Resort Business Plan Template
If you want to start a resort or expand your resort business, you need a business plan.
The following Resort business plan template gives you the key elements to include in a winning Resort business plan. It can be used to start an all inclusive resort, a ski resort, a health spa resort, an eco tourism resort, or any other type of resort business.
Resort Business Plan Sample
I. Executive Summary
Business Overview
[Company Name], located in [insert location here] is a new resort company that focuses on providing guests with personalized customer service and modern, high-tech amenities. The resort is located in an idyllic location where guests can experience a tranquil nature walk or a rigorous river rafting adventure. [Company Name] aims to be the ultimate choice for customers looking for exceptional service, high-tech amenities, and picturesque views.
Products Served
[Company Name] will provide a full suite of resort amenities, all featuring the latest digital technology for streamlined customer service and convenience.
Amenities include the following:
- Hotel
- Restaurant
- Bar
- Cafe
- Nightclub
- Spa
- Retail Shops
- Tennis Courts
- Gym
- Swimming Pool
- Sauna
- Hiking & Nature Tours
- River Rafting
Customer Focus
[Company Name]’s potential customers include tourists traveling to [Location] from nearby countries. A secondary target will be local residents looking for a unique stay-cation experience. The demographics of these customers are as follows:
- An estimated 50,000 tourists travel to [Location] each year
- Average income of $46,000
- 35% are Gen Z, 40% are millennials, and 25% are baby boomers
- 42% are in management or professional occupations
- Median age: 35 years
Management Team
[Company Name] is led by [Founder’s Name] who has been in the resort industry for over 20 years. While [Founder] has never developed a resort from the ground up, he has worked most recently as a general manager of a large resort, and has held various management level positions in the industry over the years. [Founder] has a Master’s degree in Hospitality Management, and will use his expertise and experience to start his own resort.
Success Factors
[Company Name] is uniquely qualified to succeed due to the following reasons:
- There is currently no full-scale resort in the area, although it is an in-demand tourist destination. In addition, the founder has surveyed the local businesses and determined that they have frequent tourists visiting who would use the company’s resort when launched.
- The location is close to major highways, local attractions, and the airport.
- The management team has a track record of success in the resort industry.
- XYZ and ABC corporations announced plans to create new attractions in the city over the next two years and existing resorts will not be able to handle the increased capacity of visitors traveling to the city to visit these attractions.
Financial Highlights
[Company Name] is currently seeking $7,000,000 to launch.
Specifically, these funds will be used as follows:
- Resort design/build: $6,500,000
- Working capital: $500,000 to pay for marketing, salaries, and land costs until [Company Name] reaches break-even
Top line projections over the next five years are as follows:
| Financial Summary | FY 1 | FY 2 | FY 3 | FY 4 | FY 5 |
|---|---|---|---|---|---|
| Revenue | $560,401 | $782,152 | $1,069,331 | $1,379,434 | $1,699,644 |
| Total Expenses | $328,233 | $391,429 | $552,149 | $696,577 | $776,687 |
| EBITDA | $232,168 | $390,722 | $517,182 | $682,858 | $922,956 |
| Depreciation | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 |
| EBIT | $225,168 | $383,722 | $510,182 | $675,858 | $915,956 |
| Interest | $6,016 | $5,264 | $4,512 | $3,760 | $3,008 |
| Pre Tax Income | $219,152 | $378,458 | $505,670 | $672,098 | $912,948 |
| Income Tax Expense | $76,703 | $132,460 | $176,985 | $235,234 | $319,532 |
| Net Income | $142,449 | $245,998 | $328,686 | $436,864 | $593,416 |
| Net Profit Margin | 25% | 31% | 31% | 32% | 35% |
II. Company Overview
Who is [Company Name]?
[Company Name], located in [Location] is a new resort company that focuses on providing guests with personalized customer service and modern, high-tech amenities. The resort is located in an idyllic location that is close to major highways, local attractions, and an airport. Guests of the resort can experience a tranquil nature walk or a rigorous river rafting adventure. [Company Name] aims to be the ultimate choice for customers looking for exceptional service, high-tech amenities, and picturesque views.
[Company Name] was founded by [Founder’s Name], an experienced resort manager who has been working in various management-level positions in the industry for over 20 years. [Founder] has a Master’s degree in Hospitality Management, and will use his expertise and experience to start his own resort. [Founder] discovered the ideal location for his resort during a recent trip to [Location]. When he saw the opportunity for a full-scale resort in a growing tourist destination, he decided to start researching what it would take to build his company here.
As [Founder] began researching what it would take to create his own resort company, he did a thorough analysis on the costs, market, demographics, and competition. [Founder] has compiled enough information to develop his business plan in order to approach investors.
[Company Name]’s History
Once his market analysis was complete, [Founder’s Name] incorporated [Company Name] as an S-Corporation on [date of incorporation].
