could bring legal action against you.

Trademarking comes at a cost—a minimum of $250 and up to $600 through IP Australia .

You may wish to search existing trademarks before you settle on a business trading name.

Business bank accounts are critical for clean record-keeping for your business, even if you’re a micro business or sole trader. Keeping business funds separate is also a requirement if your business is structured as a company, trust or partnership.

Learn more in our guide to the best business bank accounts for Australians .

In addition to a business account, you might also explore accounting software that links to your bank transactions and helps you streamline invoicing, budgeting and organising your tax obligations.

Managing risk and staying compliant should be high on your list. It’s important to familiarise yourself with national and state fair trading laws and Australian Competition and Consumer Commission regulations that you’ll be subject to, so you’re not in conflict with industry standards, consumer law, safety rules or ethical practices.

Other legal matters to investigate include:

• Privacy and data collection laws. If you collect people’s details through a contact form on your site, you should also provide a privacy policy link.
• Employment, superannuation and workplace health and safety laws.
• Legal requirements around importing and exporting.
• Environmental protection laws, depending on your business kind.

Insurance can also provide a solid foundation for your business. Consider your need for:

• Workers’ compensation insurance (mandatory if you employ people).
• Public liability insurance (compulsory for some companies).
• Equipment or stock insurance.
• Income protection insurance.
• Management liability insurance.
• Cyber risk insurance.

Online shopping and research is the default nowadays, so one of the first steps you should take when setting up your business is securing your online presence. Regardless of whether you sell flowers from a market stall, have a bricks-and-mortar clothing store, or you build mobile apps—you’ll likely need a website for your business, and use social media for promotion.

Remember, you’ll need an ABN if you want to register a domain name for your website that indicates you’re Australian-based, such as ‘. com.au ‘, or ‘. net.au ‘. You may opt for .com if you’re selling into overseas markets.

Once you’ve determined the channels you want to focus on (e.g., Facebook, TikTok, LinkedIn), you should set up accounts and choose a username that aligns closely with your business name. It’s probably unrealistic to have your business on every kind of social platform—you’ll need time to create content, engage with audiences and monitor messages.

Don’t forget your online presence on major marketplaces and search engines—such as a Google My Business profile, or dual listings of your products on sites like Amazon or eBay.

How much does it cost to register a business in Australia?

Registering your business name through the Australian Securities and Investment Commission (ASIC) costs $42 for one year and $98 for three years.

What do you need to open a business in Australia?

To open a business in Australia, it’s recommended that you: develop a plan for how you’re business will attract customers and make a profit; select a business structure; apply for an ABN and register your business name; register for tax purposes such as GST and PAYG withholding; open a business bank account; become familiar with legal obligations; take out business insurance; and set up a website and other online channels for promotion.

Does ABN cost money?

Getting an ABN (Australian Business Number) is free, and anyone operating a business (or taking steps to start a business) in Australia is eligible. You can apply via the government’s Business Registration Service .

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Jody McDonald is a freelance writer based in Brisbane who specialises in writing about business, technology and the future of work. She’s helped a range of SaaS platforms and tech companies share their stories, and has written for the Mortgage and Finance Association of Australia magazine, MYOB Pulse, Anthill Magazine, Crypto News Australia and The Chainsaw.

Novotel Moscow City 4 stars Ecocertified

88 88 photos/video

83 83 photos/video

Description

Novotel Moscow City

Hotel that makes every moment matter

The Novotel Moscow City is the only hotel in the famous Moscow City business area of the capital among the highest skyscrapers in Europe, with exciting sky decks and restaurants with panoramic views. The hotel is perfect for business and holiday. Rooms with panoramic windows, a restaurant and a bar, the InBalance welness center, 8 conference rooms, and an underground parking are at guests' disposal.

Novotel Moscow City has a good location within walking distance to the one of the largest Afimall City Shopping and Entertainment Mall, Expocenter, Moscow River Embankment and Krasnaya Presnya Park. The Hotel is also easily accessible by the public transport: several subway and public transport stations, including express to Sheremetyevo and Vnukovo International Airports.

