Free Hotel and Resort Business Plan
For Raising Capital from Investors, Banks, or Grant Companies!
Please note that the financials
in this complete free business plan are completely fictitious and may not
match the text of the business plan below. This free business plan demonstration
purposes only. If you are interested in purchasing the completed editable MS Word
and Excel documents for this business plan, please click the button below! Also,
the text of the business plan is formatted with a fully automated
table of contents.
It should be noted that there is no special software required to use these
templates. All business plans come in Microsoft Word and Microsoft Excel format.
Each business plan features:
- Excecutive Summary
- Company and Financing Summary
- Products and Services Overview
- Strategic Analysis with current research!
- Marketing Plan
- Personnel Plan
- 3 Year Advanced Financial Plan
- Expanded Financial Plan with Monthly Financials
- FREE 30 Page Sample Private Placement Memorandum
- FREE PowerPoint Presentation for Banks, Investors,
or Grant Companies!
1.0 Executive Summary
The purpose of this business plan is to raise $20,000,000 for the development of an expansive hotel and resort while showcasing the expected financials and operations over the next three years. The Hotel and Resort, Inc. (“the Company”) is a New York based corporation that will provide customers with an outstanding resort experience that will consist of premium hotel lodgings, an 18 hole golf course, an onsite restaurant, and a full service day spa. The Company was founded by John Doe.
1.1 Products and Services
Hotel and Resort, Inc. is seeking to become a premier resort location that will feature 200 rooms, an 18 hole golf course, a day spa, and a 5 star restaurant onsite. At this time, Mr. Doe is souring the potential location for the hotel and resort. He expects that the facilities will aggregately require approximately 20 acres of property. The business will have multiple revenue streams, which will allow the business to achieve maximum profitability by providing all vacation services that a customer could want from one location. The third section of the business plan will further describe the services offered by the Hotel and Resort.
1.2 The Financing
Mr. Doe is seeking to raise $20,000,000 from an investor(s). Mr. Doe expects to sell a 50% equity interest in the business in exchange for the requisite capital. The tentative terms of this agreement can be found in the second section of the business plan.
1.3 Mission Statement
Hotel and Resort’s mission is to become a recognized leader on a national level for its expansive and luxurious resort facility.
1.4 Mangement Team
The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the hotel management industry. Through his expertise, he will be able to bring the operations of the business to profitability within its first year of operations.
1.5 Sales Forecasts
Mr. Doe expects a strong rate of growth at the start of operations. Below are the expected financials over the next three years.
1.6 Expansion Plan
The Founder expects that the business will aggressively expand during the first three years of operation. Mr. Doe intends to implement marketing campaigns that will effectively target individuals within the target market domestically and internationally. The Company may seek to develop additional resort properties after the third year of operation.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Hotel and Resort, Inc. The Company is registered as a corporation in the State of New York.
2.2 Required Funds
At this time, the Hotel and Resort requires $20,000,000 of equity funds. Below is a breakdown of how these funds will be used:
2.3 Investor Equity
At this time, the Company is seeking to sell a 50% equity interest in the business for the requisite capital sought in this business plan. The investor(s) will also receive a seat on the board of directors and a regular stream of dividends starting in the first year of operation. Please reference the Company’s private placement memorandum for more information regarding the specifics of this investment.
2.4 Management Equity
After the requisite capital is raised, Mr. Doe will retain a 50% ownership in the business.
2.5 Exit Strategy
The Management has planned for three possible exit strategies. The first strategy would be to sell the Company to a larger entity at a significant premium. Since, the hotel and resort industry maintains a moderate risk profile once the business is established; the Management feels that the Company could be sold for ten to fifteen times earnings. The second exit scenario would entail selling a portion of the Company via an initial public offering (or “IPO”). After a detailed analysis, it was found that the Company could sell for twenty times earnings on the open market depending on the business’s annual growth rate and strength of earnings. However, taking a company public involves significant legal red tape. Hotel and Resort, Inc. would be bound by the significant legal framework of the Sarbanes-Oxley Act in addition to the legal requirements set forth in form S1 of the Securities and Exchange Commission. The Company would also have to comply with the Securities Act of 1933 and the Exchange Act of 1934. The last exit scenario would involve the use of a private placement memorandum to raise capital from private sources. This is also a significantly expensive process that requires the assistance of both an experienced securities law firm and an investment bank. Funds would be raised from private equity and merchant banking sources in exchange for a percentage of the Company’s stock.
3.0 Products and Services
Below is a description of the services offered by the Hotel and Resort.
3.1 Rental of Hotel Rooms
The Hotel and Resort facility intends to operate as a four or five star rated facility that will feature a number of amenities commonly found in comparably priced resorts. As stated in the executive summary, the Company expects that the final facility will feature 200 suite style rooms. Each room will have a king or two full sized beds, access to high speed internet, a luxurious bathroom, full cable access, a desk, and other quality amenities.
