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How To Write A Hostel Business Plan + Free Template

Hostel Business Plan Template

If you’re currently struggling with creating your hostel business plan, you’ve just struck gold.

This guide will cover everything you need to know about how you can create your business plan and receive funding. It includes free templates for you to download and a complete example case for every step along the way.

The template itself is based on real examples of other hostel owners to ensure you’re working with proven concepts.

Alrighty! Let’s get to the meat!

Hostel Business Plan - Basics

What is a business plan.

At its heart, a business plan is a for mal written document about HOW your hostel business works and WHY it will be successful, i.e. profitable. This is achieved through an analysis of your industry, customers, and competitors as well as the creation of an elaborate marketing and operations plan.

However, the centerpiece is the financial plan that tells you and the reader how and why your business is a profitable system. After all, the purpose of every business is – and should be – to make a profit.

Now there are two different forms of business plans depending on their respective purpose:

  • 1) A business plan for personal planning vs.
  • 2) A business plan to obtain funding

A business plan for your own planning is typically less comprehensive, written in informal language, less formatted, and typically comes down to a collection of notes. Obviously, you don’t need a nice-looking cover page if you’re the only one who’s going to read your plan.

In this blog, we’re solely focusing on a business plan that’s written to obtain funding.

But let me be very clear. Regardless of whether you need funding or not: Building your business according to your precisely constructed business plan is an approach that is as close to assured success as can be. Hence, I highly recommend you read along and follow the outlined steps regardless of your individual funding needs.

Hostel Business Plan Funding

Why Is A Business Plan Important?

Imagine a stranger rings your doorbell and asks you to invest $20.000 in his new business. Would you go ahead and get your checkwbook out just like that?

Of course not.

You probably would want to know what the business is about, what qualifies him as a person to build and run a successful business and what’s in it for you, right? Well, guess what, that’s just what your bank or sponsor is dying to know beforehand as well.

Your business plan is a tool that helps them understand the nature of your business and is the means to winning your bank or sponsor over. After all, they’ll only give you their money if they’re confident that they’ll receive something in return that they want.

Since a business plan forces you to think about your hostel intensively and requires several specific analyses, you’ll appreciate all the groundwork you did in the long run. 

That said, the financial calculations will be assumptions when you first start out. Over time, you’ll get a feeling for it and your assumptions will change into predictions .

You’ll understand why, in retrospect, many hostel owners confirm that their business plan was a bunch of nonsense juiced up on steroids , especially when they look at their initial calculations. This blog will make sure you get as close to the truth as you can get.

Let’s start with the basics.

How Long Should A Business Plan Be?

For the impatient: aim for 25 pages (+/- 5 pages excluding the appendix) and here’s why:

The length of a business plan depends on several factors:

  • c) How much funding you require → the more dough you need, the longer your business plan

For the reasons above, some new tech companies have to write business plans that exceed 100 pages! The good news: you’re not the first lodging facility that applies for a loan. There were many before you and there will be many after you.

20-30 pages have been proven to be the optimum for a hostel. It’s important to note that longer might not necessarily equal better . Let me tell you what most banks won’t tell you: no one reads a business plan from A-Z .

Hence, think about your reader on the other end and boil it down to the essential elements he needs to know. You furthermore give a signal that you value the other person’s time.

Plus, make sure it’s reader-friendly:

  • Use bullet points
  • Highlight the most important parts
  • Use white space and graphics

The more you get your potential bank clerk or investor interested and invested in your paper, the easier to convince him/her.

Hostel Business Plan Length

How To Write A Hostel Business Plan

To receive my master’s degree in business administration and engineering back in Germany, I had to write more than 10 academic papers: The shortest being 35 pages, the longest exceeding 170 pages.

Having a very low affinity towards language and writing at that time, I had to learn to write papers through the school of hard knocks: By trial and error.

Here’s my advice to you. Learn from my mistakes, apply the following basic rules and thank me later.

Following the rules will make your process a hell of a lot easier and will save you weeks if not months down the road.

Hostel Business Plan Download

  • #1 Go step-by-step!

Writing your first business plan can be overwhelming. Be assured that this feeling is completely normal. I even got reminded of that when I wrote this blog article about it.

So how do you eat this elephant? – The answer is: one bite at a time.

Consider every chapter as an individual project. You might even set goals to read and implement one chapter each day. That way, you focus on one thing at a time and your workload is cut up into bite-sized pieces.

Hostel Business Plan Tips

  • #2 Use a template

Don’t try to reinvent the wheel and use what’s proven successful. Especially for the generic part of your hostel plan, a template will save you a lot of time. Don’t worry, you can download all the templates here .

business plan for hostel pdf

  • #3 Finish your writing before proofreading & editing

While writing you build momentum. Don’t let proofreading and editing interfere with that. Instead, do it AFTER you’ve written all the different chapters.

Also, make sure you have a second person who can proofread your business plan. You’ll be so deep in the tunnel that you won’t recognize your own typos anymore.

Any spelling mistakes will impair the professional and respectable image you’re trying to create. It’s easy to lose people who are sensitive to things like that. So, be intentional with the paper you’re creating and go the extra mile to ensure its above-standard.

business plan for hostel pdf

  • #4 Format nicely and at the very end

Gosh, I have wasted so many hours in formatting my writings and designing beautiful-looking spreadsheets only to find out later that I won’t need them.

The best format is the one that entices the readers to read as much as possible. Remember: The better they understand your business the higher the chances for approval.

Hostel Business Plan Template Download

  • #5 Create a track record of execution

Show your readers that you’ve done your homework! Include many stats and spend some extra time on formatting to create a nice-looking document.

Your business plan, as well as your presentation, need to create the impression that you’ve covered – at least – all key aspects of running a successful hostel.

Backpackers Hostel Business Plan

  • #6 Make precise statements

Stay away from general wishy-washy statements like “we will use social media for marketing.” This immediately suggests that you haven’t actually planned how to make effective use of it.

Better: “Facebook will be our primary social media channel to build brand awareness. The implementation of a marketing calendar will ensure that we consistently update our feed with new content every second day.”

business plan for hostel pdf

  • #7 Write it for your reader

It’s nice to know that you’re passionate about hostels ever since growing up. But get real! Your investors won’t give a damn. The sole purpose of your business plan is to have them take their wallets out of their pockets. Period.

Investors only care about one thing and one thing only: Will I get my money (+ a profit) back if I invest in your hostel or not.

Hence, be assured that every critical question that comes to your mind while writing your own plan will probably be asked during your presentation.

How do I know? Well, there was a time when I had my own financial consulting business. I’ve been in contact with various investment companies and experienced first-hand what matters to them – and what doesn’t.

The best way is not to skip critical aspects. Instead, bluntly mention them in your paper, deliver an approach that takes care of the problem and demonstrate your responsible and considerate approach to business challenges.

business plan for hostel pdf

  • #8 Follow through

Lastly, as basic as these rules might sound, remind yourself on a regular basis to actually use them!

Your business plan isn’t just an attractive sales paper in order to twist your investors around your little finger. Be sure to follow through with the things you say and promise. Opt for the value-driven approach and show your character. That’s where true leadership comes into play.

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Hostel Business Plan Template (+ Download)

Here’s a quick overview of how to structure your business plan. Don’t be surprised to see other business plans that use other names for their chapters. There’s no standard.

However, this approach has been tried and tested by many other hostel owners. Hence, I recommend you follow in their footsteps:

1. Cover Page

2. executive summary, 3. table of contents, 4. the business.

  • 5.1 State Of The Marketplace

5.2 Trends In The Industry

6.1 target market, 6.2 competition analysis, 6.3 competitive advantage, 6.4 government regulations, 7.1 advertising & promotion, 7.2 pricing, 8.1 organizational structure.

  • 8.2 Job Descriptions & Responsibilities

8.3 Action Plan & Timetable

9.1 start-up costs, 9.2 funding requirement, 9.3 profit/loss statement, 9.4 break-even point.

  • 10 Appendix

Breathe. We’ll go over this one step at a time.

My goal is to make it as easy and convenient as possible for you to write your first business plan. Hence, I’m going to give you a quick explanation at the beginning of each chapter about what this part should include (called “content”). Below it, you’ll find a written example of how this could look like (called “template”).

You can download a FREE template for all your financial calculations HERE.

Before we dive right into it… may I ask you for a favor? 

I really want to help you in the best possible way. Hence, please let me know in the comment section below

  • a) If any instructions are unclear
  • b) If you believe an important aspect is missing
  • c) What I can do to make it even more convenient for you to write your business plan

Thanks! That means the world to me.

Lastly, the example below is a fiction. I’ve chosen Cairns as the location simply because I’m currently living in Cairns. “Hostel Shark” is the name of one of my domains. This is going to be a website on which I will show you step-by-step how you can easily build your own website for less than $100.

Okay, let’s go!

People judge a book by its cove r and the same holds true for your business plan.

I highly recommend you create your cover with Canva . It’s a free and intuitive online tool that allows you to create the nicest images within seconds. Simply use a Din A4 format and search for “business plan”.

Hostel Business Plan Cover Template

  • Business name
  • Creation date
  • Contact details (name, address, phone, email)
  • Website (if available)
  • Business logo (if available)

T E M P L A T E

Hostel Business Plan Cover

Note from Kevin: It took me about 10min to create this cover (incl. logo) with Canva .

An executive summary is an overview of your business plan. Its purpose is to summarize the key points for the respective readers. This is the most crucial part of your business plan and often the make-or-break component .

While few people will read your entire business plan, the executive summary is going to be read by everyone. It should be no longer than one page.

Write this part at the very end!

  • The Business: Business name, legal structure, offered services, manager and his or her credentials
  • Location: What makes this the “perfect” place?
  • Industry Analysis: Quick info about the general market
  • Target market: Who is buying your product or service?
  • Your competitive advantage: Your unique selling proposition (USP)
  • Financial projections: Break-even point and chart of profit/loss statement for the first 3 years.
  • Funding requirement: How big is the loan you’re asking for?

Hostel Shark LLC is a hostel that provides low-budget accommodation for tourists in Cairns. It is owned and managed by Kevin who has 6 years of hands-on experience in various functions throughout the hospitality industry and holds a master’s degree in business administration and engineering. The primary service will be the accommodation of guests.

Cairns offers great potential for additional hostels. It’s mild winter temperatures and the fact that it is one of the major stops along Australia’s popular east-coast-tour makes it especially attractive for hostel travelers. Other hostels in the area achieve above-average occupancy rates compared to all hostels worldwide.

Hostels have a strong business model and can clearly differentiate themselves from other lodging establishments through their unique community and social atmosphere. They are especially sustainable in crises and cost-effective due to the fact that several guests share the facilities and rooms.

They have proven to be sustainable throughout economic recessions since they offer a cost-effective guest experience in shared facilities and rooms.

The hostel aims to attract travelers between 18-30 years of age. This target market has been statistically proven to be the most profitable and resilient compared to other tourist groups. The hostel will include 16 rooms with a total of 64 beds.

The biggest competitors of Hostel Shark are other hostels. However, there’s a market gap when it comes to serving tech-savvy guests. Hostel Shark will offer high-speed Wi-Fi in the entire building and additional sockets and USB plugins to close this gap. Moreover, we are going to concentrate on the social aspect of our hostel to further differentiate it from other lodging models.

Our marketing plan is based on successful and proven methods. Online travel agencies are the core driver for new bookings and will be complemented by our mobile responsive and SEO optimized website.

The business is projected to be profitable from year one and will increase its net profit over time. The break-even point is reached at an occupancy rate of 29% (1694 booked nights). The average occupancy rate of hostels in Cairns is 68%.

Hostel Business Plan - Executive Summary

Funding requirement: The management is seeking to raise $200.000 for the development of the hostel.

My favorite part of a business plan 😅

Use a tool like Microsoft Word to create your table of contents automatically. This ensures your titles are linked to the content, i.e. clickable text, and readers are efficient going through your paper.

Free Report About Hostel Challenges

This section should give your reader a general impression of what you’re doing and where.

  • Our Mission Statement: Company name, legal structure, goal, and how you’ll achieve it
  • Location: What makes this location perfect for your hostel? Include statistics .
  • Services: What additional services do you offer besides accommodating people?

Hostel Business Plan - Basics

Our Mission Statement

Hostel Shark LLC’s mission is to provide low-budget quality accommodation for both domestic and international tourists visiting the city of Cairns. Our company’s core focus is to accommodate travelers who are traveling alone and or are unfamiliar with the city and seek an easy way to connect with other travelers.

Having a thriving community combined with a highly personal atmosphere and plenty of common areas is the key success driver in our business. We aim for a clear differentiation by developing a culture unique to Hostel Shark. This will help us gain a strong market share at the early stage of operations, and will attract more customers over time through word-of-mouth. 

To further cultivate the community aspect of our hostel, we decided to implement a loyalty program for guests who are staying with us for more than one consecutive week. In addition, there will be weekly team building activities to strengthen and expand the community.

Tourist information for local sights, events and activities will be provided as well as various snacks through two 24/7 vending machines.

The location we chose for our hostel is the city of Cairns in Australia. Cairns is located in Tropical North Queensl and has a population of about 150.000 inhabitants. Around 2 million tourists are visiting Cairns each year. [ 1 ] The city is considered “the gateway to the Great Barrier Reef” and is popular for its beautiful rainforest areas, Aboriginal culture, its esplanade, and the free swimming lagoon.

In 2015, around 7.4 million tourists visited Australia. Despite the fact that Cairns contributes only 0.6% of Australia’s total inhabitants, approximately 27% of all tourists did stop for a visit in Cairns. [ 2 ]

With its unique climate, Cairns is the perfect location for our hostel. Since it’s located in the north of Australia, we experience mild winters with an average temperature of 20°C. Many backpackers take advantage of the Cairns climate from April up to December when it’s too cold in the big cities like Sydney, Melbourne, and Perth. That’s why lodging facilities around Cairns experience above-average occupancy rates even in the colder months.

Cairns is a safe bet and stopping point for people who’re traveling the popular east-coast-tour in Australia. The two leading hop-on / hop-off bus companies Greyhound and Premier offer several trips from Cairns to other big cities like Brisbane, Sydney, and Melbourne. In fact, Cairns is an established starting or endpoint of travelers before they leave the country. Both contribute to a steady flow of new guests and longer average stays.

The venue we are looking into buying is located in the center of the city. All famous sights can be reached by foot. The local bus station nearby provides access to all outside sights within the region. All important premises to meet the daily necessities of our guests are located within 400m. This includes several grocery stores, cafes, restaurants, bars, night clubs, and hairdressers. 

Hostel Business Plan Basics

Hostel Shark LLC’s core service is to accommodate guests. It will feature private rooms as well as shared rooms. We plan to provide ten dorm rooms (6x 4 beds, 4x 8 beds), two double rooms (2x 2 beds), and four private rooms (4x 1 bed). In total, we have a capacity of 64 beds across 16 rooms.