The resort development operations are currently being run out of [Founder’s Name] home office. Once the land rights have been purchased, operations will be run from an on-site location to ensure that every detail is being thought out and completed.
Since incorporation, the Company has achieved the following milestones:
- Found site location and signed the land deed purchasing rights to the land
- Developed the company’s name, logo, and website located at [website]
- Hired an architecture firm to create a blueprint of the resort
- Started taking bids from construction crews and electrical engineering firms
- Determined equipment leasing and financing requirements
- Began recruiting key employees with experience in the resort industry
[Company Name]’s Products/Services
Below are [Company Name]’s product offerings:
The state-of-the-art resort will offer guests the opportunity to take advantage of the following amenities:
- Hotel
- Restaurant
- Bar
- Cafe
- Nightclub
- Spa
- Retail Shops
- Tennis Courts
- Gym
- Swimming Pool
- Sauna
- Hiking & Nature Tours
- River Rafting
III. Industry Analysis
The global hotel and resort industry is valued at approximately $1.06T with more than 700,000 hotels and resorts operating worldwide. This industry includes operators of hotel and resort accomodations, restaurants and meal service, and franchises. Primary industry activities include operating holiday resorts and hotels with private facilities.
Demand determinants for the hotel and resort industry include economic conditions, disposable income levels, and consumer preferences regarding hospitality and leisure spending. Over the past few years consumer preferences have been shifting significantly. Customers are now looking for more personalized service, business-leisure opportunities, health and wellness accommodations, and digital guest experiences.
The hotel and resort industry is highly fragmented with intense competition from major players to single-location operators. Small resort businesses can compete in a variety of ways, however. Industry operators that offer a unique niche, affordable prices, in-demand location, and amenities that appeal to the modern consumer can run a competitive resort business.
IV. Customer Analysis
Demographic Profile of Target Market
[Company Name] will serve the tourists visiting [company location] and its surrounding areas as well as locals who want a stay-cation experience.
The community of [company location] is quickly becoming a popular tourist destination with people coming in from nearby countries to experience the new attractions the region has to offer. Additionally, there are many local residents looking for a new recreating experience and a large percentage of the population has expressed interest in a stay-cation option.
Customer Segmentation
The Company will primarily target the following three customer segments:
- Leisure Travel Market: Travelers to [Insert Area or City] tourist attractions such as the Museum of Fine Art and the Annual Film Festival, as well as visitors to social events such as weddings.
- International Tourists: Last year, there were over 903 million international tourist arrivals worldwide, with a growth of 6.6%. International tourist receipts were $856 billion.
- Local Residents: There are a total of 10,000 local residents in [Area]. Approximately 43% are actively involved in many of the recreational activities the resort will offer such as hiking and river rafting.
V. Competitive Analysis
Direct & Indirect Competitors
The company’s competition are other resort companies.
River Springs
River Springs is a hotel in [location]. River Springs is a leading hotel and has been in business for over 40 years. The hotel offers a wide array of services and amenities that you typically find at a hotel. River Springs offers luxury accommodations, river rafting tours, and a five-star restaurant and lounge. River Springs is the current most popular choice for tourists in the area because of its proximity to the airport and local attractions such as the Fine Art Museum and movie theater.
This hotel does not have full-service resort amenities, however. Nor does it have the latest digital technology for any of its services or room accommodations.
Super Adventure Resort
Super Adventure Resort is the closest resort, located approximately 50 miles outside of [Area or City]. This resort specializes in providing wildlife adventure tours. The property has a variety of amenities including a hotel, spa, pool, restaurant, bar, gift shop, and its primary source of entertainment; the adventure tours.
Super Adventure Resort is far from any other local attractions, the airport, or any other modern conveniences such as grocery stores or gas stations, making it an out-of-the-way getaway, but not conveniently located.
Sunny Falls Hotel
Sunny Falls Hotel is also a local hotel that has a few resort-style amenities such as a spa, salon, and fitness center in addition to its traditional hotel accommodations, restaurants, bar, lounge, pool, tennis courts, and free transportation to and from the airport. Sunny Falls Hotel is located close to a variety of local attractions and scenic overlooks. Guests can go hiking or bicycling on trails nearby or book a river rafting tour with a hotel concierge.
While Sunny Falls Hotel has many appealing accommodations, it lacks the modern technology, full-service amenities, and additional attractions [Company Name] will provide.
Competitive Advantage
[Company Name] enjoys several advantages over other resort companies. Those advantages include:
- Location: [Company Name]’s location gives the best access to the airport, local attractions, shopping district, and restaurants. The Company also offers adequate parking making it easy for customers to relax upon arrival.
