Hotel Business Plan Template [Updated 2024]

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V.Competitive Analysis

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

Direct & Indirect Competitors

The following hotels are located within a 10 mile radius of [Company Name], thus providing either direct or indirect competition for customer acquisition:

The Madison Concourse Hotel

The Madison Concourse Hotel is Madison’s leading hotel and has been in business for 20 years. The hotel offers a wide array of services and amenities that you typically find at a hotel.

The Madison Concourse offers luxury amenities, many of which are not necessary for business travelers and charges a high price for those amenities ($200-300 per night). Furthermore, the hotel does not offer a small conference room, only larger meeting spaces. Additionally, this hotel does not offer wireless internet in sleeping rooms.

The Edgewater Hotel

The Edgewater Hotel has been in business for 15 years. The Edgewater Hotel offers a variety of services and amenities all typical of the hotel and hospitality industry.

However, [Company Name] has several advantages over The Breakers Hotel including:

  • Edgewater is priced at a premium because of its waterfront location
  • Edgewater’s rooms are aging and in need of renovation
  • Edgewater does not have studio apartment options for long-term stay
  • Edgewater does not have meeting space

Doubletree Hotel Madison

Doubletree Hotel Madison is located four miles to the East of our intended location. Doubletree Hotel Madison has been in business for the past 10 years and is part of the Hilton family of hotels, allowing it to use centralized booking with Hilton and the Hilton loyalty points system.

[Company Name] has several advantages over Doubletree Hotel Madison including:

  • Doubletree Hotel Madison does not have a central downtown location
  • Despite the rooms being more modern than most existing, Doubletree Hotel Madison is still behind the time with no LCD TVs or Wireless Network.

While we expect that Doubletree Hotel Madison will continue to thrive based on the Hilton loyalty program, we expect that more and more customers will frequent [Company Name] based on the value offered for a similar price and more central location.

Competitive Pricing

Madison ConcourseEdgewater HotelDoubletree
King Room$150-$200$200-$225$235-$265
Executive suite$250-$325$375-$400$325-$400
Family Suite$350-$425$400-$475$425-$500

Competitive Advantage

[Company Name] enjoys several advantages over its competitors. These advantages include:

  • Location: [Company Name]’s location in the downtown area, gives the best access to the airport, corporate center, downtown conference centers, and restaurants. The Company also offers adequate parking making it easy for customers to relax upon arrival.
  • Business Amenities: The small conference room allowing visitors to meet within the hotel, will be highly valued by some groups. Wi-fi throughout the hotel will make working remotely simple for business visitors.
  • Management: Our management team has years of business and marketing experience that allows us to market and serve customers in the same manner as our most sophisticated competitors.
  • Relationships: Having visited the community for a number of years, [Founder’s Name] knows all of the local leaders, newspapers and other influences. As such, it will be relatively easy for us to build the brand and awareness of the hotel.
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