We will charge more for private rooms than for dorms and more for smaller shared dorms compared to larger ones. The double rooms and private rooms have en-suite bathrooms, the dorms will have shared bathrooms.

Besides our core service, we offer bicycle rental, towel rental, laundry service, and snacks in our vending machines. Our free services include book exchange, access to a movie library, weekly social events, Wi-Fi, two computers as well as luggage storage.

A fully equipped kitchen will be available to our patrons and includes a variety of pots, pans, dishes, basic spices, free coffee, and free tea. Our customers can bring, prepare and store their own food in there. They will be responsible for cleaning up their own dishes. 

5. Industry Analysis

Still with me? Let’s take a look at the Industry Analysis.

BE AWARE that most bankers and other investors are unfamiliar with hostels and their industry. Hence, I recommend you don’t miss out on the chance to “sell” them how awesome this industry is because – as a matter of fact – IT IS AWESOME!

  • State Of The Marketplace: How well the industry is developed, what’s the status quo and why it is a great market to be in. You can also include location-specific statistics like you’ll find in the example below.
  • Industry Trends: Current trends and how they impact the industry and your hostel. Tell them how you are able to cope with the new demands and how you considered them in your operation.

Hostel Business Plan - Industry Analysis

5.1 State Of The Ma rketplace

The hostel industry is growing rapidly across the globe. In fact, “the hostel industry is projected to grow seven to eight percent year-over-year until 2020. [ 3 ] This is a reflection of its strong business model that is based upon two factors:

  • 1) Sustainability

Hostels have proven to be less likely affected by economic crises. Here are several examples:

  • “Even as the city’s hotel occupancy rate has fallen to 66 percent in February, from 81 percent in the same month last year, despite steep discounts, many youth hostels are reporting banner business.” [ 4 ]
  • “Even during the 2008 economic crisis, many hostels reported increased occupancy numbers in a time when hotel bookings are down.” [ 5 ]
  • “If you look at the financial crisis of 2008, 2009, the first companies which were hit hardest were the five and four-star hotels because business travel is put on hold.“ [ 6 ]
  • “According to the survey, one of the main reasons for a relatively strong performance of the hostel sector is the tendency for operators to innovate and adapt their products to suit market conditions. The fact that hostel operators could generally sustain business levels through the economic downturn of 2008-2010 was one of the main reasons why overall average bed rates for 2009 rose by more than 3% compared with 2008.“ [ 7 ]
  • 2) Profitability

The management believes there’s a reason why the second paragraph on Wikipedia about hostels begins with the following sentence: “Many hostels are family-owned or run, and are often cheaper for both the operator and occupants than hotels”. [ 8 ] In fact, “some cities report a higher average income per room for hostels than hotels […] due to several paying guests residing in a room.” [ 9 ]

Industry experts believe this is the case due to lower expectations and the efficiency of shared facilities: “The other interesting thing about hostels is that they’re a lot more financially viable […]. That’s because hotel rooms need to have a certain square footage and that has to include a bathroom, there are certain expectations.” [ 10 ] 

Furthermore, Australia shows great potential for hostels compared to other continents. Worldwide the average occupancy rate among hostels is 56%. Oceania and Asia are the leading continents which further strengthens our choice for the location. [ 11 ] From 2001 till 2009 total international visitors have grown by 3% per year in Australia. Over the same period, total international visitors grew by an average annual rate of 1%. [ 12 ] 

The hostel industry has seen several changes over the last couple of years. Originally, hostels only offered dorms and no private rooms. Today, 9 out of 10 hostels provide private rooms. [ 13 ] That’s why Hostel Shark will dedicate 25% of its rooms (4/16) to private rooms.

Remote working, freelancers and digital nomads grew by 140% between 2005-2018. [ 14 ] To be able to meet their needs, we’ll offer multiple desks in the common areas with sockets for several devices. Multiple routers will be installed across the establishment to ensure high-speed Wi-Fi.

Female travelers are a rapidly growing target group. Security, cleanliness, and atmosphere are set to be the biggest booking influencing factors for women. [ 15 ] To meet their needs, all common facilities are going to be cleaned twice daily and there will be several security cameras as an additional safety feature across the hostel.

The latest industry report from Hostelworld shows that tomorrow’s travelers are much more drawn towards hip and trendy hostels. In fact, there’s a 44% increase in the importance of decor when making a choice on booking compared to a few years ago. [ 16 ] This is why we chose to work with an experienced interior designer who’s responsible to make our hostel appealing in every conceivable way.

Hostels have a reputation for being just a cheap form of accommodation. In the meantime, competition has increased and other establishments can partly compete with their prices. For future hostels, it is going to be crucially important to focus on the social aspect and to deliver a unique experience rather than just a cheap bed. [ 17 ] We will further discuss this challenge in the competition analysis chapter.

6. Market Analysis

  • Target Market: Major demographic, economic, social and cultural factors. What’s unique about your target market?
  • Competition Analysis: Competitors, their strengths & weaknesses. If there are too many competitors in your area, describe them as a whole and limit your analysis to a few exemplary cases.
  • Competitive Advantage: What’s your unique selling proposition (USP)? Why should travelers book your hostel? Your competitive advantage is one of the most crucial aspects of your business plan. It basically covers the questions of why guests should stay at YOUR hostel and not at your nearest competitors. Think of it as your “reason to exist”.
  • Government Regulations: Legal and zoning requirements and how you’ve taken them into consideration throughout your plan

Hostel Business Plan - Competition Analysis

Hostel Shark LLC aims to attract domestic and international travelers between 18-30 years of age. Hence, we’ll serve mainly two generations: Millennials and Generation Z.

Millennials are people who were born between 1981 and 1996 (23-38 years old). They are tech-savvy, family-centric, and tend to have a strong craving for attention. Generation Z describes people who were born after 1996. The major difference is that they grew up in a globalized and interconnected world. Hence, they tend to be even more tech-savvy and technology is a major part of their lifestyle.[ 18 ]

The management of Hostel Shark is confident in their target market selection and based their decision on statistics: 

  • The youth market is of high value

Although millennial travelers have a lower than average income, they spend more money on longer trips. Many tend to be time-rich which allows them to spend more time at a destination compared to any other tourist. [ 19 ] Compared to other tourists, Australian hostel travelers spend around double the amount of money during their trip in Australia. [ 20 ] 

  • The youth market is resilient

When the going gets tough, young travelers keep traveling. They are relatively intrepid when it comes to economic problems, political unrest or epidemics.

  • 2009-2010: Although the youth market was affected by the global fiscal crisis, it declined less and recovered faster than mainstream tourism.
  • 2011: 2/3 of Australian travelers were affected by the strong Australian dollar. Despite that, the trip length did not appear to have altered significantly.
  • 2014: The Ebola epidemic had little impact on their travel plans. [ 21 ]

Some evidence even suggests that a poor economy stimulates young travelers to do longer trips until more job opportunities become available. [ 22 ]

Bottom line: The youth market is more profitable and less volatile than the tourism market as a whole. Since this is rather counterintuitive, the management sees great potential in the hostel sector.

In total, there are 28 hostels, 30 hotels, 306 Airbnb rooms, and several hundred apartments listed in Cairns (Sept. 2019). In this analysis, we will cover all the accommodation types that we consider direct competition of our future hostel.

The management is firmly convinced that apartments will affect our business to only a very small percentage. Most apartments in the location we’ve chosen cost 3-4x times the amount compared to our cheapest available room and have minimum stay requirements beginning from 2 months up to 6 months. Other hostel owners in the area confirm that only a very small percentage of “slow travelers” move into a private apartment.

Most hotels in Cairns are located at the esplanade and accommodate predominantly families, business travelers, and elderly visitors. A study about millennial travelers revealed that the price for value (#1) as well as the location (#2) and the social atmosphere (#3) are the three major reasons for young travelers to opt for hostels. [ 23 ]

6 hotels can compete with the pre-planned prices for our private room. That said, they are not nearly as centrally located as our hostel and can’t keep up with the social aspect. This makes us very confident in our belief that hotels are a small peril for our hostel.

Several Airbnbs are located within 500m of our hostel. They tend to be more pricey than our cheapest available room and do not provide the desired community. Hence, our main competitors are other hostels.

The following analysis includes all well-established hostels that are situated within 500m of our hostel.

  • 1) Palm Hostel Cairns

This hostel opened its doors in 2009 and is located 500m away from the city center. Palm Hostel Cairns offers a wide variety of facilities (incl. pool) and has a capacity of 35 beds. With $32 per night as their cheapest option, they belong to the most expensive hostels in Cairns. What’s special about this hostel is that they don’t provide bunk beds (only twin beds), offer a weekly barbeque night and have built a reputation for their tour desk. Their main target market are 25-40 years old travelers. Their overall rating on Hostelworld is 9.2 stars.

  • 2) Travelers Paradise

Travelers Paradise was built in 2003 and is located in the city center. It provides only basic facilities (no pool, few common areas) and can accommodate up to 102 guests. Their cheapest dorm costs $17 per night and makes them one of the cheapest available accommodations in Cairns. Furthermore, they offer free pancakes for breakfast and have a built-in pizza restaurant. Guests who’ve booked through Hostelworld rate this hostel with 8.2 stars. According to TripAdvisor, most guests tend to be between 18-24 years old.

  • 3) Crazy Chick Hostel

This hostel is one of two existing party hostels in Cairns. Their main focus is travelers who come to Cairns to party. They are well known among young partiers for their daily ping pong championship. The location is 300m away from the city center. The Crazy Chick Hostel has an overall capacity of 56 beds and doesn’t offer any private rooms. Their smallest dorm is for 4 people. The hostel is rated with 8.0 stars on Hostelworld. The facilities provided are rather basic and designed for the nightly parties. Dorm prices range from $22 to $25 per night.

The main advantage of other hostels in the area is that they are already established and have many reviews across several online travel agencies. To overcome this hurdle we’re going to offer the cheapest available price for our dorms in the first month and reward every guest with a free breakfast for every online review.

When setting up our marketing plan for our hostel, we have taken special considerations to market gaps in our area: None of the hostels offers special facilities for young tech-savvy guests. We plan to provide several sockets at each wall, inside as well as outside of the establishment. To provide optimal high-speed Wi-Fi, we’ll install 5 routers across our hostel to ensure the signal is strong enough in every room to stream videos without buffering. Moreover, every bed will have its own private USB plugins.

Most hostel travelers choose hostels for their community and the opportunity to meet new friends. Our hostel will focus on a family-like vibe by offering free social activities every second day as well as common areas that are designed to facilitate interactions. We believe the social aspect is the main reason why hostels will always prosper no matter how many other accommodation forms actually do compete with our prices. Hence, this is our approach to guarantee long-term success.

Other unique advantages for staying at our hostel is that we offer free jello in the morning and free coffee + tea during the day. We also have a collaboration with a local fitness studio that allows our guests to work out for free. Since we know many business owners in the area, we will also be able to offer jobs on a regular basis. We are sure this will help us to get more long-term guests as well as a stable occupancy rate in the off-season.

The management understands the importance of zoning and other legal regulations. To prevent any issues, we’ve already been in contact with the local zoning commission, building department, fire department, health department, and the Disability Support Queensland.

The property we intend to buy is zoned for max. 22 rooms. This allows for six additional rooms to what we’ve planned. Furthermore, our hostel requires a fire sprinkler system that is already installed as well as a commercial kitchen with a separate hand-washing sink.

The only major change we have to make is to add a ramp to the pre-existing steps. All renovations will be supervised by an architect and contractor who are both experienced in lodging facilities to make sure we meet all necessary requirements.

7. Sales & Marketing Plan

  • Advertising & Promotion: How will you attract guests and make sure you achieve your projected occupancy rate? How will you manage your availability? Which distribution channels will you use and how?
  • Pricing: How do you price your services & rooms?

Hostel Business Plan - Marketing Plan

Pro-Tip: It creates an awesome impression, if you can show them that you already have a website. It immediately signals: “Hey, I’m serious about it.” 

And the best part: This is WAY easier than most people think. In this step-by-step guide , I show you how you can create your own professional website within 15 minutes and for less than $100.

The management at Hostel Shark LLC believes in copying successful and proven methods rather than reinventing the wheel. Hence, our marketing plan is based on statistics, trends and our own extensive experience within the hostel industry.

Our primary source for bookings will be several online travel agencies (OTAs). OTAs allow our young hostel to get instant access to millions of travelers worldwide. In 2019, 70% of hostel travelers use OTAs to reserve their beds and this trend greatly increased over the last few years. [ 24 ]

For maximum efficiency, we will sign up for Hostelworld.com, Booking.com, Hostelculture.com, and Hostelclub.com. The first two OTAs account for approx. 91% of all hostel reservations. [ 25 ] Furthermore, they are the only two OTAs that are used by all of the top 41 hostels worldwide. [ 26 ] To reduce the overall commissions and attract more people who are specifically looking for hostels, we further diversify with Hostelculture.com, and Hostelsclub.com.

Over and over again, studies have proven that the presence on various OTAs increases direct bookings by 9-26%. [ 27 ] Hence, we’ll provide our own hostel website which has already been created: www.hostelshark.com

We are aware of the fact that direct bookings are a declining trend in the hostel industry. To increase the effectiveness thereof, we’ll set up a blog that covers several guides about the sights, attractions and general information about Cairns. To increase our monthly traffic, we will also consider free accommodations in return for blog articles on our website in the off-season.

The availability of rooms across several websites as well as all the other aspects of a reservation (e.g. collecting all necessary data, sending an automated confirmation email, etc.) will be managed through a channel manager and property management system from Cloudbeds. This will help us prevent overbookings and saves us many additional staff hours per month. Cloudbeds software is the most commonly used software among the leading hostels. [ 28 ]

Our website is optimized for SEO and offers various additional bonuses for people who’re booking directly. The number of hostel travelers that book via mobile has greatly increased over the last few years. Hence, we have designed our website for best mobile responsiveness. [ 29 ] The booking engine is provided by Cloudbeds.

We will use social media as a way to build our brand and have social proof through followers, likes, and reviews. To achieve this, we focus solely on Facebook which is used by 70% of the top 41 hostels [ 30 ]. Since we know about the inefficiency of social media for new bookings in 2019, we will keep promotions for our hostel at a maximum of 10%.

Offline promotion will also play a role in our overall marketing plan, but it is not our primary focus since it’s a declining trend. Among several smaller offline marketing tactics, our intention is to attract most customers by giving away rack cards to local premises as well as other hostels in nearby cities. Cairns is part of Australia’s popular east-coast-tour. Hence, we’ll contact hostels in neighboring cities about a joint-venture for mutual lead-generation. 

