Help with Business Plan

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08/19/2012

My wife and I are pursuing the purchase of a beautiful historic Arts and Craft hotel.  I am a lifelong Hotelier, and have been looking for this type of opportunity for years.  We have fallen in love with this place, but need some help.  I am in the process of putting together a business plan for a group of potential investors as well as our banker. 

With all of the experience out there on this blog, what can I do to set ourselves apart?  How can I convince the investor/bank that I am going to be more successful than the last operator? 

Are there specific marketing idea's I should present?

In short, the current operator is not "an owner/operator" and we will be. 

Any idea's, suggestions, help would be more than appreciated!

Best Regards,

Jay and Denise.

 

seashanty's picture
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06/02/2008

say just what you said about your qualifications.  list the up sides the place already has and then add in that you will be owner/operators (on site innkeepers?) and your goal of promoting stays by business guests, include the amenities that gillum house suggested for business guests  ... make it sound a bit more formal and you have it.

look at the places within a reasonable radius ... 10 miles, 20 miles? see what they offer, look at their occupancy rates ... can you mirror or better those places? 

financials are difficult so you will have to project possible numbers. 

have you taken an innkeeping seminar?  i took one and they were terrific at explaining how to project occupancy. 

good luck!

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Joey Camb's picture
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04/02/2010

this is why banks in the UK have stopped lending on the value of Bed and Breakfast businesses (ie used to be property and business in a 1/3 business 2/3 property) because they have realised that so much of the business rests on the owner ie being good or being crap, plus banks arnt going to step in and run the business if the worst comes to the worst.

 Also Linked in might be a good way to target local businesses.

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Joey Camb's picture
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04/02/2010

For me step (1) would be - what are they doing now?

How can you market to the Local Corporate Market ? ie how do they book? do they use specific agents, chamber of commerce members, booking sites?

and so on. For myself which has worked effectively is getting the local paper - any mention of a new business or expansion they get a letter from me offering a corporate rate. You do have to be carefull to keep a list of who you have been in contact with so as not to batter them with rubbish.

Madeleine's picture
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09/29/2011

What sets you apart is you. BUT, you need to show the investors that YOU are worth the risk. What do you bring to the table other than wanting to do this? What experience? What have you been doing at your other hotelier properties that has increased business and made repeat business skyrocket? Why are your present empolyers going to cry in their beer when they hear you are leaving?

Essentially, you are applying for a new job with these investors. Why should they hire YOU?

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08/19/2012

Thank you! 

The location is in the Midwest and is in a smaller town of approximately 10,000 people.  The property has been fully renovated and is in prestine condition. 

There are plenty of recreational activities and the property has done well on weekends, but not so good during the week with Business Travelers.

It does offer some upscale meeting space and boardroom.  I was thinking of promoting a "Retreat" type package for neighboring metropolitan area's.  Approaching companies to let them know our location and environment would be awesome for "off site" meetings in which they want total segregation from their office and technology. 

Thanks for your help!
 

Kay Nein's picture
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02/13/2012

 Along the lines of your "Retreat" for off-site meetings, consider putting together a "Team Building" package.  You can find a facilitator that can be hired to run it and include their fee in the package - Hotel, team building activities, local activities during down time.  Serious businesses see the benefits of Team Building experiences for their employees.  By targeting certain business demographics, you could make a name for yourself with this type of offering.  Also, the facilitator would probably be marketing that they would be having an event at your location.  If it works out, you might find that they start booking their own events with you.

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08/19/2012

Great Idea!  Thank you. 

gillumhouse's picture
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05/22/2008

With Biz travelers wooing, I would emphasize free wifi, biz center arrangement, late check-ins and early breakfast (or to-go breakfast) available and a very flexible cancellation policy for business during the week. Regular type cancel policy on weekends.

gillumhouse's picture
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05/22/2008

That you WILL be owner/operator sets you apart from the previous. Without knowing location, location, location, as well as condition of building, regs, available $$$, down payment, $$$$ in reserve I think it would be impossible to advise with a business plan. So many variables. At least that is my opinion. Perhaps someone else has something more for you.

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