Hospitality and high standards of one of the largest hotel operators in the world Accor in a modern business district of Russia. Novotel Moscow City is perfect for relaxation, ideal for business. Welcome!

Take advantage of the opportunity to book a buffet breakfast on the website for the price of 1,700 rubles per person! The cost of the breakfast when paid at the reception and in the MC Traders restaurant is 1,950 rubles per person.

Hotel extras

Free Wi-Fi, newspapers and maps of Moscow. 5 minutes to the Expo Center.

A minute to the Afimall shopping center with lots of shops, cafes, cinemas.

2 minutes to the highest observation deck in Europe and no-limit ice cream.

4 metro stations and Moscow Central Circle station near the hotel.

15-minutes drive to the Kremlin.

Our accommodation(s)

Page out of

Superior Room with queen-size bed

• 25 m² / 269 sq ft
• Bedding 1 x Double bed(s)
• Views: Courtyard View

From NaN RUB NaN RUB Note  *

Fees and taxes included

1 night | 1 adult

Superior Room with 2 twin beds

• Bedding 2 x Twin bed(s)
• Views: City View

Deluxe room with a double bed

Executive Room with king-size bed.

• 34 m² / 365 sq ft
• Bedding 1 x King size bed(s) and 1 x Double sofa bed(s)

Executive Deluxe Room with double bed and sofa.

• 40 m² / 430 sq ft
• Bedding 1 x King size bed(s) and 1 x Single sofa bed(s)

Deluxe with a double bed for guests with limited mobility

• Accessible room

Executive room for guests with limited mobility with King-size bed

• 33 m² / 355 sq ft

Junior suite for guests with limited mobility with a King-size bed

• 58 m² / 624 sq ft
• Bedding 1 x Double bed(s) and 1 x Double sofa bed(s)

Junior Suite Room with king-size bed and sofa

Suite Room with king-size bed and sofa

• 54 m² / 581 sq ft

City Suite with 1 King-size bed and sofa

• 75 m² / 807 sq ft

Hotel location

Presnenskaya Naberezhnaya, 2, Presnenskaya Naberezhnaya 2, Russia 123112  Moscow Russia

GPS : 55.748069, 37.53685

Contact email [email protected]

Click to copy the email address

Access and transport

Kiev railway station

Railway station

Access: 4.9 km  /  3.04 mi     15 min drive

Tourist attraction

Access: 5.6 km  /  3.48 mi     15 min drive

Historic monument

Access: 6.3 km  /  3.91 mi     15 min drive

TRETYAKOV GALLERY

Access: 7.5 km  /  4.66 mi     20 min drive

Access: 7.5 km  /  4.66 mi     18 min drive

Shuttle on call, Shuttle scheduled

Saint Basil's Cathedral

Access: 7.5 km  /  4.66 mi     15 min drive

BOLSHOI THEATER

Opera/symphony/concert hall

Access: 8.4 km  /  5.22 mi     20 min drive

"Krasnaya Presnya" park

Access: 2.1 km  /  1.3 mi     15 min walk  /  7 min drive

"Afimall City" shopping center

Shopping district

Access: 200 m  /  0.12 mi     5 min walk

Hotel services

Check-in from 03:00 PM - Check out up to 12:00 PM

• Wheelchair accessible

Fitness center

• Air conditioning
• Meeting rooms
• 100% Non Smoking Property
• Room service

MC Traders offers a wide range of delicious international cuisine and cooking classes. The guests can enjoy Early bird breakfast from 4 am; hold a meeting during a business lunch and in the evening relax next to a real fireplace in the bar.

MC TRADERS BAR

Located in the hotel lobby, the MC Traders lounge bar is the ideal place to relax. A wide range of drinks and snacks is available to suit all tastes.

4 options for you to chose from depending on your tastes. A snack at reception from 4AM. A buffet breakfast. For those in a hurry, hot drinks, orange juice and croissants served at the bar. Room service.

