Are you about starting a hotel and hospitality business? If YES, here is a complete sample hotel business plan template & feasibility report you can use for FREE. Okay, so we have considered all the requirements for starting a hotel business. We also took it further by analyzing and drafting a sample hotel marketing plan template backed up by actionable guerrilla marketing ideas for hotel businesses. So let’s proceed to the business planning section.

All over the world, the hospitality business is being seen as a very serious trade and the reason for this cannot be farfetched. The reason the hospitality business – especially hotel business is being taken seriously is because of its relationship with the tourism industry. Starting a hotel business could eventually be one of the best things to attain for yourself. This is because of the lucrative nature and the prosperity involved in this industry.

Every day foreigners, as well as local migrants and business people travel from one point or the other and the option they are faced with is staying in hotels. It is pertinent to note that there are different categories of hotels, like the 5 star, 4 star or even the 3 star hotels. One of the essential things that is unique to each category of hotel, are the facilities that make up each.

Whatever type of hotel category you may have is in view, there is always the most important step to take in making your business stand out, as well as succeed in the long run. What can this be? Well, that is the hurdle of writing a business plan. You too have the wherewithal to do so, as a well put together business plan is available to you below.

A Sample Hotel Business Plan Template

1. Industry Overview

The hospitality industry has been in existence from time immemorial and it is still waxing strong simply because people can’t do away with the services they offer. When you talk about a hotel, you are talking about an establishment that provides lodging for guest / travelers, tourist, visitor et al, on a short-term basis with a fee.

When people lodge in hotels, they have the options of subscribing to other services the hotel offers; services like feeding, drinks, laundry, fitness center, swimming pool, conference room and business room, amongst others.

As a matter of fact, the facilities provided by some hotels may range from a basic bed and storage wardrobe, to luxury features such as en-suite bathrooms, mini parlor et al. It is the norm for big hotels to provide additional guest facilities like swimming pool, conference center, business center, childcare, self-service laundry, fitness center and social function services.

In some countries, hotels are required by law to serve food and drinks to all their clients that lodged in their facility while in some country, you would have to choose the additional services you want from the hotel. The bottom line is the higher the amount you pay in hotels, the more the services you are entitled to.

Starting a hotel business is capital intensive and it is considered a long term investment because it takes a while for the owners to breakeven and start making profits. No doubt it takes a big time investor to consider starting his or her own hotel business, which is why loads of hotels are owned by groups of investors.

One good thing about the hotel business is that the business can grow so big that it will not only have active presence in key cities in the country where it started from, but in major cities in all the continent of the world. It is important to state that hotel operations vary in size, function, and cost which is why hotels are classified into different grades (two star hotel, five star hotel, seven star hotel et al).

2. Executive Summary

Sean and Sharon Hotel will be located in the heart of Las Vegas less than 20 minute drive from McCarran International Airport in Las Vegas, and few minute drive from Mandalay Bay Event Center. We are conveniently located in the world’s headquarter for casinos and games; a commercial center.

Sean & Sharon Hotel believes in the passionate pursuit of excellence and financial success with uncompromising services and integrity, which is why we have decided to venture into the hospitability industry by establishing our own hotel. We are certain that our values will help us drive the business to enviable heights and also help us attract the number of clients that will make our hotel fully booked all through the year.

We are going to be a customer-centric hotel with a service culture that will be deeply rooted in the fabric of our organizational structure and indeed at all levels of the organization. With that, we know that we will be able to consistently achieve our set business goals, increase our profitability and reinforce our positive long-term relationships with our clientele, partners, and all our employees as well.

Our hotel facility will be decorated in an exquisite and elegant facade, so much so that it will be a conspicuous edifice in the city where it is located. Sean & Sharon Hotel will provide a conducive spot for our customers to take a break from their various busy schedule, to a place where they can find comfort and luxury.

Sean and Sharon hotel will be equipped with a business center and a VIP lounge, as well as a Fitness room and self-service laundry which will be made available for resident guests at no extra cost.

We will also install a free Wi-Fi that will enable our guests surf the internet with their laptop in the hotel room free of charge, and there will be wireless access in all the public area in the hotel; we will also provide mobile phones for loan to business travelers for their convenience so as to enable them stay in – touch with their family members, friends, and business partners.

No doubt our business class guest rooms will provide our customers with a warm and comfortable home away from home experience, large banquet venue, as well as Chinese and Intercontinental cuisine. We are set to give our esteemed guests an unforgettable experience whenever they patronize our hotel.

Sean and Sharon Hotel is owned by Sean Glacier, Sharon Glacier and other investors whose names can’t be mentioned in this business plan for obvious reasons. The owners and board members of Sean and Sharon hotel are big time investors in the hospitality industry.

Sharon Glacier has well over 20 years of experience in hotel management and she has a Master’s Degree in Hotel Management. She will be bringing her wealth of experience to the table to make Sean and Sharon Hotel the number one choice in Las Vegas.

