startup hotel business plan

Hotel Business Plan Template

Written by Dave Lavinsky

Hotel Business Plan

You’ve come to the right place to create your hotel business plan.

We have helped over 100,000 entrepreneurs and business owners create business plans and many have used them to start or grow their hotel companies.

Sample Hotel Business Plan Template

Below is a template to help you create each of the key elements of your own hotel business plan:

Executive Summary

Business overview.

Pegasus Hotel is a startup full-service independent luxury hotel in Austin, Texas. Owned by two local businessmen, Frank Girard and Miles Butler, it will serve the new up and coming district of the outskirts of Austin and cater to the locals and travelers who crave a luxurious and relaxing atmosphere. Pegasus Hotel will be a 10-story, 360-room hotel with a five-star restaurant and bar, relaxing pool and spa, 20,00 square feet of meeting and event space, a spacious and fully-equipped fitness center, and a view of scenic Austin. Pegasus Hotel will hold weddings and events, meetings, retreats, and those looking to unwind and be pampered while staying at the hotel. The service and amenities will be first class and the concierge will treat guests with extreme care and ensure guest satisfaction is held at an exceptional standard..

Service Offering

The following are the services and amenities that Pegasus Hotel will provide:

• 354 luxury rooms, two presidential suites, and four parlor suites
• Olympic size pool with adjacent hot tubs and surrounding cabanas
• First-class full-service spa
• First-class restaurant and bar
• Spacious fitness center
• Over 20,000 square feet of attractive meeting space for events
• Concierge and butler service
• Complimentary wifi
• Valet service
• Laundry service
• Business center

Customer Focus

Pegasus Hotel will target the population of Austin, Texas, its surrounding communities, and travelers visiting Austin for work or play. Guests will be mid to high level income, enjoy traveling, enjoy visiting spas and high-end restaurants, and work in the corporate or government sector.

Management Team

Pegasus Hotel will be owned by Frank Girard and Miles Butler. They will act in an Owner capacity, and will not be involved in the day to day operations of the hotel. Frank and Miles will hire the appropriate staff to ensure Pegasus Hotel is a profitable and successful business.

Lorenzo Falucci, General Manager, has over twenty years of experience in the hotel industry. He has most recently managed another independent boutique hotel in New York and was excited to be recruited by Frank and Miles to operate the Pegasus Hotel.

Lorenzo will hire Lisa Montgomery as the Director of Sales and David Jimenez as the Assistant General Manager. Lorenzo, Lisa, and David will be the senior management team of Pegasus Hotel. They will oversee all other department managers – Maintenance, Housekeeping, Front Desk/Guest Relations, and Food and Beverage. Each department manager will oversee various employees in their respective department and role. The Pegasus Hotel will have a large and sophisticated operation as each department is integral in the success of the hotel.

Success Factors

Pegasus Hotel will be able to achieve success by offering the following competitive advantages:

• Friendly, attentive, and highly responsive staff that caters to each guest and will be able to provide the best guest experience possible.
• Luxurious amenities throughout the hotel that will make each guest feel pampered.
• Modern and contemporary designed hotel tucked against a beautiful Texas landscape perfectly suited to host any event.
• Competitive rates and frequent guest discounts.

Financial Highlights

Pegasus Hotel is seeking $10,000,000 in debt financing to begin constructing the hotel and commence operations of the business. The funding will be dedicated towards securing the land lease and the hotel build-out and design. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff, furniture, fixtures, and equipment, initial inventory, and working capital. The breakout of the funding is below:

• Secure the land lot, architecture, build-out, and design: $6,000,000
• Hotel furniture, fixtures, and equipment: $2,000,000
• Initial inventory: $750,000
• Three months of overhead expenses (payroll, rent, utilities): $1,000,000
• Marketing & advertising: $150,000
• Working capital: $100,000

The following graph below outlines the pro forma financial projections for Pegasus Hotel.

Company Overview

Who is pegasus hotel.

Pegasus Hotel is a startup full-service independent luxury hotel in Austin, Texas. Owned by two local businessmen, Frank Girard and Miles Butler, it will serve the new up and coming district of the outskirts of Austin and cater to the locals and travelers who crave a luxurious and relaxing atmosphere. Pegasus Hotel will be a 10-story, 360-room hotel with a five-star restaurant and bar, relaxing pool and spa, 20,00 square feet of meeting and event space, and a view of scenic Austin. Pegasus Hotel will hold weddings and events, meetings, retreats, and those looking to unwind and be pampered while staying at the hotel. The mission statement of the hotel is to provide first class service and amenities.

The guests rooms will include luxury beds and bedding with best-in-class furniture and bathroom fixtures. Pegasus Hotel will also have a full-service spa that will be able to provide massages, facials, makeup and/or hair service, steam rooms, and a sauna. The Olympic-sized pool will have adjacent hot tubs with a swim-up bar and surrounding cabanas. Pegasus Hotel will be equipped with state-of-the-art fitness equipment in its spacious gym. The restaurant will be a high-end steakhouse that will feature entrees from a world-renowned chef and a wine list cultivated by the area’s most respected sommelier. There will also be over 20,000 square feet of meeting space that will hold weddings, bat mitzvahs, reunions, galas, and any special event.

Pegasus Hotel will be independently owned and operated and will feature its own reservation system and operational software. Each employee will be expertly trained and vetted to pass luxury industry guest service standards. Pegasus Hotel is committed to providing the best guest experience possible while maintaining a profitable hotel. Pegasus Hotel aims to be a step above the rest and be an unforgettable experience for all who step foot into the hotel.

Pegasus Hotel History

Pegasus Hotel is owned by two local businessmen, Frank Girard and Miles Butler. Frank and Miles have been friends and business associates for over thirty years. They became friends in college while attending The University of Texas at Austin. Frank is a real estate developer specializing in commercial real estate and multi-use land projects. Miles is a software engineer who has built multitudes of software programs for various companies. They have both been extremely successful in their careers and want to divest their investments in a large-scale full-service hotel in Austin, Texas.

Since incorporation, Pegasus Hotel has achieved the following milestones:

• Acquired a 40-acre lot on the outskirts of Austin, Texas.
• Registered Pegasus Hotel, LLC to do business in the State of Texas.
• Hired a consultant to conduct a feasibility study for a full-service hotel in Austin.
• Began developing reservation and operational management software for use at the hotel.
• Began the branding image, logo, website, and social media accounts for the staffing agency.
• Applied for a liquor and mixed beverage permit with the Texas Alcoholic Beverage Commission.
• Hired an architect to begin the design phase of the hotel.

Pegasus Hotel Services

The following will be the services and amenities Pegasus Hotel will provide:

Industry Analysis

The hotel industry is expected to increase to a $133 billion in the next five years. The hospitality industry will benefit from increases in travel spending, corporate profit and general consumer spending.

As consumers earn higher incomes and businesses replenish their budgets, travel spending is projected to increase over the next five years. Inbound trips by non-US residents are anticipated to rise 22% over next the five years, while domestic travel is expected to grow 9% during the same period.

The industry will see particularly strong future growth in extended-stay hotels, boutique hotels, spa and health retreats and resorts segments. As demand for these auxiliary services picks up, industry employment is anticipated to recover and increase over the next five years. Industry players are also expected to continue expanding abroad into emerging economies, such as Asia, Eastern Europe and South America. These foreign markets are expected to somewhat detract from domestic capital investment, as they offer higher growth prospects for industry operators.

Customer Analysis

Demographic profile of target market.

The precise demographics for Austin, Texas are:

Customer Segmentation

Pegasus Hotel will primarily target the following customer profiles:

• Individuals and families who have disposable income (mid to high level)
• Frequent travelers
• Individuals who dine out and visit spas frequently
• White collar workers (corporate or government office)

Competitive Analysis

Direct and indirect competitors.

Pegasus Hotel will face competition from other companies with similar business profiles. A description of our direct competitors is below.

Hotel Ella is a historic boutique hotel located in Austin, Texas. Located in downtown Austin and walking distance to the University of Texas campus, Hotel Ella is a stylish boutique hotel housed in the historic Goodall Wooten House, one of Austin’s original landmark estates. Constructed in 1900, the Greek revival-style mansion underwent an extensive renovation in 2013, and now offers the perfect balance between modernity and a rich history rooted in the fabric of the neighborhood and the university. Hotel Ella has 47 guest rooms, a cabana-lined pool, and a wrap-around veranda overlooking the front lawn. Hotel Ella features beautifully designed outdoor and indoor spaces perfectly suited for a vacation, wedding, or corporate event. The hotel also features a diverse collection of Texas Modernist works around the hotel grounds.

All guests of Hotel Ella are treated to warm southern hospitality and superior personalized service during their stay. The historic property is appointed with a variety of elegant 21st century amenities. Hotel Ella also offers the following amenities and guest services:

• Complimentary 24-hour guest services
• Complimentary high-speed wi-fi access
• Complimentary electric car charging station
• Complimentary morning newspapers available in the historic mansion
• Complimentary coffee stations from 5am – 11am
• Twice-daily housekeeping service
• Cabana-lined outdoor pool
• Fitness center
• Same-day valet laundry services
• In-room dining by Goodall’s
• Business services: photocopying, printing, postal services, and supplies

Hotel Ella also welcomes dogs of all sizes at no additional fee.

Kimber Modern

Kimber Modern is located in the hip SoCo district of Austin and is intended to draw in the independent urban traveler seeking a unique escape. It is architecturally designed with clean lines and abundant light filtered through canopies of oaks in an artfully landscaped Courtyard. The hotel also encompasses absolute comfort and attention to detail while providing technologically sophisticated rooms in their boutique guest rooms. Guests booking at Kimber Modern will receive complimentary beverages, parking, and WiFi.

Kimber Modern offers the following hotel amenities to its guests:

• Off street covered parking
• Electric car charging station
• Keyless entry
• Complimentary WiFi throughout the hotel
• Multi-level courtyard with a 25-foot glass water feature with multiple areas to lounge
• Jura self-serve coffee system featuring a variety of coffee drinks 24/7
• Beverage bar 24/7
• Gourmet teas
• Virtual concierge – computer, printer, and copier
• Meeting space available for groups
• 3pm check-in and noon check-out

Guests are also available to book the entire hotel for their group.

The Cat Noir Hotel

The Cat Noir Hotel is an award-winning 14-room boutique hotel located in the heart of Austin’s east side. The European-styled boutique hotel includes a restaurant and bar partner, Uncle Nicky’s Italian Specialties. Uncle Nicky’s offers a relaxed all-day dining experience that is themed after cafes in northern Italy. The Cat Noir Hotel opened in 2016 and has been ranked #2 by Travel + Leisure’s World’s Best Awards and Top 20 Best Hotels in Texas by Conde Nast Traveler.

The Cat Noir Hotel’s contemporary design maintains a sense of warmth and a unique aesthetic that is felt through the lobby, outdoor spaces, and each of the unique guest rooms. In addition to the design elements, The Cat Noir Hotel boasts the following features:

• Private roof deck for guests to enjoy the stunning views of downtown, the Texas Capitol, and the University of Texas
• Outdoor patio and courtyard areas on all levels
• Artwork from local artists

Each of the guest rooms include Juliet balconies with neighborhood views, fine linens, and Simmons luxury plush mattresses.

Competitive Advantage

Pegasus Hotel will be able to offer the following advantages over their local competition:

Marketing Plan

Brand & value proposition.

Pegasus Hotel will offer the unique value proposition to its target local market:

• Professional and attentive staff dedicated to ensure complete guest satisfaction.
• Various amenities throughout the hotel for any guest to enjoy.
• Modern and contemporary design with beautiful Texas views throughout the entire hotel.
• Competitive rates.

Promotions Strategy

The promotions strategy for Pegasus Hotel is as follows:

Social Media

Pegasus Hotel will invest in advertising the hotel on social media platforms Facebook, Instagram, LinkedIn, and Twitter. By using targeted social media marketing, Pegasus Hotel will be able to reach those who frequent nice restaurants and spas and travel frequently.

Website/SEO Marketing

Pegasus Hotel will invest in a strong SEO presence so that when someone enters “Austin boutique hotel” or “first class hotel near me” in their Google or Bing search bar, Pegasus Hotel is at the top of the list. Their website will feature photos of the guest rooms, meeting areas, pool, spa, fitness center, and restaurant/bar. Future guests will be able to make a reservation to book their future stay on the website and access contact information for either a Director of Sales or General Manager of the property.

Pegasus Hotel will request all requests for news stories regarding the development of the hotel, owner/developer information, opening dates, etc. By accommodating the press’ requests for stories, it will also be free advertising for the public to learn about the new up and coming luxury hotel.

Frank and Miles will invest in a billboard in downtown Austin where the mid to upper class of residents frequent. The hotel will be minimalistic but eye-catching. It will feature an attractive rendering of the hotel along with the website. Curious passersby will be directed to visit the hotel’s website for detailed information.

Third Party Booking Websites

Once the hotel is nearing 60 days towards opening, all of the third-party websites will feature Pegasus Hotel so that travelers visiting Austin will be able to see it listed as an option for Austin hotels.

Bridal Shows and Wedding Industry Events

Pegasus Hotel will have a table at all of Austin’s bridal shows and wedding industry events. It will attract those couples searching for a venue to accommodate their special day.

The pricing of Pegasus Hotel will be moderate and on par with competitors so customers feel they receive value when purchasing its guest rooms and services.

Operations Plan

The following will be the operations plan for Pegasus Hotel.

Operation Functions:

• Frank and Miles will be the owners of the hotel and hire the appropriate staff to manage the hotel. Frank will act as CFO of the hotel and Miles will be in charge of the reservation system and hotel operations software. Miles developed the software and will focus on making sure it’s always functional and efficient.
• General Manager will be hired to oversee the entire staff and hotel operations to include guest satisfaction, oversee vendor contracts, events, and making sure that each department is running effectively and efficiently.
• Assistant General Manager to assist the General Manager with overseeing the staff, with particular attention to guest satisfaction and front desk operations.
• Director of Sales will be hired to sell events, corporate accounts, and group bookings for the hotel.
• Maintenance Engineer will be hired to attend to all mechanical and plumbing issues that may arise.
• Executive Housekeeper will be hired to lead the team of housekeepers to make sure all areas of the hotel are being cleaned to Pegasus Hotel standards and that each guest is receiving all accommodations to their requested schedule.

Milestones:

Pegasus Hotel will have the following milestones completed in the next six months.

8/1/202X – Purchase land lot and break ground on new hotel business.

8/15/202X – Finalize architectural renderings and hire a General Contractor to build the hotel.

9/1/202X – Finalize contract with advertising company for them to design the branding image of the hotel, logo, website, billboard, and social media accounts.

9/15/202X – Begin social media and website advertising campaign. Billboard with a teaser of ‘Coming Soon’ will go up in downtown Austin.

10/5/202X – Hire General Manager and Director of Sales.

10/15/202X – Attend annual Wedding Industry Event with a table to begin advertising Pegasus Hotel.

11/1/202X – Pegasus Hotel will go live on third party booking websites.

11/15/202X – Remainder of staff will be hired to begin training program.

11/30/202X – Final walk-thru of newly constructed Pegasus Hotel.

12/15/202X – Begin furnishing and interior design of the hotel.

1/1/202X – Grand Opening of Pegasus Hotel.

Lorenzo will hire Lisa Montgomery as the Director of Sales and David Jimenez as the Assistant General Manager. After an exhaustive search, Lorenzo believes has found the next two senior management positions to ensure the success of the hotel. Each comes with an impressive resume of prior hotel sales and operational experience.

Lorenzo, Lisa, and David will be the senior management team of Pegasus Hotel. They will oversee all other department managers – Maintenance, Housekeeping, Front Desk/Guest Relations, and Food and Beverage. Each department manager will oversee various employees in their respective department and role. The Pegasus Hotel will have a large and sophisticated operation as each department is integral in the success of the hotel.

Lorenzo, Lisa, and David will meet with Frank and Miles monthly to update them on progress and overall operations and sales efforts of the Pegasus Hotel.

Financial Plan

Key revenue & costs.

The revenue drivers for Pegasus Hotel are the revenues it will collect when guests book a reservation at the hotel. The hotel will also collect revenues from its restaurant and bar, spa, and events it will host.

The cost drivers will be the payroll and overhead costs to staff the hotel. Other costs will involve the land lease, utilities, marketing costs, and technology fees. There will also be costs associated with the maintenance of the hotel, food and beverage inventory, spa inventory, and hotel guest room supplies.

Funding Requirements and Use of Funds

Key assumptions.

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

• Initial Number of Room Nights Sold per Month: 8,000
• Number of Events per Month: 30
• Land Lease per Year: $1,500,000

Financial Projections

Income statement, balance sheet, cash flow statement, hotel business plan faqs, what is a hotel business plan.

A hotel business plan is a plan to start and/or grow your hotel business. Among other things, it outlines your business concept, identifies your target customers, presents your hotel marketing plan and details your financial projections.

You can  easily complete your hotel business plan using our Hotel Business Plan Template here .

What Are the Main Types of Hotel Companies?

There are many types of hotel companies. Most hotels are affiliated with a hotel franchise company. Other hotel companies distinguish themselves by star level-  4 to 5-star hotels are on the higher end of rate and amenity offerings, whereas 2 to 3-star hotels cater more towards the everyday business travelers and families.

What Are the Main Sources of Revenue and Expenses for a Hotel Business?

The primary source of revenue for a hotel business are the room fees it charges each guest to stay at the hotel. Revenues are also collected for different amenity offerings, such as room service,  restaurant and bar revenue, spa revenues, and guest shop revenue.

The key expenses for a hotel business are the costs for inventory, maintenance, supplies, furniture, fixtures, and equipment, technology, and payroll of the staff. Other expenses will be the rent, utilities, and overhead costs, if applicable.

How Do You Secure Funding For Your Hotel?

Hotel businesses are most likely to receive funding from banks. Typically you will find a local bank and present your business plan to them. Angel investors and other types of capital-raising such as crowdfunding  are other common funding sources. This is true for a business plan for a hotel, a resort or a boutique hotel.

What are the Steps To Start a Hotel Business?

Starting a hotel business can be an exciting endeavor. Having a detailed roadmap of the steps to start a business will help you stay focused on your business goals and get started faster.

• Develop A Hotel Business Plan - The first step in starting a business is to create a comprehensive business plan that outlines all aspects of the venture. This includes market research to identify the potential market size and target audience , the hotel’s services, pricing strategies and a detailed financial forecast.  
• Choose Your Legal Structure - It's important to select an appropriate legal entity for your hotel business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your hotel business is in compliance with local laws.
• Register Your Hotel Business - Once you have chosen a legal structure, the next step is to register your hotel business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 
• Identify Financing Options - It’s likely that you’ll need some capital to start your hotel business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 
• Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 
• Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 
• Acquire Necessary Hotel Equipment & Supplies - In order to start your hotel business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 
• Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your own hotel business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective digital marketing strategy including SEO and paid advertising . You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a new hotel business:

• How to Start a Hotel Business

Where Can I Get an Example Hotel Business Plan PDF?

You can download our example hotel business plan PDF template here . This is a business plan template you can use in PDF format.

Other Helpful Business Plan Templates

Franchise Business Plan Template Resort Business Plan Template Bed and Breakfast Business Plan Template

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How to Start a Hotel Business: Everything You Need to Know

Wondering how to start a hotel business? You’re not alone. One of the first-ever hotels , as we’ve come to know them, was started in Exeter, England in 1768. Today, the industry has skyrocketed to be part of one of the largest in the world.  But dreaming of starting a hotel business and actually doing it are two completely different things. That's where we come in. 

In this guide, we’ll teach you how to start a hotel business with step-by-step instructions, expert advice, and actionable tips. Keep reading to discover the fundamentals all hotel businesses need to succeed.

The steps we cover in this guide:

• Step 1: Find a market need
• Step 2: Craft your strategic goals
• Step 3: Run the numbers
• Step 4: Review financing options
• Step 5: Do your paperwork
• Step 6: Hire and train your team
• Step 7: Draft a marketing plan
• Step 8: Launch your hotel business

Discover how to start a hotel business in 8 steps:

Step 1: find a market need..

The first and most important step when learning how to start a hotel business is to gain a thorough understanding of the hospitality industry worldwide, as well as in your location. To get started, find your favorite hotel news sources , then set aside time each day or week to stay informed. Once you have some familiarity with the industry, it’s time to dive into the market research for your hotel.

Let us help you start your hotel business

Cvent's resources library is a great place to start. It's where you can read the latest news, thought leadership, and best practices from a wide variety of industry experts. The goal of your industry research is to get a clear idea of whether you can be competitive in your market. Also, what characteristics your hotel will need in order to succeed. 

