Entrepreneurs who write formal business plans are 16% more likely to achieve viability. With 23.2% of businesses failing within the first year, improving your chances of success — by any percentage — just makes good business sense.
There are many important components of a hotel business plan — and many ways that technology gives your property a competitive edge. Let’s start off by exploring why you need a hotel business plan.
A business plan isn't just for attracting investors (though it's great for that, too). It outlines every aspect of your hotel's development and operation, increasing the likelihood of a successful launch and long-term profitability.
Writing a hotel business plan provides the following benefits:
Ready to get your thoughts down on paper? Here’s what a business plan for starting a hotel should include.
Knowing your market will help you make better business decisions. This includes what amenities to offer, what software to invest in and even how to promote your property.
Here’s what a market analysis includes:
Your unique value proposition (UVP) is the heart of your hotel’s identity. Essentially, it’s what will make guests choose your hotel over competitors.
Maybe your hotel is just steps away from local landmarks, culinary hotspots and public transportation. Or perhaps you’ll have the latest tech, like digital hotel keys, chatbots and virtual reality room tours.
Whatever you decide, your UVP should reflect the value guests will derive from your hotel. Whether your collateral highlights sustainability efforts, luxury offerings or something else unique, here's how to make a compelling UVP:
To make sure your business strategy is aligned, reference your value proposition regularly and include an actionable strategy of how you’ll make it come to life.
Financial projections help you understand if your business plan is realistic. But they also map out how much financing you’ll need and improve your chances of securing funding.
Your hotel business's financial plan should include:
Pro tip: Learn how to create a budget for a hotel business plan, what types of tech to invest in and how to calculate ROI by reading our Hotel Tech Budgeting Playbook.
How will you get heads in beds? Outline the following in your business plan:
Pro tip: Plan for profitability — and wow investors — by including strategies to invest in hotel management software in your business plan. For example, automating upselling with Canary Technologies increases your ancillary revenue by up to 250%.
Your business plan should also include high-level details of your hotel’s day-to-day operations. There’s no need to get too in-depth, but a few things to include are:
Pro tip: Consider how AI can streamline your operations. Tools like Canary AI can handle guest inquiries 24/7, freeing up your staff for more high-value tasks. This leads to faster response times and higher guest satisfaction.
Detailing how your hotel will reduce its environmental impact can impress investors — and attract more guests. Eighty percent of people say traveling more sustainably is important to them, so becoming a green hotel can be a great selling point to highlight in your business plan and beyond.
Some possible initiatives include digital guest management solutions that completely eliminate paper forms and folios. Digital key access gets rid of plastic keys and is another easy way to significantly increase your hotel’s sustainability.
A few things to highlight in your sustainability plans include your plans for implementing the following:
Did you know? A 250-room hotel could save $36,500 per year and eliminate 73,000 plastic keys by investing in contactless check-in/out technologies. Learn more in our Ultimate Guide to Sustainability in Hospitality.
It’s easy to get bogged down in the day-to-day details of your business plan. But it’s essential to keep your eye on the big picture.
Technology should be a core part of your strategy. After all, the right tech investments dramatically improve everything from operational efficiency to guest satisfaction — and substantially increase revenue streams.
Whether it’s AI messaging or mobile check-in solutions (or both), a tech-forward approach is essential for staying competitive long after your hotel’s opening day.
Set your hotel up for success by learning how Canary Technologies can turn your business plan into a thriving hotel. Schedule a demo today.
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