Hotel Business Plan Example


Eleven Palms Hotel
BUSINESS
PLAN
Sunrise and sunset right from your bed
Prepared By  10200 Bolsa Ave, Westminster, CA, 92683
 John Doe  [email protected]
 (650) 359-3153  http://www.example.com

Table of Contents
Executive Summary 5
Business Overview 6
Management 6
John Doe 6
Objectives 6
Mission Statement 7
Location and Facility 7
Business Overview 8
Ownership 9
John Doe 9
Steve Cowan 10
Key Advisors to the Company 10
Corporate Development Plan 11

Phase I 11
Phase II 11
Market Analysis 12
Economic Environment 13
Geographical/Competitive Environment 13
Legal/Political Environment 14
Technology Environment 14
Competitive Environment 14
High Line ($139-$750 per night, depending upon season) 15
Motel ($59-$119 per night, depending upon season) 15
Bed & Breakfast (B&B) 15
Market Research 16
Summary of Opportunities and Threats in the Environment 16
Competitive Analysis 18
Competitive Advantage 19
Eleven Palms Hotel | Business Plan [YEAR] 2/39

Industry Keys to Success 19
SWOT Analysis 20
Strategy & Implementation 21
Marketing Strategies 22
Target Markets - Consumer 22
Positioning and Product Strategy 23
Distribution Strategy 23
Pricing Strategy 23
Service and Support Philosophy 25
Marketing Plan 26
New Business Segment 27
Publicity and Public Relations 27
Guest Reward Programs 28
Advertising 28
Marketing and Promotion Budget 28
Evaluation & Control Strategies 29
Financial Plan 30
Project Funding Summary 31

Phase 1 Funding Amounts Sought 31
Financial Plan Assumptions 32
Projected Profit and Loss 32
Balance Sheet 35
Cash Flow Projections 36

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1.
Executive Summary
Business Overview
Management
Objectives
Mission Statement
Location and Facility
Business Overview
 Eleven Palms
Eleven Palms is an adult-marketed, 17-room "boutique-style" hotel specializing in a couples'

"getaway" to provide relaxation and recreation in Benzie County, a popular tourist spot located
next to the state of Michigan's Lake Michigan. Moderately priced between the high-line hotel
To unlock help try Upmetrics! 
properties and the older motel strips, Eleven Palms shall fill an affordability niche not presently
available in Benzie County. We are seeking funds for the acquisition and renovation of Eleven
Start writing here..
Palms.
Combined with an on-site lounge, grill, poolside beverage service, and morning continental
Management
breakfast bar, we are seeking investment funds to renovate the hotel building, build-out a piano
bar/lounge area with a dance floor, and construct an outdoor pool adjacent to the indoor pool.
With this refurbishment and other new amenities, Eleven Palms will form the basis of a highly
profitable hotel venture. We are seeking funds to develop and expand the business in a phased
Johnwithin
approach, as highlighted Doe this document.
Owner - [email protected]
Mr. Doe is an owner of Eleven Palms, He has an extensive business

background, including over 14 years of experience developing a variety of
businesses. Mr. Doe received his B.A. in Business Economics, and currently is
an M.B.A. candidate at the University of Michigan. Desiring to return to his own
business, he wishes to establish Eleven Palms, Inc. in 2010.
Objectives
 Eleven Palms
1. Attract $1.4 million mortgage/investment capital;

2. Focus ideas and establish goals;
3. Identify and quantify objectives; To unlock help try Upmetrics! 
4. Track and direct growth;

5. Create benchmarks for measuring success.
The business of Eleven Palms, Inc. is the creation of and funding of an adult couples' 17-room
hotel, specializing in a "getaway" atmosphere to provide relaxation and recreation in the Greater
Benzie County/Lake Michigan area. Management is soliciting commercial finance partners who
share its vision and desire to participate in this exciting business opportunity in the resort
community of Benzie County, Michigan. The integration of these disciplines results in extensive
and innovative services, set in a unique Prairie Style surrounding for our prospective guests.

Mission Statement
 Eleven Palms
Eleven Palms, Inc.'s mission is to provide quality hospitality services to our guests in a
comprehensive and cost-competitive manner, providing the finest accommodations in Benzie
County, Michigan.
 Eleven Palms
The preferred location is a 10-acre parcel with 8 acres of

