A hotel business provides short-term lodging to tourists, business travelers, convention delegates, families, event attendees, sports fans, couples, and other visitors in exchange for nightly room charges.

A full-service hotel can generate considerably more revenue than accommodation alone. Additional revenue can come from:

• Restaurants
• Bars and lounges
• Meetings
• Conferences
• Banquets
• Weddings
• Parking
• Guest laundry
• Food and beverage
• Retail products
• Other hospitality services.

However, a hotel is also one of the more capital-intensive businesses you can start.

You need to finance the land, building, guest rooms, furniture, commercial kitchen, elevators, fire-protection systems, air-conditioning, technology, parking, security, public areas, pre-opening payroll, marketing, and working capital before the first guest checks in.

This is why you should not judge the potential of a hotel simply by asking how much one room can rent for. The important numbers include:

• Occupancy
• Average Daily Rate
• Revenue per Available Room
• Food and beverage revenue
• Labor cost
• Operating expenses
• Debt service
• Maintenance
• Capital replacement requirements.

Sean and Sharon Hotel will be developed around these principles.

Steps on How to Write a Hotel Business Plan

1. Executive Summary

Sean and Sharon Hotel is a proposed 120-room upscale independent full-service hotel located in Las Vegas, Nevada.

The property will be positioned within convenient driving distance of the Las Vegas Strip, Harry Reid International Airport, the Las Vegas Convention Center, major entertainment venues, professional sports facilities, and important commercial areas.

Rather than attempting to compete directly with giant casino resorts, Sean and Sharon Hotel will provide a smaller, more personal upscale hospitality experience.

The proposed property will include:

• 120 guestrooms and suites
• Full-service restaurant
• Cocktail bar and lounge
• Approximately 8,000 square feet of meeting and banquet space
• Outdoor swimming pool
• Fitness center
• Business/work lounge
• Self-service guest laundry
• High-speed Wi-Fi
• Secure parking
• 24-hour front desk
• Housekeeping
• Event catering
• Small convenience retail area.

The hotel will not initially operate a casino. This allows management to concentrate on:

• Guest accommodation
• Food and beverage
• Corporate groups
• Meetings
• Weddings
• Events
• Hospitality.

Our main customers will include:

• Leisure visitors
• Convention delegates
• Business travelers
• Corporate groups
• Wedding parties
• Sports-event visitors
• Concert and entertainment visitors
• Tour groups
• Weekend travelers
• Regional drive-market visitors.

Sean and Sharon Hotel will be owned principally by Sean Glacier and Sharon Glacier, together with selected outside investors.

Sharon Glacier will play an active role in strategic management and brings extensive hospitality-management experience.

The hotel will nevertheless be managed by experienced professional executives so the property does not depend entirely on the owners’ daily presence.

The proposed hotel will require approximately $58 million in total development capital. Projected revenue is:

• FY1 – $10.8 Million
• FY2 – $12.7 Million
• FY3 – $14.5 Million.

Our occupancy assumptions are:

• FY1 – 72 Percent
• FY2 – 77 Percent
• FY3 – 81 Percent.

The long-term objective is to establish Sean and Sharon Hotel as a profitable independent Las Vegas hospitality brand and eventually develop or acquire additional hotels in selected U.S. markets.

2. Company Profile

a. Our Products and Services

Sean and Sharon Hotel will offer the following:

Guest Accommodation

The proposed 120-room inventory will include:

• Standard King Rooms
• Standard Double Queen Rooms
• Premium King Rooms
• Junior Suites
• Executive Suites
• Accessible rooms.

Typical rooms will include:

• Premium bedding
• Private bathroom
• Work desk
• High-speed Wi-Fi
• Smart television
• USB and electrical charging outlets
• In-room safe
• Mini refrigerator
• Coffee station
• Individual climate control.

The hotel will focus on comfortable, attractive rooms rather than adding expensive features that guests rarely use.

Restaurant

Sean and Sharon Hotel will operate an approximately 100-seat restaurant serving:

• Breakfast
• Lunch
• Dinner
• Selected late-evening food.

