Traveling to different cities or countries wouldn’t be complete without a visit to one of the world’s most renowned hotels. The hotel business is a booming industry of glitz and glamour, and a lot of A-list celebrities, political dignitaries, and corporate moguls can agree.
While some people are too busy daydreaming about what their lives would be like if they were a fabulous heir or heiress to an international hotel brand tycoon, not many seem to recognize the challenges that come with running a hotel business. You may also like hotel sales plan examples.
For the rest of us who aren’t as privileged as the famous Paris Hilton, starting from scratch proves to be a struggle for many entrepreneurs. Hence, anyone who hopes to make a breakthrough in the marketplace would need a good business plan to begin with.
A hotel is a corporate establishment that offers lodging, and oftentimes, breakfast, lunch, and dinner meals and other services for travelers and other paying guests.
Hotels vary depending on the characteristics they possess, including the services that they provide, the hotel’s location, the state or origin in which it is located, price points, the number of rooms available, and whether the establishment is an independent firm or part of a chain operation. You may also see company plan examples.
If you’ve noticed, hotels found in the metropolitan area are often classified as upscale or luxury. Though you may find a few 2-star hotels around the area, some of which aren’t exactly located at the safest and most accessible places in the city. You’ve probably noticed how pricey hotel services can be as well. You may also like how to make a business plan.
Food and drinks taken from the hotel room’s refrigerator usually have a higher markup rate than any store in the marketplace. But this is exactly how hotels generate revenues and profits for the business to survive—through room sales and food and alcohol sales. You may also check out importance of business plan.
Operating a hotel business is no different from running a shopping center or a restaurant outlet. As a business owner, your primary goal is to cater to the demands of the public by providing a solution to their problems. In return, you can earn a profit to sustain the needs of your own family, along with the members of your staff. You might be interested in annual plan examples.
The hotel industry is home to one of the most creative and legendary business and marketing concepts as well. Hotels aren’t just buildings with rooms in it, because if you take a good look around you, many of these hotels are products of inventive ideas.
Some are century-old establishments that have become historic monuments since accommodating notable world leaders, even the infamous Adolf Hitler, while others are architectural masterpieces like the Marina Bay Sands in Singapore and the Burj Al Arab Jumeirah in Dubai. You may also see how to create a business plan.
And the best part about managing a hotel is that you don’t have to follow the rules! You have the freedom to design your hotel according to your specifications, employ individuals who best suit your business identity, and treat guests like actual visitors in your humble abode. You may also like strategic plan examples.
Many small hotel business owners even socialize with tourists and other guests to share what they know about the city to make your trip even more special. The personalized approach taken by most hoteliers is a clever strategy that can appeal to potential customers and recurring guests. You may also check out implementation plan examples.
Staying in a 5-star hotel for a night or two may be more than what our bank accounts can afford, but for many travelers, even if you haven’t booked a stay at the famous establishment, seeing some of these hotels before one’s eyes is an absolute must. A combination of a hotel’s history, architecture, and well-known guest list is what makes it legendary. And of course, a whiff of scandal makes it even more compelling to curious tourists. You may also see risk plan examples.
Here’s a list of some of the most popular hotels around the world:
Arguably the best-known hotel in all of Paris, the Ritz Paris gained public recognition thanks to its over-the-top décor and famous housing guests like French novelist Marcel Proust and fashion designer Coco Chanel.
Scenes for movies like Love in the Afternoon starring Gary Cooper and Audrey Hepburn were also filmed at the Ritz. It even made cameo appearances in novels including F. Scott Fitzgerald’s Tender is the Night and Ernest Hemingway’s The Sun Also Rises, where Hemingway also declared the hotel bar liberated from the Nazis at the end of WWII. In return, the Bar Hemingway was named in his honor. You may also like business plan guidelines examples.
If you’re looking for a hotel room fit for a king and queen, the Ritz Paris is definitely the perfect option.
Located in Cap d’Antibes, France, the Hotel du Cap-Eden-Roc is a glamorous hotel that once hosted the likes of the Duke and Duchess of Windsor and F. Scott and Zelda Fitzgerald, who were also frequent guests of the hotel.
Hotel du Cap-Eden-Roc is known for its refined luxury rooms, suites, and villas, not to mention its glittering settings overlooking the azure sea. The hotel also offers outstanding facilities, such as a Kids Club, thirty-three seafront cabanas, five tennis courts, a heated infinity pool, and a fashionable boutique. You may also check out market analysis business plan examples.
Located at the heart of the Riviera, the rustic charm and secluded privacy amid century-old pine trees is perfect for honeymooners and other paying guests hoping to escape the hustle and bustle of the city.
Originally built as a country home for the second Duke of Buckingham in the 1600s, the Cliveden House is one of the most famous Italian-style hotels in England. It’s guest list even include former British Prime Minister Winston Churchill and English comic actor Charlie Chaplin.