- High-Tech Amenities: The resort will be full of high-tech amenities for everything from contactless check-in and payment systems, to smart fixtures in the hotel rooms and a high-tech bar and nightclub.
- Management: The management team has years of resort industry experience that allows the Company to market and serve customers in the same manner as its 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 to build the brand awareness of the resort.
VI. Marketing Plan
[Company Name] seeks to position itself as a source of exceptional service, high-tech amenities, and unique attractions in the resort industry. Consumers can expect to receive the best resort experience catered by experienced hospitality professionals.
The [Company Name] Brand
The [Company Name] brand will focus on the Company’s unique value proposition:
- Convenient location close to local attractions, major highways, and the airport
- Modern, high-tech amenities
- Exceptional personalized customer service
Promotions Strategy
[Company Name] expects its target market to be tourists visiting [Location]. The Company’s promotion strategy to reach these individuals includes:
Social Media
[Company Name] will invest heavily in a social media advertising campaign. The brand manager will create the Company’s social media accounts and invest in ads on all social media platforms. It will use targeted marketing to appeal to the target demographics.
Website/SEO
[Company Name] will invest heavily in developing a professional website that displays all of the features and benefits of the resort. It will also invest heavily in SEO so that the brand’s website will appear at the top of search engine results.
Phone Prospecting
[Company Name] will assign salespeople to contact area corporations to arrange for bulk corporate rates for their visitors depending on the volume of visitors they will have.
Public Relations
The Company will contact all local and regional area newspapers and television stations to tell them about the hotel opening and unique value proposition of [Company Name].
Advertising
[Company Name] will initially advertise on travel websites, which are frequently being used to book travel due to their ease of use and reviews.
Ongoing Customer Communications
[Company Name] will publish a monthly email newsletter to tell new and past customers about promotions and events.
Pre-Opening Events
Before opening the resort, [Company Name] will organize pre-opening events designed for prospective international customers, local customers, and press contacts. These events will create buzz and awareness for [Company Name] in the area.
Pricing Strategy
[Company Name]’s pricing will fluctuate based on the season and occupancy percentages using a computerized yield management system, but pricing will always place the hotel in the mid-range, below luxury offerings, and above hotels and motels in the area that cannot be billed as a resort. Customers will feel they receive great value when they choose the resort for their vacation.
VII. Operations Plan
Functional Roles
In order to execute on [Company Name]’s business model, the Company needs to perform many functions including the following:
Administrative Functions
- General & Administrative functions including legal, marketing, bookkeeping, etc.
- Sourcing and storing supplies for the various resort amenities
- Hiring and training staff
Service Functions
- Check-in focused on customer service
- Janitor/maintenance personnel to keep the resort clean and in working order
- Staff to work in the hotel, restaurant, bar, nightclub, etc.
- Resort concierge service
Milestones
The following are a series of steps that lead to our vision of long-term success. [Company Name] expects to achieve the following milestones in the following [xyz] months:
| Date | Milestone |
|---|---|
| [Date 1] | Finalize lease agreement |
| [Date 2] | Design and build out [Company Name] |
| [Date 3] | Hire and train initial staff |
| [Date 4] | Kickoff of promotional campaign |
| [Date 5] | Launch [Company Name] |
| [Date 6] | Reach break-even |
The following are a series of steps that lead to the Company’s vision of long-term success. [Company Name] expects to achieve the following milestones in the following [xyz] months:
VIII. Management Team
Management Team Members
[Company Name] is led by [Founder’s Name] who has been in the resort industry for over 20 years. While [Founder] has never developed a resort from the ground up, he has worked most recently as a general manager of a large resort, and has held various management level positions in the industry. [Founder] has a Master’s degree in Hospitality Management, and will use his expertise and experience to start his own resort.
Hiring Plan
[Founder] will serve as the Owner and President of [Company Name]. In order to launch, he needs to hire the following personnel:
Housekeeping staff for the hotel (5 to start)
- Resort Managers (1 for each section of the resort – hotel, restaurant, bar, nightclub, etc.) who will be responsible for the day to day operations of their designated area
- Assistant Managers (will manage resort operations for their designated area on nights and weekends)
- Service Staff (4 full-time to work check-in and guest services – allowing for at least 1 staff person to be on duty at all times as well as additional staff for each of the resort’s features)
- Sales Staff (2 full-time) will target and book guests
- Legal, Bookkeeping, and other Administrative functions (3 staff)
- Brand manager: 1 full-time employee who will be responsible for developing and launching the brand; manage the website, and social media accounts.
- Janitorial and Maintenance staff: 5 employees who will be responsible for keeping the resort in tip-top condition.
IX. Financial Plan
Revenue and Cost Drivers
[Company Name]’s revenues will come primarily from booking fees for the resort’s many amenities. The company will charge varying rates per night based on demand and seasonality. [Company Name] will also sell multiple packages to appeal to a range of guests, such as a health and wellness package, nature adventure package, and stay-cation package.