woods. Of the 18 rooms, 3 are executive suites, with
Jacuzzi tubs, and one of them will be converted to an
onsite manager's apartment. Each room has individual
climate control, direct-dial phones, and televisions. The
Location
facility hasand
a largeFacility
main lobby area, indoor pool/Jacuzzi/
Sauna, lighted tennis court, 2-car garage, storage shed,
ample parking, and all equipment necessary for the
operation of the motel. The separate onsite manager
residence and meeting room complex will serve as a
future lounge/grill space. The grounds are beautifully
landscaped.
The motel is located in the motel district of Benzie County and is situated on 9.43 beautifully
landscaped, wooded acres. Approximately 7 of the 9.43 acres are wooded and undeveloped,
which creates an opportunity for significant expansion or potential for an entirely new
enterprise.
This facility consists of one building, built in two phases: a 22- and 15-year-old two- and one-
story wood frame 18-unit motel and manager's/owner's apartment, which when combined, total
approximately 14,787 square feet of living area. The 18-unit motel includes a lobby with a
fireplace, reception area, storage area, laundry room, bathroom, meeting rooms, a balcony, 18
room units, a men's and women's bathroom, kitchen, a Whirlpool/Sauna room, an indoor
swimming pool, and mechanical room. The motel has a partial basement and includes a
laundry room with two washers and two dryers.
The manager's apartment (future piano bar and basement bar/meeting room area) offers a
living room, kitchen, dining area, family room, half bath, and gift shop on the first floor with 3
bedrooms and 2 baths on the second floor. The home has a concrete block basement that is
partially finished with a recreation room and a 3/4 bathroom.
The exterior is cedar and the roof is pitch and pebble. The building is seated on a poured
concrete and a concrete block foundation. Interior walls are concrete block and drywall. The

2.
Business Overview
Ownership
Corporate Development Plan

 Ex :: Industry
Ownership
John Doe
Owner - [email protected]
Mr. John Doe founded Eleven Palms, Inc. hotel and lounge in 1998 as a
Michigan Subchapter "S" Corporation. Since 1985, John has had extensive
experience in creating and managing organizations for environmental and
Eleven Palms is an economic
adult-marketed, 17-room "boutique-style"
development-oriented companies hotel specializing
involved in a couples'
in nationwide projects.
"getaway" to provide relaxation and recreation in Benzie County, a popular tourist spot located
next to the state of John
Michigan's Lake
consults Michigan.
with Moderately
area businesses priced between the high-line
in development-related hotel
issues, including
properties and the older motel
finance, andstrips, ElevenStates
is a United PalmsSBA
shall fill an affordability
counselor at the Smallniche not presently
Business
available in Benzie County. We areCenter
Development seeking funds
at the for the acquisition
University of Michigan. and renovation
Past of Eleven
SBA clients include
Palms. service and manufacturing organizations. He is a certified SBA Fast Track
program instructor, a Michigan licensed loan solicitor, with a specialty in
Combined with an on-site lounge,
commercial grill, poolside
finance, beverage
and a guest service,
lecturer at U-Mand
formorning
Businesscontinental
Plan Writing
breakfast bar, we are seeking investment funds to renovate the hotel building, build-out
Workshops. He has started a previous business and corporate subsidiaries a piano and
bar/lounge area with a dance
looks floor,toand
forward construct
managing an outdoor
Eleven Palms onpool adjacent
a daily to the indoor pool.
basis.
With this refurbishment and other new amenities, Eleven Palms will form the basis of a highly
profitable hotel venture. We are
Currently, Johnseeking
is an funds
M.B.A.tocandidate
develop and expand
at U-M the business
and holds in a of
a Bachelor phased
Arts
approach, as highlighted within this document.
degree in Business Economics with a minor in chemistry from Notre Dame
University.

Steve Cowan
Manager - [email protected]
Mr. Steve Cowan will manage all aspects of the business and service
development to ensure effective customer responsiveness. Qualified resort
associate professionals will provide additional support services. The support
staff will be added as a guest and/or patron load factors mandate. Cowan has
joined the American Hotel and Motel Association.
 Eleven Palms
Eleven Palms, Inc. has additional key staff members and advisors to assist during the
development, planning, and initial planning phases. They include an architect trained at the
University of Notre Dame, CPAs, and former managers of bar and Bed and Breakfast style
properties.
Key Advisors to the Company

Corporate Development Plan
For purposes of this Business Plan document, Eleven Palms, Inc.—Phase I and Phase II for
developmental growth are defined below:
 Eleven Palms
This phase involves the preparation and development of Eleven Palms. Until the ideal property
is acquired, Eleven Palms, Inc. offices will be housed at the home of Mr. John Doe, its founder.
The property will establish its own Prairie Style identity, management directives, and capital.
Incorporating a total quality management approach and a guest appreciation program, Eleven
Palms will develop key repeat guests and lounge patrons. Through word of mouth and
Phase I
advertising, our reputation as an affordable "boutique-style" resort shall grow.
Start writing renovation

