hotel business plan in kenya

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Hotel Business Plan

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

Why? Many do not have the time and don’t know what to write or how to do the financials. But until you finish your business plan, you will not be able to get the financing either. So you end up with ideas sitting in your head not realizing your dream.

Really it is not that difficult to make a good hotel business plan. It is merely a structured summary of your idea. Most people try to include everything about their hotel concept in the plan. This leads to an indigestible super novel-like bookwork, aka a mess.

The key is, knowing what to include, and what not to include in your hotel business plan. Create a clear road map for success. Excite investors rather than bore them to death like most business plans full of redundant information do. And you need to lead readers down the exact path you want.

One of the main challenges for example is that after reading the first page most businesses often don’t fully understand what the hotel is all about. For investors and lenders, it is crucial they can quickly comprehend your plan, without reading the whole document.

Hotels 101: The Basics of Business Planning

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

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

Steps of your Hotel Business Plan

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

Infographic by Xotels

1. Executive Summary

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

• Mission Statement (Introduction): a 1 line company description only the essence of your hotel (not 2 lines or a paragraph). It explains why you are in business or which huge need you are solving, that currently is not being met. For example in the case of Qbic Hotels “Moving modular hotels into under-utilized real-estate to reduce build-out cost and time.” 
• Objectives : What do you hope to accomplish (i.e. “Reach an annual occupancy of 90%”).

 2. Company Analysis

More detailed information on the USPs (unique selling points) of your hotel concept.

3. Industry Analysis

Information on the current industry trends and the current state of the market and how this will impact your hotel. This is needed as investors want to be sure you really understand the hotel industry. This acts as the foundation on which decisions such as trends and developments to follow will be based.  

Streamline Your Hotel Operations

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4. Customer Analysis

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

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

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

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

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

5. Competitive Analysis

A study of your local competition or global concept competitors, with each of their strengths, weaknesses, occupancy rates and market share ( SWOT analysis ). And don’t forget the most important part; what differentiates you from them. What makes you stand out?

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

6. Strategic Plan

This exists of 3 parts:

• Marketing : How exactly will you attract customers/guests? How will you position yourself? What will your message be to the different segments of your business mix? How will your direct marketing work? What will be the plan for your hotel website, SEO, SEM and SMM? Will you do offline promotion? In short, your hotel marketing strategy should cover everything there is to know about how to market your hotel.
• Distribution : Which 3rd party channels will you use and how will you manage availability? What technology will you need?
• Revenue management : What pricing and yield techniques will you use? What will your payment and cancellation policies be? Which room types will you be selling, and how will they be individually marketed? How many revenue scenarios will I create? Where can I compensate income/demand streams when necessary?

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

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

7. Operations Plan

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

• How many staff and supervisors will you need? 
• What are their job descriptions/responsibilities? 
• What background and experience should they have? 
• When should they start? 
• What are your service standards?
• Will you develop manuals?
• Which supplier will you use?
• How will you manage inventory?

8. Management Team

Include the bios of your team. Focus on what uniquely qualifies you to make your hotel such a success. Having a great team is the key to success , and stakeholders will be impressed with a thorough explanation of the added value everyone brings to the table.

9. Financial Plan

Provide the start-up costs of the hotel (capital investment), the ongoing business costs, operational expenses and revenue projections for the next five years. These figures should be always based on your Hotel Feasibility Study . The KPIs to look at include expected occupancy, ADR (Average Daily Rate) and RevPAR (Revenue per Available Room).

If you are raising money , outline how much funding will be needed and when. Explain how you will generate a return on investment for investors, or when lenders will be paid back.

10. Key Milestones

These are the most important achievements which once they have been completed, will make your hotel more likely to succeed. Think off:

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

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

11. Appendix

Provide any other relevant information here. Don’t clutter the main sections of your hotel business plan with too many details. Rather support them with attachments in this part.

Putting Your Plan into Action

Many people have great business ideas. But that really doesn’t matter. The difference between dreamers and entrepreneurs is the action mindset. Are you ready to ship your idea to the market? 

The first step is to put your ideas on paper. I hope this free sample will help you write a persuasive hotel business plan. Because no investor or lender will be interested if you cannot present a clear plan.

Follow your dreams and go for it!

Maximize Your Hotel Revenue

Uncover the hidden revenue potential of your hotel or resort.

Need help to Develop and Manage your Hotel Concept?

Our revenue management consulting experts at XOTELS have helped hundreds of hotels to develop and optimize their businesses.

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

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

Best of luck in your endeavours!

Patrick Landman

PS. Get in touch with us if you need help developing and managing your hotel concept, and help bring your hotel to the next level with our hotel consulting services.

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How to Start a Hotel

How To Start Your Own Hotel Business

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

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

Download our Ultimate Business Hotel Plan Template here

15 Steps to Start a Hotel Business:

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

1. Choose the Name for Your Hotel

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

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

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

2. Develop Your Hotel Business Plan

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

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

Your hotel business plan should include the following sections:

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

3. Choose the Legal Structure for Your Hotel

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

Below are the five most common legal structures:

1) Sole Proprietorship

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

2) Partnerships

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

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

3) Limited Liability Company (LLC)

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

4) C Corporation

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

5) S Corporation

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

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

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

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

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

5. Find a Location to Buy or Start Building

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

To find the right space, consider:

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

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

6. Register Your Hotel with the IRS

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

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

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

7. Open a Business Bank Account

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

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

8. Get a Business Credit Card

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

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

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

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

9. Get the Required Business Licenses and Permits

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

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

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

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

10. Get Business Insurance for Your Hotel

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

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

11. Buy or Lease the Right Hotel Business Equipment

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

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

12. Develop Your Hotel Business Marketing Materials

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

The key marketing materials you will need are as follows:

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

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

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

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

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

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

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

14. Hire & Train Your Hotel Staff

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

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

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

15. Open for Business

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

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

How to Finish Your Hotel Business Plan in 1 Day!

