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The hotel industry has picked up momentum in recent years due to a boost in the travel and tourism industry. Given this, starting a business in this industry is a good idea for aspiring entrepreneurs. But like every business, you need a viable hotel business plan to get started.

With a business plan for a hotel, you lay the foundation of your business and map out a clear path towards objectives. Whether you plan to start big or small, a hotel business plan can ensure that you move in the right direction and in alignment with your goals. 

Moreover, with a hotel business plan in hand, you can easily apply and acquire the funds you need to get started. To know the important components of a new hotel business plan, how to plan, details regarding business loans, and more, read on.

Process of Forming a Business Plan

1. Executive Summary

This is a vital section of your new hotel business plan as it gives a snapshot of the plan and goals. Ensure that there is a concise and clear mission statement that explains the why, how, and what of your business idea. 

Since it is a crucial aspect and summarises your whole plan, you should work on this section after you have worked on the others. This will give you the best insight and enable you to write an executive summary that reflects your vision and goals.

2. Strategy 

Having a strategy is an important part of creating a successful hotel business plan. In this section, you need to map the strategy that will help you achieve the goals and milestones. You should also strategise for possible challenges to stay prepared. Make sure that your strategy answers the basics, such as:

  • Types and pricing of the rooms you will offer

  • Your plan to maintain consistent occupancy, even in the off-season

  • Your plan for revenue management, and how will you do that

  • Your plan to manage online presence and reservations

3. Comprehensive analysis

  • Industry 

Every industry is affected by factors that are beyond anyone’s control. As such, having an industry analysis in your hotel startup business plan is essential. Here, you need to look at the micro and macro trends that leave an impact on the hotel industry. Ensure that you identify the possible challenges and risks and how you can mitigate them.

  • Customer 

For any business to achieve success, customers are a crucial factor. You need to understand the demographic you are targeting. This includes knowing the preferences, dislikes, needs, and more. This gives you an edge in offering services that meet your customers’ expectations.

  • Competitor 

In a highly competitive market, understanding what your competitors are doing right and wrong gives you insight into what you need to focus on. The best way to do a competitor analysis is by doing a SWOT analysis, as it covers the major aspects you need to consider before starting the business.

4. Marketing Strategy

Whether it is a big or small hotel business plan, your marketing strategy is a component that will give investors a glimpse into the business. Many can even determine if it will be successful or not at this stage. Ensure that your marketing strategy is all encompassing, targeting the right audience across platforms and touchpoints. 

5. Operations and Management

These sections will cover how you plan to operate and manage your hotel business. In the operations section, you need to focus on your staffing requirements, create SOPs for the service you will offer, tech-enabled solutions you plan to deploy, and other daily tasks requirements.

For the management section, make sure you focus on how the staff and inventory will be managed. You need to outline the requirements of your core management team that will ensure that operations run smoothly.

6. Financing

Your financial plan is another major factor that the investors will look at. This section should give an idea about what the investor needs to invest and how you will utilise the invested funds. Focus on your operating cost, startup costs, projections about the cash flow, balance sheet, income statement, and more. 

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Planning for The Establishment of a Hotel Business

Whether it’s a small business or large one, planning is a crucial aspect in ensuring that you have a successful venture at your hand. With regards to the hotel business, you need to consider the following to establish a successful business:

  • Conduct thorough research to assess the feasibility and growth prospects 

  • Consult a financial expert to understand the projected expenses and income

  • Assess the type of hotel you are establishing and the staffing requirements

  • Review the location and finalise one that promises the most for your goals

  • Prepare a plan to manage finances and operations until you reach the break-even point

Comparison of Business Loan Interest Rates offered by Top Banks/NBFCs

Here is an overview of business loans offered by top financial institutions:

Financial institution

Interest rates 

Loan amount

Repayment tenure


16.00% p.a. onwards

Up to ₹1 Crore

Up to 36 months

AYE Finance

28.00% p.a. onwards

Up to ₹2 Lakhs

Up to 36 months


10.00% p.a. onwards

Up to ₹50 Lakhs

Up to 48 months

Kotak Mahindra Bank

17.00% p.a. onwards

Up to ₹75 Lakhs

Up to 48 months

Disclaimer: The above interest rates and other terms are subject to change at the lender’s discretion.

Eligibility Criteria for a Hotel Loan

With credit being readily available, you can get the financing you need for your hotel business plan through a loan. Lenders now offer great deals on business loans that give you the funds you want at an affordable cost. 

However, meeting the eligibility requirements of the lender is critical. Listed below are the eligibility criteria you need to meet to avail a business loan from Bajaj Markets:

  • You must be between 25-65 years of age

  • You must be a self-employed individual in partnership, service, trading, or manufacturing

  • The turnover of your establishment should be at least ₹10 Lakhs

  • Your enterprise must have had stable profits in the last two years

  • You must have IT returns for at least one year

Documents Required for a Hotel Loan

For a seamless application process, ensure that you have the following documents ready:

  • Address proof: lease agreement, utility bills, passport, Aadhaar card

  • ID proof: Voter’s ID, driving licence, passport, PAN card

  • Certificate of Memorandum and Articles of Association

  • Copy of partnership deed (authenticated) or sole proprietorship declaration

  • Bank statements (last six months)

  • ITR and certified copies of financial statements (last two years)

How to Apply for a Business Loan on Bajaj Markets

Applying for a business loan on Bajaj Markets is easy and takes only a few clicks. Simply follow the steps given below:

  • Visit the Business Loan page on the official webpage

  • Click on ‘Apply Now’

  • Enter the required details

  • Check your offers

Once your application gets processed and approved, the lender will disburse the sanctioned amount to your bank account. At Bajaj Markets, you can get a business loan of up to ₹50 Lakhs with a repayment tenure that goes up to 60 months. 

You can also enjoy competitive interest rates starting at 12% per annum and get the funds you need to get your business idea off the ground. 

FAQs for Hotel Business Plan

Lenders generally offer hotel loans in the form of term loans, invoice discounting, merchant advances against POS sales, and lines of credit.

If you are thinking of a hotel startup, a business plan is a must. In that plan, you should feature the comprehensive analysis of the industry and map out the management and operations strategy and financing ideas.

The basic costs one needs to understand before investing include working capital, operational costs, marketing costs, licence and legal costs, and other ancillary costs.

Staff that you should hire before starting a hotel business are managers, customer support executives, cleaners, sweepers, washers, waiters, and housekeepers.

As a hotel business owner, you need the FSSAI issued food safety licence, Eating House License issued by licensing police commissioner, Liquor License issued by the local excise commissioner, Health and Trade License issued by the local civil authority, Fire Department License issued by the fire department.

Yes, a hotel business plan is crucial in attracting investors.

Yes, location is one of the most important factors in ensuring a successful hotel business.

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