At our charming wellness and fitness center, you can enjoy our 2 saunas, 2 hammams (Turkish baths), relaxation rooms and massage treatments. Our mission is to make sure you can enjoy complete relaxation.

Meetings & Events

Our guest reviews

100% genuine reviews from our guests

ALL Rating  4.5/5  2,751 reviews

TripAdvisor Rating  4.5/5  1,821 reviews

Good loacation & Cozy Environment

Customer review rating 5.0/5

Anonymous Business - 3/16/2024 Confirmed reviews ALL

It was my first time staying in this hotel. It was beyond my expectations. In general; the hotel is clean well orginized and pay attention to their guest’s satisfaction.

Dear Burak! Thank you very much for your glowing review regarding your stay at Novotel Moscow City! We are thrilled to hear that you have a great impression about your stay, as well as our hotel team! It is a pleasure for us to bring comfort and positive emotions to our Guests providing courteous, warm and welcoming service. We are glad that you highly evaluated our work! We are looking forward to welcoming you back at our hotel! Warmest regards, Irina Naumova Quality and Attitude Manager.

Wonderful Stay as always !!

TripAdvisor rating 5.0/5

andyrocks_globe 3/5/2024 TripAdvisor review

During my recent stay at Novotel Moscow City from 9th to 22nd February, I was pleasantly surprised by the warm reception I received from the duty manager Marika. Her friendly demeanor and efficient handling of check-in made me feel welcome and valued as a guest as always. I also want to extend my appreciation to the night manager Maria for her attentiveness and quick response to any requests or concerns I had during my stay. Her professionalism and dedication to ensuring a comfortable experience for guests did not go unnoticed. The F&B Manager Darina and her associate Yulia deserves special recognition for their exceptional service and attention towards the incredible experience. I am extremely glad with the fact that how she is concerned with every details to make the valued guest feel exceptional during the stay. Lastly, I would like to express my deepest gratitude towards Deputy GM Marina for her overall management of the hotel. Her leadership and commitment to guest satisfaction were evident throughout my stay, and I truly felt well taken care of under her supervision.

Dear Andy! Thank you very much for your glowing review regarding your stay at Novotel Moscow City! We are thrilled to hear that you have a great impression about your stay, as well as our hotel team! It is a pleasure for us to bring comfort and positive emotions to our Guests providing courteous, warm and welcoming service. We are glad that you highly evaluated our work! We are looking forward to welcoming you back at our hotel! Warmest regards, Irina Naumova Quality and Attitude Manager.

Fantastic place

Customer review rating 4.5/5

Anonymous Friends - 1/14/2024 Confirmed reviews ALL

Good location, near to a big mall ( 4 minutes of walk ) were everything you need is available.

Dear Saud! Thank you for your kind feedback. We are glad to know that you enjoyed your stay with us. Looking forward to welcoming you back. Sincerely, Irina Naumova Quality and Attitude Manager.

Well located

Customer review rating 4.0/5

Vitaly Y. Business - 12/9/2023 Confirmed reviews ALL

1. Process of lamp light replacement should be managed more effectively. 2. It is too noisy in the inner rooms - noise from events (bad sound isolation) 3. All other aspects are on the good level.

Dear Vitaly! Thank you for your kind feedback. We are glad to know that you enjoyed your stay with us. Looking forward to welcoming you back.

well located, good stay

Davit S. Business - 12/9/2023 Confirmed reviews ALL

Thank you for everything?

Dear Davit! Thank you for your kind feedback. We are glad to know that you enjoyed your stay with us. Looking forward to welcoming you back.