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

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

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

How Can I Own a Hotel With No Experience?

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

What Types of Hotels Are Most Profitable?

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

How Much Does It Cost To Start a Hotel?

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

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

How Does a Hotel Make Money?

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

Is Owning a Hotel Profitable?

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

How Much Does a Hotel Owner Make?

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

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

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

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

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

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

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

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

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

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

Rent and Utilities

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

Other Expenses

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

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

Why Do Hotels Fail?

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

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

How Big Is the Hotel Industry?

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

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

What Are the Key Segments of the Hotel Market?

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

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

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

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

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

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

What External Factors Affect the Hotel Market?

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

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

Who Are the Key Competitors in the Hotel Market?

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

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

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

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

Who Stays in Hotels?

Recent demographics show that total guests are comprised of: 

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

What Are the Keys to Launching a Successful Hotel?

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

1) Location and Opportunity

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

2) Strategy

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

3) Planning

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

4) Fundraising

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

5) Hospitality Mindset

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

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

Where Can I Download a Hotel Business Plan PDF?

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

Additional Resources in the Hotel Market

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

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

OR, Let Us Develop Your Plan For You

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

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

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10 steps to creating an effective hotel business plan

Any successful business is born from a thorough plan, your hotel business isn’t any different. Before you make a name for yourself with your great hospitality and atmosphere you must have a solid start.

An effective hotel business plan can be created through 10 steps. This blog will show you how to easily create a roadmap that will be beneficial for years to come.

What is a hotel business plan?

A hotel business plan is a document where you decide on a roadmap for your newly built hotel business. It consists of goals, objectives, strategies, and an analysis of your competitors. It does not only show you what you need to do to achieve success but what to avoid as well.

Having a hotel business plan in place before diving into the hard work can really set you up for success. It gives you a crystal-clear vision for your long-term goals and objectives, therefore it is not only about an immediate benefit. 

How do I write a hotel business plan?

Writing a well-put-together hotel business plan requires some key points that will help you turn your plan into an actionable guideline. Here are the 10 key steps to turn your dreams into a success story.

1. Executive summary

The executive summary kicks off your hotel business plan, setting the tone for everything that follows. It’s crucial because it outlines the essence of your business and its aspirations. 

Keeping it concise is key to keeping your investors engaged. Just explain your vision and mission in straightforward terms, and convey why you’re deeply passionate about this project.

Vision : Be straightforward with your vision, what you want to achieve at your hotel, and what are your aspirations. Your vision will be the starting point for your business venture.

Mission : This is a summary that outlines the reasons behind your desire to launch your business, identifies your target customer base, and highlights your strategies for providing them with outstanding service.

Goals : What sets goals apart from vision and mission statements is their specificity and measurability. Let’s illustrate this with examples:

• Achieving an annual 85% occupancy rate in the second year
• Becoming the top-rated hotel in your fifth year in the area you operate on
• In the first 6 months achieve a customer satisfaction rate of over 93%

Answering these three will help you build an outline. From there what you need to ask yourself is: “If I were a guest, would I like to stay here?” If the answer is yes go for it and move on to creating branding for your business.

If your vision, mission, and goals are not satisfactory and your planned hotel is indeed not a place you would like to spend your holidays, go back to the drawing board. Think deeper into what would be a good idea for your future hotel.

Following your dream can take more effort than you might have imagined in the first place but having a solid plan for these three is a must.

2. Distinctive identity

Now, it’s time to find out what sets your hotel apart from the rest. Every hotel possesses a unique selling point, catering to diverse guest preferences. Some prioritize luxury, seeking extravagance in their accommodations. Others are drawn to themed hotels, where each stay promises a distinct and immersive experience. And, of course, there are those who prioritize location above all else.

Once you’ve pinpointed the essence of your hotel, you can delve into branding strategies . This is where you show your guests why they should choose your accommodation over the competition. By highlighting your unique selling points and crafting a compelling brand narrative, you can create a brand that sets your hotel apart.

3. Sector analysis

This section contains information about the current market situation, customer trends in the industry, and how all these will affect your hotel. You can then incorporate these trends into your business practice.

If you don’t know where to start you can check out economic, environmental, political, and technological trends. The sector analysis is critically important in terms of ensuring a clear understanding of the accommodation industry vis-à-vis investors.

4. Guest analysis

Which guests do you intend to accommodate in your property the most? This section includes details about guests such as demographic, psychographic, behavioral, socioeconomic, and geographic categorizations (segmentation), i.e. it contains thorough information regarding your target market. 

Here you should explain your hotel’s position across the target market in terms of your activities and services, how it will cover the needs of your targeted guests, and why the guests will prefer your hotel.

5. Competition analysis

When doing a competitor analysis, check out the local hotels that your guests may prefer and the global competitors where you share the same niche. Dive into their strategies, dissecting their strengths and weaknesses.

Once you have that analysis on hand figure out an aspect that will separate you from them. This is your unique selling point—the defining feature that captures guests’ attention when they’re deciding where to stay. By honing in on what makes you distinct, you position your hotel as the standout choice in the eyes of potential guests.

6. Strategic planning

Now that you have all your base points covered and figured out how your today will be it is now time to focus on the future. You may have great ideas for your hotel, know all the industry trends, and have a USP but it is also important to have a controlled growth plan.

When you are deciding on how you will continue to grow, there are certain questions you need to ask yourself in terms of marketing, distribution, and revenue management.

• What kind of guests does your hotel attract?
• How would you position your hotel?
• What message does your hotel communicate to different guest segments?
• How will your direct marketing activities function?
• What are your hotel’s plans regarding your website, SEO (Search Engine Optimization), SEM (Search Engine Marketing), and SMM (Social Media Marketing)?
• Do you plan to launch offline promotion campaigns for your hotel?