Rather than starting with an idea and making the research fit, try to find an area of need in your market. What audiences are underserved? Where is demand outpacing supply? What does your location need in terms of hospitality and accommodation?

To give you a good understanding of where you’ll fit in, your market research should include:

• Property type. All hotels are not built the same. The industry is made up of resorts, spas, airport hotels, all-inclusives, hostels, boutiques, and many other property types. Determine what property type you plan to offer and what other options in that category exist in your location.
• Hotel size. Closely related to your property type is the hotel size. How many guest rooms will you offer, and how does that compare to your competitors?
• Star rating. What level of service and hotel amenities do you plan to offer?
• Location. What region will you operate in? Is demand increasing in the area? What location amenities, like airports, beaches, or event venues , will you be in close proximity to?
• Brand affiliation. Will you be a part of a larger brand’s umbrella? Being affiliated with a brand can help with marketing , business intelligence, pricing, and audience targeting.
• Extra amenities. What services or amenities are important for hotels of your type and star rating in your location? Things like free Wi-Fi, meeting space, a pool, or wedding services  are all important, depending on your target audience.
• Guest demographics. How would you define the types of guests who may frequent your location? What is the purpose of travel, and what are some common characteristics of these travelers? Knowing whether you are targeting business travelers, families, couples, solo travelers, retirees, or other demographic groups will help you to craft your marketing plan and hotel concept.

All of this research should give you a good idea of your main competitors and target audience. Those two pieces of information will determine everything else about your property, from budget and financing to marketing and daily operations. Spend time on this step to make sure you’ve found a true need in the market. You’ll be better prepared for success.

You can utilize tools like Cvent's Hotel Business Intelligence™ Software Solutions to provide you with the transformative business insights needed to conduct your market research and benchmark against the competition.

Step 2: Craft your hotel's strategic goals.

Once you have an understanding of market needs, you’ll need to create a smart solution to fill that gap. Your unique combination of amenities, concept, decor, marketing, location, and services can help you stand out from the crowd and capture market share if you approach it strategically.

Consider how you’ll approach pricing, revenue management , sustainability, customer satisfaction, events, and other market needs when crafting your goals. As with all goals, they should be S.M.A.R.T - specific, measurable, attainable, relevant, and time-based. According to the Naples Hotel Group , an expert hotel development firm, some of the best goals a hotel owner can focus on include: 

• Measuring and increasing customer satisfaction.
• Creating a solid revenue management system.
• Building a strong online reputation.
• Attending at least one hotel industry conference .
• Considering working with a consulting firm to bypass the common roadblocks new hotel owners face.

Make sure the needs of the market and your target audience, along with your business needs, help determine your goals. This will ensure that everything you do helps your customers, as well as your bottom line.

You can use a hotel business plan template to outline the results of your research and planning, including your competitive advantage, goals, and your plan to get those results.

Step 3: Run the numbers.

With your goals and plan in place, it’s time to run the numbers to make sure you'll be profitable. Using your market research, you can estimate key factors like room pricing, vacancy rates, RevPAR (revenue per available room), and operating costs. A basic overview of hotel finances will help you hire the right revenue manager and sales team later on. The two key areas to focus on are profitability and any external factors that may affect your hotel business. You’ll also need to estimate initial costs for your hotel business. This includes startup and hiring costs, licensing, permits, construction, renovations, and your first year of operations.

Set up a few scenarios in your forecasting to see how key decisions affect the potential profitability of your business. For instance, do you want to buy or build? Buying into a franchise or taking over an existing hotel building has lower startup costs, unless you have to renovate extensively. But it also requires you to establish your new hotel identity, which can be a challenge depending on the current state of the business. On the other hand, building a hotel, while usually considerably more expensive upfront, can provide a solution to a lack of available buildings and can be more lucrative in the long run. 

Step 4: Review financing options for your hotel business.

Once you decide on the right financial plan for your business, you’re ready to fund it. There are a number of available options for financing your hotel business. Jim Pendergast, Senior Vice President and General Manager of altLINE , discussed this topic in a recent interview with Cvent.

“It's important to understand the full scope of financing options available for your hotel's funding," he said. "Generally, you have two commercial financing categories when opening your hotel: traditional credit or specialty credit.

With traditional credit lines, you receive financing based on long-term assets. These are things like real estate owned by your hotel as well as cash flow projections and calculations submitted during underwriting. Lenders review these assets before awarding your loan.

With specialty credit, you'll receive financing or credit lines based on near-term assets. This might be hotel equipment or invoices from accounts receivable. The idea is these backings are more liquid than what's needed in traditional lending.

Both traditional and specialty financing are appropriate vehicles for hotels depending on your capital needs. However, the larger and more established your hotel franchise, the more specialty lending could make ongoing sense. This is because large hotels manage significant account receivables operations. 

Consider the amount of credit card transactions that must be administered. Also, hospitality-related vendor operations happening within the establishment. The larger your AR activities, the more something like AR-based asset lending and similar specialty lending might benefit you.”

Step 5: Do your paperwork.

There are many important legal, regulatory, and insurance requirements to fulfill in order to establish any new business. Your hotel business is no different. 

Consult with your legal, insurance, accounting, and operations teams to determine the requirements for your location. At a minimum, you’ll need to set up a business structure and get business insurance. You will also likely need building or renovation permits, hotel licensing, and licensing for serving food and alcoholic beverages. There will also be a number of health and safety requirements as you complete your building or renovation process. 

All of this paperwork is not the motivating factor for getting into the hospitality industry, but it is important. Work with your team to check requirements at the local, state, and federal level. Additionally, keep on top of the process throughout so you don’t have to repair costly mistakes later.

Modern hotel management begins here

Step 6: Hire and train your hotel team.

A business is only as good as the team members that contribute to its success. By hiring great employees at all levels, you’ll set yourself up to deliver value to your guests and become a market leader.

Many hotels opt to hire for executive and departmental positions first, setting the tone and direction. These leaders can then identify what they want to see within their teams and how many staff members they need. Each team should identify the roles and skills they’re looking for, as well as developing a plan to reach and source great new hires.

Make sure that your application and interview processes are easy for candidates so that you don’t introduce needless friction. Find ways to communicate your core mission, values, and approach to this new business throughout the hiring process. This will help you attract candidates who share your vision.

Once you’ve hired a great team, take the time to onboard and train them. This is an incredibly important step that will help everyone in the long run. Any employees who will interact with guests should receive extra training on customer service and guest relations so that they’re ready to lend a helping hand, regardless of whether it’s in their job descriptions.

Focus from the beginning on becoming the employer of choice in your market. You’ll attract a stellar team that’s ready to help you become a market leader.

Step 7: Draft a marketing plan.

You’re now ready to share your hotel concept with the world. Well in advance of opening, you’ll need to spread the word and set yourself up for a profitable launch. 

Your hotel marketing plan is an important part of your overall business strategy. It guides your decision-making on decor, daily operations, communications, customer service, and more. 

Think back to the target audience that you identified in your market research. Using that initial audience, you can now conduct more in-depth customer research to determine who your customers are. Also, where you’ll find them, how you’ll communicate with them, and how they define value.

Hotel marketing made simple

Hotel marketing expert and Co-Founder of Saffron Key, Ben Weagraff, advises that there is no one-size-fits-all plan for new hotel businesses.

“There’s a number of strategies that can work very well,” he told SiteMinder . “But they depend on the hotel itself; its digital properties (including website , email relationships , the strength of social media channels ) and what exactly the hotel is trying to do.”

He goes on to note: “However, generally these techniques present a good repeatable path towards driving high-value customers. The greatest thing about content marketing is that it is low-cost, measurable, repeatable, and it builds upon itself. Once the foundation is in place, customers roll in at increasing rates.”

If you’re looking for ideas for inspiration, check out  Marriott’s marketing strategy . Also, be sure to check out all of Cvent's hotel marketing solutions  to help guide you throughout the process.

Step 8: Launch your hotel business.

At this point, you’ve put in the work to open a profitable and high-quality hotel business for your market. You’ve got the plan and the team to make your vision a reality. Now it’s time to launch.

The goal of your launch is of course to introduce your hotel to guests. But it’s also a great opportunity to introduce yourself to the local community, key stakeholders, influencers, and potential partners. Put your best foot forward with these audiences by planning a grand opening event that reflects your mission and values.

Use event planning and diagramming tools to create your layouts, collaborate with vendors, and assign tasks to team members. As long as you focus on building relationships with your community, investors, and potential clients, your grand opening will be a success. 

Now you know how to start a hotel business using proven strategies from across the industry.

Now that you know how to start a hotel business, it's time to start thinking about reputation. Read on for  hotel reputation management tips every hotelier should know.

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How to Write a Successful Hotel Business Plan + Template

Creating a business plan is essential for any business, but it can be especially helpful for hotel businesses who want to improve their strategy and/or raise funding.

A well-crafted business plan not only outlines the vision for your company, but also documents a step-by-step roadmap of how you are going to accomplish it. In order to create an effective business plan, you must first understand the components that are essential to its success.

This article provides an overview of the key elements that every hotel business owner should include in their business plan.

Download the Ultimate Hotel Business Plan Template

What is a Hotel Business Plan?

A hotel business plan is a formal written document that describes your company’s business strategy and its feasibility. It documents the reasons you will be successful, your areas of competitive advantage, and it includes information about your team members. Your business plan is a key document that will convince investors and lenders (if needed) that you are positioned to become a successful venture.

Why Write a Hotel Business Plan?

A hotel business plan is required for banks and investors. The document is a clear and concise guide of your business idea and the steps you will take to make it profitable.

Entrepreneurs can also use this as a roadmap when starting their new company or venture, especially if they are inexperienced in starting a business.

Writing an Effective Hotel Business Plan

The following are the key components of a successful hotel business plan:

Executive Summary

The executive summary of a hotel business plan is a one to two page overview of your entire business plan. It should summarize the main points, which will be presented in full in the rest of your business plan.

• Start with a one-line description of your hotel company
• Provide a short summary of the key points in each section of your business plan, which includes information about your company’s management team, industry analysis, competitive analysis, and financial forecast among others.

Company Description

This section should include a brief history of your company. Include a short description of how your company started, and provide a timeline of milestones your company has achieved.

If you are just starting your hotel business, you may not have a long company history. Instead, you can include information about your professional experience in this industry and how and why you conceived your new venture. If you have worked for a similar company before or have been involved in an entrepreneurial venture before starting your hotel firm, mention this.

You will also include information about your chosen hotel business model and how, if applicable, it is different from other companies in your industry.

Industry Analysis

The industry or market analysis is an important component of a hotel business plan. Conduct thorough market research to determine industry trends and document the size of your market. 

Questions to answer include:

• What part of the hotel industry are you targeting?
• How big is the market?
• What trends are happening in the industry right now (and if applicable, how do these trends support the success of your company)?

You should also include sources for the information you provide, such as published research reports and expert opinions.

Customer Analysis

This section should include a list of your target audience(s) with demographic and psychographic profiles (e.g., age, gender, income level, profession, job titles, interests). You will need to provide a profile of each customer segment separately, including their needs and wants.

For example, a hotel business’ customers may include:

• Business travelers
• Leisure travelers
• Groups and conventions
• Wedding parties
• Local residents

You can include information about how your customers make the decision to buy from you as well as what keeps them buying from you.

Develop a strategy for targeting those customers who are most likely to buy from you, as well as those that might be influenced to buy your products or hotel services with the right marketing.

Competitive Analysis

The competitive analysis helps you determine how your product or service will be different from competitors, and what your unique selling proposition (USP) might be that will set you apart in this industry.

For each competitor, list their strengths and weaknesses. Next, determine your areas of competitive differentiation and/or advantage; that is, in what ways are you different from and ideally better than your competitors.

Below are sample competitive advantages your hotel business may have:

• Location : if your hotel is located in an ideal spot for leisure or business travelers, this could be a key competitive advantage
• Amenities : if your hotel offers unique amenities that are appealing to your target market segments, this could give you a leg up on the competition
• Customer service : if you focus on delivering exceptional customer service, this could be a key selling point

Marketing Plan

This part of the business plan is where you determine and document your marketing plan. . Your plan should be clearly laid out, including the following 4 Ps.

• Product/Service : Detail your product/service offerings here. Document their features and benefits.
• Price : Document your pricing strategy here. In addition to stating the prices for your products/services, mention how your pricing compares to your competition.
• Place : Where will your customers find you? What channels of distribution (e.g., partnerships) will you use to reach them if applicable?
• Promotion : How will you reach your target customers? For example, you may use social media, write blog posts, create an email marketing campaign, use pay-per-click advertising, launch a direct mail campaign. Or you may promote your hotel business via public relations (PR), speaking engagements, or other thought-leadership activities.

Operations Plan

This part of your hotel business plan should include the following information:

• How will you deliver your product/service to customers? For example, will you do it in person or over the phone only?
• What infrastructure, equipment, and resources are needed to operate successfully? How can you meet those requirements within budget constraints?

The operations plan is where you also need to include your company’s business policies. You will want to establish policies related to everything from customer service to pricing, to the overall brand image you are trying to present.

Finally, and most importantly, in your Operations Plan, you will lay out the milestones your company hopes to achieve within the next five years. Create a chart that shows the key milestone(s) you hope to achieve each quarter for the next four quarters, and then each year for the following four years. Examples of milestones for a hotel business include reaching $X in sales. Other examples include adding new locations, launching a new product/service, or hiring new employees.

Management Team

List your team members here including their names and titles, as well as their expertise and experience relevant to your specific hotel industry. Include brief biography sketches for each team member.

Particularly if you are seeking funding, the goal of this section is to convince investors and lenders that your team has the expertise and experience to execute on your plan. If you are missing key team members, document the roles and responsibilities you plan to hire for in the future.

Financial Plan

Here you will include a summary of your complete and detailed financial plan (your full financial projections go in the Appendix). 

This includes the following three financial statements:

Income Statement

Your income statement should include:

• Revenue: how much revenue you generate.
• Cost of Goods Sold: These are your direct costs associated with generating revenue. This includes labor costs, as well as the cost of any equipment and supplies used to deliver the product/service offering.
• Net Income (or loss): Once expenses and revenue are totaled and deducted from each other, this is the net income or loss

Sample Income Statement for a Startup Hotel Business

Balance sheet.

Include a balance sheet that shows your assets, liabilities, and equity. Your balance sheet should include:

• Assets : All of the things you own (including cash).
• Liabilities : This is what you owe against your company’s assets, such as accounts payable or loans.
• Equity : The worth of your business after all liabilities and assets are totaled and deducted from each other.

Sample Balance Sheet for a Startup Hotel Business

Cash flow statement.

Include a cash flow statement showing how much cash comes in, how much cash goes out and a net cash flow for each year. The cash flow statement should include:

• Cash Flow From Operations
• Cash Flow From Investments
• Cash Flow From Financing

Below is a sample of a projected cash flow statement for a startup hotel business.

Sample Cash Flow Statement for a Startup Hotel Business

You will also want to include an appendix section which will include:

• Your complete financial projections
• A complete list of your company’s business policies and procedures related to the rest of the business plan (marketing, operations, etc.)
• Any other documentation which supports what you included in the body of your business plan.

Writing a good business plan gives you the advantage of being fully prepared to launch and/or grow your hotel company. It not only outlines your business vision but also provides a step-by-step process of how you are going to accomplish it.

As you can see, there is a lot that goes into creating a successful hotel business plan. But with careful planning and execution, you can set your hotel business up for success.  

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Starting a lodging business Full guide & resources

So you want to be a hotel owner? Now might be an opportune time. 

Hotels proved their resiliency during the pandemic and have experienced remarkable growth in the years since. Today, lodging businesses are enjoying high occupancy rates and unprecedented pricing power. Moreover, certain hotel industry sectors, such as luxury resorts and select-service hotels, are achieving record profitability. 

As other hotel proprietors may tell you, owning a hotel can be a rich and rewarding experience, but it’s also a lot of work, and there is a degree of risk involved. 

Do you have what it takes to own and operate a successful hotel business? In this step-by-step guide, we’ll take you through how to launch a hotel business. You’ll hear from real-life hoteliers about their experiences and get advice from industry experts to help you avoid common pitfalls.

Why own a hotel? The benefits of owning a lodging business 

Before anything, it’s a good idea to clarify your objectives. Why do you want to own a hotel? Is it because you want to host the rich and famous, design your dream spot, or get fabulously wealthy? Or do you have more charitable objectives in mind, like providing refuge for weary travelers or helping build your local community? For three-time property owners Kristy Espat and Victor Tofan, it kind of happened by accident. 

As the owners of hotels in Peru , Germany , and Spain (opening soon), Victor and Kristy come from families with experience in the industry. Victor says, “it was kind of an accident becoming owners ourselves – we were in the right place at the right moment, but we’ve always been passionate travelers who love to explore and host.”

No matter how you come into hotel ownership, here are some of the benefits you can expect:

• Return on investment. A well-managed hotel can generate significant revenue for its owners. However, returns on investment (ROI) can vary broadly by property type and location. Hotel performance is also vulnerable to outside forces such as the economy’s health, travel disruptions, severe weather, or a pandemic.
• Property value. Hotel properties can appreciate in value over time, especially when situated in a prime location. As the property value increases, so does the potential return on investment if the owner decides to sell. 
• Tax benefits. Depending on where the hotel is located, owners may be eligible for tax benefits such as allowances for capital expenditures, structures and buildings, annual investments, and capital gains relief. 
• Social and networking opportunities. Owning a hotel presents all sorts of opportunities to meet and mingle with guests and clients from around the world, build a team of hospitality professionals, and partner with local businesses, forging lifelong relationships. 

So, while a lot of prestige and opportunity may come with your business idea, so does a lot of risk and responsibility. 

5 common hotel business models

Hotels come in all shapes and sizes within the hospitality industry, with various types of business models. Here are some of the most common ones:

1) Independent hotels

An independent hotel is typically owner-operated rather than run by a hotel management company or affiliated with a hotel brand .

Who’s it for?

Independent hotels are a good fit for owners with the know-how to run a hospitality business, want to be hands-on, and are looking for control over their brand identity and operating standards. However, independent hotels don’t enjoy the advantages of brand awareness and economies of scale offered by an affiliation with a large, well-known brand. They have to work extra hard to build awareness and guest loyalty.

Kristy and Victor are independent property owners and attribute the right technology to helping them manage everything on their own. Victor says, “we’re able to make all our properties work because we have the right tools – it’s dangerous to just open a place because you love it, but if you put the time into the right technology and distribution, you can sell it and make it work.”

2) Managed hotels

A managed hotel is operated by a third-party hotel management company. This may be a large conglomerate that manages tens or even hundreds of hotels under multiple brands, such as Marriott or Hilton, or a small company that operates a handful of regional properties. 

Managed hotels are best for an owner who has limited hospitality experience and prefers to leave day-to-day hotel operations to seasoned professionals. Managed hotels benefit from brand awareness, economies of scale, and infrastructure offered by management companies and hotel brands, such as pre-set operational policies and procedures and access to sales & marketing networks. However, they must pay fees to the management company, typically in the form of a set monthly fee and a percentage of revenue from sales of rooms and other services. 

3) Franchise hotels

Franchise hotels operate under a franchise agreement with hotel brands. The brand doesn’t manage the hotel, but the property is licensed to use its brand name and promote itself as part of the group.

Franchise hotels are particularly attractive to those who want to benefit from the advantages of being a part of a well-known hotel group, such as name recognition and access to the group’s infrastructure, while still gaining more flexibility in managing their own business. It can be an ideal solution for professionals who have knowledge and resources but lack marketing support or franchise experience. 

4) Leased hotels 

In the leased hotel model, the owner leases the property to an operator who assumes responsibility for managing the hotel. The operator pays the owner rent and may also share a portion of revenue or profits. 

Leased hotels are a good fit for the absentee investor who prefers not to get involved in managing the property. They provide the owner with a passive income stream while transferring operational responsibilities to the operator. 

5) Hotel partnerships and REITs

If you’re not ready to take on full ownership, other options include a partnership or a REIT. In a partnership, two or more owners share ownership and responsibilities, as well as risk, expenses, and revenue. 

A REIT, or Real Estate Investment Trust, is a company that owns, operates, or finances income-generating real estate, including hotels. Investors pool their capital and spread their investment across a portfolio of properties, receiving shares in the company and income in the form of dividends. 

Hotel partnerships and REIT’s are a good fit for someone who wants to diversify investments without actively participating in the management of properties. 

How to launch an independent hotel business: 10 key steps

Let’s assume you have decided to go the independent route for your new hotel business. You will oversee the property and intend to be very involved in management and operations. Now how do you launch your own hotel business?

