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Making a Risk Management Plan for Your Business
It’s impossible to eliminate all business risk. Therefore, it’s essential for having a plan for its management. You’ll be developing one covering compliance, environmental, financial, operational and reputation risk management. These guidelines are for making a risk management plan for your business.
Developing Your Executive Summary
When you start the risk management plan with an executive summary, you’re breaking apart what it will be compromised of into easy to understand chunks. Even though this summary is the project’s high-level overview, the goal is describing the risk management plan’s approach and scope. In doing so, you’re informing all stakeholders regarding what to expect when they’re reviewing these plans so that they can set their expectations appropriately.
Who Are the Stakeholders and What Potential Problems Need Identifying?
During this phase of making the risk management plan, you’re going to need to have a team meeting. Every member of the team must be vocal regarding what they believe could be potential problems or risks. Stakeholders should also be involved in this meeting as well to help you collect ideas regarding what could become a potential risk. All who are participating should look at past projects, what went wrong, what is going wrong in current projects and what everyone hopes to achieve from what they learned from these experiences. During this session, you’ll be creating a sample risk management plan that begins to outline risk management standards and risk management strategies.
Evaluate the Potential Risks Identified
A myriad of internal and external sources can pose as risks including commercial, management and technical, for example. When you’re identifying what these potential risks are and have your list complete, the next step is organizing it according to importance and likelihood. Categorize each risk according to how it could impact your project. For example, does the risk threaten to throw off timelines or budgets? Using a risk breakdown structure is an effective way to help ensure all potential risks are effectively categorized and considered. Use of this risk management plan template keeps everything organized and paints a clear picture of everything you’re identifying.
Assign Ownership and Create Responses
It’s essential to ensure a team member is overseeing each potential risk. That way, they can jump into action should an issue occur. Those who are assigned a risk, as well as the project manager, should work as a team to develop responses before problems arise. That way, if there are issues, the person overseeing the risk can refer to the response that was predetermined.
Have a System for Monitoring
Having effective risk management companies plans includes having a system for monitoring. It’s not wise to develop a security risk management or compliance risk management plan, for example, without having a system for monitoring. What this means is there’s a system for monitoring in place to ensure risk doesn’t occur until the project is finished. In doing so, you’re ensuring no new risks will potentially surface. If one does, like during the IT risk management process, for example, your team will know how to react.
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Writing a Business Plan
While it may be tempting to put off, creating a business plan is an essential part of starting your own business. Plans and proposals should be put in a clear format making it easy for potential investors to understand. Because every company has a different goal and product or service to offer, there are business plan templates readily available to help you get on the right track. Many of these templates can be adapted for any company. In general, a business plan writing guide will recommend that the following sections be incorporated into your plan.
The executive summary is the first section that business plans open with, but is often the last section to actually be written as it’s the most difficult to write. The executive summary is a summary of the overall plan that highlights the key points and gives the reader an idea of what lies ahead in the document. It should include areas such as the business opportunity, target market, marketing and sales strategy, competition, the summary of the financial plan, staff members and a summary of how the plan will be implemented. This section needs to be extremely clear, concise and engaging as you don’t want the reader to push your hard work aside.
The company description follows the executive summary and should cover all the details about the company itself. For example, if you are writing a business plan for an internet café, you would want to include the name of the company, where the café would be located, who the main team members involved are and why, how large the company is, who the target market for the internet cafe is, what type of business structure the café is, such as LLC, sole proprietorship, partnership, or corporation, what the internet café business mission and vision statements are, and what the business’s short-term objectives are.
Services and Products
This is the exciting part of the plan where you get to explain what new and improved services or products you are offering. On top of describing the product or service itself, include in the plan what is currently in the market in this area, what problems there are in this area and how your product is the solution. For example, in a business plan for a food truck, perhaps there are numerous other food trucks in the area, but they are all fast –food style and unhealthy so, you want to introduce fast food that serves only organic and fresh ingredients every day. This is where you can also list your price points and future products or services you anticipate.
The market analysis section will take time to write and research as a lot of effort and research need to go into it. Here is where you have the opportunity to describe what trends are showing up, what the growth rate in this sector looks like, what the current size of this industry is and who your target audience is. A cleaning business plan, for example, may include how this sector has been growing by 10% every year due to an increase in large businesses being built in the city.
Organization and Management
Marketing and sales are the part of the business plan where you explain how you will attract and retain clients. How are you reaching your target customers and what incentives do you offer that will keep them coming back? For a dry cleaner business plan, perhaps if they refer customers, they will get 10% off their next visit. In addition, you may want to explain what needs to be done in order for the business to be profitable. This is a great way of showing that you are conscious about what clear steps need to be taken to make a business successful.
Financial Projections & Appendix
The financial business plan section can be a tricky one to write as it is based on projections. Usually what is included is the short-term projection, which is a year broken down by month and should include start-up permits, equipment, and licenses that are required. This is followed by a three-year projection broken down by year and many often write a five-year projection, but this does not need to be included in the business plan.
The appendix is the last section and contains all the supporting documents and/or required material. This often includes resumes of those involved in the company, letters of reference, product pictures and credit histories. Keep in mind that your business plan is always in development and should be adjusted regularly as your business grows and changes.
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Boutique Hotel Business Plan Blueprint: Complete Guide
- August 31, 2022
Whether you’re looking to raise funding from private investors or to get a loan from a bank (like a SBA loan) for your boutique hotel, you will need to prepare a solid business plan.
In this article we go through, step-by-step, all the different sections you need in the business plan of your boutique hotel. Use this template to create a complete, clear and solid business plan that get you funded.
1. Boutique Hotel Executive Summary
Though the executive summary is the first and the most important section, it should normally be the last section you write because it will have the summary of different sections included in the entire plan.
Why do you need a business plan for a boutique hotel?
The purpose of a business plan is to secure funding through one of the following channels:
- Obtain bank financing or secure a loan from other lenders (such as a SBA loan )
- Obtain private investments from investment funds, angel investors, etc.
- Obtain a public or a private grant
How to write your boutique hotel’s executive summary?
Provide a precise and high-level summary of every section that you have included in your business plan. The information and the data you include in this segment should grab the attention of potential investors and lenders immediately.
Also make sure that the executive summary doesn’t exceed 2 pages in total: it’s supposed to be a summary for investors and lenders who don’t have time to scroll through 40-50 pages, so keep it short and brief.
The executive summary usually consists of 5 major sub-sections:
- Business overview : explain what is the concept of your hotel, whom it targets (business travelers vs. tourists), where it’s located, its size and any other amenities and services you offer
- Market & competitive overview : start by describing the state of the hotel industry in your area (the city or region where you plan to open yours). Also explain here the level of competition you expect from similar establishments. Finally, mention who are your target customers (your ideal customers) ie. their age, gender, disposable income as well as their preferences
- Sales & marketing strategy : describe how you plan to acquire new customers, outlining the exact marketing channels you intend to use and your overall budget
- Management & People : this section should provide information about the leadership hierarchy, highlighting the roles and responsibilities of every team member and their experience
- Financial plan : how much profit and revenue do you expect in the next 5 years? When will you reach the break-even point and start making profits? You can include here a chart depicting your key financials such as revenue, gross profits, and net profit
- Funding ask : what loan/investment/grant are you seeking? How much are you raising ? How long will this last?
Download the Hotel financial model
2. Boutique Hotel Business Overview
This is the section where you will provide details about your boutique hotel and its concept. You must address some important questions that lenders and/or investors generally ask.
Here is a quick list of some of those questions you must address:
- What is the rationale behind you opening this type of hotel today?
- What’s the location of the hotel and why did you select that location?
- What hospitality services and products will you provide? Will you offer any special services (massage, gym, etc.)?
- Will there be a restaurant?
- How many employees will you need to run the hotel?
