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Hotel Business Plan

OK, so you have decided to realize your dream and become a hotel entrepreneur, so now you need to start writing your hotel business plan . 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 revenue management consulting and 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

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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 revenue management consulting experts 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 for your boutique hotel, resort, B&B, aparthotel, hostel, or any other lodging concept for that matter.

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, and help bring your hotel to the next level with our hotel consulting services.

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From idea to execution: 10 sections to include in your hotel business plan

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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

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Hotel Business Plan Template

Written by Dave Lavinsky

Hotel Business Plan

You’ve come to the right place to create a comprehensive business plan for a hotel.

We have helped over 100,000 entrepreneurs and business owners create business plans and many have used them to start or grow their hotel companies.

Sample Hotel Business Plan Template

Below is a sample business plan to help you create each of the key elements of a well-developed business plan:

Executive Summary

Business overview.

Pegasus Hotel is a startup full-service independent luxury hotel in Austin, Texas. Owned by two local businessmen, Frank Girard and Miles Butler, it will serve the new up and coming district of the outskirts of Austin and cater to the locals and travelers who crave a luxurious and relaxing atmosphere. Pegasus Hotel will be a 10-story, 360-room hotel with a five-star restaurant and bar, relaxing pool and spa, 20,00 square feet of meeting and event space, a spacious and fully-equipped fitness center, and a view of scenic Austin. Pegasus Hotel will hold weddings and events, meetings, retreats, and those looking to unwind and be pampered while staying at the hotel. The service and amenities will be first class and the concierge will treat guests with extreme care and ensure guest satisfaction is held at an exceptional standard..

Service Offering

The following are the services and amenities that Pegasus Hotel will provide:

• 354 luxury rooms, two presidential suites, and four parlor suites
• Olympic size pool with adjacent hot tubs and surrounding cabanas
• First-class full-service spa
• First-class restaurant and bar
• Spacious fitness center
• Over 20,000 square feet of attractive meeting space for events
• Concierge and butler service
• Complimentary wifi
• Valet service
• Laundry service
• Business center

Customer Focus

Pegasus Hotel will target the population of Austin, Texas, its surrounding communities, and travelers visiting Austin for work or play. Guests will be mid to high level income, enjoy traveling, enjoy visiting spas and high-end restaurants, and work in the corporate or government sector.

Management Team

Pegasus Hotel will be owned by Frank Girard and Miles Butler. They will act in an Owner capacity, and will not be involved in the daily operations of the hotel. Frank and Miles will hire the appropriate staff to ensure Pegasus Hotel is a profitable and successful business.

Lorenzo Falucci, General Manager, has over twenty years of experience in the hospitality industry. He has most recently managed another independent boutique hotel in New York and was excited to be recruited by Frank and Miles to operate the Pegasus Hotel.

Success Factors

Pegasus Hotel will be able to achieve success by offering the following competitive advantages:

• Friendly, attentive, and highly responsive staff that caters to each guest and will be able to provide the best guest experience possible.
• Luxurious amenities throughout the hotel that will make each guest feel pampered.
• Modern and contemporary designed hotel tucked against a beautiful Texas landscape perfectly suited to host any event.
• Competitive rates and frequent guest discounts.

Financial Highlights

Pegasus Hotel is seeking $10,000,000 in debt financing to begin constructing the hotel and commence operations of the business. The funding will be dedicated towards securing the land lease and the hotel build-out and design. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff, furniture, fixtures, and equipment, initial inventory, and working capital. The breakout of the funding is below:

• Secure the land lot, architecture, build-out, and design: $6,000,000
• Hotel furniture, fixtures, and equipment: $2,000,000
• Initial inventory: $750,000
• Three months of overhead expenses (payroll, rent, utilities): $1,000,000
• Marketing efforts & advertising: $150,000
• Working capital: $100,000

The following graph below outlines the pro forma financial projections for Pegasus Hotel.

Company Analysis

Who is pegasus hotel.

Pegasus Hotel is a startup full-service independent luxury hotel in Austin, Texas. Owned by two local businessmen, Frank Girard and Miles Butler, it will serve the new up and coming district of the outskirts of Austin and cater to the locals and travelers who crave a luxurious and relaxing atmosphere. Pegasus Hotel will be a 10-story, 360-room hotel with a five-star restaurant and bar, relaxing pool and spa, 20,00 square feet of meeting and event space, and a view of scenic Austin. Pegasus Hotel will hold weddings and events, meetings, retreats, and those looking to unwind and be pampered while staying at the hotel. The mission statement of the hotel is to provide first class service and amenities.

The guests rooms will include luxury beds and bedding with best-in-class furniture and bathroom fixtures. Pegasus Hotel will also have a full-service spa that will be able to provide massages, facials, makeup and/or hair service, steam rooms, and a sauna. The Olympic-sized pool will have adjacent hot tubs with a swim-up bar and surrounding cabanas. Pegasus Hotel will be equipped with state-of-the-art fitness equipment in its spacious gym. The restaurant will be a high-end steakhouse that will feature entrees from a world-renowned chef and a wine list cultivated by the area’s most respected sommelier. There will also be over 20,000 square feet of meeting space that will hold weddings, bat mitzvahs, reunions, galas, and any special event.

Pegasus Hotel will be independently owned and operated and will feature its own reservation system and operational software. Each employee will be expertly trained and vetted to pass luxury industry guest service standards. Pegasus Hotel is committed to providing the best guest experience possible while maintaining a profitable hotel. Pegasus Hotel aims to be a step above the rest and be an unforgettable experience for all who step foot into the hotel.

Pegasus Hotel History

Pegasus Hotel is owned by two local businessmen, Frank Girard and Miles Butler. Frank and Miles have been friends and business associates for over thirty years. They became friends in college while attending The University of Texas at Austin. Frank is a real estate developer specializing in commercial real estate and multi-use land projects. Miles is a software engineer who has built multitudes of software programs for various companies. They have both been extremely successful in their careers and want to divest their investments in a large-scale full-service hotel in Austin, Texas.

Since incorporation, Pegasus Hotel has achieved the following key milestones:

• Acquired a 40-acre lot on the outskirts of Austin, Texas.
• Registered Pegasus Hotel, LLC to do business in the State of Texas.
• Hired a consultant to conduct a feasibility study for a full-service hotel in Austin.
• Began developing reservation and operational management software for use at the hotel.
• Began the branding image, logo, website, and social media accounts for the staffing agency.
• Applied for a liquor and mixed beverage permit with the Texas Alcoholic Beverage Commission.
• Hired an architect to begin the design phase of the hotel.

Pegasus Hotel Services

The following will be the services and amenities Pegasus Hotel will provide:

Industry Analysis

The hotel industry is expected to increase to a $133 billion in the next five years. The hospitality industry will benefit from increases in travel spending, corporate profit and general consumer spending.

As consumers earn higher incomes and businesses replenish their budgets, travel spending is projected to increase over the next five years. Inbound trips by non-US residents are anticipated to rise 22% over next the five years, while domestic travel is expected to grow 9% during the same period.

This competitive industry will see particularly strong future growth in extended-stay hotels, boutique hotels, spa and health retreats and resorts segments. As demand for these auxiliary services picks up, industry employment is anticipated to recover and increase over the next five years. Industry players are also expected to continue expanding abroad into emerging economies, such as Asia, Eastern Europe and South America. These foreign markets are expected to somewhat detract from domestic capital investment, as they offer higher growth prospects for industry operators.

Customer Analysis

Demographic profile of target market.

The precise demographics for Austin, Texas are:

Customer Segmentation

Pegasus Hotel will primarily target the following customer profiles:

• Individuals and families who have disposable income (mid to high level)
• Frequent travelers
• Individuals who dine out and visit spas frequently
• White collar workers (corporate or government office)

Competitive Analysis

Direct and indirect competitors.

Pegasus Hotel will face competition from other companies with similar business profiles. A description of our direct competitors is below.

Hotel Ella is a historic boutique hotel located in Austin, Texas. Located in downtown Austin and walking distance to the University of Texas campus, Hotel Ella is a stylish boutique hotel housed in the historic Goodall Wooten House, one of Austin’s original landmark estates. Constructed in 1900, the Greek revival-style mansion underwent an extensive renovation in 2013, and now offers the perfect balance between modernity and a rich history rooted in the fabric of the neighborhood and the university. Hotel Ella has 47 guest rooms, a cabana-lined pool, and a wrap-around veranda overlooking the front lawn. Hotel Ella features beautifully designed outdoor and indoor spaces perfectly suited for a vacation, wedding, or corporate event. The hotel also features a diverse collection of Texas Modernist works around the hotel grounds.

All guests of Hotel Ella are treated to warm southern hospitality and superior personalized service during their stay. The historic property is appointed with a variety of elegant 21st century amenities. Hotel Ella also offers the following amenities and guest services:

• Complimentary 24-hour guest services
• Complimentary high-speed wi-fi access
• Complimentary electric car charging station
• Complimentary morning newspapers available in the historic mansion
• Complimentary coffee stations from 5am – 11am
• Twice-daily housekeeping service
• Cabana-lined outdoor pool
• Fitness center
• Same-day valet laundry services
• In-room dining by Goodall’s
• Business services: photocopying, printing, postal services, and supplies

Hotel Ella also welcomes dogs of all sizes at no additional fee.

Kimber Modern

Kimber Modern is located in the hip SoCo district of Austin and is intended to draw in the independent urban traveler seeking a unique escape. It is architecturally designed with clean lines and abundant light filtered through canopies of oaks in an artfully landscaped Courtyard. The hotel also encompasses absolute comfort and attention to detail while providing technologically sophisticated rooms in their boutique guest rooms. Guests booking at Kimber Modern will receive complimentary beverages, parking, and WiFi.

Kimber Modern offers the following hotel amenities to its guests:

• Off street covered parking
• Electric car charging station
• Keyless entry
• Complimentary WiFi throughout the hotel
• Multi-level courtyard with a 25-foot glass water feature with multiple areas to lounge
• Jura self-serve coffee system featuring a variety of coffee drinks 24/7
• Beverage bar 24/7
• Gourmet teas
• Virtual concierge – computer, printer, and copier
• Meeting space available for groups
• 3pm check-in and noon check-out

Guests are also available to book the entire hotel for their group.

The Cat Noir Hotel

The Cat Noir Hotel is an award-winning 14-room boutique hotel located in the heart of Austin’s east side. The European-styled boutique hotel includes a restaurant and bar partner, Uncle Nicky’s Italian Specialties. Uncle Nicky’s offers a relaxed all-day dining experience that is themed after cafes in northern Italy. The Cat Noir Hotel opened in 2016 and has been ranked #2 by Travel + Leisure’s World’s Best Awards and Top 20 Best Hotels in Texas by Conde Nast Traveler.

The Cat Noir Hotel’s contemporary design maintains a sense of warmth and a unique aesthetic that is felt through the lobby, outdoor spaces, and each of the unique guest rooms. In addition to the design elements, The Cat Noir Hotel boasts the following features:

• Private roof deck for guests to enjoy the stunning views of downtown, the Texas Capitol, and the University of Texas
• Outdoor patio and courtyard areas on all levels
• Artwork from local artists

Each of the guest rooms include Juliet balconies with neighborhood views, fine linens, and Simmons luxury plush mattresses.

Competitive Advantage

Pegasus Hotel will be able to offer the following advantages over their local competition:

Marketing Plan

Brand & value proposition.

Pegasus Hotel will offer the unique value proposition to its target local market:

• Professional and attentive staff dedicated to ensure complete guest satisfaction.
• Various amenities throughout the hotel for any guest to enjoy.
• Modern and contemporary design with beautiful Texas views throughout the entire hotel.
• Competitive rates.

Promotions Strategy

The promotions strategy for Pegasus Hotel is as follows:

Social Media

Pegasus Hotel will invest in advertising the hotel on social media platforms Facebook, Instagram, LinkedIn, and Twitter. By using targeted social media marketing, Pegasus Hotel will be able to reach those who frequent nice restaurants and spas and travel frequently.

Website/SEO Marketing

Pegasus Hotel will invest in a strong SEO presence so that when someone enters “Austin boutique hotel” or “first class hotel near me” in their Google or Bing search bar, Pegasus Hotel is at the top of the list. Their website will feature photos of the guest rooms, meeting areas, pool, spa, fitness center, and restaurant/bar. Future guests will be able to make a reservation to book their future stay on the website and access contact information for either a Director of Sales or General Manager of the property.

Pegasus Hotel will request all requests for news stories regarding the development of the hotel, owner/developer information, opening dates, etc. By accommodating the press’ requests for stories, it will also be free advertising for the public to learn about the new up and coming luxury hotel.

Frank and Miles will invest in a billboard in downtown Austin where the mid to upper class of residents frequent. The hotel will be minimalistic but eye-catching. It will feature an attractive rendering of the hotel along with the website. Curious passersby will be directed to visit the hotel’s website for detailed information.

Third Party Booking Websites / Online Travel Agencies

Once the hotel is nearing 60 days towards opening, all of the third-party websites will feature Pegasus Hotel so that travelers visiting Austin will be able to see it listed as an option for Austin hotels.

Bridal Shows and Wedding Industry Events

Pegasus Hotel will have a table at all of Austin’s bridal shows and wedding industry events. It will attract those couples searching for a venue to accommodate their special day.

The pricing of Pegasus Hotel will be moderate and on par with competitors so customers feel they receive value when purchasing its guest rooms and services.

Operations Plan

The following will be the operations plan for Pegasus Hotel.

Operation Functions:

• Frank and Miles will be the owners of the hotel and hire the appropriate staff to manage the hotel. Frank will act as CFO of the hotel and Miles will be in charge of the reservation system, hotel operations software, and revenue management. Miles developed the software and will focus on making sure it’s always functional and efficient.
• General Manager will be hired to oversee the entire staff and hotel operations to include guest satisfaction, oversee vendor contracts, events, and making sure that each department is running effectively and efficiently.
• Assistant General Manager to assist the General Manager with overseeing the staff, with particular attention to guest satisfaction and front desk operations.
• Director of Sales will be hired to sell events, corporate accounts, and group bookings for the hotel.
• Maintenance Engineer will be hired to attend to all mechanical and plumbing issues that may arise.
• Executive Housekeeper will be hired to lead the team of housekeepers to make sure all areas of the hotel are being cleaned to Pegasus Hotel standards and that each guest is receiving all accommodations to their requested schedule.

Milestones:

Pegasus Hotel will have the following milestones completed in the next six months.

8/1/202X – Purchase land lot and break ground on new hotel business.

8/15/202X – Finalize architectural renderings and hire a General Contractor to build the hotel.

9/1/202X – Finalize contract with advertising company for them to design the branding image of the hotel, logo, website, billboard, and social media accounts.

9/15/202X – Begin social media and website advertising campaign. Billboard with a teaser of ‘Coming Soon’ will go up in downtown Austin.

10/5/202X – Hire General Manager and Director of Sales.

10/15/202X – Attend annual Wedding Industry Event with a table to begin advertising Pegasus Hotel.

11/1/202X – Pegasus Hotel will go live on third party booking websites.

11/15/202X – Remainder of staff will be hired to begin training program.

11/30/202X – Final walk-thru of newly constructed Pegasus Hotel.

12/15/202X – Begin furnishing and interior design of the hotel.

1/1/202X – Grand Opening of Pegasus Hotel.

Pegasus Hotel will be owned by Frank Girard and Miles Butler. They will act in an Owner capacity, and will not be involved in the day to day operations of the hotel. Frank and Miles will hire the appropriate staff to ensure Pegasus Hotel is a profitable and successful business.

Lorenzo Falucci, General Manager, has over twenty years of experience in the hotel industry. He has most recently managed another independent boutique hotel in New York and was excited to be recruited by Frank and Miles to operate the Pegasus Hotel.

Lorenzo will hire Lisa Montgomery as the Director of Sales and David Jimenez as the Assistant General Manager. After an exhaustive search, Lorenzo believes has found the next two senior management positions to ensure the success of the hotel. Each comes with an impressive resume of prior hotel sales and operational experience.

Lorenzo, Lisa, and David will be the senior management team of Pegasus Hotel. They will oversee all other department managers – Maintenance, Housekeeping, Front Desk/Guest Relations, and Food and Beverage. Each department manager will oversee various employees in their respective department and role. The Pegasus Hotel will have a large and sophisticated operation as each department is integral in the success of the hotel.

Lorenzo, Lisa, and David will meet with Frank and Miles monthly to update them on progress and overall operations and sales efforts of the Pegasus Hotel.

Financial Plan

Key revenue & costs.

The revenue drivers for Pegasus Hotel are the revenues it will collect when guests book a reservation at the hotel. The hotel will also collect revenues from its restaurant and bar, spa, and events it will host.

The cost drivers will be the payroll and overhead costs to staff the hotel. Other start-up costs will involve the land lease, utilities, marketing costs, and technology fees. There will also be costs associated with the maintenance of the hotel, food and beverage inventory, spa inventory, and hotel guest room supplies.

Funding Requirements and Use of Funds

• Marketing & advertising: $150,000

Key Assumptions

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

• Initial Number of Room Nights Sold per Month: 8,000
• Number of Events per Month: 30
• Land Lease per Year: $1,500,000

Financial Projections

Income statement.

Balance Sheet

Cash Flow Statement

Free Hotel Business Plan Template PDF

You can download our hotel business plan PDF here. This is a business plan template you can use in PDF format. You can easily complete your hotel business plan using our Hotel Business Plan Template here .

Hotel Business Plan FAQs

What is a hotel business plan.

A hotel business plan is a plan to start and/or grow your hotel business. Among other things, it outlines your hotel concept, identifies your target customers, presents your hotel marketing plan and details your revenue projections.

What are the Steps To Start a Hotel Business?

Starting a hotel business can be an exciting endeavor. Having a detailed roadmap of the steps to start a business will help you stay focused on your business goals and get started faster.

Develop A Hotel Business Plan – The first step in starting a business is to create a solid business plan that outlines all aspects of the venture. This includes market research to identify the potential market size and target audience, the hotel’s services, pricing strategies and a detailed financial forecast.  

Choose Your Business Structure – It’s important to select an appropriate legal entity for your hotel business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your hotel business is in compliance with local laws.

Register Your Hotel Business – Once you have chosen a legal structure, the next step is to register your hotel business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

Identify Financing Options – It’s likely that you’ll need some capital to start your hotel business, so take some time to identify what financing options are available such as bank loans, potential investors, grants, or crowdfunding platforms to secure funding.

Choose a Location – Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

Hire Employees – There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

Acquire Necessary Hotel Equipment & Supplies – In order to start your hotel business, you’ll need to purchase all of the necessary equipment and supplies to run a successful operation. 

Market & Promote Your Business – Once you have all the necessary pieces in place, it’s time to start promoting and marketing your own hotel business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective digital marketing strategy including SEO and paid advertising. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a new hotel business:

How to Start a Hotel Business

Other Helpful Business Plan Templates

Franchise Business Plan Template Resort Business Plan Template Bed and Breakfast Business Plan Template

• Sample Business Plans

Hotel Business Plan

Have you ever thought of owning a hotel? Great call!

Starting your own hotel business can be an exciting and rewarding venture, as the hospitality industry is booming nowadays, fueled by leisure trips and work vacations.

Whethe­r you’re planning to start a cozy bed & breakfast amenity or a luxury resort, the first thing you’ll need is a solid business plan to make it thrive.

Need help writing your plan in order?

Worry not; we’ve got you covered. This hotel business plan template will help you get started and guide you on what to write in the sections of your plan.

Sounds good? Let’s dive right in!

What Is a Hotel Business Plan?

A hotel business plan is a professional document that outlines your business idea, goals, and strategies to achieve them. Whether you’re a startup or expect to grow an existing one, you’ll need a solid business plan .

It provides a clear understanding of your hotel business, starting from its goals, target market, and service offerings to marketing strategies, financial projections, and long-term growth plans. So, it serves as a strategic blueprint for your entrepreneurial journey.

Now that you know what a hotel business plan is, let’s understand why you need one and how it can help you.

Why You Need a Business Plan for Your Hotel?

As a hotelier, having a good business plan is essential for opening and running your hotel business.

It helps you get your hotel business off the ground and make it successful, navigating all the intricacies of hotel management effectively.

Consider these several reasons why you need a business plan for your hotel:

Define your goals

While writing a business plan, you’ll need to clearly define your specific goals & objectives and the strategies you’ll use to achieve them. So, it’s like keeping a detailed map for your business.

Manage finances better

A well-prepared business plan helps you show how much money you’ll require to start and run your hotel, and how much revenue or profit you’ll earn from it. It also includes detailed budgets, expense estimates, and ongoing operational costs.

Get funding from investors or banks

A comprehensive plan is important if you need money to start and grow your business. It helps you demonstrate to the potential investors or banks that you have a solid plan for success and the potential for return on investment.

Know your competitors & customers

With thorough market research and competitive analysis, your business plan helps you identify and understand your competitors and customers. Also, you can assess the customer needs and distinguish your hotel from the competition.

Identify potential risks

An actionable plan will allow you to anticipate the potential risks and the strategies to mitigate them. This way, you can avoid critical pitfalls before they happen and save meaningful resources.

In simple terms, a business plan is not just a written document, but it’s a valuable tool for planning, managing, and growing your hotel venture.

Now without further ado; let’s explore the key components of a hotel business plan.

Key Components of a Hotel Business Plan

While writing a comprehensive business plan, you should include the following 10 key components in your hotel business plan:

1. Executive Summary

An executive summary is the first and foremost section of a hotel business plan, providing a high-level overview of your entire business strategy.

Generally, it would be written at the end once all the other sections are finalized. This is so because it highlights the most important points you mentioned in the rest of your plan.

In your executive summary, consider including the following details:

• Your business idea & goals
• Vision-mission statements
• Market opportunities
• Target audience
• Marketing efforts and USPs
• Financial outlook

In short, this section is your chance to present a persuasive and compelling snapshot of your business that impresses potential investors or readers. And ensure you keep it short and simple (2 or 3 pages).