However, the Cliveden House is best known for its scandalous history where Britain’s Conservative Secretary of State for War John Profumo was caught having an affair with 19-year-old Christine Keeler, who was also rumored to be the mistress of a Russian spy, in 1961. Exposure of the affair caused a political whirlwind that soon brought down the government. You might be interested in business plan outline with examples.
The Beverly Hills Hotel, otherwise known as the “pink palace,” is an LA icon that has long been a favorite among many Hollywood stars since it first opened.
Visitors of the famous hotel are greeted by an elongated carpet at the entrance of the establishment, followed by a pink-hued mission-style building that sits on top of a hill that overlooks gigantic mansions of some of the world’s most notable screen legends and personalities in entertainment. You may also see operational plan for restaurant.
The hotel even has a heated pool that plays music from movie soundtracks underwater. Talk about an underwater concert you won’t find anywhere else!
The Plaza Hotel, which is a 20-story landmark located in the Midtown Manhattan neighborhood, is one of New York’s finest hotel and condominium units that has been a meeting place for important political gatherings, like when the Plaza Accord was signed among finance ministers of the United States, Japan, West Germany, France, and Britain. You may also like personal plan examples.
The Plaza has also had many cameos in movies like Bride Wars, starring Anne Hathaway and Kate Hudson, and Eloise at the Plaza, which is now a famous pink suite at the hotel. The Betsey Johnson-designed Eloise suite features pink-and-white striped walls and zebra-striped flooring that has attracted many celebrities and paying guests who hope to relive their childhood with the Eloise experience. You may also check out business operational plan examples.
And a little fun fact for our young readers, as much as we want to add the magical Tipton Hotel to the list, we’re pretty sure The Suite Life of Zac and Cody was based on a fictional story. But if it helps, the exterior of the Tipton Hotel was inspired by a real-life hotel in British Columbia called the Hotel Vancouver.
You’ve probably decided to follow your dreams and open your very own hotel. Your amazing concept to deliver unparalleled guest service has made you even more excited to start planning your investment. But before you begin searching for a location and designing your hotel blue print, you need to have a general business plan to guide you every step of the way. This will serve as your road map to the opening.
However, this is also the part where many entrepreneurs start pulling on their own hair.
The key to developing a simple business plan is knowing what to include and what not to include. To guide you, we’ve gathered the 10 essential components to include in your hotel plan:
An executive summary consists of two main parts: a mission statement and your company objectives. Your mission statement serves as the introduction to your plan. It’s typically a one-line statement that describes the essence of your company. This explains why you are in business or the market’s need for your services. The objectives or business goals of your plan will then specify what you hope to accomplish with this corporate venture.
To succeed in a competitive market, the concept you have for your hotel should contain a unique selling point. This general analysis is comprised of the distinctive qualities that differentiates your hotel business from others. Make sure to provide detailed information for this section to make it easier for investors and other stakeholder to grasp your ideas.
Define your industry. Identify the current industry trends as well as the current state of that market and explain how this may impact your business. Investors want to make sure you’re ready to enter the hotel industry, and your knowledge about such can greatly affect their decision to do business with you. You may also check out evaluation plan examples.
Market research and customer analysis is a vital aspect of your document. After all, you can’t serve a market you know nothing about. In-depth information about your target customers will help you determine the primary needs of this market segment in terms of location, amenities, and service.
Study your local and global competitors by conducting a SWOT analysis. Find out what makes you different from other existing establishments.
This is comprised of three main parts: marketing, distribution, and revenue management.
A marketing plan will help you determine your strategies and campaigns to attract new and recurring customers. You would also want third-party channels such as technology and the Internet to conduct your business strategies. You must then formulate pricing and yield techniques to use in order to generate better sales and achieve exceptional customer service.
This constitutes to the management responsible for running key aspects of the business. You need to identify the type of staff members and administrative body your hotel business requires, such as the number of employees, as well as their individual responsibilities. You may also see communication plan examples.
Be sure to include the bios of your entire team. Focus on business qualities that qualify you to become a successful hotel within the next decade or so.
A financial plan is a crucial component of any business plan. In this section, the capital investment for your business, operational expenses, and revenue projections for the next five years must be discussed concisely and clearly enough for stakeholders to comprehend.
If you plan on raising money for start-up costs, create an outline on how much is needed and by when. You would also need to explain how the business will generate a return on investment (ROI) for investors, or when the applied loans will be settled. You may also like management plan examples.
Finally, prepare a general checklist indicating important milestones that must be achieved. Your business plan is likely to contain the following:
Once you have crossed off each item on this list, your hotel is most likely to succeed.
Despite having great business ideas, all that won’t matter without a good business plan in place. The difference between a dreamer and an entrepreneur is their mind-set and attitude toward reaching for their professional goals. By putting your ideas into paper, you can turn a childhood dream into a reality!