business plan for budget hotel

Hotel Business Plan Template

Written by Dave Lavinsky

Hotel Business Plan

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

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

Sample Hotel Business Plan Template

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

Executive Summary

Business overview.

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

Service Offering

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

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

Customer Focus

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

Management Team

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

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

Success Factors

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

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

Financial Highlights

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

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

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

Company Analysis

Who is pegasus hotel.

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

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

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

Pegasus Hotel History

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

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

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

Pegasus Hotel Services

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

Industry Analysis

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

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

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

Customer Analysis

Demographic profile of target market.

The precise demographics for Austin, Texas are:

Customer Segmentation

Pegasus Hotel will primarily target the following customer profiles:

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

Competitive Analysis

Direct and indirect competitors.

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

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

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

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

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

Kimber Modern

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

Kimber Modern offers the following hotel amenities to its guests:

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

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

The Cat Noir Hotel

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

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

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

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

Competitive Advantage

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

Marketing Plan

Brand & value proposition.

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

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

Promotions Strategy

The promotions strategy for Pegasus Hotel is as follows:

Social Media

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

Website/SEO Marketing

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

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

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

Third Party Booking Websites / Online Travel Agencies

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

Bridal Shows and Wedding Industry Events

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

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

Operations Plan

The following will be the operations plan for Pegasus Hotel.

Operation Functions:

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

Milestones:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Financial Plan

Key revenue & costs.

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

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

Funding Requirements and Use of Funds

• Marketing & advertising: $150,000

Key Assumptions

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

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

Financial Projections

Income statement.

Balance Sheet

Cash Flow Statement

Free Hotel Business Plan Template PDF

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

Hotel Business Plan FAQs

What is a hotel business plan.

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

What are the Steps To Start a Hotel Business?

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

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

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

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

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

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

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

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

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

Learn more about how to start a new hotel business:

How to Start a Hotel Business

Other Helpful Business Plan Templates

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• Sample Business Plans

Hotel Business Plan

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

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

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

Need help writing your plan in order?

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

Sounds good? Let’s dive right in!

What Is a Hotel Business Plan?

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

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

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

Why You Need a Business Plan for Your Hotel?

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

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

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

Define your goals

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

Manage finances better

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

Get funding from investors or banks

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

Know your competitors & customers

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

Identify potential risks

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

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

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

Key Components of a Hotel Business Plan

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

1. Executive Summary

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

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

In your executive summary, consider including the following details:

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

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

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2. Company Overview

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

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

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

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

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

3. Market Analysis

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

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

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

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

4. Competitive Analysis

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

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

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

5. Service Offerings

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

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

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

6. Sales and Marketing Strategies

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

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

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

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

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

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

7. Management Team

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

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

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

8. Operations Plan

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

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

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

9. Financial Plan

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

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

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

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

10. Appendix

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

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

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

Download Free Hotel Business Plan Template

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

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

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

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

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

Start Preparing Your Business Plan with AI

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

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

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

So, wait no longer; start preparing your plan!

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Frequently Asked Questions

Do i need to include financial projections in my hotel business plan.

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

What marketing strategies are effective for a new hotel?

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

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

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

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

What tips can help secure funding for a hotel business?

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

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

About the Author

Upmetrics Team

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

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Hotel business plan template + PDF

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

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

How to start a hotel business plan

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

Hotel business plan sample

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

• Organizational Structure and Management Team

Products or Services

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

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

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

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

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

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

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

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

Hotel business planning

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Hotel business plan

Organizational structure and management.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Market analysis for hotel business plan

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Business plan for hospitality industry

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

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

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

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

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

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

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

Sales Forecast

Profit and Loss Forecast

Cash flow Forecast

Balance Sheet

Hotel management business plan

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

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

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

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

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

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

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

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

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

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

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Trending now view all, hotel budget guide for 2023: everything you need to know.

This guide will show you everything you need to know about hotel budgets and how to create your hotel budget for 2023. 

To create this, I worked with David Lund , “ The Hotel Financial Coach ,” who has 30+ years of operational and financial leadership experience, working with companies such as Hilton, Best Western, Fairmont Hotels and Resorts, Coast Hotels, Watermark, Pacific Hospitality Group, Atlific Hotels, and many others. David Santos , Chief Financial Officer at Savoy Hotel & Beach Club, also contributed.

In this guide, you’ll learn:

Let’s get started! 

What is a hotel budget?

A hotel budget is a plan for how money will be generated and spent to achieve goals.

In Lund’s words, “A budget is a business plan focused on numbers.” He likens it to a map. “Before you go on a trip, you hopefully have a map of where you’re going so you can figure out your journey and changes you need to make to get to that final destination.” 

Why do hotels create budgets?

Hotels create budgets to stay organized and align their teams on delivering financial results for owners and investors. 

“The biggest challenge in the hotel business is when people aren’t organized enough to manage the operations and make changes they need to make to deliver the financial results that are possible,” Lund says.

The hotel budging process is essentially a goal-setting process, added Santos. “A budget is nothing other than a plan to achieve a goal. It shows your team where they need to go, and what they can get if they achieve that goal.” 

In his experience, the process of creating a budget gives leadership a look into how the hotel is being managed. “If the budgeting process is painful and complex, it’s a sign that the hotel is not organized, that the information does not flow through the team, and that ultimately, money is being left on the table.”

Does every hotel need a budget?

While many hotels don’t have a budget today, even small, independent hotels can benefit from having one.

“I am working with an independent family-owned hotel that does $15 million in revenue each year,” Lund shared. “It’s always been run by intuition alone, and they’ve been successful. But now they realize that they need better reporting tools to zero in on how to be more profitable and how to take the business to the next level.”

When is hotel budget season?

Hotel budgets are typically started in August, with the first presentations due in early September. 

“We typically aim to present the budget to a couple of different levels of management within the organization and then finally present it to ownership by November,” Lund said. 

How do you create a hotel budget?

Creating a budget involves having each department leader work out their resources, payroll, expenses, and revenues.

“The budgeting process typically starts by asking the revenue manager what they think room revenue will be in the coming year,” Lund said. “How many room nights do we expect to sell and at what rate? The rest of the team, including food and beverage leaders, will use rooms as a base to extrapolate what might happen in their area and the resources they’re going to need based on fluctuations and seasonality in the business.”

From here, others should be involved. 

Who should be involved in the budgeting process 

All department leaders need to be involved in the budget creation process, Lund says. This includes:

• Front office manager
• Guest services manager
• Housekeeping/Rooms manager 
• Maintenance manager
• The manager of every outlet on the property (food & beverage, spa, golf, etc)
• People/HR director
• Sales leader
• Marketing leader

Throughout this whole process, you will work closely with your finance team: the Director of Finance or Comptroller. 

Assign tasks and timelines 

Once you’ve identified all the people that will be part of this process, you need to assign tasks and deadlines for completion. 

“You need to let your revenue manager know that you need day-by-day rooms on the books, and average rates by August 15,” Lund shared as an example. “You need to tell your food and beverage manager you need all F&B revenues and banquet revenues done by August 22. And then you let everyone else know that these sets of information will be made available to all the other departments, with the expectation they create their payroll and expense projections for their departments.”

Translate forecasts to budgets

Each team needs to translate the forecasts from the revenue and F&B teams into budgets for their areas. 

“I would tell my teams that based on what we believe we can produce for revenue, I see about a 6% increase in the top line, which means we need a 50% flow through to GOP. So everyone can basically have a 3% increase on expenses and payroll,” Lund said. “This way we don’t spend all additional revenue and expenses and not make any more profit. As business leaders, we need to find ways to create profit.”

Provide your teams with guidance 

Guidance like this is helpful for team leaders, especially those who are new to the process, Lund advises.  

“Sometimes I would prepare a little cheat sheet which included the last five years in a column with key measurements, including the target for the year ahead, so we knew how things needed to be laid out to make sense in the budget.”

This combination of strategic guidance with zero-based budgeting (described later in this article) helps ensure that during times of high rate growth like we’ve seen this year, expenses don’t get out of hand unnecessarily.

Add qualitative reasoning for context

When creating your budget, Santos has found it is important to share context around the numbers.

“It is very important to add qualitative reasoning to the quantitative information. If things are forecasted to change, you need to present why they will change to your stakeholders.” 

Budgets don’t need to be overly difficult 

“Budgets don’t need to be terribly hard to prepare,” Lund observed. “While they are a big project involving a lot of people and departments, if everyone does their part you can pull it together relatively easily the first time. Things such as standardizing forms and Excel sheets help accelerate the process, but coaching and encouragement play a big role in streamlining and making this process as efficient as it can be.”

Who reviews and approves the hotel budget?

After the budget is prepared and presented initially, it’s ultimately approved by the owner of the hotel. 

For branded hotels, the brand approves the budget first and then ownership does.

Does a hotel budget change throughout the year? 

Not usually. “Once it’s done, it’s set in stone and we don’t make changes to it,” Lund says.

The 3 ways to budget for expenses

There are three primary ways to budget for expenses in a hotel.

Expense budgeting approach #1: Last year plus X%

This approach simply takes what you spent this year and adds a number such as 5% for inflation across each category. 

It’s the fastest and easiest approach.

Expense budgeting approach #2: Cost per room occupied (or cost per customer served)

This is where you divide each expense category by the number of rooms sold. 

For example, if you spent $60,000 on cleaning supplies in your Rooms department, and know that you sold 120,000 room nights, you spent $0.50 per room occupied on cleaning supplies.

People using this approach typically add for inflation as noted above.

However, neither of these approaches is very good, Lund says. “They don’t show you what really needs to be in each category.” That’s why he recommends a third approach. 

Expense budgeting approach #3: Zero-based budgeting 

Lund describes zero-based budgeting with the analogy of a grocery store. 

“If I give you $200 and sent you to the grocery store, you would come back with $200 worth of groceries. But if I sent you to the grocery store with a list of everything I want in detail, and provided $200, you would come back with everything I need on that list.”

Zero-based budgeting starts from scratch and goes category by category to figure out which expenses are essential. Nothing is assumed. By going through this exercise, everyone involved has more visibility into how much each thing costs, which is valuable in case costs need to be cut at some point.

 “If you don’t have that list of essential purchases, you don’t know where to start. That’s why a percentage of revenue or cost per room occupied approach is not that useful.”

Lund recalls reviewing budgets and asking team leaders where they got their numbers. “You can tell right away when people have done their homework because they can list exactly how much toilet paper or mopheads cost. If they don’t have that information, it might indicate they’re not operating as efficiently as they could be and might be wasting resources. People that do not use zero-based budgeting often end up ordering a lot of things that they don’t need or are over-ordering supplies. They’ll also be short on things all the time. They won’t be operating as effectively as they could be because they’re not organized.”

The Uniform System Of Accounts For The Lodging Industry

Lund recommends hoteliers reference The Uniform System Of Accounts For The Lodging Industry (USALI) when going through their budgeting and financial planning process. 

“I describe the USALI as basically our Bible that tells us where every expense goes in a budget.”

Lund is seeing how there’s often debate around expense allocation among hotel department managers. “Who is paying for cable TV – is that a Rooms expense or a Maintenance expense?“ 

The Uniform System Of Accounts answers questions like these and shows exactly where everything should go. “Using this removes a lot of friction that would otherwise be common in the hotel budgeting process.”

Surprisingly, Lund finds many hotels don’t yet use the USALI, and create unnecessary friction for themselves.

“Someone once told me the barrier to entry and hospitality is incredibly low, but the barrier to success is incredibly high. I found that those who focus on the details of their financial statements, accounting, and budgets are highly organized operators that tend to be the most successful.”

Getting into the details of financial planning with a budget is important because of the complexity of running a hotel. 

“If you’re running any other business like a corner store, you would get a financial statement from your accountant that lists revenues and expenses and profit. Hotels are completely different because there are so many revenue and cost centers. We have different room types, different food and beverage outlets, and various amenities on the property. We may have a golf department, a spa department, and a bowling alley. All of these are like little businesses that roll up into one financial statement, but we need the details for each of them to understand where we’re being successful or where we are lacking.”

What types of expense categories are there in a hotel budget?

Expenses are typically broken down into department expenses and general operating expenses. 

Rooms and Food & Beverage are typically the largest departments, with other departments summarized on the operating statement. 

General “undistributed” operating expenses include things such as administrative expenses, sales and marketing expenses, and property operation and maintenance. 

Example expenses by department 

A good hotel budget goes beyond the high-level categories above to show details for each department. For example, the Rooms department of a hotel is often the largest expense category and includes the following sub-categories:

• Cleaning Supplies
• Cluster Services
• Commissions And Fees. 
• Complimentary Food And Beverage. 
• Complimentary In-Room Media Entertainment 
• Complimentary Service Services And Gifts 
• Contract Services 
• Corporate Office Reimbursables 
• Decorations 
• Dues And Subscriptions 
• Entertainment In-house 
• Equipment Rental
• Guest Relocation
• Guest Supplies
• Guest Transportation 
• Laundry And Dry Cleaning 
• Licenses And Permits
• Miscellaneous 
• Operating Supplies
• Postage 
• Printing and Stationery
• Reservations 
• Royalty Fees 
• Training 
• Travel 
• Uniforms 
• Uniform Laundry 

(You can see the full list for each department in The Uniform System Of Accounts For The Lodging Industry.)

Expense benchmarking for budget guidance

Whether you are creating a budget for the first time or simply want to know if your expenses are in line with industry standards, there are benchmarking tools that can help. 

“There’s a company called Hotstats that gathers all the profit and loss of data and organizes it by geography and by hotel type for people who want to know,” Lund said. 

He likens the approach to STAR reports. “Before STR, we would call around and get rates from all the hotels in our comps. STAR provides it to everybody now with a subscription. You get all the data and try to beat your competition every month.”

“Hotstats does the same thing with P&L data so that you can not only look at GOPPAR but you can break it down to all of its major components and then benchmark yourself against your competition. I think there’s going to be a big change in our industry in the next 10-20 years shifting to measuring profit performance rather than just revenue performance.” 