One of the first priorities of a start-up business is to define long-term goals. Do you intend to hold on to the property for life and pass it on to future generations? Or do you anticipate selling it in ten to 20 years? Would you like to build a portfolio of hotels or hospitality businesses? 

While you don’t have to answer these questions right away, it’s a good idea to have a long-term game plan in mind as you go through the following 10 steps to launching an independent property. 

1) Decide whether to build or buy 

Deciding whether to design and construct a hotel from the ground up or purchase an existing hotel is an essential first step because it will help determine your path to ownership. Let’s review the pros and cons of each option. 

Option 1: Building

If you decide to build a hotel, you can design the exact property you have in mind and maybe have always dreamed about – notwithstanding any building restrictions. But remember that building a hotel can be a long, drawn-out process. You will have to find an available location, negotiate a price for the land, work with an architect and interior designer, and get building permits, along with numerous other hoops to jump through. There is also the risk of cost overruns and delays in construction and acquiring permits. 

How much money will you need? According to a 2021 study from HVS , the average costs per room, or “key,” of developing the main categories of hotels in the U.S. are estimated as follows.

• Limited-service hotel: $146,910 
• Midscale extended stay hotel: $154,502
• Select-service hotel: $245,238
• Full-service hotel: $477,058
• Luxury hotel: $805,010

Generally, the higher the caliber of the property, the more money required to build it. The objective will be to recoup the costs by charging higher room rates, meals, and ancillary services . 

Option 2: Buying

If you choose to buy an existing property , you will have to find one that is for sale, well-located, the right property type, and affordable. And then, you may have to undergo property upgrades or renovations. 

If the property is well-run and has a good reputation , you will benefit from positive awareness and built-in guest loyalty . However, if it has a bad reputation, you will need to strategically announce new ownership and quickly build a positive reputation. 

Generally, there is less risk involved in purchasing an existing hotel because you can inspect the building and review the property’s performance history. The turnaround time between purchase and the opening date should be much shorter, too, meaning you can start earning a return on your investment more quickly. 

In summary, for first-time hotel owners, buying an existing property may be a safer route. Whether you’re building or purchasing, keep in mind that it’s all about location, location, location! Hotels close to a city center, convention center, beach, shopping center, attractions, and landmarks are a bigger draw for travelers than those in remote locations.

Marco Leibundgut, Founder of the Bogentrakt Hostel in Chur, Switzerland, fell somewhere in the middle of building and buying when he turned a former prison located in Chur’s historical city center into a hostel. He spent three years rebuilding and renovating, which was quite a challenge with the small prison cells. He likes to say that his team “brought freedom back into this former prison.”

2) Analyze the local market 

Once you have chosen a location, you will want to analyze the local market. How strong is the demand for hotel rooms in the area? How are similar hotels performing? Are there seasonal ups and downs? And what kind of economic development is expected in the coming years?

With a clear picture of the local market, you can decide what kind of property is missing and is likely to perform well. Now you can:

• Choose the type of hotel. Will it be a luxury, midscale, economy, or extended-stay hotel? Will it be a boutique hotel, inn, bed and breakfast, guest house, hostel, apartment hotel, or a hybrid concept?
• Decide how big it will be. Will it be a large hotel or a small hotel? What number of rooms will it have? What facilities will you offer, such as a restaurant, bar, spa, pool, fitness room, concierge, golf, function space, etc.?
• Choose the concept or niche. Will it have a theme? How will the design and ambiance be? What unique features or experiences will attract travelers? Will you offer a unique concept like coliving, net zero, or hybrid hospitality? 

Now more than ever the uniqueness of a hotel really matters. Cloudbeds’ Lodging Report found a shift towards experience-driven travel, with travelers prioritizing properties that focus efforts on enhancing the guest experience and satisfying travelers’ social, environmental, and economic needs. 

• Zero Box Lodge in Coimbra, Portugal, offers capsule-style rooms designed as minimalist wooden boxes in a shared dorm with a private bathroom.
• At Matices Hotel de Barracas in Tequila, Mexico, guests stay in barrel-shaped tequila rooms surrounded by an agave field. 
• At The Pad in Colorado, USA, in the heart of the Rocky Mountains, guests can choose from micro rooms, shared dorms, or private group rooms.

3) Commission a hotel feasibility study

Once you have conducted your own market analysis, it’s time to hand things over to a professional real estate appraiser to conduct a feasibility study . A feasibility study is an analysis of a hotel building project to determine its potential as a sustainable and viable financial investment. 

Typically, a feasibility study analyzes the property’s location, the market, demographics, and economic conditions, including site size, visibility, access, construction regulations, and competitive landscape. It also estimates costs, revenue, and returns on investment for the intended holding period. 

Generally, a project is determined to be feasible if its projected economic value is estimated to be greater than its costs, generating the required ROI. If the project is not feasible, pursuing it may not be recommended. In either case, if the purchaser wishes to move forward with the project, the lender, bank, and business partners (if applicable) will request to review the feasibility study or may conduct one on their own. 

4) Create your hotel business plan 

Whether you’re purchasing or building a hotel, get ready for paperwork. Here are a few of the documents you’ll need to prepare. 

• Business plan. A hotel business plan identifies the hotel’s goals, objectives, business needs, and strategies for success. It includes an executive summary with details of the business concept, market research, investments required, and a roadmap for building and operating the business. This is an essential document for obtaining financing from potential investors. 
• Operational plan. The operational plan outlines the strategies, procedures, and guidelines for managing the hotel successfully. It includes the operational structure, staffing, seasonal patterns, service standards, commercial strategies, food & beverage operations, property maintenance, financial management, and quality assurance, among other details.
• Financial plan. This document outlines the hotel’s investment requirements, funding sources, financial goals, projections, and strategies for achieving the projections. It includes details about projected startup costs, operating costs, revenue, cash flow, and profitability, providing a roadmap for financial performance. It contains metrics like expected occupancy rate, average daily rate (ADR), and revenue per available room (RevPAR).
• Marketing plan . This document outlines planned marketing strategies, including branding, positioning, key value propositions, target markets (leisure vs. business travelers), and competitive landscape ( SWOT analysis ). It outlines strategies for pricing and promotions, marketing assets like photography, videos, and collateral, and planned activities on marketing channels, including the hotel website, paid media, online travel agencies (OTAs), public relations, social media, and online review sites. See sample hotel marketing plan templates here. 

In a recent episode of The Turndown , Asa Firestone, CEO and Co-Founder of A-Lodge , an adventure lodging company in Colorado, says his biggest piece of advice for new hoteliers is “have a well-defined plan. If you’re going to bootstrap, know what that is and have a vision for where that will take you versus if you’re going to get a big investment. Understand your goals and how you plan to achieve them.”

5) Complete the paperwork: registrations, permits, and licenses

But wait, there’s more paperwork. As a new hotel owner, you must submit a host of applications for permits and licenses. These may vary by region and property type but typically include business registration and license forms, trademark applications, operations permits, tax registration forms, health and safety compliance forms, insurance coverage, and employment documentation. 

6) Source hotel equipment, decor, and suppliers

Next, you’ll need to decide how to furnish your property, referred to in finance as FF&E: furnishings, fixtures, and equipment. This will require deciding how to appoint guestrooms, public areas, and back-of-house areas like the kitchen, administrative offices, and staff communal areas. 

Will you purchase everything new, have it custom-built, or source second-hand? If you’re taking over an existing hotel, many of these items might already be in place but may need to be refurbished or replaced. To purchase FF&E, you will need to set up relationships and accounts with suppliers and establish credit. Choose wisely, as good suppliers can help you save costs and assure quality and expediency for years to come.

When refurbishing Bogentrakt, Marco decided to leave some of the original details from the prison, including the doors and a few bars but to make it more comfortable “utilized local carpenters to make the beds and hired a local street artist to paint murals throughout the property.” As part of his sustainability efforts, Marco wanted to keep his furnishings as local as possible and decided upfront that they would not utilize single-use plastics in their shampoos and soaps. 

7) Hire the right hospitality team

As you approach the opening date, you will need to start building your operating team. Typically, the higher the position is on the organizational chart, the further out you will need to hire them. This begins with your management team, such as the hotel manager, financial controller, human resources manager, director of sales and marketing, revenue manager, chef, and restaurant manager. Kristy says that for managerial positions, “they try to find people with mid-level experience who are eager to learn and grow with the property.” 

Closer to the opening date, you will need to hire and train hotel staff for the front desk, guest services, housekeeping, kitchen, banquets, administration, and other departments on the property. 

New business owners should be aware of the current staffing shortages in the industry. In an October 2022 poll from the American Hotel & Lodging Association (AHLA) , 87% of respondents indicated they were experiencing a staffing shortage, 36% severely so. Therefore, ensure that you’re allowing more time to hire, have a retention strategy, and are thinking of ways to utilize technology to reduce the strain on staff. Victor says something that works for them has been implementing a bonus structure where if the business does well, their general managers receive a share as an incentive to keep staff engaged in the business.

Marco has taken a unique approach to hiring and compensation at Bogentrakt by paying all his employees the same wage, regardless of their role. He says, “no matter if they work in housekeeping or the front desk, they get paid the same because they all have the same impact on the hostel’s success.” He also cross-trains employees so that a housekeeper, for example, can hop on the system and check a guest in if the front desk agent happens to be on break. 

8) Choose the right hotel technology 

Technology forms the foundation of a highly efficient hotel, so making the right investment decisions is critical. In addition to keeping the lights on, the kitchen operating smoothly, and guests connected to wifi and entertainment, you will need software to streamline and automate operations, sales & marketing, revenue management , and food & beverage functions. William Lake , Co-Founder of Olive & Lake , a Hotel Consultation & Digital Marketing Agency, recommends to sell rooms effectively online, “new hoteliers must first invest in a property management system (PMS) , channel manager, and booking engine – ideally, a solution that includes all three in one package as it simplifies the setup process and reduces maintenance costs.”

To reduce technology costs and centralize operations, more hotels are shifting to a cloud-based, integrated hospitality platform model that consolidates all core software under one technology provider and allows additional software to be connected via API (application programming interface). By housing hardware, software, and data off-premise, a cloud-based system saves hotel owners from paying expensive upfront technology costs and helps provide guests with a seamless experience.  

As a new hotelier, you have the advantage of choosing leading technology off the bat, giving your property the best shot at success and room to grow and evolve over time without having to switch solutions. Sebastien Olive , Co-Founder of Olive & Lake, says that “it’s often difficult for new hoteliers to know what solution is best for them; we always advise clients to find something which will help them save time, improve the guest experience, and increase revenue.”

9) Activate marketing & distribution channels

As your opening date nears the typical traveler booking window, you will want to ramp up marketing and distribution activities. Kristy says, “you need visibility anywhere that a traveler may be searching – on organic and paid channels.” This includes:

• Listing on various OTAs. Listing on big OTAs like Booking.com and Expedia, as well as on smaller, regional, and specialty OTAs such as Airbnb, Hostelworld, or Despegar. Marco has attracted a wide range of guests thanks to being active on multiple channels. He says, “we can set up all different promotions through these channels to attract a really good mix of guests.”
• Ensuring your hotel website is set up and ready to take reservations via your booking engine. William from Olive & Lake stresses the importance of a website for new hotels saying that “a professionally designed website is vital as it serves as a platform for commission-free direct bookings, increases profitability, and helps to enhance brand identity.”
• Creating a Google Business Profile , a listing on Tripadvisor, and listings on other applicable review sites and online directories.
• Launching a digital marketing strategy such as advertising on Google Ads, metasearch engines, or Facebook and Instagram.
• Building an email database of prospective guest segments and an email marketing strategy to inform them of the opening date and other news. 
• Working with a PR agency , local tourism partners, and your local destination marketing organization (DMO) to help spread the word.

Kristy and Victor urge new hoteliers to consider working with a digital marketing agency or service . Victor says, “with these solutions, there is an initial investment, but over time you’ll experience direct, organic growth that converts naturally – which is exactly the kind of guests you want.”

• Get Loud. Cloudbeds’ guide for hotels to boost their online presence, from website design to search engine optimization (SEO) and search engine marketing (SEM).
• The Big Book of OTAs. A guide for hoteliers to top distribution channels, including a recipe for the ideal channel mix, a list of top-performing OTAs in your region, and a directory of over 75 OTAs.
• More Reservations, Happier Guests. The ultimate guide for the modern hotelier, a deep dive into the fundamentals of running a successful lodging business, from technology to guest service to data analytics.

10) Prepare for the grand opening

At last, the big day is about to arrive! Hotel openings are notoriously hectic and full of surprises, so you will want to be uber-organized and level-headed. A pre-opening checklist and frequent meetings and check-ins with your team will help ensure everything is done on time.

How will you acknowledge the opening? Quietly, or by throwing a lavish opening party? An event can be a great way to create excitement and build word-of-mouth, especially if you invite media, an official photographer, local businesses, travel agents, tourism partners, and social media influencers – all the people who can help spread the word and get heads into beds. But it’s a good idea to wait a few weeks to throw a party to ensure the hotel is fully operational, staff are well trained, and any wrinkles have been ironed out.

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How to Start a Hotel Business

A hotel can be any commercial building that charges money to travelers who need a room to stay. This can be anything from a standard multi-unit building to luxury stand-alone villas. As airline prices drop and the economy improves, corporate and personal travel continues to increase. The hotel industry generated just under $200 billion in revenue in 2016.

Learn how to start your own Hotel Business and whether it is the right fit for you.

Ready to form your LLC? Check out the Top LLC Formation Services .

Start a hotel business by following these 10 steps:

• Plan your Hotel Business
• Form your Hotel Business into a Legal Entity
• Register your Hotel Business for Taxes
• Open a Business Bank Account & Credit Card
• Set up Accounting for your Hotel Business
• Get the Necessary Permits & Licenses for your Hotel Business
• Get Hotel Business Insurance
• Define your Hotel Business Brand
• Create your Hotel Business Website
• Set up your Business Phone System

We have put together this simple guide to starting your hotel business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out other small business ideas .

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

What will you name your business?

• What are the startup and ongoing costs?
• Who is your target market?

How much can you charge customers?

Luckily we have done a lot of this research for you.

Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Hotel Business Name Generator

If you operate a sole proprietorship , you might want to operate under a business name other than your own name. Visit our DBA guide to learn more.

When registering a business name , we recommend researching your business name by checking:

• Your state's business records
• Federal and state trademark records
• Social media platforms
• Web domain availability .

It's very important to secure your domain name before someone else does.

Want some help naming your hotel business?

Business name generator, what are the costs involved in opening a hotel business.

Regardless of whether you’re opening a boutique hotel with five rooms or a mega hotel with hundreds of rooms, the costs to get started can be substantial. Between the land, the equipment, the furniture, and the licensing requirements, owners typically need a lot of capital to get started. Even a Super 8 hotel can cost up to $4.5 million to open. However, there is no industry average because the costs range widely based on the value of the property and the building materials used.

What are the ongoing expenses for a hotel business?

Ongoing expenses include facility upkeep, employee wages/salaries, advertising, insurance, replacing beds and furniture, office supplies, utilities and high-speed internet. Plan to spend at least a couple hundred dollars per month on replacing room mattresses, shower curtains, carpet, dressers, etc. The exact figure will hinge on the number of rooms your facility has and the age of the beds, furniture etc. Low-level employees who check in guests and clean the hotel will earn between $8 and $15 per hour. A hotel manager, marketing professional, and accountant will make between $30,000 and $60,000 per year. Budget at least a couple hundred dollars per month for facility upkeep. A maintenance person will earn between $12 and $25 an hour. Budget $50 to $100 per month for office supplies. Utilities including high-speed internet for the entire hotel will likely cost $150 to $300 or more per month. Dedicate at least $200 to $500 or more for monthly advertising. The exact cost of marketing hinges on the economics of your local market.

Who is the target market?

The target market can be anyone looking for a room for the night — whether a traveler is coming from across the world or across the street. However, all hotel owners will develop their own target demographic based on their amenities and location. Luxury travelers will not want to stay at the same hotel as a mid-level executive who is in town for a conference.

How does a hotel business make money?

Hotel owners make money based on the profits of the hotel, meaning they'll need to work out how much they want to make a year before setting their room rates to account for their salary. They usually pay themselves a standard amount per year and then invest the rest of their profits into the property.

The average cost for a hotel room is $137 a night, but there are some luxury hotel suites that cost $80,000 a night to stay. Hotel owners need to be careful about how they're pricing their rooms based on demand. A holiday weekend can potentially kick up prices by triple their normal cost or more, so it's important to set prices based on what people will pay.

How much profit can a hotel business make?

A hotel has enormous profit-making potential. Some hotels make six figures per year. Others rake in millions per year. Unfortunately, some hotels fail to make a profit. The level of profitability depends on a number of different factors. Grow the business, expand to a second location and you will likely exceed the six figure mark. Continue to add locations and your hotel business will approach the million dollar profit range.

How can you make your business more profitable?

Successful hotel owners can consider franchising their business or opening up more locations in an area. They can even give educational courses to other hopeful hotel owners about how to succeed in a competitive industry.

Want a more guided approach? Access TRUiC's free Small Business Startup Guide - a step-by-step course for turning your business idea into reality. Get started today!

STEP 2: Form a legal entity

The most common business structure types are the sole proprietorship , partnership , limited liability company (LLC) , and corporation .

Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your hotel business is sued.

Form Your LLC

Read our Guide to Form Your Own LLC

Have a Professional Service Form your LLC for You

Two such reliable services:

You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.

Recommended: You will need to elect a registered agent for your LLC. LLC formation packages usually include a free year of registered agent services . You can choose to hire a registered agent or act as your own.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

You can acquire your EIN through the IRS website . If you would like to learn more about EINs, read our article, What is an EIN?

There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil .

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

• Separates your personal assets from your company's assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

Recommended: Read our Best Banks for Small Business review to find the best national bank or credit union.

Get a business credit card

Getting a business credit card helps you:

• Separate personal and business expenses by putting your business' expenses all in one place.
• Build your company's credit history , which can be useful to raise money later on.

Recommended: Apply for an easy approval business credit card from BILL and build your business credit quickly.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with our LLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

State & Local Business Licensing Requirements

Certain state permits and licenses may be needed to operate a hotel. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits .

Most businesses are required to collect sales tax on the goods or services they provide. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses .

Certificate of Occupancy

A hotel is generally run out of a large building. Businesses operating out of a physical location typically require a Certificate of Occupancy (CO).  A CO confirms that all building codes, zoning laws and government regulations have been met.

• If you plan to lease a location :
• It is generally the landlord’s responsibility to obtain a CO.
• Before leasing, confirm that your landlord has or can obtain a valid CO that is applicable to a hotel business.
• After a major renovation, a new CO often needs to be issued. If your place of business will be renovated before opening, it is recommended to include language in your lease agreement stating that lease payments will not commence until a valid CO is issued  
• If you plan to purchase or build a location :
• You will be responsible for obtaining a valid CO from a local government authority.
• Review all building codes and zoning requirements for your business’ location to ensure your hotel business will be in compliance and able to obtain a CO.

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance . This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need is Workers’ Compensation Insurance . If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

FInd out what types of insurance your Hotel Business needs and how much it will cost you by reading our guide Business Insurance for Hotel Business.

STEP 8: Define your brand

Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.

If you aren't feeling confident about designing your small business logo, then check out our Design Guides for Beginners , we'll give you helpful tips and advice for creating the best unique logo for your business.

Recommended : Get a logo using Truic's free logo Generator no email or sign up required, or use a Premium Logo Maker .

If you already have a logo, you can also add it to a QR code with our Free QR Code Generator . Choose from 13 QR code types to create a code for your business cards and publications, or to help spread awareness for your new website.

How to promote & market a hotel business

Advertise strongly to get your name into the public eye, especially online. Travelers aren’t necessarily going to find their hotel by the radio or television, so either use paid ads or organic content to boost your rankings in a search engine. However, it’s also important to let word of mouth serve as a powerful tool (even at the beginning.) The more specials and discounts you offer, the more likely it is that customers will see the hotel as desperate or not worth their time.

How to keep customers coming back

Hotel owners will thrive based on their customer service. Even the most jaded of business travelers isn’t immune to having a little bit of personality and charm delivered to their experience. Customer issues should be solved as quickly as possible, and emergencies should be addressed and rectified immediately.

STEP 9: Create your business website

After defining your brand and creating your logo the next step is to create a website for your business .

While creating a website is an essential step, some may fear that it’s out of their reach because they don’t have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.

Here are the main reasons why you shouldn’t delay building your website:

• All legitimate businesses have websites - full stop. The size or industry of your business does not matter when it comes to getting your business online.
• Social media accounts like Facebook pages or LinkedIn business profiles are not a replacement for a business website that you own.
• Website builder tools like the GoDaddy Website Builder have made creating a basic website extremely simple. You don’t need to hire a web developer or designer to create a website that you can be proud of.