- How many rooms will you have to accommodate your guests?
- What types of rooms will you offer your customers? At what rates?
- What will be the legal structure of your company?
a) History of the Project
Any business must have two components:
- Passion & experience of the business owner
- Rationale behind starting this type of business today
Passion & experience
Starting a huge investment like a boutique hotel requires much more than just capital. It also needs the relevant background experience in the hospitality industry.
Typically, many individuals creating their own boutique hotel will have a long-standing passion and track record for the hospitality industry. Yet, if you lack the experience, it probably isn’t the right time to start your boutique hotel. Instead, you can choose a franchising option and work with an established hotel franchise.
What motivates you to start a boutique hotel in the region today? Unlike some other businesses, a boutique hotel requires a lot of financial and human capital investment.
So, before taking your first steps in this field, provide enough reasons to justify your decision to venture into the business. For instance, if there’s a scarcity of stylish boutique hotels targeting tourists in the region, you can use that to justify your reasons for starting one.
b) Hotel Concept
Describe your boutique hotel’s concept. Here are a few questions you may answer here:
- Will you target a specific market (all-inclusive vs. tourists, business travelers, etc.)?
- What types of rooms will you have (midscale, upscale, luxury?)
- What amenities will you offer your guests? A restaurant, rooftop bar, a SPA, a conference/meeting room? See more on amenities in the next section
- What will be the hotel’s design, layout and surface?
- Where will the boutique hotel be located? Is this next to a busy street, an airport, a tourist attraction or a corporate center?
c) Services & Facilities
Prioritize the most sought-after services in the region. While many boutique hotels offer the same services, you may want to differentiate yourself vs. competitors to attract guests.
Below are a few examples of the guest services you can provide depending on your target audience:
Boutique Hotel Services
- Bar / Restaurant
- Event management (weddings, conferences, etc.)
Boutique Hotel Facilities
- Swimming pool / Jacuzzi
- Business center
- Summer terrace
- Smoking rooms
- Fitness room
- Conference room
d) Room Rates
Next, describe your pricing strategy. Indeed, designing a pricing list for a boutique hotel isn’t the easiest thing to do. So, you can rely on information from some of your biggest competitors in the region to help you set standard rates.
Make sure to have a clear table with the different room categories and their daily rate. If you have off-peak vs. peak rates, make sure to include it too here. It doesn’t need to be exact (as the rates will likely change over time), so use price ranges instead.
e) Legal Structure
Finally, your business overview section should specify what type of business structure you want:
- Is this a corporation or a partnership (LLC)?
- Who are the investors? How much equity percentage do they own?
- Is there a Board of Directors? If so, whom? Do they have experience in the industry?
3. Boutique Hotel Market Overview
Provide comprehensive information about your market. You will want to tailor your services to suit the target audience. And that means you will need accurate information about the hospitality industry in your region:
- Industry size & growth : how big is the boutique hotel industry in your area? Is it growing / declining, and what are the factors contributing to its growth/decline?
- Competition overview : how many competitors are there? How do they compare vs. your hotel? Are they franchises or independent boutique hotels? Do they target the same guests as you do? How can you differentiate yourself from them?
- Customer analysis: who is your target market? Are they business travelers or tourists, single travelers, couples or families? How often do they travel and need an hotel? How much do they spend on average on hotel stays?
a) Boutique Hotel Industry Size & Growth
How big is the boutique hotel industry in the us.
The market size of boutique hotels in the US is estimated to be $16.9 billion in 2022.
Also, there are about 5,500 boutique hotel businesses in the country, meaning the annual turnover for each boutique hotel is around $3,000,000.
Another source estimated there were 4,600 boutique hotels in the US in 2021 and defines them as a high-end, independent hotel with less than 100 rooms and a unique design. The same source reported that boutique hotels accounted for 3.2% of total hotel rooms in the US in 2017, yet but 5.6% of the US hotel room revenue.
How big is the boutique hotel industry in your area?
After getting a clear picture of the boutique hotel industry in the US as a whole, narrow down to your location. Yet, you may not find this information anywhere (at least not for free). In that case, you can use our guide to estimate the TAM, SAM, and SOM for your business. Here is an example of how to do it:
We know the average annual turnover per boutique hotel is $3 million. Therefore, if the area where you want to open your hotel has 30 competitors (say, in a 30-mile radius), you can assume the boutique hotel industry in your area is worth $90 million .
How fast is the boutique hotel industry growing in your city?
The US boutique industry has suffered an unprecedented decline due to the pandemic. Indeed, it decreased from its peak at $20.6 billion in 2019 to $16.9 billion 2022, despite some recovery from its through.
But what about where you live? US national averages can be a great addition to your business plan, yet they don’t necessarily help to assess the boutique hotel industry where you want to open your own boutique hotel.
Instead, you can use the number of hotels as a proxy for market growth. For instance, if there were 28 boutique hotels in the region in 2020 and 30 in 2022, you can safely assume that the average annual growth rate is ~3% in your area.
The estimation above isn’t perfect as it disregard the occupancy rate. For example, if the 28 hotels had an occupancy rate of 20% in 2020, up to 50% in 2022, the market growth rate would actually be much higher i.e. 60% CAGR from 2020-22.
b) Competition Overview
This sub-section focuses on crucial information about your main competitors. Take a closer look at the hospitality services and products offered by other boutique hotels in the region. And while at it, analyze their marketing strategies, pricing structure, and anything you can do to stand out from the competition.
Don’t forget to include a comparative table, highlighting every piece of information the lenders may need when analyzing your business.
Here is a sample table that you can use:
c) Customer Analysis
Customer analysis is all about knowing your ideal guests: who exactly are you targeting?
You can narrow it down with the following questions:
- Demographics (age, gender, single vs. couples, etc.)
- Frequency of visits (how often do they need such services?)
- Average disposable income
- Average spend per stay (hotel, restaurant, other)
- Favorite services (e.g. gyms, spas, etc.)
4. Sales & Marketing Strategy
This section should highlight the strategies you have in place to attract potential clients. Try to answer the following questions:
- What are your unique selling points (USPs)?
- Which marketing strategies will you use to attract new clients?
- How will you track the success of your marketing strategy?
- What is your customer acquisition cost (CAC)?
- What is your marketing budget?
- Will you consider any offers or promotions to attract new clients?
What marketing channels do boutique hotels use?
Like any new business, a boutique hotel requires comprehensive marketing during the first months to attract potential clients.
You can resort to the following channels to help you get new clients, even from your main competitors:
- Online local listing (Google reviews)
- Online booking platforms (Booking.com, Tripadvisor, etc.)
- Social media content & ads: for example encourage your guests to post on social media and / or hire a social media content manager who will create daily posts and manage your social media presence
- PPC ads ( Google Ads )
- Word of mouth, recommendations
What are your Unique Selling Points (USPs)?
In other words, how do you differentiate yourself vs. competitors? This is very important as you might need to win customers from competitors. A few examples of USPs are;
- Quality of services : you may offer high-quality services (e.g. luxury suites, fine dining restaurant, etc.)
- Pricing: your boutique hotel may be cheaper vs. competitors for the same quality of service
- Location : setting up your boutique hotel near your target market gives you the upper hand
- Amenities : you may be the only boutique hotel in the area offering a health SPA, a separate event center for weddings, etc.
5. Management & People
You must address 2 things here:
- The management team and their experience
- The organizational structure : different team members and who reports to whom
Small businesses often fail because of managerial weaknesses. Thus, having a strong management team is vital. Highlight the experience and education of senior managers that you intend to hire to oversee your hotel business.
First, describe their duties, responsibilities, and roles. Also, highlight their previous experience and explain how they succeeded in their previous roles.
Even if you haven’t already hired a general manager, administrative staff, receptionists, chefs, and other relevant staff members, you must provide a chart of the organizational structure defining hierarchy and reporting lines.