Over and above we are building a hotel business that will be the cynosure of all eyes. One that competes favorably with other   hotels that is in existence in Las Vegas. We plan to do this bearing in mind that it would take hard work, loads of financial commitment, as well as well trained employees who can be indoctrinated in the quest for building a top notch hotel in the Las Vegas city.

3. Our Products and Services

Sean and Sharon Hotel is set to operate a standard hotel service in Las Vegas, Nevada. The point that we want to become a force to reckon with in the hospitality industry means that we will provide our guests with fitness room, social room, and self-service laundry room and business center; for the purpose of business or leisure and more.

In all that we do, we will ensure that our guests leave with an unforgettable experience that will make them want to come back as well as recommend our hotel to their friends, family members and business partners. These are the services and amenities that will be made available to our guests;

  • Lodging
  • Meals (Local Delicacies, Chinese cuisines and intercontinental cuisines et al)
  • Drinks (wines, beers, distilled spirits, martinis, beverages and non – alcoholic drinks)
  • Swimming pool
  • Gym
  • Self – service laundry room
  • Business center
  • Mini mart
  • Conference room
  • Banquet venue
  • Childcare
  • Shuttle service

4. Our Mission and Vision Statement

  • Our vision is to open a standard hotel that will become the number one choice in Las Vegas
  • Our mission is to deliver reliable, genuine, caring and excellent service superior to what our competition can offer in any location where our hotel will be situated and to ensure that our hotel enjoys over 90 percent occupancy in most parts of the calendar year.

Our Business Structure

The success of any business is to a larger extent dependent on the business structure of the organization and the people who occupy the available role. Sean and Sharon Hotel will work with a business structure that will give room to employees to explore their creativity, give a sense of belonging, as well as grow through the corporate ladder of the organization.

We will work hard to ensure that we only recruit the right set of people with the right mindset to help us achieve our business goals and objectives in record time. We intend building Sean and Sharon Hotel on this structure;

  • Chief Executive Officer (Owner)
  • Hotel Manager
  • Human Resources and Administrative Manager
  • Bartender / Baristas
  • Accountants / Cashiers
  • Facility / Maintenance Manager
  • Marketing Officer
  • Front Desk Officer
  • Cleaners / Washer men
  • Security Officers

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

  • Responsible for providing direction for the business
  • Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
  • Responsible for fixing prices and signing business deals
  • Responsible for recruitment
  • Responsible for payment of salaries
  • Responsible for signing checks and documents on behalf of the company
  • Evaluates the success of the organization

Hotel Manager:

  • Responsible for managing the daily activities in the hotel
  • Ensures that the facility is in tip top shape and conducive enough to welcome customers
  • Interfaces with vendors
  • Reports to the Chief Executive Officer
  • Attends to Customers complains and enquiries
  • Prepares budget and reports for the organization
  • Responsible for Training and Development in the organization
  • Handles procurement
  • Handles any other duty as assigned by the CEO

Human Resources and Administrative Manager

  • Responsible for overseeing the smooth running of HR and administrative tasks for the organization
  • Defines job positions for recruitment and managing interviewing process
  • Carries out staff induction for new team members
  • Responsible for training, evaluation and assessment of employees
  • Responsible for arranging travel, meetings and appointments
  • Oversees the smooth running of the daily office activities.

Marketing Officer (2)

  • Develops, executes and evaluates new plans for expanding increase sales
  • Documents all customer contact and information.
  • Represents the company in strategic meetings
  • Helps increase sales and growth for the company
  • Identifies, prioritizes, and reach out to new partners, and business opportunities et al

Facility / Maintenance Manager

  • Responsible for planning and overseeing building work/renovation
  • Responsible for allocating and managing space within buildings
  • Responsible for managing building maintenance activities
  • Responsible for coordinating cleaning, catering and parking services
  • Responsible for organizing security and general administrative services
  • Ensures that facilities meet government regulations and environmental, health and security standards
  • Advises on energy efficiency and cost-effectiveness
  • Supervises multi-disciplinary teams of staff including maintenance, grounds and custodial workers

Bartender / Baristas (4):

  • Interacts with customers, take orders for drinks, food and snacks.
  • Plans and presents bar menu.
  • Checks identification of the guest to make sure they meet age requirements for purchase of alcohol and tobacco products.
  • Mixes ingredients to prepare cocktails and other drinks.
  • Mixes drinks, cocktails and other bar beverages as ordered and in compliance with hotel standard drink recipes.
  • Prepares alcohol or non-alcohol beverages.
  • Services Wine and Beer to guests.
  • Arranges bottles and glasses to make attractive displays.
  • Assesses customers’ needs and preferences and make recommendations
  • Makes lists of supplies in conjunction with the bar manager / management
  • Prepares inventory or purchase requisitions as needed to replenish supplies.
  • Ensures that the assigned bar area is fully equipped with tools and products needed for Mixing beverages and serving guests.