All marketing activities will be managed with a custom-designed marketing calendar to ensure consistency. That way we have a standard to measure results and improve it accordingly to the feedback we receive.

The management is aware of the fact that prices are a critical positioning indicator and greatly affect the clientele a hostel attracts. For this reason, we do not intend to be the price leader in our area and instead aim to be within the upper range of prices.

We will also include flexible pricing since guests expect lower prices in the off-season and higher prices in the high season.

Hostel Business Plan Pricing

Additional services are priced as follows:

  • Bike rental: $15 per day
  • Laundry service: $4 for washing, $3 for drying
  • Vending machine: prices for items range from $2-$5

Hostel Business Plan - Additional Income

Note from Kevin: What feeling do you get from reading through this? Would you invest in Hostel Shark? – If it’s a “goddamn, this dude knows what he’s talking about”, then your investors will probably think the same. If not, focus more on “selling” and yourself and your hostel!

Free Ebook For Hostel Owners (4)

8. Operations Plan & Human Resources

  • Organizational Structure: Organizational chart of your hostel
  • Job Description & Responsibilities: Information about your relevant experiences. It’s also highly recommended to add a full CV in the appendix. Include a list of all key employees, their tasks, and responsibilities. What background and experience should they have? 
  • Action Plan & Timetable: What are the milestones until you’re welcoming your first guest? Always include a security buffer for unforeseen occurrences.

Hostel Shark LLC will have a flat organizational structure. The short communication ways allow us to be flexible and act quickly in case of emergencies.

Hostel Business Plan - Organizational Structure

8.2 Job Description & Responsibilities

General Manager

Our General Manager will be the owner himself. He holds a master’s degree in business administration and engineering and has been working within the hospitality industry for more than 6 years.

While operating a successful consulting business, he developed excellent verbal and written communication skills. In combination with his analytical background as a former engineer, he’s confident in his skills in operating the new hostel.

Further information including a CV of the manager can be found in the appendix section A3.

Responsibilities:

  • Hiring and managing staff including external service provider
  • Organizing and coordinating current operations
  • Executing the marketing plan
  • Measuring and analyzing key metrics on a weekly and monthly basis
  • Creating systems through checklists and manuals
  • Bookkeeping in cooperation with an accountant and the use of an accounting software called “Quickbooks” 
  • Maintaining an excellent standard of customer service
  • Identifying customer needs and responding proactively to meet them

To ensure that all operations run smoothly, the manager will be actively involved in all aspects of running the hostel for the first few weeks. Moreover, weekly meetings with all staff members will take place to speed up the feedback cycle.

To ensure regular bookkeeping as well as the consideration of all other legal requirements, the management is going to hire an accountant. The accountant has to be familiar with the requirements of the lodging industry and has to have an appropriate track record. He also has to be familiar with our software “Quickbooks”.

Quarterly meetings will ensure that we take advantage of all the financial opportunities available. All in all, the management believes that this expense will increase the overall profit and considers it to be an investment.

The management knows about the importance of the first impression as well as the impact of staff on overall customer satisfaction. Hence, all applicants have to go through a 3-step procedure before we hire any staff. The front desk has to be very familiar and knowledgeable about the city and its sights to be able to serve our customers better. They also need to be above-average friendly, patient and be able to create a warm and welcoming atmosphere. 

  • Welcoming guests
  • Checking in guests
  • Managing and receiving bookings via phone, email and in-person
  • Providing guests with directions and information about all important premises
  • Balancing cash at the end of the shift
  • Contacting the manager when a problem is reported
  • Doing the laundry 

Front desk staff is not allowed to live in the hostel but have to live close-by. The management believes that maximum focus and commitment can only be achieved when there’s a change in the work environment. Two people will be employed full-time and one person part-time. Their payment will be the statutory minimum wage plus 10%. Wage raises are optional depending on their measured performance over time.

Housekeeper

At Hostel Shark, we separate customer service from cleaning the facilities. We want our front desk staff to be 100% focused on our guests’ satisfaction. Hence, we will make use of an external cleaning company to keep our facilities in great condition. The hostel will be deep-cleaned 3x per week in high season and 2x per week in the off-season. Bathrooms and the kitchen will be cleaned twice a day; all other facilities will be cleaned on a daily basis.

  • Sweeping, scrubbing, mopping and polishing floors
  • Cleaning metal fixtures and fittings
  • Tidying up rooms
  • Cleaning wash basins, mirrors, and showers
  • Cleaning the kitchen and washing the dishes
  • Changing bed sheets
  • Monitoring and reporting necessary repairs and replacements

Occasionally, the hostel will make use of work/trade employees for specific work and never longer than one week. The management has experienced first-hand how hard it is to motivate people in the long run without a monetary payment. Hence, all work/trade agreements will be made on a daily basis and exclusively in the off-season. 

Tasks may include cutting the lawn, easy paint works, and blogging for our website.

We plan to welcome our first guests on April 30th, 2020. All necessary renovations have been discussed with our architect and contractor and will probably take 55 working days. Since we have experience with similar projects in the past, we added one additional month to guarantee the completion of our hostel.

More information about the necessary renovations and the floor plan can be found in the appendix A4.

Hostel Busienss Plan - Operations Plan

9. Financial Plan

The financial plan is the centerpiece of your business plan. No matter how nice your business plan is looking, if your hostel isn’t profitable, you won’t get funding. Period.

  • Start-Up Costs: The more detailed you can calculate your start-up costs the better! Also, include 6-12 months to cover operating costs (called “working capital”). The bank will want to see that you’ve accounted for that!
  • Funding Requirement: How much money are you asking for? How fast are you going to pay it back?
  • Profit/Loss Statement: A detailed breakdown of all revenue, expenses and net profit. Typically, your bank will want to have a monthly calculation for the first year and a 3-year statement. However, every bank has different requirements. Some might even want a 10-year breakdown. Ask them in advance.
  • Break-Even Point: At what occupancy rate is your hostel profitable? There are different ways to calculate that. The easiest and fastest is to use your spreadsheet and play with your numbers. However, be sure to have proper reasoning prepared in your presentation!

It takes time to establish your hostel. Between 50-66% of the average occupancy rate is a standard recommendation for your first year. On average, it takes around 3 years to match the average occupancy rate of your competition.

If you exceed this mark in your second year, you’re doing really well! Thanks to OTAs, this process can be massively accelerated!

The profit or loss can be calculated as follows:

  • Profit or Loss = Revenue – Expenses – Taxes
  • Revenue = Average Room Rate x Number Of Rooms x Number Of Operating Days x Occupancy Rate
  • Expenses = Total Operational Costs + Loan Payment

Ideally, your hostel should generate a profit of about 120% of the debt service after all expenses.

Click here to download all the following templates for free.

Don’t worry. All tables including easy explanations on how to do the calculation can be found in the spreadsheets. You don’t have to be a math whiz. I made it super easy for you. 

Hostel Business Plan - Financial Plan

The total start-up costs for Hostel Shark LLC are $240.000.

Here’s a break-down of all the costs:

Hostel Business Plan - Start-up costs

Kevin is seeking to raise $200.000 from Westpac Bank Cairns Central in order to launch the operation of Hostel Shark LCC. $40.000 are covered by equity capital. The exact terms, interest rates, and conditions are to be determined during negotiation. This business plan assumes a 10-year loan with a 9.5% interest rate on the outstanding balance.

The financing will be used to buy the planned property, renovation works and financing the first six months of operations.

The expected payment plan is:

Hostel Business Plan - Payment Plan

Note from Kevin: There’s a calculator in the spreadsheets you can download for free here .

In order to calculate the net profit of our hostel, we had to make several assumptions. The average occupancy rate in Cairns for hostels is 68%. For the first year, we assumed an occupancy rate of 50% of the average occupancy rate (34%). Since we do have several years of experience in marketing, we are confident that we will achieve the average occupancy rate in the second year (68%) and exceed it by 5% in the third year (73%).

We wouldn’t start a new hostel if we weren’t absolutely sure to be better than the average hostel.

Utility costs are based on data from other lodging facilities in the area. We did not consider additional income streams from our bike rental and vending machines in our calculations. Furthermore, we took the prices for the shoulder season as an average price for our beds.

Profit / Loss Statement (First Year)

Hostel Business Plan - Profit/Loss-Statement

Profit / Loss Statement (3 Years)

Hostel Business Plan - Profit / Lss Statement (3 Years)

Our hostel has to exceed an occupancy rate of 29% to be profitable. In absolute numbers that’s 1694 booked nights per year.

10. Appendix

There’s no standard rule on what documents you can add in your appendix. Only provide relevant information here. Don’t clutter your business plan with too many or unnecessary details. That said, the following documents have been useful for other hostel owners:

  • Floor plan of your hostel: how do you intend to structure your hostel?
  • CV of you and all other principals
  • Copy of the purchase agreement for the building
  • Copy of the architect’s or contractor’s plan

Et voilà, you’re ready to go! 🙂

Hostel Business Plan - Appendix

STOP! 🤚 I need your help.

Before you leave: Answer this quick question and help our community.

How can I make this template better for you? What would you change/add? 

I want to continually update and improve this template to ensure starting out as a new hostel owner becomes as easy as possible. Hence, if you’re willing to share your business plan with me after you’ve finished yours – that’d be greatly appreciated!

P.S. People who read this article were also interested in:

  • Buy or lease a hostel property?
  • 8 keys for choosing the best hostel location

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TheHostelHelper

24 thoughts on “ How To Write A Hostel Business Plan + Free Template ”

Regarding your marketing plan:

JESUS. Now imagine all hostels would only do that… only that… they would be SO INCREDIBLY successful.

That’s the goal! 🙂

You’re my lifesaver. I’d have paid for these templates. No joke. Cheers, Joseph

Hi Joseph, wow, thanks for the compliment! I really appreciate it.

Awwwwwwwwww!!! You’re a legend! Thanks a lot!!!

My pleasure, Todd 🙂

haven’t finished reading yet, but there are plenty of great ideas in it! thanks for all the information!

Anytime, Penny 🙂

Thanks so much for this ! It’s really simple and easy to understand and covers everything , love you!

Your welcome, Rola 🙂 Glad you like it!

Finally a business plan that I understood! Gosh, thanks so much !

My pleasure, Leslie 🙂

Just tested Canva for the cover page … Gosh, this is AMAZING!! I’m really not the creative kind of dude, but damn, my cover looks like a professional designer spent years on it hahaaha 😝 Thanks for the tip!

Awesome! That sounds great, Edwin 🙂 Glad you like it.

….did I already tell you how much easier you’re making my life with this article??? This is genius, man. Seriously. Thank you so much!

My pleasure, Carolyn 🙂

Wow, there are some pretty awesome tips included in the template! Thanks for your effort!

I’m glad you like it 🙂

Wowowowowow! I like my coffee like I like this post…clean, elegant, and 6-12 months of operating costs.

Great to heart that 🙂

Wow. I am motivated!!

Awesome! Go for it 🙂

Thank you so much ! It’s very interested

My pleasure 🙂

Comments are closed.

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How To Start Your Hostel Business: Complete Guide

Is it profitable to start a hostel, what makes a successful hostel business, a step-by-step guide to starting your hostel.

Starting any business requires a significant amount of knowledge regarding such business. It involves investing your time, finance, and energy. Starting a hostel business is no different.

Hostels are affordable establishments ready to accommodate different people. They offer low-cost shelter, food, and other services.

As popular as hostels are, it can get a little tricky when it comes to starting this business from the scratch. The essence of this post is to shed light on all the primary concerns when it comes to starting a hostel.

In this article, we will be exploring a complete guide to starting your hostel in 2022.

Before starting a hostel business, it’s expected of you to wonder just how much profit you can make from this venture.

The profitability of a hostel is highly dependent on factors that you; as the owner or manager control. Many hostels make decent profits. Since hostels operate by a business model that enables minimizing operational costs while maximizing profit, the only real obstacle to making your hostel profitable is the number of guests you’re able to attract and convert.

To give you a clear illustration of how much money your hostel business could be making, you can try out this free hostel revenue calculator .

Using a medium-sized hostel as an example:

100 beds at $22 per night = $2200 gross income per night when full. Even calculated with a conservative average of 50% average occupancy and the gross income is $1100 per night or about $30,000 per month.

Now you’re probably thinking - if hostel businesses are so easy to make profits off, why isn’t everyone doing it? Why aren’t all hostel owners cashing out?

Well, there are so many factors that set apart the successful hostels from the rest of the pack. Let’s explore that below!

As we just established, there are numerous hostels, but not all of them are successful. The question that every hostel owner asks is, ‘How do I make my hostel successful?’

The success of your hostel is directly dependent on the number of guests you’re able to attract. There are a host of ways that this can be made a reality and these are the most commonly observed tips successful hostels implement in their establishment.

Great Services

There are some basic services that your hostel must provide. These include good Wifi, a good Mattress, Safe Lockers, access to hot showers, and a tidy environment. As simple as these sound, guests see them as essential services.

Read more: How To Manage Your Hostel The Right Way

Once you have the essentials nailed down, it’s time to explore additional services that will leave your guests impressed. Recreational spots like bars and mouthwatering attractions like complimentary breakfasts are extra services you could offer to boost your guest experience.

Cleanliness is also a service that makes hostels very appealing. Nobody wants to stay in a dirty environment. From well-laundered sheets and fresh-smelling rooms to ever-polished surfaces; guests love a hostel environment that is spotless. It serves as one of the best ways to keep more people coming.

Once you have a hostel that offers excellent services, you need to get the word out somehow. Of course, social media is a great tool for marketing your product to the world but, oftentimes in the beginning the most effective form of marketing is word of mouth (WOM).

WOM marketing is one of the most powerful forms of advertising as 92% of consumers trusts their friends over traditional media . This is why expanding your network is crucial to the success of your hostel.

You can do this by signing up with hostel associations. There are a great number of associations comprising different hostel owners.

You can also encourage WOM marketing by providing good customer service, giving exclusive information to your customers, and offering loyalty/referral programs.

“Networking is an investment in your business. It takes time and when done correctly can yield great results for years to come.”

Attractive Pricing

The best hostels in the world offer high value for the money they charge and oftentimes overly priced locations are selling a brand rather than the product itself.

Deciding on the sweet spot of pricing of your rooms is essential and that is why doing an in-depth market analysis as well as price analysis is unavoidable. These are key information that is included in a hostel’s business plan.

Based on your price analysis, you can find the most attractive pricing for your guests but generally as a rule of thumb, placing exorbitant prices on your rooms is more detrimental because hostels are notoriously known to be on the cheaper side.

It’s great to have an idea of how to make your hostel business successful but, when you’re just starting, you need a detailed step-by-step process on how to bring your hostel to life in the first place.

Here is a step-by-step guide needed to start your hostel in 2022.

Define Your Dream Hostel

Defining your dream hostel is usually one of the first things that come to mind. You should have a mental picture of how you would like it to turn out.