The menu may include:

• Breakfast classics
• Sandwiches
• Salads
• Steaks
• Chicken
• Seafood
• Vegetarian meals
• Southwestern-inspired dishes
• Selected international dishes.

The restaurant will be designed to serve both hotel guests and local customers.

Bar and Lounge

The hotel lounge will provide:

• Cocktails
• Wine
• Beer
• Non-alcoholic beverages
• Appetizers
• Light meals.

Alcohol will be served only after the appropriate Nevada and local licenses have been obtained.

Meetings and Conferences

Approximately 8,000 square feet of flexible event space will accommodate:

• Corporate meetings
• Business conferences
• Training programs
• Association meetings
• Small conventions
• Board meetings
• Product launches.

The principal ballroom will be capable of subdivision into smaller rooms.

Wedding and Banquet Services

The property will also target:

• Wedding receptions
• Engagement parties
• Birthday celebrations
• Anniversaries
• Reunions
• Award ceremonies
• Charity events.

Banquet packages may include:

• Event room
• Tables
• Chairs
• Linens
• Food
• Beverage service
• Servers
• Basic audiovisual equipment.

Swimming Pool

Guests will have access to an outdoor swimming pool with:

• Pool seating
• Shade structures
• Towels
• Seasonal food and beverage service where practical.

Fitness Center

The fitness center will include:

• Treadmills
• Ellipticals
• Stationary bicycles
• Free weights
• Resistance equipment
• Stretching area.

Business and Work Lounge

Rather than an outdated computer room, the hotel will provide:

• Comfortable work tables
• High-speed Wi-Fi
• Charging stations
• Printing
• Quiet work areas
• Small meeting booths.

Guest Laundry

Self-service guest laundry will be available. The hotel may operate or outsource commercial laundry for:

• Sheets
• Towels
• Restaurant linens
• Banquet linens.

b. Nature of the Business

Sean and Sharon Hotel will operate under both business-to-consumer and business-to-business models.

Individual customers include:

• Tourists
• Families
• Couples
• Business travelers
• Weekend visitors.

Business customers include:

• Corporations
• Meeting planners
• Travel agencies
• Tour operators
• Associations
• Wedding planners
• Event organizers.

c. The Industry

Sean and Sharon Hotel will operate within the hotel, lodging, tourism, hospitality, food-service, and meetings industry.

d. Mission Statement

“At Sean and Sharon Hotel, our mission is to provide Las Vegas visitors with comfortable accommodations, genuine hospitality, memorable food and beverage experiences, dependable service, and flexible meeting facilities in a professionally managed upscale environment.”

e. Vision Statement

“Sean and Sharon Hotel envisions becoming one of Las Vegas’ most respected independent upscale hotel brands and ultimately developing a portfolio of profitable hospitality properties known for excellent guest service, attractive facilities, disciplined operations, and memorable experiences.”

f. Our Tagline

“Sean and Sharon Hotel – Your Las Vegas Stay, Made Personal.”

g. Legal Structure of the Business

Sean and Sharon Hotel will operate through a privately held corporate structure. Management may eventually establish separate entities for:

• Hotel real estate
• Operating business
• Management company
• Future hotel developments.

For example, one entity may own the hotel property while another operates the hotel.

h. Organizational Structure

The organizational structure will include:

• Chief Executive Officer/Ownership Representative
• General Manager
• Director of Operations
• Director of Sales and Marketing
• Revenue Manager
• Controller/Finance Manager
• Human Resources Manager
• Front Office Manager
• Executive Housekeeper
• Chief Engineer/Facilities Manager
• Food and Beverage Director
• Executive Chef
• Banquet Manager
• Security Manager
• Front Desk Agents
• Housekeepers
• Maintenance Engineers
• Restaurant Servers
• Bartenders
• Kitchen Employees
• Banquet Employees
• Security Personnel.

i. Ownership/Shareholder Structure and Board Members

Our proposed structure is:

• Sean Glacier – Co-Founder and Chairman – 30 Percent
• Sharon Glacier – Co-Founder and Managing Director – 30 Percent
• Hospitality Investment Partners – 20 Percent
• Rebecca Morrison – Board Member – 10 Percent
• Anthony Lewis – Board Member – 10 Percent.