Accountant / Cashier:

  • Collect payment for drinks served and balance all receipts.
  • Prepare financial report at the end of every working week
  • Handles all financial transaction on behalf of the company
  • Interfaces with our bankers
  • Responsible for payment of tax, levies and utility bills
  • Handle any other duty as assigned by the CEO / microbrewery manager

Front Desk Officer (2)

  • Ensures that customers feel relaxed and at home
  • Handles customers enquiries
  • Assesses customers’ needs and preferences and make recommendations
  • Ability to Sell or influence others for up selling and suggestive selling.
  • Provides recommendations and suggestions to guest for choosing Drinks, food and Snacks.
  • Serve customers in a friendly and helpful manner.
  • Provides guidance to guests on resort activities, dining options and general resort and Regional information.
  • Demonstrates a thorough knowledge of food and beverage products, menus and Promotions
  • Handles any other duty as assigned by the bar manager

 Cleaners / Washer man (6):

  • Handles and moves objects, such as glasses, dish and bottles, using hands and arms.
  • Cleans up after customers and clean work area.
  • Clears ashtrays as and when required.
  • Washes glassware and utensils after each use.
  • Maintains a clean working area by sweeping, vacuuming, dusting, cleaning of glass doors and windows, etc. if required.
  • Ensures that toiletries and supplies don’t run out of stock
  • Responsible for handling laundry
  • Handles any other duty as assigned by the restaurant manager,

Security Officers

  • Ensures that the facility is secured at all time
  • Controls traffic and organize parking
  • Gives security tips to staff members from time to time
  • Patrols around the building on a 24 hours basis
  • Submits security reports weekly
  • Any other duty as assigned by the restaurant manager

6. SWOT Analysis

Sean and Sharon Hotel is fully aware that they are coming into an industry that can be highly competitive which is why they have decided to pay attention to the SWOT analysis for the organization. We know that once we are able to identify our strengths, our weaknesses, our threats and the opportunities that is available to us, we will be able to come up with good business strategies that will help us achieve all our business goals and objectives.

We know too well that one of the ways to build a successful business in the long run, is the ability to glean some lessons from the weak points we have found ourselves in and convert it to an area of strength. In a case where there is little or nothing that can be done, we may also work so hard so that our areas of strength blossoms more, so that are weak area is very less visible.

Here is a of the result we got from the SWOT analysis that was conducted on behalf of Sean and Sharon Hotel Las Vegas, Nevada;

  • Strength:

Our area of strength cannot be farfetched; the location of our hotel is perfect for such business, our management team has robust experience in the industry, our customer’s services is second to none in the whole of Las Vegas and our facility is top notch

  • Weakness:

Our perceived weakness could be that we are a new business, and we may not have the financial muscle to sustain the kind of publicity we want to give our business.

  • Opportunities:

We are in one of the cities in the world that never goes to bed, plus the fact that Las Vegas is regarded as the world headquarter as far as casino business is concerned. It means that loads of tourist, business executives and travelers would want to visit Las Vegas and we are well positioned to welcome them, because our hotel facility is just about 20 minute drive from McCarran International Airport in Las Vegas, and few minute drive from Mandalay Bay Event Center.

  • Threat:

One of the threats that is likely going to confront us is; unfavorable government policies, downturn in the economy which is likely going to affect sales and perhaps the emergence of new hotels (competitors) within the same location where our hotel is located.

7. MARKET ANALYSIS

  • Market Trends

The trend in the hospitality industry is such that there are peak periods and off peak periods. Thus, hoteliers know this and have been able to make provision to properly handle the change in season. For example; during summer or during any major sporting event or business summit, most hotels in Las Vegas are almost fully booked. As a matter of fact, that is the period that some hotel make the money that will sustain the business for the rest of the year.

Be that as it may, some hotels are well positioned and they enjoy rich patronage all through the 12 calendar months of the year. Another trending feature in the hotel industry is that it is profitable to build your brand and then venture into the sale of franchise, if you know you don’t have the capacity to manage various branches of your hotel.

Over and above, hoteliers are quite aware that they are in the industry not for quick returns on their investments, but to steadily build a brand that can become a global brand while growing their profits year in year out.

8. Our Target Market

Sean and Sharon conducted her feasibility studies and market survey and we were able to identify those who we expect will eventually become our loyal customers. We do not intend to waste our time on activities that would yield us nothing, which is why we invested time to create a hotel marketing plan to help us do only the most needful things. These are the category of people that we intend marketing our hotel to;

  • Corporate Executives
  • Business People
  • Sports Men and Women
  • Government Officials
  • College Students
  • Tourists
  • Travelers
  • Travelling Agencies
  • Event Managers
  • Religious Organizations

Our competitive advantage

The competitive edge of Sean and Sharon Hotel Las Vegas, Nevada is the excellent and customized service that we offer to all our guest irrespective of their status. We can boldly say that the location of our hotel is going to give us an edge over our competitors in Las Vegas. We are in the middle of the happening city in Nevada. From the location of our hotel, you can connect any part of the city with little or no stress.

Another significant competitive advantage that we are bringing to the industry is the robust experience of our management team. We have a team that has a combination of 40 years of experience in the hospitality industry in united states and Canada. They are considered as core professionals in their own right.