It is necessary to spell out how you want your hostel to be. It makes the whole process feel less complicated.

One of the things it applies to is hostel aesthetics. This is basically how the hostel should look.

It must be inspired by what the audience would want. The internet is a great tool to utilize for this. Apps like Pinterest and even online travel agencies (OTAs) like TripAdvisor can help give you inspiration for your hostel design and overall aesthetic.

You can also try to find out what attracts people to your competitors’ hostels. This can be done by looking up the reviews of guests on their website.

Understand Basic Hostel Economics

Hostels have a pretty straightforward business model and once you understand it, it’s easy to manipulate it to your advantage.

Read more: Understanding the Hostel Business Model

For example, most people that use hostels are backpackers and students who are likely to be less financially buoyant and are looking for a place to crash. A smart hostel owner will attract this audience with affordable prices for the rooms and then offer extra add-on services that the guests may have not even thought about before.

These extra services. “The important point to understand here is that once you have the guests, you have the chance to sell them extra services. in all kinds of forms. This is key.”

‘What extra services can I provide?’ ‘How do I make them keep coming?’ These are questions you need to answer and remember to put yourself in your guest’s shoes and offer them truly useful services, not services fueled by greed but, by customer satisfaction.

Research The Market/ Local Competition

Finding out about your competition in that area is a great step. This ultimately helps you know what’s missing there, and how to step up.

Their qualities in terms of price, size, and general services should be looked at. This will help you know what to do to make your hostel stand out.

Read more: Hostel Room Layout Plan And Design Tips

Knowing what the properties in that area are made of, is what a market survey is about. It is a great trick to help our hostel business succeed.

You get to know what is missing. This aids you in making these services available and attracting more people.

You also need to find out what other properties are available in the location you have chosen. The hostel should be close to places people frequent.

‘Are there interesting places close by?’ ‘Will the distance between the hostel and bars or restaurants be convenient enough?’

Also, if you’re aiming for a girls' hostel, you should take note of certain spots. A hairdressing salon is an important place to look out for.

Needless to say, nobody wants to stay in a place with unappealing stores. So, you will have to consider the kind of establishments that are in that location.

Where Should You Open Your Hostel?

Picking an appropriate location for your hostel is essential. As great as a hostel may seem, it may not be successful in the wrong location.

Selecting a good location is preliminary. This is because it determines your budget, the cost of renting your hostel, and many more.

Essentially, your hostel should be close to places people frequent. It should be close to parks, recreational centers, restaurants, and even colleges.

The daily life of an average youth must be considered. Nobody wants to rent a hostel that isn’t convenient enough to perform day-to-day activities.

Secure Finances For Your Hostel

You need to save up enough money to reflect your already prepared budget. It should be nothing less than the amount you planned to spend.

There are many ways to raise capital for your hostel business. You could look for a partner that is willing to fund the business. Seeking investors is another alternative to secure finances for your hostel business. It’s easier to find investors if your business appears promising.

Read more: Tips On How To Write A Great Hostel Business Plan

Another way to secure finance for your hostel is by requesting a loan. There are a good number of banks ready to give out loans.

Hostel Start-Up Costs

You cannot successfully start a hostel business without having a realistic budget. You need to have an estimate of how much is needed to start it. This is addressed in full detail when you are writing your business plan.

On average, a student hostel business could cost about $19,815 to start with the minimum startup costs being as low as $100. If you’ve been reading this guide so far then you know the type of hostel you’re aiming for is most definitely going to cost you more than the minimum.

From equipment and supply expenses to staff salaries, advertising, and more, hostel start-up costs could cost a good amount. A good way hostels save up on excess management and operations costs is by leveraging technology and using all-in-one software to help them cut down costs.

How Do I Promote My Hostel?

Promoting your hostel isn’t a day’s job. The outcome is appealing, but the process can be tasking. Starting a business is one thing; Promoting the business is another.

You’ve opened your business, but how do you advance it? There are so many ways you can make this happen.

So, why don’t we take a brief look at ways that a hostel owner can promote his business:

Creating A Marketing Plan For Your Hostel

What kind of audience do you wish to attract? What kind of platform is best to advertise your hostel business?

It’s important to identify your target audience. Identifying your competition is important as well.

You should have marketing goals you want to achieve. Creating a marketing plan is the right step toward achieving these goals.

A market plan, as well as a business plan, must be created.

Maximizing Your Guests’ Experience

This is a very important way to promote your hostel business. Hostel visitors want exciting experiences to keep them coming back.

There should be bars, eateries, lounge areas, and other spots to let the load off. These are things that can heighten the guests’ experience.

Advertising Your Hostel

Advertising your hostel is so important. This is a technique that can never be overemphasized.

The world is digital now, and almost everyone has a social media account. Having an online presence is crucial.

The first thing you need is to take outstanding photos. Next, to advertise your vacation home rental, you need to take outstanding photos. The best route is to use a professional to capture the best features with the best lighting. For social media, engaging influencers can also be beneficial to getting the word out there.

On various platforms, when you upload your property, you’d have to write a property description. Now is the time to be creative and highlight what makes your property desirable. Also talk about the neighborhood, nearby facilities, and fun activities to do in the area.

Write the description with your guests in mind and sell the experience through your words. Some PMS like Booking Ninjas offers writing services when uploading your business on channels and it could be an option especially if you have multiple properties.

Hostels are some of the most common establishments we have today. They’re suitable to accommodate tourists, students, backpackers, and many more.

As common as they are, some hostels receive more patronage than others. It goes to show that they must be doing something right.

From growing your hostel bookings to advertising your hostel properly, certain software applications like Booking Ninjas Hostel PMS help to make starting and growing your hostel business a seamless process.

Hopefully, this article will help serve as a pathway for you to achieve a successful hostel business. You can now reach out to more people about your services. Starting a hostel business has never been this easy.

If you already have your hostel business in motion and are thinking of leveraging a hostel management system to grow your business, schedule a call with us today . We offer one of the top property management systems to help Hostel better manage and scale its business.

  • “ https://www.thebusinessplanshop.com/en/blog/how-to-open-a-hostel ”. The 9 Crucial Steps to Open a Hostel, Accessed 14 April 2022
  • “ https://bunkersbarcelona.com/how-to-open-a-hostel-from-scratch/ ”. How To Open A Hostel From Scratch (Step by Step), 23 July 2018, Accessed 14 April 2022
  • “ https://www.wikihow.com/Set-up-a-Hostel ”. How To Set Up A Hostel, 21 October 2021, Accessed 14 April 2022
  • “ https://www.xotels.com/en/hotel-management/how-to-open-your-dream-hostel-5-steps-to-succeed ”. Opening your Dream Hostel: the Simple 5-Step Plan for Success, Accessed 14 April 2022

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Private Hostel Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business Plans » Real Estate Sector

Do you want to start a private hostel and need to write a plan? If YES, here is a sample private hostel business plan template & FREE feasibility report.

If you are an investor or an aspiring entrepreneur with a real estate background and you are looking towards owning an investment portfolio in the real estate industry, we will recommend that you consider investing in building private hostels in strategic locations.

If you decide to build a private hostel in a college or a tourist community, you are sure of making huge returns from your investment. This is because there are loads of college students, campers and travelers who usually prefer lodging in hostel facilities as against hotels because of the affordability.

If you want to partake in this thriving industry, then you need to obtain all the necessary licenses and permits. The truth is that the market is still pretty much open for new investors to come in.

Although there are competitions at various levels in the industry, but if you are able to come up with a good business strategy, then you are sure of getting your own fair share of the market in the industry. Below is a sample private hostel company business plan template that will help you write yours with little or no stress.

A Sample Private Hostel Business Plan Template

1. industry overview.

A hostel whether private or public owned is a type of low-cost, short-term shared sociable lodging where guests can rent a bed, usually a bunk bed in a hall of residence, with shared facilities such as lounge, laundry and sometimes a kitchen.

Rooms in hostels can be mixed or single-sex and they have private or shared bathrooms. Private rooms may also be available, but the property must offer dormitories to be considered a hostel. Aside from campus and campground, hostels are popular forms of lodging for travelers, cycle tourists, and gap year travelers.

They are part of the sharing economy. Usually people prefer lodging or living in hostels because it is cheap especially compared to hotels and of course because of the opportunities to meet people from all over the world, find travel partners, and share travel ideas.

Interestingly, loads of hostels in the united states are locally owned and operated, and are often cheaper for both the operator and occupants than hotels. Hostels may offer long-term lodging to guests for free or at a discount in exchange for work as a receptionist or in housekeeping.

Statistics shows that there are approximately 10,000 hostels in Europe and approximately 300 hostels in the United States. The typical guest is between 16 and 34 years old.

Apart from shared kitchen facilities, some hostels have a restaurant and/or bar. Washing machines and clothes dryers are often provided for an additional fee. Hostels sometimes have entryways for storing gear. Most hostels offer lockers for safely storing valuables.

Some offer yoga studios, cinemas, rooftop clubs, and surf camps. Some bare-bones hostels do not provide linens. Some hostels may have a curfew and daytime lockouts, and some, albeit few, require occupants to do chores apart from washing and drying up after food preparation.

Private hostel business is part of the real estate industry and the Bureau of Labor Statistics (United States of America) projects 11.1 percent job growth for the real estate industry between 2012 and 2022, which is about as fast as average.

During that time, an additional 38,000 jobs will open up in the industry. Hence any private hostel construction company that is well equipped and positioned will sure rake in huge revenues from this industry within this period and of course the future is bright.

Some of the factors that encourage entrepreneurs to start their own private hostel business could be that the business is highly thriving and profitable business and an aspiring entrepreneur can successfully launch the business if they have a pool of cash.

Lastly, if you are going into the construction and management of private hostels, it is very important to be creative and to be able to use your ideas to meet the rapidly changing needs of the society when it comes to low-cost, short-term shared sociable lodging facilities.

2. Executive Summary

Golden Generation© Private Hostels, Inc. is a real estate development company that will major in the construction of private hostels for the college students, campers and travelers in and around Ohio State University, Columbus which happens to be the largest university in the US in terms of student enrollment.

Golden Generation© Private Hostels, Inc. is going to be a self-administered and a self-managed real estate investment trust (REIT).

We will engage in the construction of private hostels that will meet the needs of a wide range of clients. We will work towards becoming one of the largest private hostel construction companies in the United States of America with active presence in major cities.

As part of our plans to make our customers our number one priority and to become one of the leading private hostel construction companies in the United States of America, we have perfected plans to adopt international best practices. Golden Generation© Private Hostels, Inc. have overtime perfected plans that will help us to become a specialist in our area of business.

Golden Generation© Private Hostels, Inc. will at all times demonstrate her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible.

We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.

Golden Generation© Private Hostels, Inc. is owned by Eric Moore. Mr. Moore has a Degree in Civil Engineering. He is a property guru that has worked with top Real Estate Companies in the United States of America for many years prior to starting his own business.

Other investors with same investment ideology whose name cannot be mentioned here for obvious reasons are going to be part of the business.

3. Our Products and Services

Golden Generation© Private Hostels, Inc. is going to build different types of private hostels in and around campus communities in the United States. Our intention of starting our private hostel construction company is to favorably compete with leading players in the industry.

We are well prepared to make profits from the industry and we will do all that is permitted by the law in the United States to achieve our business goals. Our business offerings are listed below;

  • Construction of private hostel for a wide range of clients
  • Renting, selling and leasing private hostels
  • Real estate consultancy and advisory services

4. Our Mission and Vision Statement

  • Our vision is to become the ideal picture of private hostels in and around Columbus – Ohio and of course the United States.
  • Our mission of starting a private hostel construction business is to make available highly conducive low-cost, short-term shared sociable lodging facilities for college students, campers and travelers, and to become a national and international brand by building private hostels all across key cities in the United States

Our Business Structure

Our company’s structure is not entirely different from what is obtainable in the real estate industry. As a matter of priority, we have decided to create a structure that will allow for easy growth for all our employees and also, we have created platforms that will enable us attract some of the best hands in the industry.

We are quite aware that the success of any business lies in the foundation on which the business is built on, which is why we have decided to build our private hostel construction company on the right business foundation. We will ensure that we only hire people that are qualified, honest, hardworking, customer centric and are ready to work to help us build a prosperous business that will benefit all the stakeholders.

As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more depending how fast we meet our set target.

Golden Generation© Private Hostels, Inc. is fully aware of the modus operandi in the real estate industry, hence adequate provision and competitive packages have been prepared for independent real estate brokers. Our marketing department will be responsible for managing this aspect of our business structure. Below is the business structure we will build Golden Generation© Private Hostels, Inc. on;

  • Chief Executive Officer

Facility Manager

Real Estate Agents

5. Job Roles and Responsibilities

Chief Executive Officer – CEO (President):

  • Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results
  • Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
  • Responsible for fixing prices and signing business deals
  • Responsible for providing direction for the business
  • Responsible for signing checks and documents on behalf of the company
  • Responsible for overseeing the smooth running of HR and administrative tasks for the organization
  • Evaluates the success of the organization
  • Reports to the board
  • Supervising multi-disciplinary teams of staff including cleaning, maintenance, grounds and security
  • Ensuring that basic facilities, such as water and heating, are well-maintained
  • Managing budgets and ensuring cost-effectiveness
  • Allocating and managing space between buildings
  • Ensuring that facilities meet government regulations and environmental, health and security standards
  • Advising businesses on increasing energy efficiency and cost-effectiveness
  • Overseeing building projects, renovations or refurbishments
  • Helping businesses to relocate to new offices and to make decisions about leasing
  • In charge of leasing and renting out hostel rooms under our ‘to let list’
  • Responsible for handling, reporting on and evaluating the component systems of a building (electrical, fire, roofing and plumbing)
  • Keeps daily logs, including photographs taken during inspection
  • Document all customer contact and information
  • Represent the company in strategic meetings
  • Help increase sales and growth for the company
  • Responsible for preparing financial reports, budgets, and financial statements for the organization
  • Provides managers with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
  • Responsible for financial forecasting and risks analysis.
  • Performs cash management, general ledger accounting, and financial reporting for one or more properties.
  • Responsible for developing and managing financial systems and policies
  • Responsible for administering payrolls
  • Ensuring compliance with taxation legislation
  • Handles all financial transactions for the company
  • Serves as internal auditor for the company

6. SWOT Analysis

The fact that private hostel construction business is very rewarding does not mean that there are no challenges in the industry. Starting a private hostel construction business in the United States of America comes with its own fair share of challenges, you would have to abide by the law and also compete with loads of other investors in the real estate business.

In order to compete favorably in the real estate industry as a private hostel construction company we have been able to hire the services of tested and trusted business and HR consultant to help us conduct critical SWOT analysis for us.