Sean and Sharon Glacier will maintain combined majority ownership.

3. SWOT Analysis

a. Strengths

• Las Vegas Location: Las Vegas attracts tens of millions of visitors every year.
• Diversified Revenue: Rooms, restaurant, bar, meetings, banquets, weddings, and parking reduce dependence on one source.
• Experienced Leadership: Sharon Glacier brings substantial hospitality experience.
• Independent Positioning: Management can adjust service, packages, promotions, and design without rigid franchise requirements.
• Convention Market: Las Vegas attracts millions of business and convention visitors.
• Meeting Space: Group business can help support midweek occupancy.
• No Dependence on Gaming: The business model remains viable without casino revenue.

b. Weaknesses

• Extremely high startup cost.
• An independent hotel lacks the loyalty programs of major global brands.
• Online travel agency commissions reduce room margins.
• Food and beverage adds operating complexity.
• Las Vegas has enormous hotel supply.
• High debt can reduce early profitability.
• A new property initially has few guest reviews.
• Hotels require substantial staffing.

c. Opportunities

• Convention visitors
• Corporate meetings
• Sports tourism
• Entertainment tourism
• Weddings
• Direct online bookings
• Group business
• Regional drive-market travelers
• Independent lifestyle positioning
• Additional properties.

i. How Big is the Industry?

Las Vegas is one of the largest hotel destinations in the world. The market contains approximately 150,000 hotel rooms and welcomes tens of millions of visitors every year.

Major demand generators include:

• Gaming
• Entertainment
• Restaurants
• Meetings
• Conventions
• Sports
• Shopping
• Weddings
• Leisure tourism.

Las Vegas therefore provides enormous opportunity, but it also creates serious competition.

Sean and Sharon Hotel will need a clear position rather than simply becoming another generic hotel.

ii. Is the Industry Growing or Declining?

Las Vegas hospitality remains a large and viable industry, although visitor demand can fluctuate. Hotel performance may be influenced by:

• Economic conditions
• Consumer confidence
• Air travel
• International tourism
• Convention schedules
• Sports events
• Concert schedules
• Room supply.

A diversified customer base will help reduce risk.

iii. Future Trends in the Industry

Future trends include:

• Dynamic Pricing: Sophisticated revenue management will determine rates according to demand.
• Direct Booking: Hotels will continue encouraging direct reservations to reduce commissions.
• Group Business: Meetings and conventions will remain important in Las Vegas.
• Sports Tourism: Major sporting events will continue generating visitor demand.
• Mobile Guest Service: Digital check-in and mobile communication will become increasingly common.
• Experience-Based Hotels: Independent hotels will increasingly use design, food, events, and service to differentiate themselves.
• Energy Efficiency: Cooling, lighting, water, and utility management will remain financially important.
• Flexible Work Areas: Travelers increasingly expect usable workspaces throughout the hotel.
• EV Charging: Electric vehicle charging will become increasingly relevant.

iv. Existing Niches

Hotel niches include:

• Casino resorts
• Luxury hotels
• Convention hotels
• Boutique hotels
• Business hotels
• Airport hotels
• Extended-stay hotels
• Limited-service hotels
• Family hotels
• Lifestyle hotels.

Sean and Sharon Hotel will operate within the upscale independent full-service business and leisure hotel niche.

v. Can You Sell a Franchise in the Future?

Yes. Once the concept has been proven, Sean and Sharon Hotel could expand through:

• Company-owned properties
• Joint ventures
• Hotel management contracts
• Franchises
• Licensing.

Management will initially favor ownership and carefully controlled partnerships.

d. Threats

• Economic recession
• Visitor declines
• New competing hotels
• Interest-rate increases
• Labor shortages
• Higher wages
• Higher energy costs
• Water restrictions
• Negative reviews
• Cybersecurity incidents
• Major maintenance failures
• Travel disruptions.

i. Who are the Major Competitors?