The land purchase, equipment, supplies, and labor expenses will be the key cost drivers of [Company Name]. The major cost drivers for the company’s operation will consist of:
- Salaries
- Resort maintenance
- Business Insurance
- Mortgage on land and utilities
- Taxes
Ongoing marketing expenditures are also notable cost drivers for [Company Name].
Capital Requirements and Use of Funds
[Company Name] is currently seeking $7,000,000 of debt capital to open its resort. The capital will be used for funding capital expenditures and resort build-out, hiring initial employees, marketing and branding expenses, and working capital.
Specifically, these funds will be used as follows:
- Resort design/build: $6,500,000
- Working capital: $500,000 to pay for marketing, salaries, and land costs until [Company Name] reaches break-even
Key Assumptions
The following table reflects the key revenue and cost assumptions made in the financial model:
| Number of available rooms | Per location |
|---|---|
| Year 1 | 20 |
| Year 2 | 20 |
| Year 3 | 20 |
| Year 4 | 20 |
| Year 5 | 20 |
| Average daily rate | $155 |
| Average Daily rate growth | 3% |
| Annual Lease ( per location) | $25,000 |
| Yearly Lease Increase % | 2.50% |
5 Year Annual Income Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Product/Service A | $151,200 | $333,396 | $367,569 | $405,245 | $446,783 | |
| Product/Service B | $100,800 | $222,264 | $245,046 | $270,163 | $297,855 | |
| Total Revenues | $252,000 | $555,660 | $612,615 | $675,408 | $744,638 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $57,960 | $122,245 | $122,523 | $128,328 | $134,035 | |
| Lease | $60,000 | $61,500 | $63,038 | $64,613 | $66,229 | |
| Marketing | $20,000 | $25,000 | $25,000 | $25,000 | $25,000 | |
| Salaries | $133,890 | $204,030 | $224,943 | $236,190 | $248,000 | |
| Other Expenses | $3,500 | $4,000 | $4,500 | $5,000 | $5,500 | |
| Total Expenses & Costs | $271,850 | $412,775 | $435,504 | $454,131 | $473,263 | |
| EBITDA | ($19,850) | $142,885 | $177,112 | $221,277 | $271,374 | |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 | |
| EBIT | ($56,810) | $105,925 | $140,152 | $184,317 | $234,414 | |
| Interest | $23,621 | $20,668 | $17,716 | $14,763 | $11,810 | |
| PRETAX INCOME | ($80,431) | $85,257 | $122,436 | $169,554 | $222,604 | |
| Net Operating Loss | ($80,431) | ($80,431) | $0 | $0 | $0 | |
| Income Tax Expense | $0 | $1,689 | $42,853 | $59,344 | $77,911 | |
| NET INCOME | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 | |
| Net Profit Margin (%) | - | 15.00% | 13.00% | 16.30% | 19.40% |
5 Year Annual Balance Sheet
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $21,000 | $23,153 | $25,526 | $28,142 | $31,027 | |
| Total Current Assets | $37,710 | $113,340 | $184,482 | $286,712 | $423,416 | |
| Fixed assets | $246,450 | $246,450 | $246,450 | $246,450 | $246,450 | |
| Depreciation | $36,960 | $73,920 | $110,880 | $147,840 | $184,800 | |
| Net fixed assets | $209,490 | $172,530 | $135,570 | $98,610 | $61,650 | |
| TOTAL ASSETS | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $317,971 | $272,546 | $227,122 | $181,698 | $136,273 | |
| Accounts payable | $9,660 | $10,187 | $10,210 | $10,694 | $11,170 | |
| Total Liabilities | $327,631 | $282,733 | $237,332 | $192,391 | $147,443 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| Total Equity | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| TOTAL LIABILITIES & EQUITY | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 |
5 Year Annual Cash Flow Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | |||||
| Net Income (Loss) | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 |
| Change in working capital | ($11,340) | ($1,625) | ($2,350) | ($2,133) | ($2,409) |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 |
| Net Cash Flow from Operations | ($54,811) | $118,902 | $114,193 | $145,037 | $179,244 |
| CASH FLOW FROM INVESTMENTS | |||||
| Investment | ($246,450) | $0 | $0 | $0 | $0 |
| Net Cash Flow from Investments | ($246,450) | $0 | $0 | $0 | $0 |
| CASH FLOW FROM FINANCING | |||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 |
| Cash from debt | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| Net Cash Flow from Financing | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| SUMMARY | |||||
| Net Cash Flow | $16,710 | $73,478 | $68,769 | $99,613 | $133,819 |
| Cash at Beginning of Period | $0 | $16,710 | $90,188 | $158,957 | $258,570 |
| Cash at End of Period | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 |