Distribution:

• Which third-party channels will you use and how will you manage their availability?
• Which technologies will you need?

Revenue Management:

• Which pricing and productivity techniques will you utilize?
• What kind of payment and cancelation policies will you implement?

7. Operation plan

In your hotel business plan, this section is where you detail the day-to-day operations of your establishment. One of your initial priorities is establishing a staffing strategy. Determine the number of employees and chefs you’ll hire, outline their job descriptions, and allocate responsibilities accordingly.

Once your staffing strategy is in place, define guidelines for your staff to follow and establish service standards. These standards are crucial as they directly impact your business’s reputation and the guest experience.

Another critical aspect of your plan is selecting suppliers. Your suppliers play a pivotal role in shaping your hotel’s overall atmosphere and food quality. Carefully vet potential suppliers to ensure they align with your standards and objectives, as their products and services can significantly impact the success of your business.

8. Executive team

When building your team, you should focus on unique qualifications that will make your hotel an outstanding success. Your hotel staff serves as the backbone of your operation, directly influencing the smooth functioning of your business and shaping the guest experience.

After you decide on your staff, include your team’s biographies in the executive team section.

9. Financial plan

A financial plan contains hotel, capital, investment, and establishment expenses that will be incurred for your hotel in the upcoming five years as well as the expenditure covering your revenue projections, recruitment costs, and operational costs. 

Once you’ve laid out your financial plan, you’ll have a clear picture of the investment required for your business. This not only helps you understand your funding needs but also provides valuable insight for potential investors reviewing your hotel business plan. They can assess the investment required and evaluate the financial projections and return on investment (ROI) potential, aiding them in making informed decisions about investing in your venture.

10. Fundamental milestones

When creating a hotel business plan there are some fundamental milestones you mustn’t miss. The best way to ensure that is to make a list of what they are and create a detailed plan on how to tackle all of them before your opening. If you don’t know what they might be here is a list to give you ideas:

• Selection of your location
• Permissions and licenses
• Legal compliance
• Establishment/ hotel construction
• Employees and training

Missing some steps can cause troubles for your business therefore it would be a smart decision to create a checklist to make sure you have completed all of them.

How do you start a hotel business?

Tapping into our tips, you can also build a hotel business and enjoy an invaluable roadmap on your journey. HotelRunner is always there for you to claim your position across the digital realm. Connect with our team to see how HotelRunner can help you grow your business.

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Resetting the Business Model for Hotel Industry in Kenya: Lessons from COVID-19 Pandemic

• June 26, 2021

Introduction

The hotel industry is one of the sub-sectors in the tourism sector envisioned to deliver on the 10 per cent annual economic growth as projected in the Kenya Vision 2030. Its contribution to real Gross Domestic Product (GDP) has been, on average, 1 per cent over the last 10 years. In addition, the industry directly employed 82,900 people and, together with trade, indirectly engaged 9 million people in 2019.  At a disaggregated level, the industry contributed over 10 per cent to Gross County Products (GCP) for counties such as Kwale, Mombasa, and Nairobi in 2017, hence a key industry in both the National and County governments.

Following the outbreak of COVID19 pandemic, the National Government  through the economic stimulus package  set aside Ksh 2 billion as a soft loan to hotels. The loan was earmarked to support renovation and restructuring of business operations in the hotel industry. In addition, the industry also benefited from a tax incentive that saw  Corporate Income Tax (CIT) reduce from a high of 30 per cent to a low of 25 per cent in 2020 under the fiscal policy stimulus, which was later reinstated to 30 per cent in January 2021.

Performance of Kenya Hotel Industry during COVID-19 Pandemic

The hotel industry is one of the sub-sectors that is heavily affected by the consequences of the COVID-19 pandemic. The effects are largely attributed to containment measures implemented  to curb the spread of COVID-19 such as: the new norm of social distancing, which has reduced the hotel’s holding capacity; suspension of international flights such that the number of foreign tourists has declined; new norm of working from home, which has reduced the demand for hotel services especially the restaurant and conferences services; daily curfew hours, which has reduced the number of working hours; partial lockdowns within the country, which has reduced inter-counties’ tourists; and costly requirements for a COVID-19 compliance certificate to re-open businesses. These measures have slowed down the operations of the hotels and forced them to work under reduced capacity, or worse still close-down.

The industry’s growth trajectory came to a halt as it contracted by 9.3 per cent and 83.3 per cent in the first and second quarters of 2020 [1] , respectively. This was an all-time low from a growth of 13.1 per cent and 10.1 per cent in the first quarter of 2018 and 2019 and 15.4 per cent and 9.0 per cent in the second quarter of 2018 and 2019, respectively. The third quarter of 2020 saw an improvement of 30.4 per cent following the easing of government restrictions and resumption of most economic activities since July 2020. The positive outlook was, however, short-lived and prospects were shuttered when the third wave was witnessed in the country in April 2021, prompting new containment measures such as lockdown of five counties, extension of curfew hours, closure of bars, with hotels operating take-away services only.

The contraction of the hotel industry was marked by a decline in the proportion of operational hotels during the COVID-19 pandemic period. For instance, operational hotels declined to 72 per cent in March 2020 and further to 35 per cent in May 2020 (Figure 1) reflecting pressure on the industry due to COVID-19 measures. However, with the easing of COVID-19 measures and the opening of the economy in July 2020, the industry has been on a recovery journey, albeit slow until when a partial lockdown was announced in April 2021. On average, 97 per cent of the hotels were operating in January 2021 compared to 89 per cent in October 2020 and 71 per cent in July 2020. Despite the notable recovery until January 2021, the number of operational hotels is projected to have reduced further to below 97 per cent in March-April 2021 following the COVID-19 protocols for hotels in Nairobi, Kajiado, Machakos, Nakuru, and Kiambu to provide only takeaway services.

