Starting a Hotel

[Truman]

Any advice you could give would be greatly appreciated.

[myfayt]

Please provide more information. I can't help you unless I know what you need help with.

[paul2145r]

Starting a hotel is difficult.

I apologize that my answer is as vague as your question. It's all that I can do with the information that you have given us.

[Truman]

To be more specific: I have no idea how to start writing a business plan for my hotel.

[GriZzly]

Let's start with what you do know. What experience do you have in terms of running a hotel or something similar? How much money have you budgeted for?

[myfayt]

You can print out free business plan tutorial sheets. SCORE has a nice 30 page one that gives you examples and tells you what to put down. Just follow what it says and you have a business plan.

[hensy]

myself and my family currently own a hotel in arkansas and other states. Are you wanting to start your own brand or buy a franchise? If you are loooking into buying existing hotel, loopnet.com mumfordcompany.com and innvest.com are good sources to scope around for hotel that are for sale across US. Be ready to have huge amount of downpayment now days. Most banks prefer 30-35% down payment in this state of economy. Let me know if you have any other questions.

[ScottRobertson]

myself and my family currently own a hotel in arkansas and other states. Are you wanting to start your own brand or buy a franchise? If you are loooking into buying existing hotel, loopnet.com mumfordcompany.com and innvest.com are good sources to scope around for hotel that are for sale across US. Be ready to have huge amount of downpayment now days. Most banks prefer 30-35% down payment in this state of economy. Let me know if you have any other questions.

I don't have the hotel experience that you have, but I thought in a regular economy banks required around 65% LTV on commercial property? Maybe even more for a hotel, given that it's cash flows are much less predictable and stable.

Either way.. OP, you're going to need a large down payment and a pretty solid pro-forma before any source of financing is going to think twice about a hotel.

[hensy]

yeh and right now lot of properties are going for 4 and 5 times their gross in some area. Some market are overly priced its crazy.

[Truman]

I would essentially write up a business plan for a completely new type of hotel. I have NO money, so I would be looking to venture capitalists on this one. I'm just sorta lost on the business plan...

[mojomediaman]

Start by looking at what a business plan consists of. Use the sites that were provided in the thread already. Look at the feasibility of your project first, then tackle projects one at a time, while keeping the big picture in mind.

I guarantee you will face more daunting challenges in opening a hotel than being stuck on the idea of a business plan.

Starting a hotel is a high risk, high investment, high barrier business. I would not be too scared about sharing your idea in a broad sense. Then we can give you more help.

[bizmodels]

Do you plan on buying a hotel franchise?

[Southern_Lenders]

Look at buying cheap, dirty motels and turning them around.

[my_misyel]

I agree with you all. You must check on your resources, and then decide which kind of investment you would like to pursue. Is it franchise? or a new one? And then make a business plan. you can research it also through online to give you insights on the tips of other hotel owners.

[Jamie_Irwin]

If you're planning on renovating a hotel property, I would advise watching the series "The Hotel Inspector". Expert renovation tips!