Recommended : Get started today using our recommended website builder or check out our review of the Best Website Builders .

Other popular website builders are: WordPress , WIX , Weebly , Squarespace , and Shopify .

STEP 10: Set up your business phone system

Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That’s not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.

There are many services available to entrepreneurs who want to set up a business phone system. We’ve reviewed the top companies and rated them based on price, features, and ease of use. Check out our review of the Best Business Phone Systems 2023 to find the best phone service for your small business.

Recommended Business Phone Service: Phone.com

Phone.com is our top choice for small business phone numbers because of all the features it offers for small businesses and it's fair pricing.

Is this Business Right For You?

This business is good for someone who enjoys the hospitality business. Those who run hotels have to be adept at catering to a number of different needs, so an owner will need to be flexible when it comes to how they respond to different travelers and consistent when it comes to delivering unparalleled customer service. From business travelers to young families, each guest will have their own priorities when it comes to where they stay.

Want to know if you are cut out to be an entrepreneur?

Take our Entrepreneurship Quiz to find out!

Entrepreneurship Quiz

What happens during a typical day at a hotel business?

Hotel owners may have to deal with a range of responsibilities in their day-to-day job, including the following tasks:

• Hiring/scheduling/managing staff
• Negotiating room rates for different days
• Completing paperwork and administration duties
• Handling financial obligations/investors
• Completing ongoing education regarding the hotel market

What are some skills and experiences that will help you build a successful hotel business?

People who have experience in the hospitality industry will have a head-start because they will have already seen many of the hiccups that come with running a hotel or a restaurant. Those with an MBA or formal hospitality training can also use their education to help them make smarter, more cost-effective decisions.

What is the growth potential for a hotel business?

There has been a lot of talk about how the hotel business is being hurt by websites like Airbnb. The amenities and service tend to be more intimate at private homes or property, which can be appealing for people who who are sick of the corporate structure or lack of empathy on the part of hotel employees. However, the growth potential for hotels can still be substantial for a number of reason.

There are still plenty of travelers out there who would prefer to stay at a hotel, especially considering that there is a certain level of hesitation for many people when it comes to staying with strangers. In addition, websites like Airbnb are likely to become more heavily regulated in the next few years which may make it more difficult for travelers to take advantage of the lower rates.

TRUiC's YouTube Channel

For fun informative videos about starting a business visit the TRUiC YouTube Channel or subscribe to view later.

Take the Next Step

Find a business mentor.

One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.

Having a support network in place to turn to during tough times is a major factor of success for new business owners.

Learn from other business owners

Want to learn more about starting a business from entrepreneurs themselves? Visit Startup Savant’s startup founder series to gain entrepreneurial insights, lessons, and advice from founders themselves.

Resources to Help Women in Business

There are many resources out there specifically for women entrepreneurs. We’ve gathered necessary and useful information to help you succeed both professionally and personally:

If you’re a woman looking for some guidance in entrepreneurship, check out this great new series Women in Business created by the women of our partner Startup Savant.

What are some insider tips for jump starting a hotel business?

The best thing an owner can do is narrow down their demographic so they can start catering to them right away. Ideally, you’ll identify a need that isn’t being served in the area you wish to open. Maybe business travelers are being catered to by chain hotels, but tourists are looking for something a little more personalized. Perhaps you open up a themed hotel that focuses on a particular niche in your area (e.g., a hotel designed specifically for scuba diving tourists.)

You should also invest in your staff from the very beginning. The leaders and even the everyday staff members will be your eyes and ears when you can’t be there. Giving them the respect and the compensation they deserve can go a long way to boosting morale and keeping customers happy. Hotel owners should also look at what their competition is doing in an effort to attract more people. Just because a hotel is different from the most popular Airbnb destinations, doesn't mean a hotel owner can't offer some of the amenities that make the Airbnb destinations so heavily desired.

How and when to build a team

You will need to build a team immediately to do everything from managing the staff to cleaning the rooms. Find people who can use discretion on the job so guests feel like they're in good hands. The more layers of bureaucracy you build into your hotel, the harder it will be for customers to get an answer to even the simplest of problems.

Useful Links

Industry opportunities.

• Best Western Franchise opportunity
• Comfort Suites Franchise opportunity
• American Hotel and Lodging Association

Real World Examples

• Ann Arbor business
• Atlanta business
• CA business

Further Reading

• Considerations

Have a Question? Leave a Comment!

How to start a successful hotel business: a complete guide

From strategy, to software, to start-up costs: everything a new hotel owner needs to know.

In this guide, we deep dive into how to start a hotel business with step-by-step instructions and actionable tips. Whether you’re new to the hotel game or looking to grow your existing premises – here’s how to run a successful hotel.

In a world where renting out a property is easier than ever – all it takes is an internet connection and a host profile on Airbnb – arguably,  anyone can become a hotelier. But as anyone who’s done it will tell you, owning a hotel business goes far beyond giving people a place to sleep. The most successful hotel businesses take that practical need and turn into an unforgettable experience for their guests. It doesn’t matter whether you’re starting a five-star hotel, a family-friendly resort or budget motel – how you make your guests feel will determine your hotel’s reputation. And with online reviews the lifeblood of the hospitality industry, it’s critical that every guest leaves satisfied.

That’s why we created this guide – to help you dive deep into the crucial elements of starting – and growing – a successful hotel business.

Guide Contents:

• What type of person can run a hotel?

Find your place in the market

• Choosing your hotel identity

Pull it all together: creating a hotel business plan

• Crunch the numbers: the cost of getting started
• Spread the word: develop a marketing plan
• The A-team: hiring and training staff

Smooth operation: implementing systems

• Support for setting up your hotel with Preno

When the first-ever hotel opened in 1768, everything was managed on paper – a huge ledger with guest details painstaking recorded. Computers and spreadsheets made things easier, and more recently, hotel management software streamlined everything from start to finish. 

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Even so, it takes an entrepreneurial mindset and a passion for the business to tap into what is now one of the largest industries in the world. Your drive to serve and delight your guests while managing multiple tasks with grace and dignity will determine the culture and success of your team. 

For your hotel to thrive, you must be willing to step up, work hard and understand that customer experience is everything.      

First, you need to thoroughly understand what it means to own a hotel. Soak up the latest news, thought leadership and best practices from local and international experts – Preno, for example, sends fortnightly industry news. While researching hotels in your area, you might find there’s no demand for your initial idea or that a slight tweak to your plans could prove more profitable.

A strong market analysis will help you decide whether you build or buy, or if adding efficiencies like new technology could streamline operations and improve your bottom line. 

Choose your hotel identity

Your style of hotel will inform several business decisions. It isn’t easy to transition from one type to another, so choose carefully based on your market research.

• Boutique. Often smaller, with unique characteristics, e.g. historic building
• Family-friendly. Larger rooms, extra beds, entertainment facilities and attractions close by, caters to the entire household
• Budget. Lower rates, scaled-back amenities to pass savings on to the customer  
• Luxury. High price tag, top-notch service, access to four or five-star amenities, e.g. spa, concierge, room service

A business plan is critical to laying out the foundations of launching, promoting and operating your business. To secure investment, it’ll be a requirement.

Here’s a summary of what your business plan should include. You’ll find more detail on some of these aspects further in the guide.      

• Executive summary. Give a high-level overview of your hotel business plan – short and concise. Include your mission statement and your objectives.
• Brand positioning. Dive deep into the story of your brand – who you are, your unique selling points and your target audience.
• Market/industry analysis. Demonstrate that you understand the market you’ll be operating in – both from a local standpoint, and a broader look at the industry. This will show investors your potential for growth based on local travel patterns and industry trends.
• Competitor analysis. Highlight your understanding of your competitors, and how your hotel fills a gap in the market. A SWOT (strengths, weaknesses, opportunities, threats) analysis is a good way to do this.
• Customer segmentation. Break down your target market: demographics, location, socioeconomics and behaviours. This is also known as crafting a guest persona. It’s important to understand your primary target market intimately, so you can cater for an experience that meets their needs and expectations.  
• Strategic plan. Cover marketing, distribution and revenue management in this section. This is where you’ll convince investors that you have a sound plan to connect with customers, manage your inventory and maximise your revenue.
• Operations plan. Create a detailed plan that covers staff, operating processes, suppliers and inventory management – everything involved in operating your hotel business. 
• Financial plan. Start talking money. Start-up costs followed by ongoing expenses (payroll, purchases, rent and utilities), forecasts and profit potential. 
• Management team. Introduce the people who will be running your business, their backgrounds and their capabilities.
• Important milestones. Include a timeline of relevant milestones (build, opening, profitability). This gives you progress markers to aim for and will increase your likelihood of success. 
• Appendix. Add additional information or supporting documentation to the appendix. Your business plan should focus on important strategic highlights – everything else you can add at the end.

Crunch the numbers: the costs of getting started

There are several variables that will determine the cost of opening a hotel:

• Location. Tourist hotspots and inner-city hotels will be more expensive than somewhere more regional or rural.
• Quality. Starting a five-star resort will be a lot more expensive than a budget motel.
• Size. Number of rooms and hotel facilities (restaurant, meeting room, spa, gym).

While it’s challenging to pinpoint the cost of setting up a hotel business, there are five areas you’ll need to include in your start-up budget:

• Land. Any real estate fees associated with purchasing land or securing a lease for your hotel site.
• Building and construction. Whether you’re starting from scratch, renovating an existing property or buying into a franchise, this will take up the largest portion of your start-up budget. Hotel owners typically need a lot of capital to get started, but you could secure a construction loan to fund this part of the project. Either way, your building costs will vary depending on your footprint, quality of materials and current building condition.
• Soft costs. Non-construction-related expenses like insurance, architects, consents, permits and taxes, designers and lawyers. 
• Furniture, fixtures and equipment. These are the costs associated with furnishing your hotel – anything that’s moveable, i.e. beds, electronic equipment, tables, chairs and desks.
• Working capital. For hiring staff, paying salaries and any expenses incurred before you open your doors and the cash starts coming in.

Now that you’ve got some numbers down on paper, it’s time to figure out whether your hotel venture is feasible. The numbers will tell you if your capital costs are worth the risk. Estimate key revenue and expenses like room pricing, vacancy rates and revenue per room. Don’t forget ongoing operating expenses like maintenance, wages, advertising, stock (service products and equipment) and utilities.

Run through a handful of scenarios in your forecasting to see how key decisions or events will impact the potential profitability of your business. You can find out more about calculating hotel metrics and conducting a hotel market analysis in this guide:

< How to calculate ADR and other hotel metrics>

Spread the word: developing a marketing plan

You’ve secured financing, the build or renovations are well underway – now you need to share your hotel with the world. Your hotel marketing plan is an important part of your overall business strategy. This is how you’ll communicate with your target audience – using your market research to guide you.

There are lots of ways to market your hotel – be creative and brainstorm ways to make your business stand out. There’s traditional marketing like TV, print and radio, or partnering with a PR agency or travel agent. 

In addition to setting up a well-optimised website and booking engine , here are some digital marketing ideas you’ll want to explore:

• Online travel agents (OTAs)– Think Booking.com, Expedia, TripAdvisor, and others. Most accommodation providers manage this through a channel manager like Preno.
• Social media marketing – Facebook, Instagram and LinkedIn are the big three. Even if you don’t use all platforms straight away, you’ll want to secure as many handles as you can. Here’s a simple guide to creating a social media strategy that works .
• Paid versus organic advertising – Google Ads, boosted Facebook posts and sponsored Instagram posts are all examples of paid marketing. Sharing content like blogs or videos on YouTube through your social media platforms is designed to drive customers organically to your website. 

Want more ideas on how to promote your hotel business online? Read this guide:

<The ins and outs of hotel online marketing>

The A-team: hiring and training hotel staff

Hiring the right team members can make or break your plan to grow a successful hotel business. Most skills and knowledge can be taught but finding people with the right innate characteristics is critical.      

Attracting a stellar team

Before you place any job ads, get clear about the type of people you want to hire – what values, insights and skills will they bring to the team? Clarity here will ensure you attract like-minded people who share your vision. Your employees reflect your brand, so they need to exemplify the character traits you feel are most important to your hotel. 

You’ll then need to figure out a plan: role, requirements, hiring timeline and training. Depending on whether you buy or build, and the size of your hotel business, there will be key team members you’ll need to hire first. These are usually sales and marketing, finance, project management and facilities. 

Onboarding – get to know the team

Once you’ve got the team, the work doesn’t stop. Proper onboarding and training are chances to show people the ropes and give your team time to gel before the big opening day. Extra training for particular roles may be needed.

Before you open your doors, you’ll need to set up hotel systems and software to streamline and automate operations, so you can run your business leaner and more efficiently. Your requirements for user-friendliness and functionality alongside your budget will come into play when choosing the best hotel management system for your property.      

Here are some options you’ll want to consider:

• Hotel management system. This will likely be at the top of your list. Without a system to manage your bookings, you’ll be in the red before you’ve even started. A good system will facilitate management and administrative tasks including front-desk operations, rate and occupancy management and payment processing. It also connects to all the other important tools your hotel uses – like Xero or Lightspeed. 
• Channel manager. Channel managers allow you to automate changing your rates and managing your availability across all your channels – so you don’t have to spend all day doing it. 
• Booking Engine. These help you avoid the 15% fees charged by OTAs like Booking.com and Airbnb by collecting bookings directly via your website. Be sure to pick a booking engine like Preno that is optimised for mobile, and tailored to create easy conversions.
•   Accounting software. Preno’s world-class integration with Xero ensures the two applications work seamlessly together to automate invoicing, bookkeeping and payment processing – making it easy for hoteliers to manage their bookings and accounting in one place. Well-connected systems will give you clearer insights into how your business is performing. 
• Restaurant management software. If your hotel offers food and beverages in a restaurant or similar, you’ll want a Point of Sale (POS) system that connects your restaurant to your hotel management system. This will allow guests to charge back to their room. Preno and Lightspeed Kounta POS enable this type of customer experience.

Time to open the doors: launching your hotel business  

This is when things can get a little scary – but also exciting! You’ve put in the hard work, you’re ready to open the doors – and invite your first guests in. 

Opening events are often well-received and they’re a great chance to connect with your local community and key stakeholders. Put your best foot forward by planning an event that reflects your purpose and values and focus on building relationships. 

Go forth and conquer – you’re ready

The hotel industry is a hyper-competitive environment, and the disruption of Covid-19 in the last year has triggered a fundamental shift in the way accommodation facilities operate. Despite all the change, customer experience is one of the most important elements in determining the success of a new or existing hotel business. If you know what your target hotel guests need, and you can deliver on this, plus more (i.e exceeding customer expectations), your hotel’s reputation – and success – will be off to the best start. It’s a big bet and the risk is high, but careful planning, strategy and empowering your operation with the right technology will set you on course to starting a successful hotel business.

Transform Your Guest Experience With Preno

With Preno, seamless management is just a click away. Embrace the future of hospitality with our free trial, no strings attached.

Need help setting up your hotel?

Try Preno, we offer a fully integrated, cloud-based property management system that simplifies your hotel processes.

Talk to the Preno team about getting set up.  

Want to see Preno in Action? Join our free webinar: Sign up here

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Hotel Business Plan

Owning a hotel is a dream for many people, who like to organize and engage in multiple different activities. From having unique themes to beautiful decor, a hotel business gives you an ample amount of chances to showcase your creativity.

But the pandemic might have naturally left many of you doubting the viability of hotels.

With a vast variety of reasons a hotel serves, the hotel business is very less likely to become irrelevant.

Most leading hotel businesses, today, rely on software to manage their operations. Kiosk Mode for automated check-ins, on-the-spot reservations, and feedback, hotel management software for customer management, and revenue control are just some of the many solutions that streamline hotel management.

And all you need to have a thriving hotel business is a hotel business plan that’ll help you get the maximum out of the profitable times and stay prepared for unexpected circumstances.

Industry Overview

The hotel industry stood at a whopping market value of 0.95 trillion dollars in 2021 and is recovering at a rapid rate after the COVID-19 pandemic.

The hotel industry is ruled by several major players, hence it is a good practice to go through their case studies and business strategies. There’s a high chance that you might find something very useful for yourself.

Work vacations and leisure trips are the major factors that contribute to the growth of the hotel industry.

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Things to Consider Before Writing a Hotel Business Plan

Select a good location.

An accessible and well-located hotel is much more likely to work than one that is situated otherwise. Also, the neighborhood you set up your hotel in matters a lot too. Hence, it is important to choose the right size of land and locality to set up your hotel.

Find good suppliers

From laundry, and housekeeping to the right ingredients for the restaurant,  there are several supplies a hotel needs. And to satisfy your customers, it is essential to get the best of everything. After all, the reputation and image of your hotel matter a lot when it comes to running a hotel business.

Know your financial requirements

A hotel has several financial requirements from location to installation of appliances, furniture, decor, and salaries of employees. This also makes for a complex financial structure. Hence, it is good to figure out and keep an account of all your financial needs before getting started.

Find your USP

In the mass of industry giants and small businesses that exist in the business, it is important to have something that helps you stand apart from everyone else. From theme-based decor to additional services and ventures, your USP can be anything. But make sure that you find one before you get up and running.

Chalking Out your Business Plan

If you are planning to start a new hotel business, the first thing you will need is a business plan. Use our sample hotel business plan created using upmetrics business plan software to start writing your business plan in no time.

Before you start writing a business plan for your new hotel business, spend as much time as you can reading through some samples of hotel and lodging-related business plans .

Reading some sample business plans will give you a good idea of what you’re aiming for, and also it will show you the different sections that different entrepreneurs include and the language they use to write about themselves and their business plans.

We have created this sample Hotel Business Plan for you to get a good idea about what a perfect hotel business plan should look like and what details you will need to include in your stunning business plan.

Hotel Business Plan Outline

This is the standard hotel business plan outline which will cover all important sections that you should include in your business plan.

• Business Overview
• Mission Statement
• Location and Facility
• Steve Cowan
• Key Advisors to the Company
• Economic Environment
• Geographical/Competitive Environment
• Legal/Political Environment
• Technology Environment
• High Line ($139-$750 per night, depending upon season)
• Motel ($59-$119 per night, depending upon season)
• Bed & Breakfast (B&B)
• Summary of Opportunities and Threats in the Environment
• Competitive Advantage
• Industry Keys to Success
• SWOT Analysis
• Marketing Strategies
• Target Markets – Consumer
• Positioning and Product Strategy
• Distribution Strategy
• Pricing Strategy
• Service and Support Philosophy
• New Business Segment
• Publicity and Public Relations
• Guest Reward Programs
• Advertising
• Marketing and Promotion Budget
• Evaluation & Control Strategies
• Project Funding Summary
• Phase 1 Funding Amounts Sought
• Financial Plan Assumptions
• Income Statement Projections
• Balance Sheet
• Cash Flow Projections

After getting started with Upmetrics , you can copy this sample hotel business plan template into your business plan and modify the required information and download your hotel business plan pdf or doc file.

It’s the fastest and easiest way to start writing your business plan.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

Download a sample hotel business plan

Need help writing your business plan from scratch? Here you go;  download our free hotel business plan pdf  to start.

It’s a modern business plan template specifically designed for your hotel business. Use the example business plan as a guide for writing your own.

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Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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• About Xotels

Hotel Business Plan

OK, so you have decided to realize your dream and become a hotel entrepreneur, so now you need to start writing your hotel business plan . You have thought out an amazing concept delivering unparalleled guest service. The next step would be to write a hotel business plan. It’s like a road map to the opening. However, as a seasoned hotel revenue management consulting and hotel management company , we have seen that this is where most entrepreneurs get stuck.

Why? Many do not have the time and don’t know what to write or how to do the financials. But until you finish your business plan, you will not be able to get the financing either. So you end up with ideas sitting in your head not realizing your dream.

Really it is not that difficult to make a good hotel business plan. It is merely a structured summary of your idea. Most people try to include everything about their hotel concept in the plan. This leads to an indigestible super novel-like bookwork, aka a mess.

The key is, knowing what to include, and what not to include in your hotel business plan. Create a clear road map for success. Excite investors rather than bore them to death like most business plans full of redundant information do. And you need to lead readers down the exact path you want.

One of the main challenges for example is that after reading the first page most businesses often don’t fully understand what the hotel is all about. For investors and lenders, it is crucial they can quickly comprehend your plan, without reading the whole document.

