A solid hotel business plan should address several key aspects.
Here are the 10 key and essential points to consider when drawing up your business plan:
1.- Market Analysis
Conduct a comprehensive study of the hotel industry in your location. Examine the supply and demand of accommodation, identify market segments and understand trends and changes in consumer behaviour.
And of course, don’t forget to analyse your direct and indirect competitors. Examine their strengths and weaknesses, as well as the strategies they employ. Identify what they do well and areas where you could differentiate yourself.
2.- Value and positioning proposal
You have to clearly define what makes your hotel unique. Ask yourself: What added value will you offer your guests? What unique experiences or services will you provide?
Also define your target audience: Are you targeting business travellers, tourists, families or some other specific group? Make sure you adapt your value proposition to the needs and expectations of your market segment.
3.- Organisational Structure
Draw up an outline of the hierarchical structure of your hotel, specifying roles and responsibilities. From top management to housekeeping staff, everyone should have defined functions.
Describe the culture you want to foster in your hotel: is it a customer-centric, innovation-oriented or operational efficiency-focused environment?
The structure is not going to be the same in the Meliá chain as it is in a small beach hotel.
4.- Marketing and Sales Plan
Implement marketing strategies that align with your value and positioning proposal. This could include advertising campaigns, social media presence, local collaborations and content strategies.
Define how you plan to sell your rooms and services. This may include pricing tactics, promotional packages and loyalty programmes.
5.- Product Description and Services
Detail the types of rooms you will offer, including sizes, amenities and associated rates.
As well as, list the facilities and services you will provide, such as restaurants, bars, gyms, pools, spa, etc. Describe how these will complement the guest experience.
To do this, establish clear policies, such as cancellation policies, check-in/check-out, and any important regulations that affect guests.
6.- SWOT Analysis
List the internal characteristics that give you an advantage over the competition. This may include strategic location, modern facilities, trained staff, etc. Also identify external factors that could benefit your hotel. These could be local events, travel trends, partnership agreements, among others.
Of course, recognise your weaknesses. Recognise internal areas that need improvement, such as possible lack of brand recognition, outdated or insufficient infrastructure, etc.
And finally, analyse external factors that could pose challenges, such as strong competition, unexpected events, changes in the economy, etc.
7.- Financial Plan
First of all project your revenues considering room rates, expected occupancy and other services offered.
Next estimate operating expenses, including salaries, supplies, utilities, maintenance and other recurring costs.
Then develop a projected cash flow to understand how revenues and expenses will be managed over time.
And finally identify when your hotel will start generating profits and how many rooms you need to sell to cover costs.
8.- Risk Management Strategies
List the possible risks that could affect your hotel, such as economic crises, natural disasters, staffing problems, etc.
Do not forget to develop strategies to mitigate the identified risks. This should include diversification of services, investment in security systems and implementation of contingency plans.
9.- Implementation Plan and Timeline
Specify the concrete actions you will take to implement the strategies outlined in your business plan.
To do this, assign clear responsibilities to team members for each action. In addition, develop a timeline that shows when the various strategies and actions will be implemented. This will make it easier to monitor progress over time.
10.- Innovation and Technology
In the last key point, describe how your hotel plans to incorporate innovative technologies to enhance the guest experience and optimise internal operations. This will include advanced hotel management systems, process automation, or the implementation of technology solutions that improve efficiency.
Not to mention establishing a focus on continuous improvement by adopting new technologies and constantly updating systems to keep up with market trends and expectations.
That’s why this technological innovation is a powerful tool to differentiate your hotel and deliver modern guest experiences.
By addressing these 10 key points, you will be well on your way to creating a comprehensive and effective business plan for your hotel establishment.
Remember that a business plan is a living document and should be adjusted as your business evolves and market conditions change. In case you need advice IHCS is here to offer it.