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2. Company Overview

The company overview section provides a detailed description of your business, from its basic information (name, size, and location) to objectives.

So, it clearly explains your hotel business concept in detail and outlines the future goals that every potential investor or lender needs to know.

For instance, you may ask yourself these questions to plan this section:

• What is the size and legal structure of your hotel? (e.g., LLC, corporation, sole proprietorship, partnership)
• Who are the hotel owners or shareholders?
• What is your business’s background and founding story?
• What milestones have you achieved till now?
• What are the short-term goals and long-term objectives?

Overall, your company overview section is an in-depth understanding of your business, so make it engaging and to the point.

3. Market Analysis

The market analysis section of a business plan provides a thorough explanation of the hospitality industry based on the scale of your hotel.

So, you’ll need to conduct comprehensive market research and industry analysis to identify the market size & growth potential, target market, customer behavior, market demand, and regulatory environment.

In addition to that, you may include data on market trends that might impact your business, such as technology, politics, environmental concerns, or global health issues.

This way, you can position your business strategically and justify your hotel’s future growth in the current market.

4. Competitive Analysis

Competitive analysis is a meticulous study of your key competitors depending on where your hotel is located.

Here, you should consider including details of your direct and indirect competitors in the local market, along with their strengths & weaknesses.

This section is an important aspect of market research that helps you evaluate the competitive environment and determine what sets you apart from others. You can even explain your competitive advantages and identify your USPs.

5. Service Offerings

In this section, you should mention details of the primary services and amenities you plan to offer.

You may include different types of rooms and amenities available, any special services such as event hosting, spas, restaurants, and any unique products offered.

This will help investors understand what exactly your business offers, how much it charges, and what value it brings to the market.

6. Sales and Marketing Strategies

The sales and marketing plan outlines promotional strategies and tactics you’ll use to reach your target audiences and maximize revenue.

It involves careful consideration of several key aspects, like who you’re trying to reach, what message you want to tell them, and how you plan to attract and retain them.

A well-crafted sales and marketing plan is essential for brand awareness, revenue growth, profitability, and long-term success, as it ensures your hotel stands out and thrives in the hospitality industry.

As a hotel business owner, your strategies may include online and offline marketing or external promotional campaigns that must align with your hotel’s goals and objectives. For example:

• Unique Selling Propositions(USPs)
• Social media marketing
• Strong web presence
• Word-of-mouth promotions
• Networking with other businesses

Well, this section assists potential investors to better understand how you’ll promote your business and generate bookings.

7. Management Team

The management team section is an integral part of a hotel business plan as it introduces the hotel owners, key executives, and managers.

So, you may consider highlighting their roles and responsibilities, qualifications, industry experience, and expertise that help grow your hotel business. For easy understanding, refer to the below hotel owner profile:

Apart from that, clearly explain your compensation plan and organizational structure that will help you make better strategic decisions. You can even give brief bios of your external advisors, consultants, or board members(if any).

8. Operations Plan

The operations plan describes the day-to-day business operations and activities that keep your hotel running smoothly.

For instance, you may consider including insights into the operational structure of your hotel and details about facilities management, staffing & training, customer service policies, and administrative processes.

Additionally, you can mention any technology or systems that will be used to support hotel operations.

9. Financial Plan

Preparing a strong financial plan with realistic financial projections is very crucial in business planning. Typically, it covers the financial projections for the first few years.

Your hotel financial plan offers a detailed roadmap for the hotel’s financial future, summarizing sales & revenue projections, cash flow estimates, balance sheets, and profit & loss statements.

Besides these financial statements, you may consider adding your financial requirements, startup costs, and risk analysis & mitigation plan.

Simply put, a well-written financial plan provides a clear understanding of the ROI potential and ensures the hotel’s success and long-term sustainability.

10. Appendix

In the appendix, you can attach any supporting documents that don’t fit into specific sections but support your plan. It includes

• Market research data and surveys
• Licenses & permits
• Leases or contracts
• Resumes of key executives
• Architectural blueprint of the facility

You may also include any additional documents or attachments that your readers might use for reference.

Download Free Hotel Business Plan Template

Need extra help or any sample business plan to start writing your hotel business plan? Well, here you go; download our free hotel business plan pdf now and get started.

This advanced business plan template has been specifically designed for your hotel business. With step-by-step instructions and examples, it assists you in developing your own plan.

Simply import data into your editor and use it as a reference!

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

Start Preparing Your Business Plan with AI

Drafting a comprehensive business plan from scratch can be an overwhelming task, right? But not to worry; Upmetrics can be your savior here!

It’s a modern, AI business plan generator that helps small business owners and new entrepreneurs create professional business plans in minutes.

From easy-to-follow guides and 400+ sample business plans to financial forecasting features, Upmetrics offers everything to streamline the entire business planning process.

So, wait no longer; start preparing your plan!

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Guide to Making a Business Plan Presentation

Frequently asked questions, do i need to include financial projections in my hotel business plan.

Of course, you have to include projections in your hotel business plan. These projections help you present a complete overview of your financial strategy and the financial viability of your hotel. Also, you can show your business’s profitability to attract potential investors or financial institutions and secure funding or loans.

What marketing strategies are effective for a new hotel?

For a new hotel, these marketing strategies are the most effective ones:

• Developing and optimizing a professional website for your hotel
• Leveraging social media channels and email marketing
• Utilizing Online Travel Agencies (OTAs) for bookings
• Advertising through events or travel trade shows
• Offering loyalty or referral programs

Where can I find resources and templates for writing a hotel business plan?

Using business planning software like Upmetrics can be a good choice. It provides hundreds of business resources and a sample hotel business plan template to write your hotel business plan. Simply export the template in the editor and finish your plan in a few hours.

What tips can help secure funding for a hotel business?

If you want to secure funding for your hotel, consider following these tips:

• Writing a comprehensive business plan
• Showcasing the potential profitability of your hotel
• Reaching out to family and friends for investments
• Creating a polished & compelling pitch
• Visiting hotel industry conferences and events

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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Blog   >   Running your property

Hotel business plan: Beginners guide

Last Updated 20/05/2024

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What is a hotel business plan?

A hotel business plan is a formal document that provides a detailed roadmap for a hotel project, outlining everything from its goals and target market to the products and services it will offer, marketing strategies, and financial projections.

Hotel business plans are important tools for starting a new hotel business because they establish credibility and provide blueprints for achieving profitability and success over the long term.

By creating a business plan, you can ensure that you have a clear understanding of what you need to do to achieve your goals and how to make your hotel project a success.

In this blog, we’ll run through why it’s so important to have a good plan in place, what you need to include in it, and how to get started on your business plan with ease.

All-in-one management system for hotels

Bring your hotel business plan to life with easy-to-use software features: front desk, housekeeping, payments, and more.

Why do you need a hotel business plan?

Working things out as you go might be okay when you’re putting together flat-pack furniture or starting a new hobby, but a hotel business is an entirely different matter. Having a business plan in place is a no-brainer. There are many reasons to set aside a little time and get started on a plan.

It can help you:

• Work out whether you even want to go ahead with your idea
• Decide what you need to push forward with your hotel business
• Persuade business partners to work with you
• Gain confidence and prove to yourself that your business is feasible
• Get more control over your business and prioritise the recipes for success
• Evaluate whether you’re where you want to be at different points down the track

Most of all, a business plan will help you make better decisions as you grow your business. Research shows that having a business plan could help your business grow 30% faster and protect against business failure. 

Starting your hotel business plan

The main message here is to simply make a start. Don’t just read this blog, agree a plan is a great idea, and vaguely consider writing it at some stage. 

Take the first step now. You can even start jotting down points as you read through the 4 most important parts of a hotel business plan:

Executive summary and overview

The executive summary and overview are at the start of a business plan but are often easier to write towards the end of the process.

This section is short and sweet; generally only one or two pages. It’s often the only part people read, so give it the attention it deserves.

Get to the point quickly, setting out:

• Your vision : For Disney it was to “make people happy” while for Instagram it was to “capture and share the world’s moments.” What’s your aspirational, big-picture vision for your small business?
• Your mission : This describes, in a sentence or paragraph, the very reason your property exists today: what guests does it cater to and how does it satisfy guest expectations?
• Your goals : Describe here your main business objectives and when you are hoping to achieve them. Make them measurable, such as achieving a 90% occupancy rate and 25% increase in website leads within two years.

Here, you also have the opportunity to capture your brand identity, the colours, logo, font and design that communicate what your business is all about. 

Remember, this is the most important part of your plan. Once you’ve written it, ask yourself these two questions:  

• Does it capture your excitement and enthusiasm?
• Is it persuasive and engaging? 

If not, put in a little extra work. You really want to capture your idea here and create something that will help you with the big (and little) decisions going forward.

Hotel industry, market, and competitor analysis

Take a broad look at the industry, gain a clear understanding of the market and your competition and set out why customers will come to your hotel rather than another one down the road.

Start with an industry analysis

Your hotel business is part of the broader hospitality and tourism industries. Do a little research on the issues and trends affecting these sectors? How are things like technology, the economy, politics, environmental issues and global health issues impacting hotels – particularly those that are similar to yours? Are there any red flags?

Next, hone in on your competitors

Who are your competitors? Focus especially on your direct, local competitors. What are they doing right, and wrong? 

You also need to build a clear picture of your ideal guests. Who are the people your hotel caters to? Will it be families from the city with younger children who need a break? Or cashed-up couples looking for a cosy retreat? Try to include as much information as possible, from education levels to personality, lifestyle and purchasing habits.

This competitor and guest deep dive leads you straight into one of the most important questions your business plan should answer.

What is your unique selling point (USP)? That is, what makes you different from your competitors? Why would that point of difference sway guests to choose you over your competition? What really makes your accommodation stand out from the crowd?

Hotel’s services and amenities

This section of your plan narrows the focus and puts your hotel in the spotlight. It’s a summary of the key services and amenities that will be offered, and builds a detailed picture of what it might be like to stay at your hotel.

When building this list, think about including:

• Your hotel’s location (In the tropics? A pool might be top of the list.)
• Your ideal guests’ dietary needs (Catering to a fit bunch? A healthy breakfast menu might be a must.) 
• Your ideal guests’ views on sustainability (Can you incorporate sustainability into your policies?)
• Your ideal guests’ budget (Will they be more likely to book if you have a clear and generous cancellation and refund policy?)
• Your ideal guests’ social media activity (Will an “Insta” booth at check-in excite your guests and fit in with your social media marketing strategy?)
• Your hotel’s physical scope and characteristics (Is there a huge room you could offer out as a conference venue to create an additional income stream?)

Start your hotel business right

See how you can easily manage hotel operations all in one place, gain more control over your small property, and increase revenue.

Business operations, management, and marketing 

Outlining how your hotel will function and make money from day to day is another important consideration. It should cover these four key areas:

Hotel Operations

The area of operations is about having the right people and putting in place the right processes. 

Create a list of key tasks and responsibilities and work out whether you’ll need to outsource anything. Will you need to employ or contract someone to help? Will you need to train yourself up in an area so you can cover some of the responsibilities? 

What policies and manuals will you need to create? How will you set up processes around managing people, suppliers, service standards and inventory? 

Hotel Marketing

Your marketing strategy is a plan to help you reach the right people at the right time with the right message. Think carefully about these three things: who you’re trying to reach, when you should be reaching them and the message that you’re trying to put in front of those people.

To get the word out, some options to consider are:

• Advertising with traditional and digital channels
• Creating a loyalty program
• Content marketing
• Social media
• Email marketing
• Online reviews
• Search engine optimisation (SEO).

To create the most effective marketing strategy, also take a look at what your competitors are doing and lean into digital marketing , which can be a fast, effective and affordable way to grow your business. 

Hotel Distribution

Your distribution strategy outlines how you will sell and manage your rooms, whether that’s through your own website, third party websites, or through a traditional travel agent. 

You need to decide how to best sell your rooms, from both a financial and operational view. Remember, hiccups like double bookings can cause ripples that impact your guests’ experience and your business. Consider a channel manager as part of your distribution plan to streamline things and avoid those pesky hiccups.

Hotel revenue and pricing

At the end of the day your business needs to be profitable (or at least break even!) to exist, so you need to aim to keep your business in the green.

Put some thought into the types of rooms you have to sell and setting your price points. Also cover things like offers and discounts, cancellation and refund policies, payment options and rate parity.

Alison Miers,

Bay Breeze Motel

Keys to your hotel’s financial business plan

Here, you’ll need to dig into the specifics of how much money you’ll need to set up the business (capital investment), how you’ll keep it running at a profit, and your projected return on investment (ROI).

Topics to cover include:

• Your chosen business structure (partnership or company, for example?)
• Your business model
• Start-up and ongoing costs and budgets
• Managing the books, accounting and tax 
• Necessary insurance and permits
• Critical suppliers and partnerships.

These areas can be complex, so consider getting a professional on board when putting together this part of your plan.

Hotel business plan: Next steps

Remember, the first step in turning your business dreams into reality is putting it in writing – in the form of a business plan.

If you’re feeling overwhelmed, take it section by section and start with the part you find easiest to tackle first. 

Once your hotel business plan is complete, use it to:

• Create a list of specific goals and tasks that need to be achieved and completed to get your idea off the ground.
• Prioritise the things on your action plan and set clear timeframes.
• Bring on board any people you need to take responsibility for things on your plan.

Keep in mind that as your business idea develops, or your business continues to grow, you may need to tweak and update your business plan.

It’s even useful to review the plan at set intervals of say six months or a year, so you can get an idea of who you’re tracking and look at your goals. Are they still goals that you are working towards? Or do you need to change them to better reflect where you’d like to be?

Another thing to keep in mind as you prepare your plan and put it into action is the power of hotel technology , which can truly transform your business, make day-to-day operations easier and boost revenue.

Taking action on hotel business plans with Little Hotelier

Whether you’ve been running your small hotel business for a while or you’re yet to get your boutique hotel off the ground, following through your hotel business plan is always a good idea.

With an all-in-one technology platform like Little Hotelier, implementing your hotel business plan can become a breeze. Here’s a glimpse of how easy it can be:

• Manage your hotel business operations from reservations to housekeeping, all from one place, and save time from manual data entry into multiple systems
• Market your hotel in over 450 distribution channels through and automatically update room rates and availability across all of them with just one click
• Multiply your hotel reservations without the risk of double or over bookings through an online booking engine that enables guests to book directly with you
• Maximise your revenue using insights from hotel performance reports and leverage on dynamic pricing capabilities to reach your business goals

By Dean Elphick Dean is the Senior Content Marketing Specialist of Little Hotelier, the all-in-one software solution purpose-built to make the lives of small accommodation providers easier. Dean has made writing and creating content his passion for the entirety of his professional life, which includes more than six years at Little Hotelier. Through content, Dean aims to provide education, inspiration, assistance, and, ultimately, value for small accommodation businesses looking to improve the way they run their operations (and live their life).

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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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What is a Hotel Business Plan, and Why Do You Need One

90,562 hotels and motels were operating across the United States in 2022, offering travelers more than five million bookable guest rooms .   

That is a lot of competition. And precisely the reason why you need a hotel business plan.   

With this plan, you convince financial institutions that your hotel is a more valuable investment opportunity than thousands of others. You also have a reliable resource to guide you to opening day, help you navigate every trial that comes with running a hotel, and provide a set framework to support your staff.  

In this post, we explain what a hotel business plan is, the benefits it offers, the most useful information to include, and a few issues to avoid during planning. Let’s get started!  

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What is a hotel business plan?  

A hotel business plan is a detailed roadmap for turning your business idea into a successful, fully operational hotel. The plan outlines the overarching approach to your long-term goals, establishes tangible benchmarks with set timelines to work toward, and identifies the operational processes that will support long-term and short-term business goals.  

Key benefits of a hotel business plan  

You know what a hotel business plan is and why you need one, but what are the benefits? What really makes the effort spent drafting a business plan so worth it?  

Clarity and direction  

Creating a reliable hotel business plan supports you in every stage of development. From initial drafting and meeting with investors to officially welcoming guests, you have clarity in your current phase and direction for the next. With your business plan, distinct internal practices keep you on track, and a well-defined strategy amplifies your negotiating position with partners and investors. Once funding is secured and operations begin, your business plan provides clear direction for a well-trained team, ensuring all staff and management work cohesively toward shared objectives.  

Securing financing  

For new hotels or those looking to expand, convincing banks, investors, and other financial institutions of your hotel’s inherent value and financial viability is crucial. When you present a well-prepared business plan to financial entities, offering detailed research and transparent monetary projections, you increase the chances of securing funding for operational developments, property renovations, or expansion projects. With a hotel business plan amplifying your negotiating position, the notoriously difficult process of securing finances becomes more manageable.   

Calculated decision making  

In the densely competitive hospitality industry , effective decision-making can mean the difference between a prosperous hotel and a failed one. With your business plan in place, you can routinely reference the document to identify potential growth prospects , assess risks and value, and allocate resources and time wisely. By basing decisions on a consistent framework grounded in trusted research and strategic foresight, you can navigate market fluctuations, adapt to shifting customer demands, capitalize on new opportunities, and ensure every choice made is the best option for your hotel.  

Priority management  

Running a hotel requires a skillful balance of priorities, from upholding guest standards and managing teams to maintaining efficient operations and driving profitability. With a strategic business plan, you can identify which priorities have the most emergent need, where resources can be allocated most effectively, and guarantee every aspect of your hotel is properly maintained to maximize performance.  

Performance tracking  

A significant benefit of a well-crafted business plan is a clear outline of measurable performance goals . Pairing implementation strategies with routine progress tracking, result evaluation, and data-driven adjustments supports continuous improvement and upholds a competitive edge.  

Important metrics to track include:  

• Occupancy rates  
• Average daily rates (ADR)  
• Guest satisfaction scores  
• Revenue per available room (RevPAR)  

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What is included in a hotel business plan?  

Now that you know the benefits of a hotel business plan, the decision to make one is easy! While the planning itself can be complex, below are suggestions for ideal sections to include in a successful plan to streamline the process.  

Executive summary  

The executive summary provides a brief overview of the purpose of your hotel business plan. It’s crucial to make this part of your plan clear and captivating despite its short length, as many investors, partners, and stakeholders decide whether your business is worth their time based solely on this summary.  

Your executive summary should feature the following:  

• Your hotel’s mission and vision.  
• A unique selling proposition (USP), like a highly sought-after location or special emphasis on technology.  
• Financial metrics and projections to explain why your hotel is the best investment opportunity.  

Company description  

The company description is a crucial selling point for investors and stakeholders. Here, you can explain why investing in your hotel is worth their time and money.   

• Share your concept and operational strategies in detail.  
• Describe the target market and guest experience you will deliver.   
• Explain what superior offerings set your hotel apart from your competitors and place your business at the forefront of the hospitality industry.  

Market analysis  

A business idea is only meaningful with thorough industry knowledge, and the market analysis section of a hotel business plan is your chance to show what you know. Include the following information to convey your understanding of the hotel industry and justify the demand for your hotel.  

Target market segments  

A clear grasp of target market segments tells investors you understand your potential customers and can successfully personalize services, amenities , and marketing campaigns to spur guest satisfaction and loyalty .  

Industry trends  

Analyzing industry trends identifies how your hotel can capitalize on current and emerging opportunities and communicates to investors that you are prepared to lead and evolve.  

Competitor analysis  

A competitor analysis outlines your hotel's strategic positioning, solidifies your competitive advantage, and reassures investors that your business is viable.  

Potential market share  

Determining potential market share helps estimate the market percentage your hotel will likely capture. This projection demonstrates your hotel’s growth potential, which attracts investor interest.  

Marketing strategy  

Similar to market analysis, your marketing strategy proves you understand and are prepared for the competitive nature of the hotel industry. This section should include actionable marketing plans demonstrating your ability to engage and retain customers to maximize bookings and meet revenue goals. A winning marketing plan outlines:   

• Branding details  
• Pricing structures  
• Advertising campaigns  
• Promotions and offers  
• Distribution channels  

Operations plan  

Now that you’ve pitched your hotel idea and proven you have reliable industry knowledge, it’s time to cover the day-to-day details. The operations plan should address everything from hiring staff and managing systems to maintenance protocols and guest service standards, all of which contribute to business efficiency, superior service, and guest enjoyment. This section is essential because it shows you are ready to put your concept into action and recognize that attention to logistical details is necessary for running a properly functioning, highly competitive hotel.  

Customer service strategy  

TrustYou reports that prioritizing quality customer service can boost a hotel's impact score by more than seven points. Since enjoyable guest experiences are indispensable for gaining new customers and convincing existing ones to rebook, it’s essential to highlight your commitment to creating invaluable experiences when meeting with investors.  

In your customer service strategy, provide in-depth plans for achieving and sustaining high levels of guest satisfaction. Explain how staff training will set clear expectations for guest experience standards and how guest feedback will be implemented to improve the team’s ability to foster positive guest communication and interactions.   

Mentioning loyalty programs in this section can also be beneficial, as it underscores your appreciation for guest experiences and the opportunities they provide.  

Technology plan  

While some guests favor in-person hotel interactions, 73 percent prefer a self-service approach . Offering face-to-face and technology-based options shows you understand and respect all guest preferences, making the guest experience as agreeable as possible. This approach also supports guest retention, which appeals to investors.   

What’s more, a technology plan effectively supports staff, management, and the overall operation of your hotel, keeping it competitive in a saturated market and improving viability. In this business plan section, specify how and why your hotel will implement advanced technology.  

• Why are predictive maintenance tools essential to keep your hotel in peak condition?  
• Which property management system (PMS) will you utilize for in-room technology?  
• How will revenue management systems optimize your revenue per available room (RevPAR)?  

Financial plan  

Money matters at every potential investor and stakeholder meeting; a hotel business plan accounts for that. Ensure assumptions are realistic and calculations are clear to build credibility and assess your hotel’s economic feasibility. This information also allows potential investors to evaluate the expected return on investment (ROI) and you to review financial performance against benchmarks.  