The difference between hotel operating expenses and capital expenditures

People often use the word “expenses” to describe everything that costs something. They often look at something like payroll as an expense. But that’s not accurate, Lund says. 

“Technically, when we talk about expenses, we’re not talking about payroll, we’re talking about goods and services. When we look at the goods and services a hotel consumes, there are two types of expenses: operating expenses and capital expenses. In larger organizations, typically the company defines which is which.”

At one company Lund used to work at, expenditures of $5,000 or more were considered capital expenses. “We needed to get approval and have a capital expenditure form signed that would list everything we wanted to buy.”

For example, if you want to buy five new point-of-sale terminals and they are $5,000 each, you can’t put that number through to your P&L – it’s too big. You need to list it as an asset and then amortize it over its useful life. But if you’re buying toilet paper for this month, that’s an operating expense that goes straight to your P&L. 

“Operating expenses are things that we can use on a current basis and can buy on a current basis. In contrast, I can’t buy a point-of-sale system on a current basis because that machine is going to last a while.”

Metrics that matter for hotels

When I asked Lund and Santos what metric they use to measure hotel performance, they both agreed: GOPPAR was the best.

Here’s a video that explains GOPPAR:

“RevPAR is for amateurs,” Lund told me – citing the often-used hotel performance metric. 

“RevPAR is only a starting point in understanding hotel performance. It’s like a car that goes really fast but can’t turn the corner. What’s the point? Yes, we want to generate lots of revenue, but we also want to be able to turn a profit.” 

“GOPPAR is the gold standard for telling you how good your management is compared to the competition.” 

Why involving your teams in creating budgets is important

If you think about all the people that need to be involved in the budget creation process, you might think it’s excessive – but involving these functional leaders is important, Lund says. He learned this through his own early experience.  

“I vividly remember the first time I was ever involved in the budgeting process,” Lund recalls. “I was an assistant controller and my boss told me he would be away for six weeks on vacation and that I would be creating the budget. I learned so much from that experience because I had to get into every single detail and figure out where we were spending money, and where money was coming from. After that experience, I was hooked.”

Lund also was surprised by how much he enjoyed the process. “I wasn’t that into math before that, but I learned the operational finances of a hotel are a completely different thing. They mean something for the day-to-day operations. Through budgeting, I learned a lot about our business and was much more capable of contributing to the conversation about strategy and where we can improve.”

Through this experience, Lund learned that involving his teams in creating the budget not only helped them learn about the business but made them buy into the strategy.

The big mistake hoteliers can make when creating a budget

The biggest mistake hoteliers can make when creating a budget is just giving their teams the budget as numbers for them to work off of without involving them in the process. “Without giving input, they won’t have ownership.“

For those new to the business, the budgeting process may seem intimidating – but Lund’s mantra of “the only thing we ever know about the budget is that it’s wrong” can provide some reassurance. 

“I’m working with a client right now who is creating a budget for the first time, and I keep repeating to them that their job is to share what they think will happen – and they don’t need to obsess about it being 100% accurate. The first objective is just to get things down on paper and create a first draft of the budget. From that draft, we can discuss and evolve it to where it needs to be. But I don’t want people thinking there needs to be complex algebra in creating the budget. I remind them that we’re just creating a business plan.”

How is a hotel budget used throughout the year? 

Hotel budgets are used throughout the year with a rolling forecast. “If we finish January, we would have our budget for the remaining 11 months and one month of actual performance. What we do with that is incorporate it into a 30, 60, 90-day forecast from that point in time,” Lund said.

“If I’m preparing a budget right now and it’s September and we make changes to that budget, it gets presented to ownership. But by the time January rolls around, the world could be a very different place.”

“The budget never changes. It gets locked up on approval. But once approved, we start using the actual results plus the forecast as we go. So in February, we have two months of actuals plus ten months forecasted. In March, it’s three months of actuals plus nine months forecasted. And as we get closer to the end of the year, we can really zero in on where we’re going to end up. So if we’re looking at 2022’s rolling forecast we would have eight months of actual performance and four months of forecasts – and a lot more certainty on where we will end up for the year.”

“The most important thing when I’m looking at next year’s budget is to look at where we are performing this year. Of course, the last couple of years have been difficult, but we can reference 2019 and 2018. Starting with what we know about the market and about our competition and then layering our budget on top of that with a rolling forecast is the key to being on top of the current operating conditions in your hotel.”

Incentives to align around profitability 

If GOPPAR is the key metric, how do you align your teams around this? 

Most branded, managed hotels have what is called a “management incentive plan.” 

It’s basically an annual bonus plan based on four or five different metrics, Lund said. “Typically, managers make up to 40% of their salary as a bonus depending on how successful the hotel is. The metrics the plan is based on might include things like guest satisfaction scores, employee satisfaction scores, health and safety scores, RevPAR Index, and productivity measures. But the most important is profit – and that metric is sometimes the gatekeeper. if the hotel doesn’t make a profit none of the other metrics kick in and the bonus won’t be paid out.”

“Ensuring your teams are compensated on the most important metrics is key to aligning them on delivering your ultimate business goals,” Lund recommends. 

Advice for the 2023 hotel budgeting season

The hospitality industry has seen unprecedented volatility over the past few years, which may make creating a budget for 2023 seem intimidating. But as Lund always advises “the only thing we know about a budget is that it’s wrong.”

Start with the end in mind

Lund suggests beginning by thinking about what a good year could look like. “What would a great 2023 look like? Over the past few years, most hotels have experienced a lot but also learned new things to help them control costs. So it’s good to start with a vision that typically comes from the general manager or someone with a view from the top. Someone who can see the entire operation and also the competitive market and other macro factors.”

From this perspective, you might tell your teams that you expect to increase room revenue by at least 7% based on what you heard from your revenue manager.

Get into the details with zero-based budgeting

From there, Lund recommends getting into the details with zero-based budgeting as described above. 

“If you’ve never done zero-based expenses before, you should start. If you haven’t created or use a staffing guide before, you should. These things will give you more detail on what’s going on in your business. They will help you operate much more effectively than if you just take expenses from last year and add a 5% cost increase to create your budget.”

This is especially important in a world that’s been highly volatile over the past few years with dramatic cuts and now high demand at many hotels.

“Because I’ve done these hundreds of times, I can guarantee you if you don’t create a zero-based budget, you’re paying for things you don’t even use because people just keep sending you invoices. I found things such as hotels paying for beepers that hadn’t been used in years. This is why it’s so important to get into the details.”

Create a day-by-day revenue budget 

After getting into the details of expenses, Lund recommends hotels create a day-by-day revenue budget. 

“If you don’t create a day-by-day budget, you’re missing out. A lot of people will just create revenue forecasts by the month and say things like July is their busiest month. But doing this day-by-day for at least your major market segments will help you understand rates and revenue potential in more detail.”

Create a marketing plan that generates demand 

Finally, Lund encourages hotels to ensure they’re investing in marketing to create demand that will be captured by smart revenue strategy. 

“Where will you be investing to generate the revenues that will pay for everything? It’s important to revisit this because markets are always changing – especially now. If you’ve been in a group hotel in the past, you can’t rely on that anymore because travel is changing quickly. Many hotels are seeing business travel at lower levels than they’ve been historically. But every market is different and you need to understand where the opportunity lies and how you create more demand for your property.”

Learn more about David Lund by visiting his website, The Hotel Financial Coach .

If you’d like to receive new guides like these, sign up for my Hotel Operator’s Weekly Briefing email.

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Privacy Overview

How to Write a Successful Hotel Business Plan + Template

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

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

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

Download the Ultimate Hotel Business Plan Template

What is a Hotel Business Plan?

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

Why Write a Hotel Business Plan?

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

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

Writing an Effective Hotel Business Plan

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

Executive Summary

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

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

Company Description

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

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

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

Industry Analysis

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

Questions to answer include:

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

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

Customer Analysis

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

For example, a hotel business’ customers may include:

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

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

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

Competitive Analysis

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

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

Below are sample competitive advantages your hotel business may have:

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

Marketing Plan

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

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

Operations Plan

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

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

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

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

Management Team

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

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

Financial Plan

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

This includes the following three financial statements:

Income Statement

Your income statement should include:

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

Sample Income Statement for a Startup Hotel Business

Balance Sheet

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

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

Sample Balance Sheet for a Startup Hotel Business

Cash Flow Statement

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

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

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

Sample Cash Flow Statement for a Startup Hotel Business

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

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

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

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

Finish Your Hotel Business Plan in 1 Day!

Hotel Business Plan Guide + Sample Plan

July 6, 2023

Adam Hoeksema

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

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

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

Hotel Business Plan Outline

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

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

What to include in a hotel business plan?

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

We suggest the following sections for your Hotel business plan

Executive Summary

Company Description

Market Analysis

Product and Service Offerings

Marketing Plan & Customer Acquisition

Operating Plan

Financial Plan

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

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

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

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

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

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

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

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

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

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

To develop precise projections, consider the following key steps:

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

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

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

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

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

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

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

Table of Contents

1. executive summary.

1.1 Organization Overview

1.2. Objectives

1.3. Mission Statement

2. Organization Description

2.1. Organization History

2.2. Legal Structure

2.3. Unique Value Proposition

2.4. Target Beneficiaries

3. Market Analysis

3.1. industry overview.

3.2. Collaborator and Competitor Identification

3.3. Target Beneficiaries

Key Point  1

4. Marketing and Fundraising

4.1. Strategic Plan

4.2. Program or Service Offerings:

4.4. Distribution Channels

4.5. Promotions and Fundraising

Key Point  2

5. Organizational Structure and Management

5.1. Organization’s Facility & Location

5.2. Staffing Plan and Volunteer Management

5.3. Governance, Financial Management, and Accountability

Key Point  3

6. financial plan.

6.1. Startup Costs

6.3. Expense Projections

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

7.1. Supporting Documents

7.2. Glossary of Term

7.3. References and Resources

Key Point  5

 1.1. company overview.

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

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

   1.2. Objectives

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

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

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

  1.3. Mission Statement

 Describes the hotel's purpose and core values.

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

  1.4. Keys to Success

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

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

2. Company Description

   2.1. company history.

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

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

   2.2. Legal Structure

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

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

 2.3. Unique Selling Proposition

  Emphasizes the hotel's competitive advantage or unique offerings.

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

  2.4. Target Market

Defines the hotel's ideal customer base.

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

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

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

3.2. Competitor Analysis

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

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

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

3.3. Target Market Analysis

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

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

3.4. Market Opportunities

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

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

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

4. Marketing and Sales Strategy

4.1. product or service offerings: .

Describes the hotel's products or services in detail.

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

4.2. Pricing Strategy

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

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

4.3. Sales Strategy

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

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

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

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

4.5. Promotions and Advertising

 Details the hotel's promotional efforts and advertising strategies.

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

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

5. Facility Maintenance and Operations Plan:

   5.1. facility location and layout.

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

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

5.2. Safety and Security:

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

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

5.3. Cleaning and Housekeeping:

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

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

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

5.4. Energy Efficiency:

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

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

5.4.  Inventory Management:

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

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

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

   6.1. Startup Costs

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

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

6.2. Revenue Projections

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

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

Watch how to create financial projections for your Hotel

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

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

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

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

 Outlines the hotel's projected cash inflows and outflows.

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

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

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

Key Point  4

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

   7.1. Supporting Documents

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

   7.2. Glossary of Term

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

   7.3. References and Resources

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

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

How do I start a hotel business from scratch?

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

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

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

What marketing strategies can I use to promote my hotel?

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

About the Author

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

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Hotel Business Plan Template

Hotel business plan.

If you want to start a new hotel business or expand your current one, you need a business plan.

Over the past 20+ years, we have helped over 5,000 entrepreneurs and business owners create business plans to start and grow their hotel businesses.

Below are links to each section of your hotel business plan template:

• Executive Summary – The Executive Summary is the most important section of your business plan. It should be clear, concise and provide an overview of your business plan.
• Company Overview – The company analysis should include your company name, business model, location, history, and a brief description of your hotel’s services. You can also include your company’s mission statement and/or a list of your key objectives.
• Industry Analysis – The Industry Analysis should include information on the size of the hospitality industry, trends, competition and growth potential.
• Customer Analysis – The Customer Analysis should include a description of your target market, customer needs and how you plan to attract and retain your target audience.
• Competitive Analysis – The Competitive Analysis should include a description of your local competition, their strengths and weaknesses and your unique selling point for how you plan to compete with them.
• Marketing Plan – The Marketing Plan should include your sales and hotel marketing strategy, pricing strategy, and the promotion plan for your hotel. It should also include marketing efforts on third-party websites and online travel agencies.
• Operations Plan – The Operations Plan should include a description of your hotel operations, policies, and day-to-day procedures. It may also include your hotel business milestones.
• Management Team – The Management Team section should include biographies of the hotel owner, your hotel management staff, and their job descriptions.
• Financial Plan – The Financial Plan should include your hotel’s financial projections, funding requirements, and capital investment analysis.
• Appendix – The Appendix should include any supporting documents such as your hotel’s lease, contracts, permits, licenses, and complete financial statements including the income statement, balance sheet and cash flow statement.

Next Section: Executive Summary >

Hotel Business Plan FAQs

What is the easiest way to complete my hotel business plan, where can i download a hotel business plan pdf, what is a hotel business plan, why do you need a business plan for a hotel, what are the sources of funding for a hotel business.

Hotels are usually funded through business loans. Often you’ll have to use personal savings and/or angel investors to help with the down payment on the business loan.

In the financial model section of your plan, be sure to detail, among other things, how much it will cost to build your hotel and the key uses of funds (e.g., building the hotel, cost to furnish the hotel, staffing costs, working capital, etc.).

Note that if you already operate several hotels, private equity investors might be interested in helping to finance your expansion.

How Do You Start a Hotel Business?