Competition includes:

• Marriott properties
• Hilton properties
• Hyatt properties
• IHG properties
• Independent Las Vegas hotels
• Convention hotels
• Casino resorts
• Boutique hotels
• Limited-service hotels.

Large destination resorts include:

• Bellagio
• Wynn Las Vegas
• Venetian
• Caesars Palace
• MGM Grand
• Other major Strip resorts.

Sean and Sharon Hotel will not attempt to match their physical scale. Instead, our competitive advantages will include:

• More personal service
• Smaller property
• Upscale rooms
• Strong meeting facilities
• Independent hospitality
• Competitive pricing.

ii. Is There a Franchise for Hotel Businesses?

Yes. Hotel franchising is extremely common. Major brands may provide:

• Reservation systems
• Loyalty programs
• Marketing
• Operating standards
• Brand recognition.

However, owners generally pay:

• Initial fees
• Royalty fees
• Marketing fees
• Reservation fees
• Technology fees.

Sean and Sharon Hotel may eventually evaluate a soft-brand affiliation while preserving its independent identity.

iii. Policies, Regulations and Zoning

Operating a Las Vegas hotel involves substantial regulation. Potential requirements include:

• Zoning approval
• Land-use approval
• Building permits
• Business license
• Fire and life-safety inspection
• Certificate of occupancy
• Food-service permits
• Liquor licensing
• Pool permits and inspections
• Elevator inspections
• Accessibility compliance
• Sign permits
• Tax registration
• Transient lodging tax collection.

The final regulatory authority will depend on whether the property is inside the City of Las Vegas or unincorporated Clark County.

Room Taxes

The hotel will collect applicable transient lodging taxes from guests and remit them to the appropriate authorities.

Room taxes will be treated as taxes collected on behalf of government rather than hotel revenue.

Food and Beverage

The restaurant, bar, and banquet operation will comply with applicable:

• Food-service requirements
• Food-safety regulations
• Health inspections
• Alcohol licensing.

4. Marketing Plan

a. Target Audience

i. Age Range

Our principal guests will generally be adults aged approximately 25 to 65.

ii. Level of Education

No specific education level.

iii. Income Level

Our primary customers will be:

• Middle-income travelers
• Upper-middle-income travelers
• Affluent travelers
• Business travelers using corporate budgets.

iv. Ethnicity

No specific ethnicity. Las Vegas receives a diverse national and international visitor base.

v. Language

English will be the primary language. Multilingual employees will be useful at:

• Front desk
• Reservations
• Restaurant
• Guest services.

vi. Geographical Market

Guests may come from:

• California
• Arizona
• Texas
• Utah
• Other U.S. states
• Canada
• Mexico
• Europe
• Asia
• Other international markets.

vii. Customer Profile

Target customers include:

• Tourists
• Convention delegates
• Business travelers
• Couples
• Sports fans
• Wedding parties
• Concert attendees
• Tour groups
• Weekend visitors.

b. Advertising and Promotion Strategies

Sean and Sharon Hotel will use:

• Direct website bookings
• Search advertising
• Corporate negotiated rates
• Meeting planner outreach
• Wedding packages
• Group packages
• Travel advisor relationships
• Online travel agencies
• Email marketing
• Guest loyalty promotions.

i. Traditional Marketing Strategies

• Corporate sales visits
• Convention sales
• Travel agent relationships
• Wedding expos
• Hospitality trade events
• Meeting planner outreach
• Local partnerships.

ii. Digital Marketing Strategies

• Search engine optimization
• Paid search advertising
• Metasearch advertising
• Email marketing
• Retargeting
• Online review management
• Direct-booking campaigns
• Pre-arrival email campaigns.

iii. Social Media Marketing Plan

Content may feature:

• Rooms and suites
• Food
• Cocktails
• Pool experiences
• Wedding setups
• Meetings
• Las Vegas travel ideas
• Events
• Guest experiences.

c. Pricing Strategy

Room rates will use dynamic pricing.

Rates will depend on:

• Occupancy
• Day of week
• Conventions
• Concerts
• Sporting events
• Season
• Booking pace
• Competitor pricing
• Length of stay.