The hotel industry is projected to constitute the majority of the 1.72 million people who lost their jobs due to COVID-19 pandemic. As indicated in Figure 1, the industry experienced high unemployment rates as 67 per cent of the hotel industry employees lost their jobs in May 2020. However, due to the easing of COVID-19 restrictions and increase in demand for hotel services during the Christmas festive, most staff resumed jwork, leading to an increase in employment to 60 per cent towards the end of the year.

Figure 1: Proposition of hotels operating and employment level during the COVID-19 Pandemic

Data Source: Central Bank of Kenya Report, Nov 2020 & Jan 2021

Despite the rebound in operating hotels, utilization of hotel facilities such as bed occupancy rate, restaurant services, and conference facilities has remained low. For instance, there was a sharp decline in utilization of conference services from 60 per cent in February 2020 to 40 per cent in March 2020 when the first case of COVID-19 was reported, and further to an average of 6 per cent between April and June 2020. The contraction in the utilization of conference facilities prevailed to July 2020 when it began to grow marginally, rising to 17  per cent in November 2020. Similarly, both the utilization of restaurant services and bed occupancy rate declined from 66 per cent in February 2020 to 37 per cent in March 2020 and further to an average of 11 per cent between April and May 2020. The utilization of restaurant services and the bed occupancy rate registered negligible growth from July 2020 to 28 per cent and 22 per cent in November 2020, respectively.  This implies that the tourism sector is unlikely to attain the projected hotel-room revenue growth rate of 12.1 per cent and 9.4 per cent [1] in 2020 and 2021, respectively, as forecasted by PricewaterhouseCoopers (PwC).

A comparison of local and foreign clientele (Figure 2) shows that domination of local clients during the pandemic compared to pre-COVID-19 period when the difference between the local and foreign clients was marginal. The decline in the number of foreigners from 127,087 in January 2020 to an average of 6,080 between April and September 2020, 47,406 in December 2020, and  35,052 in February 2021 during the pandemic presents an opportunity for the hotel industry to re-think their business model, including enhancing their focus on the domestic market.

Figure 2: Hotel clientele

Data Source: Kenya National Bureau of Statistics (Various), Economic surveys and Central Bank of Kenya Report, 2021

Should the hotels adopt a different business model?

The prevailing COVID-19 situation has exposed the unsustainable business models adopted in the hotel industry. Traditionally, star-rated hotels have been viewed to be more resilient and adaptive to shocks compared to small urban eateries and restaurants. However, COVID-19 has exposed their  vulnerability as a result of overdependence on foreign clients and unsustainable pricing models. As presented in Figure 2, around 86 per cent of hotel clients were local even after resumption of flights in August 2020. This group of hotels are also known to depend on conferences and events, which were all brought to a halt to contain the spread of the virus. The pandemic has resulted to closure of hotels such as the Intercontinental Hotel, Radisson Blu Hotel Upper Hill, Norfolk Fairmont and the Nairobi’s Tribe Hotel to date, while some that had temporarily closed such as Ole-Sereni, Dusit-2 have resumed their operations.

The restaurants and eateries practice a different business model that meets the needs of financially strained clients.This includes fair pricing and affordable packages that have seen their continued survival during this tough period. The Chicken Inn and Pizza Inn outlets, for instance, have friendly offers during specific days of the week such as Tuesday and Thursday where Pizzas are sold on the basis of buy one get one free. This strategies attract more clients thus increasing the hotels’ sales turnover. Majority of the restaurant outlets offer delivery services that give them a competitive edge especially during the COVID-19 period. The hotels have also thrived through varieties and packages designed to meet the needs of every customer by offering the same product in different proportions and sizes. In addition, adjusting the product and service mix by star-rated hotels to serve the needs of the domestic market can be another breakthrough for the sector. The food cost for menus served in starred hotels is high, which translates to the relatively higher prices compared to hotels and eateries. Serving simple and traditional food such as “Mukimo and Githeri” that have a lower food cost will imply lower pricing, thus attracting more customers.  

Sarova Hotels are reengineering their business model to reach out to the low-end customers. They have opened two restaurants in Nairobi, in the Central Business District and Westlands, diversifying from the trademark hotels and accommodation business to restaurant model aimed at cushioning the hotel amid the pandemic. The Serena Hotel Group is also known for establishing lodges, resorts, hotels and camps in different parts of the country to serve the needs of various markets. However, tapping into the takeaway market has been a challenge for starred hotels given that most clients meet in the facilities for meetings, conferences and workshops, which demand real-time services. The physical setting of starred hotels also limits the takeaway strategy given that  motorbikes are used for delivery services, which may not be appealing for this kind of setup. As such, this niche would be feasible only if these hotels adopt the restaurant model, such as what Sarova has done to tap into this niche market.

The arrival of 1.02 million COVID-19 vaccines doses in Kenya on 3 rd March 2021 was timely, though not enough for the 47.56 million Kenyans. The country is already experiencing the third wave of COVID-19, and should the pandemic persist, the industry  may experience more layoffs, reduced clients and decline in utilization of the hotel facilities. This will delay full resumption of hotel operations and further slowdown the efforts to enhance the contribution of the industry to the economy.

It is therefore, critical for the state and non-state agencies to explore innovative strategies to enhance resilience and incentivize the industry during the pandemic to sustain the growth trajectory.

Authors: Peris Wachira, Young Professional, Private Sector Department

Rufus Kandie, Young Professional, Productive Sector Department

[1] Hotel’s outlook: 2019–2023 Future resilience https://www.pwc.co.za/en/assets/pdf/hotels-outlook-19-2023.pdf

[1] KNBS (2020) Quarterly GDP Report, 2020. Accessed from https://www.knbs.or.ke/?page_id=1591 .