Starting a hotel business is easy with these 14 steps:

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

Learn more about how to start a hotel .

HOTEL BUSINESS PLAN OUTLINE

• Hotel Business Plan Home
• 1. Executive Summary
• 2. Company Overview
• 3. Industry Analysis
• 4. Customer Analysis
• 5. Competitive Analysis
• 6. Marketing Plan
• 7. Operations Plan
• 8. Management Team
• 9. Financial Plan
• 10. Appendix
• Hotel Business Plan Summary

Start Your Hotel Plan Here

Other Helpful Business Plan Articles & Templates

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Here is a free business plan sample for a hotel.

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

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

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

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

How to draft a great business plan for your hotel?

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

A free example of business plan for a hotel

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

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

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

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

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

Market Opportunity

Market data and figures.

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

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

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

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

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

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

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

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

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

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

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

Success Factors

Several key factors contribute to the success of a hotel.

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

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

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

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

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

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

The Project

Project presentation.

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

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

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

Value Proposition

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

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

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

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

Project Owner

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

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

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

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

The Market Study

Market segments.

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

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

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

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

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

SWOT Analysis

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

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

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

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

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

Competitor Analysis

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

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

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

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

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

Competitive Advantages

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

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

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

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

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

The Strategy

Development plan.

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

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

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

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

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

Business Model Canvas

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

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

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

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

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

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

Marketing Strategy

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

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

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

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

Risk Policy

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

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

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

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

Why Our Project is Viable

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

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

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

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

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

The Financial Plan

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

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

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

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

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

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

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

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

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

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

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

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

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

It will indicate when our business will become financially sustainable.

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

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

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

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Revenue Management

• Hotel Consulting
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• Asset Management
• Pre-Opening
• Owner Representation
• Turnaround Management
• About Xotels

Hotel Budget Plan: Are you Ready for 2024?

No time to lose, the next year is almost here. And a good hotel budget plan isn’t made overnight.

How far are you with your targets, budget, and plan of attack for next year? What REVPAR and GOPPAR do you need to achieve? Have you gone over what next year will look like in terms of performance, and does it describe all actions in detail? Does everyone on the team know what the objectives are and which steps to take to get there? Did you make your new hotel budget already or are you right in the middle? What methodology are you using? Are you simply adding 3% to 5% each month based on last year’s performance? Or are you really putting your teeth into it and drilling down per segment, per channel, per account, and per day?

Now is the time to take action to build your hotel budget plan! Read through our step-by-step guide explaining how to get ready for 2024 with our hotel management company´s best hotel budgeting practices.

This article answers all your hotel budgeting questions:

Does your Hotel Budget have to be Adjusted throughout the Year?

So, why are budgets so important for hotels.

• It´s a Team Effort: So Get Them Evolved!

Lack of Hotel Budget Sophistication

• How to Get Started: a Breakdown per Department

Revenue Management & Distribution

1. expense budgeting approach: last year with x% increase, 2. zero-based budgeting.

• 3. Cost per room occupied (CPOR)

Get your Data on Time: Setting Deadlines for your Team

What is a hotel budget plan and when do you start.

A hotel budget is a plan that explains how revenue will be generated and spent each month for the upcoming year to reach the goals and objectives. It also helps hotels to make sure there’s enough money every month to pay the bills and reserve money for other expenses such as investments.

In other words, the budget shows you how much money you´re going to make and can be seen as a roadmap of how next year will look like in terms of performance.

Typically, the hotel budget season starts towards the end of August with presentations to management starting the following month. However, with trends ever evolving and Covid-19 impacting booking behaviour, it is important to take factors such as booking windows, cancellations trends, increasing room rates, and inflation into account. All of these factors can heavily influence the accuracy of your hotel budget plan. In practical terms, taking an agile approach and adjusting your budget later this budget season can be beneficial for any hotel.

The budget generally doesn´t change, this is where the hotel forecast comes into play where you start comparing your budget vs. your forecast.

Should Every Hotel Create a Budget Plan?

The answer is simple: YES Simply running a hotel on intuition doesn’t cut it anymore.

Whether your hotel is a boutique property with 15 rooms, or a 400 key large scale urban hotel, it is essential to have sophisticated planning and reporting in place to maximise results.

The hotel industry is a highly competitive industry. To compete, hotels need to be accurate with their budgeting to ensure financial results are aligned with the business objectives, and that their teams are organised and prepared to reach those goals.

Without giving your team the much needed goals, there´s no clear direction making it nearly impossible for them to know if they’re on the right track to reach the goals by the end of the year.

It’s A Team Effort: So Get Them Evolved!

So who should be involved in the budget-making process?

Understanding how each department contributes to the performance of the hotel is essential.

So, why not include all department heads in the process?

• Front Office Manager
• Rooms Director / Head of Operations
• Other departments: Spa, F&B, outlet managers, Golf, Housekeeping etc.
• Hotel Manager / GM
• Finance Team
• Revenue Managers

Where Many Hotels Go Wrong: The Budget Pitfall

It seems that not everyone goes into as much detail when making their budget. I have to share with you a funny story about budgeting with you. So we are working with many different hoteliers, and in this case, it pertains to the management of a resort. Hotels in vacation markets for many have been influenced (indoctrinated) by tour operators on how to manage their property. As a result, budgets are made per person rather than per room, meaning that the total revenue objectives become ‘flexible’ if the measurement of results does not incorporate enough factors.

In this particular case, the hotel’s management was under the impression the hotel was performing on target as the correct average rate per person was achieved. Unfortunately, the average occupancy per person per room was actually 20% lower than normal, which made it impossible to reach the total revenue target, because the average room rate was totally off.

Hold on, it gets even funnier. When we were working through the budget for each month, we noticed that several months had targets at revenue levels below last year. Upon probing the reasoning behind this, we were explained that some tour operators had informed them they were expecting 10% fewer bookings from a particular country. No one ever raised the thought to initiate partnerships with other distribution channels to offset this possible decrease in demand. Capturing more market share, or penetrating new markets was just not in their mindset.

Sorry, I just had to get this rant off my chest. But unfortunately, it is very typical for our industry. Especially in resort hotel markets, tour operators have for too long influenced hoteliers on how to run their business. Hoteliers need to get more strategic insight and understanding of the financial side of the business. Moreover, they have to become more creative in methods and revenue strategies to increase the performance of their property.

An industry colleague I respect highly called me last week, asking if I knew of any online tool which helps hoteliers develop a professional plan of approach. Not just a standard one, like most hotels, punch out, listing a few trade fairs and showing a % increase per segment. No, he was looking for a system that really guides you through every detail and forces you to look at all aspects that need to be incorporated. And he is right; marketing plans in general are too superficial. It is time they are taken to a more professional level, and become complete. Hotels are multi-million dollar or euro businesses and they demand an expert strategic and structural approach.

Step by Step Guide to Creating a Hotel Budget Plan

First, let’s talk about some ground rules before jumping into the specifications of budgeting. Make sure to consider the following points for improving accuracy and maximizing accuracy:

• Provide context around the numbers, not just enumerate – Telling the story of how revenue will be generated in the coming year, and which factors contribute to bringing in business will help your team to understand and contribute to the plan, benefiting the quality of the end result. 
• Multi-scenario – as we all know and have seen lately, trends can shift rapidly. Therefore, taking a proactive and agile approach is important to better navigate market fluctuations.
• Don’t overcomplicate – keep explanations and other overcomplicated jargon out of the reports. Again, simplifying allows for clear communication and will make it easier to get your team on board.

How to Get Started: Create a Breakdown per Hotel Department

Now we have cleared some ground rules, we can take a look at some of the elements you need to incorporate in the plan for next year. 

Taking into consideration the continuing growth of online sales and the quick adoption of mobile technology by consumers, we have put together some questions that will need your attention in the upcoming year:

Key Considerations per Hotel Department

The basis of the target or budget lies in a detailed demand calendar . Get a clear overview of what drove revenues each day. Map the events, conferences, expositions, trade fairs, concerts, holidays, vacations, long weekends, etc to the following year. You will start seeing a clear shift already.

Perform displacement calculations on all segments, channels, and accounts to uncover hidden revenue potential. Incorporate channel distribution costs like travel agent commission, agency fees, and marketing investments, payroll for sales, marketing, and reservation, to determine the true net value of each segment.

Here are some questions you should include in your budgeting process:

• How much revenue do we expect our hotel website to produce next year?
• What growth are we expecting from the current year?
• What is the balance between print and internet marketing?
• Are we shifting the budget from offline to online?
• What is our plan to attract more traffic to our website?
• What will we do to increase the conversion of our hotel website?
• What new online marketing initiatives will we launch next year?
• How will we collect more emails, mobile phone numbers, and FaceBook connections to be able to directly engage with our guests?
• How will we attract our different client target markets and niche guest segments?
• How will we measure the effect and ROI of all our marketing actions?
• Website Redesign or Optimization
• Links from local and travel directories
• Search engine marketing SEM / PPC
• Search engine optimization / SEO
• Banner advertising
• Advertising on Meta-Search, Review Websites, and Travel Forums / Communities
• Interactive campaigns/promotions (contests, games, quizzes, sweepstakes)
• Email marketing
• Mobile Website
• Mobile Search Engine Marketing SEM / PPC
• Social media marketing / Travel 2.0
• Online reputation management
• Blog output and maintenance 
• Backlink building
• Analytics / ROI tracking
• Webmaster tasks
• External hotel marketing agency
• Have you identified new local or international sales channels your hotel needs to be on?
• What are your key segments, niche segments, and feeder markets?
• Are there any travel agency channels or forums out there that can help you attract these customer target markets?
• How will you manage to keep a healthy balance between direct and indirect (third-party) sales online?
• What is your approach to protecting your hotel from brand hijacking by OTA?
• Are your FIT and wholesalers respecting the contract?
• How will you prevent wholesalers from distributing and publishing package rates as room-only deals on online travel agency websites?
• How will you control your cost of distribution?
• Will we use rate parity as a strategy to drive business through more cost-effective distribution channels?
• Will we guard against cannibalization by costly distribution channels like Flash, Group, and Lastminute sales websites?
• Will we let ourselves be caught up in website trends and hypes which only lead to an erosion of the hotel’s net rate?

Rooms Division

Just to give a few examples, here are some expenses to include:

Rooms/Housekeeping

• Cost of guest amenities
• Staff cost to clean rooms
• Cleaning products
• Complimentary/turndown gifts
• Uniforms (cost per uniform, laundry, reparations, tailoring fees)
• Printing costs
• Software & hardware tools
• Complimentary services (welcome drink etc.)
• Guest Relocation

Public Areas

• Cleaning supplies (public areas & rooms)
• Decorations
• Maintenance

Miscellaneous Income

• Resort Fees
• Package Breakage
• Commissions
• Business Interruption Insurance
• Foreign Currency Exchange
• Unused or Forfeited Gift Certificates
• Interest Income

Budgeting Approach: Is there a Best Way to Budget for Expenses?

Mainly, there are three ways to approach budgeting for hotels, and we´ve dived deeper into which key metrics are involved in our article about USALI (Uniform System of Accounts for the Lodging Industry), which is the standard system that any hotelier should familiarise themselves with.

In this article, we´ll briefly take you through the common methods used in hotel asset management and the hotel finance world, namely:

Let’s start with the most simple approach. This way of creating budgets can be easily performed by taking this year´s figures and adding a fixed percentage to each category, for example, to account for inflation or required revenue growth, and is a method to use if your costs are more predictable and have the tendency to be similar year over year (YOY).

• Simple, easy, and no complex calculations are required which reduces the chances of errors
• Saves time for your hotel
• Consistency – it can help to increase consistency of the budget over the years
• Discourages management to proactively look into savings and expenses
• External factors and unforeseen changes aren’t taken into account
• This might lead to unnecessary spending – some departments might not need a budget increase, leading to managers having the perceived freedom to spend more towards their budget even though no changes were required.

As the name suggests, the Zero-Based Budgeting approach starts with a zero starting point, and is a great way to identify essential expenses and eliminate unnecessary expenses. 

Without referring to last year’s numbers, this method requires managers to create and justify each budget item and category, pushing the team to review what´s most vital to running your hotel business.

• Accountability of managers – making them accountable for costs and overinflated budgets
• Works well for getting rid of unnecessary expenses
• A budget approach that minimises negative impact on operations in the efforts to control cost
• Time and resource consuming
• Possibility of short-term thinking to be rewarded over long-term thinking – initiatives that require a longer time to develop, for example, a brand awareness marketing campaign, requiring funds to ramp up impact, might be left with lower budget allocations in the short run as it is considered a long-term investment even though they´re needed to achieve the short term goals.

3. Cost per room occupied ( CPOR )

This method is not recommended as it doesn’t show you what key necessities are needed across each category.

The calculation for this budget approach is based on dividing each expense category by the number of rooms sold. 

• Quick and simple calculations to get an overview of expenses
• Only generic conclusions can be drawn with this approach, as it lacks granular insight into each category

As we all know, there are a million things on a hotelier’s mind. For this reason, setting clear deadlines for when deliverables should be handed in from each department is crucial both for getting the final budget ready in time, but also helping to alleviate some of the workload from your team by giving them proper planning.

Furthermore, provide your team with guidance during the budgeting season. In case deliverables are not of expected quality when deadlines are reached, our hotel consultants always recommended to set team meetings to discuss earlier drafts of the budget per department to avoid any delays or inaccuracies of data when closing in on the final deadline.

Maximize Your Hotel Revenue

Uncover the hidden revenue potential of your hotel or resort.

As you can see many things have to be considered and included in your hotel budget plan. We need to look at these aspects of the business, and many more, as they influence your financial results.

Most importantly, the budget is not only about the numbers, it needs to be combined with an action plan. The steps and investments that need to be taken to achieve the budgeted financial result. Without such a strategic roadmap, the numbers are merely some numbers put on paper … It’s the plan behind it that will make it stick and turn it into an achievable budget.