5. Sales and Distribution Plan

a. Sales Channels

Reservations will come through:

• Hotel website
• Direct telephone reservations
• Online travel agencies
• Corporate contracts
• Group bookings
• Travel agencies
• Global distribution systems
• Meeting planners.

Management will aim to increase direct-booking share because third-party commissions can significantly reduce profit.

b. Inventory Strategy

The hotel’s core inventory consists of:

• 120 rooms each night
• Meeting rooms
• Banquet spaces
• Restaurant seats.

A room left empty tonight cannot be sold tomorrow. This makes revenue management particularly important.

c. Payment Options

Sean and Sharon Hotel will accept:

• Credit cards
• Debit cards
• Approved digital wallets
• Corporate billing for qualified businesses
• Approved prepaid travel reservations.

d. Cancellation Policies, Incentives and Guarantees

Reservation options may include:

• Flexible rates
• Advance purchase rates
• Group rates
• Wedding blocks
• Corporate rates.

Policies will cover:

• Cancellations
• No-shows
• Early departures
• Group attrition
• Event deposits.

e. Customer Support Strategy

Guest support will operate 24 hours per day. Management will record:

• Complaints
• Maintenance requests
• Service recovery
• Review scores
• Repeat guest activity.

6. Operational Plan

Sean and Sharon Hotel will operate 24 hours a day, 365 days a year. Core departments include:

• Front office
• Reservations
• Housekeeping
• Engineering
• Security
• Food and beverage
• Sales
• Accounting
• Revenue management.

a. What Happens During a Typical Day at the Hotel?

The morning begins with:

• Night audit
• Breakfast
• Guest departures
• Housekeeping assignments
• Maintenance review
• Revenue meeting.

Housekeepers clean and inspect rooms. Engineering employees address:

• Air conditioning
• Lighting
• Plumbing
• Locks
• Elevators
• Other maintenance needs.

Sales staff communicate with:

• Corporate accounts
• Convention planners
• Wedding customers
• Group organizers.

Afternoons are dominated by guest arrivals. Evening operations include:

• Restaurant
• Lounge
• Banquets
• Meetings
• Guest services.

Overnight employees complete financial reconciliations and prepare the hotel for another day.

b. Production Process

The hotel service cycle is:

1. Market rooms.
2. Accept reservations.
3. Manage pricing.
4. Prepare rooms.
5. Check guests in.
6. Provide lodging and services.
7. Operate food, beverage and events.
8. Process checkout.
9. Clean and inspect rooms.
10. Return rooms to available inventory.

c. Service Procedure

Before arrival, guests may receive:

• Reservation confirmation
• Arrival instructions
• Parking information
• Upgrade opportunities
• Restaurant information.

At check-in, front desk employees confirm:

• Guest identity
• Reservation
• Payment authorization
• Room assignment.

d. Supply Chain

Hotel suppliers will include:

• Food distributors
• Beverage companies
• Hotel linen suppliers
• Cleaning product companies
• Guest amenity suppliers
• Furniture companies
• Technology providers
• Laundry companies
• Security contractors
• HVAC companies
• Elevator maintenance providers.

e. Sources of Income

Revenue will come from:

• Guest rooms
• Restaurant
• Bar
• Banquets
• Meetings
• Weddings
• Parking
• Laundry
• Convenience retail
• Other guest services.

7. Financial Plan

a. Amount Needed to Start Sean and Sharon Hotel

Sean and Sharon Hotel will require approximately $58 million to develop the proposed 120-room property.

This represents approximately $483,000 per guest room on an all-in development basis.

The hotel is considerably more expensive to develop than a limited-service roadside property because it includes:

• Restaurant
• Bar
• Commercial kitchen
• Meeting spaces
• Banquet facilities
• Pool
• Extensive public areas.

b. Costs Involved

Our preliminary budget is:

• Land Acquisition and Site Costs: $5,000,000
• Building Construction and Site Improvements: $30,000,000
• Guestroom and Public-Area FF&E: $7,000,000
• Restaurant, Kitchen, Bar and Banquet Equipment: $3,000,000
• Technology, Security and Hotel Systems: $1,200,000
• Architecture, Engineering, Legal, Permitting and Pre-Opening: $2,500,000
• Initial Working Capital: $2,000,000
• Financing and Reserve Costs: $2,300,000
• Development Contingency: $5,000,000.

