Entrepreneurial Venture: Hotel Tipton Business Plan - MGMT2901

This business plan outlines the establishment of Hotel Tipton, a new venture in the hospitality sector. It provides a detailed executive summary, vision, and objectives, alongside an analysis of the hospitality industry, future outlook, and competitor analysis. The plan includes market segmentation, SWOT analysis, and a comprehensive business venture description, covering products, services, size, and location. A detailed marketing plan, organizational structure, risk assessment, and contingency plan are also presented. The financial analysis includes feasibility analysis, startup costs, and cash flow forecasts, supported by references and an appendix. The plan aims to attract a large customer base, establish a strong brand, and achieve rapid growth within the Canadian hospitality market, addressing potential threats and opportunities while providing job creation and economic development. The plan also focuses on the financial viability, including the required investment and projected returns for the hotel.

Running head: BUSINESS PLAN 1
Business Plan

BUSINESS PLAN 2
Executive Summary
The business plan is focused on the setting up of a hotel known as Tipton. The financial
analysis in terms of costs and feasibilities along with the marketing strategies are outlined and
presented in the plan accordingly. The analysis pertaining to SWOT (Strengths, Weaknesses,
Opportunities and Threats) are also presented accordingly. The sector related to hospitality
and tourism is analyzed with regard to the economic viability of Hotel Tipton as far as the
future trends are concerned. The evaluation related to risks involved in the business has also
been carried out.

BUSINESS PLAN 3
Table of Contents
Introduction................................................................................................................................3
Vision and objectives.................................................................................................................3
Analysis of the hospitality industry............................................................................................3
Future outlook........................................................................................................................3
Analysis of competitors..........................................................................................................3
Market segmentation..............................................................................................................4
SWOT Analysis.........................................................................................................................4
Strengths.................................................................................................................................4
Weaknesses............................................................................................................................4
Opportunities..........................................................................................................................4
Threats....................................................................................................................................4
Business Venture........................................................................................................................5
Products and services.............................................................................................................5
Business size..........................................................................................................................5
Background of entrepreneur...................................................................................................5
Location..................................................................................................................................5
Physical facilities and operations...............................................................................................5
Descriptions............................................................................................................................5
Costs.......................................................................................................................................5
Marketing plan...........................................................................................................................5
Target market.........................................................................................................................5
Marketing strategies...............................................................................................................6
Organization plan.......................................................................................................................6
Legal structure........................................................................................................................6
Management team..................................................................................................................6
Licensing and insurance.............................................................................................................6
Risk assessment..........................................................................................................................6
Contingency plan...................................................................................................................6
Financial analysis.......................................................................................................................7
Feasibility analysis.................................................................................................................7
Start up costs..........................................................................................................................7

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Cash flow forecast..................................................................................................................7
Sources and application of funds...........................................................................................7
References..................................................................................................................................8
Appendix....................................................................................................................................9

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Introduction
The main aim of the essay is to present an overview of a business plan in the sector
related to hospitality. Such sector has been opted as the hospitality sector is growing and
advancing in a rapid manner. The hotel which is to be set up as a part of the business plan
would be developed in such a manner that it would grow in a rapid manner thereby
generating huge amount of profits and revenues (Nieves & Segarra-Ciprés, 2015). The vision
and goals of the hotel are to be identified at the earliest and be implemented accordingly for
the purpose of capitulating upon the objectives in the desired manner and deriving the
outcomes in an effective and efficient manner. The analysis of the industry is to be carried
out so as to identify and determine the factors that are pertinent to the feasibility involved in
the establishment of the hotel. As a result, the strengths, weaknesses, opportunities and
threats would be determined accordingly in order to imply the execution of such a business
plan in the desired manner. The market would also be identified accordingly with reference
to the attraction and appealing of the customers. The projected trends for the future of such a
business would also be taken into account.
Vision and objectives
The business plan of Hotel Tipton is aimed at attracting a huge number of customers
thereby leading to generation of huge profits and revenues. It would also be a competitive
force to reckon with in the hospitality industry of Canada. Hotel Tipton has a number of
objectives in its pipeline (Leung, Bai & Stahura, 2015). The main objectives of the hotel
include that in a span of five years, it would have a chain of hotels being spread across
Canada thereby being a reputable brand at the international level.
Analysis of the hospitality industry
Future outlook
In the future, it is projected that the hospitality industry would grow to a massive level
as a result of the increase in travel and tourism amongst people mainly with reference to
business and leisure. As a result, it is imperative that it would be economically viable for
Hotel Tipton to carve a niche of itself in the hospitality sector in the near future. It would also
help in the fostering of global tourism as implied by its business plan related to the expansion
in the region of Canada. It is imperative that the future for Hotel Tipton looks appealing.
Analysis of competitors
The main competitors of Hotel Tipton would include Sandman Hotel, Delta Hotels by
Marriott, Fairmont Palliser and Westin. These would be highly competitive for the
establishment and growth of Hotel Tipton (Molina-Azorín, Tarí, Pereira-Moliner, Lopez-
Gamero, & Pertusa-Ortega, 2015). As a result, investment must be done in a meticulous
manner with regard to the providing of the required facilities for the attraction of customers.
It would help Hotel Tipton to survive the competitive market pertaining to the sector of
hospitality and tourism in Calgary.

