Is the Hotel business a good business to get into?
Lately I was listening to our local radio financial news report, it reminded me that Global Hyatt had a fairly significant corporate employee blood-letting recently, and others are sure to follow. Business travel is down, occupancy is down, rates are down, and RevPAR is down. Luxury is down; select-service is down; midscale is down. Every week, a different city in the STR reporting universe hits bottom.

so if you strting just now in this business you shoud have a good plan.



So if you are considering to develop a successful hotel or bed & breakfast business plan, you should account for several important trends in the global economy. How will these important trends impact your new hotel venture?
• The downturn in the economy, (expected) rise of inflation, increased unemployment and flat wages
• The downturn in real estate valuations in most metro areas
• The tightening credit market (which requires your business plan to be as professional as possible, if you are seeking debt financing)


Choose your target market ("customer persona") of your hotel then search and find about what is the market demand for your hotel?. Then think very carefully and evaluate the practicability work on it ,refined it and prove it work for your new hotel, and by that you Have found the foundation of your future business and may be it is the next big hotel idea

Then chose What kind of financing (e.g. debt, equity, etc.) will you need, and how much? what sources will you seek capital from (e.g. banks, VC/PE firms, angel investors, etc.)? what relevant experience do you and your management team have, which you can leverage to impress investors?
Click here for Sample business plans to inspire you


After that all it is important to market your hotel (what is your marketing plan)? Don't forget that your hotel is as good as your advertisement.
In 2008, experts estimate that more than 70% of travelers are using the Internet to find and research hotels before making a reservation. This makes any hotel's online presence more significant than ever before. So invest some of your money in building your hotel’s web site, and this can make the difference between mediocre results and success.

After you start to step your foot in the market find out Who are your hotel's direct (and indirect) competitors?, what is your "unfair" competitive advantage over your hotel competitors?.
Finally spend some time in putting a great "exit strategy" for your hotel business. You see, it's not enough to build a business worth a fortune; you have to make sure you have an exit strategy, a way to get the money back out.

That's it for now , see you in my next article about creating a great marketing and exit strategy plan