Total Estimated Development Cost: $58,000,000.

c. Do You Need to Build a Facility?

Yes. This plan assumes construction of a new hotel. Management may still compare ground-up development with acquiring an existing property. The completed facility will include:

• Guestroom building
• Lobby
• Restaurant
• Kitchen
• Bar
• Meeting rooms
• Ballroom
• Pool
• Fitness center
• Back-of-house operations
• Parking.

d. Ongoing Expenses

Major expenses include:

• Payroll
• Benefits
• Food
• Beverages
• Utilities
• Air conditioning
• Laundry
• Housekeeping supplies
• Repairs
• Property insurance
• Workers’ compensation
• Property taxes
• Technology
• OTA commissions
• Marketing
• Security
• Credit-card fees
• Debt service
• Capital replacement.

e. Average Salary of Staff

Projected annual compensation includes:

• General Manager – $150,000 – $190,000
• Director of Operations – $100,000 – $130,000
• Director of Sales and Marketing – $105,000 – $140,000 plus incentives
• Controller – $100,000 – $125,000
• Revenue Manager – $85,000 – $110,000
• Chief Engineer – $90,000 – $115,000
• Executive Housekeeper – $75,000 – $95,000
• Food and Beverage Director – $90,000 – $120,000
• Executive Chef – $90,000 – $125,000
• Front Office Manager – $65,000 – $85,000
• Front Desk Agents – approximately $20 – $28 per hour
• Housekeepers – approximately $18 – $25 per hour
• Maintenance Staff – approximately $24 – $35 per hour.

f. Funding Sources

Potential funding includes:

• Sean and Sharon’s equity
• Outside investor equity
• Construction loans
• Permanent commercial real estate financing
• Private equity
• Family offices
• Hospitality investment funds.

One potential structure is:

• Owner/Investor Equity: $23 Million
• Debt Financing: $35 Million.

8. Financial Projection

a. Room Pricing

Room prices will change according to demand.

Illustrative rates include:

• Low-Demand Standard Room: $149 – $189
• Typical Standard Room: $189 – $259
• High-Demand Standard Room: $275 – $450+
• Junior Suite: $275 – $450+
• Executive Suite: $350 – $650+.

Major conventions, sporting events, holiday periods, and concerts may support considerably higher rates.

b. Occupancy and ADR Forecast

FY1:

• Occupancy: 72 Percent
• Blended ADR: approximately $220

FY2:

• Occupancy: 77 Percent
• Blended ADR: approximately $230

FY3:

• Occupancy: 81 Percent
• Blended ADR: approximately $240.

c. Sales/Revenue Forecast

Projected total revenue is:

• FY1: $10,800,000
• FY2: $12,700,000
• FY3: $14,500,000.

FY1 Revenue Mix

• Rooms – approximately $6.9 million
• Restaurant and Bar – approximately $1.8 million
• Banquets and Meetings – approximately $1.3 million
• Parking and Other Revenue – approximately $800,000.

FY2 Revenue Mix

• Rooms – approximately $7.8 million
• Restaurant and Bar – approximately $2.1 million
• Banquets and Meetings – approximately $1.7 million
• Other Revenue – approximately $1.1 million.

FY3 Revenue Mix

• Rooms – approximately $8.5 million
• Restaurant and Bar – approximately $2.4 million
• Banquets and Meetings – approximately $2.1 million
• Other Revenue – approximately $1.5 million.

d. Estimated Profit

Because hotels require substantial financing and depreciation, management will monitor EBITDA and accounting profit separately. Target EBITDA is approximately:

• FY1: 12 Percent – $1.30 Million
• FY2: 20 Percent – $2.54 Million
• FY3: 26 Percent – $3.77 Million.