Property here.. will include the makeover of 18 to 17 rooms (with 3 suites) and the
conversion of the present onsite property manager's house to lounge gathering space. New
construction includes a barroom addition, extra parking lot build-out, and an outdoor pool.
 Eleven Palms
[Phase I capital (start-up) funds are documented later on in this business plan.] It is anticipated
that the funding and transfer of this property will happen in spring 1999. Operation "as is" of the
Continue implementation
facility would of sales,
continue through the advertising,
summer andandfall.marketing
The hotelstrategies developed
will close for in Phase
the winter months I.
Identify and pursue
for its build-out and additional
renovation.guest markets, i.e. Internet room guarantee services. Eleven
Palms shall evaluate its room occupancy position to determine if a facility expansion is
warranted. Eleven Palms anticipates additional support staff would be needed at the proper
time (Phase II). This Plan does not contain funding needs for this Phase.
Phase II

3.
Market Analysis
Economic Environment
Geographical/Competitive Environment
Legal/Political Environment
Technology Environment
Competitive Environment
Market Research
 Eleven Palms
Eleven Palms, Inc. like all businesses, is affected by forces and trends in the market
environment. These include economic, geographical, competitive, legal/political, and technical.
Economic Environment
 Eleven Palms
Positive forces include the generally prosperous economy that is currently in place, full
employment, rising wages, and low inflation, leading more people to be able and willing to
spend money and to get away for some time. The close locality of Lake Michigan offers an
affordable alternative to a flyaway destination.
Geographical/Competitive Environment
 Eleven Palms
Located just two blocks from Lake Michigan and downtown Lakegrove, the area has several
golf courses, two ski hills, water recreation activities, numerous dining establishments, various
retail and specialty shops, art galleries, theatre entertainment venues, and the beauty and
serenity of Lake Michigan, which has made this country a famous Midwest tourist destination.
Traverse City began to prosper in the 1870s, becoming a desirable resort area. Many homes
Start
andwriting here..
estates date back to this era and several enormous "summer cottages" were built on the
lakeshore and are still in evidence today.
Eleven Palms shall fill a niche not presently available, namely a moderately priced (under $130
per night), resort-type establishment. Combined with an on-site lounge, a grilled food service,
an indoor and outdoor pool bar, and a morning continental breakfast offering, we shall
differentiate ourselves by becoming a "boutique-style" resort versus simply another motel.
Our Prairie Style surroundings will attract and retain guests who appreciate such refined
environments.

Legal/Political Environment
 Eleven Palms
Eleven Palms management will not move the project forward until it has obtained an option to
acquire one of the 19 Benzie County, Michigan, liquor licenses. As faced by all businesses, the
proper insurance needs shall be met and all operations and policy manuals shall be reviewed by
appropriate legal experts. The facility will obtain all the necessary building permits prior to
construction. Present facility zoning allows for this proposed use, including a bar, cabaret, grill,
Start
andwriting
dance here..
floor space.
Technology Environment
 Eleven Palms
Computer programs greatly simplify the financial record keeping for today's businesses. As a
small business, Eleven Palms will need to watch its expenses closely. By utilizing the existing
software packages available in the hotel industry, including room and facility management
database, controlled bar and inventory measuring systems, and room key cards that allow
patrons to charge directly to their room account, this technology shall assist management in
controlling costs, reducing cash management, and maximizing revenue. Eleven Palms shall
attract the resources necessary to train and operate the system in order to generate the reports
and manage the inventory.
Competitive Environment
 Eleven Palms
A listing of the hotel and motel properties in Benzie County, Michigan (sourced through
Midwest and the Ameritech Directories) is as follows. (Note: Other properties on Lake
Michigan, but outside the city limits, are not included):
Bed & Breakfast (B&B)

Dahlia
Start House
writing here..
The Mixer House
Precious Times Inn
Hotel and motel properties in adjacent communities are not listed, however, they do advertise in
the Yellow Pages.

 Eleven Palms
• The Cove of Lake Michigan ($145-$225)

• Grand Michigan Resort and Spa ($139-$750)
• The Harbor's Edge ($139-$199) To unlock help try Upmetrics! 
• The Michigan Inn ($215-$350)

High Line
• The($139-$750 per night, depending upon season)
Strike Hotel ($200)
 Eleven Palms
• Breezy Chateau Inn

• Budget Time Motel
• Lake Michigan Motel To unlock help try Upmetrics! 
• Lakewood Motel
Motel •($59-$119
Misty Motel per night, depending upon season)
• Pine Tar Motel
• Plaza Motel
• Shady Drive Motel
 Eleven Palms
• The Stirrup Motel
• Swiss Motel
• Dahlia House
• The Mixer House
• Precious Times Inn To unlock help try Upmetrics! 
Bed & Breakfast (B&B)
 Eleven Palms
Hotel and motel properties in adjacent communities are not listed, however, they do advertise in
the Yellow Pages.