6. Financial Plan
The financial plan is perhaps, with the executive summary, the most important section of any business plan for a boutique hotel.
Indeed, a solid financial plan tells lenders that your business is viable and can repay the loan you need from them. If you’re looking to raise equity from private investors, a solid financial plan will prove them your boutique hotel is an attractive investment.
There should be 2 sections to your financial plan section:
- The startup costs of your project (if you plan to start a new hotel, renovate your hotel, adding rooms, etc.)
- The 5-year financial projections of your boutique hotel
a) Startup Costs
Before we expand on 5-year financial projections in the following section, it’s always best practice to start with listing the startup costs of your project. For a boutique hotel, startup costs are all the expenses you incur before you open your hotel and receive your first guests. These expenses typically are:
- The leasing deposit (if you rent) or the cost to buy the building (if you buy)
- Renovations and improvements
- Equipment & appliances
- Furniture & tableware
Of course, the startup costs depend on a number of factors, like the size of your hotel, its location, the facilities, etc.
On average, it costs $8,400,000 to $10,800,000 to build and open a small boutique hotel with 20 rooms (assuming you decide to build the hotel from scratch).
Note that these costs are for illustrative purposes and may not be fully relevant for your business. For more information on how much it costs to open and run a boutique hotel, read our article here .
b) Financial Projections
In addition to startup costs, you will also need to build a solid 5-year financial model for your boutique hotel business plan.
Note that your financial projections should be built using a spreadsheet (e.g. Excel or Google Sheets) and presented in the form of tables and charts in your business plan.
As usual, keep it concise here and save details (for example detailed financial statements, financial metrics , key assumptions used for the projections) for the appendix instead.
Your financial projections should answer at least the following questions:
- How much revenue do you expect to generate over the next 5 years?
- When do you expect to break even ?
- How much cash will you burn until you get there?
- What’s the impact of a change in pricing (say 15%) on your margins?
- What is your average customer acquisition cost ?
You should include here your 3 financial statements (income statement, balance sheet and cash flow statement). This means you must forecast:
- The number of nights booked over time ;
- Your expected revenue ;
- Operating costs to run the business ;
- The construction costs and FF&E expenses
When projecting your revenue, make sure to sensitize pricing, the expenses (salaries, utilities, supplies, etc.) and the number of stays (or booked nights). Indeed, a small change in these assumptions may have a significant impact on your revenues and profits .
7. Use of Funds
This is the last section of the business plan of your boutique hotel. Now that we have explained what your boutique hotel’s concept is, the amenities it offers, your marketing strategy, etc., this section must now answer the following questions:
- How much funding do you need?
- What financial instrument(s) do you need: is this equity or debt, both?
- How long will this funding last?
- Where else does the money come from? If you apply for a SBA loan for example, where does the other part of the investment come from (your own capital, private investors?)
If you raise debt:
- What percentage of the total funding the loan represents?
- What is the corresponding Debt Service Coverage Ratio ?
If you raise equity
- What percentage ownership are you selling as part of this funding round?
- What is the corresponding valuation of your business?
Use of Funds
Any business plan for a boutique hotel should include a clear use of funds section. This is where you explain how the money will be spent.
Will you spend most of the loan / investment in paying for construction costs? Or will it cover mostly renovation and furniture costs?
For the use of funds, we also recommend using a pie chart like the one we have in our financial model template where we outline the main expenses categories as shown below.
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How to Write a Boutique Hotel Business Plan [Sample Template]
Are you about starting a boutique hotel business? If YES, here’s a complete sample boutique hotel business plan template & feasibility report you can use for FREE.Okay, so we have considered all the requirements for starting a boutique hotel business .
We also took it further by analyzing and drafting a sample boutique hotel marketing plan template backed up by actionable guerrilla marketing ideas for boutique hotels. So let’s proceed to the business planning section. Starting a hotel business is capital intensive and it is considered a long term investment because it will take a while for the owners to break even and start making profit .
It takes a big-time investor to consider starting his or her own hotel business, which is why loads of hotels are owned by groups of investors. One good thing about hotel business is that the business can grow so big that it will not only have active presence in key cities in the country where it started from, but in major cities in all the continents of the world.
It is important to state that hotel operations vary in size, function and cost which is why hotels are classified into different grades (two – star hotel, five – star hotel, seven – star hotel, boutique hotel et al). No doubt you will need a business plan to kick start your boutique hotel business . Writing a business plan to many might come as a herculean task.
This is because of the many technical areas that may likely appear gray. It is for this reason that business plan templates can be drawn from the internet and even from business books, so that you can have an idea of what it is like to draw up a business plan for yourself.
You too can write your own business plan by fixing in the appropriate details of your business after you have gone through the sample boutique hotel business plan template below.
A Sample Boutique Hotel Business Plan Template
1. industry overview.
The Boutique Hotels industry comprises of intimate, luxurious and fashionable hotel environments that feature unique architecture and design. They are also known as lifestyle hotels, villas and wellness hotels. Boutique hotels might offer food and beverage services as well as having restaurants, spas and salons in the premises.
It is important to state that the Boutique Hotels industry does not include chain hotels; nonetheless it does include boutique brands owned by larger hotel groups.
In recent time, the Boutique Hotels industry has experienced steady growth as several consumer trends supported demand for the services offered by boutique hotels. For instance, consumer confidence and spending have both experienced steady increase over the period, allowing rates of both domestic and international travel to increase.
Another consumer trend has been the gravitation toward unique lodging and experience, which establishments in the Boutique Hotels industry offer. Going forward, the Boutique Hotels industry will continue experiencing this robust growth as domestic and non-US resident trips increase.
The Boutique Hotels industry is a thriving sector of the economy of the United States, United Kingdom, France, Italy, and Canada and in most countries of the world. Statistics has it that in the united states of America, the Boutique Hotels industry generates well over $7 billion annually from more than 1,997 registered and licensed boutique hotels scattered all around the United States of America.
The industry is responsible for the employment of well over 60,106 people. Experts project the Boutique Hotels industry to grow at a 5.0 percent annual rate. InterContinental Hotels and Starwood are leaders in this industry; they have the lion share of the available market.
A recent report research conducted by IBISWorld shows that the Boutique Hotels industry has a low-level concentration, with the top four players expected to account for about 33.0 percent of the available market share in 2015. However, albeit lower than chain hotel start-up and operating costs, start-up costs can be prohibitively high.
The report further stated that the Boutique hotels benefit from being able to convert buildings not normally suitable for hotel use, smaller spaces, while using low-cost luxurious materials (e.g. slate instead of imported marble). Furthermore, independent boutique hotels do not have franchise fees , and some boutique hotels brands offer limited partnerships with investors. On the other hand, capital expenditure remains high. Labor costs are lower for boutique hotels because of their smaller size in relation to chain hotels.
Lastly, the boutique hotel business will continue to blossom because people will always have need to lodge for various reasons especially when they are out of their base. There are rooms for any entrepreneur who is interested in running a boutique hotel business in the United States of America to start in any capacity and still maximize profit in the business.
2. Executive Summary
Safe Havens® Boutique Hotel will be located in a safe and secured environment in the heart of Las Vegas – Nevada, less than 20 – minutes’ drive from McCarran International Airport in Las Vegas – Nevada, and a few minutes’ drive from Mandalay Bay Event Center. We are conveniently located in the worlds headquarter of casinos and games.
Safe Havens® Boutique Hotel believes in the passionate pursuit of excellence and financial success with uncompromising services and integrity which is why we have decided to venture into the hospitability industry by establishing our own boutique hotel. We are certain that our values will help us drive the business to enviable heights and also help us attract the number of clients that will make our boutique hotel fully booked all through the year.
