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Hotel Business Plan Template [2020 Updated]

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I. Executive Summary


You can download our Hotel Business Plan Template (including a full, customizable financial model) to your computer here.

Business Overview

[Company Name], located at [insert location here] is a new, small, business-class hotel focused on providing rooms with a clean and modern character that is attractive to business visitors to the area. The Company’s rooms will feature modern furniture, high-end technology and modern accessories.

Services

[Company Name]will offer all of the standard business hotel services including daily room cleaning, free local calls, cable TV, a free wireless network and various other amenities. Additionally, the hotel will include a conference room seating up to 15 for meetings with conference call landlines, wireless internet, and a large flat screen.

Customer Focus

[Company Name]will primarily serve business travelers who seek comfort, necessary amenities, and simplicity of services.

  • 50,000 business visitors to the area in 2008 according to Madison Office of Tourism
  • Typical business traveler is male (77%) and in a professional, managerial, or technical occupation (53%) according to National Household Survey of Business Travel
  • 55% between ages of 40 and 49, 16% 18 to 29, 18% 50-59, 10% 60+according to National Household Survey of Business Travel
  • Average household income of $85,900 according to the American Hotel & Lodging Association Lodging Industry Profile

In addition to this business travel market, the Company will likely see some leisure travel and international guests.

Management Team

[Company Name]is led by [Founder’s Name] who has been in the hotelindustry for 20 years. While [Founder] has never developed a hotel from the ground up, he has worked in hotel industrymost recently as a general manager,and has held various different positions in the management chain over the last 20 years. As such [Founder] has an in-depth knowledge of the hotel business including the operations side (e.g., running day-to-day operations) and the business management side (e.g., staffing, marketing, etc.).

Success Factors

[Company Name] is uniquely qualified to succeed due to the following reasons:

  • There is currently no business-class hotel in the community we are entering. In addition, we have surveyed the major corporations with local offices and determined that they have frequent visitors who would use our hotel location when launched.
  • Our location is central to the downtown, airport, and corporate district of the city.
  • The management team has a track record of success in the hotel industry.
  • XYZ and ABC corporations announced plans to create new corporate centers in the city over the next two years and existing hotels will not be able to handle the increased capacity of business visitors traveling to the city to visit these companies.

Financial Highlights

[Company Name] is currently seeking $3,000,000 to launch.Specifically, these funds will be used as follows:

  • Hotel design/build: $2,500,000
  • Working capital: $500,000 to pay for marketing, salaries, and land costs until [Company Name] reaches break-even.

Topline projections over the next five years are as follows:

 Year 1Year 2Year 3Year 4Year 5
Revenue$1,980,125 $2,832,031 $3,409,160 $3,783,447 $4,100,713
Total Expenses$1,375,530 $1,561,763 $1,866,977 $2,027,436 $2,107,349
EBITDA$604,595 $1,270,268 $152,183 $1,756,011 $1,993,364
Depreciation$372,760 $372,760 $372,760 $372,760 $372,760
EBIT$231,835 $897,508 $1,169,423 $1,383,251 $1,620,604
Interest$164,782 $144,184 $123,586 $102,988 $82,391
PreTax Income$67,054 $753,324 $1,045,837 $1,280,263 $1,538,213
Income Tax Expense$23,469 $263,663 $366,043 $448,092 $538,375
Net Income$43,585 $489,661 $679,794 $832,171 $999,839
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