Hotels 101: The Basics of Business Planning

We have put together a hotel business plan template to help you on your way. Check out our approach based on 10 critical points, being:

• Executive Summary
• Company Analysis
• Industry Analysis
• Customer Analysis
• Competitive Analysis
• Strategic Plan
• Operations Plan
• Management Team
• Financial Plan
• Key Milestones

Steps of your Hotel Business Plan

Let’s dive into the step-by-step checklist of what your hotel business plan should look like.

Infographic by Xotels

1. Executive Summary

This first part should consist of two main parts, being:

• Mission Statement (Introduction): a 1 line company description only the essence of your hotel (not 2 lines or a paragraph). It explains why you are in business or which huge need you are solving, that currently is not being met. For example in the case of Qbic Hotels “Moving modular hotels into under-utilized real-estate to reduce build-out cost and time.” 
• Objectives : What do you hope to accomplish (i.e. “Reach an annual occupancy of 90%”).

 2. Company Analysis

More detailed information on the USPs (unique selling points) of your hotel concept.

3. Industry Analysis

Information on the current industry trends and the current state of the market and how this will impact your hotel. This is needed as investors want to be sure you really understand the hotel industry. This acts as the foundation on which decisions such as trends and developments to follow will be based.  

Streamline Your Hotel Operations

We guide hotels and resorts toward unparalleled success, positioning them as market leaders.

4. Customer Analysis

In-depth information on your target market, including geographic, demographic, socioeconomic, psychographic, and behavioural segmentation details. It can also help you to keep up to date with the latest hotel marketing trends to understand which are the types of guests who will be staying at your hotel. Explain which features will be meeting the needs and wants of these main segments when thinking of:

Basically, how will consumers answer this question ‘Why my hotel?’

Aim to break it up to the point value can be easily communicated (do not make it too overcomplicated). Think of the following examples:

• Psychographics: interests, lifestyles, personality, values, opinions, and attitudes
• Behavioural segmentation: purchasing behaviour, level of engagement, customer loyalty
• Demographics: gender, age, marital status and education
• Geographics: location (country, state, region, city)
• Socio-economics

Any of the above examples of hotel segmentation can, if described well, be of great value to your business plan. An example of this could be a hotel located in a beach town, where you should be able to describe how demographics and psychographics differ from summer to winter time. Especially, since this example is typically known for lower demand in winter which you could be compensating for with the right hotel marketing strategies on hand.

5. Competitive Analysis

A study of your local competition or global concept competitors, with each of their strengths, weaknesses, occupancy rates and market share ( SWOT analysis ). And don’t forget the most important part; what differentiates you from them. What makes you stand out?

Ask yourself: “can I add value to a specific area”, especially when it comes to hotel-dense areas like city centres or major destinations.

6. Strategic Plan

This exists of 3 parts:

• Marketing : How exactly will you attract customers/guests? How will you position yourself? What will your message be to the different segments of your business mix? How will your direct marketing work? What will be the plan for your hotel website, SEO, SEM and SMM? Will you do offline promotion? In short, your hotel marketing strategy should cover everything there is to know about how to market your hotel.
• Distribution : Which 3rd party channels will you use and how will you manage availability? What technology will you need?
• Revenue management : What pricing and yield techniques will you use? What will your payment and cancellation policies be? Which room types will you be selling, and how will they be individually marketed? How many revenue scenarios will I create? Where can I compensate income/demand streams when necessary?

Make sure you have the capabilities to plan out a strong marketing, distribution and revenue management strategy. 

Things get complicated rather fast, and choosing to outsource hotel and revenue management is likely to give you a strategic advantage, during the planning phase, and the execution of your business plans.

7. Operations Plan

How will you run your hotel? Think of the following elements:

• How many staff and supervisors will you need? 
• What are their job descriptions/responsibilities? 
• What background and experience should they have? 
• When should they start? 
• What are your service standards?
• Will you develop manuals?
• Which supplier will you use?
• How will you manage inventory?

8. Management Team

Include the bios of your team. Focus on what uniquely qualifies you to make your hotel such a success. Having a great team is the key to success , and stakeholders will be impressed with a thorough explanation of the added value everyone brings to the table.

9. Financial Plan

Provide the start-up costs of the hotel (capital investment), the ongoing business costs, operational expenses and revenue projections for the next five years. These figures should be always based on your Hotel Feasibility Study . The KPIs to look at include expected occupancy, ADR (Average Daily Rate) and RevPAR (Revenue per Available Room).

If you are raising money , outline how much funding will be needed and when. Explain how you will generate a return on investment for investors, or when lenders will be paid back.

10. Key Milestones

These are the most important achievements which once they have been completed, will make your hotel more likely to succeed. Think off:

• Location selection
• Permits & Licenses
• Build-out / Construction of the Hotel
• Staffing and Training
• GOP Break-even
• NOI Break-even

Each time one of the key milestones is achieved, the risk of lenders or investors decreases . And once your last key milestone is reached, the chance of success is more or less guaranteed.

11. Appendix

Provide any other relevant information here. Don’t clutter the main sections of your hotel business plan with too many details. Rather support them with attachments in this part.

Putting Your Plan into Action

Many people have great business ideas. But that really doesn’t matter. The difference between dreamers and entrepreneurs is the action mindset. Are you ready to ship your idea to the market? 

The first step is to put your ideas on paper. I hope this free sample will help you write a persuasive hotel business plan. Because no investor or lender will be interested if you cannot present a clear plan.

Follow your dreams and go for it!

Maximize Your Hotel Revenue

Uncover the hidden revenue potential of your hotel or resort.

Need help to Develop and Manage your Hotel Concept?

Our revenue management consulting experts at XOTELS have helped hundreds of hotels to develop and optimize their businesses.

With cost-effective implementations and best practices developed over years of experience, successful business for your boutique hotel, resort, B&B, aparthotel, hostel, or any other lodging concept for that matter.

Hope this template has helped you get inspired to start your own hotel business .

Best of luck in your endeavours!

Patrick Landman

PS. Get in touch with us if you need help developing and managing your hotel concept, and help bring your hotel to the next level with our hotel consulting services.

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BUSINESS STRATEGIES

How to start a hotel business

• Rebecca Tomasis

Get started by: Creating a website →  | Getting a domain →

If you're passionate about providing exceptional hospitality and managing a range of services, starting a hotel business could be a good fit for you. This guide will walk you through the steps of initiating and operating a successful hotel business, including the advantages and challenges involved in starting a business , how to go about creating a business website  to support your hotel business and how to generate revenue in the hotel industry.

What is a hotel business?

A hotel business is a service-oriented business  that offers a variety of accommodations, amenities and services to guests. Hotel businesses typically provide services such as:

Lodging services, including room reservations and check-ins

Dining options, such as restaurants and room service

Event hosting and conference facilities

Recreational facilities, like gyms, pools and spas that can be used both by hotel guests and visitors

Why start a hotel business?

The US hotel industry is on a steady climb, projected to grow by a healthy 5.5% per year through 2033 . That translates to big bucks for savvy hospitality entrepreneurs – travelers are spending billions annually on their stays, with the average US hotel room topping $212 per night, according to Hopper's Q1 2023 data . This market presents a ripe opportunity for anyone with a passion for guest experience and a knack for creative ideas. 

How to start a hotel business in 7 steps

Decide on your hotel business niche

Create a business plan

Select a business structure

Obtain business financing or capital

Set up accounting and bookkeeping services

Source specific hotel equipment

Register your hotel business

01. Decide on your hotel business niche

Various types of hotels cater to distinct preferences and market segments. When starting a hotel business, think about the target audience you wish to attract and what amenities can best suit their needs. Some of the more popular hotel business niches include:

Luxury hotel chains : Starting a luxury hotel chain or a resort hotel can provide guests with high-end experiences and upscale accommodations, emphasizing luxury amenities and personalized services. 

Resort hotels : Resort hotels focus on providing guests with enjoyable and luxurious experiences, often situated in scenic locations with extensive amenities like spas, recreational activities and fine dining options.

Boutique hotels : Boutique hotels are characterized by their intimate settings, unique themes and personalized services, appealing to travelers seeking distinctive hospitality experiences.

Extended stay hotels : Targeting guests with longer accommodation needs, extended stay hotels like Residence Inn by Marriott or Homewood Suites offer spacious rooms and kitchen facilities that are designed for extended visits.

Budget-friendly accommodations : Motels and economy hotels cater to cost-conscious travelers, providing amenities at affordable rates while maintaining a level of quality and cleanliness.

Class A hotels : Class A hotels include well-known brands like Hampton Inn, Holiday Inn Express and Courtyard by Marriott that offer comfort at competitive rates, appealing to a broad range of travelers.

02. Create a business plan

Develop a comprehensive business plan  that covers key aspects of your business planning such as your target market, executive summary, marketing strategy  and financial projections. This plan serves as a roadmap for your business and aids in conveying your vision to potential investors when seeking funding. It should also include other important business information such as the type of business  you plan to start and your choice of a business name . 

Here’s a hotel business plan template to get you started:

Hotel business plan template

Executive Summary

 Business Name:  [Your Hotel's Name]

 Business Structure:  [Sole Proprietorship/Partnership/LLC/Corporation]

 Location:  [City, State]

 Founding Date:  [Month, Year]

 Founders/Owners: [Names]

 Mission Statement:  [Concise statement of the hotel's purpose]

Business Description

Overview:  Briefly describe your hotel, including its key features, amenities and services.

 Unique Selling Proposition (USP): Clearly define what sets your hotel apart from competitors.

Target Market:  Identify your primary customer demographic and market segment.

Services and Amenities

 List and describe the accommodations, services and amenities your hotel will offer.

 Include room types, dining options, event spaces, recreational facilities, etc.

Market Analysis

 Industry Overview:  Provide an overview of the hotel industry, including trends and growth projections.

 Competitor Analysis : Identify key competitors and analyze their strengths and weaknesses.

 Target Audience:  Define your target customer profile and their preferences.

Marketing and Sales Strategy

Marketing Plan: Outline your strategies for promoting the hotel, including online and offline channels.

Pricing Strategy:  Detail your pricing structure and any promotional pricing.

Sales Tactics:  Describe how you will attract bookings and increase occupancy rates.

Operational Plan

Location and Facilities:  Describe the physical location and facilities of your hotel.

Suppliers:  List and describe key suppliers for goods and services.

Staffing:  Outline your staffing plan, including roles and responsibilities.

Financial Plan

Startup Costs:  Detail initial investment requirements and startup expenses.

Revenue Projections:  Provide realistic revenue projections for the first 3-5 years.

Operating Costs:  Outline ongoing operating expenses, including utilities, maintenance and staff salaries.

Funding Requirements:  Specify any funding needed and potential sources (loans, investors).

Funding Proposal

Purpose of Funding: Clearly state how the funds will be utilized.

Amount Needed: Specify the amount of funding required.

Repayment Plan:  Outline the proposed repayment plan for loans or investments.

Risk Analysis

 Identify potential risks and challenges that may impact the success of your hotel.

 Develop strategies to mitigate and manage these risks.

Include any additional documents or information relevant to your business plan.

Examples: Market research data, resumes of key team members, mock-ups of marketing materials.

 Summarize the key points of your business plan and highlight the potential success of your hotel.

 Conclude with a call to action or next steps.

Note: This template serves as a general guide. Adjust and expand sections based on your specific business model and goals.

03. Select a business structure

Choose an appropriate business entity  or structure for your hotel, such as a sole proprietorship , partnership , limited liability company (LLC ) or corporation . Each structure has its own advantages and disadvantages, so select the that algins with your business goals.

Learn more: How to start an LLC

04. Obtain business financing or capital

Starting a hotel business involves substantial start-up costs. You’ll need to secure considerable financing through methods like bank loans, grants or investments from stakeholders to launch and sustain your business.

Costs that you’ll need to factor in when securing financing for your business include:

Purchase or lease of land or existing property

Renovation or construction costs for the hotel building

Fees for obtaining necessary licenses and permits for operating a hotel

Interior design services

Furniture, fixture and equipment for guest rooms, common areas and facilities 

Installation of reservation systems and hotel management software

Purchase of computers, servers and other technology infrastructure

Recruitment and training costs for hotel staff

Initial salaries and benefits for employees

Marketing and advertising campaigns to promote the hotel

Making a website  and its maintenance

Initial inventory of linens, towels, toiletries and other guest supplies

Setup and stocking of restaurant, bar, or catering facilities

Licensing and health inspection costs for F&B operations

Property insurance to protect against fire, theft or natural disasters

Payment of applicable taxes, including property taxes and business taxes

05. Set up accounting and bookkeeping systems

Establish robust accounting and bookkeeping systems from the outset to track income, expenses and ensure financial viability. This includes managing corporate tax obligations if applicable.

06. Source specific hotel equipment

Acquire the necessary equipment for your hotel, ranging from room furnishings to kitchen appliances, based on the services you plan to offer. Some more specific examples of this include:

Front office systems:  Computers, POS systems for check-in/out, reservation management software, and key card systems.

Payment and communication:  Cash registers, credit card processing terminals, and telephone systems.

Guest room essentials:  Beds, mattresses, linens, towels, wardrobes, dressers, bedside tables, lamps, desks, chairs and room safes.

Room comforts:  Air conditioning/heating units, mini-fridges, minibars, televisions, irons, ironing boards and hairdryers.

Cleaning and maintenance:  Cleaning carts, vacuum cleaners, carpet cleaners, laundry equipment and basic maintenance tools.

Kitchen and dining facilities: Commercial ovens, stoves, grills, refrigerators, freezers, dishwashers, utensils, dining tables, chairs, tableware, and flatware.

Technology and entertainment:  Wi-Fi, internet connectivity, audiovisual equipment, gym equipment, pool/spa equipment and game room equipment.

Security and safety:  Surveillance cameras, monitoring systems, access control, alarms, security lighting, fire detection and suppression systems.

Operational supplies: Cleaning supplies, toiletries, guest amenities, staff uniforms and waste disposal systems.

Meeting and event facilities: POS systems for restaurant transactions, conference tables, chairs and catering equipment.

07. Register your hotel

Register your hotel business in compliance with local regulations, obtain the required licenses and secure appropriate insurance coverage.

Learn more: How to register a business , How to get a business license

How much does it cost to start a hotel business?

Starting a hotel business requires a substantial financial investment to cover various expenses such as property acquisition or lease, renovations or construction, operational costs, furnishing costs, staffing, amenities, marketing and contingency funds. The amount of money needed to start a hotel business can vary significantly depending on factors like location, size, target market and level of luxury.

Starting a small boutique hotel could require anywhere from hundreds of thousands to millions of dollars, while larger upscale hotels may require multi-million dollar investments. It's crucial to conduct thorough financial planning, including budgeting for both initial startup costs and ongoing operational expenses, to ensure the successful launch and sustainable growth of your hotel business.

Tips for managing your hotel business for profitability

Once you’ve got your hotel off the ground, you’ll need to understand how to properly run and manage it in order to make sure it’s profitable. Here are some general tips on how to achieve that: 

Research your industry

Gain a deep understanding of the hotel industry, including market competition, target demographics and financial requirements. If you lack experience in the hotel industry, consider working for an established hotel or volunteering at a local hospitality agency to acquire valuable insights and experience. You might also choose to partner with someone who has that experience and industry connections.

Create a financial plan

Create a financial plan that includes detailed projections for startup costs, operational expenses, revenue forecasts and a profitability analysis. It should also include a thorough market analysis to determine the feasibility of starting your hotel business, considering factors such as target market demand, competition, pricing strategies and potential ROI .

Your financial plan should also outline capital sources, whether through personal investment, loans, partnerships or investors and establish a clear budget allocation for areas like property acquisition, renovations, staffing, technology implementation and contingency funds. Effectively managing resources and startup capital , you can proactively mitigate risks.

Promote your hotel

Develop a robust marketing strategy from the beginning to proactively promote your hotel. You’ll also need to make a hotel website , for hotel bookings  and promotions.

Emphasize customer service

Exceptional customer service is crucial for success in the hotel industry. Ensure a positive experience for guests from booking to check-out. Invest in well-trained staff and establish clear customer service protocols to handle any hotel issues that may arise.

Hotel businesses to inspire (all built on Wix)

Coda hotels.

This boutique Williamsburg hotel offers unique rooms as well as a beach club, nightclub, dining and other great facilities for their guests. 

Chateau de Fontlozier

This alps based hotel offers luxury stays from its historic building. Their large lawns offer a number of popular activities for hotel guests, including a children's play area. 

This Mexican holiday rental villa includes 5 bedrooms and a stunning pool, for the perfect getaway. And is proof that you can start a hotel business with a vacation rental and build from there. 

Stay Gainesville

This furnished local accommodation for all lengths of stays also proves that a hotel business can be started with all types of properties. 

The Asheville Inn

This motel in North Carolina also offers pet stays and online booking services. 

Benefits of starting a hotel business

Operating a hotel allows you to be your own boss, set your own hours and make independent decisions. At the same time the demand for hotel services is consistently high, particularly in areas with a substantial tourist or business traveler presence. For business owners who enjoy interacting with people, a hotel business can be rewarding on many levels. 

Challenges of running a hotel business

Hotel management requires diverse skills in areas such as customer service, event planning and facility maintenance. You’ll either need to become an expert fast in all of these areas, or invest in people who can do them. 

Coordinating bookings, managing client expectations and ensuring timely service delivery can be challenging. Working with an online booking system or scheduling software  is crucial for managing this effectively. 

Hotel occupancy rates can vary, leading to fluctuations in workload and revenue. With these challenges comes also the fact that the hotel industry is competitive and standing out requires a unique value proposition and effective marketing.

How profitable is a hotel business?

The profitability of a hotel business depends on factors such as location, market demand, competition, pricing strategies and operational efficiency. For example, high population density and tourist-centric areas often offer more potential customers but may also mean increased competition from other hotels. This intense competition may be applying more competitive rates and diversified services in order to compete and make a profit. In general, regardless of the type of business, streamlining business processes can contribute to higher profitability by reducing costs and enhancing service delivery.

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Hotel Business Plan Template

Hotel business plan.

If you want to start a new hotel business or expand your current one, you need a business plan.

Over the past 20+ years, we have helped over 5,000 entrepreneurs and business owners create business plans to start and grow their hotel businesses.

Below are links to each section of your hotel business plan template:

• Executive Summary – The Executive Summary is the most important section of your business plan. It should be clear, concise and provide an overview of your business plan.
• Company Overview – The company analysis should include your company name, business model, location, history, and a brief description of your hotel’s services. You can also include your company’s mission statement and/or a list of your key objectives.
• Industry Analysis – The Industry Analysis should include information on the size of the hospitality industry, trends, competition and growth potential.
• Customer Analysis – The Customer Analysis should include a description of your target market, customer needs and how you plan to attract and retain your target audience.
• Competitive Analysis – The Competitive Analysis should include a description of your local competition, their strengths and weaknesses and your unique selling point for how you plan to compete with them.
• Marketing Plan – The Marketing Plan should include your sales and hotel marketing strategy, pricing strategy, and the promotion plan for your hotel. It should also include marketing efforts on third-party websites and online travel agencies.
• Operations Plan – The Operations Plan should include a description of your hotel operations, policies, and day-to-day procedures. It may also include your hotel business milestones.
• Management Team – The Management Team section should include biographies of the hotel owner, your hotel management staff, and their job descriptions.
• Financial Plan – The Financial Plan should include your hotel’s financial projections, funding requirements, and capital investment analysis.
• Appendix – The Appendix should include any supporting documents such as your hotel’s lease, contracts, permits, licenses, and complete financial statements including the income statement, balance sheet and cash flow statement.

Next Section: Executive Summary >

Hotel Business Plan FAQs

What is the easiest way to complete my hotel business plan.

Growthink's Ultimate Hotel Business Plan Template allows you to quickly and easily complete your own hotel business plan.

Where Can I Download a Hotel Business Plan PDF?

You can download our hotel business plan PDF template here . This is a business plan template you can use in PDF format.

What Is a Hotel Business Plan?

A business plan provides a snapshot of your hotel as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes local market research to support your hotel business plans.

Why Do You Need a Business Plan for a Hotel?

If you’re looking to start a hotel or grow your existing hotel you need a comprehensive business plan. A well-developed business plan will help you raise funding, if needed, and plan out the growth of your hotel in order to improve your chances of success. Your hotel business plan is a living document that should be updated annually as your company grows and changes.

What Are the Sources of Funding for a Hotel Business?

Hotels are usually funded through business loans.

Often you'll have to use personal savings and/or angel investors to help with the down payment on the business loan.

In the financial model section of your plan, be sure to detail, among other things, how much it will cost to build your hotel and the key uses of funds (e.g., building the hotel, cost to furnish the hotel, staffing costs, working capital, etc.).

Note that if you already operate several hotels, private equity investors might be interested in helping to finance your expansion.

How Do You Start a Hotel Business?