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While the hotel business is one of the most profitable businesses to start in Kenya, getting started is not as easy as you would think, given the number of licenses and permits required.

The issue of licensing was cited as a major detriment to the growth of small-medium enterprises (SMEs)  in Kenya, with legislators pushing the government to merge some of these licenses and permits to increase the ease of doing business.

The licenses required include;

County Government License- Every business operating in Kenya must be licensed by the county government. The license must be renewed on an annual basis.

National Government License- It is issued by the national government through the ministry of tourism

Music Copyright License- It is Issued by the Music Copyright Society of Kenya (MCSK), permitting the business to play MCSK-licensed music in the establishment.

Signage License- Is issued by the county government, permitting the business establishment to have an outdoor advertising board

How to start hotel business with 40k and make 90k monthly revenues

National Environment Management Authority (NEMA) License-  NEMA certifies that the business meets all the requirements with regard to environmental conservation and waste disposal.

Ministry of Health license- This is issued by the Ministry of Health to certify that the establishment meets all health and safety requirements.

COVID-19 License- The Ministry of Health recently introduced it and certifies that the business has met the COVID-19 prevention requirements.

Business Permit- Issued by the national government through the citizen platform

Liquor Permit – Issued by the county government to permit the hotel to sell alcoholic drinks at the establishment.

Tourism Catering- is issued by the Tourism Regulatory Authority (TRA ) to certify that the establishment meets the tourism regulations, standards, and guidelines.

Fire Inspection – Certifies that the business is sufficiently prepared to handle fire breakouts.

Workplace Registration- certifies that the establishment is formally registered with the authorities.

NSSF- The business is expected to provide NSSF cover for every employee working at the establishment.

NHIF- The business is expected to provide NHIF cover for every employee working at the establishment.

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How To Start A Hotel Business In Kenya Easily For Profits

Among the best businesses one can start here in Kenya is a hotel business. Think of this situation, food is a basic need. This means that people cannot survive without food.

You find out that other people may have homes but are very lazy to cook. Others may be tired due to the jobs they do and for that reason, they decide to have meals at hotels.

Besides, you should also consider chips and chicken business In Kenya as it’s a trendy fast food business.

This is how to start a hotel business in Kenya:

Step 1. To begin a hotel company, locate a good area where potential clients may be found.

Outside of schools and universities, where there are industries, in town centers, and where visitors frequent are the ideal areas to establish a hotel business.

Step 2. Locate dependable vendors.

Step 3. Obtain a business license from the municipal or county council where you plan to operate.

Step 4. Get permission from the Ministry of Health by acquiring health certification.

Step 5. Obtain a license from the ministry of tourism if the hotel is three, four, or five stars.

Step 6. Begin your business by acquiring culinary equipment.

Step 7. After that, go out and get some nice chairs and tables. Remember, image is vital, so pay attention to your surroundings and make your room’s interior decorations one-of-a-kind and appealing.

Step 8. Hire a manager with extensive hotel management expertise. The manager will be in charge of hiring new employees.

Step 10. Make sure you personally run the company for six months before handing it on to them. This will assist you in determining the earnings it will generate in the future as well as the obstacles for future improvement.

Now you’re all set to go. Good luck

Requirements For Starting A Small Hotel In Kenya

How to start a small restaurant in Kenya is not difficult. All you need is to set up a good plan for your business. With determination and patience, you will be able to start and run your hotel very well.

For you to either start or run a business, you need to have requirements. This case also applies here. The requirements are however common. These include things like permits, startup capital, and labor among others.

If the business goes well, you can further extend it into a bigger premises.

Hotel Business Plan In Kenya

One needs a plan for a smooth running of their business. A hotel business plan in Kenya might have the following contents;

a. Management team

b. Strategic plan

c. Customer analysis

d. Industry analysis

e. Executive summary

f. Competitive analysis

Hotel Licenses In Kenya

If you are running a hotel, then you need to have a license. Hotel license in Kenya shows that the business you are conducting is legal and approved by the government.

Having the relevant licences, then conduction of the business will be legitimate.

To give you an idea, the following are some of the license fee for hotels in Kenya:

The cost of a license is determined by the hotel’s classification, i.e.

6,000 Kenyan shillings Licensing fees for hotels with one to ten beds and/or a minimum total charge for accommodation per night of less than Kshs. 1,500.

8,500 Kenyan shillings Licensing fees for hotels with one to ten beds and/or a minimum total charge for accommodation per night of more than Kshs. 1,500.

16,000 Kenyan Shillings Fees for hotels with or without at least one restaurant and/or a bed capacity of between 11 and 40 beds, and a minimum total charge for accommodation per night of over Kshs. 1.500.

Ksh 21,000 Licensing fees for a hotel with more than one restaurant and bar outlet, as well as a bed capacity of 41 to 80 beds and a function room.

Ksh 27,000 for a villa license.

Besides, as you hotel becomes more advanced such as a five star, the license fee increase. Check with your county council for your exact license based on the people you hotel can serve.

Capital To Start A Restaurant In Kenya

Capital to start a restaurant in Kenya may vary due to some factors. It depends on whether you want to start a small restaurant or a big restaurant.

So, how much do I need to start a fast food business in Kenya? To start a fast food business in Kenya you need an average of Ksh. 100,000 to cater for all start up expenses and licensing fees.

The more advanced your hotel is, the more capital you need and can go even beyond Ksh. 1m.

Besides, with a strategic place expect to an average profit ranging from Ksh. 2,000 to Ksh. 20,000 per day.

Let me hope that this article was of great importance to you.

