Business Plan of a Hotel

Running head: BUSINESS PLAN OF A HOTEL
Business Plan of a Hotel
Name of the Student:
Name of the University:
Author Note:

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BUSINESS PLAN OF A HOTEL
1. Executive summary:
The study shows that the Luxury Living Hotel should enter the Hawaiian economy to
cater to the upper class customers. The mission statement of the premium hotel would be
providing superior accommodation services to customers to enhance their customer experience.
The hotel would create employment opportunities, thus adding value to the economy of Hawaii.
The vision of the company should be generating higher revenue and gain the top position in the
Hawaiian hotel industry. The business model shows that the hotel should aim to create value for
the customers by providing superior quality accommodation services, food and drinks and
ancillary facilities. The Luxury Living Hotel Limited in order to create value for customers
would be required to partner with a large numbers of suppliers. The hotel company should aim to
generate high revenue as shown in the business model. Finally, the SMART analysis shows that
the business targets of the hotel qualifies the SMART parameters.

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BUSINESS PLAN OF A HOTEL
Table of Contents
1. Executive summary:................................................................................................................1
2. Mission/Vision statement/values/positioning:.............................................................................3
3. Discussion of the the Business Canvas:.......................................................................................4
Upper class customers residing in Canada................................................................................11
Upper class foreign customers...................................................................................................11
Corporate customers..................................................................................................................11
Fixed cost:..................................................................................................................................13
Variable cost:.............................................................................................................................14
Semi-variable cost:....................................................................................................................14
i. Revenue Streams:.......................................................................................................................14
Food and beverage:....................................................................................................................15
Value addition services:.............................................................................................................15
References:....................................................................................................................................19

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BUSINESS PLAN OF A HOTEL
2. Mission/Vision statement/values/positioning:
The mission statement mainly centres on two aspects of its business: hospitality and high
positive effect. It tends to believe in being the friendliest organization of the world. The mission
statement is to be the most welcoming and generous company across the world by creating
earnest experience for guests, significant opportunities for the team members, high worth for
owners and an optimistic impact in the communities (Kucukusta, Mak, A & Chan,2013). A
vision is the direction to future for any organization. In easy words, it sums up what type of
future, the brand or the company imagines for itself and the plan to reach there. Therefore,, a
vision should not address vaguely. The vision statement is to fill the world with the glow and
warmness of hospitality by delivering outstanding experience in every hotel, for every guest each
time. In three years’ times, the revenue and profit are predicted to grow by USD 6920862 which
is certainly overwhelming (Jayawardena et al.,2013). The maximum of room unit in the area are
condos. The customers will be offered a different accommodation experience that cannot be
established in any of the area's condo complex or hotels. They will be experienced with a
comfortable, affable environment that will assure a free ski rental shop with outfits and can
purchase ski passes (Chan, 2014). The hotel aims to have 19985 rooms available with an
REVPAR (Revenue per available room of $ 4955253 Therefore, the number of employees,
stakeholders, local business community and managers will have a rapid rise in the industry
increasing the overall business revenue. The business model would be capital efficient, highly
flexible with marvelous growth prospective around the world resultant in opportunities for the
team members and finest returns for the hotel owners and the shareholders. The values are based
on certain principles: hospitality, which is this, is the most important passion of the organization.
Integrity: another core value that tends to believe not just in doing stuff right but also all of the

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BUSINESS PLAN OF A HOTEL
right things. Leadership: Leadership is just as essential to performance and wants to be the
industry and community leader. Teamwork, includes a person is encouraged to work with the
team. Ownership includes a sense of belonging and accountable for self actions and decisions.
Luxury living hotel Limited pursues multi-segment kind of positioning which is targeting more
than one sector of customers at the same time with unlike brands within its range.
3. Discussion of the the Business Canvas:
The business model canvas of Luxury Living Hotel Limited is as follows:
Business Model of Luxury Living Hotel Limited, Canada
Key Partners Key activities
Value
proposition
Customer
relationship
Customer
segments
1. Suppliers of
the basic raw
materials like
meat, eggs and
vegetables.
2. Suppliers of
packaging
materials.
3. Suppliers of
accommodation
assets like
furniture,
artefacts, carpets
etc
4. The suppliers
of room articles
like pillows, bed
sheets and bed
accessories.
5. Suppliers of
alcohol
6. Suppliers of
electrical fittings
7. Employee,
management
8. Banks and
financing
companies
9. Marketing and
branding partners
10. Suppliers of
1. Provision of
premium
accommodation
facilities
2. Provision of superior
food and drinks to
guests
3. Provision of work
class ancillary services
like leisure club and
second bar
1. Superior
accommodation
services to
customers to
maximise their
hotel stay
experience
2. Superior
food and
beverage, thus
enhancing the
customer
experience
3. Building
long term
relationship
with customers
1. Relationship with
customers by offering
world class
accommodation
experience
2. Round the clock
support to customers
on telephone and
email.
3. Discounts and
product bundling to
enhance customer
purchase value.
4. Continuous
communication with
customers on the
social media to gain
their valuable
feedback
1. Upper
class
customers
residing in
Canada
2. Upper
class foreign
customers
3. Corporate
customers
Key Resources Channels
Financial resources,
material resources,
technological resources,
plant and machinery,
human resources
Brick and mortar
hotel, official
website, social media,
ecommerce

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BUSINESS PLAN OF A HOTEL
crockery Cost structure Revenue structure
Room expense, F&B, operating
departmental costs, administrative and
general costs, sales and marketing costs,
property taxes and insurance, bank charges ,
insurance expenses and depreciation
Sale target of 19985 rooms $ 6290682
a. Key Partners:
The Luxury Living Hotel Limited would be a premium hotel housed in Hawaii and would
require to partner with several firms to ensure its smooth customer services. The first key partner
of the hotel would be the suppliers of the basic raw materials which the hotel would use to
prepare food items which it would be required to offer the guests in order to generate high
revenue. This class of suppliers would consist of suppliers of meat, eggs and fishes of different
types. The second class of suppliers of packaging materials which the hotel would use to
package the food products in order to protect them from spoilage and prolong their shelf life. The
third class of suppliers would consist of suppliers of accommodation assets like furniture pieces,
artefacts and carpets. Singh and Kumar (2015) mention in this that using specific pieces of
furniture, specific shades of carpets and artefacts enable the management of the hotels to create a
positive environment within the hotel premises. This ambience contributes towards creation of a
positive perception about the hotels and their respective services among the customers. The
positive ambience creates satisfaction among the customers which enhances their
accommodation experiences, thus enhancing customer satisfaction levels. Loo and Leung (2018)
strengthens the opinion that attributes like appropriate furniture and carpets enhance the feeling
of hospitality among customers which turns out be a competitive advantage of the hotel
concerned. Thus, it can be inferred that the strong partnerships with key partners would enable
the Luxury Living Hotel Limited to generate high revenue by ensuring high level of customer