The financial plan must include the following financial projections:  

• Startup costs  
• Revenue forecasts  
• Expense estimates  
• Profitability analysis  

Sustainability practices  

With 78 percent of travelers reporting intentions to stay in an environmentally conscious hotel on at least one occasion, it’s essential to consider sustainability practices alongside your financial projections.  

Eco-friendly hotel initiatives express a commitment to environmental responsibility, which appeals to travelers, builds customer loyalty, and supports a positive brand image. Competitive advantage and long-term viability also increase with sustainable practices, as your hotel can secure cost savings by using inventory management systems for waste reduction or offering by-request laundry services for energy efficiency.  

Common planning issues and how to avoid them  

Your business plan is meant to be a long-term resource for your hotel, but certain issues can disrupt its effectiveness. Below are a few common planning issues business owners encounter and how to avoid them.  

1. Underestimating costs  

Many hotel owners have experienced the debilitating impact of poor financial planning. Underestimating costs severely impairs your hotel’s operational sustainability and growth , and closure is inevitable unless immediate adjustments are made.  

Solutions:    

• Consider every expense. When drafting your hotel business plan, consider every expense that needs to be accounted for. Don’t overlook initial setup costs, potential renovations, marketing funds, or high operational costs.  
• Plan for the unexpected. Emergency expenses can negatively impact your hotel’s budget even with a solid financial foundation. Including a generous contingency fund in your financial plans provides security from these unforeseen expenses.   
• Review, and review again. Wise budget use and good choices depend on consistent review. By comparing projections to actual expenses, you can identify and address discrepancies before a crisis occurs.  

2. Ignoring technological advancements  

In 2023, nearly 61 percent of surveyed hotels reported being likely to increase their technology investments over the next three years. As a new or improving hotel, it is essential to prioritize technology funding when drafting your business plan, as being wary of technology will severely limit your hotel’s ability to thrive.  

Solutions:  

• Stay informed. Regularly research the latest technology trends in the hospitality industry to see which technology is being implemented and why. Subscribing to industry publications and attending hospitality tech conferences are clear-cut ways to stay informed and invest in the best technology .  
• Start small. Implementing advanced technology can be intimidating, but you don’t have to dive in head first. Start small and prioritize the guest experience; chatbots or mobile check-ins are great options. When you see positive results and feel comfortable with more extensive changes, you can consider system revamps or smart room technology.  
• Invest in training. Your technology plan should include training strategies. Implementing advanced technology without teaching your team how to interpret results or troubleshoot potential hiccups is a recipe for disaster.  

3. Lack of Market Research  

Sound market research is the foundation for a reliable hotel business plan. However, lacking market research results in misguided strategies, hurts your chances of receiving investments, and puts you miles behind your competitors.  

• Conduct competitor evaluations. Financial institutions, guests, and employees need to be convinced that your hotel is the best choice for their investments, stays, and time. By identifying market gaps, you can capitalize on services and experiences that your competitors are neglecting.  
• Review demographic studies. Understanding guest behaviors and preferences shows you care about the guest experience. With the information gathered from demographic studies, you can improve your marketing strategies and offer personalized experiences to build brand loyalty.  
• Consider trend analyses. Knowing the latest industry trends is key to accommodating guest needs and outperforming competitors. With trend analyses to forecast future guest expectations, new technologies, and market demand fluctuations, your hotel can offer original solutions that attract guests and investors.  

Conclusion  

Drafting a dependable hotel business plan requires time and dedication, just like running a hotel. With your thoroughly researched, expertly crafted plan, you are prepared to take on every hurdle and celebrate every win your hotel experiences.  

For more ideas to support your hotel’s success, check out our tips for boosting hotel sales .  

Devyn Rheuby

Dev is a San Francisco-based content marketer specializing in article and eBook writing for tech and B2B companies. When she’s not working, she tries new coffee shops, reads fiction and fantasy series, and plays The Sims 4.

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Here is a free business plan sample for a hotel.

Have you ever envisioned opening the doors to your very own hotel, creating a home away from home for travelers, but find yourself unsure of where to start?

In the content that follows, we will guide you through a comprehensive business plan tailored specifically for the hotel industry.

As any seasoned hotelier will tell you, a meticulously formulated business plan is crucial to thriving in the hospitality world. It serves as a roadmap, outlining your vision, objectives, and the strategies you will employ to turn your hotel into a successful venture.

To streamline your planning process and set a solid foundation for your hotel business, feel free to utilize our hotel business plan template. Additionally, our team of experts is on standby to review and refine your plan at no extra cost.

How to draft a great business plan for your hotel?

A good business plan for a hotel must reflect the unique aspects of the hospitality industry.

To start, it is crucial to provide a comprehensive overview of the hotel market. This includes current statistics and identifying emerging trends within the industry, as illustrated in our hotel business plan template .

Then, you should articulate your project with clarity. This encompasses your vision, pinpointing your target market (such as leisure travelers, business clients, event planners), and the distinctive positioning of your hotel (luxury, boutique, budget-friendly, eco-conscious, etc.).

The subsequent section should delve into market analysis. This requires a thorough understanding of the competitive landscape, market dynamics, and guest preferences.

For a hotel, particular emphasis should be placed on the services and amenities you plan to provide. Detail your offerings - rooms, suites, conference facilities, spa services, dining options - and explain how they cater to the needs and expectations of your intended guests.

The operational plan is equally vital. It should outline the location of your hotel, the layout of guest rooms and public spaces, vendor relationships for supplies and services, and the operational workflow.

For a hotel, it is important to highlight the quality of customer service, room standards, and adherence to hospitality regulations.

Next, address your marketing and sales strategy. How will you attract and retain guests? Consider promotional tactics, guest loyalty programs, and ancillary services (such as tours, transportation, or special events).

Adopting digital strategies, like a robust website, online booking capabilities, and a social media presence, are also crucial in the modern marketplace.

The financial framework is another critical component. This includes the initial investment, revenue projections, operating expenses, and the break-even analysis.

In a hotel, managing cash flow is complex due to the high fixed costs and seasonal fluctuations, so precise planning and a solid understanding of your financials are imperative. For assistance, refer to our financial forecast for a hotel .

Compared to other business plans, a hotel's plan must pay special attention to factors such as location desirability, guest experience, staff training and retention, and the impact of online reviews and ratings.

A well-crafted business plan will not only help the hotelier to define their vision and strategies but also to attract investors or secure loans.

Lenders and investors seek robust market analysis, realistic financial projections, and a comprehensive grasp of the hotel's day-to-day operations.

By presenting a thorough and substantiated plan, you showcase your credibility and dedication to the success of your hotel venture.

To achieve these goals while saving time, you can simply fill out our hotel business plan template .

A free example of business plan for a hotel

Here, we will provide a concise and illustrative example of a business plan for a specific project.

This example aims to provide an overview of the essential components of a business plan. It is important to note that this version is only a summary. As it stands, this business plan is not sufficiently developed to support a profitability strategy or convince a bank to provide financing.

To be effective, the business plan should be significantly more detailed, including up-to-date market data, more persuasive arguments, a thorough market study, a three-year action plan, as well as detailed financial tables such as a projected income statement, projected balance sheet, cash flow budget, and break-even analysis.

All these elements have been thoroughly included by our experts in the business plan template they have designed for a hotel .

Here, we will follow the same structure as in our business plan template.

Market Opportunity

Market data and figures.

The hotel industry is a significant component of the global tourism sector with substantial economic impact.

Recent estimates place the global hotel market value at approximately 570 billion dollars, with projections indicating growth as travel demand increases post-pandemic.

In the United States alone, there are over 54,000 hotel properties, contributing to an annual revenue of nearly 200 billion dollars for the hotel industry.

These statistics underscore the hotel industry's vital role in not only accommodating travelers but also in driving economic growth and employment.

The hotel industry is witnessing several evolving trends that are shaping the future of hospitality.

Personalization and experience-driven stays are at the forefront, with guests seeking unique and memorable experiences tailored to their preferences.

Sustainability is becoming increasingly important, with eco-friendly practices and green hotels gaining traction among environmentally conscious travelers.

Technology integration, such as contactless check-in, smart rooms, and AI-driven customer service, is enhancing operational efficiency and guest satisfaction.

The rise of alternative lodging options like boutique hotels and vacation rentals is also influencing the market, offering travelers more diverse choices.

Health and wellness have become a priority, leading to the integration of wellness amenities such as spas, fitness centers, and healthy dining options within hotels.

These trends highlight the hotel industry's adaptability and its commitment to meeting the evolving needs of modern travelers.

Success Factors

Several key factors contribute to the success of a hotel.

Location remains a critical aspect, with hotels in prime destinations or convenient locales more likely to attract guests.

Quality of service is paramount, as exceptional guest experiences can lead to repeat business and positive word-of-mouth referrals.

Modern amenities and comfort are essential for meeting guest expectations and staying competitive in the market.

Brand reputation and online presence, including positive reviews and ratings on travel sites, significantly influence booking decisions.

Adaptability to market trends, such as offering sustainable options or incorporating cutting-edge technology, can set a hotel apart from its competitors.

Lastly, effective cost management and strategic marketing are crucial for maintaining profitability and ensuring the long-term success of a hotel.

The Project

Project presentation.

Our hotel project is designed to cater to the needs of travelers seeking a comfortable and accommodating stay without compromising on their health and lifestyle preferences. Situated in a prime location with easy access to tourist attractions and business centers, our hotel will offer a range of amenities tailored to guests who prioritize wellness and sustainability. The hotel will feature hypoallergenic rooms, organic bedding, a fitness center, a spa offering natural treatments, and a dining area serving nutritious, locally-sourced food with options for various dietary requirements, including gluten-free, vegan, and vegetarian meals.

The emphasis will be on providing a restorative and rejuvenating experience, allowing guests to maintain their healthy routines while away from home.

Our hotel aspires to be a leader in the wellness hospitality sector, setting a new standard for health-conscious travel and accommodation.

Value Proposition

The value proposition of our hotel project is centered around offering a holistic and health-focused lodging experience. We understand the importance of maintaining a balanced lifestyle, and our hotel is committed to providing an environment that supports the well-being of our guests.

From our fitness and spa facilities to our dining options and eco-friendly practices, we aim to ensure that every aspect of our guests' stay contributes to their health, comfort, and satisfaction.

We are dedicated to creating a space where travelers can feel rejuvenated and aligned with their wellness goals, making our hotel the preferred choice for health-conscious individuals and those seeking a restful retreat.

Our commitment to excellence in service and our focus on well-being will establish our hotel as a cornerstone in the community for sustainable and healthy travel.

Project Owner

The project owner is a seasoned hospitality professional with a passion for wellness and sustainable living. With a background in hotel management and a personal commitment to health and the environment, they are driven to create a hotel that exemplifies these values.

Armed with industry experience and a forward-thinking approach, the project owner is dedicated to innovating the hospitality experience by integrating wellness into every aspect of the hotel's operations.

With a vision of promoting sustainable travel and a healthy lifestyle, they are determined to offer a unique lodging experience that not only meets the expectations of guests but also inspires them to prioritize their well-being even when on the road.

Their dedication to creating a nurturing and eco-friendly environment is the driving force behind this project, aiming to set a new benchmark for wellness-oriented hotels.

The Market Study

Market segments.

The market segments for this boutique hotel are divided into several categories.

First, there are business travelers who require comfortable and convenient accommodations with amenities that support their work-related needs.

Next, there are leisure travelers, including couples, families, and solo adventurers, looking for unique experiences and personalized service.

The market also includes event planners and organizations seeking venues for meetings, conferences, or special events.

Finally, local residents may seek the hotel for staycations, dining experiences, or as a venue for personal events such as weddings or parties.

SWOT Analysis

A SWOT analysis of this boutique hotel project reveals several aspects.

Strengths include a prime location, personalized customer service, unique thematic rooms, and high-quality amenities.

Weaknesses could include the high operational costs associated with maintaining a luxury experience and the challenge of building brand recognition in a competitive market.

Opportunities lie in capitalizing on the growing trend of experiential travel, forming partnerships with local businesses, and leveraging online marketing to reach a global audience.

Finally, threats could include economic downturns affecting travel spending, the rise of alternative accommodation options like Airbnb, and the need to constantly innovate to stay ahead of competitors.

Competitor Analysis

Competitor analysis in the boutique hotel sector reveals a diverse range of players.

Among direct competitors are other boutique hotels, luxury chains, and alternative accommodations offering unique experiences.

These competitors vie for discerning travelers who seek more than just a place to stay but a memorable experience.

Potential competitive advantages include exceptional service, exclusive amenities, a strong brand story, and a commitment to sustainability and local culture.

Understanding competitors' strengths and weaknesses is crucial for carving out a niche in the market and for customer acquisition and loyalty.

Competitive Advantages

Our boutique hotel's competitive advantages lie in our dedication to creating an immersive experience for our guests.

We offer uniquely designed rooms, each telling a different story, and personalized services that cater to the individual needs of our guests.

Our strategic partnerships with local artisans and businesses allow us to provide authentic local experiences, setting us apart from generic accommodations.

We are committed to sustainability, ensuring that our operations have a minimal environmental impact, which resonates with eco-conscious travelers.

You can also read our articles about: - how to establish a hotel: a complete guide - the customer segments of a hotel - the competition study for a hotel

The Strategy

Development plan.

Our three-year development plan for the boutique hotel is designed to establish a strong foothold in the hospitality market.

In the first year, our goal is to build a solid reputation for exceptional service and unique guest experiences, focusing on local and regional markets.

The second year will be geared towards expanding our marketing efforts to attract international travelers and implementing sustainability practices to enhance our eco-friendly brand image.

In the third year, we plan to explore additional services such as event hosting and wellness retreats, further differentiating our hotel in the competitive landscape.

Throughout this period, we will continuously seek to innovate and improve our offerings, ensuring that we remain a preferred choice for discerning travelers.

Business Model Canvas

The Business Model Canvas for our boutique hotel targets travelers seeking personalized experiences, luxury accommodations, and health-conscious amenities.

Our value proposition revolves around providing a unique and memorable stay, with a focus on wellness, local culture, and personalized service.

We offer our services through direct bookings via our website and partnerships with travel agencies, utilizing our key resources such as our well-trained staff, luxurious facilities, and prime location.

Key activities include guest services, facility maintenance, and creating tailored experiences for our guests.

Our revenue streams are generated from room bookings, on-site dining, and additional services, while our costs are associated with operations, staffing, and marketing efforts.

Find a complete and editable real Business Model Canvas in our business plan template .

Marketing Strategy

Our marketing strategy is centered on creating a strong brand presence and showcasing our unique selling points.

We aim to attract guests by highlighting our hotel's bespoke experiences, wellness focus, and commitment to sustainability. Our approach includes targeted online campaigns, partnerships with luxury travel influencers, and engagement with travel communities.

We will also collaborate with local businesses and cultural institutions to offer exclusive packages and promote local tourism.

Utilizing social media, we plan to share guest stories and testimonials to build trust and encourage word-of-mouth referrals.

Risk Policy

The risk policy for our boutique hotel focuses on mitigating risks associated with the hospitality industry, such as fluctuating occupancy rates and guest satisfaction.

We will implement dynamic pricing strategies to optimize revenue and maintain a high standard of service to ensure repeat business.

Regular training for staff will be conducted to uphold service quality, and we will invest in robust health and safety protocols to ensure the well-being of our guests and employees.

Additionally, we will secure comprehensive insurance coverage to protect against unforeseen events and liabilities.

Why Our Project is Viable

We are confident in the viability of our boutique hotel project, given the growing demand for unique travel experiences and personalized service.

With our focus on wellness, local culture, and sustainability, we believe we can attract a niche market of travelers and establish a loyal customer base.

We are committed to adapting to market trends and guest feedback to ensure the success of our hotel.

We are enthusiastic about the opportunity to create a destination that not only provides a luxurious escape but also enriches the lives of our guests and the local community.

You can also read our articles about: - the Business Model Canvas of a hotel - the marketing strategy for a hotel

The Financial Plan

Of course, the text presented below is far from sufficient to serve as a solid and credible financial analysis for a bank or potential investor. They expect specific numbers, financial statements, and charts demonstrating the profitability of your project.

All these elements are available in our business plan template for a hotel and our financial plan for a hotel .

Initial expenses for our hotel include acquiring or constructing the hotel property, outfitting guest rooms with furniture and amenities suitable for a comfortable stay, designing common areas to meet hospitality standards, investing in a reservation and management system, staff training for exceptional customer service, as well as costs related to brand creation and launching targeted marketing campaigns to attract guests.

Our revenue assumptions are based on a thorough market analysis of the local hospitality industry, considering factors such as tourism trends, business travel patterns, and the competitive landscape.

We anticipate a gradual increase in occupancy rates, starting conservatively and growing as the reputation of our hotel strengthens.

The projected income statement indicates expected revenues from room bookings, ancillary services (such as food and beverage, event hosting, etc.), operational costs (housekeeping, maintenance, utilities), and operating expenses (rent, marketing, salaries, etc.).

This results in a forecasted net profit essential for assessing the long-term viability of our hotel.

The projected balance sheet reflects assets specific to our hotel, such as property, building improvements, furniture, and equipment, and liabilities including mortgages and other anticipated expenses.

It shows the overall financial health of our hotel at the end of each fiscal period.

Our projected cash flow budget details the expected inflows from guest payments and outflows for operational expenses, allowing us to anticipate our cash needs throughout the year. This will enable us to manage our finances effectively and maintain liquidity.

The projected financing plan lists the specific financing sources we plan to use to cover our startup and operational expenses.

The working capital requirement for our hotel will be closely monitored to ensure we have the necessary funds to finance our daily operations, including purchasing supplies, inventory management, and salary payments.

The break-even point specific to our hotel is the level of occupancy and average daily rate needed to cover all our costs, including startup expenses, and begin generating a profit.

It will indicate when our business will become financially sustainable.

Performance indicators we will track include the average occupancy rate, average daily rate (ADR), revenue per available room (RevPAR), the guest satisfaction index to assess service quality, and the return on investment to measure the efficiency of our capital invested in the hotel.

These indicators will help us evaluate the financial performance and overall success of our hotel.

If you want to know more about the financial analysis of this type of activity, please read our article about the financial plan for a hotel .

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Hotel Business Plan Guide + Sample Plan

July 6, 2023

Adam Hoeksema

The hospitality industry offers immense potential, while some might believe that operating a hotel is straightforward, involving only accommodations and foot traffic, careful planning and meticulous execution are essential for achieving success, hence a well-structured business plan is indispensable.

Our primary expertise lies in hotel financial projection models but we understand that some of our clients require comprehensive business plans. That's why we've taken the initiative to delve into this topic and cover the following:

• Why Write a Business Plan For a Hotel?
• What to Include in a Hotel Business Plan?

Hotel Business Plan Outline

How to select a location for a hotel, how to analyze the competition for a hotel, how to create financial projections for a hotel, example hotel business plan, hotel business plan faqs, why write a business plan for a hotel.

For Hoteliers seeking financial support from investors, banks, or financial institutions, a well-structured business plan is a fundamental prerequisite. Demonstrating a thorough evaluation of the market, a clear and strategic approach, and a thoughtful assessment of potential risks and rewards is paramount to attracting the necessary funding for your venture.'

What to include in a hotel business plan?

A hotel business plan should provide investors and lenders with compelling reasons why guests will choose your hotel, demonstrate why you or your team are the ideal operators for the hotel, and present a financial projection that ensures their investment is secure. Below is a comprehensive outline of our complimentary hotel business plan template .

We suggest the following sections for your Hotel business plan

Executive Summary

Company Description

Market Analysis

Product and Service Offerings

Marketing Plan & Customer Acquisition

Operating Plan

Financial Plan

Choosing the right location for your hotel is a critical step in ensuring its success and captivating your target audience. To help you make the best decision, we present three essential points to consider when selecting a location for your hotel  Local Demand and Visitor Profile: Assess the local demand for hotel accommodations in the area. Analyze the type of visitors who frequently visit the locality, such as tourists, business travelers, or event attendees. Understanding the local visitor profile will help you tailor your hotel's offerings to meet their needs and preferences.

Proximity to Key Points of Interest: Look for a location that is in close proximity to key points of interest within the local area. This could include popular tourist attractions, convention centers, business districts, or entertainment venues. Being near such attractions increases the chances of attracting more guests and ensures a steady flow of potential customers.

Accessibility and Transportation Links : Ensure that the location is easily accessible by various modes of transportation. Consider the distance from major transportation hubs like airports, train stations, and bus terminals. Also, evaluate the availability of public transportation options nearby, as this will make it convenient for guests to travel to and from your hotel.

By focusing on these three points, you can identify a suitable local location for your hotel that caters to the specific needs of the local market and maximizes its potential for success.

There are a couple of tools that I like to use when analyzing the competition in the hotel industry. 

Ahrefs – Ahrefs will allow you to look up a competitor hotel's website, and you can see how much organic traffic they are getting and exactly what keywords are sending that traffic. For example, we can see that the Bottleworks Hotel in Indianapolis is receiving roughly 3,500 monthly visits from organic Google Search.  

We can also see what keywords are sending the most traffic to that page below:

By understanding the SEO strategies and keywords that competitor hotels are targeting, you can develop your content and marketing strategies to compete in the same spaces or identify underserved areas to capitalize on. This can assist in improving your hotel's online presence and attracting more guests through search engines.

TripAdvisor – Although mainly known as a review site, TripAdvisor can be a free and powerful tool for analyzing competition within the hotel industry. You can see guest ratings, read reviews, and understand what customers appreciate or dislike about different hotels in your area. This qualitative information can help you identify where your competitors are succeeding or failing and where you might have an opportunity to differentiate your services.

Just like in any industry, the hotel business has its own unique factors that impact financial projections, such as occupancy rates, room pricing, seasonal demand, and guest service expenditures. Utilizing a hotel financial projection template can simplify the process and increase your confidence. Creating accurate financial projections goes beyond showcasing your hotel venture's ability to generate revenue; it's about illustrating the financial roadmap to profitability and the realization of your hospitality goals.