9. SALES AND MARKETING STRATEGY

  • Sources of Income

Sean and Sharon Hotel will generate income from the following service offerings;

  • Lodgings
  • Meals (Local Delicacies, Chinese cuisines and intercontinental cuisines et al)
  • Drinks (wines, beers, distilled spirits, martinis, beverages and non – alcoholic drinks)
  • Swimming pool
  • Gym
  • Laundry service
  • Business center
  • Mini mart
  • Conference room
  • Banquet venue
  • Childcare
  • Shuttle service

10. Sales Forecast

It is important to state that our sales forecast is based on the data gathered during our feasibility studies and also some of the assumptions readily available on the field. Below is the sales projection for Sean and Sharon Hotel, it is based on the location of our hotel and the services and products that we will be offering;

  • First Year-:  $600,000
  • Second Year-: $900,000
  • Third Year-: $1, 500,000

N.B-: This projection is done based on what is obtainable in the industry and with the assumption that there wouldn’t be any unfavorable government policy.

  • Marketing Strategy and Sales Strategy

We will adopt the following means to attract the kind of people that we want in our hotel per – time: The model of bar we intend running is a neighborhood type of bar, hence, we are not going to rely only on the conventional ways of marketing. We don’t have the plans to run paid adverts on Local TV stations, local radio stations or even local newspaper but we will sure maximize every other available means to promote our business.

Our unique selling proposition is that we have a collection of almost all brands of beers produced in America in our bar, we have assorted drinks and tobaccos et al. In view of that, we are going to adopt the following strategies to ensure that we do not only attract customers but generate repeated sales from them; Parts of the marketing and sales strategies that we will adopt are;

  • Open our hotel in a grand style with a party for all.
  • Advertise our hotel brand in travel and tours magazines, national newspapers, Satellite TV stations and Radio station
  • Promote our business online via our official website and all available social media platform
  • Continuously Improve the performance of our brands
  • Hire the services of experts to make our brands the first choice for guests
  • Deliver consistent customer experiences to all our guest; making our first impression count positively
  • Continuously Improve the efficiency of our hotels and operating processes
  • Ensure that we Put our market scale and knowledge to good use
  • Using our worldwide scale and experience to convert more hotels to our brands
  • Make the most of our global presence – guests choose brands they know when they travel
  • Build strong partnerships within our own company and with our stakeholders across the world
  • Make use of attractive hand bills to create awareness and also to give direction to our bar
  • Position our signage / flexi banners at strategic places
  • Position our greeters to welcome and direct potential customers
  • Create a loyalty plan that will enable us reward our regular customers
  • Engage on road shows within our neighborhood to create awareness for our hotel.

11. Publicity and Advertising Strategy

Sean and Sharon Hotel is in the hospitality business to make profit and we can only make profit if we steadily increase our customer base. No doubt, in order to remain relevant in the hospitality industry as an hotelier in Las Vegas, you should be able to continue to create hype around your hotel brand and that is exactly the publicity and advertising strategy that we will adopt.

We will ensure that we leverage on all conventional and non – conventional publicity and advertising techniques to promote our hotel brand. Although our hotel is located in Las Vegas, but the scope of our market is global which is why we choose to make use of best practices as far as publicity and advertisement is concerned in hotel business. Here are the platforms we intend leveraging on to promote and advertise Sean and Sharon Hotel, Las Vegas;

  • Encourage our loyal customers to help us use Word of Mouth (referrals)
  • Advertise our hotel brand in travel and tours magazines, national dailies, Satellite TV stations and Radio station
  • Promote our business online via our official website
  • Sponsor relevant community programs
  • Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, et al to promote our brand
  • Install our Bill Boards on strategic locations
  • Engage in road show from time to time
  • Distribute our fliers and handbills in target areas

12. Our Pricing Strategy

Our pricing system is going to be based on what is obtainable in the industry, we don’t intend to charge more (except for premium and customized services) and we don’t intend to charge less than our competitors are offering in Las Vegas. Be that as it may, we have put plans in place to discount our products and services once in a while and also to reward our loyal customers.

  • Payment Options

Our payment policy is all inclusive because we are quite aware that different people prefer different payment options as it suits them. Here are the payment options that will be available in every of our pub;

In view of the above, we have chosen banking platforms that will help us achieve our payment plans without any difficulty.

13. Startup Expenditure (Budget)

This is the key areas where we will spend our start – up capital on;

  • Legal expenses for obtaining licenses and permits: $1,500.
  • The Total Fee for Registering the Business in Las Vegas, Nevada: $750.
  • Marketing promotion expenses (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
  • Cost for hiring Consultant – $5,000.
  • Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $30,800.
  • Cost of accounting software, CRM software and Payroll Software – $15,000
  • Cost for acquiring facility for the hotel: $500,000.
  • Cost for facility remodeling – $100,000.
  • Other start-up expenses including stationery – $1000)
  • Phone and utility deposits ($3,500).
  • Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
  • The cost for Start-up inventory – $35,000
  • Storage hardware (bins, utensil rack, shelves, glasses case) – $3,720
  • The cost for counter area equipment (counter top, sink, ice machine, etc.) – $9,500
  • Cost for serving area equipment ( glasses, flatware) – $5,000
  • Cost for store equipment (cash register, security, ventilation, signage) – $13,750
  • Office equipment and furniture – $3,600
  • The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al): $4,000.
  • The cost of Launching a Website: $600
  • The cost for our grand opening party: $5,000
  • Miscellaneous: $2,500

We would need an estimate of $3.5M to successfully launch Sean and Sharon Hotel in Las Vegas, Nevada.