BUSINESS PLAN 6
Market segmentation
The customers would be of the age range of twenty to seventy years. They would
mainly be tourists and excursionists and the ones who are enthusiastic about travelling. As
the city of origin for Hotel Tipton would be Calgary, the geographical area would be the the
business areas of Calgary along with the areas near to tourist spots(Fraj, Matute & Melero,
2015). The behavioral aspects of the customers would also be taken into account with regard
to their passion pertaining to leisure activities in form of travelling, lodging and sightseeing.
The middle class people would be the main target as it would be a budget hotel.
SWOT Analysis
Strengths
The strengths of the business plan imply that the rapid growth and advancement of the
sector related to hospitality and tourism in the recent past would to a huge level help Hotel
Tipton to be a pioneer in the industry not only in Calgary but also in rest of Canada as far as
its plans related to establishment and subsequent national expansion are concerned (Karatepe
& Karadas, 2015). It would also lead to the attraction of a huge number of customers by
providing an incredible ambience with regard to rooms and areas for dining in the form of
restaurants.
Weaknesses
The weaknesses of the business plan imply that the competing group of hotels as
aforesaid may pose a huge threat for the growth and development of Hotel Tipton thereby
thwarting its chances to progress as planned. Additionally, the sprawling up of new hotels in
the future may also thwart its chances to grow and progress further as per its plan. As a result,
it is implied that the rates for food and lodging must be analyzed on a frequent basis along
with the amenities and facilities as per the trends in the sector related to hospitality and
tourism.
Opportunities
The successful execution of business plan would not only lead to the attraction of
customers to a huge extent but would also create job opportunities for people skilled in terms
of tourism and hospitality (Dedeoğlu & Demirer, 2015). As a result, it would lead to
economic growth and development in a valuable manner.
Threats
The hotels offering cheaper rates would pose a threat to a huge level for Hotel Tipton
thereby thwarting its chances to attract customers to a huge level. The group of hotels as
aforesaid may also pose a competitive threat for the growth and progress of Hotel Tipton in
the long run.

BUSINESS PLAN 7
Business Venture
Products and services
A wide range of products and services would be provided by Hotel Tipton in terms of
food and beverages, room service housekeeping, well furnished beds along with mattresses,
pillows and covers, toilet rolls, shaving and dental kits, shampoos and soaps and television
sets with highly technical features.
Business size
At the initial stage, there would be hundred employees for Hotel Tipton to be
recruited for various departments based on their skills and abilities pertaining to the
requirements of the concerned job profiles (Chan, Hon, Okumus & Chan, 2017). The
stakeholders would be initially five which would increase accordingly along with the number
of employees.
Background of entrepreneur
The entrepreneur in question must have a sound knowledge of the hospitality industry
along with the market operations of a hotel (López-Gamero, Pertusa-Ortega, Molina-Azorín,
Tarí-Guilló & Pereira-Moliner, 2016). It would help in the establishment and expansion of
Hotel Tipton in an incredible manner.
Location
The first location of the business would be at Calgary as it has a huge number of
tourist spots. The location would be at the centre of Calgary taking account of the
accessibility to most of the areas in Calgary.
Physical facilities and operations
Descriptions
The physical facilities would involve furniture in the form beds, cupboards, chairs and
tables. Additionally, it would also include equipment in the form of television, vacuum
cleaner, mops and washing machines for laundry services (Rahimi & Gunlu, 2016). The
appropriate cutlery along with refrigerators would also be inclusive of the physical facilities
along with bar amenities in terms of beer taps.
Costs
Taking account of the descriptions of the aforesaid physical facilities and operations
for Hotel Tipton, the approximate costs are projected to be twenty million pounds which
includes taxes and duties to be paid additionally as per the financial policies applicable.
Marketing plan
Target market
The market would be targeted at people belonging to the age group of twenty to
seventy years as aforesaid. Local as well as international customers would be targeted by for