We intend maximizing our strengths, explore all opportunities we will come across, properly manage our weakness and confront our threats. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Golden Generation© Private Hostels, Inc.;

Some of the strength that we will be bringing to the table in the real estate industry is our robust relations with property investment moguls in the United States of America. Our access to pool of college students, campers and travelers most especially bikers and cyclists who are willing to stay longer in private hostel facilities and also, we have a team of experts who have cut their teeth in the real estate industry.

Our commission structure and relationship with freelance real estate agents in Columbus – Ohio and other state in the US will also count towards our advantage.

As a newbie in the private hostel business, we might have some challenges competing with big time realtors and other private hostel construction companies that have been in the industry for many years; that perhaps is part of our weakness.

  • Opportunities:

The opportunities in the real estate industry especially as a private hostel construction company is massive considering the number of families that would want to own their own private hostel. We are well – positioned and ready to take advantage of any opportunity that comes our way.

Some of the threats that we are likely going to face as a private hostel construction company are unfavorable government policies , and global economic downturn; global economic downturn usually affects spending power and the real estate industry is known to encounter decline in sales and profits during this period.

7. MARKET ANALYSIS

  • Market Trends

Lodging for people who are out of station is a response to an extremely complex set of economic, social, and psychological impulses.

For example, some college students, campers and travelers most especially bikers and cyclists may choose to spend more on housing because they feel they can afford to, while others may not have a choice but to stick to low – cost private hostel as against expensive hotels.

Market forces, policy decisions, and demographic changes have converged, making it more difficult to increase private hostel for renters. In essence, most private hostel construction companies are targeting college students, campers and travelers most especially bikers and cyclists who are likely going to need such properties.

Another obvious trend that is common in the industry is that most of them are improvising on more means of making money in the real estate industry. As matter of fact they are also acting as property developers and home staging agents amongst many other functions that they are involved in.

The trend in this industry if you intend being ahead of your competitors is to have a restaurant and/or bar within your private hostel facility.

Washing machines and clothes dryers are often provided for an additional fee. Hostels sometimes have entryways for storing gear. Most hostels offer lockers for safely storing valuables. Some offer yoga studios, cinemas, rooftop clubs, and surf camps.

8. Our Target Market

As a private hostel construction company, our target market cuts across different classes of people. We are coming into the real estate industry with a business concept that will enable us work with a wide range of clients. We have put plans in place to recruit freelance agents (brokers) nationally to represent our business interest wherever we are located in the United States of America. Below are our target markets;

  • Short-gap travelers most especially bikers and cyclists et al

Our Competitive Advantage

The availability of competent and reliable real estate professionals under our payroll, our business process and of course our pricing model are part of our competitive advantage.

Another possible competitive strategy for winning our competitors in this particular industry is to build a robust clientele base, ensure that our private hostel designs are top notch and we have all the needed facilities that will appeal to our target market.

We have standard shared kitchen facilities, a restaurant and/or bar within our private hostel facility. Washing machines and clothes dryers will be available for an additional fee. We will also be offering lockers for safely storing valuables, yoga studios, cinemas, rooftop clubs, and surf camps.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and objectives. We will also engage freelance real estate brokers/agents on a commission level to help us market our services.

9. SALES AND MARKETING STRATEGY

  • Sources of Income

Golden Generation© Private Hostels, Inc. is established with the aim of maximizing profits in the private hostel industry. Although we are a private hostel construction company, but part of our work force are also licensed real estate agents hence we intend generating additional income from diverse means in the real estate agency.

We have successfully built a vibrant real estate network that covers the whole of the United States of America so as to help us build a profitable business. Below are the sources we intend exploring to generate income for Golden Generation© Private Hostels, Inc.;

  • Construction of private hostel for a wide range of clients (college students, campers and travelers most especially bikers and cyclists)
  • Renting, selling and leasing private hostel

10. Sales Forecast

It is a known fact that as long as there are college students, campers and travelers in the United States of America, there will always be need to for private hostel construction companies.

We are well positioned to take on the challenges that are synonymous to private hostel construction businesses in the United States, and we are quite optimistic that we will meet out set target of generating enough income/profits from the first month of operation and grow the business beyond Columbus – Ohio to other states in the United States of America within record time.

Below are the sales projections for Golden Generation© Private Hostels, Inc. it is based on the location of our business and the services we will be offering;

  • First Fiscal Year (FY1): $1.2 million
  • Second Fiscal Year (FY2): $3 million
  • Third Fiscal Year (FY3): $4.6 million

N.B : This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and any major competitor offering same services as we do within the locations where we have a strong business presence.

Please note that the above projection might be lower and at the same time it might be higher since some factors are beyond our control.

  • Marketing Strategy and Sales Strategy

We quite mindful of the fact that there are stiff competitions in the private hostel cum real estate market in the United States of America, hence we have been able to hire some of the best business developers to handle our sales and marketing department.

Our sales and marketing team will be recruited based on their vast experience in the industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall goal of the organization. The training is not restricted to only our full – time employees but also all our freelance brokers that are scattered all over the United States of America.

Our goal is to become one of the leading private hostel construction companies in the United States of America which is why we have mapped out strategies that will help us take advantage of the available market and grow to become a major force in the industry. Golden Generation© Private Hostels, Inc. is set to make use of the following marketing and sales strategies;

  • Introduce our private hostel construction company by sending introductory letters alongside your brochure to college students, campers and short-gap travelers throughout the city where our private hostel construction company is located.
  • Advertise on the internet on blogs and forums, and also on social media like Twitter, Facebook, LinkedIn to get our message across
  • Create a basic website for our business so as to give the business an online presence
  • Directly market our services
  • Join local private hostel construction business associations for industry trends and tips
  • Join local chambers of commerce and industry with the aim of marketing our services
  • Advertise our business in community based newspapers, local TV and radio stations
  • List our business on yellow pages’ ads (local directories)
  • Encourage the use of Word of mouth marketing (referrals)

11. Publicity and Advertising Strategy

We have been able to work with our consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market.

We are set to take the private hostel cum real estate industry by storm which is why we have made provisions for effective publicity and advertisement of our company. Below are the platforms we intend to leverage on to promote our private hostel construction business;

  • Place adverts on both print and electronic media platforms targeted towards college students and short – gap travelers
  • Sponsor relevant TV shows so as to be able to communicate our brand and what we do
  • Maximize our company’s website to promote our business
  • Leverage on the internet and social media platforms like; Instagram, Facebook, Twitter, LinkedIn, Google+ and other platforms (real estate online forums) to promote our business and list our hostels for rent.
  • Install our Billboards in strategic campus locations in and around Columbus – Ohio
  • Distribute our fliers and handbills in targeted campus and tourist areas from time to time
  • Attend landlord and residents association meetings with the aim of networking and introducing our business.
  • Ensure that all our workers wear our branded shirts and all our vehicles are well branded with our company’s logo et al.

12. Our Pricing Strategy

Part of our business strategy is to ensure that we work with the budget of our clients to help them meet their expectations.

Since we are not directly in control of the pricing system in the real estate industry, we can only abide by what is obtainable in the industry. But one thing is certain, our private hostel facilities will always be safe and preferred by lodgers.

  • Payment Options

At Golden Generation© Private Hostels, Inc. our payment policy is all inclusive because we are quite aware that different people prefer different payment options as it suits them but at the same time, we will not accept payment by cash because of the volume of cash that will be involved in most of our transactions.

Here are the payment options that Golden Generation© Private Hostels, Inc. will make available to her clients;

  • Payment by via bank transfer
  • Payment via online bank transfer
  • Payment via check
  • Payment via bank draft

In view of the above, we have chosen banking platforms that will help us achieve our plans without any hitches and we will also pay our freelance sales agents with same platforms.

13. Startup Expenditure (Budget)

From our market survey and feasibility studies, we have been able to come up with a detailed budget on achieving our aim of establishing a standard and highly competitive private hostel construction company in Columbus – Ohio and here are the key areas where we will spend our startup capital;

  • The total fee for incorporating the business in The United States of America – $750.
  • The budget for permits and license – $2,000
  • The cost for hiring business consultant – $2,500.
  • The cost for computer software apps (Accounting Software, Payroll Software, CRM Software, real estate software, and QuickBooks Pro et al) – $7,000
  • The budget for insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $5,400.
  • The cost for the construction of the first hostel facility in Columbus – Ohio – $1.5 million.
  • The cost for equipping our office (computers, printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al) – $150,000
  • Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500).
  • Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $100,000
  • The cost of launching our official Website – $600
  • Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – $5,000

Going by the report from the market research and feasibility studies conducted, we will need approximately 2.5 million dollars to successfully setup a small scale but standard private hostel construction company in the United States of America.

Generating Funds/Startup Capital for Golden Generation© Private Hostels, Inc.

Golden Generation© Private Hostels, Inc. is owned and managed by Eric Moore and other business partners. They are the financiers of the business which is why they decided to restrict the sourcing of the startup capital for the business to just three major sources.

  • Generate part of the startup capital from personal savings and sale of his stocks
  • Generate part of the startup capital from friends and other extended family members
  • Generate a larger chunk of the startup capital from the bank (loan facility).

N.B: We have been able to generate about $1 million (Personal savings $800,000 and soft loan from family members $200,000) and we are at the final stages of obtaining a loan facility of $1.5 million from our bank. All the papers and documents have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

14. Sustainability and Expansion Strategy

The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and business structure. If all these factors are missing from a company, then it won’t be too long before the business closes shop.

One of our major goals of starting Golden Generation© Private Hostels, Inc. is to build a business that will survive off its own cash flow without injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to rent/lease our private hostel facilities a little bit cheaper than what is obtainable in the market and we are prepared to survive on lower profit margin for a while.

Golden Generation© Private Hostels, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.

We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List/Milestone

  • Business Name Availability Check:>Completed
  • Business Incorporation: Completed
  • Opening of Corporate Bank Accounts: Completed
  • Opening Online Payment Platforms: Completed
  • Application and Obtaining Tax Payer’s ID: In Progress
  • Application for business license and permit: Completed
  • Purchase of Insurance for the Business: Completed
  • Construction of the first private hostel facility in Columbus – Ohio: In Progress
  • Conducting Feasibility Studies: Completed
  • Generating capital from the CEO / President and Business Partners: Completed
  • Applications for Loan from our Bankers: In Progress
  • Writing of Business Plan: Completed
  • Drafting of Employee’s Handbook: Completed
  • Drafting of Contract Documents and other relevant Legal Documents: In Progress
  • Design of The Company’s Logo: Completed
  • Printing of Promotional Materials: Completed
  • Recruitment of employees: In Progress
  • Purchase of the needed hostel furniture, office equipment, electronic appliances and kitchen and laundry equipment and gadgets: In progress
  • Creating Official Website for the Company: In Progress
  • Creating Awareness for the business (Business PR): In Progress
  • Health and Safety and Fire Safety Arrangement: In Progress
  • Establishing business relationship with key players in the industry (networking and membership of relevant real estate bodies): In Progress

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How To Write A Hostel Business Plan

MAY.08, 2023

Hostel Business Plan

1. Private Hostel Business Plan Sample and Template

A hostel business plan is an important document that outlines the strategy and objectives of how to open a hostel business plan. It provides the roadmap for business operations and financial projections. The plan should include the hostel’s budget, marketing plan, and operational plans. 

It should also include the hostel’s goals and objectives, including potential revenue sources and potential partnerships. A well-crafted Hotsel Business Plan will help ensure the business’s success.

2. Executive Summary

Business overview.

The business plan for building a private hostel outlines our vision to become a leader in the hostel industry by providing a safe and comfortable environment for travelers. We aim to provide a variety of lodging and services that enhance the traveler’s experience. Our services will include dorm-style rooms, private rooms, recreational areas, and an on-site café.

Similar to the Hotel Business Plan Sample , we plan to target backpackers, budget travelers, and other young professionals who are looking for a cost-effective place to stay. We will offer clean and comfortable rooms at competitive rates and will also offer additional amenities such as free Wi-Fi and laundry services. We will provide a safe and secure environment with on-site security personnel at all times.

We plan to build a strong reputation in the industry by offering excellent customer service and providing a unique atmosphere for our guests. We will also invest in marketing and advertising to increase our visibility and attract new customers. We believe that with our quality services, competitive price points, and customer-oriented business strategy, we will be successful in gaining a loyal customer base and gain a strong foothold in the hostel industry.

The business plan hostel example is a comprehensive strategy that seeks to provide a safe, comfortable, and homely environment for travelers at an affordable price. Our products and services include: 

  • Convenient and comfortable beds and bunk beds 
  • Fully equipped kitchen and dining area 
  • Clean and spacious bathrooms and showers 
  • High-speed Wi-Fi 
  • 24-hour reception desk 
  • Entertainment area with TV, exercise equipment, and ping pong table 
  • Laundry service 
  • Tour and excursion packages 
  • Free shuttle service to local attractions and airports 
  • Secure storage for luggage and personal items

Customer Focus

This sample of business plan for hostel business focuses on providing a comfortable and affordable travel experience for our customers, who are mainly young travelers looking for a safe and convenient place to stay. Compared to the Motel Business Plan , we will achieve this by offering various services, such as free Wi-Fi, laundry facilities, a well-stocked kitchen, and a friendly and knowledgeable staff that can provide helpful advice on local attractions. We aim to create a unique and enjoyable experience that will leave our customers satisfied, relaxed, and eager to return to our hostel.

Management Team

Our hostel business, The Adventurers Inn, is run by a team of experienced professionals in the hospitality industry. Our team consists of a General Manager, a Manager of Operations, a Sales and Marketing Manager, and a Financial Controller. Our team members have extensive knowledge in their respective fields and strive to provide our guests with the best possible experience. We are passionate about providing unique and quality services to our customers and are committed to being the best hostel business in the area. With our expertise and dedication to customer satisfaction, we believe The Adventurers Inn will be a successful and profitable venture.

Success Factors

The youth hostel business plan focuses on providing affordable, comfortable, and safe accommodations for travelers worldwide. We will differentiate ourselves from the competition by providing unique amenities and services that will make our hostel stand out by learning Hotel Feasibility Studies . Our success will be based on our ability to provide a superior customer experience, a convenient location, and a reliable and secure facility. We will also strive to create a unique, fun atmosphere that will attract and retain guests. Furthermore, we will focus on creating a strong online presence and utilizing digital marketing strategies to reach our target customers. By leveraging these strategies, we are confident that our hostel business will become a success.

Financial Highlights

The Adventurers Inn is a unique hostel concept that will provide travelers with an affordable and comfortable place to stay while exploring the city. With this business plan, we are seeking $500,000 in capital to create our first hostel in the city’s heart. 

  • Projected sales of $1.6 million in Year 3 
  • Gross profit margins of 70% 
  • 10% of profits reinvested into hostel growth 
  • Year 1 ROI of 17.3% 
  • Year 3 ROI of 29.1%

Hostel Business Plan Proforma Financial Projections

3. Company Overview

Who is the adventurers inn hostel, highly efficient service.