To develop precise projections, consider the following key steps:

Estimate startup costs for your hotel business, including property acquisition or leasing, renovation or construction, furnishing and decoration, staff training, and initial marketing and branding expenses.

Forecast revenue based on projected occupancy rates, average room prices, ancillary service income (such as restaurants, spas, conference facilities), and potential growth in the customer base.

Project costs related to ongoing operations like housekeeping, food and beverage services, guest amenities, and maintenance.

Estimate operating expenses such as staff salaries, utility costs, property insurance, marketing expenses, guest support, and administrative costs.

Calculate the capital needed to launch and sustain your hotel business, covering initial expenses and providing working capital for continued growth, including funds for unforeseen challenges such as seasonal fluctuations.

While financial projections are a critical component of your hotel business plan, seek guidance from experienced professionals in the hotel industry. Adapt your projections based on real-world insights, leverage industry resources, and stay informed about hospitality trends and evolving consumer behavior to ensure your financial plan aligns with your goals and positions your hotel venture for long-term success.

Explore our Hotel Business Plan, presented below. If you prefer, you can access a downloadable Google Doc version of this hotel business plan template , allowing you to personalize and tailor it to your specific needs. Additionally, a helpful video walkthrough is available, guiding you through the process of customizing the business plan to perfectly align with your unique hotel concept.

Table of Contents

1. executive summary.

1.1 Organization Overview

1.2. Objectives

1.3. Mission Statement

2. Organization Description

2.1. Organization History

2.2. Legal Structure

2.3. Unique Value Proposition

2.4. Target Beneficiaries

3. Market Analysis

3.1. industry overview.

3.2. Collaborator and Competitor Identification

3.3. Target Beneficiaries

Key Point  1

4. Marketing and Fundraising

4.1. Strategic Plan

4.2. Program or Service Offerings:

4.4. Distribution Channels

4.5. Promotions and Fundraising

Key Point  2

5. Organizational Structure and Management

5.1. Organization’s Facility & Location

5.2. Staffing Plan and Volunteer Management

5.3. Governance, Financial Management, and Accountability

Key Point  3

6. financial plan.

6.1. Startup Costs

6.3. Expense Projections

6.4. profit and loss statement, 6.5. cash flow projections, 6.6. break-even analysis, 7. appendix.

7.1. Supporting Documents

7.2. Glossary of Term

7.3. References and Resources

Key Point  5

 1.1. company overview.

Briefly introduce the hotel's background, products or services, and target market.

      -  Example: Seaside Crest is a tropical-themed hotel located in Key West, Florida, offering a unique and luxurious experience for guests seeking a beachfront getaway.

   1.2. Objectives

Outlines the hotel's short-term and long-term goals.

        - Example:  Establish Seaside Crest as the premier destination for tropical hospitality in Key West, providing exceptional service and unforgettable experiences for our guests.

        - Example: Long-term: Expand our presence in other tropical destinations while maintaining our commitment to quality and guest satisfaction.

  1.3. Mission Statement

 Describes the hotel's purpose and core values.

        - Example:  At Seaside Crest, our mission is to create a haven of relaxation and tropical paradise for our guests. We are dedicated to delivering exceptional hospitality, breathtaking surroundings, and personalized service, ensuring that every guest's stay is a memorable one.

  1.4. Keys to Success

Highlights the factors that will contribute to the hotel's growth and success.

        - Example:  The success of Seaside Crest lies in our commitment to creating a tropical ambiance, offering top-notch amenities, providing outstanding customer service, and delivering a seamless guest experience. 

2. Company Description

   2.1. company history.

Provides context on the hotel's background and founding story.

        - Example: Seaside Crest is the brainchild of founder and hotelier, Emily Roberts, who envisioned creating a tropical paradise in Key West, Florida. With a passion for hospitality and a deep love for the coastal beauty of the region, Emily embarked on the journey of bringing Seaside Crest to life.

   2.2. Legal Structure

 Describes the hotel's legal structure (e.g., sole proprietorship, partnership, LLC, corporation).

        - Example: Seaside Crest operates as a limited liability corporation (LLC)

 2.3. Unique Selling Proposition

  Emphasizes the hotel's competitive advantage or unique offerings.

        - Example: Seaside Crest distinguishes itself by offering a one-of-a-kind tropical-themed experience, combining luxurious accommodations, breathtaking beachfront views, vibrant island-inspired decor, and personalized service. 

  2.4. Target Market

Defines the hotel's ideal customer base.

        - Example: Seaside Crest caters to discerning travelers and vacationers who seek an extraordinary beachside retreat in Key West, Florida. 

  Presents a general overview of the industry, its trends, and growth potential.

        - Example: The tropical hotel industry in Key West, Florida, is a thriving sector driven by the city's popularity as a tourist destination, the allure of its tropical climate, and the abundance of natural beauty that surrounds it.

3.2. Competitor Analysis

 Evaluates the hotel's direct and indirect competitors, as well as their strengths and weaknesses.

        - Example: Other hotels and resorts in Key West offering tropical-themed accommodations.

        - Example: Vacation rentals, bed and breakfast establishments, and boutique hotels in the area.

3.3. Target Market Analysis

Explores the hotel's target customers, their demographics, preferences, and pain points.

        - Example: Seaside Crest targets vacationers and travelers seeking a tropical getaway in Key West. Our primary market includes couples, honeymooners, and families looking for luxurious accommodations with a distinct tropical ambiance and proximity to the beach.

3.4. Market Opportunities

Identifies potential opportunities for the hotel to grow within the market.

        - Example: Seaside Crest can capitalize on market opportunities by offering unique amenities and experiences such as beachfront dining, spa services inspired by tropical traditions, and curated excursions to explore the natural wonders of Key West. Collaborations with local businesses for island-inspired dining and entertainment can further enhance the guest experience.

• Example 1: Conduct a survey among tourists in the area to determine their preferences for tropical-themed accommodations and their interest in a hotel with a beachfront location. (e.g., 80% of surveyed tourists express a strong preference for hotels with a tropical theme and direct beach access)
• Example 2: Analyze the occupancy rates and average daily rates of existing hotels in Key West to assess the demand and pricing trends in the market. (e.g., The average occupancy rate in Key West hotels during peak season is 85%, indicating a high demand for accommodations)

4. Marketing and Sales Strategy

4.1. product or service offerings: .

Describes the hotel's products or services in detail.

        - Example: Seaside Crest offers a range of tropical-themed accommodations and amenities, including luxury guest rooms, beachfront dining, spa services, and curated excursions.

4.2. Pricing Strategy

 Outlines the hotel's approach to pricing its products or services.

        - Example: Seaside Crest adopts a competitive pricing strategy, providing value for money while maintaining the exclusivity and high-quality experience associated with a tropical-themed hotel.

4.3. Sales Strategy

  Explains how the hotel plans to generate sales and build customer relationships.

        - Seaside Crest will implement a comprehensive sales strategy that includes online booking platforms, direct marketing to travel agencies, and partnerships with local tour operators to attract and engage potential guests.

 Describes the methods through which the hotel will deliver its products or services to customers.

   - Example: Seaside Crest will primarily distribute its services through online travel agencies, direct bookings through its website, and collaborations with travel agencies specializing in tropical getaways.

4.5. Promotions and Advertising

 Details the hotel's promotional efforts and advertising strategies.

        - Example: Seaside Crest will employ targeted marketing initiatives, utilizing social media and search engine platforms, to enhance brand visibility and attract new guests seeking a tropical-themed hotel experience in Key West..

• Example 1: Collaborate with local travel agencies to offer exclusive vacation packages that include a stay at Seaside Crest, showcasing the unique tropical experience and attracting potential guests. (e.g., 50 vacation packages sold within the first month of collaboration)
• Example 2: Organize a pre-launch event at a popular local venue, inviting travel influencers and bloggers to experience a preview of the hotel's amenities and share their impressions on social media. (e.g., 10 influencers with a combined reach of 500,000 followers attend the event and generate significant online buzz)
• Example 3: Offer a giveaway on social media to build a following

5. Facility Maintenance and Operations Plan:

   5.1. facility location and layout.

 Specify the hotel's physical business location and refer to the internal arrangement and organization of the space.

        - Example:Seaside Crest will secure a prime location in Key West, strategically positioned in close proximity to the beach and popular tourist attractions. The hotel's layout will be designed for optimal guest comfort and convenience, with thoughtfully arranged spaces and amenities.

5.2. Safety and Security:

Cover the hotel's comprehensive approach to safety and security, including surveillance systems, access control measures, etc.

        - Example: Seaside Crest will prioritize the safety and security of our guests and staff. We will implement robust security measures, including surveillance systems, access control, and trained personnel to monitor and respond to any potential threats or emergencies.

5.3. Cleaning and Housekeeping:

  Involves the hotel's procedures to ensure high standards of cleanliness, hygiene, etc.

        - Example: Our dedicated housekeeping staff will maintain the highest standards of cleanliness throughout the hotel, including guest rooms, common areas, and amenities. We will follow strict protocols to ensure a hygienic and pleasant environment for our guests.

• Example: The founding team of Seaside Crest includes Sarah Johnson, a seasoned hotelier with over 10 years of experience in managing luxury beachfront resorts, ensuring a deep understanding of the hotel industry's dynamics and customer expectations.
• Bennet  Leifer a renowned interior designer specializing in tropical-themed hospitality spaces, brings his expertise to Seaside Crest, ensuring the hotel's aesthetics align with the target market's preferences and create a memorable guest experience.

5.4. Energy Efficiency:

Involves energy-efficient practices and technologies to minimize energy consumption, reduce utility costs, and promote sustainability 

        - Example: As a responsible and sustainable hotel, Seaside Crest will strive to minimize energy consumption and reduce our environmental impact. We will implement energy-efficient practices, such as using energy-saving appliances, LED lighting, and smart systems for temperature control.

5.4.  Inventory Management:

includes tracking and controlling supplies, equipment, and amenities to optimize operations.

        - Example: Seaside Crest will employ an efficient inventory management system to track and manage hotel resources, including linens, toiletries, and other supplies. This system will ensure optimal inventory levels, minimize waste, and support smooth day-to-day operations.

All of the unique Hotel projections you see here were generated using ProjectionHub’s Hotel Financial Projection Template. Use PH20BP to enjoy a 20% discount on the template. 

   6.1. Startup Costs

  Provide a detailed breakdown of the total startup costs requirements, and where you plan for those funds to come from. You will also want to break down how the startup costs will be used including working capital to cover losses before the business breaks even.

        - Example: The total startup costs for Seaside Crest are estimated at $7,335,552. The owner plans to secure a business loan of $15,000, with  $7,500,000 contributed through personal funds.

6.2. Revenue Projections

Provide an estimate of the hotel's future revenue based on market research and assumptions.

        - Example:  Seaside Crest projects increasing revenue over the next five years, with $3,282,587 in the first year and reaching $5,938,052 by the fifth year.

Watch how to create financial projections for your Hotel

 Estimates the hotel's future expenses, including fixed and variable costs.

        - Example:  Seaside Crest's expenses include cost of goods sold, operating expenses, and direct labor and supply costs for the hotel, restaurant, spa, and events.

Summarizes the hotel's revenue, expenses, and net income over a specific period.

        - Example: Seaside Crest expects to achieve net income of $375,657 in the first year, growing to $1,845,652 by the fifth year, demonstrating a consistent increase in profitability.

 Outlines the hotel's projected cash inflows and outflows.

        - Example: Cash flow projections for Seaside Crest consider the seasonality of the hotel industry, ensuring effective financial management throughout the year.

  Determines the point at which the hotel's revenue equals its expenses.

        - Example: Seaside Crest anticipates reaching its break-even point within the first year of operation, indicating a strong potential for early profitability in the hotel industry.

Key Point  4

• Example 1: Benchmark financial projections against industry averages, such as the average revenue per available room (RevPAR) and average daily rate (ADR) for hotels in Key West, to ensure realistic revenue forecasts. (e.g., Seaside Crest's projected ADR is $250, in line with the average ADR of comparable beachfront hotels)
• Example 2: Analyze historical data from similar hotels in the area to estimate seasonality and demand fluctuations, accounting for factors like peak tourism seasons and local events. (e.g., Seaside Crest projects a 90% occupancy rate during the winter season based on the historical occupancy rates of nearby beachfront hotels)

   7.1. Supporting Documents

 Includes any relevant documentation that supports the information presented in the business plan, such as resumes, financial projections, market research data, and permits or licenses.

   7.2. Glossary of Term

 Provides definitions for industry-specific terms used throughout the business plan to ensure reader comprehension.

   7.3. References and Resources

Lists any sources or resources referenced during the preparation of the business plan, including industry reports, market research data, and relevant publications.

• Example 1: the owners of Seaside Crest invest a significant portion of their personal savings into the hotel's development and operations, demonstrating their commitment and confidence in the success of the venture. Additionally, they secure a personal guarantee for the hotel's financing, further aligning their interests with lenders and showcasing their willingness to share the risk.

How do I start a hotel business from scratch?

Starting a hotel business from scratch involves several key steps. Begin by conducting market research to identify a suitable location and target market. Develop a detailed business plan that outlines your hotel's concept, services, and financial projections. Secure funding through personal savings, loans, or investors. Obtain necessary permits and licenses and hire staff with hospitality experience.

What type of hotel should I open, and how do I choose a niche?

The type of hotel you open depends on your target market and location. Consider factors such as the level of service, amenities, and price range. Choose a niche that aligns with your interests and the demand in the local market. Options include boutique hotels, budget accommodations, luxury resorts, or themed hotels.

What marketing strategies can I use to promote my hotel?

Use a mix of digital marketing, social media, content marketing, and search engine optimization (SEO) to reach potential guests online. Collaborate with local tourism boards, travel agencies, and event planners to promote your hotel. Encourage positive reviews and testimonials to build credibility.

About the Author

Adam is the Co-founder of ProjectionHub which helps entrepreneurs create financial projections for potential investors, lenders and internal business planning. Since 2012, over 50,000 entrepreneurs from around the world have used ProjectionHub to help create financial projections.

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Have some questions? Let us know and we'll be in touch.

Hotel business plan template + PDF

This guide introduces the advanced AI Business Plan Generator template, meticulously crafted for entrepreneurs eager to initiate or develop their hotel business ventures. It's important to note that the names and financial forecasts mentioned in this example are for illustrative purposes only, serving as educational resources to help guide your business planning process. These examples are carefully selected to demonstrate how you can customize your own AI-generated Hotel Business Plan, helping you overcome challenges and capitalize on opportunities in the hotel sector.

For those seeking a customized solution, we offer a downloadable 'Hotel Business Plan PDF' . This document is crucial for entrepreneurs determined to create a compelling and effective strategy for launching or expanding their hotel services. The 'AI Business Plan Generator' serves as a detailed guide, offering deep insights into the hotel industry. It provides you with the necessary tools to skillfully manage and grow your hotel business, utilizing the power of AI for unmatched strategic planning.

How to start a hotel business plan

Easily craft your personalized hotel business plan with our AI Business Plan Generator. Simply click 'Get your hotel business plan' and answer a series of targeted questions about your hotel venture. Our advanced AI technology will analyze your inputs to create a business plan that aligns seamlessly with the objectives and needs of your hotel operation. This effective and straightforward method takes only 5-10 minutes, yielding a comprehensive and structured plan. Our platform provides the flexibility to modify and perfect your plan, ensuring it precisely captures your unique vision for your hotel business. Upon completion, your plan is ready for download, serving as a clear and detailed roadmap for initiating and growing your hotel business. Take advantage of the power of our AI business plan generator, specially tailored for hotel businesses, to enhance your strategic planning process.

Hotel business plan sample

Executive summary, business description, market research and analysis, swot analysis.

• Organizational Structure and Management Team

Products or Services

Marketing and sales strategy, operations plan, financial projections, risk analysis.

47 Lounge Hotel emerges as a boutique luxury destination strategically nestled in the vibrant heart of San Francisco, California. Designed to cater to the sophisticated demands of young professionals, culture-savvy tourists, and discerning event planners, our hotel promises an unmatched blend of elegance, comfort, and personalized service. As we prepare to open our doors, the essence of our business model centers on delivering an exceptional accommodation experience, punctuated by curated amenities that set us apart in a competitive market.

This business plan outlines our strategic approach to establish 47 Lounge Hotel as a premier choice for luxury accommodation and events in San Francisco. Boasting a comprehensive array of services, including luxury accommodations, a fine dining restaurant, versatile event spaces, a wellness center, and bespoke concierge services, we are poised to meet the evolving demands of our target markets. These offerings are meticulously crafted to ensure comfort, engagement, and memorable experiences for our guests, illustrating our commitment to excellence in every aspect of our operations.

The foundation of 47 Lounge Hotel's strategic vision is our exceptional management team, which brings together a wealth of experience and expertise in hotel management, operations, finance, marketing, and human resources. Led by Olivia Smith, a veteran with over 15 years in the boutique hotel industry, our team is uniquely equipped to steer the hotel towards profitability and sustained growth. Supported by Ethan Taylor in Operations, Sophia Johnson overseeing our financial strategy, Michael Williams directing our marketing efforts, and Isabella Brown managing our human resource needs, the team's collaborative skills and industry insights are pivotal to our success.

Our market research indicates a lucrative opportunity within San Francisco's boutique hotel sector, driven by increasing demand for unique lodging experiences. With a strategic marketing and sales strategy focused on digital outreach, personalized service offerings, and dynamic pricing, 47 Lounge Hotel aims to secure a significant market share. Leveraging San Francisco's allure as a tourist and business hub, we anticipate steady growth in occupancy rates and revenue over the next five years. Our projections forecast a revenue increase to $1,200,000, with net profit margins expanding to 20% by year five, reflecting our focus on operational efficiency and guest satisfaction.

Acknowledging the inherent risks in the hospitality industry, from market fluctuations to operational challenges, we have developed comprehensive mitigation and contingency plans. These include diversifying our service offerings, adopting a conservative financial approach, ensuring regulatory compliance, and embracing technological advances to enhance guest experiences and operational efficiencies. Furthermore, our commitment to sustainability and community engagement stands as a testament to our ethos, aiming to make a positive impact while achieving our business objectives.

Financially, 47 Lounge Hotel is on a solid footing, with an initial investment of $1 million underlining our commitment to creating exceptional value for guests and stakeholders alike. With detailed financial projections highlighting our paths to revenue growth, profitability, and cash flow stability, we are confident in our capacity to deliver on our promises. Our balance sheet projections underscore a healthy financial structure, positioning us favorably for future expansion and investment opportunities.

In conclusion, 47 Lounge Hotel stands at the threshold of becoming a beacon of luxury hospitality in San Francisco. With a strategic location, a strong management team, a distinctive array of services, and a robust financial strategy, we are dedicated to realizing our vision of providing unparalleled guest experiences. As we embark on this exciting journey, our focus remains steadfast on achieving operational excellence, financial sustainability, and market leadership in the boutique hotel industry.

Hotel business planning

47 Lounge Hotel, nestled in the vibrant heart of San Francisco, California, is an LLC poised to redefine the hospitality experience for young professionals, tourists, and event planners. As a new entrant in the competitive hotel industry, our establishment is designed to offer a unique blend of luxury, comfort, and personalized services at an affordable price. Our prime location not only provides easy access to the city’s main attractions but also offers a stylish retreat for those seeking relaxation and indulgence in one of the world’s most dynamic cities.

The hotel industry, characterized by its offering of temporary lodging, food, and other services, is a vast and ever-evolving sector. Within this broad industry, 47 Lounge Hotel identifies itself with the boutique hotel segment, focusing on delivering a high-quality, intimate, and unique experience for guests. This approach capitalizes on the growing desire for accommodations that offer more than just a place to stay but serve as part of the travel experience itself.

47 Lounge Hotel was founded with a dual purpose: to fill a gap in the San Francisco hotel market for affordable luxury accommodation and to create a space that could cater to the diverse needs of modern travelers and small to medium-sized events. Recognizing the changing dynamics of the travel industry, where travelers increasingly seek experiences that are both authentic and unique, the founders envisioned a hotel that would not only provide a place to stay but also embed guests in the culture and vibrancy of San Francisco. From this vision, 47 Lounge Hotel emerged as a concept designed to offer luxury accommodation, fine dining, versatile event spaces, a wellness center, and personalized concierge services, all under one roof.

The mission of 47 Lounge Hotel is to offer guests an unparalleled experience by combining the comfort and amenities of a luxury hotel with the personalized service and charm of a boutique establishment. Our commitment to excellence, along with our dedication to providing a memorable stay, drives every decision and action within the hotel. We aim not only to meet the expectations of our guests but to exceed them, ensuring that every visit is unforgettable and every event is a resounding success.

As an LLC, 47 Lounge Hotel combines the flexibility of a partnership with the liability protection of a corporation, allowing our management team to focus on innovation and service excellence without the encumbrances often associated with more rigid legal structures. This flexibility is critical in the highly competitive and fast-paced hotel industry, enabling us to adapt quickly to market trends and guest needs while ensuring the business is well-protected and primed for growth.

The long-term potential of 47 Lounge Hotel in the bustling city of San Francisco is substantial. With its focus on young professionals, tourists, and event planners seeking unique and affordable luxury experiences, coupled with the management team's extensive experience and innovative approach to hotel management, 47 Lounge Hotel is positioned for success. Our financial projections over the next 3-5 years reflect a steady growth in revenue and net profit margin, signaling strong confidence in the hotel’s potential to capture and retain a significant share of the market. Furthermore, our strategic location and comprehensive range of services enable us to cater to a broad demographic, ensuring long-term relevance and profitability in the ever-evolving hospitality landscape of San Francisco and beyond.

The hotel industry is a significant component of the global travel and tourism sector, characterized by its dynamic nature and susceptibility to economic, lifestyle, and technological trends. As of the last reported year, the global hotel industry generated approximately $570 billion in revenue, with an expected annual growth rate of 3.5% over the next five years. This growth trajectory is underpinned by increasing global travel and a rising preference for boutique and unique lodging experiences among travelers, particularly in urban centers like San Francisco.