Projected accounting performance after interest, depreciation, taxes, and financing costs may be approximately:

• FY1: $600,000 net loss
• FY2: $400,000 net profit
• FY3: $1.2 million net profit.

e. Profit Margin

Once stabilized, Sean and Sharon Hotel will target an EBITDA margin of approximately 25 to 30 percent. Net profit margins will be lower after:

• Interest
• Depreciation
• Taxes
• Financing costs.

f. RevPAR Projection

Projected room Revenue per Available Room is approximately:

• FY1: $158
• FY2: $177
• FY3: $194.

g. Break-Even Occupancy

The hotel will target an approximate break-even room occupancy level of 58 to 64 percent, depending on:

• Room rate
• Food and beverage performance
• Debt service
• Labor cost
• Utility costs.

h. Key Performance Indicators

Management will monitor:

• Occupancy
• ADR
• RevPAR
• Total revenue per occupied room
• Gross Operating Profit
• EBITDA
• Labor cost
• Food cost
• Direct booking percentage
• OTA commission expense
• Guest review scores
• Repeat guest rate
• Meeting-space utilization.

9. Growth Plan

a. How Do You Intend to Grow and Expand?

Sean and Sharon Hotel will use a combination of company ownership, acquisitions, management agreements, and joint ventures.

Stage One – Stabilize the Las Vegas Hotel

Management will first establish:

• Strong occupancy
• Competitive ADR
• Excellent reviews
• Stable employees
• Profitable meeting business
• Strong corporate accounts.

Stage Two – Increase Direct Bookings

The hotel will improve its direct reservation share to reduce unnecessary third-party commissions.

Stage Three – Expand Corporate and Meeting Business

The sales department will pursue:

• Corporate meetings
• Associations
• Wedding blocks
• Training events
• Small conventions.

Stage Four – Evaluate a Second Property

Management may acquire or develop a second hotel once the original property demonstrates stable profitability.

Stage Five – Develop a Regional Portfolio

Future properties may operate under the Sean and Sharon Hotel brand.

b. Where Do You Intend to Expand?

Potential markets include:

• Phoenix, Arizona
• Scottsdale, Arizona
• Los Angeles, California
• San Diego, California
• Denver, Colorado
• Salt Lake City, Utah
• Dallas, Texas
• Austin, Texas.

Expansion decisions will consider:

• Hotel demand
• ADR
• Occupancy
• Development cost
• Competition
• Convention activity
• Corporate demand
• Financing
• Available properties.

10. Exit Plan

Sean and Sharon Hotel will be developed as an institutional-quality hospitality and real estate asset capable of eventually being:

• Sold
• Refinanced
• Recapitalized
• Transferred to future management
• Combined with a larger hotel portfolio.

The preferred long-term exit strategy will be sale to a hospitality investor after the hotel reaches stabilized operating performance. Potential buyers include:

• Hotel investment companies
• Private equity firms
• Hospitality REITs
• Family offices
• Regional hotel operators
• Institutional real estate investors.

A potential buyer will evaluate:

• Occupancy
• ADR
• RevPAR
• EBITDA
• Guest reviews
• Property condition
• Meeting revenue
• Food-and-beverage performance
• Capital expenditure requirements
• Real estate value.

Sean and Sharon Hotel will maintain an ongoing capital replacement reserve. This is important because hotels regularly need to replace:

• Mattresses
• Carpets
• Furniture
• Technology
• HVAC equipment
• Restaurant equipment
• Public-area finishes.

Postponing these investments can make short-term profit look better while quietly reducing the property’s value.

Another exit strategy will be refinancing. After several years of stable performance, management may refinance the hotel and return part of the original investor capital without selling the property.

Sean and Sharon could also sell a majority stake while retaining minority ownership.

Ultimately, Sean and Sharon Hotel will be built as more than a Las Vegas building containing 120 rooms.

The goal is to create a professionally managed hospitality asset with strong room revenue, profitable meeting and banquet operations, memorable guest experiences, disciplined revenue management, valuable real estate, and an operating platform capable of supporting additional hotels.