Hopefully, these thoughts from our hotel management company have helped you to make a more complete hotel budget plan of attack for next year!

Patrick Landman

PS. Any doubts or uncertainties about running your hotel & marketing strategies? Contact us for hotel management or hotel consulting services to help build a solid plan to outperform your competition.

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Hotel Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business ideas » Hospitality, Travel & Tourism » Hotel

Are you about to start a hotel and hospitality business? If YES, here is a complete sample hotel business plan template & feasibility report you can use for FREE .

Okay, so we have considered all the requirements for starting a hotel business . We also took it further by analyzing and drafting a sample hotel marketing plan template backed up by actionable guerrilla marketing ideas for hotel businesses.

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So let’s proceed to the business planning section. All over the world, the hospitality business is being seen as a very serious trade and the reason for this cannot be farfetched.

The reason the hospitality business – especially the hotel business is being taken seriously is because of its relationship with the tourism industry. Starting a hotel business could eventually be one of the best things to attain for yourself. This is because of the lucrative nature and prosperity involved in this industry.

Every day foreigners, as well as local migrants and business people, travel from one point or the other and the option they are faced with is staying in hotels. It is pertinent to note that there are different categories of hotels, like 5-star, 4-star or even 3-star hotels.

One of the essential things that are unique to each category of the hotel is the facilities that make up each. Whatever type of hotel category you may have in view, there is always the most important step to take in making your business stand out, as well as succeed in the long run.

What can this be? Well, that is the hurdle of writing a business plan. You too have the wherewithal to do so, as a well put together business plan is available to you below.

A Sample Hotel Business Plan Template

1. industry overview.

The hospitality industry has been in existence from time immemorial and it is still waxing strong simply because people can’t do away with the services they offer. When you talk about a hotel, you are talking about an establishment that provides lodging for guests/travelers, tourists, visitors et al, on a short-term basis with a fee.

When people lodge in hotels, they have the option of subscribing to other services the hotel offers; services as feeding, drinks, laundry, fitness center, swimming pool, conference room, and business room, amongst others.

As a matter of fact, the facilities provided by some hotels may range from a basic bed and storage wardrobe to luxury features such as en-suite bathrooms, mini parlor et al. It is the norm for big hotels to provide additional guest facilities like a swimming pool, conference center, business center, childcare, self-service laundry, fitness center, and social function services.

In some countries, hotels are required by law to serve food and drinks to all their clients that are lodged in their facility while in some countries, you would have to choose the additional services you want from the hotel. The bottom line is the higher the amount you pay in hotels, the more the services you are entitled to.

Starting a hotel business is capital intensive and it is considered a long-term investment because it takes a while for the owners to break even and start making profits. No doubt 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 the hotel business is that the business can grow so big that it will not only have an active presence in key cities in the country where it started from but in major cities on 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 hotels, five-star hotels, seven-star hotels et al).

2. Executive Summary

Sean and Sharon Hotel will be located in the heart of Las Vegas less than 20-minute drive from McCarran International Airport in Las Vegas, and a few minutes drive from Mandalay Bay Event Center. We are conveniently located in the world’s headquarters for casinos and games; a commercial center.

Sean & Sharon 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 hospitality industry by establishing our own 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 hotel fully booked all through the year.

We are going to be a customer-centric 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 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. Sean & Sharon Hotel will provide a conducive spot for our customers to take a break from their various busy schedules, to a place where they can find comfort and luxury.

Sean and Sharon’s hotel will be equipped with a business center and a VIP lounge, as well as a Fitness room and self-service laundry which will be made available for resident guests at no extra cost.

We will also install free Wi-Fi that will enable our guests to surf the internet with their laptops in the 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 a loan to business travelers for their convenience so as to enable them to 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 experience, a 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.

Sean and Sharon Hotel is owned by Sean Glacier, Sharon Glacier, and other investors whose names can’t be mentioned in this business plan for obvious reasons. The owners and board members of Sean and Sharon hotel are big-time investors in the hospitality industry.

Sharon Glacier 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 Sean and Sharon Hotel the number one choice in Las Vegas.

Over and above we are building a hotel business that will be the cynosure of all eyes. One that competes favorably with other hotels that are in existence in Las Vegas. We plan to do this bearing in mind that it would take hard work, loads of financial commitment, as well as well-trained employees who can be indoctrinated in the quest for building a top-notch hotel in Las Vegas city.

3. Our Products and Services

Sean and Sharon Hotel is set to operate a standard hotel service in Las Vegas, Nevada. The point that we want to become a force to reckon with in the hospitality industry means that we will provide our guests with a 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 hotel to their friends, family members, and business partners. These are the services and amenities that will be made available to our guests;

• Meals (Local Delicacies, Chinese cuisines, and intercontinental cuisines et al)
• Drinks (wines, beers, distilled spirits, martinis, beverages, and non–alcoholic drinks)
• Swimming pool
• Self – service laundry room
• Business center
• Conference room
• Banquet venue
• Shuttle service

4. Our Mission and Vision Statement

• Our vision is to open a standard hotel that will become the number one choice in Las Vegas
• Our mission is to deliver reliable, genuine, caring, and excellent service superior to what our competition can offer in any location where our hotel will be situated and to ensure that our hotel enjoys over 90 percent occupancy in most parts of the calendar year.

Our Business Structure

The success of any business is to a larger extent dependent on the business structure of the organization and the people who occupy the available role. Sean and Sharon Hotel will work with a business structure that will give room to employees to explore their creativity, give a sense of belonging, as well as grow through the corporate ladder of the organization.

We will work hard to ensure that we only recruit the right set of people with the right mindset to help us achieve our business goals and objectives in record time. We intend to build Sean and Sharon Hotel on this structure;

• Chief Executive Officer (Owner)
• Hotel Manager

Human Resources and Administrative Manager

• Bartender/Baristas
• Accountants/Cashiers

Facility/Maintenance Manager

• Marketing Officer
• Front Desk Officer
• Cleaners/Washer men

Security Officers

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

• Responsible for providing direction for the business
• 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 recruitment
• Responsible for payment of salaries
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization

Hotel Manager:

• Responsible for managing the daily activities in the hotel
• Ensures that the facility is in tip-top shape and conducive enough to welcome customers
• Interfaces with vendors
• Reports to the Chief Executive Officer
• Attends to Customer complaints and inquiries
• Prepares budget and reports for the organization
• Responsible for Training and Development in the organization
• Handles procurement
• Handles any other duty as assigned by the CEO
• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• 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 daily office activities.

Marketing Officer (2)

• Develops, executes and evaluates new plans for expanding increase sales
• Documents all customer contact and information.
• Represents the company in strategic meetings
• Helps increase sales and growth for the company
• Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
• 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
• Advise on energy efficiency and cost-effectiveness
• Supervises multi-disciplinary teams of staff including maintenance, grounds, and custodial workers

Bartender / Baristas (4):

• Interacts with customers, takes orders for drinks, food, and snacks.
• Plans and presents bar menu.
• Checks identification of the guest to make sure they meet age requirements for purchase of alcohol and tobacco products.
• Mixes ingredients to prepare cocktails and other drinks.
• Mixes drinks, cocktails, and other bar beverages as ordered and in compliance with hotel standard drink recipes.
• Prepares alcohol or non-alcohol beverages.
• Services Wine and Beer to guests.
• Arranges bottles and glasses to make attractive displays.
• Assesses customer’s needs and preferences and makes recommendations
• Makes lists of supplies in conjunction with the bar manager/management
• Prepares inventory or purchase requisitions as needed to replenish supplies.
• Ensures that the assigned bar area is fully equipped with tools and products needed for Mixing beverages and serving guests.

Accountant/Cashier:

• Collect payment for drinks served and balance all receipts.
• Prepare a financial report at the end of every working week
• Handles all financial transactions on behalf of the company
• Interfaces with our bankers
• Responsible for payment of tax, levies, and utility bills
• Handle any other duty as assigned by the CEO/microbrewery manager

Front Desk Officer (2)

• Ensures that customers feel relaxed and at home
• Handles customers inquiries
• Ability to Sell or influence others for up selling and suggestive selling.
• Provides recommendations and suggestions to guest for choosing Drinks, food, and Snacks.
• Serve customers in a friendly and helpful manner.
• Provides guidance to guests on resort activities, dining options, and general resort and Regional information.
• Demonstrates a thorough knowledge of food and beverage products, menus, and Promotions
• Handles any other duty as assigned by the bar manager

  Cleaners/Washerman (6):

• Handles and moves objects, such as glasses, dish,es and bottles, using hands and arms.
• Cleans up after customers and cleans work area.
• Clears ashtrays as and when required.
• Washes glassware and utensils after each use.
• Maintains a clean working area by sweeping, vacuuming, dusting, cleaning of glass doors and windows, etc. if required.
• Ensures that toiletries and supplies don’t run out of stock
• Responsible for handling laundry
• Handles any other duty as assigned by the restaurant manager,
• Ensures that the facility is secured at all time
• Controls traffic and organizes parking
• Gives security tips to staff members from time to time
• Patrols around the building on a 24 hours basis
• Submits security reports weekly
• Any other duty as assigned by the restaurant manager

6. SWOT Analysis

Sean and Sharon Hotel is fully aware that they are coming into an industry that can be highly competitive which is why they have decided to pay attention to the SWOT analysis for the organization.

We know that once we are able to identify our strengths, our weaknesses, our threats, and the opportunities that are available to us, we will be able to come up with good business strategies that will help us achieve all our business goals and objectives.

We know too well that one of the ways to build a successful business in the long run is the ability to glean some lessons from the weak points we have found ourselves in and convert them into an area of strength. In a case where there is little or nothing that can be done, we may also work so hard so that our areas of strength blossoms more, so that are weak area is very less visible.

Here is a of the result we got from the SWOT analysis that was conducted on behalf of Sean and Sharon Hotel Las Vegas, Nevada;

Our area of strength cannot be farfetched; the location of our hotel is perfect for such business, our management team has robust experience in the industry, our customer services are second to none in the whole of Las Vegas and our facility is top notch

Our perceived weakness could be that we are a new business, and we may not have the financial muscle to sustain the kind of publicity we want to give our business.

• 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 headquarters as far as the 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 hotel facility is just about 20-minute drive from McCarran International Airport in Las Vegas, and a few minutes drive from Mandalay Bay Event Center.

One of the threats that are likely going to confront us is; unfavorable government policies, the downturn in the economy which is likely going to affect sales, and perhaps the emergence of new hotels (competitors) within the same location where our hotel is located.

7. MARKET ANALYSIS

• Market Trends

The trend in the hospitality industry is such that there are peak periods and off-peak periods. Thus, hoteliers know this and have been able to make provisions to properly handle the change in season.

For example; during summer or during any major sporting event or business summit, most hotels in Las Vegas are almost fully booked. As a matter of fact, that is the period that some hotels make the money that will sustain the business for the rest of the year.

Be that as it may, some hotels are well positioned and they enjoy rich 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 franchises if you know you don’t have the capacity to manage various branches of your hotel.

Over and above, hoteliers are quite aware that they are in the industry not for quick returns on their investments, but to steadily build a brand that can become a global brand while growing their profits year in and year out.

8. Our Target Market

Sean and Sharon conducted her feasibility studies and market survey and we were able to identify those who we expect will eventually become our loyal customers.

We do not intend to waste our time on activities that would yield us nothing, which is why we invested time to create a hotel marketing plan to help us do only the most needful things. These are the category of people that we intend to market our hotel to;

• Corporate Executives
• Business People
• Sports Men and Women
• Government Officials
• College Students
• Traveling Agencies
• Event Managers
• Religious Organizations

Our Competitive Advantage

The competitive edge of Sean and Sharon Hotel Las Vegas, Nevada is the excellent and customized service that we offer to all our guests irrespective of their status. We can boldly say that the location of our hotel is going to give us an edge over our competitors in Las Vegas.

We are in the middle of the happening city in Nevada. From the location of our hotel, you can connect to any part of the city with little or no stress.

Another significant competitive advantage that we are bringing to the industry is the robust experience of our management team. We have a team that has a combination of 40 years of experience in the hospitality industry in the united states and Canada. They are considered core professionals in their own right.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Sean and Sharon Hotel will generate income from the following service offerings;

• Laundry service

10. Sales Forecast

It is important to state that our sales forecast is based on the data gathered during our feasibility studies and also some of the assumptions readily available in the field. Below is the sales projection for Sean and Sharon Hotel, it is based on the location of our hotel and the services and products that we will be offering;

• First Year-:  $600,000
• Second Year-: $900,000
• Third Year-: $1, 500,000

N.B -: This projection is done based on what is obtainable in the industry and with the assumption that there wouldn’t be any unfavorable government policy.

• Marketing Strategy and Sales Strategy

We will adopt the following means to attract the kind of people that we want in our hotel per – the time: The model of the bar we intend to run is a neighborhood type of bar, hence, we are not going to rely only on the conventional ways of marketing.

We don’t have the plans to run paid adverts on Local TV stations, local radio stations, or even local newspapers but we will sure maximize every other available means to promote our business.

Our unique selling proposition is that we have a collection of almost all brands of beers produced in America in our bar, we have assorted drinks and tobaccos et al. In view of that, we are going to adopt the following strategies to ensure that we do not only attract customers but generate repeated sales from them; Parts of the marketing and sales strategies that we will adopt are;

• Open our hotel in a grand style with a party for all.
• Advertise our hotel brand in travel and tours magazines, national newspapers, Satellite TV stations, and Radio station
• Promote our business online via our official website and all available social media platform
• Continuously Improve the performance of our brands
• Hire the services of experts to make our brands the first choice for guests
• Deliver consistent customer experiences to all our guests; making our first impression count positively
• Continuously Improve the efficiency of our hotels and operating processes
• Ensure that we Put our market scale and knowledge to good use
• Using our worldwide scale and experience to convert more hotels to our brands
• Make the most of our global presence – guests choose brands they know when they travel
• Build strong partnerships within our own company and with our stakeholders across the world
• Make use of attractive handbills to create awareness and also to give direction to our bar
• Position our signage/Flexi banners at strategic places
• Position our greeters to welcome and direct potential customers
• Create a loyalty plan that will enable us to reward our regular customers
• Engage in road shows within our neighborhood to create awareness for our hotel.