We are going to be a customer-centric boutique hotel with a service culture that will be deeply rooted in the fabric of our organizational structure and indeed at all levels of the organization. With that, we know that we will be able to consistently achieve our set business goals, increase our profitability and reinforce our positive long-term relationships with our clientele, partners, and all our employees as well.
Our boutique hotel facility will be decorated in an exquisite and elegant facade, so much so that it will be a conspicuous edifice in the city where it is located. Safe Havens® Boutique Hotel will provide a conducive environment for our customers to take a break from their busy days, and a place where they can find comfort and luxury.
Safe Havens® Boutique Hotel will be equipped with a business center and a VIP lounge, a Fitness room and a self-service laundry which will be made available for resident guests at no extra cost. We will also install a free Wi-Fi that will enable our guests surf the internet with their laptop in the boutique hotel room free of charge, and there will be wireless access in all the public areas in the hotel; we will also provide mobile phones for loan to business travelers for their convenience so as to enable them stay in – touch with their family members, friends and business partners.
No doubt our business class guest rooms will provide our customers with a warm and comfortable home away from home, large banquet venue as well as Chinese and Intercontinental cuisine. We are set to give our esteemed guests an unforgettable experience whenever they patronize our hotel.
Safe Havens® Boutique Hotel will at all times demonstrate her commitment to sustainability, both individually and as a firm by actively participating in our community and integrating sustainable business practices wherever possible. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.
Safe Havens® Boutique Hotel is owned by Paula Willmott, Harley Willmott and other investors whose names can’t be mentioned in this business plan for obvious reasons. The owners and board members of Safe Havens® Boutique Hotel are big time investors in the hospitality industry. Paula Willmott has well over 20 years of experience in hotel management and she has a Master’s Degree in Hotel Management. She will be bringing her wealth of experience to the table to make Safe Havens® Boutique Hotel the number one choice in Las Vegas – Nevada.
3. Our Products and Services
Safe Havens® Boutique Hotel is in the Boutique Hotels industry to make profits and we will ensure we go all the way to make available a wide variety of services to our clients.
Safe Havens® Boutique Hotel is set to operate a standard boutique hotel service in Las Vegas, Nevada. The fact that we want to become a force to reckon with in the hospitality industry means that we will provide our guests with fitness room, social room, self-service laundry room and business center; for the purpose of business or leisure and more.
In all that we do, we will ensure that our guests leave with an unforgettable experience that will make them want to come back as well as recommend our boutique hotel to their friends, family members and business partners. We are well prepared to make profits from the industry and we will do all that is permitted by the law in the United States to achieve our business goals, aim and ambition. Our product and service offerings are listed below;
- Spa, salon and wellness services
- Meals (Local Delicacies, Chinese cuisines and intercontinental cuisines et al)
- Drinks (wines, beers, distilled spirits, martinis, beverages and non – alcoholic drinks)
- Self – service laundry room
- Business center
- Conference room
- Banquet venue
- Shuttle service
4. Our Mission and Vision Statement
- Our vision is to become one of the leading boutique hotels – brands in Las Vegas – Nevada and all over the United States of America.
- Our mission is to deliver reliable, genuine, caring and excellent services superior to what our competitors can offer in any location where our boutique hotel will be situated and to ensure that our boutique hotel enjoys over 90 percent occupancy in most parts of the calendar year.
Our Business Structure
The success of any business is to a large extent dependent on the business structure of the organization and the people who occupy the available role. Safe Havens® Boutique Hotel will work with a business structure that will give room for employees to explore their creativity, have a sense of belonging and grow through the corporate ladder of the organization. We will ensure that we put the right structure in place that will support the kind of growth that we have in mind while setting up the business.
We will ensure that we hire people that are qualified, honest, customer centric and are ready to work to help us build a prosperous business that will benefit all the stakeholders (the owners, workforce, and customers). As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of ten years or more.
In view of that, we have decided to hire qualified and competent hands to occupy the following positions;
- Chief Executive Officer (Owner)
- Hotel Manager
- Human Resources and Admin Manager
- Facility Manager
Professional Caterers (Cooks and Bakers)
Sales and Marketing Manager
- Baristas/Bartenders / Waiters/Waitress
5. Job Roles and Responsibilities
Chief Executive Officer – CEO (Owner)
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities
- Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy
- Responsible for fixing prices and signing business deals
- Responsible for providing direction for the business
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
- Reports to the board
Admin and HR Manager
- Responsible for overseeing the smooth running of HR and administrative tasks for the organization
- Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products
- Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs
- Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations
- Enhances department and organization reputation by accepting ownership for accomplishing new and different requests; exploring opportunities to add value to job accomplishments
- Defines job positions for recruitment and managing interviewing process
- Carries out staff induction for new team members
- Responsible for training, evaluation and assessment of employees
- Responsible for arranging travel, meetings and appointments
- Oversees the smooth running of the daily office activities
- Responsible for managing the daily activities in the boutique hotel (kitchen inclusive)
- Ensures that the boutique hotel facility is in tip top shape and conducive enough to welcome customers
- Ensures that the kitchen facility is in tip top shape and conducive enough to prepare meals for different classes of people
- Interfaces with third – party providers (vendors)
- Reports to the Chief Executive Officer
- Attends to Customers complains and inquiries
- Prepares budget and reports for the organization
- Handles any other duty as assigned by the CEO
- Responsible for planning and overseeing building work/renovation
- Responsible for allocating and managing space within buildings
- Responsible for managing building maintenance activities
- Responsible for coordinating cleaning, catering and parking services
- Responsible for organizing security and general administrative services
- Ensures that facilities meet government regulations and environmental, health and security standards
- Advises on energy efficiency and cost-effectiveness
- Supervises multi-disciplinary teams of staff including maintenance, grounds and custodial workers
- Prepares all the foods and desserts that are listed in the menu as supervised by the kitchen supervisor
- Responsible for carrying out all casual or unskilled jobs in the kitchen
- Responsible for serving foods
- Handles any other duty as assigned by the manager
- Manages external research and coordinates all the internal sources of information to retain the organizations’ best customers and attract new ones
- Models demographic information and analyzes the volumes of transactional data generated by customer purchases
- Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
- Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects
- Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Develops, executes and evaluates new plans for expanding increase sales
- Documents all customer contact and information
- Represents the company in strategic meetings
- Helps to increase sales and growth for the company
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions
- Responsible for financial forecasting and risks analysis
- Performs cash management, general ledger accounting, and financial reporting
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensures compliance with taxation legislation
- Handles all financial transactions for the organization
- Serves as internal auditor for the organization
- Interact with customers; take orders for drinks, food and snacks
- Plan and present bar menu
- Check identification of the guests to make sure they meet age requirements for purchase of alcohol and tobacco products
- Mix ingredients to prepare cocktails and other drinks
- Mix drinks, cocktails and other bar beverages as ordered and in compliance with hotel standard drink recipes
- Assist in the movement of cooking utensils, plates, spoons and other relevant wares
- Promptly attends to customers in a friendly and professional manner
- Ensure that customers order is properly taken and delivered
- Project the image of the organization
- Handle any other duty as assigned by the Chief Operating officer / hotel manager
- Responsible for cleaning the rooms, kitchen facility and all around the hotels at all times
- Responsible for washing cooking utensils, plates, spoons and other relevant wares
- Ensure that toiletries and supplies don’t run out of stock
- Clean both the interior and exterior of the boutique hotel facility
- Handle any other duty as assigned by the hotel manager
6. SWOT Analysis
Our plan of opening our boutique hotel in Las Vegas – Nevada is to test run the business for a period of 3 to 5 years to know if we will invest more money, expand the business and then spread our tentacles all over Nevada and key cities in the United States.
We are quite aware that there are several boutique hotels, hotels and motels all over Las Vegas – Nevada and even in the same location where we intend locating ours, which is why we are following the due process of establishing a business.