Starting a hotel business is easy with these 14 steps:

• Choose the Name for Your Hotel Business
• Create Your Hotel Business Plan
• Choose the Business Structure for Your Hotel Business
• Secure Startup Funding for Your Hotel Business (If Needed)
• Secure a Location for Your Business
• Register Your Hotel Business with the IRS
• Open a Business Bank Account
• Get a Business Credit Card
• Get the Required Business Licenses and Permits
• Get Business Insurance for Your Hotel Business
• Buy or Lease the Right Hotel Business Equipment
• Develop Your Hotel Business Marketing Materials
• Purchase and Setup the Software Needed to Run Your Hotel Business
• Open for Business

Learn more about how to start a hotel .

HOTEL BUSINESS PLAN OUTLINE

• Hotel Business Plan Home
• 1. Executive Summary
• 2. Company Overview
• 3. Industry Analysis
• 4. Customer Analysis
• 5. Competitive Analysis
• 6. Marketing Plan
• 7. Operations Plan
• 8. Management Team
• 9. Financial Plan
• 10. Appendix
• Hotel Business Plan Summary

Start Your Hotel Plan Here

Other Helpful Business Plan Articles & Templates

• Try it out »

How to Start a Hotel Business: Complete Guide

According to Statista, the tourism industry grows steadily each year.

Inbound tourism growth by area; as per Statista

What this means, is that although the hospitality industry is saturated, there is still a need for hotels, guesthouses and B&Bs, all over the world.

Armed with the knowledge that the industry is growing, if you follow the steps in this article, you’ll have all the arsenal you need to become a successful hotel business owner and generate a profit fast.

Table of Contents

• 1 What type of person should you be to thrive in the hotel business?
• 2 What makes a successful hotel?
• 3 How to start a hotel business on a budget:
• 4.1 Step 1: Make a plan
• 4.2 Step 2: Create your Unique Value Proposition (UVP)
• 4.3 Step 3: Develop your marketing plan
• 4.4 Step 4: Form a Legal Entity
• 4.5 Step 5: Enquire about permits and zoning
• 4.6 Step 6: Raise startup capital
• 4.7 Step 7: Find hotel premises, build and furnish
• 4.8 Step 8: Recruit staff
• 4.9 Step 9: Put systems in place
• 4.10 Step 10: Train your team
• 4.11 Step 11: Open your hotel

What type of person should you be to thrive in the hotel business?

It goes without saying that hotel ownersneed to have the mindset of an entrepreneur, but to be successful, hotel owners require something extra: a desire to serve.

This is because the hospitality industry is known as the industry that most understands customer service, and for your hotel to thrive, you need to be someone who relishes serving others naturally.

While you may not directly interact with your guests, your attitude filters down through your top management, right to the ground staff.

A successful hotel is always born from the culture of its top management, and the culture of top management is always born from the hotel owner.

What specific qualities do owners of successful small hotels usually possess?

• A desire to serve
• A need to delight guests
• Good leadership abilities
• Hard-working
• Physically fit and healthy
• Ability to juggle jobs, especially in the early years when you may not be able to afford all the staff you need

What makes a successful hotel?

Image Credit: Marriott

Marriott International group of hotels are some of the most profitable hotel businesses in the world.

What makes a successful hotel depends on its target audience and what appeals to them, but overall, it’s all about the experience.

If your hotel caters to families, then you have to make sure that all family members can be kept satisfied and happy.

TripAdvisor says that the top 10 characteristics of top-ranking family hotels include:

• Activities for the whole family, and holiday programmes to keep kids entertained
• A feeling of “home away from home”
• Complimentary services to make things easier for families
• Including a kids menu so that uneaten food is not paid for
• Cleanliness
• Helpful staff

On the other hand, the world’s most luxurious hotels may boast ornate furnishings like the hotels listed in the Forbes Travel Guide , and their guests, often from pampered backgrounds and used to the very best, will demand high calibre services that the more average hotel wouldn’t usually consider.

From room service to complimentary breakfast, their staff are highly trained and authorised to do whatever it takes to satisfy a guest because the reputation of the hotel depends on it.

In addition, through exceptional service, staff have been known to create scenarios that have so delighted guests, the hotel has enjoyed positive publicity.

Some of the most luxurious amenities offered by some luxury hotels include:

• A tanning butler at the Ritz Carlton South Beach Miami . The tanning butler’s duty is to patrol the pool deck area to help guests apply sun lotions.
• The luxurious Hotel deLuxe in Portland caters to people who consider their pets family; not only is the hotel pet friendly, but they also offer everything guests need for their pets to stay with them, and boast a pet psychologist. The Lowell in New York City takes it a step further by offering room service for pets which includes doggy ice cream.

Image Credit: FidoFriendly

Hotel deLuxe’s Afternoon Tea for Pets

St. Regis in New York City offers a free Bentley car service to guests needing transport in a 10 block radius of the hotel.

Image Credit: TripAdvisor

The Bentley fleet of St. Regis

• Ballyfin provides a costume department and photo shoots pre-dinner.

Image Credit: DavidLansing

Guests at Ballyfin dress up for dinner

Now, these are examples from some of the world’s most luxurious hotels, but what if you don’t have the money to start at that kind of level?

In the hotel industry, it’s best to start small and grow. This brings us to our next section…

How to start a hotel business on a budget:

• As a prospective hotel owner,start by booking out a room in your own home. The key to making this work is to either make students your primary market so that affordability attracts them, or to offer a unique experience. For example, if you live in a rural area that has been in the news, like Soweto in South Africa, then you can offer a room in a house there, with a Unique Value Proposition(UVP) of something like, “experience Soweto first hand”. Once you begin making money by booking out a part of your home, you can begin to grow, offering more services as you expand, and eventually, setting up a full-fledged hotel.
• Try the AirBnB way of instant hotelliering. Hire out your home or other property you own; when it gets booked, move yourself to cheaper accommodation so that you still make a profit. Make sure the pictures of your home are appealing. Once you start making money from regular bookings, you can work out an alternative solution. The key is just to get started.
• Hire a business capital broker who has networks of contacts and investors.
• If you have some money, find cheap land in a good location, like 19 and 21-year-old brothers Lucas & Travis Boychuk did in 2008 in order to build an action sports resort in 2014. Today, Surf Ranch is a 19 condo action sports resort, with a restaurant, swimming pool plus island and swim-up bar, and is known as the largest skateboard park in Nicaragua.

The story of how two young brothers started a resort with limited funds

How to start a hotel business: 

Step 1: make a plan.

Although it’s possibly the longest step in starting a hotel, a detailed business plan is your foundation. Not only does it determine the success of your hotel and its launch, but it also eliminates wasting time.

If you don’t have a hotel business plan, you won’t know where you are going, and you’ll find yourself constantly on the back foot, taking one step forwards and two back.

In addition, without a hotel business plan, no one will fund your idea, or invest in it.

So firstly: what is your hotel dream?

Take time to visualise what your dream looks like. Use all your senses to imagine how your hotel looks, feels and smells.

You’ll know in your gut when you’ve hit the sweet spot of what you want to achieve, and when that happens, planning can commence.

Here are the steps of how to play out your plan of starting a hotel and what it should include:

Conduct market research

The first phase of starting your own hotel is market research. It also forms the bulk of the work to be done before you can start thinking of the fun stuff, like the actual hotel and operations.

However, the research is what will determine your hotel launch and marketing success and must not be avoided.

Target market

It is essential to intimately understand your primary target market.

You can not start a new hotel without first knowing what your market wants, and you cannot go into creating a great guest experience if you plan to simply cater to all and sundry, because each target market’s needs vary.

Take EVEN Hotels as an example. Their accommodation and services are focused on health and wellness, and they use four focus points:

• Keep Active
• Accomplish More

As such, all their staff are trained in health and wellness and their facilities wholeheartedly centre around health.

This hotel will only attract people who are into health and fitness, while people who prefer eating McDonald’s to green smoothies are not likely guests.

It’s a great way to separate their brand from other hotels that are not focused on health.

With that said, will you target families, business travellers, or the wealthy? Each of those groups will have different needs and if you don’t know what they are, your hotel will not appeal to them.

People who want to enjoy romantic activities together will not appreciate being in an environment where kids are running amok. Guests who enjoy a healthy lifestyle may need vegetarian meal options.

Your marketing plans will also require a very good understanding of who your audience is because you can’t begin to market to the right people if you don’t know what’s going to get their attention.

Tips to get started

• There are three ways of finding your ideal target market. The first is to base your hotel on the type of people you already know best, the second is to find out the types of people that would most be attracted to the kinds of things your hotel plans to offer, and the third depends on location and what types of people are drawn to what’s on offer in the area.
• It would be helpful to have already established your UVP by this stage.
• Gather information about your ideal audience by having conversations with competitor guest-facing staff, or creating surveys aimed at the hotel staff of competitors, social media channels (analyze competitor information on their social media accounts), surveying people you would consider your target audience and checking out competitor reviews on sites like TripAdvisor. What you want to find out is what motivates your audience to choose specific accommodation.
• Create a detailed guest persona.

Image Credit: Otium Boutique

Example of a guest persona

“Location, location, location!”

Location plays a huge role in the success of your new hotel. Probably the two most important elements to generating revenue are location and marketing.

The JW Marriott Las Vegas Resort & Casino is close to some of the top golf courses in Las Vegas, so it would attract golf players. In addition, it is fancier than many surrounding hotels, which also adds to its appeal for its target market.

In Barcelona, hotels situated in the city centre attract people who want convenience. There are major sights to see, the airport is right there, and public transport is easy to find. In the area, Durlet Beach Apartments is a great option for families because it has everything. It’s close to the beach, includes a kitchen and because of its location, it’s easy to get transport for entertainment that is not within walking distance.

Image Credit: Durlet Beach Apartments

Firstly, get the town right. Forbes offers a unique take on the first step to finding out if your ideal town is going to be a good fit. By using the model of hotels like Hampton Inn, Holiday Inn Express, Courtyard by Marriott and Fairfield by Marriott, find out first if those hotels in the local market are charging at least $110 per night as their best available rate. If not, that town will probably not be profitable for your hotel business.

The next most basic thing to analyze is whether you can offer something in that town that’s missing from other hotels in the area, especially the franchised ones like Holiday Inn and so on.

Lastly, the street you choose as your premises must cater to the needs of your target market. Does your hotel need to be close to a train station? Is there entertainment within walking distance? What does the town offer your guests and how will guests get to where they want to go?

In this step of your research, you’ll need to determine the type of hotel business you would like to start, and you should have an idea of what you envisage from the visualization exercise you already did in an earlier section of this article.

Now you need to jot down your visualization on paper to make it real. For example:

• How many rooms would you like?
• Will it be considered a boutique hotel?
• Will it focus on affordability or location?

Image credit: Francesca Saraco/Unsplash.

• If you’re strapped for cash, refer to the section that discusses ideas to start a hotel on a limited budget. Also, try these brainstorming tips to find ways to start a hotel business using the resources you already have.
• Determine the ideal location for your hotel. Location is of extreme importance when starting a hotel, because people will book when the location is right. And of course, location depends on the audience you will want to attract. Business people need a location that is more central, or where it’s easy to get transport. Families will want things they can do together which are not too far from their accommodation. Couples may want to rekindle the romance with beach walks, horse rides and fun things like bungee jumping. Get the location right and you’ve won half the battle for getting booked out.
• Determine whether to build your hotel business from scratch, buy an existing hotel and renovate, or buy a franchise hotel. To get an idea of the average cost, speak with architects and others who will be involved in building/renovating your hotel.

Now that you know your target market and how to attract guests with your new hotel business, you can begin researching your competitors.

You’ll want to find out more about their financial model to give you an idea of what you should be charging (as long as you provide similar services.)

Pricing too low or too high can be lethal for hotel owners. Little Hotelier offers 5 smart pricing strategies for smaller hotels.

• Start with competitor research.

Competitors and industry

Get a feel for what other businesses in the hospitality industry are doing and what’s working for them.

Visit them and simply observe and make notes.

While you certainly want to make your own hotel business unique, your aim of visiting the competition is not to copy them.

There is no better way to understand the authenticity of the hospitality industry than from checking out your competition, not in a competitive way, but rather for the purposes of understanding.

• Find similar types of accommodation to what you would like to build. The easiest way to do this is by doing an internet search with the formula phrase “[accommodation type] + [location]”. I.e., “guest house Rotherham”. Refine your search as you go. Make a list that includes establishment name, rates, services and special notes. Bear in mind that just because they have a website does not mean they are doing well, so don’t copy, just get ideas and observe.
• Add your name to competitor subscriber lists so that you get the emails they send.
• Network with other hotel owners at exhibitions and groups they attend. Listen more than talk so you can take it all in.
• Pay for data that will give you answers.

Step 2: Create your Unique Value Proposition (UVP)

Your target market will determine your UVP.

But what exactly is a UVP?

ConversionXL clarifies it like this: “ A value proposition is a promise of value to be delivered. It’s the primary reason a prospect should buy from you. ”

Essentially, what a UVP does is tell prospective guests why they should pick your hotel, and does so with the least amount of words, providing an understanding of what your hotel business offers, in 10 – 20 seconds of reading it.

When creating your hotel’s UVP, here are some points to remember:

• Think of it as an executive summary that can be understood within 10 – 20 seconds.
• Be clear about what makes your hotel identity stand out.
• Do not include redundant words and promises, like, “Customer satisfaction guaranteed”.
• Clearly state the benefits of selecting your hotel business.

Now, most businesses boast fancy UVPs, but they are meaningless. An effective UVP will drive every decision and behaviour of the organization. Most of all, within seconds it will convey what you offer that is different to your competitors.

Let’s take a look at two mediocre examples of hotel UVPs:

• “Co s y stays at affordable rates.”
• “Stay close to the action in Hallandale Beach.”

Here are examples that get it right:

• “8 -m inute walk to Disneyland Park.”
• “For the bike and biker.”
• “Lounge in a luxury loft near Wrigley Field.”

Remembering that your guests will book into your hotel as a solution to either avoiding pain or to enhance feelings of pleasure, why will your guests want to book with your hotel? What will it offer that your competitors in the hotel industry won’t?

Blue Magnetic Interactive provides help with how to build a meaningful UVP.

Step 3: Develop your marketing plan

You’ve raised the capital you wanted and built your dream hotel. And yes, it’s a masterpiece. But if nobody knows about its existence, you won’t get guests.

Marketing is key to generating revenue.

What should a hotel marketing plan contain?

Well, firstly, Otium Boutique says, “To optimise your messaging and effectively engage potential guests, you need to understand the intent of their behaviours and the goals they are trying to meet. The head of an HR consultancy firm may be browsing your hotel’s website to find accommodation for an upcoming business trip, but what she really wants is a home-away-from-home, a seamless transition to all the creature comforts and modern technologies that allow her to carry on with business as though she never left the office. Promoting your popular cocktail bar may not be of interest, but letting her know that high-speed WiFi, printing facilities, or same-day professional laundry services are all complimentary offerings demonstrates that you can meet the needs of travelling professionals. ”

Keep your primary audience in mind when developing your hotel marketing plan.

With that said, flesh out your plan under these headings:

• Vision statement
• Mission statement
• Planned services and amenities and income from them
• Marketing budget
• Target persona
• Opportunities
• Main competitors
• Sales forecast
• Key differentiating factors
• Brand identity and internal culture
• Joint ventures
• Guest retention strategies
• Support and guest care
• Offline advertising
• Online advertising
• Offline marketing
• Online marketing

Get inspired! Here’s one example of a great marketing campaign: Four Seasons provides an online luxury travel magazine with high-quality articles and good resources. It includes subtle but effective marketing to encourage readers to take action like making a booking.

The launch of your new hotel requires a separate marketing plan wired to get people excited. You can offer special discounts, or think up other exciting promotional ideas. Leverage social media platforms like Instagram to build social proof for your business through likes and comments. Boost your profile by getting IG likes from reliable sources. Dana Communications discusses pre-opening marketing ideas for new hotels .

Step 4: Form a Legal Entity

The sole proprietorship, partnership, limited liability company (LLC), and corporation are the four main types of business structures.

Forming a legal business entity, such as an LLC or corporation, saves you from being held personally responsible if your hotel business is sued for some unwanted reasons. Additionally, your hotel can gain from tax advantages and increased credibility as well.

You can choose the best state to form an LLC and create an LLC yourself while simply paying the minimal state LLC costs. The cost of setting up an LLC differs from state to state. For instance, if you wish to form an LLC in Florida , you will have to check and consider the Florida state taxes to set up your LLC business.

Step 5: Enquire about permits and zoning

As a new hotel owner, you will need to consult with the local government to understand zoning, permits and building codes for hospitality, and to get an idea of what it will cost for your financial plan.

Step 6: Raise startup capital

If your circumstances allow it,and you have a rock-solid business plan, it would be a good idea to raise startup capital for your new hotel business.

There are various ways of doing that; you need to find the best solution for your needs:

• Take out a small business loan . Get expert tips for improving your chances of getting a loan.
• For big ideas that are sure to make a lot of money, find angel investors who would be keen to get a share of your hotel business. Geekwire offers advice for pitching to angel investors.
• Look for venture capitalists who can also offer valuable advice. Find out how to find funding with this method.
• Another idea is to set up a crowdfunding campaign to get small amounts from a lot of different people. Get tips to do it well.
• Enquire about incubators to help introduce you to potential investors. Entrepreneurmag offers guidance on what incubators are.
• Yet another avenue is friends and family – you never know who will believe in your idea. Be sure to treat them as an investor; avoid the temptation to be sloppy in presenting to them just because they’re friends or family.

When asking anyonefor money, either as an investment or loan, make sure you are prepared and clear about the numbers. This is important because it’s the first clue as to whether you will make a good business founder they can trust.

Create a strong, well thought out plan and then present it to investors and lenders to raise the required funding. It is vital to show confidence and that you’ve given your new business idea enough thought.

Remember that people are only going to help you if they believe your hotel will make money and if they trust that you and the management team will be able to lead your hotel to profit. 

Step 7: Find hotel premises, build and furnish

Depending on which option you’ve chosen, whether to buy land and build, or purchase an existing property and renovate, you need to find the right premises.

In this step, you’ll prepare the premises for guests, and then furnish it to attract the type of people you aim to target.

Start by finding out what room amenities most hotel guests really want .

Step 8: Recruit staff

Recruiting the right hotel employees to help you achieve your vision is one of the most crucial steps to making your entire hotel business run by design.

Using your UVP, it is now time to consider the kind of organizational culture you want in your hotel, because you must not recruit staff until you are clear about what type of people you want running it.

You can always train, but you can’t always find people with the right characteristics to build a profitable business with the right culture.

Image credit: Chuttersnap via Unsplash.

Just as you created a guest persona, so you should create a staff persona, so you know exactly what to look for.

To find the people who possess the characteristics most important to you, get help from a professional to create personality tests. If you’ve never hired hospitality staff before, do some homework about the essentials .

The first staff member to hire will depend on the vision of your hotel, as well as the most pressing, urgent tasks. Ideally, you’ll start with a marketing manager and sales team to help grow the hotel fast, and a project manager who can assist you in getting everything going.

Step 9: Put systems in place

Taking your hotel business plan into account, you’ll now consider which systems need to be put into place to boost operational efficiency.

At the top of the list will probably be your reservation system, and then other software such as:

• Accounting for operational expenses and revenue management
• Marketing automation to give you a competitive advantage

Our best suggestion is to think up wish-list processes, and then find the software to fit those best-case processes and sales efforts.

For example, you may have thought about how to make it easy for people to book with you, and one such way is to use a hotel app builder. Similarly, to send follow up messages and other information through SMS you need an SMS service. There are various bulk SMS providers to choose from.

A good idea is to bring a professional process management consultant on board to help.

Alternatively, Greenice gives an overview of how to develop customised hotel management systems.

Step 10: Train your team

Be sure to train your hotel manager and staff to follow processes, and empower them to deal with guests, and handle complaints. Equip them to do whatever it takes to satisfy the people who stay in your hotel.

Hotelogix provides guidance on how to train guest-facing staff .

Step 11: Open your hotel

Voila! D-Day! Here’s to a grand opening and being flooded with guests.

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Back to All Business Ideas

How to Start a Hotel

Written by: Carolyn Young

Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.

Edited by: David Lepeska

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Published on June 7, 2022 Updated on March 13, 2024

Investment range

$661,550 - $2,124,100

Revenue potential

$1.1 million - $1.6 million p.a.

Time to build

6 – 12 months

Profit potential

$274,000 - $410,000 p.a.

Industry trend

As the pandemic recedes, people are hitting the road and traveling again. The US hotel industry suffered a huge hit in 2020, but it’s now bouncing back in a big way — doubling from its pandemic low and expected to expand a stunning 33% more in 2022. 