In partnership with  TripAdvisor

Web-users rating

Other web-users rate our hotel

• 865 reviews 9.4/10 Location
• 1,445 reviews 7.4/10 Room
• 1,245 reviews 8.8/10 Service
• 19 reviews 4.2/10 WiFi
• 899 reviews 9.6/10 Breakfast
• 511 reviews 7.6/10 Cleanliness
• 144 reviews 5.5/10 Amenities
• 108 reviews 9.5/10 Location
• 192 reviews 7/10 Room
• 168 reviews 9.2/10 Service
• 143 reviews 9.7/10 Breakfast
• 57 reviews 6.9/10 Cleanliness
• 10 reviews 5.2/10 Amenities
• 117 reviews 9.6/10 Location
• 204 reviews 6/10 Room
• 155 reviews 8.2/10 Service
• 128 reviews 9.4/10 Breakfast
• 69 reviews 7.4/10 Cleanliness
• 68 reviews 5.4/10 Comfort
• 26 reviews 4.9/10 Amenities
• 41 reviews 9.2/10 Location
• 116 reviews 6.8/10 Room
• 81 reviews 8.3/10 Service
• 51 reviews 9.8/10 Breakfast
• 38 reviews 7.6/10 Cleanliness
• 6 reviews 5.2/10 Amenities
• 35 reviews 9.5/10 Location
• 59 reviews 7/10 Room
• 52 reviews 8.7/10 Service
• 34 reviews 9.7/10 Breakfast
• 25 reviews 7.9/10 Cleanliness

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Price from: 1 night for 1 person in the room category identified within the same price range, excluding additional services and breakfast. This refers to the lowest public price, including all taxes ( VAT and tourist tax included) for the accommodation concerned, found on https://all.accor.com/ site today, for a one-night stay in the next 20 days . Varies according to period and availability. The price is only guaranteed at the time of booking. All bookings (foreign) are payable in the local currency where the hotel is situated. Only the amount confirmed during the booking in the hotels local currency is guaranteed. An estimated conversion in your local currency may be given for reference but is not part of the contract. Your bank may charge you bank fees and/or exchange fees at the time of payment.

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Lotte Hotel Moscow

Page 20 Aparthotel

Hotel metropol moscow.

Hotel «Moscow Marriott Imperial Plaza», Moscow

Deluxe with Queen-size bed

One-room with a queen-size bed, a unique view of the Stalin high-rise

Deluxe with King-size bed

Studio room with views of the historical center of Moscow

Deluxe suite with two separate beds

One-room suite with two queen-size twin beds

Executive Room

Cozy and stylish room with a view of the Stalin high-rise

The most popular room category for filming the bride's morning

Executive Suite

A great accommodation option for a family holiday

Imperial Suite

Crystal chandeliers, laconic furniture, original paintings and elegant interior items

Premium Deluxe with two separate beds

Studio room with an area of 29 square meters

Suite with bathroom

Two-room more spacious room with an area of 45 square meters. meters

Premium Deluxe with King-size Bed

One-room with a King-size bed with an area of 29 square meters

• Accommodation

Special offers

Romantic weekend

Give each other priceless moments at the Moscow Marriott Imperial Plaza.

Deluxe Wedding Offer

Spend your wedding morning in the Deluxe Room at the Marriott Imperial Plaza.

Wedding Offer - Executive Room

Spend your wedding morning in the Executive Suite at the Marriott Imperial Plaza.

Wedding Offer - Luxury

Spend your wedding morning in a Suite at the Marriott Imperial Plaza.

Bachelorette party at Imperial Plaza

Book our best suites and celebrate a bachelorette party with up to 8 people.

Imperial Plaza Banquet Hall

Easily transformed for different tasks with the help of mobile screen walls

Geneva Conference Hall

Transformable partitions, with the help of which the conference hall can be combined with the Berlin hall

Paris Conference Hall

Perfect location for lectures, meetings and presentations

Vienna Conference Hall

The possibility of combining with the halls «Paris» and «Moscow» allows you to expand the space for larger events

Conference hall «Moscow»

Ideal location for lectures, meetings and presentations

Frequently asked questions

Check-in at 14:00. Check-out is at 12:00.

Breakfast is served daily from 7:00 to 11:00 at the Galerie Restaurant (2nd floor). The cost of breakfast is 2500 rubles/person. A 50% discount is available for children aged 6-12 years.