San Francisco’s hotel market is a vibrant segment of the local economy, catering to a mix of international tourists, domestic travelers, and business professionals. The city welcomed over 25 million visitors last year, contributing to a total lodging revenue of over $10 billion. Within this thriving marketplace, the boutique hotel sector, which 47 Lounge Hotel aims to enter, is particularly lucrative, with a growth rate outpacing the broader hotel industry at 5%. This segment’s popularity is driven by the desire for differentiated and personalized accommodation experiences, especially among younger travelers and professionals.

Based on current trends and market dynamics, our target market includes approximately 5 million young professionals and tourists, suggesting a revenue potential exceeding $1 billion for the boutique hotel segment in San Francisco alone. Given these figures, 47 Lounge Hotel aims to capture a 0.5% market share within our first five years of operation. This ambitious yet achievable target is supported by our strategic focus on unique value propositions such as luxury accommodation, specialized event spaces, and wellness centers tailored to our identified customer base.

Customer demographics within our target market primarily consist of individuals aged 25 to 44, with a roughly equal gender distribution. These customers typically boast higher-than-average disposable incomes, with annual figures ranging from $75,000 to $150,000, and display a preference for experiences over possessions, as indicated by their spending patterns. This demographic is highly educated, with over 60% holding at least a bachelor’s degree, and they are concentrated in urban areas with robust employment opportunities in sectors like technology, finance, and creative industries.

In the boutique hotel sector of San Francisco, average daily rates (ADR) range from $200 to $400, with seasonal variations. 47 Lounge Hotel plans to adopt a competitive pricing strategy, setting our initial ADR at $250, positioning us attractively against key competitors such as The Metropolitan Grand, City View Oasis, and Royal Haven Inn. These competitors currently capture approximately 10%, 5%, and 3% of the boutique hotel market share, respectively, with annual revenues averaging around $20 million for the leading player.

Consumer behavior trends indicate a growing demand for sustainable and authentic travel experiences. Increasingly, guests prefer accommodations that offer personalized services, eco-friendly practices, and technology-enhanced conveniences. This shift is paralleled by a significant adoption rate of mobile booking platforms, with over 70% of last-minute bookings made via smartphones.

Economic indicators pertinent to our market include a steady increase in disposable income levels across our target demographics and a stable unemployment rate, fostering consumer confidence and discretionary spending in the travel sector. However, regulatory costs and compliance expenses are considerable, with initial licensing and regulatory adherence costs estimated at around $100,000, alongside ongoing operational restrictions that may influence service delivery and cost structures.

Barriers to entry in the boutique hotel market are high due to the substantial initial investment required, which for 47 Lounge Hotel amounts to $1 million. This investment covers property acquisition, renovations to meet our unique value proposition, initial marketing to establish our brand, and operational expenses. Despite these barriers, the long-term growth potential in the boutique hotel sector, combined with our distinctive positioning and committed management team, underlines a promising outlook for 47 Lounge Hotel.

Hotel business plan

Organizational structure and management.

The organizational structure of 47 Lounge Hotel LLC is designed to ensure efficiency, foster innovation, and provide exceptional service to our guests. Our structure is hierarchical, yet flexible, facilitating clear communication channels and decision-making processes across different levels of the organization. At the top of the hierarchy is the General Manager, followed by heads of departments, and then team members within those departments.

The management team is composed of seasoned professionals with extensive experience in the hospitality industry. Olivia Smith, our General Manager, brings over 15 years of hotel management experience, with a proven track record of increasing guest satisfaction and operational efficiency. Ethan Taylor, the Head of Operations, is responsible for the day-to-day running of the hotel, leveraging his 10 years of experience to ensure a seamless experience for our guests. Sophia Johnson, our Chief Financial Officer, oversees the financial strategy of the hotel, drawing on a decade of hospitality sector experience to manage budgets, forecasts, and investment opportunities. Michael Williams, the Marketing Director, is tasked with brand development and customer acquisition, employing his expertise in digital marketing to enhance our market presence. Lastly, Isabella Brown, the HR Manager, oversees talent management, ensuring we attract, train, and retain the best professionals in the industry.

Our staffing needs are projected to grow as the hotel expands. Currently, we require a team of approximately 50 full-time employees across various departments including reception, housekeeping, food and beverage, maintenance, and wellness. As we establish our presence in the market and increase occupancy, we anticipate the need to expand our team, particularly within the food and beverage department and event planning services, to meet the growing demands of our guests.

Human resources policies and practices at 47 Lounge Hotel are centered around fairness, diversity, and professional development. We are committed to creating a workplace that respects and values diversity, offering equal employment opportunities to all. Our recruitment process is rigorous, ensuring we hire individuals not only for their skills and experience but also for their fit with our company culture. We offer competitive compensation, comprehensive training programs, and career advancement opportunities to incentivize and retain top talent. Regular performance evaluations help identify areas for improvement and potential for growth, ensuring our team remains motivated and productive. We also have policies in place for addressing grievances, encouraging an open and transparent communication culture.

To complement our internal expertise, we engage with external advisors and consultants in areas requiring specialized knowledge. This includes legal counsel for regulatory compliance, an environmental consultant to guide our sustainability practices, and a technology advisor to keep our operations at the cutting edge. These external partners are selected based on their track record and alignment with our values and operational goals.

In conclusion, our organizational structure and management practices are crafted to support our mission of providing luxury, comfort, and personalized service to our guests. The experienced team at 47 Lounge Hotel, supported by clear operational protocols and external expertise, positions us well to achieve our strategic objectives and establish ourselves as a leading boutique hotel in San Francisco.

47 Lounge Hotel offers a carefully curated selection of products and services designed to cater to the varying needs of our young professional and tourist clientele, as well as small to medium-sized event planners. Our offerings encompass luxury accommodation, a fine dining restaurant, versatile event spaces, a wellness center, and concierge services, each crafted to enhance the guest experience and ensure a memorable stay.

Luxury Accommodation: Our accommodations range from elegantly designed standard rooms to luxurious suites, each equipped with modern amenities such as high-speed internet, smart room automation, eco-friendly toiletries, and premium bedding. Unique selling points include personalized room settings for lighting, temperature, and entertainment based on guest preferences, and rooms designed to reflect San Francisco's rich cultural heritage with artwork and decor sourced from local artists.

Fine Dining Restaurant: The on-site restaurant offers a gastronomic journey through local and international cuisine, prepared by our acclaimed chef using the freshest ingredients sourced from local suppliers. The unique selling point here is our farm-to-table approach, ensuring sustainability and support for the local community. The restaurant features a seasonal menu, including a selection of signature dishes exclusive to 47 Lounge Hotel.

Event Spaces: We provide configurable event spaces equipped with state-of-the-art audiovisual technology, making them ideal for hosting meetings, conferences, weddings, and celebrations. Our competitive advantage lies in our dedicated event planning team, capable of customizing events to meet the specific needs and preferences of our clients, coupled with unique catering options from our fine dining restaurant.

Wellness Center: The wellness center includes a spa offering a range of treatments, a fully equipped fitness center, and a pool area. Our focus on holistic wellness differentiates us from competitors, providing guests with programs tailored to stress relief, fitness, and overall well-being, integrating technology like VR meditation sessions and personalized fitness apps.

Concierge Services: Tailored experiences and recommendations allow guests to explore San Francisco's attractions in a personalized way. From booking exclusive tours to securing reservations at in-demand restaurants and shows, our concierge service ensures each guest can experience the best of the city according to their tastes and interests.

In terms of development stage, all primary offerings (accommodation, dining, event spaces, and wellness center) are fully operational. Future plans include the introduction of themed suites and the expansion of our event spaces to accommodate larger events. Additionally, we are continually enhancing our wellness programs to include emerging health and fitness trends.

Intellectual property status involves trademarks for the "47 Lounge Hotel" brand name and logo, ensuring brand protection and recognition in the marketplace. We also hold copyrights on unique designs and custom artwork displayed within the hotel, contributing to our distinctive ambiance and aesthetic appeal.

The production process, particularly for our dining services, involves a close partnership with local farmers and suppliers, emphasizing quality and sustainability. Our kitchen operates under strict quality control measures to maintain high standards for food safety and guest satisfaction. Supplier relationships are managed through a procurement strategy that prioritizes reliability, ethical practices, and environmental sustainability, ensuring a consistent and premium experience for our guests.

Overall, 47 Lounge Hotel stands out in the San Francisco hotel industry through its blend of luxury, uniqueness, and commitment to sustainability. Our dedicated approach to offering differentiated and high-quality services ensures we meet the sophisticated needs of our target market while fostering a positive impact on the local community and environment.

Market analysis for hotel business plan

47 Lounge Hotel's marketing and sales strategy is designed to establish the hotel as a preferred destination for young professionals, tourists, and event planners seeking a unique accommodation and event experience in San Francisco. The strategy leverages digital marketing, personalized guest experiences, competitive pricing, strategic partnerships, and comprehensive customer service policies to attract and retain guests.

Marketing Strategy: Our marketing efforts focus on highlighting the uniqueness and luxury of our services. We intend to leverage digital platforms extensively, including search engine optimization (SEO), social media marketing, and email marketing campaigns to reach our target demographic. Our content strategy will emphasize the distinctive aspects of the 47 Lounge Hotel experience, such as our luxury accommodations, fine dining, wellness offerings, and customizable event spaces. We also plan to engage in storytelling by showcasing guest experiences and testimonials, local culture, and sustainability initiatives to connect emotionally with potential guests.

Additionally, we aim to form strategic partnerships with local businesses, tourism boards, and corporate organizations to tap into a broader customer base. Influencer collaborations and press releases highlighting unique offerings and events at our hotel will further enhance brand visibility and attract media attention.

Sales Strategy: The sales team at 47 Lounge Hotel will be trained to adopt a consultative selling approach, focusing on understanding the needs and preferences of potential guests and clients to tailor offerings that best match their requirements. This team will actively pursue leads for corporate events, weddings, and other functions through direct outreach, participation in industry expos, and networking events. Our sales activities will also include offering incentivized packages for early bookings and off-peak times to optimize occupancy rates.

Our direct sales efforts will be complemented by an easy-to-navigate online booking system, enabling guests to customize their stay by selecting room types, dining preferences, and wellness services at the point of reservation. This seamless integration of sales and technology will enhance the guest booking experience and drive direct sales.

Pricing Strategy: The pricing at 47 Lounge Hotel will adopt a value-based approach, ensuring that guests perceive they are receiving exceptional value for the premium services offered. Our pricing will be competitive with other luxury boutique hotels in San Francisco, with dynamic pricing adjustments based on seasonality, market demand, and local events. Special packages and promotions will be offered to target off-peak seasons and last-minute bookings to ensure steady revenue flow throughout the year.

Distribution Channels: Our primary distribution channel will be our branded website, supported by an integrated booking system for accommodations, dining, and events. We will also partner with online travel agencies (OTAs) and luxury travel platforms to expand our reach while maintaining rate parity across all channels. For corporate clients and event planners, direct sales initiatives will serve as a key distribution channel.

Promotion and Advertising Plans: Promotion and advertising efforts will include targeted online ads, social media campaigns, and email marketing designed to reach specific segments of our target market. Seasonal promotions and thematic packages (e.g., wellness retreats, culinary weekends) will be advertised through these channels, along with special rates for early bookings and extended stays. Participation in local and industry-specific events will further promote our offerings to a broader audience.

Customer Service Policies: To ensure customer satisfaction and loyalty, 47 Lounge Hotel will implement comprehensive customer service policies focused on personalized guest experiences. These policies will include flexible cancellation policies, a loyalty program rewarding frequent guests, and a guest feedback system to continuously improve our service offerings. Our staff will undergo regular training in customer service excellence to ensure every guest interaction enhances their overall stay.

Through these integrated marketing and sales strategies, 47 Lounge Hotel aims to build a strong brand presence, drive bookings, and ensure high guest satisfaction, positioning us as a leading choice for luxury accommodation and events in San Francisco.

The Operations Plan for 47 Lounge Hotel outlines the daily operations, service delivery processes, quality control measures, inventory management, supply chain management, and facilities and equipment needs. This plan ensures the efficient and effective execution of our hotel's offerings, maintaining the high standards expected by our guests.

Operational Workflow: Daily operations at 47 Lounge Hotel are designed to ensure that all aspects of the guest experience are seamlessly managed for the utmost satisfaction. The day begins with a morning briefing where department heads meet to discuss occupancy levels, guest arrivals/departures, special requests, and any events scheduled for the day. The housekeeping team follows a rigorous cleaning schedule, ensuring all rooms and public areas are maintained to the highest standards of cleanliness and preparedness before guest arrival and throughout their stay.

The reception team manages check-ins and check-outs, providing personalized greetings to guests, handling reservations, and addressing any guest inquiries or issues. The concierge service operates throughout the day to assist guests with recommendations, bookings, and any other requirements they might have. The dining and kitchen staff manage meal preparation and service, adhering to the scheduled dining hours while also accommodating room service orders.

Production or Service Delivery Processes: Our service delivery is focused on providing luxury accommodation, fine dining, wellness services, and event hosting. Each of these services has its own set of processes designed to ensure excellence. For example, room preparation involves a detailed checklist, including amenities replenishment, cleanliness, and personalization based on guest preferences noted at the time of booking or from previous stays. The kitchen operates based on a farm-to-table concept, requiring daily deliveries from local suppliers and preparation schedules aligned with meal service times to ensure freshness and quality.

Quality Control Measures: Quality control is paramount across all services. This includes regular training for staff on service standards, mystery guest programs to assess the guest experience, and strict adherence to health and safety standards in the kitchen and dining areas. Feedback mechanisms through guest surveys and online reviews are closely monitored, with the management team implementing continuous improvement measures based on this feedback.

Inventory Management: Inventory management is a critical component of our operations, particularly for the hotel’s restaurant and housekeeping services. We use a just-in-time inventory system for our kitchen, minimizing waste while ensuring ingredient freshness. Housekeeping inventory is monitored through a digital management system, tracking the usage and replenishment of linens, toiletries, and other room amenities.

Supply Chain Management: Our supply chain management strategy prioritizes partnerships with local suppliers to support our farm-to-table dining concept and sustainability goals. We maintain relationships with multiple suppliers for key items to ensure continuity of supply and negotiate contracts that allow for flexibility and cost-efficiency. Regular reviews of supplier performance are conducted to maintain our high standards.

Facilities and Equipment Needs: The hotel’s facilities and equipment are essential to our daily operations. This includes well-maintained guest rooms, event spaces with modern AV equipment, a fully equipped kitchen, a fitness center, and a spa. We implement a regular maintenance schedule for all physical assets, with a special focus on preventative maintenance to minimize downtime and ensure the longevity of our equipment. Investments in energy-efficient equipment and technologies reflect our commitment to sustainability and operational efficiency.

In conclusion, our Operations Plan is designed to ensure that the 47 Lounge Hotel operates smoothly and efficiently, delivering a high-quality, consistent experience to our guests while maintaining flexibility to adapt to their evolving needs and expectations.

Business plan for hospitality industry

The financial projections for 47 Lounge Hotel over the next five years have been meticulously prepared, showcasing our anticipated financial performance across key areas: sales, profitability, cash flow, and overall financial health. These projections are based on a combination of industry trends, our strategic business planning, and the initial feedback from the market.

Starting with sales, we anticipate a steady increase across our product and service lines, reflecting our growing brand recognition and the strategic expansion of our offerings. This growth is underpinned by a rising demand for boutique hotel experiences among our target demographic of young professionals and tourists. Our diversified revenue streams, including luxury accommodation, fine dining, event spaces, wellness center, and concierge services, are expected to contribute significantly to this upward trajectory.

Our Profit and Loss Projection indicates improving profitability, driven by increasing revenue and effective cost management strategies. We expect our gross profit margins to enhance as we scale operations and optimize our supplier relationships and operational efficiencies. Strict control over operating expenses will further ensure our net profit margins improve year over year.

From a cash flow perspective, the projections demonstrate robust cash inflows resulting from our operational activities, enabling us to maintain a healthy liquidity position. This will facilitate reinvestment into the business for growth initiatives and ensure we can comfortably meet our financial obligations at all times.

The Balance Sheet forecast reflects a solid financial standing, with total assets expected to grow due to reinvestments and enhanced operational efficiencies. Liabilities are managed with a prudent approach to financing, aiming to sustain a comfortable debt-to-equity ratio. Shareholder's equity is projected to increase as retained earnings grow, reflecting the overall financial health and viability of the business.

Financial assumptions underlying these projections include a stable economic environment, consistent market demand for boutique hotel experiences, and our ability to execute the strategic initiatives outlined in this plan. Key considerations include the potential impact of fluctuating occupancy rates due to seasonal variations and external economic factors, as well as the ongoing need for investments in marketing and property enhancements to sustain competitive advantage.

Therefore, while these financial projections are grounded in careful analysis and realistic assumptions, we remain cognizant of the ever-changing business landscape and are prepared to adapt our strategies as necessary to mitigate risks and capitalize on emerging opportunities.

Sales Forecast

Profit and Loss Forecast

Cash flow Forecast

Balance Sheet

Hotel management business plan

In the dynamic environment of the hospitality industry, 47 Lounge Hotel faces several potential risks that could impact its operational, financial, and market performance. Identifying these risks and implementing effective mitigation and contingency strategies is crucial for the hotel's sustained success and growth.

Market Risks: Market risks include fluctuating demand due to seasonal variation, changing consumer preferences, and economic downturns. To mitigate these risks, 47 Lounge Hotel plans to diversify its target market by catering not only to tourists and young professionals but also to local residents and businesses through event hosting and wellness programs. Marketing strategies will be adapted continuously based on market research and customer feedback to remain relevant. Additionally, developing a loyalty program will help encourage repeat business and reduce dependency on seasonal peaks.

Operational Risks: Operational risks at 47 Lounge Hotel comprise potential service interruptions due to equipment failures, supply chain disruptions, or staff shortages. Mitigation strategies include regular maintenance and updates of equipment and facilities, establishing strong relationships with multiple suppliers, and implementing a robust staffing plan that includes cross-training employees to ensure service continuity. An emergency response plan will be developed for critical situations to minimize downtime.

Financial Risks: Financial risks involve fluctuations in revenue due to market conditions, unexpected increases in operating costs, and potential cash flow shortages. To manage these risks, 47 Lounge Hotel will maintain a conservative financial strategy with a focus on cost control and efficiency. Regular financial reviews and budget adjustments will be made in response to financial performance and forecasts. A reserve fund will be established to manage cash flow shortages or unexpected expenses, ensuring financial stability.

Competition Risks: The risk posed by existing and new competitors entering the market can affect the hotel's market share and pricing strategies. To counteract this, 47 Lounge Hotel will focus on differentiating its offerings through high-quality service, unique guest experiences, and continuous innovation in its product and service offerings. Strategic partnerships and alliances will also be explored to expand market reach and enhance competitiveness.

Legal and Compliance Risks: Legal and compliance risks include the possibility of failing to adhere to industry regulations, leading to fines, legal action, or reputational damage. 47 Lounge Hotel will address these risks by ensuring compliance with all local, state, and federal regulations through regular legal reviews and audits. Adequate insurance coverage will be secured to protect against potential liabilities and losses.

Technological Risks: With the increasing reliance on technology in hotel operations and guest services, risks related to cybersecurity breaches, data privacy issues, and technology failures are of concern. Mitigation strategies include investing in robust cybersecurity measures, regular IT system reviews and updates, and providing staff with ongoing training on data protection and privacy laws.

Environmental Risks: Environmental risks, such as natural disasters or pandemics, could significantly disrupt hotel operations. The hotel will develop comprehensive emergency preparedness and disaster recovery plans, including business interruption insurance, to manage these risks.

Contingency Plans: Contingency plans are in place for critical risk areas, including alternative suppliers, backup systems for essential technology services, and arrangements for relocating guests in case of facility damage. The hotel will conduct regular risk assessment exercises to update these plans as necessary.

Overall, by identifying potential risks and implementing proactive strategies and contingency plans, 47 Lounge Hotel aims to minimize the impact of these risks on its operations and financial performance, ensuring long-term success and resilience in the competitive hospitality market.

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• How to Create a Hotel Business Plan: Beginners Guide

November 21, 2023

Would you build a house without a blueprint?

Probably not, because it could lead to inconvenience and problems.

The same concept is genuine in the corporate world.

It would be best to have a business plan to operate in the hospitality industry. When planning to own or operate a hotel, you must include everything from the project strategy to budgeting and implementation.

As the studies show that the global hospitality industry is expected to grow to 5.8 trillion U.S. dollars in 2027 at a CAGR of 5.5%, a detailed roadmap is what you need to enter the hotel business.

A hotel business plan will keep you on track and help attract investors. Remember, it is a crucial component for planning for success .

Let’s explore the concrete steps to include in your hotel business plan.

The path starts here.

5 Key Components of a Hotel Business Plan

Having a business plan is a no-brainer.

With a solid business plan, attracting investors , staying on track, ensuring workflows are followed, and enabling you to make crucial decisions becomes more accessible.

Let’s explore the critical components of the business plan for a hotel:

1. Executive Summary

An executive summary is a quick and concise part of a business plan that provides a complete roadmap of your hotel business.

A concise business overview encapsulating visionary business goals is a strategic compass, providing a snapshot of a company’s direction and objectives.

It offers stakeholders a quick understanding of the business’s purpose and potential, aiding informed decision-making and fostering alignment with the organization’s vision.

An executive summary should include:

• Business Overview
• Vision statement
• Mission statement
• Business objectives

You must write your executive summary at the final stage of business planning , as it would help you summarize the goals and objectives of your hotel business.

2. Business Description and Concept

A business plan’s business description and concept section should clarify your mission, the goals you are looking to achieve, unique selling points, and a breakdown of shareholder involvement.

In this section, you will outline the full-service hotel’s concept , target market, unique selling points, and overall vision, which is crucial for standing out in the competitive landscape.