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2023 Development Update: Kenya

One-of-a-kind urban and remote properties offer new ways to travel in Kenya

Words by: Kathryn Greene

Since Kenya lifted pandemic restrictions in 2021, both domestic and international travelers have made a comeback. According to Lodging Econometrics , Kenya had 2,844 rooms across 19 projects in the pipeline in Q4 2022. “The Kenyan hospitality sector continues to develop because of several factors, such as its growing economy, improving infrastructure, and business environment,” says Carlos Khneisser, Hilton’s vice president of development, MEA.

Kenya is also seeing a boost due to the proliferation of “revenge travel,” defined as travelers who want to make up for lost time during the pandemic by seeking out bucket list experiences, of which Kenya offers plenty. There’s cosmopolitan capital city, Nairobi, where the mixed-use Dusit Princess Hotel Residences Nairobi is in the works; the breathtaking landscapes and abundant wildlife of the savannahs and plains, which will soon be home to ultra-luxurious eco camps by Discover Collection ; and coastal haven Malindi, which boasts the newest outpost of Billionaire Resort and Retreat . Below, we spotlight four properties that embody the unique breadth of Kenya’s hospitality offerings.

Angama Amboseli

A rendering of the raised swimming pool at Angama Amboseli shows a drinking trough for elephants

In November, luxury camp company Angama will open its latest outpost, Angama Amboseli , where upon arrival, staff will greet guests with “Karibu nyumbani,” meaning “Welcome home” in Swahili. “We want guests to feel at home and deeply cared for by our team,” says Alison Mitchell, head of special projects for Angama.

Located within the Kimana Sanctuary and designed in-house, the camp will be framed by sweeping views of Mount Kilimanjaro and is home to an abundance of wildlife, including the endangered Super Tusker elephant. The animals are considered throughout the property’s architecture, with a raised rim-flow swimming pool that includes a water trough that they can drink from and a viewing tower in a marshy area for guests to relax and observe them undisturbed. Elephants’ color and texture also serve as the inspiration for the design of the camp’s 10 guest suites.

The exteriors of the buildings will be crafted using a traditional, soil-based technique fortified with natural fibers, cement, and sand plaster. Aiming to preserve the lush landscape of the fever tree forest while creating the buildings’ foundations, they remained undisturbed thanks to careful digging in and around the tree roots. “We want [guests] to gain an understanding of the Amboseli ecosystem and their role in preserving this special place in Africa,” Mitchell says.

Kwetu Nairobi

A wooden screen grounds the high coffered ceilings of the Kwetu Nairobi’s lobby

Hilton has 100 hotels either trading or in development across Africa, and, according to Khneisser, Hilton expects to “more than double” its portfolio in the next few years.” One of the company’s latest additions to the continent will come in April, when Kwetu Nairobi opens, marking the first Curio Collection by Hilton outpost in East Africa. The property, formerly a historic home dating back to the 1800s, was expanded for its transformation into a boutique hotel with five new interconnected buildings “allowing guests to journey through the property,” Khneisser explains, and now comprises 102 guestrooms, an outdoor pool, spa, fitness center, and a seasonal rooftop F&B concept. In the lobby, coffered ceilings create a dramatic scene, where a fireplace and seating area will offer a cozy area for guests just steps from the sleek lobby bar.

Kwetu Nairobi’s restaurant overlooks the tranquil outdoor pool area

Upstairs, the guestrooms conceived by Les Harbottle Design are awash in calming hues, while accents like handblown glass pendants add a subtle pop of color and playful furnishings reference travel with suitcase-inspired leather and buckle trims. “The design was inspired by the rich history of not only the property but the city of Nairobi, creating a fusion of old historic appeal and modern contemporary design with a focus on luxury and comfort,” adds Khneisser.

Gigiri Nairobi MGallery

Shown in a rendering, the Gigiri Nairobi MGallery’s rooftop pool and bar features terrazzo detailing

Accor, which already boasts six hotels in Kenya, including the Hotel Fairmont Mara Safari and Hotel Fairmont the Norfolk, will expand its presence in the country with the forthcoming, 105-key Gigiri Nairobi MGallery , set to debut in 2024 in the city’s affluent Gigiri neighborhood. Developed in partnership with the locally owned Jit Group, the interiors by Moscow-based Sundovky Sisters will nod to the developer’s gemstone business with jewel tone furnishings and an iridescent aesthetic.

Towering banana leaf plants in the Gigiri Nairobi MGallery will nod to the nearby Karura Forest

The design studio is also taking care to include subtle yet authentic references to Africa via materiality, incorporating shells, wood, gold, and marble throughout the property, and by installing large banana palm trees in the lobby to bring the feel of the nearby Karura Forest indoors. Also in the lobby, which features dichroic-film accents on the walls and ceiling, a curvilinear bar crafted out of glass bricks will create a prism-like effect in changing light, particularly when the folding walls are in use to create an open-air ambience. The rooftop, which overlooks the forest, will boast a bar and restaurant (one of four F&B concepts) and an infinity pool with a terrazzo median providing an oasis for guests, while tying back into the stone accents throughout the hotel.

JW Marriott Masai Mara

Sculptural wooden pendant lights in the lobby of the JW Marriott Masai Mara, seen in a rendering, draw inspiration from natural elements

Situated on the banks of Kenya’s Talek River within the Masaai Mara National Reserve, Marriott will celebrate its entry into Africa’s luxury tented camp market with the JW Marriott Masai Mara , opening in April. “Travelers are increasingly seeking immersive, transformative, and authentic experiences,” says Candice D’Cruz, vice president and continent brand leader – luxury for Marriott International, Europe, Middle East & Africa. To create such a destination, the all-inclusive camp comprises just 20 private tents and suites with a design inspired by natural elements as captured with wood finishes, sandstone tiles, and stone mosaics.