Photographing in public areas of the hotel is provided only when purchasing a «Wedding offer» or a «Romantic weekend». In other cases, the cost of photographing is 10,000 rubles / 1 hour (1st floor, marble staircase, 2nd floor foyer (according to availability), 3rd floor foyer (according to availability), corridor on the floor of the room. The cost of taking photos in the Imperial Plaza banquet hall is 15,000 rubles / 1 hour (according to availability). Photography is not allowed in Cafe Imperial.

We share your love for pets! Choosing Moscow Marriott Imperial Plaza you don’t have to leave your lovely friend at home. Pets up to 10 kg are welcome at our hotel. The non-refundable cleaning fee for a pet-friendly room is RUB 10,000 for the entire period of stay. Guests with service animals for people with disabilities (including, and not limited to, guide dogs and other guide animals) are allowed to stay with them at no extra charge.

For information about the conditions of events in the Imperial Plaza banquet hall, contact us by phone: +7 903 560 7510 or leave a request for site .

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How Tesla Planted the Seeds for Its Own Potential Downfall

Elon musk’s factory in china saved his company and made him ultrarich. now, it may backfire..

Hosted by Katrin Bennhold

Featuring Mara Hvistendahl

Produced by Rikki Novetsky and Mooj Zadie

With Rachelle Bonja

Edited by Lisa Chow and Alexandra Leigh Young

Original music by Marion Lozano ,  Diane Wong ,  Elisheba Ittoop and Sophia Lanman

Engineered by Chris Wood

Listen and follow The Daily Apple Podcasts | Spotify | Amazon Music

When Elon Musk set up Tesla’s factory in China, he made a bet that brought him cheap parts and capable workers — a bet that made him ultrarich and saved his company.

Mara Hvistendahl, an investigative reporter for The Times, explains why, now, that lifeline may have given China the tools to beat Tesla at its own game.

On today’s episode

Mara Hvistendahl , an investigative reporter for The New York Times.

Background reading

A pivot to China saved Elon Musk. It also bound him to Beijing .

Mr. Musk helped create the Chinese electric vehicle industry. But he is now facing challenges there as well as scrutiny in the West over his reliance on China.

There are a lot of ways to listen to The Daily. Here’s how.

We aim to make transcripts available the next workday after an episode’s publication. You can find them at the top of the page.

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The Daily is made by Rachel Quester, Lynsea Garrison, Clare Toeniskoetter, Paige Cowett, Michael Simon Johnson, Brad Fisher, Chris Wood, Jessica Cheung, Stella Tan, Alexandra Leigh Young, Lisa Chow, Eric Krupke, Marc Georges, Luke Vander Ploeg, M.J. Davis Lin, Dan Powell, Sydney Harper, Mike Benoist, Liz O. Baylen, Asthaa Chaturvedi, Rachelle Bonja, Diana Nguyen, Marion Lozano, Corey Schreppel, Rob Szypko, Elisheba Ittoop, Mooj Zadie, Patricia Willens, Rowan Niemisto, Jody Becker, Rikki Novetsky, John Ketchum, Nina Feldman, Will Reid, Carlos Prieto, Ben Calhoun, Susan Lee, Lexie Diao, Mary Wilson, Alex Stern, Dan Farrell, Sophia Lanman, Shannon Lin, Diane Wong, Devon Taylor, Alyssa Moxley, Summer Thomad, Olivia Natt, Daniel Ramirez and Brendan Klinkenberg.

Our theme music is by Jim Brunberg and Ben Landsverk of Wonderly. Special thanks to Sam Dolnick, Paula Szuchman, Lisa Tobin, Larissa Anderson, Julia Simon, Sofia Milan, Mahima Chablani, Elizabeth Davis-Moorer, Jeffrey Miranda, Renan Borelli, Maddy Masiello, Isabella Anderson and Nina Lassam.