The hotel landscape looked very different 20 years ago; today’s market is saturated.

Therefore, defining hotel concepts around the following key elements will help.

• Positioning

Hotel concept must define how your hotel should look like, what services will be offered, how it presents and markets itself the differentiating factors, and how its staff interacts with guests. Providing this information helps establish a clear market position and enhances its chances of success.

3. Market Analysis and Competitive Landscape

A comprehensive market analysis is indispensable in a business plan. It provides vital insights into the target market, industry, competitive landscape, and consumer behavior.

Understanding hotel industry trends enables you to make informed decisions, mitigate risks, and identify market gaps and opportunities. It’s the foundation for a successful and sustainable business strategy.

Take a broad look and analyze industry trends using business models such as SWOT, Porter’s five forces framework, and PESTEL analysis.

• SWOT Analysis

A SWOT analysis will give you an in-depth analysis of the hotel industry’s strengths, weaknesses, opportunities, and threats.

• Porter’s Five Forces Framework

Porter’s five forces framework helps you look beyond direct competitors when assessing strategy and, instead, consider broader environmental forces. It is best for in-depth competitor assessment and helps create a stand-out USP.

• PESTEL Analysis

PESTEL is an acronym for political, economic, social, technological, legal, and environmental. It gives a bird’s eye view of the whole environment from many different angles that one wants to check and keep track of while contemplating a business plan.

A thorough analysis can help solidify your competitive advantage and develop a contingency plan for how you will deal with your weaknesses and threats.

4. Organizational Structure and Management

An organizational structure is an integral part of the business plan as it provides an overview of the hotel’s management roles according to job responsibility and ranking.

Organizational structure enables quick decision-making , better coordination, and employee communication, enhancing productivity. It ensures the proper functioning of an organization by establishing its chain of command and workflow.

While structuring your hotel team, there are different types of organizational structures that you can choose from:

• Hierarchical

Management operational expertise is essential to ensure that each department carries out its goals to the best ability possible and handles any roadblocks that may stand in the way of business.

Let’s look at what management hierarchy looks like, practically speaking.

• Business owner
• General manager
• Assistant managers
• Department managers
• Operations staff

Detail your short and long-term operational plans and the stakeholders involved for each area. Mention efficient management practices that will help you make better strategic decisions relating to resources and make it easier to scale up your hotel business.

5. Services and Facilities

In this business plan section, you must mention all your hotel services, facilities, and guest offerings. Meeting guest expectations should be at the core of your hotel business plan.

You can enhance its appeal to potential investors and define the guest’s journey by showcasing services and facilities to meet diverse guest needs. Moreover, by outlining the services and facilities, the hotel can create a unique selling proposition and tailor its marketing efforts accordingly.

Here’s a list of standard services and facilities you can find in many hotels:

• Accommodation
• Front Desk Services
• Meeting and Event Facilities
• Recreational Facilities
• Business Services.
• Housekeeping
• Transportation Services
• Entertainment
• Concierge Services
• Childcare Services
• Pet-Friendly Services
• Special Needs Accessibility
• Luggage Storage
• Laundry and Dry Cleaning
• Room Amenities
• Spa and Wellness Services
• Emergency Services
• Wi-Fi and Internet Access

All the quality hotel amenities , services, and facilities must be mentioned in your business plan and aligned with the preferences of your target market.

Financial Projections and Funding

Establishing financial projections and identifying funding requirements and sources is fundamental to planning. They provide a roadmap for the hotel’s financial future, outlining revenue expectations, expense estimates, and profit projections.

Additionally, it offers a clear understanding of the return on investment potential, mitigating financial risks and ensuring sound financial planning for the hotel’s success and long-term sustainability.

Revenue Projections and Budgeting

Revenue projections and budgeting are essential for assessing the business’s viability, attracting investors or securing loans, and demonstrating a well-thought-out financial strategy.

Understanding the financial feasibility of the hotel business is essential to reduce or manage your business risk.

In this section, you should include the following:

• Revenue Projections
• Expense Projections
• Profit and Loss Statements
• Cash Flow Projections
• Financial Statement
• Break-Even Analysis
• Funding Requirements
• Use of Funds
• Funding Sources
• Return on Investment (ROI)
• Financial Assumptions
• Financial Contingency Plan
• Debt Repayment Plan
• Sensitivity Analysis

Financial forecasting based on sustainable budget practices will help you to decide whether a project or an investment is worthwhile by looking at its value and the minimum yield it generates. It

Funding Requirements and Investment Plan

Having an investment plan before starting the hotel business will provide a clear financial requirements roadmap, ensuring adequate capital for startup and improving ongoing operations .

Attracting investors and lenders becomes more accessible with a solid funding and investment plan, as it demonstrates financial preparedness to the investors and lenders.

Here’s how you can structure this section in your business plan:

• Startup Capital
• Working Capita
• Equity Investment
• Grants and Subsidies
• ROI Projections
• Exit Strategy
• Risk Mitigation
• Legal and Contractual Agreements

Securing hotel funding and attracting investments for your hotel becomes more accessible with a clear and well-structured plan. It instills confidence and makes your home business more attractive and feasible.

Risk Analysis and Mitigation

A Proactive approach to risk analysis and mitigation helps you develop contingency plans.

It helps mitigate operational, financial, and reputational threats , ensuring the safety and satisfaction of guests, protecting investments, and maintaining business continuity, ultimately supporting long-term profitability and success in a competitive industry.

Addressing risk mitigation strategies in the plan is crucial in creating a resilient and sustainable business model in the competitive and ever-evolving hotel industry.

To manage risks in the hotel business, you can implement the following strategies:

• Risk avoidance – For example, you may face a risk where you won’t be able to serve the customers on time due to a lack of staff. To avoid this risk, you could hire the correct number of staff in case of a seasonal rush at the hotel.
• Risk reduction – For example, you can’t serve an essential ingredient for your dish at your hotel due to seasonality issues. To avoid this risk, you must ensure inventory management practices and have connections with multiple suppliers.
• Risk transfer – For example, if you don’t have the expertise to maintain social media, you are at a loss for online opportunities. You can outsource digital marketing to an expert agency to avoid this risk.
• Risk control – For example, if you cannot achieve a certain staff performance level. To avoid this risk, you can provide on-site training and development.

The hotel business plan is committed to safeguarding investments and ensuring guest safety and satisfaction by identifying and assessing potential risks.

It also reassures investors, lenders, and stakeholders that the hotel is well-prepared to navigate unforeseen circumstances, enhancing confidence in the project’s viability.

Implementation Plan and Milestones

A strategy implementation plan is a detailed roadmap that clearly defines the steps and activities required to execute the strategy effectively.

In this section, you must present a breakdown of tasks into identifiable steps, assign tasks and responsibilities to the people involved, and create a definitive timeline for the entire project.

Operational Plan

An operational plan outlines the steps to achieve your hotel business objectives. It is helpful for investors and your employees because it pushes you to think about tactics and deadlines.

Your operations plan should be able to answer the following:

• Who – The person or departments in charge of completing specific tasks.
• What – A description of what each department is responsible for.
• Where – The information on where daily operations will be taking place.
• When –The deadlines for when the tasks and goals are to be completed.
• How much – The cost amount each department needs to complete their tasks

When creating your operational plan, consider all the activities that will help implement hotel operations, ensuring service excellence . Make sure your strategic objectives are in place and relevant.

Below is the list of the day-to-day operation plan for service delivery.

• Reception and Guest Services
• Food and Beverage Services
• Maintenance and Engineering
• Accounting and Finance
• Sales and Marketing
• Reservations and Front Desk
• Health and Safety
• Guest Relations and Services
• Room Reservations and Inventory
• Procurement and Supplies
• Efficient Staffing

Marketing and Promotion Strategy

Marketing strategy and promotion plans help hotel reach their target audience, build brand awareness, and drive sales. With it, a company may be able to compete, gain visibility, or achieve growth goals.

A well-defined marketing and promotion strategy is pivotal for revenue growth, profitability, and long-term success, ensuring that the hotel stands out and thrives in the hospitality sector.

Hotels increasingly embrace moral marketing , prioritizing sustainability, social responsibility, and ethical practices to connect with conscious consumers and create a positive impact. Include this in your business plan to manage the costs associated with green initiatives, ethical sourcing, social responsibility, and marketing to prioritize moral marketing and sustainability.

As a hotel business owner, online and offline marketing strategies must align with the hotel’s overall objectives and goals, enabling the hotel to achieve the desired operational efficiencies.

Online marketing and promotion strategies for the hotel business include:

• Search Engine Optimization (SEO)
• Pay-Per-Click Advertising (PPC)
• Social Media Marketing
• Email Marketing
• Online Travel Agencies (OTAs)
• Content Marketing
• Influencer Marketing
• Online Review Management

Offline promotion initiatives for guest attraction used by hotel business include:

• Local Event Sponsorship
• Print Advertising
• Direct Mail Marketing
• Travel Trade Shows
• Networking with Local Businesses
• Billboards and Signage

Promoting your hotel business will help you reach potential guests and give them a reason to choose your hotel over the competition, thanks to your unique value proposition.

Milestones and Key Performance Indicators (KPIs)

Setting milestones and key performance indicators helps hotel businesses stay on track and focused on achieving goals. These measurements enable informed decision-making , highlight areas that require improvement, and can be instrumental in adapting strategies to market trends.

Milestones and KPIs ensure goal tracking and enable accountability and efficiency, contributing to the overall success and sustainability of the hotel business.

Following are the ways to set milestones for your hotel business:

• Revenue Growth Targets
• Occupancy Rate Goals
• Customer Satisfaction Improvements
• Expansion and Renovation Milestones
• Marketing and Advertising Milestones
• Staff Training and Development Benchmarks
• Sustainability and Green Initiatives Targets

Once you’ve identified the milestones for hotel business performance , you can define key metrics to analyze the outcomes.

Critical metrics for tracking hotel performance:

• Occupancy Rate
• Average Daily Rate ( ADR )
• Revenue per Available Room ( RevPAR )
• Gross Operating Profit per Available Room ( GOPPAR )
• Customer Satisfaction Scores
• Direct Booking Percentage

Now, as we navigate the hotel business plan, this outline will be the compass that guides your venture toward success.

Conclusion on business plan creation showcases that your vision and strategies will serve as a tool to instill confidence in investors.

This meticulous planning, coupled with your commitment, inspires investor confidence and secures the necessary support for turning your hotel dream into a prosperous reality.

Maximize your hotel business by leveraging this dynamic plan to achieve your goals.

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How to create a business plan for a hotel

Are you interested in being part of the hospitality industry or even dreaming of operating your own hotel? Do you have a passion for providing e­xceptional guest experiences? Before embarking on a project in this competitive industry, it’s essential to create a solid business plan. This compre­hensive guide is de­signed to equip aspiring entre­preneurs with the necessary knowledge and tools to develop effective business plans for hotels. We’ll also explore relevant skills and qualifications that can support your journey to success.

What is a hotel business plan?

A hotel busine­ss plan is a comprehe­nsive blueprint for running a venue that offers accommodation in the hospitality industry. It covers all the necessary de­tails related to setting up and ope­rating a hotel business.

The business plan is a roadmap, outlining important aspects such as market analysis, manage­ment structure, marketing plans, ope­rational strategies, and financial projections. It provide­s guidance for your actions and decisions as you take the project forward.

Why do you need a hotel business plan?

Similar to how architects create blueprints before constructing a building, it’s essential to have a strategic plan when starting a hotel business. Securing initial funding is ofte­n necessary for any new ve­nture. To convince financial institutions or private­ investors your idea is a wise inve­stment, it’s vital to have a detailed busine­ss plan for your hotel.

A structure­d plan helps you navigate­ each step, from choosing the right location to ide­ntifying your market niche and defining the­ scale of your operations. Whethe­r your dream is to own a cozy bed and breakfast or manage­ a luxury resort that rivals the top hotel brands , the first step is crafting a plan. While this may feel ove­rwhelming at first, breaking it down into smalle­r, manageable sections can make­ the task more approachable.

If you are looking to start a hotel business, being able to make a business plan is vital. And you can develop all the knowledge essential for this crucial step by studying for a hospitality degree.

First-class teaching and exclusive opportunities for professional networking make this course essential if you want to launch and manage a hotel business.

Starting your hotel business plan

If you want to start a hotel business, the following steps are essential as part of your business plan:

• Define your concept: this involves looking at your business idea, saying what makes your offering different, and defining its USPs (unique selling points). You should also consider the existing gaps in the market that your particular hotel may address.
• Identify target audience: consider who would be most attracted by various types of hotels and research demographics such as age bracket and socio-economic status, plus preferences and travel patterns
• Study the location: understand how this chosen environment potentially influences operational dynamics, such as seasonal variations affecting revenue inflow or local competition restraining the scope for expansion
• Seek professional guidance: engage professionals with expertise relevant to various aspects of developing hotels, such as property acquisition experts, legal structure advisors, architects, and interior designers

Hotel industry, market and competitor analysis

When crafting business plans for hotels, understanding the industry and competition is crucial. The first step in creating a constructive hotel plan is analyzing the broader trends and features of the sector that will help you position your establishment strategically while identifying promising opportunities. You need to look at:

• Market size and growth
• Regulatory environment
• Consumer behavior

This will help you evaluate the most important factors and help you see how to achieve your business goals. After this, you should be able to start making your plan, whether that’s an entrepreneur business plan as a hotel business owner or a plan as part of your job.

Hotel’s services and amenities

It’s vital not to overlook the importance of services and amenities when developing business plans for hotels. These elements are key to shaping your guest experience, which is pivotal to the success or failure of your hoteling business.

How do you make your hotel stand out in this crowded marketplace? First, identify your target clientele. Every customer demographic has unique needs. For example, a family with young children would appreciate kid-friendly facilities such as a children’s menu in the hotel restaurant, while traveling professionals might value complimentary Wi-Fi or a business center.

Once you’ve nailed down who your audience is likely to be, list potential services and amenities that will appeal to them. You should consider:

• Basic amenities: this refers to essentials such as comfort of rooms and bedding, bathrooms and toiletries
• Technological means: free high-speed internet access is expected by most guests
• Food and beverage: restaurants with a range of offerings at flexible times appeal to many customers
• Health and wellness services: gym, yoga, and spas are a major attraction for many guests
• Other offerings: this could include sightseeing tours, access to local events or concierge services

Business operations, management and marketing

A successful hotel business plan requires detailed descriptions of operations and hotel management strategies that ensure smooth functioning. They must be practical, cost-effective, and streamlined. 

Hotel operations

Operating a hotel involves meticulous coordination, starting from managing room reservations to supervising staff members. To help identify potential obstacles, business plans for hotels should detail certain operational components such as:

• Guest service standards: clearly outline what kind of experience you intend to offer visitors
• Supplier handling: resolving issues related to procurement and timely delivery demands careful planning
• Employee training procedures: well-trained people are vital for executing quality services

Hotel marketing

Marketing forms an influential part of a successful hotel plan. Increasingly, a solid focus on digital marketing is essential. This could include:

• Creating an engaging website that showcases unique offerings such as amenities or location
• Leveraging search engine optimization (SEO) techniques for increased visibility online
• Using social media platforms to connect directly with potential customers

Successful marketing strategies tailored towards your target customers will help ensure optimal occupancy rate and revenue.

Hotel distribution

The importance of astute distribution cannot be underestimated in hotel profitability. Distribution channels principally include online travel agencies or direct bookings through your website or booking call centers. 

Strategically analyze which platform aligns best with your hotel’s business needs before making decisions on partnerships. Selecting diverse but suitable channels improves the chances of filling rooms and increasing profit.

Keys to your hotel’s financial business plan

Critical to any business plan is the financial section. This goes beyond just keeping a balance sheet. It supports your vision and mission, supplying objective evidence your hotel business concept has been meticulously researched. Building a financial plan requires the following steps:

Understand revenue streams

The first part of your financial plan involves identifying revenue streams and potential return on investment. Every hotel plan should outline its sources of income, which usually comprise room revenue, food and beverage, and sometimes income from spa or banqueting services.

Cost analysis

Next on your radar should be a thorough cost analysis. This addresses operating costs and initial expenses such as purchase prices if you’re thinking of buying a hotel. If you’re trying to answer the question ‘How much does it cost to own a hotel?’ you’ll need a detailed breakdown of overheads such as staff wages, utilities, marketing efforts, and ongoing maintenance.

Profitability projections

Any financial business model a hotel may follow must include a profitability projection. Establishing projections helps investors answer the question ‘Are hotels profitable?’. For this, you will need to provide well-reasoned, yearly projections that take into account peak seasons and off-peak periods – and it’s the same in a large or small hotel plan.

Risk management

Risk management is essential in any sector, including the hospitality industry . Whether it’s potential regulatory changes or economic downturns, contingency plans will boost confidence among prospective investors and lend credibility.

Incorporating these elements into business plans for hotels will yield an in-depth picture of how the venue will function financially – initially and over time. 

Simple small hotel business plan template

Simplicity is key when creating business plans for hotels, particularly smaller e­stablishments. It helps maintain focus and reduces the risk of overlooking key e­lements. A simple hote­l plan allows you to emphasize core se­rvices, outline key marke­ting strategies, estimate­ expenses, and proje­ct potential income clearly and straightforwardly.

Below is a simplifie­d framework to guide you through the process of creating a successful plan for a small hotel:

• Executive summary: in this section, provide­ an overview of your hotel’s ope­rating model. Specify whethe­r it will be a boutique guesthouse­ or budget lodgings and mention your target custome­r base. Will you be catering to tourists or local busine­sses? A concise snapshot of your hoteling busine­ss vision will build a solid foundation for the re­st of your plan
• Market analysis: instead of exte­nsive market rese­arch, it’s important to prioritize identifying primary compe­titors and understanding their custome­r acquisition strategies. This information will he­lp refine your approach
• Services and amenities: take a mome­nt to consider what sets your small hotel apart. Is it the unique and charming decor? The complime­ntary breakfast that adds value for guests? Maybe­ it’s the round-the-clock staff availability, ensuring excellent service­ whenever ne­eded? Be sure­ to highlight these special fe­atures that make your establishme­nt stand out from others
• Marketing plan: you need to consider a range of factors that set you apart from competitors in this section, especially your location. Maybe you’re in a popular tourist area or near major attractions, which could give you an e­dge. Emphasizing personalize­d service can also make a significant difference
• Operational structure:   it’s important to de­signate who will be responsible­ for daily operations so that you have accountability and so you can check progress as your business develops. You should also outline staff roles that nee­d to be filled, such as houseke­eping or receptionist positions.

Skills needed to plan a hotel business

To create­ effective busine­ss plans, there are se­veral essential skills you will need to develop. Among the most important are:

• Strategic thinking : the ability to deve­lop a comprehensive plan that will guide­ the organization towards its goals and objectives
• Problem-solving : ide­ntifying and addressing any challenges that may arise­ during implementation
• Effective­ communication: necessary for delivering the plan in a cle­ar and concise way so it can be e­asily understood by all involved parties
• Financial analysis : being able to understand financial stateme­nts and make informed decisions re­garding finances
• Marketing : how to develop and impleme­nt a marketing strategy that successfully grabs custome­rs’ attention and boosts sales
• Sales : the ability to e­ffectively prese­nt and persuade investors and othe­r stakeholders about the me­rits of the business plan
• Project management : managing the implementation of the business plan and tracking its progress
• Adaptability : it’s essential to be flexible, especially in the face of market and environme­ntal changes. You must be able to adjust and modify the­ business plan as neede­d

How to learn more about business planning

There are many ways to learn business planning. Here are a few tips:

• Study a degree course tailored towards starting your own business or helping make business plans for existing hotels
• Consider taking a busine­ss planning course to improve your skills. Look for course­s available online, at community college­s, or universities. These­ provide valuable knowle­dge and guidance on business planning fundame­ntals, allowing you to develop the ne­cessary skills for creating successful busine­ss plans
• Read books and articles on the topic. Many resources are available­ that offer insights and strategie­s to help you create e­ffective business plans
• Engage in conve­rsations with fellow entrepre­neurs. This can be an invaluable­ opportunity to gain insights into the world of business planning and valuable advice
• Engage with the busine­ss community as a way to learn about business planning. Consider atte­nding networking events, joining busine­ss organizations, and offering your time as a voluntee­r to support other businesses
• Consider se­eking assistance from a professional busine­ss consultant. They can provide valuable guidance­ and support throughout the process

Our online master’s program gives you the flexibility to study around your working life, allowing you to refine skills that can open doors to more senior roles.

A well-de­veloped business plan is crucial for achie­ving success in the hospitality industry, particularly for hotels. A compre­hensive business plan is a roadmap, guiding e­very stage of hotel de­velopment and operations. It can help secure funding and investment and provide a clear vision for your hotel’s future .

If you’re inte­rested in starting your hotel busine­ss, there are many re­sources available to help you cre­ate a comprehensive­ and effective plan. Consider a hospitality degree­ at Les Roches, which provides an excellent foundation for managing any hotel venture, including making business plans.

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Changes made with planned ‘Dream’ hotel in Pinnacle Hills

by Michael Tilley  ( [email protected] ) 7 hours ago 1,311 views  

Rendering of planned Dream Hotel in Pinnacle Hills in Rogers

The planned upscale 16-story hotel to be located in the Pinnacle Hills area of Rogers is still on track but will not have the associated entertainment venue. Parking became a problem for entertainment as part of the deal, according to the developer.

The project cost has dropped from “north of $150 million” to “a little over $100 million,” according to Lance Beaty, CEO of Beaty Capital Group.

Beaty announced the 207-room hotel project earlier this year . It will be located on the 1.57-acre property at 3529 S. Pinnacle Hills Parkway. The site is now home to Ruth’s Chris Steak House, which is set to move into a new location in the first quarter of 2025. The entertainment venue was a planned 2,200-seat facility.

