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Free VC Directory

With any B-Plan Purchase
425 Page Capital Directory
Through Nov. 30

Business Plan Writer
$425 Flat Rate
No Templates Used
7 Day Turnaround

All Purchased Plans
Are Updated for 2020

Business Startup Guides
Checkout our new sister site!

Free Hostel 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.

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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
  • Loan Amortization and ROI Tools
  • FREE PowerPoint Presentation for Banks, Investors, or Grant Companies!

1.0 Executive Summary

The purpose of this business plan is to raise $250,000 for the development of a hostel while showcasing the expected financials and operations over the next three years. The Hostel, Inc. (“the Company”) is a New York based corporation that will provide customers with an outstanding hostel services offered to people traveling on a budget. The Company was founded by John Doe.

1.1 Products and Services

Hostel, Inc. will provide very affordable rooms to individuals traveling throughout the New York metropolitan area. Primarily, Management anticipates that people traveling from abroad, students, and people that are seeking cost effective travel will frequent the Hostel location. The business will have multiple revenue streams, which will allow the business to achieve maximum profitability by providing all hostel services that a customer could want from one location. The third section of the business plan will further describe the services offered by the Hostel.

1.2 The Financing

Mr. Doe is seeking to raise $250,000 from a lending institution in order to launch the operations of Hostel, Inc. The terms, interest rate, and loan covenants are to be determined during negotiation. However, this business plan assumes that the business will receive a 7 year loan with a 7% interest rate due on the outstanding principal balance. The financing will be used for the following: • Development of the Company’s Hostel location. • Financing for the first six months of operation. • Capital to purchase FF&E for the hostel.

1.3 Mission Statement

Hostel, Inc.’s mission is to become a recognized leader in its market for local and cost effective hostel and overnight stay services.

1.4 Mangement Team

The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the hostel 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 that are traveling on a budget.

2.0 Company and Financing Summary

2.1 Registered Name and Corporate Structure

Hostel, Inc. The Company is registered as a corporation in the State of New York.

2.2 Required Funds

At this time, the Hostel requires $250,000 of debt funds. Below is a breakdown of how these funds will be used:

2.3 Investor Equity

At this time, Management is not seeking an outside equity investor.

2.4 Management Equity

Mr. Doe will retain a 100% ownership interest in the business.

2.5 Exit Strategy

The Management has planned for one possible exit strategy. The strategy would be to sell the Company to a larger entity at a significant premium. Since, the hospitality 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.

3.0 Products and Services

Below is a description of the services offered by the Hostel.

3.1 Rental of Rooms

The Hostel facility intends to operate as a highly rated hostel facility that will feature a number of amenities commonly found in comparably priced hostels. The Company expects that the facility will feature 20 hostel style rooms. Each room will feature a full sized bed, a small television, and a small bathroom attached to the room. The business will charge approximately $50 per night for a stay in the Hostel.



4.0 Strategic and Market Analysis

4.1 Economic Outlook

This section of the analysis will detail the economic climate, the hospitality 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 sluggish. This slowdown in the economy has also greatly impacted real estate sales, which has halted to historical lows. Many economists expect that this recession will continue for a moderate period of time, at which point the economy will begin a prolonged recovery period.

4.2 Industry Analysis

Within the United States, there are approximately 48,000 businesses that own and operate one or more hospitality 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 hospitality 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 Hostel while concurrently branding the Company’s name among frequent travelers.

4.3 Customer Profile

The Hostel’s average client will be an lower to middle class man or woman that frequently enjoys traveling. Common traits among clients will include: • Annual household income not exceeding $35,000 • Will spend $50 per night with a stay with the Hostel. • Lives within the Continental United States or Europe • Will spend 3 to 7 nights with the Hostel during their stay within New York.

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 Hostel 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

  • • 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 Hostel reach its intended audience of people seeking low cost accommodations. This campaign will include the use of traditional print and media advertising as well as the Internet. The Hostel will also use an internet based strategy. This is very important as many people seeking local services, such as hostels, now the Internet to conduct their preliminary searches. Mr. Doe will register the Hostel with online portals so that potential customers can easily reach the business. The Company will also develop its own online website, which will feature e-commerce functionality so that the business can generate income from people that register for their stays on the internet. The Company will maintain a sizable amount of print and traditional advertising methods within local markets to promote the hostel services that the Company is selling.

5.3 Pricing

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

  • • Hostel, Inc. will have an annual revenue growth rate of 16% per year.

  • • The Founder will acquire $250,000 of debt funds to develop the facility.

  • • The 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. 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