Katrin Bennhold is the Berlin bureau chief. A former Nieman fellow at Harvard University, she previously reported from London and Paris, covering a range of topics from the rise of populism to gender. More about Katrin Bennhold

Mara Hvistendahl is an investigative reporter for The Times focused on Asia. More about Mara Hvistendahl

Advertisement

Millions of people are traveling to see the total eclipse. Hotels, motels, and skydiving operators are making bank on it.

• Millions of tourists are expected to boost economies in Texas and New York during the eclipse.
• Hotels, an eyeglasses manufacturer, and even skydiving companies are preparing for increased business.
• One study predicted that the eclipse could benefit the US economy with nearly $1.6 billion.

As millions of Americans get ready to watch the total solar eclipse on Monday — an event NASA has described as rare and "spectacular" — the phenomenon stands to lift local economies.

Various industries are poised to benefit from the millions of tourists flocking to cities in Texas, Ohio, and New York , which are on the eclipse's "path of totality" and offer the best views of the ring around the sun.

According to NASA, this year's eclipse is set to last three to four minutes, longer than the last solar eclipse , in 2017. People who miss this one will not be able to see another in the contiguous US until 2044 or 2045, the agency said.

Up to 3.7 million people are set to travel to the path of the eclipse, joining the 31 million people already living along the stretch, according to predictions by the eclipse-tracking website Great American Eclipse .

Visitors are expected to spend big: They'll shell out up to $1.6 billion on lodging, activities, food, and gas, the Texas economic consultancy Perryman Group estimated .

Here are some of the industries seeing big boosts from Monday's eclipse.

Hotels and Airbnbs book out

The budget hotel chain Super 8 has over 300 locations within the path of totality, per The New York Times. About 100 of these hotels are sold out for Sunday or Monday, according to the chain's website.

One two-star Super 8 branch in Grayville, Illinois, is advertising rooms for between $765 and $950 from Sunday through Tuesday. On most days, the rooms typically cost $80, the Super 8 website shows.

Higher-end hotels are seeing similar spikes. A JW Marriott in Dallas listed a standard room for $1,039 for Sunday night. It typically costs between $355 and $482, the website said.

Related stories

Visitors are flocking to Airbnbs, too. As of March 25, occupancy rates for April 7 soared to 88% across 110,000 active listings on the path of totality, according to the vacation-rental-data company AirDNA.

The biggest glasses manufacturer has sold out

People can permanently damage their eyesight by looking straight into the sun during an eclipse, so NASA recommends specific solar-filtering glasses .

The eye-protection guidelines translated into huge sales for some glasses manufacturers.

Tennessee's American Paper Optics, the country's largest producer of protective eclipse eyeglasses, has seen a big jump in sales compared with the total eclipse in 2017.

The company started taking eclipse orders two years in advance, John Jerit, the company's founder, told NPR on Friday. The glasses sold for $1.50 to $2 apiece.

"We've shipped already about 70 million glasses, and I suspect I'm going to approach right at 75 million by the time next week comes," Jerit said.

American Paper Optics sold out of glasses this year after producing about 30 million more glasses than it did for the total solar eclipse in 2017, according to a sales figure on the company's site .

Eclipse skydiving attracts thrill seekers

Some adrenaline junkies seeking a novel vantage point are planning to jump during totality to enjoy the darkness from the sky.

A group of 30 skydivers plans to jump in northern New York on Monday, Fox News reported . Tickets for the dive, hosted by the local company Skydive the Falls, sold out in seven minutes after they went live in January.

"We're going to jump one minute prior to totality, so we can enjoy totality in full under our parachutes," Jason Berger, a co-owner of Skydive the Falls, told Fox News.

A similar event in Dallas sold out of its $250 eclipse skydive tickets, too.

For sun observers on the ground, restaurants are making the most of the celestial phenomenon with eclipse menus and specials. Establishments like Smoothie King, Applebee's, and Sonic are offering special eclipse-themed smoothies and margaritas, as well as "blackout" drinks to mark the occasion.

Watch: A small Australian town was treated to a rare hybrid solar eclipse

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