Generating Funding / Startup Capital for Our Hotel

Sean and Sharon Hotel will be financed by Sean and Sharon Glaciers and their business partners. Part of the start – up capital will also be raised as a loan facility from the bank in the United States. These are the areas where we intend sourcing for fund for Sean and Sharon Hotel.

  • Generate part of the start – up capital from personal savings and sale of his stocks (Sean and Sharon Glaciers)
  • Generate part of the start – up capital from our business partners
  • Generate a larger chunk of the startup capital from the bank.

N.B: Please note that Sean and Sharon Glaciers want to retain the lion share of the business shares hence they both are investing a total of 1 million USD. They will also secure a mortgage to purchase the property for the hotel.

14. Sustainability and Expansion Strategy

Part of the grand plan of sustaining Sean and Sharon hotel is to ensure that we provide the best of trainings for our employees, put succession plan in place, and we will not relent in marketing and promoting our hotel brand.

From our findings, another factor that kills new business is financial leakages. In order to plug financial leakages, the management of Sean and Sharon Hotel will adopt the use of payment machines and accounting software to run the business.

In the bid to building a successfully business, we will ensure that all our employees are comfortable and we will provide them with the best of facilities and welfare package that will help them achieve peak performance in all their duties and in turn help the organization achieve its goals and business objectives.

Check List / Milestone

  • Business Name Availability Check: Completed
  • Business Registration: Completed
  • Opening of Corporate Bank Accounts: Completed
  • Securing Point of Sales (POS) Machines: Completed
  • Opening Mobile Money Accounts: Completed
  • Opening Online Payment Platforms: Completed
  • Application and Obtaining Tax Payer’s ID: In Progress
  • Application for business license and permit: Completed
  • Purchase of Insurance for the Business: Completed
  • Acquiring facility and remodeling the facility: In Progress
  • Conducting Feasibility Studies: Completed
  • Generating capital from family members: Completed
  • Applications for Loan from the bank: In Progress
  • Writing of Business Plan: Completed
  • Drafting of Employee’s Handbook: Completed
  • Drafting of Contract Documents and other relevant Legal Documents: In Progress
  • Design of The Company’s Logo: Completed
  • Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
  • Recruitment of employees: In Progress
  • Purchase of the Needed furniture, electronic appliances, office appliances and bar accessories: In progress
  • Creating Official Website for the Company: Completed
  • Creating Awareness for the business both online and in the neighborhood: In Progress
  • Health and Safety and Fire Safety Arrangement (License): Secured
  • Opening party / launching party planning: In Progress
  • Establishing business relationship with vendors – suppliers of all our needed food ingredients, drinks, tobacco and snacks : In Progress

Frequently Asked Questions

  1. How Do You Start Your Own Hotel?
  • Determine the type of hotel you would like to start (e.g., how many rooms, luxury vs affordable, etc.)
  • Determine the ideal location(s) for your hotel
  • Determine whether you will build your hotel from scratch or renovate an existing structure
  • Speak with architects and others who will be involved in building/renovating your hotel to determine costs
  • Speak with local government to understand zoning and permit issues and associated costs
  • Develop your hotel business plan that details your strategy, plans and financial projections
  • Present your plan to investors and lenders to raise the required funding
  • Build/renovate your hotel
  • Recruit and train your hotel staff
  • Purchase the required systems (e.g., reservation system, accounting software, etc.) to effectively manage your hotel
  • Launch your pre-opening hotel marketing plan
  • Open your hotel to the public
2. If You Want To Start A Hotel Business What Factors Do You Consider?
  • Hotel Location
  • Hotel Amenities
  • Accessibility
  • Value
  • Testimonials/Reviews
3. Can You Buy A Hotel Room Permanently?

The short answer is Yes. In the real estate industry, these are known as condo hotels. Hotel rooms boast of higher occupancy rates and greater monthly returns than regular condominiums.

4. How Much Does It Cost To Start A Hotel?

The average cost of starting a hotel in the US ranges from $750,000-$1,000,000 for a small motel, to the national average being around $22,000,000 for a hotel.