11. Publicity and Advertising Strategy

Sean and Sharon Hotel is in the hospitality business to make a profit and we can only make a profit if we steadily increase our customer base. No doubt, in order to remain relevant in the hospitality industry as a hotelier in Las Vegas, you should be able to continue to create hype around your hotel brand and that is exactly the publicity and advertising strategy that we will adopt.

We will ensure that we leverage all conventional and non – conventional publicity and advertising techniques to promote our hotel brand.

Although our hotel is located in Las Vegas, the scope of our market is global which is why we choose to make use of best practices as far as publicity and advertisement are concerned in the hotel business. Here are the platforms we intend leveraging on to promote and advertise Sean and Sharon Hotel, Las Vegas;

• Encourage our loyal customers to help us use Word of Mouth (referrals)
• Advertise our hotel brand in travel and tours magazines, national dailies, Satellite TV stations, and Radio station
• Promote our business online via our official website
• Sponsor relevant community programs
• Leverage the internet and social media platforms like; Instagram, Facebook, Twitter, et al to promote our brand
• Install our Bill Boards on strategic locations
• Engage in road shows from time to time
• Distribute our fliers and handbills in target areas

12. Our Pricing Strategy

Our pricing system is going to be based on what is obtainable in the industry, we don’t intend to charge more (except for premium and customized services) and we don’t intend to charge less than our competitors are offering in Las Vegas.

Be that as it may, we have put plans in place to discount our products and services once in a while and also to reward our loyal customers.

• Payment Options

Our payment policy is all-inclusive because we are quite aware that different people prefer different payment options as it suits them. Here are the payment options that will be available in every of our pubs;

• Payment by cash
• Payment via Point of Sale (POS) Machine
• Payment via online bank transfer (online payment portal)
• Payment via Mobile money

In view of the above, we have chosen banking platforms that will help us achieve our payment plans without any difficulty.

13. Startup Expenditure (Budget)

These is the key areas where we will spend our start–up capital on;

• Legal expenses for obtaining licenses and permits: $1,500.
• The Total Fee for Registering the Business in Las Vegas, Nevada: $750.
• Marketing promotion expenses (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
• Cost for hiring Consultant – $5,000.
• Insurance (general liability, workers’ compensation, and property casualty) coverage at a total premium – $30,800.
• Cost of accounting software, CRM software, and Payroll Software – $15,000
• Cost for acquiring facility for the hotel: $500,000.
• Cost for facility remodeling – $100,000.
• Other start-up expenses including stationery – $1000)
• Phone and utility deposits ( $3,500 ).
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
• The cost for Start-up inventory – $35,000
• Storage hardware (bins, utensil rack, shelves, glasses case) – $3,720
• The cost for counter area equipment (counter top, sink, ice machine, etc.) – $9,500
• Cost for serving area equipment ( glasses, flatware) – $5,000
• Cost for store equipment (cash register, security, ventilation, signage) – $13,750
• Office equipment and furniture – $3,600
• The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound systems, tables and chairs et al): $4,000.
• The cost of Launching a Website: $600
• The cost for our grand opening party: $5,000
• Miscellaneous: $2,500

We would need an estimate of $3.5M to successfully launch Sean and Sharon Hotel in Las Vegas, Nevada.

Generating Funding/Startup Capital for Our Hotel

Sean and Sharon Hotel will be financed by Sean and Sharon Glaciers and their business partners. Part of the start–up capital will also be raised as a loan facility from the bank in the United States. These are the areas where we intend sourcing for funds for Sean and Sharon Hotel.

• Generate part of the start–up capital from personal savings and the sale of his stocks (Sean and Sharon Glaciers)
• Generate part of the start–up capital from our business partners
• Generate a larger chunk of the startup capital from the bank.

N.B: Please note that Sean and Sharon Glaciers want to retain the lion’s share of the business shares hence they both are investing a total of 1 million USD. They will also secure a mortgage to purchase the property for the hotel.

14. Sustainability and Expansion Strategy

Part of the grand plan of sustaining Sean and Sharon’s hotel is to ensure that we provide the best training for our employees, put a succession plan in place, and will not relent in marketing and promoting our hotel brand.

From our findings, another factor that kills new businesses is financial leakages. In order to plug financial leakages, the management of Sean and Sharon Hotel will adopt the use of payment machines and accounting software to run the business.

In the bid to build a successful business, we will ensure that all our employees are comfortable and we will provide them with the best facilities and welfare package that will help them achieve peak performance in all their duties and in turn help the organization achieve its goals and business objectives.

Check List / Milestone

• 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
• Acquiring facility and remodeling the facility: In Progress
• Conducting 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 furniture, electronic appliances, office appliances, and bar accessories: In progress
• Creating Official Website for the Company: Completed
• Creating Awareness for the business both online and in the neighborhood: In Progress
• Health and Safety and Fire Safety Arrangement (License): Secured
• Opening party / launching party planning: In Progress
• Establishing business relationship with vendors – suppliers of all our needed food ingredients, drinks, tobacco, and snacks: In Progress

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• Economic Environment – This is the factor affecting inflation, increasing salaries, and types of employment. Know how people will want to spend money and why will they want to get away sometimes.
• Geographical Environment – This factor will tell whether there can be many people that will visit your hotel. You must consider the geographical location because you have to ensure that your hotel can be a likable place for customers.
• Legal Environment – Does your hotel comply with all the state laws? You must follow all the rules like liquor licenses so that your guests will not have any problem with your hotel. They need a place where they can do all things legally.
• Technology Environment – Your hotel should be updated with the latest technology. This can make your hotel more elegant and many will want to visit your hotel. State-of-the-art technology can set your hotel apart from other hotels.

Competitive Analysis

Advertising and operational strategy, financial plan, step 1: start with a plan, step 2: make a proposition, step 3: make a marketing plan, step 4: get capital, step 5: build the small hotel, step 6: hire key workers, step 7: launch the hotel, share this post on your network, you may also like these articles.

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Hotel Business Plan Sample

Published Jul.04, 2013

Updated Apr.23, 2024

By: Noor Muhammad

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Table of Content

Hotel Business Plan for starting your own hotel

Hotels are among some of the best businesses that you can start if you have the investment for it. As a matter of fact, if you want to invest a large sum of money in a business that has virtually zero risk, rental real estate business plan might just be the safest option.

We will give you a business plan for hotel that you can use to start your own hotel and make a lot of money while you are at it. This sample business plan for a hotel will follow the example of Hotel Intergalactic, a venture by John Abruzzi. Let us now see what business consultants have to say about this business.

Hotel Business Plan Summary

2.1 the business.

Hotel Intergalactic will be a 3-star hotel situated in downtown Los Angeles. The hotel will be registered with the local government and will be insured. The details of this business will be described in this executive summary for hotel with focus being on the way you can make lucrative profits by owning a hotel.

2.2 Management of Hotel Business

The next thing this business plan template for hotel needs to address is the way this hotel will be managed. For this, we will hire a manager to look after the day-to-day matters of the hotel. Other than the manager, one accountant and three assistant managers will be hired.

As this is a business plan for small hotel, we will not be hiring a lot of managerial staff to run it. The assistant managers will be responsible for procurement, operations, and customer service. The assistant managers will report to the manager who will act as an agent of the owner, John Abruzzi and will make decisions on his behalf in his absence.

2.3 Customers of Hotel Business

The customers of this free sample hotel business plan will be the following:

• People coming to visit Los Angeles.
• People who are in Los Angeles for business meetings.
• Los Angeles-based companies that need accommodation for their employees coming from other cities.

2.4 Business Target

The targets of Hotel Intergalactic are:

• Becoming the best hotel in Los Angeles.
• Starting to make a profit of $29,800 a month by the end of year 3.
• Expanding its services to at least other cities by the end of year 5.

Company Summary

3.1 company owner.

Hotel Intergalactic will be owned by John Abruzzi. John has a master’s degree in hospitality management and has been working in the hoteling industry for more than half his life. He knows the business and is passionate about it. He also has enough money to start the business. Combined, all these factors make him the perfect owner in this hotel business plan pdf.

3.2 Why the Hotel is being started?

John Abruzzi is one of the most prominent hotel managers in the area and that means if he starts a hotel people will know he means business. In this example of a hotel business plan, the main reason for starting this business is that this is a profitable business opportunity.

3.3 How the Hotel will be started?

Step1: Making a Feasibility Report

The next thing this new hotel business plan needs to discuss is the feasibility report. At this stage, a survey will be conducted to chalk out the demand and availability of hotels in downtown Los Angeles area. Any good hotel business plan sample doc needs to make sure of the thing that a proper feasibility report is made and the hotel is designed according to the demand in the area.

Step2: Developing a Brand

This hotel business plan, just like a resort business plans needs to cover another important thing. This is developing a brand. As the hotel is going to be in the heart of Los Angeles, it is cardinally important to have a brand.

Step3: Establishing the Hotel

As the hotel is to be constructed from scratch, the best-case scenario would’ve been an empty plot but that is not the case as the downtown Los Angeles area is fully covered by a concrete jungle. For this purpose, an apartment building will be bought and will be modified into a hotel.

Step4: Promotion and Marketing

Last, but not the least, the hotel needs to be promoted on all media channels to make sure people are aware of its existence and it attracts business.

Services of Hotel Business

A hotel business plan, unlike a home inventory business plan has a limited number of services. While a home inventory service business can offer a lot of services, a hotel business can only offer a few. Here’s an overview of the services Hotel Intergalactic will be offering:

• Accommodation

It goes without saying that the most important service offered by the hotel will be accommodation. The hotel will have 20 single-bed, 20 double-bed, and 10 twin-bed rooms for accommodating the guests.

• Banquet Service

The second most important service provided by Hotel Intergalactic will be that of a banquet. Three large halls will be made a part of the hotel and will be provided for everything from business meetings to birthday parties.

The top floor of the hotel will have an open-air rotating restaurant which will be open for the guests in the hotel and any other person coming in just for a meal.

• Bar and Lounge

The hotel will also feature a bar and a coffee lounge. These services will also be available for both the guests of the hotel as well as other people.

Marketing Analysis of a Hotel Business

Marketing analysis is the study of the various variables of the market that can affect the successful operation of a business. Any business plan for a hotel operation needs to shed light on this in order for the hotel to be successful. Before we get into the details of this business plan sample hotel industry, we need to have a look at the industry as a whole. There are just above 90,000 hotels in the US and more than $194billion change hands in this industry annually.

5.1 Market Trends

If you want to learn how to write a business plan for a hotel, you will have to closely study the trends of the industry. Just like making “https://www.ogscapital.com/article/property-management-business-plans”sample property management business plans, it is important to have an insight into the market before establishing a hotel.

The US hoteling market might have its seasonal ups and downs, but it has been noted in the past decade that the industry has seen a steady growth. The worth of this industry has increased from $133billion in 2009 to just under $200billion in the last decade. Industry experts and analysts are of the view that this industry will show a minimum of 5% growth by 2025.

Let’s now see more details of this hotel business plan outline.

5.2 Marketing Segmentation

One of the most important things to consider when planning any business is the market segmentation. You need to have a clear idea of the market segments that you are going to target and only then you can properly plan everything.

Apparently, the hoteling business is only for one market segment, the people who need a place to spend the night. However, there is more to the story that just that. Even a house painting business plan has multiple market segments. Any hotel can have customers and clients divided into a number of market segments. We will focus on four segments of the market via Hotel Intergalactic.

5.2.1 Individual Customers

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Most of our customers will fall into this category. These will be the people who show up at the hotel and want a room. We will make every possible effort to make sure these customers go home happy and consider us the next time they need a hotel.

5.2.2 Companies

Companies need accommodation for their employees when they are on a meeting. This segment of the market will give us bulk business and we will offer them discounts to make them our loyal customers.

5.2.3 Bar and Restaurant Customers

As the hotel will have a bar and restaurant, the people coming to visit them will also be a segment of the market for us.

5.2.4 Banquet Customers

As the hotel is to have three banquet halls, this will also be an important market segment for us. We will rent out the halls for conferences, parties, weddings, birthdays and any other function people need them for.

5.3 Business Target

Our business targets are:

• To maintain the highest standards of client satisfaction.
• To become a well-known name in the industry.
• To expand the business to all the major cities of the US.

Business plan for investors

5.4 product pricing.

Hotel Intergalactic will offer the services at a price comparable to that of the competitors. We might keep the price a bit lower than that of the competition at the start to attract customers but once we earn name, we will increase the prices.

Marketing Strategy of Hotel Business

The next important thing for opening a hotel business plan is the marketing strategy of the hotel. No hotel management company business plan can be complete if it has no marketing strategy. To make a workable marketing strategy, we need to do the following.

6.1 Competitive Analysis

The competitive analysis for Hotel Intergalactic has revealed the following:

• The competition in this field is immense in the area we are working in. We need to provide something extra to get customers.
• We will provide complementary dinner to our customers. No hotel in the area does this and this will give us a competitive edge.
• We will subsidize the companies who want accommodation for their employees so that they choose us over the other options.

6.2 Sales Strategy

• We will advertise the hotel through all the media channels in the area.
• We will partner up with travel agents and tour planners to get customers.
• We will offer discounts to companies who want to get accommodation for a large number of their employees.

6.3 Sales Monthly

6.4 Sales Yearly

6.5 Sales Forecast

Personnel plan

Another thing that needs to be made clear in this hotel resort business plan sample is the staff that we will need to operate the hotel. Unlike an RV park start up business plan , we will need a larger workforce to smoothly run the operations of the hotel.