At the spa, sliding glass doors will open to let in the sunshine and sounds of nature while guests receive treatments. Also on the property, Sarabi Restaurant will boast a veranda for alfresco dining. And at the open-air Fig Tree Lounge, the social heart of the space is a fireplace where guests can gather and relax. Just off the lounge, a large viewing deck replete with a firepit, creates opportunities to watch wildlife day and night. “The location and landscape [are] synonymous with the design of the property, creating harmony with the natural world and a sense of calm,” adds D’Cruz.

A rendering of the JW Marriott Masai Mara’s deck, situated off the Fig Tree Lounge

To support the local communities and ecosystems, Marriott has partnered with several nonprofits including the conservancy-focused Maa Trust, the Mara Predator Conservation Program, and the Elephant Project, which will help educate guests about wildlife. “Destinations such as Kenya fulfill guests’ desire to go beyond visiting a place. They have the opportunity to connect [more deeply] with the community, [and] get to know the people, history, food, and culture of a destination.”

This article originally appeared in HD’s February/March 2023 issue .

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5 Steps in Starting a Successful Hotel Business in Kenya

In Kenya, you can start a fast- food restaurant or an eatery as it is the most printable business in Kenya. All you need is determination to make it thrive. This kind of business is ideal as you can start with little capital/amount especially if you want to start a road side eatery for fries as a side hustle apart from your permanent job.

Every year, more restaurants are opened and more restaurants close their doors than any other sort of business. So many eateries fail for a variety of reasons.

Simply because you can cook does not imply that you can open and run a successful restaurant. Some of eatery businesses one can start is selling of chips, blended juice, sausages or samosas, fried chicken, nyama choma(mutura).

Things to consider when starting an eatery business

To start an eatery business, one has to consider the following:

1.Carry out market research

• Register your eatery business name
• Acquire the necessary business permit
• Launch your business
• Create a good marketing plan

Carry out market research.

It is critical to conduct thorough market research before beginning a fast food business in Kenya. Before you start your business, you should research the potential opportunities in the market. Determine who your ideal consumer is and where you want to open your fast food restaurant.

What kind of fast food will you be selling to your customers? How muchwould it cost you to start your own fast food restaurant?

Knowing the answers to these questions will assist you in properly

planning your business before to its launch.A high number of foot customers is a great site for a fast food company.You don’t want to start a company in a place where no one will buy from you.

For fast food restaurants, a site near a school, in your town’s CBD, or on the campus of a college is ideal.

Register the name of your fast- food or eatery establishment.

It’s time to register your fast-food business name after you’ve completed your market study. It’s not simply a name; it’s the name of your business. Take the time to come up with a business name that reflects who you are and who your ideal fast-food customer is. You can hire a branding expert who knows what they’re doing. Once you’ve decided on a business name that resonates with you and is appealing to your target customer, you’ll need to register it so that no one else may use it. For you to register your eatery you need to have the following: Your national Identity card, your KRA pin for tax compliance purposes. If you are partnering with someone you need their national Identity card during registration of the business.

3. Acquire the necessary permit for the business

One needs the necessary permit to operate a business legally without and hitches. The permit can be acquired at your local county offices. As an example, in Nairobi a single business permit goes for around Ksh.10,000. Apart from a business permit you need a license from a health officer who will have to inspect your business premises first for you to get one since it’s an eatery and the food made is being sold to the public. The health officer has to a make sure that the place is clean and safe for both the public/customers and the employees. You might also need a fire certificate if operating a cafe

Read>>> A Complete Guide To Getting Started With Cryptocurrency in Kenya

4. Launch your eatery business

After making sure you have the necessary permit and license to operate you can launch your business. For you to launch successfully you need a good strategy. You will need the necessary items like cooking equipment, utensils, food supplies to cook, gas cylinders, microwaves, charcoal, restaurant furniture. All this items you can acquire from an affordable supplier

Have a marketing strategy in place for your restaurant/eatery.

Do you have a marketing plan in place for your fast -food restaurant?

It must be included in your company plan. Your fast- food establishmentis spanking new, and not many people are aware of it. Make a marketingbudget for your company to attract clients and grow revenue. Rememberthat branding is important in marketing,which is why picking a companyis such an important step in the process.

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Hotel Business Plan Pdf Kenya 2

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Start your profitable hotel business in kenya with the Hotel Business Plan Pdf Kenya Version 2. This detailed plan includes essential information on setting up and managing a hotel, such as market analysis, financial forecasts, and operational strategies. Ideal for new or expanding hotels, this plan helps you navigate Kenya’s hospitality industry with practical solutions and insights for success. #Hotel Business Plan Pdf Kenya 2

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Transform Your Hospitality Vision into Reality with Our Hotel Business Plan PDF for Kenya!

Are you ready to embark on an exciting journey in the hospitality industry? Our Hotel Business Plan PDF – Kenya is meticulously crafted to provide you with the essential insights, strategies, and frameworks needed to successfully launch and manage your hotel in this dynamic market.

Why Choose Our Business Plan?

Comprehensive and Practical: This business plan is tailored for aspiring hoteliers, offering actionable strategies and relevant market analysis specific to the Kenyan hotel industry.

What You Will Learn: Our plan covers key components including:

• Market Analysis: Understand current trends, customer preferences, and competitive dynamics in the hotel market of Kenya.
• Service Offerings: Guidance on developing a diverse range of services tailored to various customer segments, including luxury, mid-range, and budget options.
• Operational Setup: Step-by-step guidance for establishing your hotel’s infrastructure, including facilities, staffing, and guest services.
• Marketing Strategies: Effective methods to promote your hotel and attract guests through digital marketing, partnerships, and promotions.

What’s Included in the Business Plan?

• Executive Summary: A concise overview of your hotel concept, vision, mission, and strategic goals.
• Industry Overview: A detailed analysis of the Kenyan hotel industry, highlighting opportunities, challenges, and growth potential.
• Operational Plan: Comprehensive details on daily operations, staffing requirements, and customer service practices.
• Financial Projections: Detailed financial forecasts, including startup costs, pricing models, and expected revenues over a defined period.
• Risk Management: Strategies for identifying potential risks and implementing measures to mitigate them.

