A 5-star hotel business plan should include all of the luster that a 5-star hotel itself has – a careful description of the rooms and amenities, a cogent look at the market for the establishment, and a well-crafted marketing strategy to help promote the hotel. You need to show that your background is suitable for running the venture, that you know how to hire and train the sort of employees who are accustomed to giving top-notch service, and that you have the ability to generate sufficient cash flow to service all outstanding loans and investment stakes once construction is complete. If you are renovating an existing building as opposed to building from the ground up, that can help your financial forecast, but it's not imperative. No matter which route you take, make sure you cover these points:
• What is the hotel industry like in your city?
• Which are the major competing chains/locations nearest you?
• What is the common customer demographic?
• What were industry revenues last year and what is forecast for the next 3-5 years?
• What amount of capital do you require?
The use of funds should be as carefully worked out as possible – get quotes from providers or research comparable projects so you know what the costs will be for your 5-star hotel. You should also be able to create a pro forma that shows revenues from room rentals, event space, and other services on-site extending for at least five years from when you open your doors. Show your expenses for the same time period and use a working assumptions table and a sensitivity analysis to give financial backers a better idea of your likely performance. Need more help than this? MasterPlans has worked on dozens of hotel business plans since its incorporation in 2002 and our experts can develop a customized business plan that fits your needs in as little as two weeks. Call us today by dialing 877-453-2011.