Starting a hotel is a huge undertaking. But if you’re willing to take the plunge, you’d be able to ride that growth wave and provide an invaluable service that might one day become a major international brand like Hilton or Hyatt! 

Before you break ground, however, you’ll need to understand how to launch a business. Fortunately, this step-by-step guide is your one-stop shop for information about how to start a successful hotel. 

Looking to register your business? A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple.

Form your business immediately using ZenBusiness LLC formation service or hire one of the Best LLC Services .

Step 1: Decide if the Business Is Right for You

Pros and cons.

Starting a hotel has pros and cons to consider before deciding if it’s right for you.

• Valuable Service – Provide a comfortable place for travelers
• Good Money – Make thousands in revenue per night
• High Demand – Pleasure and business travelers
• Large Investment – Lots of cash required
• Location Dependent – Appealing destination required

Hotel industry trends

Industry size and growth.

• Industry size and past growth – The US hotels and motels industry is worth $170.6 billion in 2022 after expanding 208% the last two years.(( https://www.ibisworld.com/industry-statistics/market-size/hotels-motels-united-states/ )) 
• Growth forecast – The US hotels and motels industry is projected to grow 33.6% in 2022. 
• Number of businesses – In 2022, 90,562 hotels and motels businesses are operating in the US.(( https://www.ibisworld.com/industry-statistics/number-of-businesses/hotels-motels-united-states/ )) 
• Number of people employed – In 2022, the US hotels and motels industry employs 1,610,206 people.(( https://www.ibisworld.com/industry-statistics/employment/hotels-motels-united-states/ ))

Trends and challenges

Trends in the hotel industry include:

• More and more hotels are adding spa services to their amenities.
• Hotels are increasingly embracing technology, such as with room doors that can be opened with a smartphone app or even a fingerprint.

Challenges in the hotel industry include:

• Airbnb is growing fast, presenting tremendous competition for hotels.
• Labor shortages are making it increasingly difficult for hotels to operate effectively. 

Demand hotspots

• Most popular states – The most popular states for hotel managers are Hawaii, Arizona, and Nevada.(( https://www.zippia.com/hotel-manager-jobs/best-states/ ))
• Least popular states – The least popular states for hotel managers are Michigan, Iowa, and Minnesota.

What kind of people work in hotels?

• Gender – 49.4% of hotel managers are female, while 50.6% are male. (( https://www.zippia.com/hotel-manager-jobs/demographics/ ))
• Average level of education – The average hotel manager has a bachelor’s degree.
• Average age – The average hotel manager in the US is 43.3 years old.

How much does it cost to start a hotel business?

Startup costs for a hotel range from $650,000 to $2 million or more. Costs include at least a 30% down payment on the land and building construction, room furnishings, towels and sheets, equipment, and a labor and operating budget. Costs will be dependent on the amenities you put in your hotel, such as a pool, gym, spa, and restaurant.

If you were to buy a franchise such as a Holiday Inn or Hampton Inn instead of building your own, you’ll spend significantly more on franchise fees and construction. 

If you do not have a background in the hospitality business, you can get an online degree from a school like Bryant and Stratton . 

You’ll need a handful of items to successfully launch your hotel business, including: 

• Furnishings
• Hotel room security features
• Computer system
• Luggage carts
• Housekeeping carts and supplies
• Vending machines
• Ice machines
• Towels, sheets, toiletries

How much can you earn from a hotel business?

The prices you charge will depend on the amenities you’ve built, and the quality of your rooms and furnishings. A luxury hotel or a boutique hotel in a great location can be $300 or more per night, while many chain hotels might charge $100 to $150 per night. These calculations will assume an average price of $150 and that your hotel will have 50 rooms. Successful hotel profit margins are about 25%. 

In your first year or two, you could have 40% occupancy on average, bringing in $1,095,000 in annual revenue. This would mean $274,000 in profit, assuming that 25% margin. As your brand gains recognition, you might increase your average occupancy rate to 60%. With annual revenue of $1,642,000, you’d make a great profit of $410,000.

What barriers to entry are there?

There are a few barriers to entry for a hotel. Your biggest challenges will be:

• The high startup costs of constructing and preparing a hotel
• The intense competition in the hotel market

Related Business Ideas

How to Start a Bed & Breakfast

How to Start a Glamping Business

How to Start an Airbnb Business

Step 2: hone your idea.

Now that you know what’s involved in starting a hotel, it’s a good idea to hone your concept in preparation to enter a competitive market. 

Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.

Why? Identify an opportunity

Research hotels in your area and online to examine their services, price points, and customer reviews. You’re looking for a market gap to fill. For instance, maybe the local market is missing a boutique hotel with a spa, or a small hotel with a restaurant and room service. 

You might consider targeting a niche market by specializing in a certain aspect of your industry, such as operating as a discount hotel or a luxury hotel.

This could jumpstart your word-of-mouth marketing and attract clients right away. 

What? Determine your products or services

You can offer any number of amenities in your hotel, many of which are included in the room price. You can earn additional revenue by having a restaurant or spa. You can also make money from vending machines and business services, such as printing and copying. 

How much should you charge for hotel rooms?

The prices you charge will depend on the amenities you’ve built, and the quality of your rooms and furnishings. A luxury hotel or a boutique hotel in a great location can be $300 or more per night, while many chain hotels might charge $100 to $150 per night. Check your local market prices to make sure you’re competitive. Your profit margin after the costs of labor and overhead should be about 25%. 

Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify your target market

Your target market will be travelers, whether for business or pleasure. You should spread out your marketing to include sites like TikTok, Instagram, Facebook, and LinkedIn.

Where? Choose your hotel location

Choosing the right location for your hotel is essential for attracting guests and ensuring its success. Look for a spot in a popular and convenient area, such as a bustling city center, a beachfront, or a tourist destination. Consider accessibility and convenience, ensuring that the location is easily reachable by public transportation and has ample parking.

Additionally, assess the competition in the area and aim to differentiate your hotel by offering unique amenities or services, such as a rooftop bar or a spa. Depending on the type of hotel you plan to start, you may also want to consider the proximity to local attractions, business centers, or other resources.

By strategically choosing the right location, you can establish a profitable and successful hotel that provides exceptional service and stands out in the competitive hospitality industry.

Step 3: Brainstorm a Hotel Name

Your business name is your business identity, so choose one that encapsulates your objectives, services, and mission in just a few words. You probably want a name that’s short and easy to remember, since much of your business, and your initial business in particular, will come from word-of-mouth referrals.

Here are some ideas for brainstorming your business name:

• Short, unique, and catchy names tend to stand out
• Names that are easy to say and spell tend to do better 
• Name should be relevant to your product or service offerings
• Ask around — family, friends, colleagues, social media — for suggestions
• Including keywords, such as “hotel” or “inn”, boosts SEO
• Name should allow for expansion, for ex: “Grand Getaways Hotel” over “Family Fun Resorts”
• Avoid location-based names that might hinder future expansion
• Use online tools like the Step by Step Business Name Generator . Just type in a few keywords and hit “generate” and you’ll have dozens of suggestions at your fingertips.

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

Find a Domain

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Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that sets your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create a Hotel Business Plan

Every business needs a plan. This will function as a guidebook to take your startup through the launch process and maintain focus on your key goals. A business plan also enables potential partners and investors to better understand your company and its vision:

• Executive Summary: A brief overview of the hotel business plan, summarizing key points and goals.
• Business Overview: Detailed information about the hotel, including its mission, vision, and the type of services it will offer.
• Product and Services: Specific details about the hotel’s accommodations, amenities, and any additional services provided, such as dining or event spaces.
• Market Analysis: Examination of the target market, including demographics, trends, and potential demand for the hotel’s offerings.
• Competitive Analysis: Evaluation of competitors in the hotel industry, identifying strengths, weaknesses, opportunities, and threats.
• Sales and Marketing: Strategies for promoting the hotel, attracting guests, and increasing bookings through advertising, promotions, and other sales tactics.
• Management Team: Introduction to key individuals involved in the hotel’s management, highlighting their qualifications and roles.
• Operations Plan: Details on the day-to-day operations of the hotel, including staffing, facilities management, and customer service protocols.
• Financial Plan: Projections and analyses of the hotel’s financial performance, including income statements, balance sheets, and cash flow forecasts.
• Appendix: Additional supporting documents or information, such as market research data, legal documents, and any other relevant materials.

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business! 

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you’re planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to hotels. 

If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state. 

Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your hotel will shape your taxes, personal liability, and business registration requirements, so choose wisely. 

Here are the main options:

• Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
• General Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
• Limited Liability Company (LLC) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
• C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
• S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC , which just need to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization , and answer any questions you might have.

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Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number , or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN. 

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

The IRS website also offers a tax-payers checklist , and taxes can be filed online.

It is important to consult an accountant or other professional to help you with your taxes to ensure you’re completing them correctly.

Step 7: Fund your Business

Securing financing is your next step and there are plenty of ways to raise capital:

• Bank loans: This is the most common method but getting approved requires a rock-solid business plan and strong credit history.
• SBA-guaranteed loans: The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan .
• Government grants: A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
• Venture capital: Venture capital investors take an ownership stake in exchange for funds, so keep in mind that you’d be sacrificing some control over your business. This is generally only available for businesses with high growth potential.
• Angel investors: Reach out to your entire network in search of people interested in investing in early-stage startups in exchange for a stake. Established angel investors are always looking for good opportunities. 
• Friends and Family: Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
• Personal: Self-fund your business via your savings or the sale of property or other assets.

Bank and SBA loans are probably the best option, other than friends and family, for funding a hotel business. You might also try crowdfunding if you have an innovative concept. 

At some point, if you’re successful and want to open new locations, you may be able to attract angel investors or venture capital.

Step 8: Apply for Hotel Business Licenses and Permits

Starting a hotel business requires obtaining a number of licenses and permits from local, state, and federal governments.

You’ll likely need a Certificate of Occupancy Permit, which is issued by the building department official who has jurisdiction over your facility. The Certificate of Occupancy Permit will indicate which rooms are approved as dwelling units.

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration ( OSHA ), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package . They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money, you’ll need a place to keep it, and that requires opening a bank account .

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your hotel business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account. 

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

• General liability: The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
• Business Property: Provides coverage for your equipment and supplies.
• Equipment Breakdown Insurance: Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
• Worker’s compensation: Provides compensation to employees injured on the job.
• Property: Covers your physical space, whether it is a cart, storefront, or office.
• Commercial auto: Protection for your company-owned vehicle.
• Professional liability: Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
• Business owner’s policy (BOP): This is an insurance plan that acts as an all-in-one insurance policy, a combination of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business. 

Essential software and tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks. 

You may want to use industry-specific software, such as inRoad , TripActions , or Cloudbeds , to manage your bookings, room inventory, pricing, and payments. 

• Popular web-based accounting programs for smaller businesses include Quickbooks , Freshbooks , and Xero . 
• If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial.

Develop your website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.

You can create your own website using website builders . This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.

They are unlikely to find your website, however, unless you follow Search Engine Optimization ( SEO ) practices. These are steps that help pages rank higher in the results of top search engines like Google. 

For your hotel, the marketing strategy should focus on showcasing the unique experiences, comfort, and amenities you offer to guests. Highlight the quality of your accommodations, your exceptional service, and any special features like dining options, spa services, or unique local experiences. Here are some powerful marketing strategies for your future business:

Kickstart Marketing

• Professional Branding : Your branding should reflect the ambiance and experience that guests can expect at your hotel. This includes everything from your logo and website to the interior design and staff uniforms.
• Direct Outreach : Network with local businesses, travel agencies, and event planners. Building partnerships can help in attracting corporate clients, event bookings, and referrals.

Digital Presence and Online Marketing

• Professional Website and SEO : Develop a visually appealing website that showcases your rooms, amenities, and services. Use SEO best practices to rank for local searches related to hotels, accommodations, and lodging in your area.
• Social Media Engagement : Utilize platforms like Instagram for visually showcasing your hotel, and Facebook and Twitter for sharing promotions, guest reviews, and hotel news.

Content Marketing and Engagement

• Travel and Lifestyle Blog : Share blog posts about local attractions, events, and activities, as well as travel tips and hotel news. This positions your hotel as a go-to source for guests traveling to your area.
• Email Newsletters : Regular newsletters can update guests and potential visitors about special offers, upcoming events, and new services at the hotel.
• Video Tours and Testimonials : Create video content that gives virtual tours of your hotel and shares guest testimonials.

Experiential and In-Person Engagements

• Local Events and Tours : Organize local tours or events that can enhance the guest experience and showcase the uniqueness of your location.
• Participation in Travel Expos : Engage in travel expos and trade shows to promote your hotel to a wider audience.

Collaborations and Community

• Partnerships with Local Businesses : Collaborate with local attractions, restaurants, and service providers to offer guests special packages or discounts.
• Community Involvement : Participate in or sponsor community events to increase local visibility and contribute to the community.

Customer Relationship and Loyalty Programs

• Loyalty Rewards Program : Implement a program that offers repeat guests special discounts, room upgrades, or other perks.
• Guest Feedback and Personalization : Encourage guest feedback to improve services and personalize guest experiences based on their preferences.

Promotions and Advertising

• Targeted Online Advertising : Use platforms like Google Ads and Facebook to target potential guests, especially those searching for accommodations in your area.
• Special Packages and Seasonal Promotions : Offer special packages for holidays, local events, or off-peak seasons to attract guests.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that sets it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your hotel meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire. 

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your hotel business could be: 

• Enjoy the lap of luxury on your holiday
• Stay with us for less on your road trip
• Relax and renew with a day at the spa!

You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a hotel, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in hotels for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in hotels. You’ll probably generate new customers or find companies with which you could establish a partnership. 

Step 12: Build Your Team

If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a hotel business include:

• Housekeepers – clean rooms and common areas
• Hotel Clerks – greet guests, assign rooms
• Maintenance Workers – make repairs
• Valets – carry luggage
• General Manager – scheduling, accounting
• Marketing Lead – SEO strategies, social media

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need. 

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed , Glassdoor , or ZipRecruiter . Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent. 

Step 13: Run a Hotel – Start Making Money!

Hotels are bouncing back big-time as people get back out and travel. Starting a new hotel requires a major investment, but it provides a crucial service and can be very lucrative. If you have a passion for hospitality and serving your guests, you could build a major hotel chain that goes national, even global! 

Now that you know what’s involved, it’s time to break ground on your successful hotel.

• Hotel Business FAQs

Hotels can be very profitable. You’ll need a good concept, an excellent location, and offer great customer service to be successful.

The prices you charge will depend on the amenities you’ve built, and the quality of your rooms and furnishings. A luxury hotel or a boutique hotel in a great location can be $300 or more per night, while many chain hotels might charge $100 to $150 per night. Check local market prices to make sure you’re competitive.

Starting a hotel can be a challenging and complex process that requires significant planning, financial investment, and knowledge of the hospitality industry.

Revenue from room bookings and occupancy rates often play a significant role in a hotel’s profitability. However, other revenue streams such as food and beverage services, conference or event spaces, spa facilities, or additional amenities like fitness centers or swimming pools can also contribute significantly to overall profitability.

Consider factors such as the competitiveness of the local market, existing accommodation options, and potential demand generators like nearby attractions, events, or business centers. By understanding the market dynamics and aligning the room count with the target market’s needs, you can increase the chances of success.

Building a compelling online presence is essential. Invest in a professional website that showcases your hotel’s features, amenities, and unique selling points. Utilize online travel agencies and hotel booking platforms to reach a wider audience. Engage in search engine optimization to improve your website’s visibility. 

Highlight your hotel’s distinctive features, such as special amenities, architectural elements, or design aspects. Emphasize personalized service by training your staff to provide exceptional customer service and tailored experiences. Offer unique amenities or experiences that set your hotel apart.

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• Decide if the Business Is Right for You
• Hone Your Idea
• Brainstorm a Hotel Name
• Create a Hotel Business Plan
• Register Your Business
• Register for Taxes
• Fund your Business
• Apply for Hotel Business Licenses and Permits
• Open a Business Bank Account
• Get Business Insurance
• Prepare to Launch
• Build Your Team
• Run a Hotel - Start Making Money!

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Opening Doors to the World: The Hotel Business Adventure

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Event Planning Guide

The experienced event-planning staff at Moscow Hotels is ready to help you with any aspect of organization for MICE and private celebrations at hotels in Moscow. Just send us a Meeting Proposal Request with as much details as possible about your proposed event, and we'll be in touch soon with a number of options.

To help you choose the best venue for your particular Moscow event, we recommend that you consider the following aspects of event-planning:

When defining your budget for any event, remember that the rates for meeting space will only be one part of your expenditure, and make sure to allow a similar sum at least for equipment rental, refreshments, transport costs, etc. Once we know the type of event that you propose, Moscow Hotels will be able to provide you with an integrated estimate for all your meeting costs.

The choice of location depends, of course, not only on the best facilities available for your type of event, but also on where you will be staying and where most of your attendees will be traveling from. Many of the best and most prestigious MICE facilities are located in central Moscow, but bear in mind that traffic congestion in the city is often chronic, and downtown parking is also almost non-existent. Depending on your circumstances, you may well find it easier to use hotels on the outskirts of the city, near major airports, or near Moscow's major expo-centers.

In choosing your venue, you'll want to factor in not only the size and capacity of a space, but also its technical capabilities and the impression it will make on attendees. Remember that some of the most stylish and prestigious conferencing venues in Moscow often leave you with little opportunity to personalize the space for your own requirements. If you want to make your corporate identity felt to all attendees, you may be better off finding a more low-key, plain meeting space which can be decorated and adapted to your needs.

Depending on the type of meeting, you may well need more than one meeting venue to accommodate your event. For all except the smallest boardroom meetings, extra space can make a massive difference to the success of your meeting, allowing you to create a more personalized atmosphere, and giving you and your guests the chance to relax between sessions, with clear boundaries between working and rest areas, and the chance to share ideas under less formal circumstances. Many Moscow hotels offer transformer halls, which often provided the opportunity of creating a main meeting space and auxiliary break-out space for receiving guests and organizing refreshments.

As a general rule, the most important aspect of timing a meeting is to balance the agenda with the attention span of your attendees. Don't forget that successful meetings and conferencing events always require plenty of preparation time, and that is especially true in an unfamiliar atmosphere in a foreign country. Ensure that hotel staff fully understand what you require well in advance, and be sure to allow at least one hour for set-up, even for the most basic meetings.

Most hotels with MICE spaces in Moscow offer a reasonably extensive range of modern audiovisual equipment. However, never take for granted that all venues have exactly the equipment you need for your conferencing event. As a rule, if you have specific technical requirements, it is always worth checking with us before you book. Moreover, you will have to ensure that the materials you are bringing with you - software, electronic data, laptop computer, etc. - are compatible with local Moscow standards.

• Request a Meeting Proposal Send us the details of your meeting or event requirements, and we'll put together a proposal for Moscow meeting space that suites your purposes.   ›››

Business Plan Writer Moscow

A well written business plan is an essential component for any company seeking to raise capital. Our team at Prospectus.com has over 20 years of experience writing business plans and structuring business models for start-ups, later stage and expansion companies, those seeking venture or angel financing all the way to mezzanine and 144A funding, spanning a wide range of industries across the globe. We have been involved in thousands business projects and assisted with business planning, offering and private placement setup, feasibility studies, drafting financial projections, both for private companies and those seeking initial public offerings or listings on a stock exchange.  Our team is a recognized leader in business plan development. In fact, our CEO is the Chairman and Founder of  Borders.org  ( Business Plans Without Borders ), a not-for-profit 501c3 organization which assist low income families as well as refugees and immigrants with business plan writing services and grants.

Our Team’s Business Plan Advisory Services Value-Proposition:

• Our staff are known as one of the most reliable and affordable Business Plan developers in the U.S. and worldwide. Our straight forward and honest assessment of one’s business is one of our strongest characteristics
• Offices and associates in numerous countries, including New York, London, Hong Kong Beijing, Singapore and Seattle
• 1 to 2 weeks’ average time for completing business plans
• Proven track record of saving entrepreneurs thousands of dollars in needless spending while developing the business plan
• Ability to draft your business plan and prospectus or private placement memorandum or offering memorandum for debt or equity offerings or any other service and package    everything as one price
• We are somewhat of a one stop business for most of the startup and later stage company needs.

Moscow Business Plan Options

There are mainly two types of business plans that are written in Moscow: capital raising business plans and management or managerial business plans.

Raise Capital with a Business Plan

Most business plans are written with eye towards raising money for their venture. In a business plan that is written for investment capital, the structure of the business plans and therefore the most important point of the document will be the value-added benefit. Information on the products, services and the market will play central roles in the development of the plan, as well as various payout or exit strategies for the investors. Most business plans will focus on either selling equity or debt to investors.