We know that if proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be well equipped to confront our threats.
Safe Havens® Boutique Hotel employed the services of an expert HR and Business Analyst with bias in the hospitality industry to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives. This is the summary of the SWOT analysis that was conducted for Safe Havens® Boutique Hotel;
Our location, the business model we will be operating, comfortable and safe accommodations, variety of payment options, wide varieties of foods, drinks and desserts and our excellent customer service culture will definitely count as a strong strength for Safe Havens® Boutique Hotel. So also, we have a management team that has what it takes to grow a new business to profitability within record time.
A major weakness that may count against us is the fact that we are a new boutique hotel – business and we don’t have the financial capacity to compete with multi – million dollars’ boutique hotels, hotels and motels et al operating all across the United States of America.
We are open to loads of opportunities; we are in one of the cities in the world that never goes to bed, plus the fact that Las Vegas is regarded as the world’s headquarter as far as casino business is concerned. It means that loads of tourists, business executives and travelers would want to visit Las Vegas and we are well positioned to welcome them because our boutique hotel facility is just about 20-minute drive from McCarran International Airport in Las Vegas, and few minutes’ drive from Mandalay Bay Event Center.
Just like any other business, one of the major threats that we are likely to face is economic downturn. It is a fact that economic downturn affects purchasing/spending power. Another threat that may likely confront us is the arrival of a new boutique hotel and even chains of hotels in same location where ours is located.
7. MARKET ANALYSIS
- Market Trends
The trend in the hospitality industry is such that there are peak periods and off peak periods, hoteliers know this and they have been able to make provision to properly handle the change in season. For example, during summer or during any major sporting events or business summit, most hotels in Las Vegas are almost fully booked. As a matter of fact, that is the period that some hotel make the money that will sustain the business for the rest of the year.
Be that as it may, some boutique hotels are well positioned and they enjoy reach patronage all through the 12-calendar months of the year. Another trending feature in the hotel industry is that it is profitable to build your brand and then venture into the sale of franchise if you know you don’t have the capacity to manage various branches of your boutique hotel.
Over and above, hoteliers are quite aware that they not in the industry for quick returns on their investments, but to steadily build a brand that can become a global brand while growing their profits year in year out.
8. Our Target Market
There is hardly any organization who intends sending their staff members on official assignment or individuals or families going on vacation who would not need a place to lodge. Most people that go on vacations or official assignments outside their locations look forward to the hospitality they will get when they lodge in boutique hotels cum hotels.
In view of that, we are in business to offer our boutique hotel services and amenities to the following groups of people and businesses;
- Corporate Executives
- Business People
- Sports Men and Women
- Government Officials
- College Students
- Travelling Agencies
- Event Managers
- Religious Organizations
Our competitive advantage
A close study of the hospitality industry cum boutique hotel industry reveals that the market has become much more intensely competitive over the last decade. As a matter of fact, you have to be highly creative, customer centric and proactive if you must survive in this industry. We are aware of the stiff competition and we are well prepared to compete favorably with other boutique hotels, chains of hotels and motels in and around Las Vegas – Nevada.
Safe Havens® Boutique Hotel is launching a standard boutique hotel that will indeed become the preferred choice of individuals, families and corporate organizations in Las Vegas – Nevada. Our boutique hotel is located in a safe and secured environment in the heart of Las Vegas – Nevada less than 20 – minute drive from McCarran International Airport in Las Vegas – Nevada, and a few minutes’ drive from Mandalay Bay Event Center.
One thing is certain, we will ensure that we offer comfortable and safe accommodations; variety of payment options, wide varieties of food, drinks and desserts and our excellent customer service culture will definitely count as a strong strength for Safe Havens® Boutique Hotel. So also, we have a management team that has what it takes to grow a new business to profitability within record time.
Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category (startups boutique hotels) in the Boutique Hotels industry, meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives. We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.
9. SALES AND MARKETING STRATEGY
- Sources of Income
Safe Havens® Boutique Hotel is in the boutique hotel business to service individuals, families and corporate organizations that visit Las Vegas – Nevada. We are in the Boutique Hotels industry to maximize profits and we are going all out to ensure that we achieve or business goals and objectives.
In essence, our source of income will be in offering the following services and amenities;
- Meals (Local Delicacies, Chinese cuisines, intercontinental cuisines et al)
10. Sales Forecast
One thing is certain when it comes to boutique hotel services, if your boutique hotel is centrally positioned, you will always attract customers and that will sure translate to increase in revenue generation for the business.
We are well positioned to take on the available market in Las Vegas – Nevada and we are quite optimistic that we will meet our set target of generating enough income/profit from the first six months of operation and grow the business and our clientele base.
We have been able to critically examine the Boutique Hotels industry; we have analyzed our chances in the industry and have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to startups in Las Vegas – Nevada.
Below are the sales projections for Safe Havens® Boutique Hotel, it is based on the location of our boutique hotel and other factors as it relates to boutique hotel start – ups in the United States;
- First Fiscal Year-: $450,000
- Second Fiscal Year-: $750,000
- Third Fiscal Year-: $1 million
N.B : This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same amenities and customer care services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.
- Marketing Strategy and Sales Strategy
Before choosing a location to open Safe Havens® Boutique Hotel, we conducted a thorough market survey and feasibility studies in order for us to be able to penetrate the available market and become the preferred choice for residents, visitors and corporate organizations all across Las Vegas – Nevada. We have detailed information and data that we were able to utilize to structure our business to attract the number of customers we want to attract per time.
We hired experts who have good understanding of the Boutique Hotels industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Las Vegas – Nevada.
In other to continue to be in business and grow, we must continue to have clients book all our rooms which is why we will go all out to empower or sales and marketing team to deliver. In summary, Safe Havens® Boutique Hotel will adopt the following sales and marketing approach to win customers over;
- Open our boutique hotel in grand style with a party for all
- Introduce our boutique hotel by sending introductory letters alongside our brochure to traveling agencies, corporate organizations, schools, event planners, wedding planners, households and key stakeholders in Las Vegas – Nevada
- Make use of attractive hand bills to create awareness and also to give direction to our boutique hotel facility
- Create different packages for different category of clients in order to work with their budgets and still deliver quality accommodation and services
- Print out fliers and business cards and strategically drop them in sport centers, stadiums, offices, libraries, public facilities and train stations et al.
- Deliver great customer experience to all our clients; making our first impression count positively to those lodging in our boutique hotel for the first time
- Adopt direct mailing coupon marketing approach
- Encourage and reward referral marketing
- Position our signage/flexi banners at strategic places around Las Vegas – Nevada
- Position our greeters to welcome and direct potential customers
- Create a loyalty plan that will enable us reward our regular customers
- Engage in roadshows within our neighborhood to create awareness for our boutique hotel
- Join local chambers of commerce and industry with the aim of networking and marketing our boutique hotel
11. Publicity and Advertising Strategy
Safe Havens® Boutique Hotel has a long term plan of spreading our tentacles all around key cities in the United States which is why we will deliberately build our brand to be well accepted in Las Vegas before venturing out. As a matter of fact, our publicity and advertising strategy is not solely for winning customers over but to effectively communicate our brand.
Here are the platforms we intend leveraging on to promote and advertise Safe Havens® Boutique Hotel;
- Place adverts on community based newspapers, travel and tour magazines, radio and TV stations
- Encourage the use of word of mouth publicity from our loyal customers
- Leverage on the internet and social media platforms like; YouTube, Instagram, Facebook, Twitter, LinkedIn, Snapchat, Badoo, Google+ and other platforms to promote our boutique hotel
- Ensure that our we position our banners and billboards in strategic positions all around Las Vegas – Nevada
- Distribute our fliers and handbills in target areas in and around our neighborhood
- Contact corporate organizations, travel and tour agencies, households, religious centers, schools and event planners et al by calling them up and informing them of Safe Havens® Boutique Hotel and the amenities and services we offer
- Advertise Safe Havens® Boutique Hotel business in our official website and employ strategies that will help us pull traffic to the site
- Brand all our official cars and delivery vans and ensure that all our staff members and management staff wears our branded shirt or cap at regular intervals
12. Our Pricing Strategy
Launching a new business is not an easy task especially if you launching a business/idea that is not entirely new from what is obtainable in the location you intend launching it. So, part of our strategy for entering the market is to leverage on pricing in gaining a good percentage of the available market. Of course, we will attract clients by offering quality lodging and services at rock – bottom prices. A price that probably will be the lowest in the industry.