7.1 Company Staff

• John Abruzzi will be the owner and CEO of the hotel.
• 1 General Manager.
• 2 Assistant managers.
• 1 Accountant.
• 1 Receptionist.
• 3 Waitresses.
• 2 Bartenders.

7.2 Average Salary of Employees

Financial Plan

The last thing to be discussed in this business plan is the budget for hotel business plan. As the hotel is being started from scratch, the following expenses are to be arranged:

• The cost of establishing the hotel.
• The cost of hiring the staff.
• The salaries of the staff for the first 6 months.
• The cost of buying cars for guest pick and drop.
• The money needed to advertise the hotel.
• The money needed to establish a web presence of the hotel.

8.1 Important Assumptions

8.2 Break-even Analysis

8.3 Projected Profit and Loss

8.3.1 Profit Monthly

8.3.2 Profit Yearly

8.3.3 Gross Margin Monthly

8.3.4 Gross Margin Yearly

8.4 Projected Cash Flow

8.5 Projected Balance Sheet

8.6 Business Ratios

Download Hotel Business Plan Sample in pdf

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2 thoughts on “ Hotel Business Plan Sample ”

i found this very helpful. thank you for sharing

Thank you for your comment. If you need assistance in writing your business plan please contact us by email: [email protected] or call us at USA +1-619-727-5304, UK +44-203-318-1069, Canada +1-613-699-7822, Australia +61-385-956-735.

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Hotels are one of the most lucrative businesses one can get into. They are especially profitable if the hotel business plan in question is located in a busy city or near a popular tourist destination. Being part of the hospitality industry, you will never run out of customers as long as your hotel is managed properly. To run your hotel plan profitability, you must have a proper business plan that will help you dance your worries away. We have various hotel business plan templates applicable for various related businesses and accommodations such as a startup mini hotel, guest house motel, 5 star resort lodge, 3 star spa, and boutique, etc. Keep scrolling!

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1. what is a hotel business plan, 2. what is the purpose of using a hotel business plan, 3. what should a hotel business plan include.

• Executive summary
• A detailed sample analysis of your company and the work you do
• Industry and market analysis
• Client and customer evaluation
• Your competitors and other sources
• Marketing and operation plan, etc.

4. What Is a Successful Business Plan?

5. how do you write a hotel business plan.

• Operations : explain how your organization will operate daily
• Management : mention your management team
• Financial details : this is where you mention all key finances
• Project planning : define all the targets you want to hit
• Appendix and other details.

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How to successfully start a hotel business in 2024?

Eva Lacalle

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So, you’re looking to start a hotel business , but you’re not sure where to begin? The process can seem overwhelming at first, especially when you’re starting from scratch. But, just like how Instagram and TikTok have made content creation accessible to everyone, platforms like Airbnb and Booking.com have made it possible for hoteliers to reach diverse audiences with the help of the right tools.

With a strategic approach and the right resources, you can confidently launch your brand into the market . Of course, there are important factors to consider—like startup costs and revenue streams—along with some crucial steps to get your business off the ground. It may seem like a lot, but this guide will walk you through the 6 essential steps to successfully launch your hotel business. 

Table of contents

What is a hotel business?

A hotel is the broad term referring to an accommodation that includes a bed, bathroom, and various guest services, creating a comfortable, home-away-from-home experience for travelers. Typically, hotels are in buildings (though bed & breakfasts are often in large homes) and are primarily used for short-term stays. However, under certain circumstances, they can also cater to long-term guests.  What transforms a hotel into a hotel business is the ability to consistently fill rooms while providing these services at a price that ensures profitability and keeps guests coming back. Running a hotel business isn't easy, but with the right strategy and execution, it can be highly successful.

Startup costs for a hotel business?

Startup costs for a hotel business can be quite varied depending on where you want to open your hotel, the size of the property, the taxes for that particular area, price of supplies and materials in the particular country where your hotel is located, and the number of stars or the amount of luxury and amenities you want to provide. Here are some of the most common startup costs:

Initial investment costs

• Buying the land and the building (some may choose to rent instead)
• Design and furniture
• Technology (like your Hotel Management Software )
• License and permits
• Marketing and advertising

Fixed costs (may be monthly, quarterly or annually)

• Staff wages
• Marketing and promotion
• Maintenance

With all these factors combined, it’s estimated that you may need as much as $17 million on average to start a hotel. However, this figure can vary significantly based on the size of your property and other specific details.

Revenue streams: How hotels make money

Now that you understand the investment needed to start a hotel, you might be asking, "So how do I make money?" The largest revenue stream for hotels is, unsurprisingly, room bookings . This is followed by revenue from meetings and events, food and beverage services, and other ancillary offerings.  Rooms are the primary revenue source because nearly all hotel visitors are paying guests who book a room, whereas not every guest will attend meetings, dine on-site, or purchase additional services. Plus, rooms typically offer the highest return on investment (ROI) .

Key factors for a successful hotel

There are many factors to consider when it comes to creating a successful hotel business.

Targeted marketing campaigns and reputation management

First, it’s crucial to develop target marketing campaigns that highlight your hotel’s differentiation . Conducting a SWOT analysis—examining your Strengths, Weaknesses, Opportunities, and Threats—both internally and externally, will give you a solid foundation to craft your messaging.  Next, you’ll need a strategy for gathering reviews and staying on top of your online reputation. For example, you might offer a complimentary drink or coffee to guests who leave a review during their stay. Additionally, implementing a robust social media strategy is essential. Consider collaborating with influencers who resonate with your target audience to promote your hotel effectively.

Choose wisely your distribution strategy

Distribution is a significant part of your investment, with some channels taking up to 20% in fees. That’s why it’s essential to have a balanced mix of reliable OTAs (Online Travel Agencies) while also focusing on building your direct channels to attract as much direct business as possible. Initially, it might be challenging since people won’t know your hotel yet, but leveraging the marketing power of large OTAs can help you gain visibility and success.

Consider having a soft opening

A soft opening is a great way to introduce your hotel to the market while giving yourself time to iron out any issues. As the property owner, it’s a smart move to spend a night in each room category. This firsthand experience is invaluable for identifying any missing elements or issues that need fixing.

Getting business

While OTAs, a solid marketing strategy, social media investment, Google ads, and reputation management are crucial, getting your pricing strategy right is equally important . Ensure your hotel’s pricing aligns with your target audience. The stronger your online presence, particularly your own website (which can be boosted with SEO efforts), the easier it will be to attract guests.

Segmentation is key

Your strategic plan should include a marketing approach that clearly defines your target market. This allows you to craft unique experiences tailored to your audience and develop pricing strategies that meet their needs. Understanding your audience’s preferences and challenges will help you make more strategic decisions. From there, you can also create a distinct value proposition that differentiates you from the competition.

6 essential steps to launch your hotel business

Starting a hotel business might feel overwhelming, but breaking it down into manageable steps can make the process more approachable. Follow these essential steps to get started:

Create a strategic business and financial plan

First things first, create a business plan that outlines your goals for the first year, three years, five years, and even ten years . This plan will keep you focused and help you prioritize what matters most. Alongside this, put together a financial plan to manage your budget and investments wisely, ensuring you’re spending where it counts.

Study the market and competitors

Understanding your competition is key to positioning your hotel effectively. Define your competitive set and analyze their strategies, pricing, and market presence. This knowledge will help you differentiate your hotel and identify opportunities to stand out. This research is a vital part of your SWOT analysis.

Create a unique brand identity

Once you’ve pinpointed your unique selling proposition (USP), develop a brand identity that reflects it. Your brand should clearly communicate what sets you apart and resonate with your target audience.

Take care of bureaucracy

It’s important to have all your ducks in a row when it comes time to open, because it won’t take long for a neighbor to report you if they find out you don’t have the right licenses and permits. Hire a professional who is very up to date with the local bureaucracy so they can help you get all your paperwork in order.

Start by hiring key management positions, as these roles are critical to your hotel’s success and may require more time to fill. Your first and foremost hire should be a General Manager, who will then assist in building out the rest of your team.

Leverage the right technology

No hotel is complete without the right Hotel PMS , which will serve as the backbone of your operations. The right technology will help streamline processes, make data-informed decisions, and enhance overall efficiency.

A hotel business is complex with many moving parts, but with strategic planning, thorough business analysis, and accurate forecasting, you can find a great deal of satisfaction in running a hotel while also achieving a solid return on investment.  The time it takes to fully recover your initial investment will depend on whether you bought, rented, or built your property from scratch. Generally, you can expect to start generating profit after several years. Success also hinges on having a strong initial business plan and the ability to adapt to changing circumstances as they arise.

Download our guide "How to diversify hotel revenue"

Eva has over a decade of international experience in marketing, communication, events and digital marketing. When she's not at work, she's probably surfing, dancing, or exploring the world.

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Effective Hotel Budgeting: How to Make a Hotel Budget Plan That Works

As a hotel industry professional, you want your staff members happy , your guests satisfied , and your business profitable. But in the hotel business, things aren’t always that easy.

If your hotel budget isn’t properly managed, you run the risk of overspending and not making any money. Deloitte Consulting research suggests that overspending on a simple labor cost can consume up to 60% of your hotel budget . The same goes for every other expense category: food, marketing, and other operational costs.

Effective budget planning is essential for any business. A plan helps hotel managers make informed decisions, allocate resources effectively, and improve profitability. The hotel industry is highly competitive, and hotels must maximize revenue while minimizing costs to stay profitable.

In this article, we will discuss how to create an effective hotel budget plan.

Table of Contents

Why is Hotel Budget Important?

Creating budgets is critical for hotels because it provides a clear roadmap for financial planning and decision-making. It helps managers:

• Allocate Resources Effectively: In a good hotel budgeting plan, the manager can allocate the annual funding to the areas that will bring the highest return on investment.
• Make Informed Decisions: How much money should you spend on hotel operations ? What to prioritize? A carefully planned annual budget will allow you to answer these questions.
• Improve Profitability: Proper planning and hotel budgeting can help take care of marketing expenses, variable expenses, and other expenses. A good hotel budget will help maximize profits.

What’s a Hotel Budget Season?

A hotel budget season is a period when hotels plan and prepare for the upcoming year. During budgeting season, a manager will review past financial performance, set goals for the coming year, and create a plan for the hotel budget. The budget season typically starts a few months before the end of the current fiscal year and ends before the start of the new year.

The budget season is crucial for hotels because it helps them plan for expected expenses and revenue. A plan created during the budget season helps hotels stay on track financially, avoid overspending, and maximize revenue.

What is Hotel Revenue Management?

Revenue management is an essential practice for hotels to optimize income and profitability. Most hotels implement revenue management to maximize occupancy rates without sacrificing room rates and other revenue sources.

Here are the four pillars of hotel revenue management:

• Dynamic Pricing

The practice of adjusting the hotel budget based on seasonality, demand, and competition is called dynamic pricing. It allows you to adjust your rates to match market conditions and optimize your hotel budget in real time. For instance, during peak season, you can increase the price of hotel rooms to reflect the high demand.

• Forecasting

Using historical data and major events to predict future demand and set the next year’s budget is called forecasting. Many hotels use forecasting to make informed decisions in inventory, staffing levels, and of course, pricing. Let’s say you notice a big event coming up and expect an influx of demand. You can use forecasting to ensure you are adequately prepared with the right resources to meet the demand.

• Channel Management

The optimization of distribution channels like travel agencies and direct bookings to maximize your hotel budget is called channel management. Managing the channels through which you are selling your hotel room inventory can help keep a balanced budget and maintain the correct price. For example, if you notice that direct bookings are making up more of your sales than expected, you could adjust prices on channels like third-party travel sites to increase demand.

• Inventory Management

Inventory management is the practice of managing inventory to ensure optimal pricing and availability. This includes monitoring room types, rates, and restrictions to maximize revenue. By implementing inventory management techniques, hotels can ensure that they are offering the right room types at the right rates to make additional revenue.

What Are Hotel Operating Expenses?

Hotel operating expenses are the costs associated with running a hotel, such as salaries, utilities, maintenance, and marketing. Operating expenses can be divided into two categories: fixed and variable costs.

• Fixed Costs: Fixed costs are expenses that remain the same regardless of occupancy or revenue, such as rent or property taxes.
• Variable Costs: Variable costs are expenses affected by occupancy or revenue, such as labor costs, utilities, or guest amenities.

To manage operating expenses effectively, hotels need to identify and categorize expenses correctly. The number of rooms sold, for instance, can be used to calculate the cost of energy and housekeeping. Hotels can also their expenses regularly to identify areas for improvement.

What’s the Average Revenue in the Hospitality Industry?

The average revenue in the hotel industry varies depending on the location, hotel type, and season. According to STR , the average daily rate (ADR) for US hotels in 2021 was $110.95, and the occupancy rate was 50.2%. The revenue per available room (RevPAR) was $55.72.

However, these numbers vary widely depending on factors such as location, hotel type, and season. For example, luxury hotels may have higher ADRs and RevPARs, while budget hotels may have lower rates but higher occupancy.

Internal and External Factors That Affect Hotel Budget

Several internal and external factors can affect a hotel’s budget plan, such as occupancy rates, competition, and economic conditions.

Occupancy Rates

Occupancy rates are a crucial factor in budget planning because they impact revenue, staffing, and inventory management. Hotels need to track occupancy rates to predict demand and adjust pricing and staffing levels accordingly.

Competition

Competition is another factor that can affect a hotel’s budget plan. Hotels need to stay competitive by offering attractive rates, amenities, and services. They also need to monitor competitors’ pricing and promotions to stay ahead of the competition.

Economic Conditions

Inflation, recession, and other conditions can also impact the hotel budgeting plan. Hotels need to adjust their pricing and expenses to stay profitable during challenging economic times.

Types of Budgets in the Hospitality Industry

Hotels use different types of budgets to manage their finances effectively. The most common types of budgets in the lodging industry include:

• Zero-Based Budgeting: Zero-based budgeting determines a hotel budget where managers start with a zero base and justify every expense for the upcoming year. This approach forces managers to evaluate each expense and prioritize spending based on its impact on the hotel’s bottom line.
• Incremental Budgeting: On the other hand, you have incremental budgeting. It’s a budgeting method where managers use the current hotel budget as a starting point and adjust it based on anticipated changes for the upcoming year. The approach assumes that past spending patterns will continue in the future.