5. What Are The Costs Involved In Opening A Hotel Business?

That figure breaks out into 5 buckets:

  • Land: $33,900 (10%); this includes real estate cost
  • Building/Construction:  $221,500 (66%); naturally building and construction is the largest budget item.
  • Soft Costs: $41,800 (12%); these include everything non-construction related like designers, architects, lawyers, insurance, permits and taxes.
  • FF&E: $29,100 (9%); FF&E stands for “Furniture, Fixtures & Equipment” and includes anything that’s movable in the building desks, computers, electronic equipment tables.  FF&E is also sometimes referred to as “hard costs”
  • Pre-Opening & Working Capital: $10,700 (3%); you’ll need to hire staff ahead of opening so pre-opening expenses fund salaries before the operation goes live and revenue starts flowing in to fund the day-to-day.
  • Registration fee = $750
  • Legal fees incl. securing licenses, permits, accounting, etc. = $15,300
  • Marketing = $3,580
  • Business consultant (help with business plan) = $2,500
  • Insurance premiums = $30,400
  • Leasing a stand facility in a central location = $4,500
  • Hotel conversion = $800,000
  • Startup expenses (stationary, phone, utilities, sewage, deposits…) = $20,500
  • Operational costs for first 3 months (staff salaries, bills, etc.) = $120,000
  • Startup inventory and equipment (from food to cleaning products, from to pillows to coat hangers) = $45,000
  • Store equipment (cash register, security, ventilation and signage) = $13,750
  • Furniture and gadgets (from TVs to telephones, PCs and printers to tables and chairs) = $40,000
  • CCTV installation = $15,000
  • Website build and hosting = $600
  • Opening party (!) = $20,000
  • Misc (yes there’s stuff we haven’t covered!) = $50,000
  • So that’s an estimated hotel startup cost of $1, 214, 100.
6. How Much can you Put Down On A Hotel?

20 percent down payments are the norm if you use a bank loan to purchase your hotel. However, with seller financing (borrowing from the seller of the property), you may be able to get the down payment percentage down to 5 percent.

7. What Are Some Ideas To Grab Customers for your hotel?
  • Take Prospects on a Virtual Tour
  • Leverage the Power of Loyalty Programs
  • Invest in Text Message Marketing
  • Encourage Online Reviews
  • Share User Generated Content via Instagram
  • Create a Digital Community Guide
  • Use Twitter as a Customer Service Tool
8. How Do Hotels Get Funding?

Consider traditional commercial real estate loans from banks, hard money loans, or commercial real estate crowdfunding for alternative hotel construction financing. Many hotel lenders will also call construction loans CapEx loans—or capital expenditure loans—so keep an eye out for those, too

9. Which Is bigger, Hilton Or Marriott?

Marriott. The U.S.-based hotel chain is the world’s biggest, after its merger with Starwood Hotels and Resorts in 2016. Today Marriott’s annual revenue tops $14.5 billion.

Hilton and Marriott are two of the biggest hotel chains in the world. Hilton has 18 brands and more than 6,100 properties across 118 countries. Marriott has 30 brands and more than 7,000 properties across 131 countries and territories.

10. What Happens During A Typical Day At A Hotel Business?
  • Getting up early. In fact very early. This is one rule that you have to follow in the hospitality industry.
  • The daily meeting happens where the daily staff report is presented about what has happened over last night, those details are provided by the staff.
  • Managers will always roam around the hotel making sure that each and everything is in place.
  • Hotel staff meet their clients and take their feedbacks.
  • Managers provide instructions to the hotel staff multiple times a day about how to do things.
  • There are several operational meetings in a day and also with the senior management in some cases.
11. How Profitable Is Owning A Hotel?

Hotels can be a very good investment and also highly profitable. But you really need to understand the business before you can make any profit in it.

12. How Much Does A Marriott Hotel Owner Make?

Approximately $25,000 to $75,000 per year. The above information was compiled from the FDD of Marriott International.

13. How Much Does A Normal Hotel Room Cost?

The average cost of a hotel room, determined by surveying 100 hotels in U.S. cities, is $177.36 per night as of 2016.

14. Is Owning A Hotel A Good Investment?

The answer is yes and no. Yes, if it’s in the right location, has the proper management, is well capitalized and the economy is doing well. It will not be profitable if it is in the wrong location, poorly run, run down, undercapitalized, and the economy is in a downturn. Like any other business, there are winners and losers.

15. What Are The Ins And Outs Of Starting A Hotel Business From Scratch?
  • Make a plan
  • Conduct research
  • Create your Unique Value Proposition
  • Develop your marketing plan
  • Enquire about permits and zoning
  • Raise startup capital
  • Find hotel premises, build and furnish
  • Recruit staff
  • Put systems in place
  • Train your team
  • Open your hotel
16. How Much Does It Cost To Build A Marriott Hotel?

The total investment to open and operate a Courtyard by Marriott hotel as a franchisee is between $7 million and $10 million. The initial franchise fee is $60,000 or $500 per room, whichever is greater.

17. Is Living In A Hotel Expensive?

Living in a hotel is as expensive as you make it. It can be less expensive or more expensive than renting an apartment, depending on your standard of living and how you are able to deduct expenses.

