Top 10 tips on How to Write a Hotel Business Plan|Hotel Marketing
October 26, 2020|Hotel Marketing
How should you write a successful hotel business plan? Once you have come up with an initial concept for your hotel business, it is not at all that difficult to construct a business plan. To prove it to you, here are top 10 tips in writing a top-notch business plan.
1. Summarize your hotel concept.
You want to start by summarizing your hotel concept into two parts: your mission statement and goals. The mission statement is usually a one-liner that describes the unique purpose of your hotel. Which need are you trying to address that has not yet been seen out there in the market? Then, set your objectives. What are you hoping to achieve? For example, you might write the average annual occupancy rate that you plan on reaching.
2. Analyze your hotel concept.
You have to focus on your unique selling points. As we always say here at Bezla, being mindful of the competition is crucial. You want to draw attention to what distinguishes your hotel from the rest of the market. You should be able to give projections of what the growth rate would be like for your hotel based on its unique selling points and the performance of its competitors. It is pivotal for attracting investors.
3. Analyze your industry.
The success of your hotel concept depends on your knowledge of the hospitality industry. Investors will want to make sure that you know the current trends and the state of the market you are entering. Write about how this will affect you and how you intend to optimize positive effects or diminish the negative impact.
4. Analyze your customers.
You have to know who your customers are. Describe their geographic, demographic, and socio-economic information. What types of guests are you trying to attract, and what makes your hotel attractive to these guests? For example, highlight how your unique location and specific features may be the perfect fit for your target market.
5. Analyze the competition.
After you have analyzed your hotel, the industry, and the guests, move on to analyzing the competition. Learn about your competitors’ strengths and weaknesses as well as their market shares and revenue management metrics such as their occupancy rate and revenue per available room. Once you have finished your analyses, you can move on to the planning stage.
6. Outline your strategic plan.
A strategic plan consists of explaining your marketing strategies, distribution channels, and revenue management. It answers how you will attract your target guests. How will you position yourself vis-à-vis other properties in the market? What platforms will you use to promote your hotel? What revenue management systems will you use? What payment and cancellation policies will you include in your agreements? Provide as much detail as you can so you can show your investors that you have a well-thought-out strategic plan.
7. Outline your operations plan.
How will your hotel operate? Give the number of staff or supervisors needed as well as their corresponding responsibilities. What level of experience or certifications will they require? Which suppliers or service providers will you hire? Do not forget to describe your inventory management, service standards, and operation manual, if any. Remember, the more detail, the better.
8. Sell your management team.
After selling your hotel concept, you need to sell yourself. Write about your management team, their experience, and qualifications. Explain why you are distinctly qualified to run your hotel and why they should invest in you.
9. Outline your financial plan.
It is one of the principal parts of your business plan. It may seem complicated at first. However, after analyzing the industry and market, it will be easier for you to estimate your start-up costs, operational expenses, and revenue projections by using revenue metrics, such as revenue per available room, average daily rate, and occupancy rate. Your investors will want to know how much funding you require and how and when you will generate a return on their investment.
10. Set targets for yourself.
It is the point where your business plan comes to life. Set a road map for your hotel with specific and measurable activities, such as location setting, permit completion, construction, hiring and recruitment, opening, and the like. Remember, time is money. Any time one of the milestones is met, the investor's risk decreases. Keep your team focused on unlocking each milestone to increase your hotel's likelihood of success.
If we can be of any help at all in managing your hotel revenue in any way, you may reach us through firstname.lastname@example.org or call us at 888-999-8086.
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