Eleven Palms hotel and lounge are attempting to carve out a fourth segment in the lodging
market; that of a "boutique" style, high-line property at mid-line pricing geared towards adult
couples
Start writingand not marketed to families.
here..
A review of competitors' marketing strategies reveals no one targeting this market segment.
Hotel and lounge is a referral-driven business—new business can be obtained by encouraging
and rewarding present guests to refer to future guests. Networking within the business and

Market Research
 Eleven Palms
A hypothetical behavior sequence model for a new customer (future guest) contemplating
using a hotel and lounge service for the first time might look something like the following
(based on discussions and interviews with potential guests):
Individuals or couples decided to get away for a few days. This may happen as a result of a
need
Start for ahere..
writing change of pace, vacation, or a celebration purpose. The need can arise anytime year-
round. Even in the late fall and winter months, people are thinking "getaway" to break the
weather doldrums.
 Eleven Palms
Individual or couple investigates hotel services. In most cases, this means they will consider
first anythe
Overall, recommendations that they
environment appears veryare knowledgeable
positive for Elevenof through
Palms, Inc.prior
Theassociation
forces driving (relative,
market
friend,
demand, mainly economic and geographical, are strong, with more people staying closer made
or social group). If the individual or couple is new to the area or otherwise has not to
any close
home connections
for shorter withtrips
getaway people,
and he/she would level
their comfort look in
of the Yellow
visiting Pages
Lake for a listing,
Michigan, one ofor the
perhaps
Midwest's look in a newspaper
premier for advertising.
travel destinations. On the negative side, there is competition, and it will take
a while for Eleven Palms to get "established" in its market niche.
Acting onof
Summary theOpportunities
advice of friendsand
(or own knowledge),
Threats in thetheEnvironment
individual or couple will call the
recommended property to obtain information that will help him/her decide if this place is the
best
Start for them.
writing here..Criteria for selection include (1) amenities (pool, on-site food service,
nonsmoking rooms, bar lounge area, etc.); (2) reputation (what kind of persons usually stay
here?);(3) physical plant (how recent the renovation, upkeep, etc?); (4) courtesy (professional
and attentive staff?); and (5) pricing (is the place affordable?).
Based on the information received, the individual or couple makes a decision and either
schedule an appointment to view the property or makes a reservation.
The individual's satisfaction with his/her decision and with the service itself is largely a function
of their interaction with the staff during their stay. Everyone associated with Eleven Palms will
do everything possible to ensure a satisfactory experience for the guest, so that future
business (and a future referral) is not at risk.
Marketing strategies will build on this model, taking advantage of precipitating events, fostering
word-of-mouth recommendations, and creating satisfaction through interacting with the future
or present guests.

4.
Competitive Analysis
Competitive Advantage
Industry Keys to Success
SWOT Analysis

Competitive Advantage
 Eleven Palms
Strengths of Eleven Palms, Inc. include John Doe's broad base of experience in managing
different types of companies. He has extensive development experience and a track record of
hiring the right people and training them. Doe understands the service sector business, has
traveled extensively frequenting numerous lodging establishments, and has gained invaluable
experience in organizational management.
Currently, a mid-size "boutique" resort niche is vacant in the Lake Michigan market, with present
lodging on the high end, averaging $225 per night (and up) down to older motel properties of
Industry Keys
$79 per night. to Success
Several B&B establishments may fall into the middle, however, Seven Elms, like a
resort-style property, will serve its niche by itself.
 Eleven Palms
1. A property designed for the guest and/or lounge patron

2. Frequent Guest Award Program
3. Controlled overhead and operational costs To unlock help try Upmetrics! 
4. Regular and ongoing guest feedback

5. Latest technology/software capacity
6. Weekend lounge (piano bar, dance floor) entertainment
7. Unique, timeless and comfortable environment
8. Dedicated management and associate support staff

SWOT Analysis
Strength Weakness
• Excellent services and security • Need a lot of capital

• Good location and amazing landscape • Transportation
• Reasonable prices and numerous • Competitors
activities
offered
• Modern facilities and clean atmosphere
• Fresh foods
• Local cultures and traditions involve
Opportunity Threat
• Unique services offered in the region • Risky for transportation

• More profit earning] • Trash from construction
• More visitors • No clean water
• Increase GDP in the country • No electricity
• Job opportunities • Weather and natural

5.
Strategy & Implementation

Marketing Strategies
Target Markets - Consumer
Positioning and Product Strategy
Distribution Strategy
Pricing Strategy
Service and Support Philosophy
 Eleven Palms
The business is driven by referrals and repeat business, so for the first few years, Eleven Palms
will need to be aggressive in attracting new guests. The marketing strategy is subject to change
upon guest feedback and surveys.
Marketing Strategies
 Eleven Palms
Target Markets—Geographical: The major cities within a three-hour drive of the property.
Target Markets - Consumer
 Eleven Palms
• New visitors traveling to the area

• Middle- and upper-income bracket
• Returning visitors to the area To unlock help try Upmetrics! 
• Businesses needing to hold small overnight planning and strategy sessions