Your Path to Success Starts Here: The Hotel Business Plan PDF – Kenya is your essential roadmap for launching a successful hotel that meets the needs of a diverse clientele.

Download Now! Gain immediate access to our Hotel Business Plan PDF – Kenya and take the first step towards establishing your dream hotel today!

Consider factors like location, target market, and service level when determining the type of hotel.

Startup costs vary based on size and location. Detailed estimates are included in the business plan.

Common amenities include Wi-Fi, dining options, room service, pools, and fitness centers.

Utilize social media, travel websites, and partnerships with local businesses to attract guests.

Invest in staff training and establish clear service standards to enhance the guest experience.

Ensure compliance with local business permits, health regulations, and safety standards.

Challenges include competition, maintaining quality standards, and managing operational costs.

Establish a budget, monitor operational costs, and optimize resource allocation to improve efficiency.

Include target audience analysis, branding, promotional strategies, and online presence.

A business plan guides your operations, helps secure funding, and provides a clear strategy for achieving your goals.

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COULD KING ATEAS HAVE BEEN BURIED IN CHORTOMLYK BARROW?, 2024

The article is devoted to the authors' new approach to the burial complex of the Chortomlyk kurhan as the tomb of King Ateas. It is the most famous Scythian king, who appeared on the pages of history as "long-lived" and as an opponent of King Philip II of Macedonia. Since we know the date of the Macedonian battle with the Scythians and the death of King Ateas, a balanced correlation of narrative sources with archaeological sources allows us to obtain a chronological reference point and opens the way for ordering the kurhans of the elite of the 4th century BC. Since King Ateas lived for almost 90 years, there was a long pause between the construction of the largest kurhans of Scythia. Our key argument, made almost three decades ago, refers to this point. It is based on the fact that there is a significant chronological distance between the second grave (1913) of the Solokh kurhans and the older of the two subsequent kurhans of the kings, Chortomlyk and Oguz. In other words, King Ateas should be buried in the kurhans that were built earlier. The second argument is related to a silver cup with graffiti scratched on the bottom with the presumed name of Ateas. The cup was found in the so-called Northern Tomb of Chortomlyk, discovered in 1985. This is the main entrance pit of the central burial complex. The article provides several evidences in favour of the simultaneity of all Chortomlyk's structures. On the satellite image, two parallel light stripes can be seen to the east of the kurhan. These are likely traces of trenches that formed a type of alley. To the east of the Chortomlyk mound, this alley leaned into a smaller kurhan 1.5 km further away. Dovha Mohyla stood 25.5 meters southwest of Chortomlyk, it was almost 7.4 meters high. In other words, Chortomlyk's mound was built near a probable sanctuary at the top of the Long Grave, so earlier Scythian kurhans were concentrated here. I.Zabelin quoted a local farmers’ recollection that in ancient times a path from Chortomlyk was visible, pointing eastward. It was almost a kilometre long and marked with stones laid in several rows. The constructors of Chortomlyk fit it into the space near the sanctuary and reinforced it with a ceremonial path decorated with stones. In this way, the main axis of the building, oriented from west to east, was even more emphasized, and the following were placed there: a horse on the burial path, the graves of 11 horses and two grooms with them, the central entrance pit, and the guard's burial under the eastern hollow. The chamber of the Northern Tomb also fit into the general scheme of Chortomlyk. In reality, it was the main entrance pit. Unfortunately, the authors of the latest excavations of Chortomlyk did not give due importance to this observation. Although the diary of V. Murzin and R. Rolle notes that at a depth of 2 m near the southern wall of the Northern Tomb a stone plate was found, behind which part of the wall with traces of excavation tools was preserved. A similar situation was noted in Oguz. Using W. Hertz's module, which captured the patterns in the proportions of Chortomlyk's underground structures, we measure the distance between the southern wall and the northern edge of chamber V. This means that the length of the dromos is seven modules. Thus, this figure is not accidental - it is half the distance between the mine of the Central Tomb and the horse tombs. It is hard to believe that the robbers guessed the system of proportions of the kurhan's constructors. Then we have to agree that the traces of tools on the wall were left by the builders of Chortomlyk. Accordingly, we can confidently speak of the second or main entrance pit, which was arranged behind the outer slope of the original kurhan's rampart. If we continue to consider the long dromos as the robbers' move, the question remains unanswered: how did the robbers so accurately get into the middle of the end wall of the entrance pit and into the middle part of the northern wall and the vault of Chamber V? Part of the system "entrance pit - chamber V" were two large cauldrons under the northern wall near the exit from the chamber and one cauldron at the beginning of the dromos in the entrance pit. The cauldrons were not only meant to provide the main deceased and his escort with food in the afterlife, but also act as social markers. In addition, they symbolised the blocking of the exit / entrance to the world of the dead. It is therefore no coincidence that the largest cauldron was damaged. In the mythology and folklore of the peoples of North Asia, such deformed large vessels usually close the entrance to the afterlife. A selection of cauldrons located at the entrances to chambers or in the dromos of other kurhans confirms this observation. Besides, the cauldrons seem rather archaic, which, together with other artefacts (including the hilt of an Achaemenid sword), suggests that the main deceased of Chortomlyk was an elderly man. The determination of the chronological positions of Chortomlyk and Oguz is influenced by the composition of jewellery. The early Chortomlyk complex does not yet contain gold micro-sculptures from the workshop of the South Italian craftsmen from Chersonesus, while they are already present in Oguz. The scale of the funerary structure, the number of dependent dead and sacrificial animals, the nature of the luxurious material accompaniment, including its asynchrony, allow us to consider this monument to be the tomb of the most powerful king of Scythia. We see him as Ateas.

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