Although prices for our lodging, foods, drinks and other related services will be lower than what is obtainable in the industry, but it won’t be so for a long time. As a matter of fact, we intend jacking up the prices gradually until it falls at par with what is obtainable in the industry. We intend achieving this within a year of launching the business.
We are aware that there are contracts for long – term lodging by government, corporate organizations or big religious organization; we will ensure that we abide by the bidding pricing template when we bid for such contracts.
- Payment Options
The payment policy adopted by Safe Havens® Boutique Hotel is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.
Here are the payment options that Safe Havens® Boutique Hotel will make available to her clients;
- Payment via bank transfer
- Payment with cash
- Payment via credit cards/Point of Sale Machines (POS Machines)
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
- Payment via bank draft
In view of the above, we have chosen banking platforms that will enable our clients make payment for amenities and services without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for booking our boutique hotel.
13. Startup Expenditure (Budget)
In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.
This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business.
The furniture, tools and equipment for furnishing the facility are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked. As for the detailed cost analysis for starting a boutique hotel; it might differ in other countries due to the value of their money.
These are the key areas where we will spend our start-up capital;
- The total fee for registering the business in the United States of America – $750
- Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $1,300
- Marketing promotion expenses for the grand opening of Safe Havens® Boutique Hotel in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of – $3,580
- The cost for hiring Business Consultant – $2,500
- The cost for insurance (general liability, workers’ compensation and property casualty) at a total premium – $2,400
- The cost for acquiring a standard facility and renovating the facility – $250,000
- Other start-up expenses including stationery ( $500 ) and phone and utility deposits ( $2,500 )
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $100,000
- The cost for start-up inventory (beds, mattresses, pillows , furniture, toiletries, beverages, gas cookers, cooking utensils, services wares, food ingredients, raw materials and packaging materials et al) – $80,000
- Storage hardware (bins, rack, shelves, food case) – $3,720
- The cost for counter area equipment (counter top, sink, ice machine, etc.) – $9,500
- The cost for store equipment (cash register, security, ventilation, signage) – $13,750
- The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al) – $4,000
- The cost of launching a website – $600
- The cost for our opening party – $10,000
- Miscellaneous – $10,000
We would need an estimate of $500,000 to successfully set up our boutique hotel in the United States of America. Please note that this amount includes the salaries of all the staff for the first month of operation and the amount could be more or less.
Generating Funds/Startup Capital for Safe Havens® Boutique Hotel
Safe Havens® Boutique Hotel is a business that is owned and financed by Paula Willmott, Harley Willmott and other investors. They do not intend to welcome more business partners which is why they have decided to restrict the sourcing of the start-up capital to 3 major sources.
These are the areas we intend to generate our start – up capital from;
- Generate part of the start-up capital from personal savings
- Source for soft loans from family members and friends
- Apply for loan from my Bank
N.B: We have been able to generate about $200,000 ( Personal savings $150,000 and soft loan from family members $50,000 ) and we are at the final stages of obtaining a loan facility of $300,000 from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.
14. Sustainability and Expansion Strategy
The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business would close shop.
One of our major goals of starting Safe Havens® Boutique Hotel is to build a business that will survive off its own cash flow without need for injecting finance from external sources once the business is officially running. We know that one of the ways of gaining approval and winning customers over is to offer our services and amenities a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.
Safe Havens® Boutique Hotel will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.
As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the Boutique Hotels industry; and they will be more committed to help us build the business of our dreams.
- Business Name Availability Check: Completed
- Business Registration: Completed
- Opening of Corporate Bank Accounts: Completed
- Securing Point of Sales (POS) Machines: Completed
- Opening Mobile Money Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Leasing of facility and remodeling the boutique hotel facility: In Progress
- Conducting href=”https://www.profitableventure.com/steps-write-feasibility-study-report/” target=”_blank” rel=”noopener noreferrer”>feasibility studies : Completed
- Generating capital from family members: Completed
- Applications for Loan from the bank: In Progress
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents and other relevant Legal Documents: In Progress
- Design of The Company’s Logo: Completed
- Graphic Designs and Printing of Packaging, Marketing/Promotional Materials: In Progress
- Recruitment of employees: In Progress
- Purchase of the needed kitchen and serving wares, furniture, beddings, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business both online and around the community: In Progress
- Health and Safety and Fire Safety Arrangement (License): Secured
- Opening party/launching party planning: In Progress
- Compilation of our list of rooms and (menu) that will be available in our boutique hotel: Completed
- Establishing business relationship with vendors – suppliers of flours/breads, meat, cooking ingredients, coffees and soft drinks, corporate organizations and travel and tour agencies – In Progress
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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..
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
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.
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. 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.
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.
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 & advertising: $150,000
- Working capital: $100,000
The following graph below outlines the pro forma financial projections for Pegasus Hotel.
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 service and amenities will be first class and the concierge will treat guests with extreme care and ensure guest satisfaction is to their liking.
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 standards of guest service. 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 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:
The hotel industry is expected to increase to a $133 billion in the next five years. The 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.
The industry will see particularly strong 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 investment, as they offer higher growth prospects for industry operators.
Demographic profile of target market.
The precise demographics for Austin, Texas are:
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)
Direct and indirect competitors.
Pegasus Hotel will face competition from other companies with similar business profiles. A description of each competitor company 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 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.
Pegasus Hotel will be able to offer the following advantages over their competition:
Brand & value proposition.
Pegasus Hotel will offer the unique value proposition to its clientele:
- 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.
The promotions strategy for Pegasus Hotel is as follows:
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.
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 information.
Third Party Booking Websites
Once the hotel is nearing 60 days towards opening, all of the third party booking 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.
The following will be the operations plan for Pegasus Hotel.
- 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 and operations software. 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 operations of the hotel 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.
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.
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.
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.
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 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
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
Income statement, balance sheet, cash flow statement, 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 business concept, identifies your target customers, presents your marketing plan and details your financial projections.
You can easily complete your hotel business plan using our Hotel Business Plan Template here .
What Are the Main Types of Hotel Companies?
There are many types of hotel companies. Most hotels are affiliated with a hotel franchise company. Other hotel companies distinguish themselves by star level- 4 to 5-star hotels are on the higher end of rate and amenity offerings, whereas 2 to 3-star hotels cater more towards the everyday business travelers and families.
What Are the Main Sources of Revenue and Expenses for a Hotel Business?
The primary source of revenue for a hotel business are the room fees it charges each guest to stay at the hotel. Revenues are also collected for different amenity offerings, such as room service, restaurant and bar revenue, spa revenues, and guest shop revenue.
The key expenses for a hotel business are the costs for inventory, maintenance, supplies, furniture, fixtures, and equipment, technology, and payroll of the staff. Other expenses will be the rent, utilities, and overhead costs, if applicable.
How Do You Get Funding For Your Hotel Business Plan?
Hotel businesses are most likely to receive funding from banks. Typically you will find a local bank and present your business plan to them. Angel investors and other types of capital-raising such as crowdfunding are other common funding sources.
What are the Steps To Start a Hotel Business?
Starting a hotel business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.
1. Develop A Hotel Business Plan - The first step in starting a business is to create a detailed hotel business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.