Start writing
• Areahere..
wedding parties
• Couples

Positioning and Product Strategy
 Eleven Palms
For its guests, Eleven Palms will be positioned as a new, beautifully landscaped, nature-filled,
unique atmosphere hotel with a bar lounge service that fits an adult "getaway" market niche. A
full range of referral services (i.e. restaurant recommendations, shopping, taxis, area
attractions) will be made available and tailored to the needs of the particular guest.
Business
Start services range from room phones that are Internet jack ready and telephone
writing here..
answering message service for each room to on-site fax services and meeting room space
(lounge sitting area and cabaret room). Eleven Palms will aim to attract business guests and
Distribution Strategy
their partners needing to hold planning or strategy sessions away from the office in a new and
comfortable surrounding, in order to even out revenues throughout the week.
 Eleven Palms
Unlike products that are produced, then distributed, and sold, hotel and lounge services are
produced and consumed simultaneously in a real-time environment. Thus, distribution issues
center on making the services available in a convenient manner to the greatest number of
potential guests. Eleven Palms will maintain a front office staff member throughout the night so
guests are able to get answers to any question or service when they need it. This flexibility is
especially attractive to the business traveler. Clients will be able to contact Eleven Palms by
telephone, fax, and e-mail.
Pricing Strategy
Rooms per night fees have been developed. The fee schedule takes into account seasonal rates that
are common in the area. For businesses and other large group functions, pricing can be discounted
depending upon the number of rooms reserved.
Example lounge pricing and grill food offerings are also noted.
Example fees:
Room Fees
Winter Rates (November through April):
Regular Rooms $109.00
Suites $149.00
Summer Rates (May through October):
Regular Rooms $129.00
Suites $179.00

Room Fees
(Includes Continental Breakfast, use of indoor and outdoor pools, and

exercise equipment room.)
Fax Service (per page, outgoing) $0.75
Telephone Rates (set at going company rate)
Hotel Safe Storage Fee (per day) $2.50
Liquor and Drink Fees
"Top Shelf" Brands $4.75 - $7.50
Specialty Drinks $4.50 - $5.75
Well Drinks $4.25
Import Beers & Wine $3.75
Domestic Beers $3.25
Draft Beer $2.75
Juices, Bottled Water, and Soft Drinks $2.50
Grill Menu
Rib-Eye Steak Sandwich $7.99
Chicken Breast Sandwich $5.99
Hamburger (1/4 pound) $5.99
Fried Cod Fish Sandwich $5.99
Salads $4.99 - $8.99
Chicken Tenders $4.99 - $6.99
Cheese Sticks (with sauce) $4.99
Frozen Pizza $6.99 - $8.99

Service and Support Philosophy
 Eleven Palms
By giving careful consideration to customer responsiveness, Eleven Palms Resort's goal will be
to meet and exceed every service expectation of its hotel and lounge services. Our guests can
expect quality service and a total quality management (TQM) philosophy throughout all levels
of the staff.

6.
Marketing Plan
New Business Segment
Publicity and Public Relations
Guest Reward Programs
Advertising
Marketing and Promotion Budget
Evaluation & Control Strategies
 Eleven Palms
Promotion strategies will vary depending on the target market segments. Given the importance
of word-of-mouth referrals among all market segments when choosing a "getaway" hotel or
small business meeting location, our efforts are designed to create awareness and build
referrals. A cost-effective campaign—focused on direct marketing, publicity, our frequent guest
reward program, and advertising—is being proposed.
New Business Segment
 Eleven Palms
A direct marketing (direct mail) package consisting of a tri-fold brochure, letter of introduction,
and reply card will be sent to a list of potential guests. This list can be obtained from
International Business Lists, Inc. (Chicago, IL) and is compiled from tax records (by upper-
income geographical areas, Secretary of State incorporation registrations, business license
applications, and announcements from newspaper clippings).
The brochure and letter introduce Eleven Palms, stresses the importance of having a good time
in comfortable surroundings, provides information on our resort services, and describes what
Publicity and
sets us apart Public
from Relations
other area hotel and lounge properties. The initial mailing may contain a
promotional offer: the opportunity to receive a 10% discount on the first night's room rate.
Approximately two months after the mailing, an additional letter shall be sent. The potential
 Eleven Palms
guest would be asked to address any questions and the follow-up would remind them to drop in
for a property tour on their next trip to Lake Michigan. Additionally, new businesses will be
A news release will be sent to area newspapers and magazines announcing the launch of
targeted and sent information.
Eleven Palms, Inc. and the lounge. Area talent searches will be conducted to secure weekend
cabaret
The cycleroom entertainment.
would repeat itself with new target communities and select businesses and would
continue through the first year. After that, additional mailings would be conducted, as needed,
John Doe will join the Benzie County Chamber of Commerce as a means of networking in the
based upon occupancy goals.
community.
Start He also may make himself available for speaking engagements at other
writing here..
community
Eleven Palms, or Inc.
civicwill
organizations as developing
also consider a low-cost way of increasing
a one-page awareness
newsletter and building
to be mailed quarterly to
goodwill in the community.
past guests and prospects in the database. The newsletter can be used to update clients on
hotel and lounge and area-related developments, but also serves as a reminder of what sets
Eleven Palms apart. The newsletter can be produced in-house and the cost of paper and a
stamp creates a lot of goodwill among guests and business prospects.