3.2 Golf Course
The Hotel and Resort will feature a full 18 hole golf course that will be of PGA championship quality. Currently, Management is sourcing a number of architects that will provide the business with a number of potential layouts that will create a moderately difficult course that will concurrently provide beautiful views of the areas surrounding the resort facility.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
This section of the analysis will detail the economic climate, the hotel and resort industry, the customer profile, and the competition that the business will face as it progresses through its business operations. Currently, the economic market condition in the United States is moderate. The meltdown of the sub prime mortgage market coupled with increasing gas prices has led many people to believe that the US is on the cusp of a double dip economic recession. This slowdown in the economy has also greatly impacted real estate sales, which has halted to historical lows.
4.2 Industry Analysis
Within the United States, there are approximately 48,000 businesses that own and operate one or more hotel/resort locations. Aggregately these businesses generate $90 billion dollars a year of revenue and provide jobs for 1.3 million people. Aggregate payrolls over the last five years have exceeded $24 billion dollars. The hotel industry is mature. The future growth rate of the industry is expected to remain in line with the growth of the general economy. Management believes that they key to remaining competitive in this field is to continually upgrade and improve the level of service offered by the Hotel and Resort while concurrently branding the Company’s name among frequent resort travelers. The marketing strategies that the Company intends to use to brand its image and name will be discussed in the next section of the business plan.
4.3 Customer Profile
In this section of the analysis, you should describe the type of customer you are seeking to acquire. These traits include income size, type of business/occupation; how far away from your business is to your customer, and what the customer is looking for. In this section, you can also put demographic information about your target market including population size, income demographics, level of education, etc.
4.4 Competitive Analysis
This is one of the sections of the business plan that you must write completely on your own. The key to writing a strong competitive analysis is that you do your research on the local competition. Find out who your competitors are by searching online directories and searching in your local Yellow Pages. If there are a number of competitors in the same industry (meaning that it is not feasible to describe each one) then showcase the number of businesses that compete with you, and why your business will provide customers with service/products that are of better quality or less expensive than your competition.
5.0 Marketing Plan
The Hotel and Resort intends to maintain an extensive marketing campaign that will ensure maximum visibility for the business in its targeted market. Below is an overview of the marketing strategies and objectives of the business.
5.1 Marketing Objectives
• Engage a broad based public relations firm targeted towards high end travel publications.
• Establish relationships with travel agents both domestically and internationally.
• Develop an online presence by developing a website and placing the Company’s name and contact information with online directories.
5.2 Marketing Strategies
Management intends to use a qualified advertising and marketing firm to help the Hotel and Resort reach its intended audience of resort goers. This campaign will include the use of traditional print and media advertising as well as the Internet. Direct advertising campaigns will be of significant importance to the Company as the business is offering its resort services to a specified group of upper middle and upper income people. Timely coverage of the Company and its resort will be further directed through ongoing press relations, news releases and feature stories targeted at key professional and resort communities and other media outlets. Publicity activities will be designed to generate ongoing coverage about the Hotel and Resort in targeted media by providing writers and editors with newsworthy releases, features, stories, briefs, and visual material for their columns and stories. In depth coverage may also be obtained about the Company by hosting in-house interviews to be conducted by our company spokesperson, John Doe. Additionally, conventions, resort/real estate development trade shows, online advertising activities, sales development and viral marketing campaigns will follow carefully orchestrated strategies by marketing personnel in conjunction with marketing experts. The Company may also use a number of TV and radio personalities to visit and experience the location so that they may “plug” the facility in lifestyle and travel columns during their respective interviews. The business will also maintain advertisements in lifestyle/travel magazines and other publications that are geared towards the Company’s targeted market.
In this section, describe the pricing of your services and products. You should provide as much information as possible about your pricing as possible in this section. However, if you have hundreds of items, condense your product list categorically. This section of the business plan should not span more than 1 page.
6.0 Organizational Plan and Personnel Summary
6.1 Corporate Organization
6.2 Organizational Budget
6.3 Management Biographies
In this section of the business plan, you should write a two to four paragraph biography
about your work experience, your education, and your skill set. For each owner or
key employee, you should provide a brief biography in this section.
7.0 Financial Plan
7.1 Underlying Assumptions
• Hotel and Resort will have an annual revenue growth rate of 16% per year.
• The Founder will acquire $20,000,000 of equity funds to develop the facility.
• The resort property will have an annual appreciation rate of 6% per annum.
7.2 Sensitivity Analysis
In the event of an economic downturn, the business may have a decline in its revenues. Traveling is a luxury and during times of deleterious economic conditions, the business may have issues with its top line income. However, the Company is targeting its services towards high end travelers who are less swayed by difficult economic climates. Additionally, the high margins generated by the business will ensure its continued profitability despite moderate decreases in revenue.
7.3 Source of Funds
7.4 General Assumptions
7.5 Profit and Loss Statements
7.6 Cash Flow Analysis
7.7 Balance Sheet
7.8 General Assumptions
7.9 Business Ratios
Expanded Profit and Loss Statements
Expanded Cash Flow Analysis