Business Plan for a Hotel

Hotel Business Plan
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The Australian hotel industry continues to grow steadily, driven by the increasing numbers of both international visitors and domestic travellers.​ To have a strong start and continued success in the industry, operators should develop a sound hotel business plan, supported by thorough market research and a thought-through competitive strategy.

​What should be included in a hotel business plan?
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Either you develop a business plan for your hotel operations yourself or commission services of a professional business planner; the following business, market and financial aspects should be carefully considered and articulated in the document.  

​​The business

  • Concept of the business. Describe your core business idea, answering the following crucial questions: What type of services do we offer and who are our customers? Why would our customers want our services; what is our value proposition to them? How do we deliver our services?
  • Services. Elaborate on your services; describe your core and supplementary services and the pricing strategy.
  • Competitive advantage. Elaborate on your value proposition; explain your competitive strategy and why your services are better than other offers on the market.
  • Operations. Elaborate on how you deliver your services - your operating model, functional strategies, resources, competencies and capabilities. Explain how you achieve the superior quality, customer service and efficiencies which drive your competitive advantage.
  • Compliance. Compliance areas, such as adequate registrations, quality and safety, should be carefully addressed in your business plan.
  • Human resources. Effective organisational structure and HR strategy are vital for a successful hotel business. Devise and document strategies to effectively attract, screen, train, manage and retain staff for your business.
  • Mission & vision. Clearly state your mission - what does your business do, why and how. Articulate your vision - how you see the business in the future. Ensure that your business plan aligns with your mission and vision.
  • Goals & objectives. Set your goals - the ways to carry out your mission and progress towards your vision. Support your goals with specific, measurable, achievable, relevant, timebound (SMART) objectives to track the progress.
  • Historical & projected performance. Analise your business' historical performance; use this historical analysis and your goals to project your future performance.

The market

Ideally, any business planning process should start with market research and analysis. It is essential to base your business strategy and goals on what you’ve learnt about your industry and market. Market research included in your hotel business plan should cover the following major components:​

  • Industry overview. How is the Australian hotel industry structured and behaving? What macro and micro factors influence it? 
  • Market overview. What are the major characteristics of your markets? What do your customers want? What can they afford? How do they behave? How big is your market overall? Is there a place for your business in it? 
  • Competition analysis. Research your competitors; understand what they do to survive and prosper, their strengths and weaknesses. What are the key factors which make businesses in hotel industry succeed?
  • SWOT. Strengths, weaknesses, opportunities and threats (SWOT) analysis is crucial for hotel operators. What are the opportunities and threats presented by the factors outside of your business' control? How can your business take advantage of this, given its strengths and weaknesses, capabilities and aspirations?
  • Marketing strategy. Use your market analysis to devise a competitive marketing strategy on how to attract your customers. Develop a marketing plan - a tactical tool to execute your marketing strategy.

The finances

Your business plan should be supplemented by a financial plan, a document which would translate your business strategies and goals into numbers, help efficient capital requirement planning and performance tracking, and ascertain your business' financial viability. At the minimum, the following key projections should be included:

  • Startup/expansion costs, if needed, and the funding sources.
  • Sales projections should focus on the number of guests your hotel plans to accommodate in a given period, the core and supplementary services provided to them, the related revenue and costs.
  • Cash flow analysis should consider all incoming and outgoing cash, determining if the business would have enough funds to pay its bills.
  • Profit and loss account should demonstrate if the business is making a profit. An acceptable profit target should equal the minimum amount required for the operation to remain viable, be sufficient to remunerate the owners working in the business, and provide reasonable return on the funds invested in the business.
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​The summary

Do not forget to include a one-page executive summary at the beginning of your business plan. It will allow the readers to quickly understand the essential aspects of your business, before delving into the details.
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​How can Professional Business Plans help with your business plan?
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We have been working with the Australian hospitality industry since 2013, delivering concise and focused business plans that can be effectively reviewed by external parties, and followed and regularly updated by the business owners and managers.

  • We hold strong expertise and years of experience working with Australian accommodation providers.​
  • Our business plans are custom-made to fully reflect your business' concept, expertise, resources, capabilities and needs.
  • Our business plans are designed to serve as an effective action plan for setting up or expanding your business.
  • Our business plans are supported by detailed, properly researched and substantiated financial plans prepared by experienced CPA accountants.
  • We deliver business plans for hotels in all Australian states and territories, including New South Wales, Victoria, Queensland, Western Australian, South Australia, Tasmania, the Australian Capital Territory and the Northern Territory. 

To discuss your needs or order a business plan, call us on 02 8072 8929 or Request A Call Back.
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Professional Business Plans
is a CPA Practice
​For more information about CPA Australia, click here.

​​How much does it cost?
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Professional Business Plans can write a business plan for your hotel in three days. It costs from $1,285 incl. GST and includes market research and financial projections for one year.

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​Professional Business Plans is a CPA Practice
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We write professional business plans for hotel owners and managers across Australia, including Sydney, Melbourne, Brisbane, Gold Coast, Sunshine Coast, Cairns, Darwin, Perth, Adelaide and Hobart.