18. What Are The Costs of Running A Small Boutique Hotel ?
  • Registration fee = $750
  • Legal fees incl. securing licenses, permits, accounting, etc. = $15,300
  • Marketing = $3,580
  • Business consultant (help with business plan) = $2,500
  • Insurance premiums = $30,400
  • Leasing a stand facility in a central location = $4,500
  • Hotel conversion = $800,000
  • Startup expenses (stationary, phone, utilities, sewage, deposits…) = $20,500
  • Operational costs for first 3 months (staff salaries, bills, etc.) = $120,000
  • Startup inventory and equipment (from food to cleaning products, from to pillows to coat hangers) = $45,000
  • Store equipment (cash register, security, ventilation and signage) = $13,750
  • Furniture and gadgets (from TVs to telephones, PCs and printers to tables and chairs) = $40,000
  • CCTV installation = $15,000
  • Website build and hosting = $600
  • Opening party (!) = $20,000
  • Misc (yes there’s stuff we haven’t covered!) = $50,000
  • So that’s an estimated hotel startup cost of $1, 214, 100.
19. Do Boutique Hotels Make Money?

According to CBRE’s Trends survey, boutique hotels achieved a gross operating profit margin of 33.8 percent in 2017 versus the 38.3 percent average for all hotels included in their survey. The boutique sector also exhibits strong growth in RevPAR.

20. How Do You Get A Good Financial Start For A Small Hotel?

It takes time for your hotel to start yielding the needed revenure and for it to become profitable. So the best financial start you can get is to get your loan form a source that gives you the best payment option. Like something that won’t stress you out or put you under pressure to pay back.

21. What Are Some Insider Tips For Jump Starting A Hotel Business?
  • Keep an eye on those reviews
  • Generate great leads
  • Give customers an innovative experience
  • Keep your guests safe
  • Communicate, communicate, communicate
  • Give managers flexibility
  • Be observant
22. What Is The Most Important Skill That A Hotel Owner Must Have?

Multi-tasking.

No day is the same within the hospitality industry. Customer footfall varies on a daily basis, therefore, staff must be able to multi-task in order to deal with a potentially high number of jobs in one day.

23. What Are Some Skills And Experiences That Will Help You Build A Successful Hotel Business?
  • Teamwork
  • Multi-tasking
  • Flexibility
  • Attention to Detail
  • Industry Awareness
  • Time Management
  • Communication
  • Interpersonal Skills
24. Is Owning An Inn Profitable?

Inns can be profitable and enjoyable to operate if you have realistic expectations.

25. How Much Do Hotel Owners Make Yearly?

As the owner, they don’t have a salary; rather, they have (or don’t have) a profit. Based on estimates, how much a hotel franchise owner makes varies between $40,000 to $60,000 annually. Given that the average salary in the US is around $40,000, then the average hotel owner isn’t making much more than the average white-collar worker.

26. What Are The Requirements Of A 5 Star Hotel?
  • Standalone concierge staff available at least 16 hours a day
  • A high staff-to-room ratio—ideally above 2.5
  • Multilingual staff
  • 24-hour reception, room service, valet parking, butler, doorman
  • Nightly turndown
  • Daily housekeeping that is also available upon request at any time
  • Laundry, ironing, dry cleaning, and shoe polishing
  • Guest elevators separate from staff elevators.
  • Luggage storage in which bags are out of guest view
  • Fine dining restaurant(s) and a standalone lounge and/or bar
  • Transfers and executive or house car
  • Childcare
27. What Is The Average Profit Margin For A Hotel?

Using information from CBRE’s Trends in the Hotel Industry database, at 39.8 percent, hotels have historically averaged a GOP margin of 11.6 percent.

28. What Are Some Great Tips To Start A Hotel Business In The States?
  • You should work on redefining your OTA strategies
  • Focus on direct bookings
  • Start working on your digital marketing
  • You just need to focus on your reviews
  • Set the right pricing at the RIGHT time
  • Employ an effective reputation management plan for your hotel
  • Keep an eye on your competitors and their pricing methods
29. Michael Forrest Jones’s Answer To What Would Be A Good Way To Promote A Small Hotel?
  • If it’s your first time, and you have no construction or real estate development experience, consider the acquisition route, at least starting out.
  • Let’s start with your location. Give it a rest for now about streets, thoroughfares, zoning, traffic counts, etc. You want to make sure you’re in the right town.
  • If you’re contemplating building something more downscale and economical, with more spartan amenities (e.g., a Super 8 Motel) – my best advice is, don’t.
  • If you’re contemplating something more upscale, with food and beverage service, unless you yourself have restaurant management experience and can market a restaurant location in that spot successfully from scratch, my best advice is – again – don’t.
  • Once you’ve picked a town, check their various room rates
  • Provide a service that is missing in that town
  • Whatever you build, wherever you build it, you can make it as posh as you like, you can include as many amenities and services of any kind at all as anyone could want, you could make it a veritable Fantasy Island, heaven on earth even … but there’s a catch: it has to make money.
30. What Is The Most Profitable Hotel Chain?

Hilton Hotels & Resorts was the most valuable hotel brand in 2020, with a global brand value of approximately 10.83 billion U.S. dollars.

31. Why Does a Hotel Owner Need Hkeeper?

HKeeper is a universal cloud-based platform for hotel management personnel to use remotely and in real-time mode. In the Hospitality industry Hkeeper dramatically decrease operational costs and highly increase service quality.