Guest Reward Programs
 Eleven Palms
For present guests: "Stay 6 nights and get the seventh night for free" promotion and as a means
of building business by word-of-mouth, present customers should be encouraged and rewarded
for referring future guests. This can be accomplished by offering a small "rebate" (5% or 10%
rebate on the first-night stay) to current customers who successfully refer a new guest.
Advertising
 Eleven Palms
Advertising is utilized primarily to attract new guests and serves to build awareness and name
recognition of the resort in general, which is important for word-of-mouth referrals ("Oh yes, I've
seen that resort's ads before.")
• Periodic advertising in target market area newspapers will afford Eleven Palms, Inc. name
recognition
Start writing here.. benefits. From quarter-page ads announcing its entertainment line-up to
business card-sized logo ads.
• Yellow Pages—Ameritech PagePlus, Greater Benzie County Telephone Directory.
Marketing
Researchand Promotion
indicated Budget
that new visitors or people who don't have many personal
acquaintances to ask about hotel and lounge services will look to the Yellow Pages to
establish a list of potential hotel and lounge services to call. Even a small 2" × 2" boxed
Example of Promotion Budget Amount
ad can create awareness and attract the desired target client, above and beyond the
ability of (2-color,
Resort brochure a simple1,000
listing. Ameritech
quantity, Yellow Pages
high-quality paper)cover the relevant market $750
area,
delivering over 30,000 copies to residents and businesses. Midwest Directories covers
Reply card (2-color,
Greater 500County
Benzie quantity,
butcard stock)
is considered a second-tier directory to Ameritech.$250
• Telephone
Lists (new Bookhome-based
businesses, Cover. A business card-like ad on the plastic cover which is $750
businesses) placed over
any telephone book enables the business name/logo to be seen virtually 24 hours a day,
Postage365(mailing 450
days a pieces)
year. Covers are distributed bi-annually free of charge to residents$500
and
businesses in Benzie County.
Restaurant placemats (5 restaurants/10 events) $500
• Restaurant Placemats—Opportunities exist for a business card-like ad to be placed on
Newspaper advertising
the paper placemats used in area restaurants (shelf-life of the ad is about six$5,000
months), or
for special (holiday) events taking place at a restaurant (1-off opportunities). An example
Yellow Pages $2,000
would be getting on the area restaurant placemats (about 9,000 in six months), or getting
on the
Advertising special Lions
specialties Club "St. Patrick's Day" dinner placemats at the Village Restaurant
(give-away) $250
(about 1,000 placemats for that event). Placemat advertising will reach area residents as
Total forwell
1999as area visitors/tourists staying at other places. $10,000
• Additional places to post flyers/business cards or for a business card ad include bulletin
boards in public buildings (grocery stores, senior centers), and playbills for local theater
groups.

Evaluation & Control Strategies
 Eleven Palms
Objectives have been established for Eleven Palms so that actual performance can be
measured. Thus, at the end of its first year, Eleven Palms should have:

• $772,000 in total revenue
• Anticipate 57% occupancy rating
Each subsequent year new objectives will be set for these benchmarks and actual performance
will be measured against them. If actual performance falls short of objectives, the investigation
will be made into the cause, and plans will be adjusted accordingly.
In addition, it is recommended that Eleven Palms keep track of the source of all new guests
("Where did you hear of us?") in order to measure the effectiveness of each type of promotion.
Each subsequent year's budget should adjust spending toward the types of promotions that
reach the newest clients.
Customer satisfaction is most directly reflected in the year-to-year customer retention
percentage. All lost customers should be investigated to find out why they left. A customer
satisfaction survey may be considered after three to four years in the business.

7.
Financial Plan
Project Funding Summary
Financial Plan Assumptions
Projected Profit and Loss
Balance Sheet
Cash Flow Projections
Project Funding Summary
Here is the Project Funding Summary for Eleven Palms Resort:
Project Funding Summary Amount
Building and Improvements Cost $881,000
Fixtures, Build-Out and Furniture $353,739
Developmental Start-Up Expense $116,000
Five Months Working Capital $49,261
Total $1,400,000
Phase 1 Funding Amounts Sought
Developmental costs for the start-up of this new hotel and lounge services company are listed above.
These schedules also listed in the Ten Year Proforma.
The following schedule highlights the anticipated developmental costs:
Classification: Cost
Liquor License $71,000
Architect Fees $7,500
Accounting $1,500
Marketing, PR & Advertising $10,000
Engineering & Permitting $5,000
Office Expense $2,000
Founders Draw (Gen. Contractor) $16,000
Legal $3,000
Total $116,000
The development of Eleven Palms Resort, Inc. will require the full-time talents of Steve Cowan. Phase
II growth amounts will be developed and sought at a later date, based upon needs to be determined at
that time.