“We’ve pivoted because we couldn’t reach parking agreements, so it’s now just a pure-play hotel development,” Beaty said. “We just didn’t want to be in a position where we were beholden to anyone else with parking for the entertainment venue.”

Beaty said the new development plan conforms to development codes and has been filed with the city of Rogers. Beaty partnered with New York City-based Dream Hotel Group on the project, which also includes meeting space and a restaurant and bar on the top floors. Dream Hotel Group is known for operating luxury, upscale hotel properties in Hollywood, Calif.; Nashville, Tenn.; New York and Miami.

He said construction will likely begin in the early second quarter of 2025, with the work expected to take at least 16 months to complete.

He said the hotel will be a good fit with other planned developments in the area, including an 80,498-square-foot mixed-use center called Pinnacle Springs. The 12-acre site is at the northwest corner of New Hope Road and South Promenade Boulevard. Whole Foods Market is the anchor tenant for the development planned by Georgia-based developer SJC Ventures.

“We’re slightly ahead of the market for this quality of space, but we’re exactly where we want to be in this market,” Beaty said.

Daniel Ellis with Crafton Tull engineering firm in Rogers is working on the hotel site plan. Studio 6 Architects in Fort Smith is also working on the project.

• Nation & World

WPI explains, and defends, plan to purchase 2 Worcester hotels

Wpi explains controversial hotel purchase plan.

WORCESTER — In the wake of mounting criticism from city government and economic officials about Worcester Polytechnic Institute's plan to buy two hotels in the city so they can be turned into student housing, WPI officials state in a letter to the university community that the purchases are in response to a looming student housing shortage.

In addition, the WPI officials say, the properties will remain on the city property tax rolls for a period of time after the purchase.

A spokesperson for WPI shared the letter with the Telegram & Gazette on Monday. WPI had not previously commented on its plans.

Worcester Regional Chamber of Commerce President and CEO Timothy P. Murray said WPI's behavior around this plan should give the city and residents plenty of reason to be "dubious" of the WPI administration's claims.

WPI intends to buy the two hotels — the Hampton Inn & Suites at 65 Prescott St. and the Courtyard by Marriott at 72 Grove St. 

The purchase was widely publicized after a letter from Worcester’s Economic Development Coordinating Council to WPI President Grace Wang excoriated WPI's plans.

Members of the Economic Development Coordinating Council, an informal partnership between city officials and some of the city's largest business leadership organizations, say Worcester could lose $780,000 annually in local property taxes and more than $850,000 in annual hotel/motel tax revenue, along with more than 100 jobs and 25% of local hotel room capacity.

The hotels are part of the 55-acre Gateway Park project, which used roughly $170 million in public and private funds to clean up contaminated lands and refurbish old industrial buildings to create a mixed-use development. The project features WPI’s 125,000-square-foot Life Sciences and Bioengineering Center.

Criticisms continued with a signed letter and public statements from the majority of the Worcester City Council. There are a handful of items on the City Council agenda for Tuesday that touch on the planned purchase as well as payments in lieu of taxes agreements the city has with WPI and other colleges and universities.

A Historical Commission meeting previously scheduled last week where the hotel plan would have been discussed has been postponed to Thursday. The city manager's office had been in communication with WPI about a meeting as of Thursday.

The letter to the WPI community is signed by WPI Executive Vice President and CFO Michael Horan and Senior Vice President for Student Affairs & Enrollment Management Philip Clay.   

It confirms the planned purchase, stating WPI could not provide an update before now because it had been engaged in "confidential discussions."                              

The letter says WPI has been exploring strategies to address a projected shortage in student housing in ways that would provide students with "affordable, accessible, and desirable housing options." The letter says WPI does not have enough space for upper-level students, and first-year and transfer students are guaranteed on-campus housing.

"Many of you live in the city and therefore know that the Worcester housing market is extremely tight, with ever-increasing apartment rents and a vacancy rate of 1.7%, one of the lowest in the country," WPI's letter reads. "This situation puts considerable strain on our students’ ability to find affordable housing and adds pressure to the city’s housing crunch. Our plans to increase our on-campus housing will not only help our students, it will also create space in the market for families and other renters impacted by the housing shortage."  

Initially, the letter says, the hotels will continue to operate at their current capacity and the management company will be retained, the letter reads.

The plan is to transition the Hampton Inn to student housing in 2026, while the Courtyard by Marriott will continue to operate as a hotel through at least 2030.

Until those dates, the buildings would remain on the city's property tax rolls and generate hotel tax revenue.

"This approach will help serve our students by providing housing close to campus, which will foster their engagement with our vibrant campus life," the letter reads.

If WPI buys the Hampton Inn, it could be on the hook to pay the full amount of property taxes until at least June 30, 2029, due to a tax increment financing agreement the city signed in 2014 with the original owner of the Hampton Inn, SXC Prescott Street Hotel LLC. The deal exempted SXC from paying a portion of the property taxes over a seven-year period from July 1, 2015, to June 30, 2022.  

Built into the deal was the stipulation that no matter who owned the property, it would remain taxable, or the owner would make a tax-equivalent payment, for 14 years from the first day of the increment agreement. The 14-year period ends June 30, 2029. 

Courtyard by Marriott is not part of the tax increment agreement, with total property taxes paid on that hotel of $4.5 million from fiscal years 2015 to 2024.

Murray said the letter does not mention the TIF agreement obligations for the Hampton Inn, adding that WPI administrators are not keeping it open out of "the kindness of their hearts."

The WPI letter cites the payments the university makes to the city in its PILOT agreement, exceeding $815,000 each year.

"Our university has stood upon this hill for 159 years, and we have continually proven ourselves to be a solid community member and a good neighbor."

The letter states that almost 450 WPI employees reside in Worcester, and that as of 2023, WPI technologies and resulting local and regional companies have employed more than 400 people and raised approximately $1 billion in investment. 

Murray, who signed the initial Economic Development Coordinating Council letter and has been a leading critic of WPI's conduct surrounding the purchase, said he was most struck by what the letter from WPI did not say: how the university would make up for any loss in hotel and property property tax revenue or any investments to ensure the Gateway Park vision continues.

"City leaders, the business community, the employees should be dubious of any claims and assertions given how the WPI president and her leadership team chose to handle this," Murray said, "There was no transparency. It was not collaboration, it was not partnership."

On WPI's projected housing crunch, Murray reiterated a point made in the Economic Development Coordinating Council letter — that WPI made a "strategic mistake" in not acquiring 200 beds from properties that previously belonged to the now-closed Becker College and another 200 beds Becker had from long-term leases.

"They made a strategic mistake in not acquiring those properties, and now they are cannibalizing 25% of the city of Worcester's hotel capacity, taking property out of the tax rolls, reducing hotel and motel revenue and compromising the integrity of what Gateway Park was supposed to be focused on."

Murray said WPI chose not to engage in dialogue with the city and business leaders about student housing or spending from the university's endowment to build on existing WPI property.

The Truth Behind Trump Tower Moscow: How Trump Risked Everything For A (Relatively) Tiny Deal

This story appears in the June 30, 2019 issue of Forbes Magazine. Subscribe

I t’s getting late, and Felix Sater—a onetime Trump partner, two-time convicted felon and longtime government cooperator—sits in the back of a New York City restaurant, ready for a drink. “A very dirty martini, Russian vodka,” he tells the waiter. “A collusion martini.”

No one outside of the Trump Organization has more firsthand knowledge of Donald Trump's connections to Russia than Felix Sater. In 2006, he scouted a potential deal in Moscow with the president's children Don Jr. and Ivanka. In 2007, he stood alongside Trump at a launch party for a hotel Sater had helped get built, Trump SoHo, which marketed partially to Russian buyers. And during the 2016 presidential campaign, Sater helped plan a giant Trump tower in Moscow.

"Here's to fun times," he says, hoisting his martini glass in the air.

Fun times indeed. Special Counsel Robert Mueller's 448-page report highlights three separate proposals to develop a Trump property in Moscow around the time of the election. Yet key details have remained vague. Forbes got in touch with the people at the center of all three—and uncovered concrete answers to fundamental questions about Trump's plans in Russia.

Three years ago, Michael Cohen was working on a potential Trump tower in Moscow. Today he is in prison for crimes that include lying to Congress about the project.

Such as who was actually going to pay for the project. Trump, now more of a licensor than builder, certainly wasn't planning on putting in much of his own money. And according to Sater, who brokered the proposal that extended furthest into the campaign, nor was Trump's official partner, Andrey Rozov. Instead, Sater says, he was cooking up a plan to raise huge sums from additional investors, including two of Vladimir Putin's closest cronies, Boris and Arkady Rotenberg . "We would have gone to them and asked them for four or five hundred million dollars cash," Sater says.

Another big, previously unsettled question: How much money could Trump have made in all of this? Both Mueller and former Trump attorney Michael Cohen have suggested, vaguely, "hundreds of millions." After mining business agreements and surveying real estate experts in Moscow, however, Forbes believes that's almost impossible. It seems more likely that Trump would have walked away with roughly $35 million up front and $2.6 million or so in annual fees, if everything went according to plan. In the rosiest of scenarios, Sater says, Trump could have gotten about $50 million. A lot of money to most people but less than 2% of the president's net worth ( estimated at $3.1 billion ).

Taken together, these revelations paint a new picture of Trump's plans in Russia and the president's way of doing business. His deal came with far greater risk—and far less reward—than previously understood. In short, candidate Trump jeopardized his eventual presidency on a middling deal and one that would have had Vladimir Putin's fingerprints all over it.

P art of the reason the Trump Tower Moscow narrative confuses people: There were three different attempts to attach the president's name to a Russian property in recent years. The first one emanates from the infamous 2013 Miss Universe contest, where 86 women strutted through a Moscow concert hall. Donald Trump, the co-owner of the pageant, took home the money, collecting an estimated $3 million from the local hosts: billionaire real estate tycoon Aras Agalarov and his son Emin, a pop singer. "I had a great weekend with you and your family," Trump tweeted afterward, tagging the elder Agalarov. "You have done a FANTASTIC job. TRUMP TOWER-MOSCOW is next."

One month later, in December 2013, the Trump Organization signed an agreement to brand an Agalarov property in Moscow, according to the Mueller report. The plan eventually called for 800 apartments near the concert venue that hosted the Miss Universe event, with 3.5% of sales going to Trump. If the whole building sold out, Emin Agalarov estimates Trump would have come away with $17 million or so.

2013 Miss Universe Pageant. Miss Venezuela took home the crown, but Donald Trump took home the money, collecting an estimated $3 million for bringing the pageant to Russia

Trump's daughter Ivanka toured the site in February 2014. That same month, though, the geopolitical landscape was shifting. Crowds were in the streets of Kiev, protesting Ukraine's Russia-friendly president, Viktor Yanukovych. He ultimately fled Ukraine, reportedly with the help of Putin. Within weeks, Putin sent soldiers into Crimea, a Ukrainian region neighboring Russia, effectively taking over. The landgrab sparked outrage in the international community, and the United States retaliated with economic sanctions.

Those measures, combined with falling oil prices, crippled the Russian economy—including the Moscow real estate market. The average price of new apartments plummeted an estimated 30% in 2014. Condos were selling for less than the cost of construction. Even in the unlikely event that the Agalarovs managed to build something amid all the turmoil, Emin Agalarov tells Forbes that Trump's payout would have been cut in half. Communications between the Trumps and the Agalarovs began to fade in the fall of 2014, according to the Mueller report. Donald Trump Jr. later told the Senate Judiciary Committee the project died because of "deal fatigue." A more likely cause of death: U.S. sanctions.

Who's Who In Towergate

With donald trump on one end and vladimir putin on the other, the web of people involved in trump's plans for moscow included members of the first family, oligarchs and russian officials..

In November 2015, Donald Trump, by then a presidential candidate, sat down with former Fox News host Bill O'Reilly, who challenged him over his accommodating stance toward Russia. "[Putin] doesn't make deals," O'Reilly reasoned. "He just rolls soldiers in to cause destruction and shoots down airplanes."

"Well," Trump replied, "he does what he has to do."

Unbeknownst to the American public, the Trump Organization, which did not respond to requests for comment on this story, was secretly communicating about a second potential deal in Russia around the same time. In September 2015, nearly a year after the Agalarov partnership dropped off, and with Trump now leading the Republican primary race, his lawyer Michael Cohen traded messages with a man named Giorgi Rtskhiladze, according to the Mueller report. Cohen and Rtskhiladze had previously worked together on business in the former Soviet states of Georgia and Kazakhstan.

Rtskhiladze sent Cohen a draft of a letter ultimately intended for the mayor of Moscow, which pitched a Trump development as a symbol of strengthening ties between the United States and Russia, according to the Mueller report. "[The mayor] is aware of the potential project and will pledge his support," the note said, according to the report.

Today Rtskhiladze says he was just passing along the message on behalf of a longtime friend and that friend's acquaintance. He claims the letter never made it to the mayor. And he suggests he's not even sure if what he sent Cohen was accurate. "I don't know if it's true or not if [the] mayor's office was ever notified, okay."

That's how it goes in Russia, a place where trust is in short supply and outsiders can suddenly find themselves in unnerving situations. Rtskhiladze says he had previously warned Cohen of the risks: "You have to be careful who you get involved with."

C aution, however, is not the Trump way. Cohen dismissed the Rtskhiladze plan and chose to pursue a third proposal, brokered by a man with a checkered past: Sater. Moscow-born, Brooklyn-bred, Sater started a career on Wall Street, until a bar fight—he stabbed a man in the face with a margarita glass—led to 15 months in prison. Three years after his release, he pleaded guilty to racketeering in a mob-connected pump-and-dump stock scheme. He stayed out of prison this time by working with the feds, ultimately supplying information about the Mafia, North Korea, Russian cybercriminals, even Osama bin Laden. At Sater's sentencing, about a decade after he began cooperating with the government, FBI agent Leo Taddeo, one of Sater's handlers at the bureau, credited him with helping pave the way for law enforcement to "basically eliminate" the mob from Wall Street's penny stock business. Former FBI official Ray Kerr adds: "There was nothing he wouldn't do or wouldn't try."

At the same time that he was serving as a government cooperator, Sater reinvented himself as a real estate dealmaker. It was in that role that he ended up working with the Trump Organization, on projects in Arizona, Florida, New York and, ultimately, Russia. For the Moscow effort, Sater served as both broker and dealmaker. His friend Andrey Rozov, who did not respond to our request for comment, was officially the local developer in Russia, but Sater says he expected a cut for himself as well. Trump signed the letter of intent, dated October 28, 2015, the same day as the third Republican presidential debate.

Felix Sater (right) stands alongside Donald Trump and Tevfik Arif at the Trump Soho Launch Party on September 19, 2007 in New York.

The tower was meant to be the tallest building in Europe, featuring a few floors of prime shopping, a high-end hotel and new office space, topped with 250 luxury residences, homes for the Russian elite. According to the terms, Rozov was on the hook for construction while Trump would simply lend his name and help manage the place once it opened. In exchange, according to the Mueller report, the presidential contender would get a cut of condo sales, beginning with 5% of the first $100 million and gradually stepping down to 1% of everything over $1 billion. Sater says each unit would have been about 2,500 square feet, far larger than the typical luxury condo in Moscow. They were targeting a price of about $1,500 a square foot, about 30% above the average for luxury apartments in town. If all went well, Trump would have walked away with an estimated $34 million from condo sales and upfront fees. Big money, sure, but nothing life changing for a guy worth $3.1 billion.

To juice the numbers, Sater says, he wanted to give away a penthouse to Putin. On top of the terrible optics, this could have put the Trump Organization in danger of violating the Foreign Corrupt Practices Act, which bans American companies from bribing foreign officials. Sater says the plan was not meant to entice the Russian president. "You've got to have a billion dollars for [Putin] to take you seriously," he says. "It's good for Congressman [Nancy] Pelosi or [Adam] Schiff to say that, but in the real world, Vladimir Putin ain't getting bought with a penthouse." When contacted, a representative of Putin deflected questions, saying, "We believe that you should address to relevant authorities, not to the press office of the president of Russia."

To Trump small amounts of money matter—the tower agreement details the slices he could shave off every year, including hotel management fees (an estimated $1.3 million), office rents (est. $240,000), residential management fees (est. $225,000), spa operations (est. $75,000) and so on. Add everything up and Forbes figures Trump could have gotten an additional $2.6 million annually—math verified by Sater, who confirmed an Excel spreadsheet that details the projected payments line by line.

Count enough years and it's theoretically possible to get to any number: $13 million over 5 years, $67 million over 25, $94 million over 35. Regardless, even with the condo deals, it wasn't really close to the "hundreds of millions" Cohen and Mueller cited.

R obert Mueller did not find collusion to steal the 2016 election—but he did find evidence of collusion to try to make money. Sater and Cohen did the work on the ground, rubbing elbows with oligarchs and Russian-government entities.

In sworn testimony before Congress, Cohen left no doubt about who was ultimately in charge: "To be clear, Mr. Trump knew of and directed the Trump Moscow negotiations throughout the campaign and lied about it."

There was good reason to lie, given the cast of characters involved. On October 9, 2015, before Trump had even signed the letter of intent, Sater wrote that he was meeting with Andrey Molchanov , a former member of the Russian senate who controlled a plot of land that could work for the tower. Three days later, Sater claimed the chairman of VTB, a Kremlin-controlled bank on which the U.S. imposed sanctions, was "on board" with the project. A spokesperson for VTB said the bank never dealt with Sater or his affiliates in Russia. Ultimately, Sater secured an invitation to Russia from a different bank, days after it had also landed on the U.S. sanctions list.

“You've got to have a billion dollars for [Putin] to take you seriously. It's good for Congressman [Nancy] Pelosi or [Adam] Schiff to say that, but in the real world, Vladimir Putin ain't getting bought with a penthouse.” Felix Sater

Then there was Sater's plan to get billionaire brothers Arkady and Boris Rotenberg to invest hundreds of millions in the project. From a political standpoint, it would be hard to think of a more problematic pair to bring into a deal with a U.S. presidential candidate. Arkady Rotenberg has known Vladimir Putin since childhood, when they were judo partners. He and his brother are now among Russia's richest people, worth an estimated $3.7 billion combined, with interests in banking and construction. Arkady Rotenberg's companies got $7.4 billion in government contracts for the 2014 Olympic Games in Sochi, over $5 billion for the 2018 World Cup (which Russia hosted) and more to build a bridge connecting Russia and Crimea. In 2014, the U.S. Treasury Department sanctioned both brothers, identifying them as members of Putin's "inner circle." The Rotenbergs did not respond to our request for comment.

The same thing that made the Rotenbergs targets of the U.S. government—their ties to Putin—made them appealing to Sater. In his mind, if he could get Putin's associates to invest $400 million or $500 million, then the Russian president would surely greenlight the project—a key step in a country where the government calls the shots on major real estate developments. Trump would have theoretically had to sign off on bringing in the Rotenbergs or anyone else who wanted a piece of the action. "Everybody was going to make money on this," Sater says. "And at the end of the day, some schmuck from Vladivostok with a lot of money would have put up all the money."

It is not clear whether Trump knew about the plans to give Putin a penthouse or his cronies a chunk of the deal. Which is remarkable in itself. A presidential candidate delegated a radioactive deal, in a hostile foreign country, to a former convict (Sater) and a soon-to-be convict (Cohen).

Virtually every part of their plan involved Putin or someone close to him. The equity? Putin's boys. The debt? Kremlin-connected banks. The land? A Putin ally. The approvals? Government entities. The marketing? Putin himself. Look at Trump Moscow long enough and it gives the impression it was less of a deal between Trump and a random Russian and more of a deal between Trump and Putin.

I t also came with a lot of bluster. By December 2015, Trump's men still had not locked in a plot of land. Or financing. Or investors. And Cohen was waiting on an official invitation to Russia. "I will not let you f--- with my job and playing point person," Cohen texted Sater between Christmas and New Year's, according to correspondence first released by Buzzfeed and confirmed by Forbes . "I still have no numbers from anyone who is allegedly involved in this deal, other than the fact I will have whatever invite I need within 48 hours. Not you or anyone you know will embarrass me in front of Mr. T when he asks me what is happening."

Cohen told Sater he was done working with him, and the text stream devolved into something like a souring love affair. "Please don't do this, Michael," Sater wrote.

"We're done," Cohen responded. "Enough. I told you last week that you thinking you are running point in this is inaccurate. You are putting my job in jeopardy and making me look incompetent. I gave you two months and then best you send me is some bull---- f------ garbage invite by some no name clerk at a third-tier bank. So I am telling you enough as of right now. Enough! I will handle this myself."

Kiev Protests. Political turmoil in Ukraine led to a Russian takeover of Crimea, which in turn prompted U.S. sanctions against Putin’s regime. Those measures put a dent in Moscow’s real estate market—and Trump’s potential windfall.

Cohen, who did not respond to a request for comment on this article, reached out to the office of Putin's press secretary, Dmitry Peskov. On January 20, 2016, he heard back from Peskov's assistant. They talked for 20 minutes about a tower in Moscow, and Cohen came away impressed, according to the Mueller report. Cohen updated Trump, remarking that it would be nice if the Trump Organization had assistants who were as good as the Kremlin's, the report says.

Sater texted Cohen the next day. "Call me when you have a few minutes to chat," he wrote. "It's about Putin. They called today."

Money has a way of repairing relationships. Cohen and Sater eventually sketched out plans to travel to Russia. Cohen talked to Trump about it, and the candidate said he would be willing to go as well, so long as Cohen could "lock and load" on the deal, according to the Mueller report. Cohen settled on a rough timeline: "My trip before Cleveland," he texted Sater, referencing the Republican National Convention. "Trump once he becomes the nominee."

On May 5, 2016, Sater followed up with Cohen, offering promising news. "Peskov would like to invite you as his guest to the St. Petersburg Forum, which is Russia's Davos. It's June 16-19. He wants to meet there with you and possibly introduce you to either Putin or [Russian prime minister Dmitry] Medvedev."