Each budgeting method has its advantages and disadvantages. Zero-based budgeting can help hotels eliminate unnecessary expenses, while incremental budgeting can save time and resources by building on the previous year’s hotel budget.

Who Should Be Involved in the Budgeting Process?

Creating an effective hotel budget plan requires input from various stakeholders, including department heads, finance teams, and executive leadership. Each stakeholder brings a unique perspective and expertise to the budgeting process.

• Department Heads: People like the director of sales or the director of operations can provide insight into their department’s spending needs and revenue projections.
• Finance Teams: Finance teams can help create a realistic budget plan by analyzing financial data and identifying trends.
• Executive Leadership: Executive leadership, such as the general manager or the owner, can provide strategic direction and approve the final budget plan.

To involve stakeholders effectively, hotels should schedule regular meetings and communicate clearly about the budgeting process and goals.

How to Create a Demand Calendar

A demand calendar is a tool that helps hoteliers predict demand for their hotel rooms and services. A demand calendar takes into account historical data, events, and seasonality to forecast future demand accurately.

To create a demand calendar, hotels should:

• Gather Historical Data: Hotels should gather data on past occupancy rates, ADRs, and RevPARs to identify trends and patterns.
• Consider Events and Seasonality: Hotels should consider upcoming events and seasonality, such as holidays or peak travel seasons when forecasting demand.
• Use Forecasting Tools: Hotels can use forecasting tools, such as revenue management software, to predict demand accurately.

Creating a demand calendar helps hotels adjust their pricing and staffing levels based on expected demand, which can increase revenue and reduce expenses.

How to Track Staff Productivity and Performance

Managing labor costs is critical for hotels because labor costs are typically the largest operating expense. Tracking hotel team productivity and performance can help hotels optimize staffing levels and reduce labor costs.

To track staff productivity and performance, hotels should:

• Set Performance Metrics: Hotels should set performance metrics, such as average occupancy per staff member or revenue per available room (RevPAR) per staff member, to measure staff productivity.
• Use Time-Tracking Tools: To stay on budget, a hotel should track staff hours accurately. Tools like Quickbooks Time and Kronos Time will help you do this without draining your budget.
• Analyze Staffing Levels: Hotels should analyze staffing levels regularly to ensure that they are optimizing staffing levels based on demand.

By tracking staff productivity and performance, hotels can reduce labor costs, improve efficiency, and increase profitability.

Create a Hospitality Budget Plan (In 7 Steps)

Creating a hospitality budget plan requires careful planning and analysis. Here are the steps to create an effective hospitality budget plan:

Step 1: Gather Data

Gathering hotel data is possibly the most important step in preparation efforts. Hotel operations data should be collected and segmented by different criteria. Guest profile, room type, and rate plan are just a few examples of data segments. Use the data to inform your budgeting decisions.

Step 2: Identify Revenue Streams

To analyze your current performance, talk to sales, marketing, and rooms department. Analyze how much revenue comes from food, beverage, and room sales. That will help you gather more insights, pull data, and identify your primary revenue streams. If you have a revenue manager, talk to them about the estimated revenue projections for each stream.

Step 3: Analyze Expenses

Many hotels take an expense budgeting approach to their financial budget. Analyze your expenses and compare them to the revenue streams and guest profile data you gathered earlier. See if any areas can be trimmed down to reduce costs. Also, look for ways to increase efficiency with labor costs by using, you need to analyze your fixed and variable costs.

Step 4: Determine Capital Expenditures

Next, you need to plan for capital expenditures. Renovations, equipment purchases, and other expenditures can heavily impact your budget, so you need to plan for them. A hotel should estimate these costs and prioritize them based on their impact on total revenue or guest satisfaction.

Step 5: Set Goals and Objectives

Do you want more customers? Better financial results? An increase in sales of food and beverage? Whatever your goal is, you need to put it in writing. Hotels should set goals and objectives for the forthcoming year based on their financial data, revenue streams, and expenses. Goals and objectives should be specific, measurable, and achievable.

Step 6: Allocate Resources

If you want to prepare your budget for the year ahead, you should start collecting data in early September. With goals in place, you can start allocating your budget. Prioritize spending on areas that will have the biggest impact on guest satisfaction and revenue.

Step 7: Review and Adjust

Ideally, your carefully planned budget will create more demand, decrease unsold rooms, and increase total revenue throughout the year. But your job isn’t done. If you want your hotel operations to remain at a high level, you need to review your budget plan regularly. More or less, revenue planning should be revisited and tweaked every 6 months or so.

Real-World Examples

Here are some real-world examples of effective hotel budget plans:

• Marriott International: Marriott uses a zero-based budgeting approach, That means that Marriot managers start with a zero base and justify every expense. The approach helped Marriott reduce costs by millions of dollars in the last decade.
• Hilton Worldwide: Hilton uses a data-driven approach to budget planning. Hilton uses revenue management tools and financial forecasting models to create a budget plan that is based on accurate data and analysis.
• InterContinental Hotels Group (IHG): IHG uses a hybrid budgeting approach that combines elements of zero-based and incremental budgeting. This approach helps IHG prioritize spending based on the expected return on investment.

Stay on Top of Hotel Budgeting With an Operations Platform

As you know and can see from everything we covered, managing a hotel business can be a real headache. Tracking capital expenses. Making sure guests are taken care of. Taking care of staff. All things that require the owner and/or hotel manager to be constantly on top of budgeting.

It’s enough to make even the most organized hotelier feel like they’re juggling a million plates at once. That’s where HelloShift comes in. Our tool works as a property management system and will completely change the way you do business and take your hotel to the next level.

We believe that digital hotels are the future – and that innovative technology can save you time, money, and a whole lot of stress. HelloShift integrates three main pillars to streamline your operations:

• Guest messaging for speedy and contactless communication with your guests
• Staff collaboration to make internal messaging a breeze and ensure prompt delivery of guest requests
• Housekeeping management to simplify the most laborious part of hotel management

And that’s not all – a cloud-based app, HelloShift allows guests to do everything from checking in on their mobile device to digitally signing hotel registration cards. So if you’re ready to take your hotel business to the next level, say hello to HelloShift.

HelloShift is a cloud-based digital hotel app —- guests can text hotel , checkin on their mobile device, scan and upload documents, digitally sign hotel registration cards , receive mobile keys, and have access to all hotel amenities through a guidebook that is customized with the hotel brand.

Go digital with Guest Messaging, Contactless Checkin, Website Chat, Staff Collaboration, Housekeeping Management and more.

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Columbia Hospitality improved operations and guest engagement by adopting HelloShift. Integrating with Oracle OPERA Cloud, HelloShift’s tools enhanced communication and efficiency across properties. This digital transformation resulted in better guest interactions and streamlined staff collaboration. “The impact was enormous,” said David Gavaldon.

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Hotel Budgeting: 15 Tips for Hospitality Professionals

A hotel’s budget is about much more than what a hotel spends. In addition to analyzing a hotel’s expenses, building a successful hotel budget involves cutting costs, optimizing demand forecasting, implementing new digital hotel technology, and other hotel budgeting strategies that we explore below. 

In this post, we cover some not-so-obvious ways that hotels can better prepare for their financial future. We have prepared a list of hotel budgeting tips to help hoteliers, revenue managers , and marketing directors improve their property’s financial picture and performance.

Discover hotel budgeting tips that help cut costs, save on labor expenses, and more

Identify and incorporate trends.

In addition to occupancy, RevPAR, and ADR, hotel revenue managers should regularly review comprehensive reporting to identify and analyze all trends that affect budget performance. Once hoteliers have identified trends in certain areas of the hotel budget, they can incorporate historical trends into future budgets.

1. Track demand trends and seasonal fluctuations.

Do you know what caused year-over-year changes in local demand? Did annual events start or stop coming to the area? Did you lose corporate accounts to the competition or gain a new large account? Did your hotel’s peak-season, off-season, or shoulder season travel shift?

Determine the root cause of demand trends. Include continuing trends in your next budget.

Hotel budgeting made simple: Here's how we can help

2. Compare year-to-date hotel revenue.

Identify how much revenue your hotel has brought in year-to-date. How does that number compare to how much revenue your hotel had brought in at the same time last year? Look for trends in market segment performance, negotiated account pickup, dramatic ADR or RevPAR fluctuations, or other unusual trends.

3. Review YOY profit and loss variance.

Review your hotel ’s P&L statement to determine how the property is performing year-over-year based on average revenue gains and losses. Is your hotel experiencing growth, has business plateaued, or are you experiencing losses annually?

Keeping a close eye on your YOY profit and loss variance can help you see a clearer picture of the hotel’s financial success. In addition, monitoring the variance will show what you can expect the hotel’s financial performance to look like in coming year.

Hotel budgeting tips for labor expenses

Prior to the pandemic, hotels were spending approximately 50% of their annual budget on labor and staffing, according to Hotel Management.  As a result of the pandemic, many hoteliers are facing the highest labor and staffing costs they have ever experienced, prompting the need for close analysis of hotel labor costs, strategic budget allocation, and a bit of creativity.

4. Track staff labor productivity and performance.

Track the productivity of your labor force in relation to distinct positions, corresponding hours worked, salary, and employee satisfaction. How productive are your employees? How satisfied are your employees with their position?

Track changes in labor productivity and performance. Identify how trends correlate to changes in the hotel’s expenses or budget requirements. Incorporate productivity trends into your future hotel budgeting efforts to account for additional staffing needs during high-demand periods or other identified periods.

5. Prepare an annual staffing guide.

An annual staffing guide is a guide to company positions and salaries. It includes a list of fixed positions in the hotel and their corresponding salaries (fixed costs), as well as a formula that calculates the hotel’s variable positions, or wages for hourly/scheduled employees (variable costs).

Each year, update your staffing guide to include new positions and track salary changes. Adjust the variable staffing formula as necessary to improve productivity while accounting for optimal staffing needs.

6. Use hotel digital technology to cut labor expenses.

While technology can't replace what hospitality professionals are able to achieve working with guests one-on-one, undergoing a hotel digital transformation can reduce costs and supply additional help to hotels struggling with a labor shortage. Digital hotel kiosks, hotel mobile check-in apps, in-room menus, and digital room keys are just a few of the digital tech tools hotels can utilize to optimize hotel operations, aiding short-staffed hotels and working behind the scenes on your behalf.

Technology to help with your hotel budgeting needs

Tips for minimizing costs and expenses

There are various software and accounting systems available to help hoteliers ensure that they are sticking to their annual budget and keeping expenses in line. Here are some additional hotel budgeting tips you may not have considered trying that can help minimize hotel costs and expenses.

7. Budget for incentives.

Some hoteliers forget to include this line item in their budget and find themselves struggling to fill a hole of missing revenue needed to honor team member incentives. Ensure that expenses related to incentives for all departments are accounted for in your upcoming budget, especially if you promote incentive programs when hiring hotel staff . Treat any leftover revenue from unmet incentives as a surplus that can be reinvested in other areas of the budget, such as hotel staff training .

8. I nclude potential repairs, renovations, or other maintenance projects.

If your hotel has been patching a problem for years, it will need to be corrected eventually. Allocate budgeting expenses for unexpected hotel repairs, especially if weather patterns or other factors have a considerable influence in your area.

9. Carefully wash group room blocks.

If you have a swim group that books every year for a local tournament, you may notice that they consistently block 20 rooms each year, but only reserve fifteen or sixteen of those rooms. Sales directors who encounter this group business pattern may choose to contract a 20-room block for the swim group but only actually hold eighteen rooms in the block’s inventory. This process is known as “washing rooms.”

When hotels wash group rooms , they are anticipating cancellations, early departures, no-shows, and other factors that could influence hotel occupancy . Washing rooms is always a bit of a gamble, but sales directors and revenue managers use this strategy to maximize hotel revenue potential during high-demand periods and minimize the risk of eating the cost of unsold rooms.

Review group business

A hotel’s group business segment can have a significant impact on its annual budget. By holding unused rooms for too long, offering too-low group rates that inhibit reaching hotel ADR goals , or even anticipating group business that is not returning, hotel managers can easily make group-related mistakes that harm the bottom line.

Try these group-based hotel budgeting tactics to keep your hotel’s blocked business in line with budgeting needs.

10. Analyze group backlog.

Do you have a backlog of group rooms? How many tentative groups do you currently have, and how long have they been tentative? How many prospect groups are currently in the system? Does it look like there is real opportunity in the near future, or should your prospecting efforts be targeted elsewhere?

Carefully monitor and manage group room blocks throughout the year for accurate budgeting and reporting.

11. Compare YTD group performance.

Determine your group pickup, attrition rates, ADR, and revenue totals so far this year. Once you have a clear picture of where your group business stands year-to-date, compare your group business insights to the last three years of group business. Are you on track to meet, exceed, or fall behind previous totals?

Identifying annual trends in group business can help hotels budget better for future group business by adjusting group rates, identifying high-demand group periods where staffing expenses increased, and other details that will affect next season’s budget.

12. Review future group blocks.

How many group rooms are on the books for the rest of the year? What does your future group pickup pace look like? How many future groups are repeat groups? Did repeat groups reserve all of their blocked rooms last year?

Regularly review future group data to identify trends early, optimize rack rates , or make budget adjustments that maximize revenue and minimize potential hotel expenses related to group business.

Budget forecasting tips

Seasoned hotel revenue managers know that expenses are really only a small portion of a hotel’s budget work. Instead, they place a large amount of their focus on the future: Demand, market mix, occupancy percentages, and rate changes in the area. They look for changes in business trends, what competing hotels in the market are doing, and then create a budget informed by a variety of forecasting reports.