Financial Plan Assumptions
 Eleven Palms
The following assumptions will be incorporated into Eleven Palms Resort, Inc. proforma
statements.

• All operating costs are based on Eleven Palms Resort, Inc. management research of
similar operating companies.
Start writing here.. informational and bar control systems will reduce Eleven Palms Resort, Inc.
• Automated
staff requirements.
• Developmental start-up costs are amortized over a five-year period.
Projected Profit and Loss
• Room Occupancy Rate at 57%, G & A overhead and operations costs are calculated on an
annual basis.
• The property manager and founder's2024
salary is based on a fixed2025
salary expense basis. 2026
• All fixed and variable labor costs should rise annually at 2.5% per year.
Revenue $869,730.20 $1,583,082 $2,627,430.10
• All revenues are figured to rise annually at five percent. Fixed annual, administrative, and
office expenses rise at an annual$516,663
Room Bookings rate of one half of one percent.
$678,087 $911,881.50
Unit Sales 3,444 4,521 6,079
Unit Price $150 $150 $150
Bar/Lounge $118,526.40 $152,836.20 $217,443
Unit Sales 3,951 5,095 7,248
Unit Price $30 $30 $30
Poolside Beverage Service $234,540.80 $752,158.80 $1,498,105.60
Users 1,852 4,358 8,071
Recurring Charges $20 $20 $20
Cost Of Sales $136,947.01 $191,395.07 $267,241.78
General Costs $136,947.01 $191,395.07 $267,241.78
Food and Beverage Costs $110,547.01 $164,203.07 $239,234.02
Food Supplies $67,060.47 $85,048.94 $107,862.48
Beverage Supplies $43,486.54 $79,154.13 $131,371.54
Room Maintenance $26,400 $27,192 $28,007.76

2024 2025 2026
Room Cleaning Supplies $24,000 $24,720 $25,461.60
Room Repair &

$2,400 $2,472 $2,546.16
Maintenance
Revenue Specific Costs $0 $0 $0
Personnel Costs (Direct

$0 $0 $0
Labor)
Gross Margin $732,783.19 $1,391,686.93 $2,360,188.32
Gross Margin (%) 84.25% 87.91% 89.83%
Operating Expense $712,486.54 $763,145.73 $830,706.70
Payroll Expense (Indirect

$621,000 $634,755.60 $648,826.56
Labor)
Management $125,400 $128,658 $132,003.72
Hotel Manager $75,000 $77,250 $79,567.56
Assistant Manager $50,400 $51,408 $52,436.16
Service Staff $309,600 $315,792 $322,107.84
Front Desk Staff $144,000 $146,880 $149,817.60
Housekeeping Staff $165,600 $168,912 $172,290.24
Maintenance $186,000 $190,305.60 $194,715
Maintenance Supervisor $58,560 $60,316.80 $62,126.28
General Maintenance Staff $127,440 $129,988.80 $132,588.72
General Expense $91,486.54 $128,390.13 $181,880.14
Utilities $24,000 $24,576 $25,166.40
Electricity $14,400 $14,688 $14,981.76
Water $9,600 $9,888 $10,184.64
Marketing and Advertising $49,486.54 $85,274.13 $137,613.94

2024 2025 2026
Online Advertising $43,486.54 $79,154.13 $131,371.54
Print Advertising $6,000 $6,120 $6,242.40
General and Administrative $18,000 $18,540 $19,099.80
Office Supplies $6,000 $6,060 $6,120.60
Insurance $12,000 $12,480 $12,979.20
Bad Debt $0 $0 $0
Amortization of Current
$0 $0 $0
Assets
EBITDA $20,296.65 $628,541.20 $1,529,481.62
Additional Expense $49,495.23 $44,042.82 $38,254.08
Long Term Depreciation $21,900 $21,900 $21,900
Gain or loss from Sale of

$0 $0 $0
Assets
EBIT ($1,603.35) $606,641.20 $1,507,581.62
Interest Expense $27,595.23 $22,142.81 $16,354.10
EBT ($29,198.58) $584,498.38 $1,491,227.54
Income Tax Expense /

$0 $0 $0
Benefit
Total Expense $898,928.78 $998,583.62 $1,136,202.56
Net Income ($29,198.58) $584,498.38 $1,491,227.54
Net Income (%) (3.36%) 36.92% 56.76%
Retained Earning Opening $0 ($59,198.58) $495,299.80