Highly Efficient Service! I am incredibly happy with the outcome; Alex and his team are highly efficient professionals with a diverse bank of knowledge.

The Adventurers Inn Hostel is a modern hostel located in Florida, offering both short and long-term accommodations for travelers. We aim to provide a safe, welcoming, and affordable place for travelers from all walks of life while creating a unique atmosphere to explore the city and meet other travelers.

Our hostel is run by a team of experienced professionals with a combined experience of over 30 years in the hospitality industry. We are passionate about creating an environment conducive to a great experience for all our guests.

At the Adventurers Inn Hostel, we offer our guests a full range of amenities, including a fully-stocked kitchen, laundry facilities, and a common area. We also have a 24-hour front desk, where our helpful staff can assist with any queries or questions.

Our hostel is also designed to be a hub for travelers and local residents alike. We provide a space for travelers to meet and share their experiences and a place for local businesses to promote their services and products.

The Adventurers Inn Hostel is committed to providing an exceptional experience for our guests. Our goal is to create a place where travelers can explore the city while feeling at home and making lifelong memories with their newfound friends.

The Adventurers Inn Hostel History

The Adventurers Inn Hostel was founded by two close friends, David and Sarah, who wanted to create a unique accommodation experience for travelers. The two were inspired by their travels worldwide and wanted to create a place where travelers could feel at home and make new friends.

David and Sarah opened the first Adventurers Inn Hostel in 2017 in a charming Victorian building in the heart of Florida. The hostel quickly became a popular spot for travelers, offering a unique and homey atmosphere in addition to free Wi-Fi, private rooms, and shared spaces.

Since then, the Adventurers Inn Hostel has grown to have multiple locations in the United States and Canada. Each hostel offers a unique experience, from cozy rooms to vibrant common spaces and activities like barbecues and movie nights. The Adventurers Inn Hostel is dedicated to providing a comfortable and memorable stay for all its guests.

David and Sarah have been working hard to ensure that each location maintains its unique character but also offers consistent service and amenities. The Adventurers Inn Hostel is dedicated to providing travelers with a unique and memorable experience, and the team is passionate about creating a welcoming and safe atmosphere for everyone.

4. Industry Analysis

The hostel industry is an ever-growing and profitable industry. The global hostels market size will grow from $6.04 billion in 2022 to $6.35 billion in 2023 at a compound annual growth rate (CAGR) of 5.2%.  This growth is driven by the increasing popularity of budget travel and the growing number of young people who are looking for affordable accommodation options.

Source: https://www.thebusinessresearchcompany.com/report/hostels-global-market-report

The hostel industry is highly competitive, with several large companies such as Hostelworld, Hostelling International, and YHA dominating the market. To succeed in this industry, businesses must provide quality services, competitive prices, and a great customer experience.

It is important to analyze the industry trends to understand the current market dynamics. The most important trend in the hostel industry is the increasing demand for private rooms. This trend is driven by the growing number of travelers looking for more privacy and comfort during their travels. Additionally, hostels are increasingly catering to business travelers by providing amenities such as Wi-Fi and in-room dining services.

It is important to understand the target market to gain a competitive edge in the market. The hostel industry is primarily focused on the budget traveler market, with most guests between the ages of 18-35. Additionally, there has been a rise in the number of families using hostels to accommodate their travel needs.

Finally, it is important to consider the impact of technology on the hostel industry. Hostels are increasingly using online technologies to facilitate bookings and improve customer experience. Additionally, social media is becoming an important tool for hostels to build brand awareness and reach out to potential customers.

Ultimately, the hostel industry is growing and profitable. To succeed in this market, businesses must focus on providing quality services, competitive prices, and a great customer experience. Additionally, understanding the target market and utilizing technology will help businesses gain a competitive edge.

5. Customer Analysis

Demographic profile of target market.

The target market for how to start a hostel in the USA includes budget-minded travelers seeking affordable accommodations. These travelers are typically younger adults aged 18-40, with a median age of 25-30. The demographic profile of the target market includes the following: 

  • Predominantly singles or couples
  • Predominantly from the United States and Europe
  • Predominantly college-educated
  • Predominantly students, interns, digital nomads, backpackers, and other budget travelers
  • Predominantly seeking a short-term stay of less than one week
  • Predominantly seeking basic, shared accommodations with access to local amenities

Customer Segmentation

  • Backpackers and Adventurers : This segment consists of people who are looking for the adventure of staying in a hostel and who are willing to pay for the experience. This group of customers tends to be young travelers and usually has limited budgets. They enjoy exploring new places and are usually looking for a place to stay that offers a unique, exciting experience. 
  • Budget Travelers: This segment includes people who are looking to save money when traveling. They tend to be more cost-conscious and prefer to stay in a hostel due to the lower cost. They are often seeking a place to stay that offers basic amenities and services at an affordable price.
  • Business Travelers: This segment includes those traveling for work and needing to stay in a hostel due to the lower cost. They tend to be looking for a place to stay that offers basic amenities but also has more modern amenities such as Wi-Fi and laundry services.
  • Families: This segment includes families who are looking for a place to stay that is both affordable and family-friendly. They may be looking for a hostel that offers private family rooms and amenities such as a playground or a pool. 
  • Groups: This segment includes groups of friends or families looking to stay together in one location. They usually seek a hostel that offers private rooms or large dorms to accommodate their group.

6. Competitive Analysis

A competitive analysis allows an entrepreneur to assess their potential competitors’ strengths and weaknesses and understand the market they are entering. The following is a brief competitive analysis of the hostel business plan.

Direct and Indirect Competitors

Direct Competitors

  • Hostels.com: Hostels.com is a top hostel booking website that offers competitive prices on a wide range of hostels in various locations worldwide. They offer budget-friendly rates with access to amenities like free Wi-Fi, kitchenettes, and bike rentals.
  • Airbnb: Airbnb is an online platform that allows travelers to find short-term accommodations in various locations worldwide. They offer a variety of different types of accommodations, including private rooms and entire homes.
  • Hostelworld: Hostelworld is an online booking platform for hostels in over 170 countries. They offer many amenities, such as free Wi-Fi, bike rentals, and kitchenettes.
  • HostelBookers: HostelBookers is an online booking platform for hostels in over 170 countries. 

Indirect Competitors

  • Hotels: Hotels offer a wide range of accommodations in various locations worldwide. They offer amenities such as swimming pools, fitness centers, and spas.
  • Bed and Breakfasts: Bed and breakfasts offer a more intimate, home-like experience than a hotel. They are often located in quaint, rural areas and offer amenities such as home-cooked meals and access to outdoor activities.
  • Guest Houses: Guest houses are typically smaller than hotels and offer a more personal experience. They offer free Wi-Fi, private bathrooms, and access to local activities.
  • Vacation Rentals: Vacation rentals are typically private homes that are available for short-term rental. They offer amenities such as private pools, hot tubs, and access to beaches and other outdoor activities.

Competitive Advantage

The competitive advantage of our hostel business plan is that it provides a unique and affordable accommodation experience for domestic and international travelers and you can start your own hostel by taking help from this business plan. It will offer a unique atmosphere of comfort and relaxation that is not found in other hostels or hotels. It will also offer a variety of amenities and services, such as free Wi-Fi, cable TV, and laundry facilities. Additionally, it will feature an on-site restaurant and bar, providing an opportunity to socialize with other travelers and make the most of their visit. It will also be conveniently located in a major city, providing easy access to all the city’s attractions and activities. Finally, our hostel will provide excellent value for its price, offering more amenities and services than other hostels in the area.

7. Marketing Plan

The marketing plan of a hostel should focus on its competitive advantages, such as its convenient location, affordable prices, and unique amenities. To ensure that potential guests are aware of these advantages, the hostel should employ various promotional tactics to reach them. These tactics should include online advertising, direct mail, and local advertising.

  • Online Advertising: Online advertising is a great way to reach a wide range of potential guests. The hostel should advertise on websites that cater to the type of guests they are targeting. This could include travel websites, student websites, and budget-travel websites. Additionally, the hostel should create its own website and social media accounts to reach potential guests. All accounts should be regularly updated with promotions, discounts, and new amenities.
  • Direct Mail: Direct mail is another great way to reach potential guests. The hostel should create a mailer that contains information about the hostel and its advantages. The mailer should include photos, contact information, and a call to action. The hostel should target students, budget travelers, and other potential guests in their area with their mailers.
  • Local Advertising: Local advertising is important for reaching potential guests in the immediate area. The hostel should create flyers, distribute them to local businesses, and create ads in local publications. Additionally, the hostel should create relationships with local businesses to promote their offerings. These businesses could include restaurants, attractions, and transportation options.

Promotions Strategy

Social Media: Utilize social media platforms such as Facebook, Instagram, and Twitter to promote the hostel. Post engaging content, such as pictures and videos of the hostel and its amenities, as well as discounts and special offers. Utilize influencers to reach a wider audience and create a buzz around the hostel.

Advertising: Create ads in newspapers, magazines, and online to reach potential customers. Focus on targeting young adults who are seeking a unique and affordable accommodation option.

Events: Plan events such as art shows, movie nights, or music festivals to draw in more customers. Partner with local businesses to provide discounts to hostel guests.

Referral Program: Create a referral program to incentivize existing customers to spread the word about the hostel. Offer rewards such as discounts or free stays for referring friends and family.

Word-of-Mouth: Encourage customers to share their experiences at the hostel with their friends and family. To do this, provide an exceptional experience to ensure customers are excited to share their positive experiences.

The pricing strategy for the hostel should be competitive and value-oriented in how to start and manage a hostel business. Offer discounts for extended stays, group bookings, students, and other categories of guests. Consider offering membership discounts to encourage loyalty and reward frequent customers. Additionally, consider offering package deals that include meals, tours, and transportation. This will help draw in more customers looking for an all-inclusive experience.

8. Operations Plan

Operation functions.

Maintenance: The hostel will have a dedicated maintenance team responsible for the upkeep of the facility. This includes regular inspections of the hostel’s interior and exterior, addressing any maintenance issues such as plumbing, electrical, and structural repairs, and general cleaning.

Security: The hostel will have a security team in place to ensure the safety of guests and staff. This includes installing a CCTV system, regular patrols of the premises, and enforcing security guidelines.

Guest Services: The hostel will have a team of staff dedicated to providing excellent customer service. This includes managing bookings and reservations, processing payments, and providing any necessary information about the hostel and the local area.

Food Services: The hostel will also have a food services team responsible for preparing and serving meals to guests. This includes purchasing food supplies, preparing meals, and cleaning up after meals.

3/15/202X – Develop a comprehensive business plan

3/22/202X – Research current market conditions and industry trends 

4/1/202X – Secure a suitable location  

4/8/202X – Recruit and hire a management team

4/15/202X –Acquire necessary licenses, permits, and insurance

4/22/202X – Purchase furniture and equipment

5/1/202X – Market and advertise the hostel

5/8/202X – Open for business 

5/15/202X – Launch Third Product Line

5/22/202X – Monitor performance and adjust operations as needed

Licensing organization in the Hostel Business industry: https://www.sba.gov/business-guide/launch-your-business/apply-licenses-permits

9. Management Team 

The hostel business plan’s management team comprises individuals with backgrounds in hospitality, tourism, and business.

  • The Hostel Manager: The Hostel Manager is responsible for the day-to-day operations of the hostel. They will be responsible for managing the staff and providing customer service to the guests. They will also oversee the hostel’s marketing, advertising, and budgeting.
  • The Operations Manager: The Operations Manager ensures that the hostel runs efficiently. They will be in charge of the facility maintenance and housekeeping staff, as well as ensuring that all necessary supplies and equipment are stocked and readily available.
  • The Marketing and Advertising Manager: The Marketing and Advertising Manager will create and implement marketing and advertising campaigns for the hostel. They will also be responsible for developing relationships with travel agents and tour operators to increase occupancy rates.
  • The Financial Manager: The Financial Manager is responsible for the financial health of the hostel. They will be in charge of bookkeeping, budgeting, and financial analysis. They will also be responsible for setting up payment processing systems and managing accounts receivable.
  • The Sales Manager: The Sales Manager will be responsible for developing relationships with tour operators, travel agents, and other companies in order to increase occupancy rates. They will also be responsible for creating and managing sales campaigns and promotions.

10. Financial Plan

Startup Costs: The estimated startup costs for the hostel business are estimated to be $200,000. This includes the cost of purchasing the building, renovations, furnishings, and other miscellaneous expenses.

Fixed Costs: The fixed costs for the hostel business include rent, utilities, insurance, staff wages, and other miscellaneous expenses. These costs are estimated to be $25,000 per month.

Variable Costs: The variable costs for the hostel business include food, beverages, and supplies. These costs are estimated to be $2,000 per month.

Key Revenue & Costs

Key Revenue

  • Room rentals: $30,000/month
  • Food and beverage sales: $10,000/month
  • Miscellaneous services: $10,000/month
  • Rent: $10,000/month
  • Utilities: $5,000/month
  • Insurance: $2,000/month
  • Staff wages: $6,000/month
  • Miscellaneous expenses: $2,000/month

Variable Costs

  • Food: $1,000/month
  • Beverages: $500/month
  • Supplies: $500/month

Funding Requirements and Use of Funds

Funding Requirements 

  • $250,000 for the purchase of the building and land 
  • $200,000 for renovations and repairs to the building 
  • $50,000 for furnishings, fixtures, and equipment
  • $50,000 for business start-up costs 
  • $100,000 for working capital

Use of Funds

  • Purchase of the building and land 
  • Renovations and repairs to the building 
  • Furnishings, fixtures and equipment 
  • Business start-up costs 
  • Marketing, advertising and promotion 
  • Payroll expenses 
  • Technology infrastructure 
  • Legal and accounting fees 
  • Working capital

Key Assumptions

Target market size: 5 million college and university students 

Starting occupancy rate: 40% 

Room rental rate: $30/night 

Market occupancy rate: 60% 

Annual capital expenditures: $100,000 

The average growth rate of the target market: 2% 

The number of hostel rooms: 100 

Total operating expenses: $200,000 

Average personnel costs: $50,000 

Average marketing costs: $20,000

Financial Projections

All tables in Hostel Business Plan PDF .

11. Unlock the Keys to Your Hostel’s Success: Let OGS Show You the Way!

The OGS Capital team is highly experienced when it comes to helping entrepreneurs and business owners launch their dream hostel. 

Our team has years of experience in the hospitality industry, and we are experts in designing and executing hostel business plans tailored to each client’s needs. We understand the unique challenges of the hostel industry and can create a comprehensive plan that includes everything from market analysis and financial planning to marketing and operations. 

Our experience ensures that your hostel will have the best chance of success. We can provide the guidance you need to make sure your hostel is profitable and successful. 