• Equity : In an equity business plan the company seeking funding will sell an ownership stake. If the company is a corporation, they will sell shares or common stock or a variation of them. If the company is a LLC or a Limited Company (which is popular worldwide) interest or units in the company would be offered. Both a form of ownership, just with a different name for each entity. In additional, there are other sweeteners one can add into any business plan offering, including warrants or preferred shares or preferred units or convertible debt.
• Debt : in a debt offering business plan the company will be issuing some type of bond or a note to investors. A bond or note differ only in terms of the length of each security, which bonds being considered a longer maturity date than a note. There are also convertible debt securities that would convert the notes/bonds to equity at a certain fixed point in time. The business plan for bonds would detail the terms, such as the maturity date, interest rate and other vital information.

Managerial Guidance Business Plan

• No Capital Raising : In a managerial or a management business plan, the focus is not on raising money but what strategy a company should employ. While most companies that write business plans do so to raise capital, there are some that simply want to get a second opinion or an outside view of their business. They ask us to write them a business plan for growth opportunities, not to raise money. Said another way, the management of the company wants to see our view and take on their business and what we would do to expand their company.
• Recommendations : A business plan used to simply strategically plan one’s next move is referred to as managerial guidance business plan document. No capital is being raised initially, although sometimes we may conclude that capital should be raised for the company to penetrate or open new markets or opportunities. In the course of research, we may conclude that, in fact, the company should conduct an offering and raise money. We will recommend the amount to raise based on the company’s expansion needs and the company valuation.

3 Levels of Business Plans

Our firm offers various levels of business plan writing service and consulting, including: Level I Start-up Business Plan »

• Prospectus.com’s team consists of industry expert business plan writers. Our Level I Start-up Business Plan can be used for companies raising initial seed funding and getting off the ground. The dollar amount being raised is not of paramount importance.
• The Start-up Plan includes complete financials, potential cash-flow, market analysis and marketing strategies as well as a break-even analysis, and a separate executive summary and much more.

Level II Expansion or Series B Business Plan »

• Prospectus’ Level II Expansion or Series B Business Plan assists companies and entrepreneurs that are seeking to expand or scale their business, including by increasing market share.
• The Level II Start-up Plan helps to define concepts, target markets and market potential, as well as financial clarity necessary to define your concept, identify your market potential, and identify capital requirements. Executive summary included.

Level III Enterprise Business Plan »

• Prospectus’ Level III Enterprise Business Plan serves the need of those later stage and established companies seeking to raise additional capital to expand their businesses, often in the form of issuing debt securities such as bonds or convertible notes.
• The Level III Enterprise Business Plan is our most comprehensive business plan and often our clients will need a prospectus or a private placement memorandum (offering memorandum) written as well.

Our firm has years of experience drafting securities documents and is confident we can assist with your Moscow Business Plan Writer.  Feel free to contact us anytime, or call us to setup an appointment at any one of our global offices.

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Harvey Weinstein Conviction Thrown Out

New york’s highest appeals court has overturned the movie producer’s 2020 conviction for sex crimes, which was a landmark in the #metoo movement..

This transcript was created using speech recognition software. While it has been reviewed by human transcribers, it may contain errors. Please review the episode audio before quoting from this transcript and email [email protected] with any questions.

From The New York Times, I’m Katrin Bennhold. This is “The Daily.”

When Hollywood producer Harvey Weinstein was convicted for sex crimes four years ago, it was celebrated as a watershed moment for the #MeToo movement. Yesterday, New York’s highest appeals court overturned that conviction. My colleague Jodi Kantor on what this ruling means for Weinstein and for the #MeToo movement. It’s Friday, April 26.

[MUSIC PLAYING]

# Jodi, you and your reporting partner, Megan Twohey, were the ones who broke the Harvey Weinstein scandal, which really defined the #MeToo movement and was at the center of this court case. Explain what just happened.

So on Thursday morning, New York’s highest court threw out Harvey Weinstein’s conviction for sex crimes and ordered a new trial. In 2020, he had been convicted of sexually abusing two women. He was sentenced to 23 years in jail. The prosecution really pushed the boundaries, and the conviction was always a little shaky, a little controversial. But it was a landmark sentence, in part because Harvey Weinstein is a foundational figure in the #MeToo movement. And now that all goes back to zero.

He’s not a free man. He was also convicted in Los Angeles. But the New York conviction has been wiped away. And prosecutors have the really difficult decision of whether to leave things be or start again from scratch.

And I know we’ve spent a lot of time covering this case on this show, with you, in fact. But just remind us why the prosecution’s case was seen to be fragile even then.

The controversy of this case was always about which women would be allowed to take the witness stand. So think of it this way. If you took all of the women who have horrifying stories about Harvey Weinstein, they could fill a whole courtroom of their own. Nearly 100 women have come forward with stories about his predation.

However, the number of those women who were candidates to serve at the center of a New York criminal trial was very small. A lot of these stories are about sexual harassment, which is a civil offense, but it cannot send you to prison. It’s not a crime.

Some of these stories took place outside of New York City. Others took place a long time ago, which meant that they were outside of the statute of limitations. Or they were afraid to come forward. So at the end of the day, the case that prosecutors brought was only about two women.

Two out of 100.

Yes. And both of those women stories were pretty complicated. They had disturbing stories of being victimized by Weinstein. But what they also openly admitted is that they had had consensual sex with Weinstein as well. And the conventional prosecutorial wisdom is that it’s too messy for a jury, that they’ll see it as too gray, too blurry, and will hesitate to convict.

So prosecutors, working under enormous public pressure and attention, figured out what they thought was a way to bolster their case, which is that they brought in more witnesses. Remember that part of the power of the Harvey Weinstein story is about patterns. It’s about hearing one woman tell virtually the same story as the next woman.

It becomes this kind of echoing pattern that is so much more powerful than any one isolated story. So prosecutors tried to re-create that in the courtroom. They did that to searing effect. They brought in these additional witnesses who had really powerful stories, and that was instrumental to Weinstein being convicted.

But these were witnesses whose allegations were not actually on trial.

Exactly. Prosecutors were taking a risk by including them because there’s a bedrock principle of criminal law that when a person is on trial, the evidence should pertain directly to the charges that are being examined. Anything extraneous is not allowed. So prosecutors took this risk, and it seemed to pay off in a big way.

When Weinstein was convicted in February of 2020, it was by a whole chorus of women’s voices. # What seemed to be happening is that the legal reality had kind caught up with the logic of the #MeToo movement, in which these patterns, these groups of women, had become so important.

And then, to heighten things, the same thing basically happened in Los Angeles. Weinstein was tried in a second separate trial, and he was also convicted, also with that kind of supporting evidence, and sentenced to another 16 years in prison.

And on the same strategy based on a chorus of women who all joined forces, basically joining their allegations against him.

The rules are different in California. But, yes, it was a similar strategy. So Weinstein goes to jail. The world’s attention moves on. The story appears to end.

But in the background, Weinstein’s lawyers were building a strategy to challenge the fairness of these convictions. And they were basically saying this evidence never should have been admitted in the first place. And Megan and I could tell that Harvey Weinstein’s lawyers were getting some traction.

His first appeal failed. But by watching the proceedings, we could tell that the judges were actually taking the questions pretty seriously. And then Weinstein’s lawyers took their last shot. They made their last case at the highest level of the New York courts, and they won. And that panel of judges overturned the conviction.

And what exactly do these judges say to explain why they threw out this conviction, given that another court had upheld it?

Well, when you read the opinion that came out on Thursday morning, you can feel the judge’s disagreements kind of rising from the pages. # Picture sort of a half-moon of seven judges, four of them female, listening to the lawyer’s arguments, wrestling with whether perhaps the most important conviction of the #MeToo era was actually fair. And in their discussion, you can feel them torn between, on the one hand, the need for accountability, and then, on the other hand, the need for fairness.

So there was a sort of sense that this is an important moment and this case represents something perhaps bigger than itself.

Absolutely. There was a lot of concern, first of all, for what was going to happen to Weinstein himself, all that that symbolized, but also what sort of message they were sending going forward. So in the actual opinion, the judges divide into — let’s call them two teams. The majority are basically behaving like traditionalists.

They’re saying things like, here’s one line — “under our system of justice, the accused has a right to be held to account only for the crime charged.” They’re saying there was just too much other stuff in this trial that wasn’t directly relevant, didn’t directly serve as evidence for the two center acts that were being prosecuted.

So those majority-opinion judges simply say that this was a kind of overreach by the prosecutor, that this isn’t how the criminal justice system works.

Exactly. And then, if we called the first team of judges the traditionalists, let’s call the dissenters the realists. And they’re talking about the way sexual crimes play out in the real world and what’s necessary to effectively prosecute them. And they are incredibly critical of the majority.

They use words like — I’m looking at the pages now — “oblivious,” “naive,” phrases like “an unfortunate step backwards,” “endangering decades of progress,” “perpetuates outdated notions of sexual violence,” “allows predators to escape accountability.” What they’re saying is that these rules of evidence have to be somewhat flexible in the real world, because otherwise they’re not going to capture what really happened.

You can really sense the passion in this argument. You know, you really get the sense that this court is bitterly divided over this question. And what I’m hearing the dissent basically saying is that if we overturn this conviction, we’ll be pushing ourselves backwards. This is regress.

And that the evidence served a really important function in the trial, that something is lost without it.

But in the end, that point of view lost out. In this case, the traditionalist judges prevailed by a single vote.

We’ll be right back.

So, Jodi, now that this conviction has been overturned, what’s next for Harvey Weinstein?

Well, back in New York, prosecutors have a really tough question to face, which is, do they retry this case? On the one hand, the Weinstein conviction meant so much to so many people that to just drop it seems very unsatisfying.

But on the other hand, their attempt failed. Those women are going to be very difficult to get back on the stand. And are they really going to start from zero and do this all over again?

Especially given that this conviction has just been overturned?

Exactly. But meanwhile, the other thing to keep your eye on is the appeals in the California case. Weinstein’s attorney told The Times that next month, they are going to file an appeal in California that will make many of the same arguments that they did in New York.

Now, the California rules are a little clearer on what evidence is admissible. So we don’t know exactly what’s going to happen. But I should add that this attorney is the same one who succeeded in getting Bill Cosby’s conviction thrown out.

So is there a world in which all the convictions against Weinstein will be overturned?

Sure, Katrin. It’s very plausible.

Wow. Now, given that, what does this ruling mean for other legal cases, for other #MeToo cases that are currently moving through the legal system?

Well, it’s definitely a symbolic blow for the #MeToo movement and also for accountability, which is part of what powers the movement. If you think of progress like a wheel spinning forward, part of what powers the wheel is accountability, because women only want to come forward if they think something may actually happen. When they see consequences for some men, it encourages others to step forward.

But that doesn’t really feel like a symbolic blow. # That actually feels like a real setback, because if the promise of accountability was what was driving the #MeToo movement and sort of persuading all these women to come forward, then this ruling seems to be undercutting that.

Well, it’s also a sign of health in the system, because what we’re seeing in prosecutions across the country is more testing of this sort. Prosecutors are starting to bring cases that they never would have brought years before. Maybe they’re messier. Maybe the evidence isn’t perfect. Maybe they’re less traditional.

And so to prove those cases, you have to try to get new kinds of evidence in court. And some of those attempts are going to succeed, as they did in the Weinstein trial the first time around. And some of those efforts are going to fail, as we see with the overturning of the conviction. # But that kind of experimentation, potential expansion, is potentially a sign of the health of the system and the idea that the legal system may be, to some degree, catching up with #MeToo.

So you’re saying another way to look at this case is that it sort of represents a legal system trying to navigate this new reality and sort of trying to figure out in real time how to deal with these kinds of cases. It’s almost like a trial and error, “one step forward, two steps back” dynamic.

But also, I want to add that you can’t score #MeToo like a basketball game. Every time there is some big outcome in a #MeToo case — R. Kelly gets convicted, Governor Cuomo resigns, Bill Cosby gets convicted, Bill Cosby walks free — there can be this temptation to draw huge conclusions from that. It’s a victory for me, too. It’s a loss for me, too.

But these cases are not necessarily reliable indicators of what’s really happening, what’s really changing, because what we’re also seeing is real structural change on the legal level. Laws protecting women have changed in, I think, 23 states since 2017. The New York statute of limitations was extended for rape directly in response to the Weinstein allegations. It’s now much longer.

And recently, New York state opened a kind of new window for survivors to sue for long ago offenses. So even as these individual cases rise and fall one by one, the system is slowly changing.

Hmm. So on the one hand, the Harvey Weinstein case actually changed legislation and created this whole new set of laws around these kinds of cases. But on the other hand, the criminal case against him was ultimately shot down. So I guess my question is, how should we think about the Weinstein case? # And does any of this change the way we should see his case as the kind of defining case of the #MeToo movement, and Weinstein himself as the defining central character?

I think the question that Megan and I have had for a long time is whether any criminal conviction in any city is really the best measure of what Harvey Weinstein did or didn’t do, because at its essence, the Harvey Weinstein story is about work. What was really special about him as a producer, his particular genius, was for making careers.

He made Gwyneth Paltrow. He made Matt Damon, Quentin Tarantino, a lot of producers who are very successful now. That was kind of his superpower. But what we now know is that he also used that superpower to manipulate and hurt women. In story after story about Weinstein, the same motifs come up.

A lot of these women were really young. It was their first day, their first week, their first month on the job. They wanted opportunity. They wanted a piece of the action.

So though the annals of the Harvey Weinstein story do include these instances of very troubling, allegedly criminal behavior, like rape, the essence of the story, I think, is about what happens to women in the workplace — the opportunities they have, the way their ambitions can be used against them. And that’s not something that any criminal court can capture.

You know, when you talk to Weinstein victims, of course, you hear the famous things they’ve said about the kind of physical offenses — the bathroom stories, the hotel room stories. But you also hear them talk about their own careers.

They say things like, I lost opportunities because of this, or, I could never work in Hollywood again. And they say, my whole life is different because of that. I can never get those years back. And it’s just not something that any criminal court is quite built to capture.

So in a way, you’re saying that the story is much bigger than those criminal allegations against Weinstein. In a way, they’re the tip of the iceberg. But underneath, there is this whole culture of men abusing their power, against women in particular, in the workplace.

Exactly. And thanks in large part to the #MeToo movement, this is behavior that used to be widely tolerated, and it’s no longer socially acceptable.

And, Jodi, I wonder, have you spoken to some of the women that you spent years talking to and hearing from who came forward to share their stories about Weinstein and others? Have you spoken to them since this latest news?

Yes, and I have to tell you, the Weinstein survivors are pretty resolute. They don’t really see this as changing the story.

When we first got the news from the court, the first person I called was Ashley Judd, the first actress who came forward about Harvey Weinstein. And what she said to me was that she was disappointed, that this was upsetting, but she was also unwavering. She said to me, “We know what really happened.”

Mm-hmm. And I guess, in some ways, that’s the legacy. The truth was aired in a court of law.

We never knew what the legal system would do. We never knew whether he would be convicted or not. But the story stands. It’s the women who are the narrators of this story now, and that won’t be overturned.

Jodi, thank you very much.

Here’s what else you need to know today. On Thursday, the Supreme Court heard arguments over whether former president Donald Trump should have legal immunity for allegedly interfering with the 2020 presidential election after he lost the race to Joe Biden. Trump’s lawyers have argued that his actions, because he was still president at the time, should be shielded from prosecution.

Their arguments were unanimously rejected in February by a lower court. But on Thursday, the Supreme Court’s conservative majority seemed more receptive to Trump’s claims. If the court rules in the former president’s favor, it could potentially delay any trial in the matter until after the election.

And one other thing you should know before you go today — this weekend, we’re going to start sharing with you a brand-new show from some of our colleagues. It’s hosted by David Marchese and Lulu Garcia-Navarro, and the idea of the show is simple and classic. Every week, one of them will interview someone fascinating — actors, politicians, athletes, writers. They’re calling their podcast just “The Interview.”

This weekend, their first couple episodes are perfect examples. Lulu speaks with Yair Lapid, the leader of the political opposition in Israel. David speaks with actress Anne Hathaway. We’ll be sending you those shows right here on Saturday and Sunday. I hope you’ll give them a listen.

Today’s episode was produced by Nina Feldman, Rikki Novetsky, and Carlos Prieto. It was edited by MJ Davis Lin and Liz O. Baylen, contains original music by Dan Powell and Elisheba Ittoop, and was engineered by Chris Wood. Our theme music is by Jim Brunberg and Ben Landsverk of Wonderly.

That’s it for “The Daily.” I’m Katrin Bennhold. See you Monday.

• April 30, 2024   •   27:40 The Secret Push That Could Ban TikTok
• April 29, 2024   •   47:53 Trump 2.0: What a Second Trump Presidency Would Bring
• April 26, 2024   •   21:50 Harvey Weinstein Conviction Thrown Out
• April 25, 2024   •   40:33 The Crackdown on Student Protesters
• April 24, 2024   •   32:18 Is $60 Billion Enough to Save Ukraine?
• April 23, 2024   •   30:30 A Salacious Conspiracy or Just 34 Pieces of Paper?
• April 22, 2024   •   24:30 The Evolving Danger of the New Bird Flu
• April 19, 2024   •   30:42 The Supreme Court Takes Up Homelessness
• April 18, 2024   •   30:07 The Opening Days of Trump’s First Criminal Trial
• April 17, 2024   •   24:52 Are ‘Forever Chemicals’ a Forever Problem?
• April 16, 2024   •   29:29 A.I.’s Original Sin
• April 15, 2024   •   24:07 Iran’s Unprecedented Attack on Israel

Hosted by Katrin Bennhold

Featuring Jodi Kantor

Produced by Nina Feldman ,  Rikki Novetsky and Carlos Prieto

Edited by M.J. Davis Lin and Liz O. Baylen

Original music by Dan Powell and Elisheba Ittoop

Engineered by Chris Wood

Listen and follow The Daily Apple Podcasts | Spotify | Amazon Music

When the Hollywood producer Harvey Weinstein was convicted of sex crimes four years ago, it was celebrated as a watershed moment for the #MeToo movement. Yesterday, New York’s highest court of appeals overturned that conviction.

Jodi Kantor, one of the reporters who broke the story of the abuse allegations against Mr. Weinstein in 2017, explains what this ruling means for him and for #MeToo.

On today’s episode

Jodi Kantor , an investigative reporter for The New York Times.

Background reading

The verdict against Harvey Weinstein was overturned by the New York Court of Appeals.

Here’s why the conviction was fragile from the start .

There are a lot of ways to listen to The Daily. Here’s how.

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The Daily is made by Rachel Quester, Lynsea Garrison, Clare Toeniskoetter, Paige Cowett, Michael Simon Johnson, Brad Fisher, Chris Wood, Jessica Cheung, Stella Tan, Alexandra Leigh Young, Lisa Chow, Eric Krupke, Marc Georges, Luke Vander Ploeg, M.J. Davis Lin, Dan Powell, Sydney Harper, Mike Benoist, Liz O. Baylen, Asthaa Chaturvedi, Rachelle Bonja, Diana Nguyen, Marion Lozano, Corey Schreppel, Rob Szypko, Elisheba Ittoop, Mooj Zadie, Patricia Willens, Rowan Niemisto, Jody Becker, Rikki Novetsky, John Ketchum, Nina Feldman, Will Reid, Carlos Prieto, Ben Calhoun, Susan Lee, Lexie Diao, Mary Wilson, Alex Stern, Dan Farrell, Sophia Lanman, Shannon Lin, Diane Wong, Devon Taylor, Alyssa Moxley, Summer Thomad, Olivia Natt, Daniel Ramirez and Brendan Klinkenberg.

Our theme music is by Jim Brunberg and Ben Landsverk of Wonderly. Special thanks to Sam Dolnick, Paula Szuchman, Lisa Tobin, Larissa Anderson, Julia Simon, Sofia Milan, Mahima Chablani, Elizabeth Davis-Moorer, Jeffrey Miranda, Renan Borelli, Maddy Masiello, Isabella Anderson and Nina Lassam.

Katrin Bennhold is the Berlin bureau chief. A former Nieman fellow at Harvard University, she previously reported from London and Paris, covering a range of topics from the rise of populism to gender. More about Katrin Bennhold

Jodi Kantor is a Pulitzer Prize-winning investigative reporter and co-author of “She Said,” which recounts how she and Megan Twohey broke the story of sexual abuse allegations against Harvey Weinstein, helping to ignite the #MeToo movement.    Instagram • More about Jodi Kantor

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