13. Review projected operating cash flow.

Confirm that your projected operating cash flow , the amount of revenue generated by standard hotel operations, is going to generate enough profit to keep the hotel operating until next season. If your operating cash flow projection is not high enough to sustain, the hotel will likely need an influx of investment or financing cash.

14. Subscribe to the STR report.

Hotels can choose to subscribe to STR on a weekly, monthly, or annual basis. Developed by Smith Travel Research, the STR report is one of the most useful tools in a hotel professional’s toolbox. A powerful benchmarking tool, STR compares your hotel’s performance against similar competing hotels in the area measuring occupancy, ADR, and RevPAR.

Ensure that your hotel is positioned properly to continue to gain share and not displace business. In addition, subscribing to the STR report allows hotels to look beyond the comp set and analyze the larger surrounding market.

15. Review historical data for future expense forecasting.

Look for expense trends in each department and for each line item on the budget. Pay attention to housekeeping costs, food and beverage expenses, front-desk staffing needs, fluctuations in electric bills, water usage, and other areas. Allow historical expense trends to influence your budget.

If housekeeping expenses have been higher in the first and third quarter the past three years, for example, anticipate the same trend next year. Allocate for more expenses in the first of third quarters and look for opportunities to cut costs.

Closely monitor your hotel’s performance throughout the year. Make adjustments as necessary to achieve your goals, and work with other hotel managers to achieve annual budget objectives for each department. At the end of the fiscal year, celebrate your hotel budgeting successes.

Bookmark this list of hotel budgeting tips for quick reference!

Strong hotel revenue management skills are vital for hotel professionals in charge of budgeting and financial monitoring. Brush up on hotel revenue management tips before digging into next season’s budget.

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Kim Campbell

Kim is a full-time copy and content writer with many years of experience in the hospitality industry. She entered the hotel world in 2013 as a housekeeping team member and worked her way through various departments before being appointed to Director of Sales. Kim has championed numerous successful sales efforts, revenue strategies, and marketing campaigns — all of which landed her a spot on Hotel Management Magazine’s “Thirty Under 30” list.

Don’t be fooled though; she’s not all business! An avid forest forager, post-apocalyptic fiction fan, and free-sample-fiend, Kim prides herself on being well-rounded.

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I've been to Las Vegas over 50 times. Here are the 9 big mistakes I see most first-time visitors make.

• My husband and I have visited Las Vegas more than 50 times in the past two decades.
• I've seen first-timers repeat mistakes, from missing hotel deals to refusing to leave the Strip.
• With some planning, travelers can stay within their budget and have a great time in Sin City.

I've been to Las Vegas over 50 times and want others to enjoy Sin City as much as I do.

With over 50 visits to Las Vegas under my belt, I consider myself an expert in all things Sin City .

Early in our marriage, my husband and I started traveling to Las Vegas every June to celebrate our anniversary. The summertime trips were so fun that we added an annual Christmastime visit to our calendars too.

We still couldn't get enough, so we returned to the city more and more frequently over the past two decades.

I love Las Vegas, so I'm always disappointed when I hear people complain about it, especially when many of their negative experiences could've been avoided.

Here are the common mistakes I watch many first-time visitors make, along with tips on how to avoid making them yourself.

If your schedule is flexible, check hotel rates for a variety of dates to find the best deal.

Hotel prices in Las Vegas rise and fall throughout the year. Sometimes they soar due to massive conventions happening around town. Other times, they drop because of scorching temperatures and post-holiday lulls. 

Before booking, I recommend checking room prices for a wide range of dates to find the most cost-effective option . Rates are usually less expensive on weekdays than weekends, so take advantage of any flexibility in your schedule. Plus, lower prices often mean the hotel will be less crowded.

There are so many resorts to choose from on the Strip. Some of our favorites are Aria Resort & Casino, the Bellagio Hotel & Casino, NoMad Las Vegas, and Resorts World Las Vegas.

Vacationing in Las Vegas can be expensive, so decide what's worth splurging on ahead of time.

Between the casinos, shows, and restaurants, a vacation in Las Vegas can add up. With a little planning and prioritization, you can enjoy your trip to the fullest without blowing through your budget.

When we craft our trip itinerary, my husband and I always decide where to splurge and where to save. Because we love delicious food and special dining experiences, we make sure to account for the costs associated with meals at restaurants like Michael Mina, Toscana, and Brezza. 

If you don't want to dish out money on high-end dining, you can still get great food at more casual joints — such as Eataly, EggSlut, Evel Pie, or Famous Foods Street Eats. 

The Strip can get pricey, so you can also save a bit of money by heading downtown. There, you'll find the Fremont Street Experience, nostalgia-filled hotels, The Mob Museum, and an array of more affordable bars and restaurants . 

Reservations are always a good idea when it comes to dining at popular Las Vegas restaurants.

If you're hoping to try some of Las Vegas' most popular restaurants , make reservations in advance. On our recent trips, I've been surprised by how many restaurants were fully booked when I called to make dinner reservations.

Spago, Wolfgang Puck's flagship restaurant in the Bellagio, serves a brunch that's all the rage. Plan to make reservations a couple of weeks beforehand if you want to try it.

And a table at The Mayfair Supper Club, also located in the Bellagio, has become one of the hottest tickets in town. Make a reservation at least a week in advance, especially if you want to go on a Saturday or Sunday.

You can probably get discounted tickets to shows and activities, but you have to be resourceful.

Las Vegas used to be all about gambling, but it's evolved into a multifaceted entertainment hub.

There are shows and concerts every night of the week, and visitors can choose from a  variety of activities , from touring museums to riding roller coasters. 

The ticket prices for these attractions can be pricey, but you can often find deals on discount sites, like Groupon and Travelzoo. Tix4Tonight also sells discounted tickets for same-night shows at booths on the Strip and downtown.

Shop for basic items at local drugstores and convenience stores to save a few dollars.

We forgot sunscreen the last time we traveled to Las Vegas. Though we could've replenished our supply in the hotel gift shop, I've found that the basic goods sold in the resorts can get expensive.

So, we walked to one of the many nearby drugstores, which sold the bottles at prices comparable to those at our convenience stores at home. 

If you're looking to purchase snacks or beverages, I recommend stopping at ABC Stores on the Strip or downtown. The convenience store's prices are usually more affordable than ones at resort shops.

Be ready to walk a lot — and then some more.

Many people underestimate the amount of walking they're about to do when they arrive in Las Vegas.  

We needed at least 10 minutes to walk from one end of the Bellagio to the other. Walking the entire length of the Strip along Las Vegas Boulevard takes approximately 90 minutes.

There are almost no pedestrian crosswalks on the busy street. Instead, people travel up and down the Strip using stairs, escalators, and pedestrian bridges. The setup creates a safe route for pedestrians, but it does require more roundabout traveling.

I recommend packing comfortable shoes and allowing yourself plenty of time to reach your destination.

If you're unable to walk (or you just don't want to), you can still get around the Strip, which is wheelchair accessible. The monorail, buses, and trams run frequently, with stops at the major resorts and attractions. 

Unless you have a reason to use your car, I don't recommend moving it after you've parked at your hotel.

After we park our car at the hotel, we almost never move it until we check out. We prefer to pay for parking only once and don't want to worry about car logistics if we're out on the town.

We get around mostly by walking. We also use rideshare apps. Most hotels have signage directing guests to designated Uber and Lyft pick-up spots, which are often separate from the hectic main entrances.

We also take the free trams, which stop at many of the resorts on the Strip. In my experience, they're a safe and efficient mode of transportation. Since hotel signage makes the departure point clear, they're also easy to navigate.

The local museums don't make it onto every traveler's itinerary, but they show a different side of Las Vegas.

For years, I laughed at the idea of visiting a museum in Las Vegas, but I've since changed my tune. Now, it's one of my favorite things to do there.

The Neon Museum features vintage signs from famous hotels, restaurants, and bars. The Bellagio Gallery of Fine Arts hosts rotating exhibits, so be sure to check the schedule online. And Perception is a 17,000-square-foot digital museum. 

Enjoy the Strip, but don't be afraid to take some time away from it.

When you're ready to trade the Strip's nonstop commotion for some nature, head 30 minutes to Red Rock Canyon or an hour to Valley of Fire State Park . Both are great for sightseeing and hiking. 

Visitors should also consider driving an hour from the major resorts to tour the Hoover Dam in Boulder City. When it was built in the 1930s, it was the world's largest dam — and it's still worth a visit today.

This story was originally published on August 15, 2022 and most recently updated on September 10, 2024.

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What is a budget calendar?

PayPal Editorial Staff

September 10, 2024

Creating a budget calendar can be a helpful tool for anyone looking to track finances or get a better overview of personal or household spending.

A budget calendar looks just like a regular calendar but is used specifically to monitor income, track expenses , and stay on top of bill due dates. A budget calendar's format can be useful, combining the visual organization of a calendar with the detailed planning needed for a budget.

Potential benefits of a budget calendar include improved financial tracking, expense planning, and building a budget . Here's how to work with a budget calendar to keep payments on track and manage financial goals.

How to create a budget calendar

While financial management goals will vary from person to person, here’s a general step-by-step breakdown of how to get started with a budget calendar:

• Step 1: Gather financial information.  This includes income sources, recurring bills, and variable and fixed expenses.
• Step 2: Choose the right format.  It's a good idea to compare options, such as digital apps online vs. paper calendars. Some people prefer a weekly budget calendar, while others go for a monthly budget calendar. The format depends on the specific goals and needs of the person or household using the calendar.
• Step 3: Record income.  Be sure to include regular paychecks, side-job income, and any other sources of income on the budget calendar. From there, note where the income will go — such as into a savings account  or emergency savings  account, a checking account, or a retirement account.
• Step 4: Track expenses. Track and categorize fixed and variable expenses when maintaining a budget calendar. Recurring bills often include electricity, cellphone, internet, and rent or mortgage, while variable expenses might be groceries or one-off purchases.
• Step 5: Mark key dates.  Be sure to include paydays and bill due dates on the calendar to ensure payment deadlines are not missed.

It's important to regularly review and maintain the budget calendar, as income and expenses can change. Even due dates of bills can vary, so set a regular time to check in and keep it up to date.

Why use a budget calendar?

There are various potential benefits of using a budget calendar. Notable examples include:

• Financial organization.  A budget calendar may help to organize household bills  and expenses. Being able to plan financially is an important factor when it comes to successful budgeting.
• Cash-flow management. With a budget calendar as a visual guide, it may be easier to remain aware of cash flow. Staying on top of when funds come in and go out may help individuals avoid overdrafts, late fees, and other potentially costly missteps.

Maintaining a monthly budget calendar

To get the most out of a money management calendar, consistency is key. Consider these tips on how to make monthly calendar budgeting effective:

• Be consistent.  Establish a regular schedule for updating the calendar. After getting into the habit of maintaining it, it can become routine.
• Use alerts and reminders.  Setup alerts for upcoming bills  and income to avoid any potential surprises.
• Be flexible.  It can be helpful to be nimble when it comes to money management . Don't forget to continue to update the calendar as financial situations change.
• Track progress toward goals.  A personal budget calendar can help monitor progress toward financial milestones so budgets can be adjusted accordingly. If the calendar shows that the current savings pace is not enough to reach a goal, for instance, it might be time to consider alternative strategies.

Explore more on money management .

Budget calendar FAQ

What are common budgeting mistakes to avoid.

There are some common mistakes people make when budgeting with calendars, especially when starting out. A few of them include:

• Overlooking small expenses. Including every impulse purchase or small buy on a budget calendar might seem like overkill. But minor expenses add up. It's a good idea to put them all on the calendar to get a full picture.
• Not reviewing regularly. A monthly budget calendar can be a helpful tool if it's used properly. The risk of not updating the calendar frequently is that it becomes obsolete if the information is outdated.
• Being unrealistic. Trying to save up for a first home is a great idea. But if the house is outside of someone's budget, it might be a recipe for disappointment — no matter how updated the budget calendar is. Instead, think about starting small.

What online resources can I use to help create a budget calendar?

• There are many helpful tools and resources to help those looking to make a budget calendar. Printable templates: Many online resources offer free, printable budget calendar templates. Once a template is downloaded, all that’s needed is to fill it in using specific, financial information.
• Online tutorials and guides: Using online videos to help find different calendar styles and formats can be a great way to discover other methods.

There are many budget calendar options out there. By choosing one that works and sticking to it, this simple tool can be a gateway to staying on top of finances and achieving goals.

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What We Know About Kamala Harris’s $5 Trillion Tax Plan So Far

The vice president supports the tax increases proposed by the Biden White House, according to her campaign.

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By Andrew Duehren

Reporting from Washington

In a campaign otherwise light on policy specifics, Vice President Kamala Harris this week quietly rolled out her most detailed, far-ranging proposal yet: nearly $5 trillion in tax increases over a decade.

That’s how much more revenue the federal government would raise if it adopted a number of tax increases that President Biden proposed in the spring . Ms. Harris’s campaign said this week that she supported those tax hikes, which were thoroughly laid out in the most recent federal budget plan prepared by the Biden administration.

No one making less than $400,000 a year would see their taxes go up under the plan. Instead, Ms. Harris is seeking to significantly raise taxes on the wealthiest Americans and large corporations. Congress has previously rejected many of these tax ideas, even when Democrats controlled both chambers.

While tax policy is right now a subplot in a turbulent presidential campaign, it will be a primary policy issue in Washington next year. The next president will have to work with Congress to address the tax cuts Donald J. Trump signed into law in 2017. Many of those tax cuts expire after 2025, meaning millions of Americans will see their taxes go up if lawmakers don’t reach a deal next year.

Here’s an overview of what we now know — and still don’t know — about the Democratic nominee’s views on taxes.

Higher taxes on corporations

The most recent White House budget includes several proposals that would raise taxes on large corporations . Chief among them is raising the corporate tax rate to 28 percent from 21 percent, a step that the Treasury Department estimated could bring in $1.3 trillion in revenue over the next 10 years.

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