So if you’re looking to start a hostel, don’t hesitate to contact us today for a free consultation, and find out how much it costs to start a hostel with OGS Capital.

Is it profitable to run a hostel? 

Yes, it can be profitable to run a hostel. Hostels can offer travelers budget-friendly accommodations and can be highly profitable if managed correctly. Many hostels have found success by offering amenities like free Wi-Fi, complimentary breakfast, and organized activities for guests. Additionally, hostels can benefit from leveraging social media to promote their business and attract customers.

What makes a hostel successful?

Successful hostels provide a unique combination of a comfortable and clean atmosphere, friendly staff, and a great range of amenities and activities that appeal to guests. They offer a convenient and affordable accommodation option, as well as a community atmosphere that encourages guests to socialize and explore the area. Successful hostels are usually well-equipped with modern amenities, such as free Wi-Fi, laundry facilities, and a shared kitchen and lounge area. They often provide activities and events that help guests to connect with each other and the local culture. They also have a variety of room types, from private rooms to shared dorms, to accommodate different budgets and expectations. In addition, successful hostels typically have a helpful and friendly staff that can provide information and advice on local attractions, transportation, and other services, as well as answer any questions guests may have.

Download Hostel Business Plan Sample in PDF

OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.

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How to create a financial forecast for your hostel

financial forecast for a hostel

So you've decided to open a hostel. It's exciting, but before launching, you need to get a realistic idea of how profitable your business will be.

From calculating your estimated turnover to adding up the investments and operation costs, creating a financial forecast for a hostel gives you the opportunity to see what your first three years of operation will look like - and how much they'll set you back.

If the thought of putting together a financial forecast for a hostel feels overwhelming, don't worry - the guide below sets out the exact procedure to follow to create as realistic and clear a financial forecast as possible.

Whether you're starting up or are already operating a hostel, these tips are essential for the development of your business.

1. Why make a financial forecast for a hostel?

A financial forecast makes you look at your business in detail - from income, to operating costs and investments, to evaluate its expected profitability and identify any gaps where you'll need funding. 

If you're setting up a brand new hostel company, the financial forecast should be created with the first three years of operation in mind. If you own a hostel that's already up and running, we advise that you update it at least once a year. 

Before crunching the numbers, however, you need to gather all the data necessary to create your financial forecast. 

2. What information is needed to draw up a financial forecast?

If you're setting up a business from scratch, market research is an essential step in enabling you to gain a deeper understanding of the dynamics of the area in which your business is based, as well as providing the information needed to estimate your turnover. 

You'll then focus on the criteria that determine your target market:

  • Who stays in hostels?
  • What is the average budget of a hostel customer?
  • How many times per year do customers stay in hostels and what is the average length of stay?
  • Are there any rival travel accommodation businesses in the area?

Answering these questions will give you the ability to assess the level of demand in your area and choose the best location for your hostel. 

If you're new to the hostel business, it may be an idea to get in touch with managers of other hostels in the area to get an insider's perspective on the seasonality and types of customers you can expect to welcome, as well as the average turnover and occupancy rate of other hostels. 

Finding out more about your potential customers via market research will help you then conjure up a robust marketing plan to reel them in, enabling you to get your hostel's name out there amongst the local community. 

The financial forecast for a hostel should also include a marketing budget so that you can rely not only on word of mouth but also on effective communication strategies such as setting up a website or paying for a billboard ad. 

You will also need staff to welcome guests and entertain guests, as well as and providing a room turnover service. 

To accurately assess how much money you'll need to put aside for recruiting staff, ask yourself: 

  • Based on its daily hours of operation, how people will be needed to supervise the reception desk?
  • Will you need staff to man the bar?
  • Will you be doing the cleaning and maintenance yourself?
  • What type of people are you looking for and how much are you willing to pay?

Finally, you'll need to list your operating costs and estimate them by requesting quotes from suppliers.

3. The sales forecast for a hostel

When creating the financial forecast for a hostel, the very first thing you should do is set out a sales forecast. 

Add up your total number of dormitories and beds, using the information obtained during your market research to estimate each dormitory's occupancy rate.

It's up to you to find the right pricing strategy to maximize your occupancy rate and income per bed in both peak and off-peak periods.

4. The overhead costs required to set up your hostel

Overheads are both the staff and operational requirements needed to keep the hostel running on a day-to-day basis.

To calculate your overheads accurately, you'll need to consider the following costs:

  • upkeep and maintenance of the premises
  • marketing budget 
  • employees and their salaries 

A little advice - even if it means overestimating your costs, it's better to take a conservative approach here, as it will prevent you from ending up with a cashflow problem from being too optimistic. 

Your suppliers and their quotes are your allies in quantifying each expense accurately. 

5. What investments are needed for a hostel?

A hostel requires considerable investment when it opens, and it's vital that you ensure they're all included within your budget estimate. 

This includes, for example, the deposit for your premises, as well as the furniture you'll need for the dormitories, toilet facilities, and bar/lounge area.

The total amount will, of course, depend on the size of your hostel and where it's based. Also, keep in mind that the hostel must comply with the health and safety regulations imposed on all public spaces (including concerning fire safety and disabled access). If after an assessment the premises isn't up to standard, you may need to set aside some money for renovation work.

You also want your visitors to leave with fond memories of your hostel, so ensure you provide them with all the credentials (from USB sockets near the bed, to secure lockers and a laundry room) of an enjoyable and blissful stay. 

6. Tables that define the financial forecast for a hostel

At this stage, you now have all the information needed to set up the tables that summarise your financial forecast.

These tables will not only help you to get a clear vision of your forecast, but they will also be essential in helping you present your project to a bank to obtain financing. 

The profit & loss statement

This profit and loss statement allows you to observe the growth and profitability expected for your hostel over its first three years of operation.

hostel P&L forecast

The projected balance sheet

This table gives you a vision of the company's assets - in other words, what it owns and what it owes to its creditors from year to year.

balance sheet hostel

The projected cash flow statement

The projected cash flow statement shows you the breakdown of the hostel's cash flow, and allows you to assess whether the hostel will have sufficient cash flow to repay its loans and finance the development of the business as time goes on.

hostel projected cash flow statement

7. Which tool should you use to create a financial forecast?

As you can see, your hostel budget is an integral part of your project, so you need to make sure it's as accurate as possible. 

This technical step, however, can be complicated, which is why we’re presenting you with a range of solutions that will help you along the way.

Using a spreadsheet

Using a spreadsheet program such as Excel or Google Sheets is a very inexpensive way of creating a financial forecast, which makes this solution appealing at first glance. 

However, without any knowledge of accounting and financial modeling, it's easy to make mistakes with a spreadsheet program - so it's a solution better suited to those with accounting experience. 

Calling in a chartered accountant or consultant

Accountants and consultants are professionals when it comes to creating financial forecasts, so you can rest assured that you'll be in good hands. 

Make sure, however, you choose a professional with experience in the hostel sector, so they can undertake as accurate an analysis as possible when it comes to the figures - especially the assumptions made around occupancy rate and income per bed. 

The only disadvantage of this solution is its cost. We estimate that for a simple financial forecast over 3 years (including a balance sheet, income statement, and cash flow statement) calling on professional help will set you back around £700 or $1,000 (excluding VAT).

If you'd like to enlist a professional business plan writer to put together the editorial part and forecast, this is likely to cost around £1,500 or $2,000.

Using online software 

The final solution available to you is to use online budgeting software .

This offers you the following advantages:

  • You can easily make your financial projections, letting the software take care of the calculations
  • You have access to complete financial forecast templates
  • You get a complete financial forecast ready to be sent to your bank

If you are interested in this type of solution, you can try our forecasting software for free by signing up here .

8. Be inspired by our financial forecast template

Whether you are just starting out or already have your own business, we have created a business plan template of a hostel to help you identify the main costs and understand the approach to take to estimate its turnover. 

The business plan is the essential document for seeing your business idea through to the end. It contains both the financial forecast and a written part that presents, in detail, your project, the team, your business strategy, and your medium-term objectives. You'll show this document to potential investors in the hopes they'll financially support your venture - so needs to be impeccable and convincing. 

If you're not sure where to start, our business plan template for a hostel will help you along the way. You can download it in Word or PDF format,  or by loading it directly into our software to adapt it to your project.

We hope that this article helped you to see more clearly what needs to be done to create the financial forecast for a hostel. Don't hesitate to contact us if you have any questions! 

Also on The Business Plan Shop

  • How to open a hostel in 8 crucial steps
  • How to write the business plan for a hostel
  • How to take over an auto repair shop

Think this article could be of interest to someone you know? Share it with just one click!

Guillaume Le Brouster

Founder & CEO at The Business Plan Shop Ltd

Guillaume Le Brouster is a seasoned entrepreneur and financier.

Guillaume has been an entrepreneur for more than a decade and has first-hand experience of starting, running, and growing a successful business.

Prior to being a business owner, Guillaume worked in investment banking and private equity, where he spent most of his time creating complex financial forecasts, writing business plans, and analysing financial statements to make financing and investment decisions.

Guillaume holds a Master's Degree in Finance from ESCP Business School and a Bachelor of Science in Business & Management from Paris Dauphine University.

Page last updated on 12 Sep 2023 , as per our editorial standards (originally published on 17 Feb 2021 ).

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Hotel Business Plan

Hotel business plan by xotels. Step by step guide on how to write a hotel business plan.

OK, so you have decided to realize your dream and open your own hotel . You have thought out an amazing concept delivering unparalleled guest service. The next step would be to write a hotel business plan. It’s like a road map to the opening. However, as a seasoned Hotel Management Company , we have seen that this is where most entrepreneurs get stuck.

Why? Many do not have the time and don’t know what to write or how to do the financials. But until you finish your business plan, you will not be able to get the financing either. So you end up with ideas sitting in your head not realizing your dream.

Really it is not that difficult to make a good hotel business plan. It is merely a structured summary of your idea. Most people try to include everything about their hotel concept in the plan. This leads to an indigestible super novel-like bookwork, aka a mess.

The key is, knowing what to include, and what not to include in your hotel business plan. Create a clear road map for success. Excite investors rather than bore them to death like most business plans full of redundant information do. And you need to lead readers down the exact path you want.

One of the main challenges for example is that after reading the first page most businesses often don’t fully understand what the hotel is all about. For investors and lenders, it is crucial they can quickly comprehend your plan, without reading the whole document.

hotel business plan 2

Hotels 101: The Basics of Business Planning

We have put together a hotel business plan template to help you on your way. Check out our approach based on 10 critical points, being:

  • Executive Summary
  • Company Analysis
  • Industry Analysis
  • Customer Analysis
  • Competitive Analysis
  • Strategic Plan
  • Operations Plan
  • Management Team
  • Financial Plan
  • Key Milestones

Which are the Steps for a Hotel Business Plan?

Let’s dive into the step-by-step checklist of what your hotel business plan should look like.

These are the steps to developing your own hotel business plan. See which steps to follow to write your own hotel business plan.

Infographic by Xotels

1. Executive Summary

This first part should consist of two main parts, being:

  • Mission Statement (Introduction): a 1 line company description only the essence of your hotel (not 2 lines or a paragraph). It explains why you are in business or which huge need you are solving, that currently is not being met. For example in the case of Qbic Hotels “Moving modular hotels into under-utilized real-estate to reduce build-out cost and time.” 
  • Objectives : What do you hope to accomplish (i.e. “Reach an annual occupancy of 90%”).

 2. Company Analysis

More detailed information on the USPs (unique selling points) of your hotel concept.

hotel business plan 3

3. Industry Analysis

Information on the current industry trends and the current state of the market and how this will impact your hotel. This is needed as investors want to be sure you really understand the hotel industry. This acts as the foundation on which decisions such as trends and developments to follow will be based.  

Streamline Your Hotel Operations

We guide hotels and resorts toward unparalleled success, positioning them as market leaders.

business plan for hostel pdf

4. Customer Analysis

In-depth information on your target market, including geographic, demographic, socioeconomic, psychographic, and behavioural segmentation details. It can also help you to keep up to date with the latest hotel marketing trends to understand which are the types of guests who will be staying at your hotel. Explain which features will be meeting the needs and wants of these main segments when thinking of:

Basically, how will consumers answer this question ‘Why my hotel?’

Aim to break it up to the point value can be easily communicated (do not make it too overcomplicated). Think of the following examples:

  • Psychographics: interests, lifestyles, personality, values, opinions, and attitudes
  • Behavioural segmentation: purchasing behaviour, level of engagement, customer loyalty
  • Demographics: gender, age, marital status and education
  • Geographics: location (country, state, region, city)
  • Socio-economics

Any of the above examples of hotel segmentation can, if described well, be of great value to your business plan. An example of this could be a hotel located in a beach town, where you should be able to describe how demographics and psychographics differ from summer to winter time. Especially, since this example is typically known for lower demand in winter which you could be compensating for with the right hotel marketing strategies on hand.

business plan for hostel pdf

5. Competitive Analysis

A study of your local competition or global concept competitors, with each of their strengths, weaknesses, occupancy rates and market share ( SWOT analysis ). And don’t forget the most important part; what differentiates you from them. What makes you stand out?

Ask yourself: “can I add value to a specific area”, especially when it comes to hotel-dense areas like city centres or major destinations.

6. Strategic Plan

This exists of 3 parts:

  • Marketing : How exactly will you attract customers/guests? How will you position yourself? What will your message be to the different segments of your business mix? How will your direct marketing work? What will be the plan for your hotel website, SEO, SEM and SMM? Will you do offline promotion? In short, your hotel marketing strategy should cover everything there is to know about how to market your hotel.
  • Distribution : Which 3rd party channels will you use and how will you manage availability? What technology will you need?
  • Revenue management : What pricing and yield techniques will you use? What will your payment and cancellation policies be? Which room types will you be selling, and how will they be individually marketed? How many revenue scenarios will I create? Where can I compensate income/demand streams when necessary?

Make sure you have the capabilities to plan out a strong marketing, distribution and revenue management strategy. 

Things get complicated rather fast, and choosing to outsource hotel and revenue management is likely to give you a strategic advantage, during the planning phase, and the execution of your business plans.

7. Operations Plan

How will you run your hotel? Think of the following elements:

  • How many staff and supervisors will you need? 
  • What are their job descriptions/responsibilities? 
  • What background and experience should they have? 
  • When should they start? 
  • What are your service standards?
  • Will you develop manuals?
  • Which supplier will you use?
  • How will you manage inventory?

8. Management Team

Include the bios of your team. Focus on what uniquely qualifies you to make your hotel such a success. Having a great team is the key to success , and stakeholders will be impressed with a thorough explanation of the added value everyone brings to the table.

