So, you have finally decided to take a business leap and start your own hotel. Whether you’re envisaging business travel hotels, comfortable hotels, classy heritage hotels or an elegant boutique, you need to spend a good amount of time researching before making an investment.

　　So, you have finally decided to take a business leap and start your own hotel. Whether you’re envisaging business travel hotels, comfortable hotels, classy heritage hotels or an elegant boutique, you need to spend a good amount of time researching before making an investment. The key step to initiate this process is to write a convincing hotel business plan that has a proper layout and ingenious strategy. A business plan should also have an entire analysis of the financials as well as long-term productivity. We have created a guideline including vital points for your hotel business plan.

　　Synopsis

　　It’s a must to create a synopsis outlining the company description. You should include the following things.

　　Business Aim/Purpose: Mention the main aim behind establishing your business.

　　Business Details/Formation: Include the business details and formation in brief.

　　Hotel Location: This is very important to mention. The hotel location is the first thing you need to brief your investors and audience.

　　Directors: Your directors will decide the future plans and will supervise the management.

　　Team Members and HR: The entire team and the HR professionals also need to be mentioned.

　　Strategic Position and Alliance: Strategic Positioning is the overall approach to any particular condition, and Strategic Alliance is a relationship between two parties to follow the set rules and regulations in order to meet the company goals. A brief overview of both of these should be included in the synopsis.

　　Company Vision: The vision of the company’s future is a very important requirement for the synopsis.

　　Funding: You cannot move a single step ahead if you don’t have the required funding. Funding is crucial and should be mentioned in detail under the synopsis so that investors can get an overview of the company.

　　Historic Research

　　Before creating a business plan for your hotel, you need to carry out historic research that depicts the broad view of the hotel.

　　The below things fall under historic research

　　The Market Position: Success depends on how well the market position analysis is researched. It should be done thoroughly.

　　Historic Income Statement: Historic income statements are necessary to get the hotel license and the permit.

　　Historic Balance Sheets: Historic balance sheets are important for analyzing the growth and development of the company and can be helpful when the company is audited.

　　Company Research

　　Under this section you need to add information on the present industry trends and the present state of the market.

　　Present Company Trends: This is really necessary to be successful. If you want to grow, you need to understand the market and its trends. You need to be updated about everything that’s in the news and on the front page.

　　Present State of the Market: Market research is critical to making a business plan. If you create this, investors will show interest in your business. They will be 100% sure that you are aware of market fluctuation, and their money won’t be at risk.

　　Customer Analysis

　　Who are your customers and why should they choose your hotel? You need to answer this question under the customer analysis.

　　Detail Customer Analysis: The detailed customer analysis should include the target market information, socio-economic, behavioral segmentation, geographic and psychographic details.

　　Type of Customers: You also need to analyze the type of customers you will receive at your hotel and how you will meet their needs and desires. This should be analyzed based on the location, amenities and the services provided by the hotel.

　　Competitive Analysis

　　A local study of the hotels around you is important to decide the success ratio of your hotel planning and location. Under the competitive analysis comes the SWOT analysis.

　　SWOT Analysis: The SWOT analysis is a planning method which involves evaluating Strength, Weakness, Opportunity and Threats, which are involved in any business enterprise. This analysis is very helpful in understanding the internal and external factors that favor and disfavor the objective plan.

　　PEST Analysis: Pest analysis implies to Political, Economic, Social and Technological analysis. These macro-environmental factors are needed in the scanning component for management. This was further expanded to PESTEL or PESTLE by adding legal and environmental factors. The PEST analysis is a tool for understanding the growth or decline of the market, potential, position of the business and the direction for operations.