HKeeper is a unique tool, visualizing everything that happens in the hotel and displays all the information to a single control panel, where at a glance you can see and evaluate the accuracy of the workflow or its deviation from established quantitative and qualitative standards.

32. What Are The Four Pillars Of Hotel Marketing?
  • Popularise
  • Capture
  • Convert
  • Share
33. What Is The Best Location For A Hotel?

Upcoming Neighborhoods

People are usually stressed out by the noise in bustling towns and if they can snatch a bit of a getaway, they’d much rather spend it in a hotel that is devoid of the hustle and bustle of major cities. Even experienced hotel chains are convinced their hotel will clean up an area and be the catalyst for improving an underdeveloped or neglected neighborhood.

34. How Do You Know If You Need A Night Porter For Your Small Hotel?

Porter responsibilities include carrying guests’ luggage, fixing minor issues (like changing light bulbs) and cleaning building areas, including entrances.

If your hotel gets a lot of guests at night, then it may be a sign that you need a night porter.

36. Is Marriott Owned By Chinese?

Marriott International, Inc. is an American multinational company. The company was founded by J. Willard Marriott and his wife Alice Marriott; the executive chairman of the company is now their son, Bill Marriott and the Marriott family retains majority ownership of the company.

37. How Much Does It Cost To Build A Small Motel?

$7,265,000. For a typical motel project, you would be looking at $150-$180 per square foot.

38. What Can You Do If You Want To Start Your Own Hotel Business But You Are Just 17 Years Old?

You cannot build a hotel at the age of 17. First off, building a hotel is very financially intensive and no sensible business person or investor will lend a teen money to start building a hotel.

39. Does Your Hotel Need To Be Close To A Train Station?

No, your hotel does not need to be close to a train station to be successful. Though there are lots of hotels that are located close to train stations and they are pretty successful.

40. How Can You buy A Hotel With No Money?

The hotel business is capital intensive and requires quite a substantial amount of money to invest in. Therefore, buying one with no money may be fun for the interested party, but it isn’t to the seller. More so, it is almost impossible.

41. What Are The Key Financial Metrics In The Hotel Market?
  • Liquidity Ratios
  • Financial Leverage Ratios
  • Profitability Ratios
42. What Specific Qualities Do Owners Of Successful Small Hotels Usually Possess?
  • Commitment
  • Communication Skills
  • Enthusiasm
  • Leadership
  • Organisation
  • Knowledgeable of Safety/Hygiene issues
  • Teamwork
43. How Much Money Do You Get Monthly If You Own A Hotel Business?

Hotel owners don’t make a salary; they make a profit. $40,000 and $60,000 per year. That should give you roughly $5000 per month.

44. How Can A Foreigner Open A Hotel Or Restaurant In The USA?

There are a number of possibilities.

  • As an arm’s length investor. Employ a manager; form an LLC; put up the cash. You can even do this without setting foot in the USA.
  • Obtain Employment Authorisation to work as a non-immigrant using the E-2 visa
  • If you are investing over $500,000 then apply for an immigrant visa using the EB5 visa route
  • Use the B1/B2 visa categories to spend up to a year in the US doing the groundwork.
  • Use the L1 visa category by opening a restaurant in your home country first.
45. How Much Does It Cost To Stay In A 5 Star Hotel?

North America has the most expensive luxury hotels, with an average cost of $884 per night but it can average at $400 or even less. They are also 5 star hotels that are over a thousand dollars per night.

46. Being An International Student In USA, How Can Start A Hotel Business In New York?

Under the F1 program, international students are not allowed to own a business. This means that international students cannot earn revenue or salary derived from a business which they operate.

47. Who Is The Richest Hotel Owner?

Sheldon Adelson. With a net worth of $21.8 billion, Sheldon Adelson is the 12th wealthiest American and the 24th richest man on Earth.

48. How Much Does It Cost To Build A 100 Room Hotel?

The average cost to build a 100-room 5-star hotel is over $60,000,000.

49. Can You Run A BB From Your Home?

Yes. But first you need to contact your local council. You may need a “change of use” application to run a B&B business from your house, even if you aren’t making any structural changes. With regard to health and safety, all B&Bs have to comply with fire safety legislation and have a gas safety inspection.

50. Can You Make Money Running A BB?

B&Bs can be profitable and enjoyable to operate if you have realistic expectations. The pros are many: you meet different people, you avoid a daily commute, you can live where you work while minimizing your home expenses, and you might have valuable time off during the off-season.

51. What Personality Traits Differentiate Average Hotel Owners From Great Hotel Owners?
  • Good Communicator
  • Being Organized
  • Caring for Others
  • Astute business skills
  • Risk taking
52. How Can Hotels Improve Revenue During The Autumn And Winter Months?
  • Offer tailor made packages
  • Have A good CRM
  • Segmentation
  • Give your website a polish
  • Create a landing page
  • Retarget abandoned bookings
  • Don’t neglect metasearch
  • Blog about it
Ajaero Tony Martins