2. Choose Your Legal 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.
3. 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.
4. 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, investor funding, grants, or crowdfunding platforms.
5. 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.
6. 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.
7. 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.
8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your hotel business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.
Learn more about how to start a successful hotel business:
- How to Start a Hotel Business
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Hotel Business Plan
OK, so you have decided to realize your dream and open your own hotel . You have thought out an amazing concept delivering unparalleled guest service. The next step would be to write a hotel business plan. It’s like a road map to the opening. However, as a seasoned Hotel Management Company , we have seen that this is where most entrepreneurs get stuck.
Why? Many do not have the time and don’t know what to write or how to do the financials. But until you finish your business plan, you will not be able to get the financing either. So you end up with ideas sitting in your head not realizing your dream.
Really it is not that difficult to make a good hotel business plan. It is merely a structured summary of your idea. Most people try to include everything about their hotel concept in the plan. This leads to an indigestible super novel-like bookwork, aka a mess.
The key is, knowing what to include, and what not to include in your hotel business plan. Create a clear road map for success. Excite investors rather than bore them to death like most business plans full of redundant information do. And you need to lead readers down the exact path you want.
One of the main challenges for example is that after reading the first page most businesses often don’t fully understand what the hotel is all about. For investors and lenders, it is crucial they can quickly comprehend your plan, without reading the whole document.
Hotels 101: The Basics of Business Planning
We have put together a hotel business plan template to help you on your way. Check out our approach based on 10 critical points, being:
- Executive Summary
- Company Analysis
- Industry Analysis
- Customer Analysis
- Competitive Analysis
- Strategic Plan
- Operations Plan
- Management Team
- Financial Plan
- Key Milestones
Steps of your Hotel Business Plan
Let’s dive into the step-by-step checklist of what your hotel business plan should look like.
Infographic by Xotels
1. Executive Summary
This first part should consist of two main parts, being:
- Mission Statement (Introduction): a 1 line company description only the essence of your hotel (not 2 lines or a paragraph). It explains why you are in business or which huge need you are solving, that currently is not being met. For example in the case of Qbic Hotels “Moving modular hotels into under-utilized real-estate to reduce build-out cost and time.”
- Objectives : What do you hope to accomplish (i.e. “Reach an annual occupancy of 90%”).
2. Company Analysis
More detailed information on the USPs (unique selling points) of your hotel concept.
3. Industry Analysis
Information on the current industry trends and the current state of the market and how this will impact your hotel. This is needed as investors want to be sure you really understand the hotel industry. This acts as the foundation on which decisions such as trends and developments to follow will be based.
4. Customer Analysis
In-depth information on your target market, including geographic, demographic, socioeconomic, psychographic, and behavioural segmentation details. Which are the types of guests who will mostly stay 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)
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 marketing strategy 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.
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!
Need help to Develop and Manage your Hotel Concept?
Our hotel consultants at XOTELS have helped hundreds of hotels to develop and optimize their businesses.
With cost-effective implementations and best practices developed over years of experience, successful business as a boutique hotel , resort, B&B, aparthotel, hostel, or any other lodging concept for that matter, is guaranteed.
Hope this template has helped you get inspired to start your own hotel business .
Best of luck in your endeavours!
PS. Get in touch with us if you need help developing and managing your hotel concept.
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About the author: patrick landman.
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Boutique Hotel Business Plan 2023
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- Executive Summary
- Business Description
- Company Description
Services & Products
Our services, our products.
- Hospitality Room
- Penthouse Room
- Top of the line equipment
- Beachfront exercise classes
- Personal trainers
- Pre and post workout smoothie bar
- Skincare treatments
- Massage treatment
- Hands & Feet
- Hair & Nails
- Target Market
- Travelers 35-60-years-old with middle to high incomes
- Married 30- to 44-year-olds with household incomes of $150K - $300K
- Individuals and couples seeking luxurious hotel experiences
- Business professionals seeking to close business deals in a unique environment
- Business groups seeking to impress their business partners, new clients, and potential clients
- Individuals and couples visiting the local area
- Individuals and couples seeking to vacation close to home
- Business professionals and corporate leaders traveling from all areas to Pensacola
- Individuals and couples who appreciate luxurious vacations
- Business professionals who appreciate Lucury
- Business professionals seeking to close the deal in the classiest of locations
- Competitor Details
- Guest first approach
- Unique service
- First high end Boutique hotel in Pensacola
- Growing local population
- Premium locations
- Unique atmosphere
- Close to customer
- Strong online presence
- Friendly staff
- Existing competitors
- High supplier cost
- Limited target market
- High-level cost
- Access to funding
- Hotel competition
- Specific market share
- Social media campaigns
- Grow local brand
- Increase customer experience
- Personalized guest experience
- Expand locations
- First of its kind Hotel in Pensacola
- Rising fixed costs
- Fast food options
- Lack of customer trust
- Economic downturn
- Risk of forced closures
- Supplier supply chain troubles
The Competitive Comparison
Comparison overview, benefits comparison.
- Pensacola Luxury Transportation: Transport high class customers
- Oceana's : Provides high end dining options
- J's Pub: Provides customers with a classy opportunity to enjoy alcoholic beverages
- International Hotel Supply: Will supply Oceana with various necessary hotel supplies
- TV's and other electronics
- Decorative accessories
- Cleaning equipment
- Smoke detectors and other safety equipment
- Security Cameras
- Washers and dryers
- Spa and restaurant equipment
- Management staff
- Front desk clerks
- Room Service
- Administrative staff
- Spa and restaurant staff
- General Manager: Jackson Roberts, operational director, will also serve as our general manager thanks to his resourceful prior experience
- General Manager: James Andrew, Project Director and part owner will serve as General Manager. James will take his prior experience and apply it to successfully opening the Hotel.
- Lead Director: Olivia Smith, co-owner, will serve as lead director. Thanks to Olivia's prior experience and extensive knowledge of the industry, her knowledge is vital in the success of the Oceana.
- Social Media Manager: James Andrew will serve as the social media manager given his prior experience and overwhelming success
- Sales Represententive: Charlotte Hernandez will utilize her prior financial skills to represent our Hotel when interacting with potential investors, competitors, customers, and when seeking to keep up with current market trends.
- Management Plan
- Online business resources
- National Hotel Association
- The Hotel Times
- Modern Hotel Management
- Hotel Owner
- Month 1: Finalize design and construction, permits and licenses, menu developments and testing, website launch, social media marketing
- Month 2 and 3: Furniture and bedding finalizations, equipment, finalizations and Hotel set ups, vendor relationship finalization
- Month 4: Staff training and run-throughs, staff uniforms, grand opening campaign, final cleaning, soft opening
- Month 1: Finalize design and construction, permits and licenses
- Month 2: Room developments and testing, website launch, social media marketing,
- Month 3: Hotel set ups, technology finalization
- Month 4: Vendor relationship finalization, training material preparation, finalized staff new hires
- Month 4: Staff uniforms, staff training and run throughs
- Month 5: Grand opening campaign, cash on hand
- Month 6: Final cleaning, soft opening
- Financial Plan
Sources of Finance
- Ecatum LLC. James and Olivia Smith have saved 40% of the needed financing and will be utilizing this for the main cost. We have further highlighted this in our Hotel startup costs checklist.
- Business Line of Credit For the remaining 60% of necessary funding, Oceana Pensacola Hotel will seek a business line of credit through a local bank.
Cash Flow Projection
- Services & Products
- Peers Comparison
- Operation Plan
- Marketing Plan
5-Year Financial Model
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What makes a boutique hotel successful
A boutique hotel often stands out simply because of its smaller size – you could say this is its superpower!
However, to find true success, it needs to stand out for other reasons. It needs to offer many of the amenities and services that guests can find at the bigger end of town, while delivering a unique experience.
