There is no question that the hotel business is complex. Beyond the expected challenges of choosing the ideal location, finding qualified staff, and determining the types of services that must be offered, there is also the issue of the how to deal with the intense competition any new hotel will face. Competition can come from local and national hotel and motel chains, bed and breakfasts, and even hostels should the business decide to go overseas. Social media has intensified the hospitality competitive environment because even a handful of bad online reviews can negatively impact the ability to attract customers. If the business owners intend on using the hotel business plan to attract investors, they will need to ensure the market analysis is thorough and realistic.
Investors will typically look for information like the following:
• Hotel category, i.e. 3-star, 4-star, luxury, resort, etc.
• Customer profiles, i.e. tourists, business travelers, families with children, conference attendees, and where they originate from (national, regional, local, international), etc.
• Location analysis, including traffic patterns, area development plans, customer market growth projections, land availability, and so on
• Hotel layout and facilities, which can vary widely and describes guest rooms, meeting rooms and conference room space, restaurant, banquet facilities, exhibition space, spa, etc.
• Cooperative alliances and relationships for business building, like tour operators, travel agencies, hospitality associations, Chambers of Commerce, and so on.
• Human Resources planning, i.e. meeting staffing needs, compensation plan, organizational structure, and so on
• Marketing and sales plan, including website, sales team, convention and meeting consultant, television advertising, direct mailing of brochures, promotions, etc.
• Construction and startup costs, type of investors sought, financing plan, and other financial information
The hotel branding has a lot to do with future success
Business planning in the hospitality business considers facilities, price, image and service, and all of these contribute to the brand image. Is the hotel ideal for families and includes an activity and game room for children, pet friendly space, infant amenities, playground, affordable grill food, and so on? A hotel that intends on accommodating mostly young couples with children versus one targeting the senior market or business travelers is going to be structured quite differently in terms of layout, accommodations, special services, and other amenities.
For assistance with hotel business plans requiring in-depth analysis and presentations that attract major investors, contact OGS Capital. The expert consultants have a depth and breadth of experience that includes fine-tuning any hotel development business plan to ensure it serves as a quality road map for success in all directions.
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