But Sater was apparently bluffing. He now says he never actually had an invitation from Peskov, although he was confident he would meet some heavy hitters at the conference. When the Peskov invitation failed to materialize, Cohen called off the trip, according to the Mueller report, and checked in with Trump. But he did not tell the boss the deal was off, since there still seemed to be a chance it could come back to life in the closing months of the campaign. Or possibly afterward, when Trump would return to just being Donald Trump, private citizen.

What ultimately killed Trump Moscow was not all the bluster, nor the ties to Russian oligarchs, nor even the limited financial upside. When asked why the deal ended, in a sworn congressional hearing, Cohen pointed to one part of the plan that went awry: "He won the presidency."

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What we know so far about Trump Tower project for Moscow

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WASHINGTON (AP) — Confused about the business proposal to build a Trump Tower in Moscow? Join the club.

President Donald Trump’s lawyer-spokesman Rudy Giuliani and a disputed Buzzfeed News report have muddied the waters on exactly how long negotiations over the project went on. It’s a key question because Trump was pursuing the deal during the 2016 campaign while he was publicly calling for easing U.S. sanctions on Russia and as Moscow was directing a large-scale operation aimed at swaying the election his way.

Here’s what we know so far:

— September and October 2015: As a Trump Organization lawyer, Michael Cohen receives a proposal for a hotel, office and residential building in Russia that comes to be known as the Trump Tower Moscow project. One of Trump’s numerous corporate entities then enters into a letter of intent on the project.

— Late 2015: Donald Trump Jr. and Ivanka Trump are copied on emails about the project. In one email, Ivanka Trump suggests an architect for the building.

— May 4-6, 2016: Felix Sater, an executive who had worked on and off for the Trump Organization, and Cohen discuss having Trump visit Russia after the Republican National Convention. They also discuss the possibility of Cohen meeting in mid-June with Russian President Vladimir Putin and Russian Prime Minister Dmitry Medvedev. Sater said Peskov had invited Cohen as his guest.

— Aug. 28, 2017: Cohen submits to Congress a two-page letter about the Trump Tower Moscow deal, saying the project ended in January 2016, that he only discussed it three times with Trump, that he never considered traveling to Russia or asking Trump to travel there, and that he did not recall having contact with the Russian government about the proposal. All of those statements were false, according to court papers.

— September and October 2017: Cohen says in prepared remarks to the Senate intelligence committee that the Moscow deal ended “before the Iowa caucus and months before the first primary.” He says the same during testimony before the committee. Those statements turned out to be lies.

— Nov. 29, 2018: Cohen pleads guilty to lying to Congress. He says he briefed Trump and his family members on the Russia proposal through June 2016. Cohen says he lied to minimize the public understanding of Trump’s Russia ties, to try to limit the various Russia investigations and to be consistent with Trump’s “political messaging.”

— Dec. 12, 2018: Cohen is sentenced to three years in prison.

— Jan. 17, 2019: BuzzFeed News, citing two unnamed law enforcement officials, reports that Trump directed Cohen to lie to Congress about the Trump Tower Moscow proposal. The report does not specify what Trump said to Cohen or when he said it.

— Jan. 18, 2019: In a rare public statement, a spokesman for special counsel Robert Mueller disputes the BuzzFeed report. “BuzzFeed’s description of specific statements to the Special Counsel’s Office, and characterization of documents and testimony obtained by this office, regarding Michael Cohen’s Congressional testimony are not accurate,” spokesman Peter Carr says in a statement. BuzzFeed stands by the story and asks for clarity from Mueller’s team.

— Jan. 20-21, 2019: Giuliani suggests in TV interviews that Trump remembers conversations with Cohen about the project “up to as far as October, November,” or right up until the election. That would have extended the timeline for the Russian business deal well beyond what the president has publicly acknowledged. Giuliani also leaves open the possibility that Trump and Cohen might have discussed Cohen’s testimony. The next day, Giuliani walks back his comments, saying they “did not represent the actual timing or circumstances of any discussions.” He says his comments were “hypothetical” and “not based on conversations” he had with the president.

Associated Press writers Michael Balsamo, Eric Tucker and Michael Biesecker contributed to this report.

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GSR files application for arena, major expansion with city of Reno

The permit details plans for arena, ice rink and other site improvements for the grand sierra resort..

The Grand Sierra Resort’s expansion plans took a key step after the hotel-casino submitted its master application for the project. 

The pre-planning application was filed Monday with the city of Reno, which included a 45-page document detailing the GSR’s planned improvements.

The current scope of work under the application includes:

• A 10,000-seat multi-use arena
• A community ice rink
• A casino connector
• A seven-level parking garage
• Site improvements such as a fan zone and VIP parking lot to complement the new facilities.

The application for the project details plans for additional parking at GSR to accommodate the new arena and a 500-seat “practice rink.” The expansion project, which will wipe out most of the existing parking on the northwest corner of GSR, will add 2,386 new parking spaces per the city’s zoning code, according to the application.

The GSR first announced plans in September for its expansion project, which will include a new arena that will serve as the new home for the Nevada Wolf Pack basketball team. It also announced last month that the arena is eyeing a 2027 opening date .

“The plan is to break ground next spring as soon as the weather allows and we have all the approvals we need,” said Andrew Diss, senior vice-president and chief strategy officer for Meruelo Gaming, in a July email to the RGJ. 

“Construction should be completed within 20 months, which puts it at a 2027 opening.”

In addition to hosting the University of Nevada, Reno, men’s basketball team, the GSR could also become the new home for the Tucson Roadrunners minor league hockey team, according to sports business news site Sportico . GSR owner Alex Meruelo retained ownership of the Roadrunners after selling the Phoenix Coyotes NHL hockey team in April for $1.2 billion.

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Hotel Chains Bet on New Ways of Selling to Corporate Travelers

Sean O'Neill , Skift

August 22nd, 2024 at 4:23 PM EDT

Hotel chains are quietly planning to shift their distribution strategies, aiming to bypass traditional intermediaries and boost direct bookings from corporate travel buyers. But with billions at stake, expect fights from legacy players.

Sean O'Neill

Hotel chains are quietly developing plans to bypass traditional booking intermediaries, aiming to increase direct bookings from corporations and businesses.

Why it matters:  This move could disrupt how business travel is sold today, potentially squeezing out traditional travel management companies and online travel agencies.

Why hotels are pushing for change : Some hotel executives believe they can woo more business travelers to book directly if they provide more interesting offers that can’t be found via third parties. So, they’re working on technology upgrades to provide distinctive offers.

Hotels Unbundle the Hotel Room

Major hotel chains like IHG, Choice Hotels, Marriott, and Hilton are testing a new pricing and booking process called attribute-based booking.

• Attribute-based booking is a bit like the “Build a Bear” toy concept. A traveler may pick from things they want in a room — such as a queen-size bed or a corner room — à la carte. Travelers bundle their choices and get a “custom” price.
• Earlier this year, IHG rolled out a function on its mobile app that lets travelers find and book rooms based on a few attributes, such as rooms on a high floor.
• The business travel twist is that hotel groups are now working on versions of attribute-based booking relevant to road warriors. If successful, this could significantly trim hotels’ distribution costs.
• “I believe that in the next two to three years, adoption is going to skyrocket,” said Abhijit Patel , vice president of revenue management and global distribution at Choice Hotels.

Direct Bookings Cut Hotel Costs

Hotels are motivated to drive more direct distribution to save money by sparing middlemen’s fees.

• Today, most corporations use travel management companies to curate what employees can book for business travel. These companies source much of their hotel (and flight) content via third parties, which charge hotels (and other suppliers) commissions.
• Small- and medium-sized businesses may let employees book on their own through online travel agencies.
• “For hotels, the costs of distributing through traditional TMCs [travel management companies] and OTAs [online travel agencies] is pretty high, so we obviously have an incentive to push this conversation,” Patel said.

Some Players Push for Reform

Some corporate travel buyers are hungry for change, seeking improved analytics and reporting, and spoke about the issue on panels and interviews at the Global Business Travel Association conference in July.

• “We’re ready for change,” said Bryan Bachrad , vice president, lodging, and ground partnerships at Navan . “But we need to make sure that, obviously, our hotel, our technology, and our TMC [travel management company] partners, are ready for it as well.”

Hotel executives argue that the attribute-based booking platforms they’re working on will help corporations better understand their travel spending than the middlemen’s legacy systems.

• “Existing distribution platforms don’t let a hotel effectively able to tell their story and differentiate themself from the one down the street because they only offer 80 characters of text or whatever the limit is,” said Rita Visser , director global travel sourcing at Oracle.

In interviews, Navan and HRS said they want to work with hotel groups to adopt the new workflows. These smaller players claim to be seeing interest from corporations looking to adopt more modern technologies. Some hotel executives also hear from corporate buyers seeking change.

• “There are some very large managed accounts at Choice Hotels that are moving towards better user experience by shifting from traditional TMCs [travel management companies] to newer players,” Patel said. “They’re going for lower cost, better payment integrations, and better reporting. That will pressure the big legacy players to catch up.”

Tech Challenges

The transition faces several hurdles. One is a lack of industry-wide standards for attribute-based booking.

• Some industry observers question how the fragmented hotel sector, which uses various systems, could implement new distribution methods without an industry body setting shared standards.
• Without a standardized code for, say, a particular type of room upgrade, how will different systems in different countries recognize the upgrade and price it correctly?
• However, some industry bodies, such as HEDNA (Hotel Electronic Distribution Network Association), are working on this issue.
• “Even if the standards don’t come together, new technology players will figure out a way to aggregate and normalize the data using generative AI and machine learning to work around that challenge,” Patel said.

Other Uncertainties

If hotels want to roll out attribute-based booking, they need to revamp their technology to sync smoothly with the often outdated software used by travel managers.

• Advocates argue that the changes are more technical than procedural. “Attribute-based booking will formalize some existing negotiation practices,” said Ryan Pierce of Salesforce.
• Today, travel managers for large corporations ask hotel groups to provide perks, such as guaranteed last-minute refundability, when they haggle for preferential rates as a kind of volume discount.
• The new tech will just do this within the software without sending RFPs (requests for proposals) back and forth.

Potential Industry Pushback

One uncertainty is whether corporate travel managers will like learning new processes. Mastering attribute-based booking would require a learning curve.

• Travel managers need to balance road warrior preferences for perks like nicer rooms with program goals of managing costs. However, hotels might split the savings of skipping middlemen commissions by offering the best available rates exclusively through their direct channels.
• However, hotel executives claim attribute-based booking could help solve so-called leakage issues in corporate travel programs. Many employees book travel outside approved channels today, expensing the costs as a workaround. Leakage is a bane of corporations trying to track, manage, and predict costs and ensure fairness.
• Hotels also argue that their revamped system would offer more personalized options, encouraging workers to stay within policy. Hotel groups may only offer generic rates to third parties, making those channels less appealing.

The Bottom Line

Hotel groups are betting that offering more personalized options through direct channels will win over business travelers and corporate clients, potentially reshaping the travel booking landscape.

CORRECTION : This article originally said Bryan Bachra works at Salesforce. It should have said Bryan Bachrad works at Navan.

Business Travel 2024: Hotels Bet on the New Road Warriors

Business travel is nearly back – but with an asterisk. Road warriors aren’t taking as many trips, longer stays are becoming the norm, and traveler health is a primary focus. So, for those hotels willing to pivot, there’s an opening to snag these lucrative guests.

Travel Tech Sector Stock Index Performance Year-to-Date

What am I looking at?  The performance of travel tech sector stocks within the  ST200 . The index includes companies publicly traded across global markets including online travel, booking, and travel tech companies.

The Skift Travel 200 (ST200)  combines the financial performance of nearly 200 travel companies worth more than a trillion dollars into a single number.  See more travel tech sector financial performance .

Read the full methodology behind the Skift Travel 200.

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A Gentleman in Moscow

Based on the 2016 novel by Amor Towles, "A Gentleman in Moscow" is set against the backdrop of post-Revolutionary Russia, where Count Alexander Rostov is stripped of his title and material wealth, and placed under house arrest for life in a grand Moscow hotel. Unlikely friendships, fleeting romance and the hotel's occupants open the Count's eyes to the hidden wonders of the hotel, and the enduring power of human connection. After losing everything, he must learn that true riches are found in love, courage and community. more

Based on the 2016 novel by Amor Towles, "A Gentleman in Moscow" i ... More

Starring: Ewan McGregor Mary Elizabeth Winstead Leah Harvey

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Based on the 2016 novel by Amor Towles, "A Gentleman in Moscow" is set against the backdrop of post-Revolutionary Russia, where Count Alexander Rostov is stripped of his title and material wealth, and placed under house arrest for life in a grand Moscow hotel. Unlikely friendships, fleeting romance and the hotel's occupants open the Count's eyes to the hidden wonders of the hotel, and the enduring power of human connection. After losing everything, he must learn that true riches are found in love, courage and community.

Starring: Ewan McGregor Mary Elizabeth Winstead Leah Harvey Johnny Harris Paul Ready

1 season available (8 episodes)

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Ukraine war latest: Russian nuclear reactor 'extremely exposed' - as Ukraine 'launches raid on second Russian region'

IAEA chief Rafael Grossi has said Kursk's nuclear plant reactor is "extremely exposed" to attack. It comes as Ukraine attempts to push into Russia's Belgorod region, according to reports. Watch a Sky News exclusive on the Ukrainian resistance operating behind Russian lines.

Tuesday 27 August 2024 22:59, UK

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• Ukraine trying to break into new Russian region - reports
• Kyiv tests its first ballistic missile
• Border 'under control', Russian officials say
• Russian nuclear reactor 'extremely exposed' under 'normal roof'
• Number killed by Russian overnight attack rises to six
• Watch: Who are Ukraine's secret resistance?
• Your questions answered: Can Ukraine advance further inside Russia?

We're pausing our live coverage of the war in Ukraine.

We'll be back with more updates and analysis tomorrow, but before we go, here's a recap of the key developments that took place today.

Russia launched another wave of missiles and drones overnight that killed at least six people. 

It followed a massive aerial attack on Sunday night that saw seven people killed and 15 regions struck.

Volodymyr Zelenskyy confirmed that Ukraine had  used Western-supplied F-16 fighter jets to help defend itself. 

He also promised Ukraine would respond to the attacks.

Elsewhere, Russian Telegram channels reported that Ukrainian forces were attempting to push into Russia's southern Belgorod region.

Reports said 500 troops attacked two checkpoints at Nekhoteyevka and Shebekino, which borders both Ukraine and the Russian region of Kursk, which Kyiv invaded on 6 August.

In other news from the conflict:

• Mr Zelenskyy said Ukraine successfully ran a test of its first domestic-made ballistic missiles;
• He also said he's going to present a plan to the US on how he intends to end the war with Russia;
• Sir Keir Starmer said there has been "no new decisions" on letting Ukraine use UK-provided Storm Shadow missiles inside Russia;
• The head of the international nuclear watchdog said was a danger of a "nuclear accident" at the "extremely exposed" Kursks nuclear power plant;
• Indian Prime Minister Narendra Modi said he "exchanged perspectives" on the war in Ukraine with Vladimir Putin;

Pictures show an inspection of Kursk nuclear power plant led by Rafael Grossi, head of the International Atomic Energy Agency.

He warned the plant's nuclear reactor was "extremely exposed and fragile" to attack, protected only by a "normal roof" from impact.

The plant is based in the Kursk region of Russian, which Ukraine invaded earlier this month.

By Deborah Haynes , security and defence editor

One of the most secret weapons to combat Russia's invasion of Ukraine has started to raise its profile.

A new video posted on social media seeks to promote the covert activities of a network of Ukrainian civilians, living - and fighting - behind Russian lines.

Run by the Ukrainian special forces, this resistance movement is growing, according to its commander, who said any adult - old, young, male, female - can join.

They just need to be loyal to Ukraine - and brave.

In an echo of Britain's Special Operations Executive that ran missions behind enemy lines during the Second World War, the tasks of the Ukrainian resistance inside territory captured by Moscow include espionage, sabotage and "eliminating" Russian forces, the commander told Sky News.

He said the men and women of the resistance are active in Crimea as well as parts of southern and eastern Ukraine and have carried out jobs within Russia.

Groups are also being created - as a precaution - in parts of Ukraine that may yet fall under Russian control.

Read on here...

Kyiv will present US officials with a tailored list of long-range targets they wish to strike inside Russia, according to reports.

It forms part of Ukraine's efforts to convince Washington to lift restrictions on the use of long-range weapons.

Ukrainian officials hope that by identifying high-value targets, they can change Joe Biden's mind, reported Politico, citing three sources familiar with the matter.

National security council spokesperson John Kirby said there were "no changes" to US policy at a briefing yesterday, but Ukraine’s defence minister, Rustem Umerov, and senior presidential adviser, Andriy Yermak, will be in Washington this week to present the plan.

Kyiv has long argued that without the use of long-range weapons, it cannot eliminate the systems Russia uses to fire missiles and rockets at civilian targets in Ukraine.

Russia has continued its assault on Pokrovsk, mounting some 60 assaults in the Pokrovsky district today, according to the Ukrainian army's general staff.

"Ukrainian defenders are doing everything possible to maintain defensive lines and positions," it said.

Here we take a look at why Russia sees the city of Pokrovsk as a high-priority target.

Pokrovsk is a road and rail hub with a pre-war population of 60,000 people.

It lies on a key road used by the Ukrainian military to supply other embattled Ukrainian-held outposts, such as the towns of Chasiv Yar and Kostiantynivka in the Donetsk region.

To its west is Ukraine's largest coking coal mine, vital for its pre-war economy.

Why does Russia want it?

Moscow sees taking control of Pokrovsk as an important stepping stone to annexing the entire Donetsk region.

Russian media call it "the gateway to Donetsk", allowing Moscow to severely disrupt Ukrainian supply lines along the eastern front and boost its campaign to capture the city of Chasiv Yar.

Chasiv Yar itself sits on higher ground and offers potential control of a wider area.

Squeezing the Ukrainian military's access to the road network in the vicinity would also make it harder for the troops to hold pockets of territory either side of Pokrovsk.

The impact of the war 

Residents continue to evacuate westwards by rail and road, while others are reluctant to leave.

Windows are boarded up or blown out, with roofs, balconies and facades badly damaged.

Residents say power and water have long been cut.

Vadym Filashkin, the Donetsk regional governor, said 53,000 people were still living in the Pokrovsk area on 19 August, including some 4,000 children.

Russian foreign minister Sergei Lavrov says the West "is asking for it" and is "playing with fire" if the US is considering lifting restrictions on Ukraine's use of Western long-range weapons.

"We have our own doctrine, including the doctrine of using nuclear weapons, which, by the way, is now being clarified, and which American officials know very well. 

"But this is simply Freudian, you know, the third world war is bad because we do not want Europe to suffer. 

"Here is the entire American mentality of the master, who sits on the other side, convinced of his safety, and convinced that for him the dirty work will be done and die, not only Ukrainians, but now also Europeans, as it turns out."

Mr Lavrov said it was very dangerous for leaders entrusted with nuclear weapons to "play with matches like little children".

"The West does not want to avoid escalation. The West, as they say, is asking for it." 

The number of people killed by Russian missiles and drones today has risen to six, according to Ukrainian officials.

This brings the total to 13 dead in 48 hours, after Moscow's biggest air attack of the war yesterday.

Three people were killed and five injured today when a hotel was "wiped out" by a missile in the central city of Kryvyi Rih, regional officials said.

Separately, three people were killed and three injured in drone attacks on the southeastern Ukrainian city of Zaporizhzhia.

Another four were hurt in a missile strike on the northeastern region of Kharkiv overnight, local authorities said. 

Ukraine downed five out of 10 incoming missiles and 60 out of 81 drones, the air force said.

Earlier today we featured warnings from nuclear watchdog chief Rafael Grossi against the danger of a nuclear accident at Kursk's nuclear power plant.

We now have fuller comments from Rafael Grossi, head of the International Atomic Energy Agency, who was leading an inspection today.

The plant's nuclear reactor is "extremely exposed" to attack, he said.

"The core of the reactor containing nuclear material is protected just by a normal roof. This makes it extremely exposed and fragile, for example, to an artillery impact or a drone or a missile," he said.

"This is like the building across the street, all right? With all this nuclear material."

The facility lacks the containment dome and protective structure that is typical of modern nuclear power stations.

"This is why we believe that a nuclear power plant of this type, so close to a point of contact or a military front, is an extremely serious fact that we take very seriously."

Mr Grossi continued: "There is no specific protection. And this is very, very important. If there is an impact on the core, the material is there and the consequences could be extremely serious."

The plant has the same same type of reactor as Chernobyl, but it would be an exaggeration to equate the two, he added.

 Ukraine used Western-supplied F-16 fighter jets to down Russian drones and missiles during recent attacks, Volodymyr Zelenskyy has said.

The Ukrainian president announced earlier this month that Kyiv had received the first batch of jets promised by Western countries.

Speaking at a news conference today, Mr Zelenskyy confirmed the use of F-16s and urged Ukraine's allies to send more.

"Nobody talked about it, but we destroyed already, in this huge attack of Russians, we destroyed already some missiles and drones using F-16," he said.

"I will not share how many, but we did it thanks to partners who gave us F-16, provided to us. But again it's not enough, we have a small number of F-16."

NATO's secretary general Jens Stoltenberg will convene a meeting of the NATO-Ukraine Council tomorrow .

A NATO spokesperson said the meeting will be held "at an ambassadorial level" at Kyiv's request and that Ukraine's defence minister Rustem Umerov is expected to appear via video-link.

He will brief the council "on the battlefield situation and priority capability needs", according to the spokesperson.

The meeting comes after two consecutive nights of heavy Russian strikes on Ukraine, which across both evenings killed 13 people.

For context: The NATO-Ukraine Council was launched in 2023 as part of a three-part package of support bringing Kyiv closer to NATO.

It replaced the NATO-Ukraine Commission, which was the decision-making body responsible for developing the NATO-Ukraine relationship and for directing cooperative activities from 1997-2023.

NATO members and Ukraine meet as equal participants in the council.

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