Here, we run through what success looks like at a boutique hotel , tips for managing a successful boutique hotel and must-have features for success. We also introduce you to the boutique hotel software that can set your hotel up for success.
Your boutique hotel: What’s the measure of your success?
“Success” is the destination all business owners have in mind, but how do we get there? How do we measure progress along the way? And what things should boutique hotel owners keep in mind when aiming for success?
First of all, success can be personal. Your own business plan and goals can guide you in measuring and tracking what you define as success, whether that’s a certain revenue target, social media followers or occupancy rate. Just make sure your business goals are SMART goals – Specific, Measurable, Achievable, Relevant, and Time-Bound – to make it easier to plan for and measure success.
Business metrics are another way to objectively measure success. Average room rate, occupancy rate, and RevPAR are the three key revenue metrics for small hotels. Understanding these metrics and how to calculate them provides a clear yardstick against which you can measure your achievements.
To start boosting these metrics and achieving these goals, boutique hotels should concentrate on these three areas:
- Creating a strong brand and distinct identity
To compete with larger brands, you need to stand out with a strong story and visual identity. Celebrate the things that make you different and tap into the reasons guests choose to go boutique.
- Understanding and reaching ideal guests
Having a clear picture of the type of guests you should be targeting , and being able to reach that target market and speak directly to them, can be a game-changer for boutique hotels.
- Delighting guests
Happy and satisfied guests, the type who will rave about your hotel to friends, post flattering shots of your property on social media and leave glowing online reviews, are perhaps the ultimate indicator of success.
12 crucial boutique hotel management tips
To achieve the areas of focus above, there are many specific tasks and actions you should prioritise, including:
- Get clear on your unique selling point: remember, it’s your point of difference that will help sell your hotel
- Invest in your brand: a professional logo, thoughtful colour palette, good quality pictures and memorable messaging will provide a springboard to help you hit your targets
- Design your rooms and property with that special boutique flair: you might need to replicate the big hotels in some areas, but design isn’t one of them so get creative
- Tell your story: reinforce your brand, its history and its values, via a smart digital marketing strategy
- Get social: the opportunities are endless (and affordable) for promoting your business on social media
- Create guest profiles: writing down everything you know about your ideal guests and use that to inform business decisions
- Think local: guests are visiting your hometown so integrate your local community and culture into your marketing, amenities and everything you do
- Monitor your online reviews and feedback: encourage fans to go public with their flattering feedback and treat both positive and negative reviews as a learning opportunity and an insight into how you can improve things
- Make it easy for guests to find you: have a distribution strategy and look at online travel agencies, SEO, channel management software and more
- Don’t undersell yourself: get your pricing strategy right and remember that guests are prepared to pay more for a boutique experience
- Focus on your front desk: always look for new and innovative ways to improve and streamline your front desk operations
- Make it personal: a big reason guests choose boutique over big is to feel like a VIP rather than a room number – pay attention to the little things that will make your guests feel welcome.
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Must-have features to be successful with a boutique hotel.
The features of a hotel are a big selling point for potential guests, and boutique hotels need to focus on providing as many “large hotel” features as possible while including extra “boutique” features that’ll help the hotel stand out.
The things that guests have come to expect at larger hotels, and that boutique hotels can also easily offer, include:
- A great website
- Easy booking and check-in
- Incentives and loyalty reward programs
- Free wifi and other in-room technology such as app-based customer service
- Group activities
- Food and beverage options
- Comfortable beds
- Clean rooms and quality furniture.
The more personalised and creative you can make your features, the more successful you’ll be. How can you convince guests to opt for your small hotel experience over a well-known and trusted larger brand?
Establishing your identity and branding is the first step. Then, keeping this in mind, think about crafting an experience that makes your property a preferred choice:
- Can you offer a pet-friendly experience?
- Can you incorporate quirky design or a “themed” experience?
- How does your decor take people away from the everyday?
- Are you exploring ways to highlight local art and food?
- How can your turndown service add another layer of comfort and contentment?
- How can you create a certain “feeling” when people walk through the door?
- How can you go above and beyond when it comes to personalised service? A pillow and toiletries menu? Customised welcome treats?
Boutique hotel software
Boutique hotel software can help you compete with the big hotel chains while showcasing your unique qualities as a boutique property.
It can save time for both you and your guests, untangle complexities, reduce the chance of errors and generally fast-track your success.
An all-in-one hotel property management system can help you to:
- Build a modern, responsive website
- Take direct bookings from your website through the use of a booking engine
- Market your property on hundreds of channels while avoiding double bookings with a channel manager
- Track and measure which online sales channels are generating the most bookings and get insights on daily operations
- Keep an eye on the competitors
- Manage reservations with drag and drop technology
- Streamline housekeeping tasks
- Manage your property on-the-go
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16+ Hotel Business Plan Templates – PDF, Google Docs, MS Word, Apple Pages
If you are planning to start a hotel business and don’t know how to plan it, we have got just the right solution for you. Simply download any of our plan templates that suits you. They come with a ready-made and suggestive content that can be modified as per your hotel requirements. By downloading them, you can ensure you do all the adequate hotel planning before you start-up your business.
Hotel Business Plan Template
Simple Small Hotel Business Plan Template
Hotel Sales Business Plan Template
How to Make a Sample Hotel Business Plan?
- Make a blue-print of the hotel
- List all the commodities that are required for setting up
- Find an adequate place for investment
- Invest in proper marketing
- Believe in the motto of customer satisfaction
Restaurant Business Plan Template
Catering Business Plan Template
Business Plan Outline Template
Printable Business Plan Template
Simple Business Plan Template
Boutique Hotel Business Plan Template Format
Why Do You Need a Hotel Business Plan?
Example of small hotel business plan template.
Resort Hotel Business Plan Example
Hotel Business Plan Sample
Sample Hotel Business Plan Template Pdf
Sample Hotel Business Plan Example
Sample Hotel Business Plan Template
The Benefit of Using Sample Hotel Business Plan
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Preparing a financial plan for your business is important if you plan to pursue business finance options such as loans, according to Inc. Business finance companies look at the short-term viability as well as the long-term potential of a bu...
It’s impossible to eliminate all business risk. Therefore, it’s essential for having a plan for its management. You’ll be developing one covering compliance, environmental, financial, operational and reputation risk management.
While it may be tempting to put off, creating a business plan is an essential part of starting your own business. Plans and proposals should be put in a clear format making it easy for potential investors to understand.
Market & competitive overview: start by describing the state of the hotel industry in your area (the city or region where you plan to open yours)
The Boutique Hotels industry comprises of intimate, luxurious and fashionable hotel environments that feature unique architecture and design. They are also
Business Overview. Pegasus Hotel is a startup full-service independent luxury hotel in Austin, Texas. Owned by two local businessmen, Frank Girard and Miles
Steps of your Hotel Business Plan · 1. Executive Summary · 2. Company Analysis · 3. Industry Analysis · 4. Customer Analysis · 5. Competitive
Staff will be train to provide service which is discreet but immediate; helpful without pestering and always pleasant, never patronizing to our
Here's a bit about the hoteliers we interviewed for this article: 90% of respondents own a single hotel like a boutique hotel or bed and
Management Plan · Month 1: Finalize design and construction, permits and licenses · Month 2: Room developments and testing, website launch, social media marketing
Whether you've been running your small hotel business for a while or you're yet to get your boutique hotel off the ground, creating a hotel business plan is
Your own business plan and goals can guide you in measuring and tracking
Business Plan: Madeira Heritage Boutique Hotel. Rui Manuel de Olim. Master's in Marketing. Supervisor: Prof. Hélia Gonçalves Pereira, Associate Professor.
How to Make a Sample Hotel Business Plan? · Make a blue-print of the hotel · List all the commodities that are required for setting up · Find an adequate place for