2024 2025 2026
Owner's Distribution $30,000 $30,000 $30,000
Retained Earning Closing ($59,198.58) $495,299.80 $1,956,527.34
Balance Sheet
2024 2025 2026
Assets $452,399.85 $913,044.25 $2,274,629.07
Current Assets $224,299.85 $706,844.25 $2,090,329.07
Cash $224,299.85 $706,844.25 $2,090,329.07
Accounts Receivable $0 $0 $0
Inventory $0 $0 $0
Other Current Assets $0 $0 $0
Long Term Assets $228,100 $206,200 $184,300
Gross Long Term Assets $250,000 $250,000 $250,000
Accumulated Depreciation ($21,900) ($43,800) ($65,700)
Liabilities & Equity $452,399.85 $913,044.24 $2,274,629.08
Liabilities $411,598.43 $317,744.44 $218,101.74
Current Liabilities $93,853.99 $99,642.70 $0
Accounts Payable $0 $0 $0
Income Tax Payable $0 $0 $0
Sales Tax Payable $0 $0 $0
Short Term Debt $93,853.99 $99,642.70 $0
Long Term Liabilities $317,744.44 $218,101.74 $218,101.74
Long Term Debt $317,744.44 $218,101.74 $218,101.74
Equity $40,801.42 $595,299.80 $2,056,527.34

2024 2025 2026
Paid-in Capital $0 $0 $0
Common Stock $0 $0 $0
Preferred Stock $0 $0 $0
Owner's Contribution $100,000 $100,000 $100,000
Retained Earnings ($59,198.58) $495,299.80 $1,956,527.34
Check $0 $0 $0
Cash Flow Projections
2024 2025 2026
Cash Received $869,730.20 $1,583,082 $2,627,430.10
Cash Paid $877,028.78 $976,683.62 $1,114,302.56
COS & General Expenses $228,433.55 $319,785.20 $449,121.92
Salary & Wages $621,000 $634,755.60 $648,826.56
Interest $27,595.23 $22,142.81 $16,354.10
Sales Tax $0 $0 $0
Income Tax $0 $0 $0
Net Cash From

($7,298.58) $606,398.38 $1,513,127.54
Operations
Assets Sell $0 $0 $0
Assets Purchase $250,000 $0 $0
Net Cash From

($250,000) $0 $0
Investments
Amount Received $600,000 $0 $0

2024 2025 2026
Loan Received $500,000 $0 $0
Common Stock $0 $0 $0
Preferred Stock $0 $0 $0
Owner's Contribution $100,000 $0 $0
Amount Paid $118,401.57 $123,853.98 $129,642.72
Loan Capital $88,401.57 $93,853.99 $99,642.70
Dividends & Distributions $30,000 $30,000 $30,000
Net Cash From

$481,598.43 ($123,853.98) ($129,642.72)
Financing
Summary
Starting Cash $0 $224,299.85 $706,844.25
Cash In $1,469,730.20 $1,583,082 $2,627,430.10
Cash Out $1,245,430.35 $1,100,537.60 $1,243,945.28
Change in Cash $224,299.85 $482,544.40 $1,383,484.82
Ending Cash $224,299.85 $706,844.25 $2,090,329.07

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

Eleven Palms Hotel

Prepared By  10200 Bolsa Ave, Westminster, CA, 92683

 John Doe  [email protected]

 (650) 359-3153  http://www.example.com

Location and Facility 7

Key Advisors to the Company 10

Corporate Development Plan 11

Motel ($59-$119 per night, depending upon season) 15

Bed & Breakfast (B&B) 15

Eleven Palms Hotel | Business Plan [YEAR] 2/39

Strategy & Implementation 21

Target Markets - Consumer 22

Positioning and Product Strategy 23

Service and Support Philosophy 25

New Business Segment 27

Publicity and Public Relations 27

Guest Reward Programs 28

Marketing and Promotion Budget 28

Evaluation & Control Strategies 29

Project Funding Summary 31

Financial Plan Assumptions 32

Projected Profit and Loss 32

Cash Flow Projections 36

Eleven Palms Hotel | Business Plan [YEAR] 3/39

❛ Upmetrics has everything you need to create a

Financial Forecasting Tool

Business Plan Builder

Eleven Palms is an adult-marketed, 17-room "boutique-style" hotel specializing in a couples'

Mr. Doe is an owner of Eleven Palms, He has an extensive business

1. Attract $1.4 million mortgage/investment capital;

4. Track and direct growth;

Eleven Palms Hotel | Business Plan [YEAR] 6/39

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The preferred location is a 10-acre parcel with 8 acres of

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Eleven Palms Hotel | Business Plan [YEAR] 9/39

Key Advisors to the Company

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Eleven Palms Hotel | Business Plan [YEAR] 13/39

Bed & Breakfast (B&B)

Eleven Palms Hotel | Business Plan [YEAR] 14/39

• The Cove of Lake Michigan ($145-$225)

• The Michigan Inn ($215-$350)

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• Breezy Chateau Inn

Bed & Breakfast (B&B)

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