Hotel Business Plan: Bed and Breakfast

Business Plan Template for Hotels and Boutique Hotels

Executive Summary

This is a hotel business plan, with a major focus on the hotel marketing plan.  This plan outlines what the owners need to do in order to take the hotel from mediocre to strong financial and marketing performance.  The hotel, called the Magnolia Inn, is located on a bluff with a scenic view of the Pacific Ocean.  The Inn will increase its financial results by improving customer care, increasing its visibility on the web, controlling staff costs, and by launching new marketing programs.  The owners, a married couple, have managed the hotel for a period but now want to see improved performance for their hotel investment.

Hotel Market Positioning

The Inn is a beautiful “get-away” destination for couples.  It offers seven individually furnished rooms.  The hotel is a complete bed and breakfast with a complimentary breakfast served each morning to guests.  The target market strategy is to become a destination of choice for professional couples in the area looking for a place to relax and recharge. We will also advertise to newly married couples looking for that special get away.  Management will install new highway signage to improve the hotel’s visibility to possible guests who are driving by on the highway.

Hotel Business Plan Forecast: Sales, Margin and Net Profit

Inn Marketing Plan

Management will launch a new marketing initiative.  It will include:

• Create an eye catching sign encouraging drop-ins to visit
• Place prominent ads in multiple editions of the Yellow Pages
• Build social, PPCs and SEO programs to ensure the people searching the web for a hotel can discover it easily.  The social marketing efforts will support satisfied customers who will evangelize on behalf of the hotel’s character.
• Retain a professional photographer to create images that communicate the hotel’s ambience and show the character of each unique guest room.  Use these images in the Yellow Pages and in web promotion activities

The Magnolia will have an eye-catching sign that will alert potential customers and drop-ins of our existence. We will use the Yellow Pages in the Bay area to market our Inn, as

The owners are confident that it will not take long to build a following that will put the hotel at full capacity within a   year. The Inn would like to see steady growth with an average of over 90% capacity for Year 1, with profits also growing at a rate of 10%.

Financial Plan:  Focus on Cost Controls

The owners of the Inn live there all year.  They are hands-on owners.  They oversee every aspect of the Inn's operations.  They will maintain a watchful eye on staff size and hours.  A small staff consisting of a cook and a house cleaner will work at the Inn. The cook will work 20 hours per week and the house cleaner will be on the payroll 40 hours per week, as she will help the owners take reservations and watch the front desk when needed. The owner’s wife will oversee   inside operations working with the house cleaner and cook as well as taking reservations. The husband will oversee maintenance of the Inn and grounds and drive the shuttle van when guests need rides. Both members of the ownership couple will promote the Inn and oversee the advertising.

Hotel Proft Forecast by Month:

Mission Statement

The Magnolia Inn will provide a serene setting for guests to enjoy the many splendors and serenity of the coast. Management and staff will give each guest caring attention. When our guests arrive, the Inn staff will help guests to leave their troubles at the door and step into a world of luxury and rest.

Keys to Success

The primary keys to success for the Inn are:

• Provide a facility that is first class with attention to detail.
• Give each guest a sense that he or she is our top priority.
• Provide quality meals.
• Retain our guests to ensure repeat bookings and referrals.
• Ensure the marketing plan is fully and aggressively executed

Inn Business Plan Objectives

• Customer satisfaction rate greater than 90%.
• Monthly sales greater than $26,000 per month.
• Occupancy above 90% each month.  

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