BUSINESS PLAN 8
Hotel Tipton as far as domestic and international tourism is concerned. The geographical area
would be Calgary which would expand when for Hotel Tipton enters into Canadian market
beyond Calgary.
Marketing strategies
The marketing strategies are to be formulated in planned manner thereby attracting
maximum number of customers (Kotler and Armstrong, 2015). Advertisements and
campaigns for its promotion should be in the form of flyers, pamphlets and billboards along
with televised and radio-oriented broadcasts. Any package deals along with airport pickups
must also be incorporated as a part of strategy.
Organization plan
Legal structure
The owners must be registered to undertake business activities in the Calgary. Hotel
Tipton must be registered as per the procedures followed in terms of the incorporation of a
company or any business entity. The rules and regulations must be followed as required for a
partnership firm with regard to its registration. The laws are to be strictly adhered to in such
aspect with regard to fairness in ownership deals.
Management team
In addition to the owners who would work to together on a partnership basis, there
would be a management team for each and every department such as housekeeping, food and
beverage, room service, infrastructure and layout along with customer and public relations
(Buhalis & Mamalakis, 2015). Each of these departments would be headed by an operations
manager along with the senior and assistant managers.
Licensing and insurance
The licenses would be obtained by the local council or authority in question with
regard to the ensuring of the adherence to business ethics on part of Hotel Tipton. Insurances
may also be taken into account with regard to financial benefits on account of untimely
events in the form of health and infrastructure. The costs are estimated upto two thousand
pounds in total.
Risk assessment
Weaknesses
The main weaknesses with regard to Hotel Tipton imply the customers being attracted
towards cheaper hotels. Season related to tourism would also imply heavy dependency of
Hotel Tipton towards tourists
Threats
The threats imply the advent of new hotels in the market and the competition with
various other chains of hotels based in the Calgary as aforesaid.

BUSINESS PLAN 9
Contingency plan
The contingency plan for Hotel Tipton implies the aspect of crisis management in the
event of any unforeseen instance occurring which would be beyond the control. It would
involve budgeting accordingly as a backup thereby implying an additional five million
pounds for the same.
Financial analysis
Feasibility analysis
Taking account of the budget as stipulated to twenty million pounds with an
additional amount of five million pounds, it is estimated that such amount of finances would
be feasible for Hotel Tipton to establish and expand accordingly as far as its initial stage is
concerned.
Start up costs
As aforesaid, the start up costs is estimated at twenty million pounds, which would
include infrastructural development of the hotel in the form of furniture and equipment along
with the additional chattels. It would also involve the employment of the staff which would
include hundred employees.
Cash flow forecast
The cash flow would be governed by factors with regard to the attraction of customers
and the returns over investments thereby resulting in profits and revenues. If the appropriate
strategy is formulated and implemented in the desired manner, it is projected that the cash
flow would be at as sky rocketing amount. Such a cash flow would play a vital role in the
further expansion of Hotel Tipton.
Sources and application of funds
Sources Utilization
Investment- three million dollars Furniture- seven million dollars
Equipment- six million dollars
Additional expenses- four million dollars
Total- three million dollars Total-seventeen million dollars

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References
Buhalis, D. & Mamalakis, E., (2015). Social media return on investment and performance
evaluation in the hotel industry context. In Information and communication
technologies in tourism 2015 (pp. 241-253). Springer, Cham.
Chan, E.S., Hon, A.H., Okumus, F. & Chan, W., (2017). An empirical study of
environmental practices and employee ecological behavior in the hotel
industry. Journal of Hospitality & Tourism Research, 41(5), pp.585-608.
Dedeoğlu, B.B. & Demirer, H., (2015). Differences in service quality perceptions of
stakeholders in the hotel industry. International Journal of Contemporary Hospitality
Management, 27(1), pp.130-146.
Fraj, E., Matute, J., & Melero, I. (2015). Environmental strategies and organizational
competitiveness in the hotel industry: The role of learning and innovation as
determinants of environmental success. Tourism Management, 46, 30-42.
Karatepe, O.M. & Karadas, G.,( 2015). Do psychological capital and work engagement foster
frontline employees’ satisfaction? A study in the hotel industry. International Journal
of Contemporary Hospitality Management, 27(6), pp.1254-1278.
Leung, X.Y., Bai, B. & Stahura, K.A., (2015). The marketing effectiveness of social media in
the hotel industry: A comparison of Facebook and Twitter. Journal of Hospitality &
Tourism Research, 39(2), pp.147-169.
López-Gamero, M.D., Pertusa-Ortega, E.M., Molina-Azorín, J.F., Tarí-Guilló, J.J. & Pereira-
Moliner, J., (2016). Organizational antecedents and competitive consequences of
environmental proactivity in the hotel industry. Journal of Sustainable
Tourism, 24(7), pp.949-970.
Molina-Azorín, J.F., Tarí, J.J., Pereira-Moliner, J., Lopez-Gamero, M.D. & Pertusa-Ortega,
E.M., (2015). The effects of quality and environmental management on competitive
advantage: A mixed methods study in the hotel industry. Tourism Management, 50,
pp.41-54.
Nieves, J., & Segarra-Ciprés, M. (2015). Management innovation in the hotel
industry. Tourism Management, 46, 51-58.
Rahimi, R. & Gunlu, E., (2016). Implementing customer relationship management (CRM) in
hotel industry from organizational culture perspective: case of a chain hotel in the
UK. International Journal of Contemporary Hospitality Management, 28(1), pp.89-
112.

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Appendix
Market research data
Secondary data Primary data
Information from government websites Interviews
Books Online Surveys
Journals Focus over groups
Online library Information through social media