9. Financial Plan

Provide the start-up costs of the hotel (capital investment), the ongoing business costs, operational expenses and revenue projections for the next five years. These figures should be always based on your Hotel Feasibility Study . The KPIs to look at include expected occupancy, ADR (Average Daily Rate) and RevPAR (Revenue per Available Room).

If you are raising money , outline how much funding will be needed and when. Explain how you will generate a return on investment for investors, or when lenders will be paid back.

10. Key Milestones

These are the most important achievements which once they have been completed, will make your hotel more likely to succeed. Think off:

  • Location selection
  • Permits & Licenses
  • Build-out / Construction of the Hotel
  • Staffing and Training
  • GOP Break-even
  • NOI Break-even

Each time one of the key milestones is achieved, the risk of lenders or investors decreases . And once your last key milestone is reached, the chance of success is more or less guaranteed.

11. Appendix

Provide any other relevant information here. Don’t clutter the main sections of your hotel business plan with too many details. Rather support them with attachments in this part.

business plan for hostel pdf

Putting Your Plan into Action

Many people have great business ideas. But that really doesn’t matter. The difference between dreamers and entrepreneurs is the action mindset. Are you ready to ship your idea to the market? 

The first step is to put your ideas on paper. I hope this free sample will help you write a persuasive hotel business plan. Because no investor or lender will be interested if you cannot present a clear plan.

Follow your dreams and go for it!

Need help to Develop and Manage your Hotel Concept?

Our hotel consultants at XOTELS have helped hundreds of hotels to develop and optimize their businesses. 

With cost-effective implementations and best practices developed over years of experience, successful business as a boutique hotel , resort, B&B, aparthotel, hostel, or any other lodging concept for that matter, is guaranteed.

Hope this template has helped you get inspired to start your own hotel business .

Best of luck in your endeavours!

Patrick Landman

PS. Get in touch with us if you need help developing and managing your hotel concept.

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Student Hostel Guide

How Do I Develop a Hostel Business Plan?

Developing a comprehensive and profitable hostel business plan needs a full range of knowledge about hostel business and needs different skills to build a good hostel business plan.

A hostel business is very profitable and you can start it with low investment by acquiring a small building for rent.  But before acquiring a building for rent, you need to conduct a short survey to determine the potential of the area and how many educational institutions are around the location.

Hostel Business Plan

There are mainly two options to start a hostel business. 1 acquires a building for hostel business or 2 construction of the new building with own investment or loans from other financial institutions. Awesome Hostel Life Quotes

What To Do Before Starting a Hostel Business?

Indeed, initially, you need to conduct a business potential survey to determine the business potential in the said area.  If there are many educational institutions that exist or students from surrounding areas are getting admissions to these institutions, then there is a huge hostel business potential.

Points should be Kept in Mind before starting a hostel business:  

Students flow: student flow from other areas is very essential for hostel business; you need to attract them to choose your hostel.   However, it is not an easy job initially time, you need to be consistent and think for a long period of time.

Your hostel services, management behavior, safety and security, health, and hygiene standard foods, good playground, attractive rooms with all necessary requirements, and all affordable charges are basic tools to attract students.

Existing Hostel Businesses: thoroughly visit and determine what types of facilities they provide to the students and how much they charge them.

In the initial period, provides maximum facilities with low charges and attracts students through different marketing tools i.e. shared room facility, car parking facility, clean environment, space for sports activities, and more.

Hostel Business Marketing Strategies: Adopt the newest marketing strategies to attract students to get registered with your business. Outreach your business through the local newspaper, social media, print media, social contacts, interactive sessions, pamphlets, brochures, leaflets, and more. Hostel Choosing Tips

Hostel Room Charges with Facilities: Cheap room charges with good facilities are the best marketing strategy to enhance business in the initial days.  No, losing no profit in the 1-year  business is best and gradually increases the room charges with getting the business in a suitable position.

But you need to conduct a room charges comparison survey to determine the actual facts and figures from other hostels, then decide on the room charges and try to keep the charges below other hostels.

Existing Hostels Environment: Try to provide a good hostel environment and do not compromise with the standards of acceptance i.e. best and most attractive rooms, quality and healthy foods allocate separate physical exercise areas for students.

Free WI-FI facilities, neat and clean relaxation area,  sports ground, safe and secure car parking area, motivated hostel management, quick assistance support, and first aid medical facilities for the students.

K ey Points of Hostel Business Plan:

Developing a hostel business plan involves careful consideration of various aspects of your business, including market analysis, target audience, marketing strategies, financial projections, and operational details. Following are key steps while you develop a comprehensive hostel business plan:

Executive Summary:

Provide an overview of your hostel business concept.

Summarize the key points of your business plan.

Co mpany Description:

Describe your hostel and its unique selling proposition (USP).

Explain your location and the reasons for choosing it.

Discuss the legal structure of your business (sole proprietorship, partnership, etc.).

Market Analysis:

Identify your target market (backpackers, students, budget travelers, etc.).

Analyze the local and global hostel market, including competitors.

Highlight any emerging trends or opportunities in the industry.

Marketing and Sales Strategies:

Define your branding, logo, and hostel name.

Outline your marketing and advertising strategies.

Detail your online presence, including your website, social media, and booking platforms.

Explain how you plan to attract and retain customers.

Services and Amenities:

Describe the types of accommodations you offer (dormitories, private rooms, etc.).

Highlight the amenities and facilities you will provide (kitchen, common areas, Wi-Fi, etc.).

Discuss any additional services you plan to offer (tours, laundry, bike rentals, etc.).

Operational Plan:

Explain the day-to-day operations of your hostel.

Outline your staffing requirements and organizational structure.

Describe the management team and their roles.

Discuss the necessary licenses, permits, and regulations.

Financial Projections:

Create a detailed budget, including start-up costs and ongoing expenses.

Estimate your revenue projections based on occupancy rates, pricing, and seasonality.

Prepare a cash flow statement and profit and loss statement.

Outline your funding sources, such as personal savings, loans, or investors.

Risk Analysis:

Identify potential risks and challenges in the hostel industry.

Discuss strategies for mitigating these risks (insurance, contingency plans, etc.).

Analyze the financial implications of various risk scenarios.

Implementation Plan:

Create a timeline with key milestones and deadlines.

Outline the steps required to launch your hostel.

Assign responsibilities to team members.

Include a plan for ongoing monitoring and evaluation.

Appendices:

Include any supporting documents, such as market research, permits, or legal agreements.

Attach your résumé and the résumés of key team members.

Frequently Ask Questions:

Is Hostel Business Profitable?

Hostel business is time taking process to cross the break-even time, you need to be consistent and try to deliver the best services to the coming students with low charges in the initial period of time. 

If you do this, the students will play a marketing ambassador role about your hostel and services and that can turn over your business into a profit.  1st-year hostel business will definitely go to lose or break even, but you need to focus for a long period of time.   If your services are satisfactory, 2 nd- the one  year your hostel business crosses the break-even and comes into profitable.

How To Train Hostel Staff?

Appointment of hostel train staff is a difficult task and you need to offer the best salary and benefits to training staff. This will motivate train staff from other hostels to apply for the announced position. 

Attract with different methodologies thoroughly good salary package, best accommodation facilities, introduce employee safety nets and benefits, provide job security, and use motivational tools to attract train staff to be part of your business.

Develop comprehensive training and development plan for the staff and allocate some sort of annual budget for capacity-building opportunities. 

Organize indoor events to celebrate the best performers and give them appreciation tokens to keep them motivated. Hostel Room Organizing Tips

Arrange an outdoor travel plan once a year to get fresh and contribute their best to make your hostel business successful. Minimize the communication gap between management and support staff for better performance to get quick actions if needed.

How To Keep Student Records Properly?

Indeed, keeping the student's proper records in a hostel is the key task of hostel management, try to introduce a software system and get all personal information of newly admitted students and provide all data to the concerned sections, so they all can update student’s records with just one click. 

Collect scan copies of identity cards and school admission letters including recent photos with full face identification.

Develop a Weekly Food Menu?

With consultation of hostel management and kitchen staff, introduce a healthy and tasty food menu and display it on the general notice board for information of students. Keep a cushion for special day celebrations menu as well. 

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If you are thinking about going into business, it is imperative that you watch this video first! it will take you by the hand and walk you through each and every phase of starting a business. It features all the essential aspects you must consider BEFORE you start a Hostel business. This will allow you to predict problems before they happen and keep you from losing your shirt on dog business ideas. Ignore it at your own peril!

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Essentials of Family Run Business Management

No small business is easy to manage, and this is especially true in a family business. It is subject to all the problems that beset small companies plus those that can, and often do, arise when relatives try to work together.

The family member who is charged with managing the family business company has to work at initiating and maintaining sound management practices. By describing what is to be done and under what circumstances such practices help prevent some of the confusion and conflicts that may be perpetuated by self centered family members. Such relatives sometimes regard the company as existing primarily to satisfy their desires.

The questions in this checklist are designed to help chief executive officers to review the management practices of their small family companies. The comments that follow each question are intended to stimulate thought rather than to include the many and various aspects suggested by the question.

Is executive time used on high priority tasks?

The time of the owner-manager is one of the most valuable assets of a small business. It should not be dribbled away in routine tasks that can be done as well, if not better, by other employees. Never lose sight of the fact that you as owner/manager, have to make the judgments that will determine the success of your business. You may want to run a check on how your time is used. You can do so by keeping a log for the next several weeks. On a calendar memorandum pad jot down what you do in half hour or hour blocks. Then review your notes against the questions: Was my time spent on management tasks such as reviewing last week's sales figures and noting areas for improvement? Or did I let it dribble away on routine tasks such as opening the mail and sorting bills of lading? You may want to ask your key personnel to run the same sort of check on their time.

Do you set goals and objectives?

Goals and objectives help a small company to keep headed toward profit. Goals and objectives should be specific and realistic. In addition they should be measurable, time phased, and written. List your goals and objectives by writing them out for your present successful operations. Objectives that are written out in straight-forward language provide a basis for actions by your key personnel. For example, state that you will sell certain number of units this year rather than saying you will increase sales.

Do you have written policies?

Flag this question and return to it later. Working through this checklist should suggest changes that may be needed if you have written policies. By the same token, your business will provide input for writing out policies if there are none in writing.

Is planning done to achieve these goals and objectives?

In a sense, planning is forecasting. An objective, for example, for next year might be to increase your net profit after taxes. To plan for it you need to forecast sales volume, production of finished goods inventory, raw materials requirements, and all the other elements connected with producing your forecasts, you will want to make provision for watching costs, including selling expenses. If there are key employees who can provide input into the planning, ask them to become involved in that process

Do you test or check the reality of your goals and plans with others?

Outside advisors may spot "bugs" that you and your people did not catch in the press of working through the details of goal setting and planning.

Are operations reviewed on a regular basis with the objective of reducing costs?

Costs must be kept in line for a profitable operation. Review operations periodically such as weekly or monthly, to insure that overtime is not excessive, for example. And what about quality product acceptance by customers? Costs may be excessive because of obsolete methods or machinery that has seen its best days. And what about plant layout or materials flow? Can changes be made that will save time and materials? Determine the frequency of your reviews for the various types of operations and place a tickler on your calendar to remind you of these review dates.

Are products reviewed regularly with the objective of improving them?

Products that your customers benefit from are the key to repeat sales. A regular review of your products help to keep them up to the expectation of customers. Feedback from customers can be useful here. To reduce costs sometimes a product can be modified without sacrificing use and quality. If product obsolescence is a hazard, what plans are being made to substitute new products as existing ones become obsolete?

Do you ask outside advisors for their opinion and suggestions on products and operation procedures?

Outside persons, such as friends in non-competing lines of business and management personnel from local colleges and universities can help you see the facts about your products and operating procedures. They can provide a fresh viewpoint - the viewpoint of persons who are not so involved in the products and operations as you and your key personnel. The suggestions and counsel from a local management consultant may provide benefits far in excess of his or her cost. In this area some small companies set up a board of directors to satisfy the law concerning small corporations. But that is the end of it. Members of the board are not used for their knowledge and skill in business. They can make valuable contributions and the owner/manager should use all possible opportunities for getting such concerned opinions about the various phases of the company.

Are marketing and distribution policies and procedures reviewed periodically?

The best made product in the world can run into trouble if marketing and distribution policies and procedures are not right for it. Periodical checks can help you to be aware of changes that may be taking place in the channels through which you distribute. One approach is to check your competition; does it seem to be changing channels and policies? Can you still meet the requirements of your customers by using your traditional channels of distribution?

Why do some Business managers reach the profit goal more frequently than others? They do it because they maintain their operation pointed in that direction - direction of profit making. They never lose sight of this goal - to finish the year with a gain. This guide Gives suggestions which should help an owner-manager to zero in on profit earning. It points out that you have to stay informed, make timely decisions, and take action. In effect you must control the activities of your organization instead of being controlled by them. Topnotch Performance in golf, shootingfishing requires knowledge, practice, and endurance. Similarly, in Small businesses, year-end profit arrives to the owner-manager who strives for topnotch performance. You achieve profit making goals by understanding your performance, by practicing the art of earning timely, balanced decisions and by controlling the organization's actions. Adapt the Tips in this guide to your situation. They ought to allow you to call the shots to maintain your company headed in the right direction - toward profit earning. First Rule of Profit Making: Know Your Small Business. The Time-honored truth"Knowledge is power" is particularly pertinent to this owner-manager of a small business. To keep your company pointed toward profit you need to keep yourself well informed about it. You have to be aware of how the organization is doing before you may enhance its performance. You have to understand its weak points before you can correct them. Some of the knowledge you need you pick up from day-to-day personal observation, but documents should be your principal source of information about gains, expenses, and earnings. Know Your Profit. The gain and loss statement (or earnings Statement) prepared frequently each month or every quarter from your accountant is one of the most vital indicators of your business's value and wellbeing. You should make certain that this statement contains all the facts you will need for evaluating your gain. This statement must pinpoint each revenue and cost area. For instance, it should show the profit and loss for each of your products and product lines as well as the gain and loss for your entire operation. It is a good Thought to have your profit and loss statement prepared so that it shows every single item for the current interval, for the same period this past year, and for the present year-to-date. For example, a P&L announcement for the month of November would reveal income and expenses for the current month, for November this past year, and prices for the eleven months of the present calendar year. Many businesses publish their annual reports with several previous years so stockholders can compare earnings. Comparison is The key to utilizing your P&L announcement. If your accountant is not already supplying figures that you can compare, you should discuss the possibility of having them provided. Financial Ratios out of your balance sheet also allow you to understand whether your gain is what it should be. For instance, the proportion of net worth (return on investment ratio) shows what the company brought on the equity capital invested. Know Your Costs. An owner-manager ought to understand prices in detail. Following that, you can compare your cost figures as a percentage of sales (operating ratio). Be certain that your costs are itemized so you can set your fingers on the ones that appear to be climbing or falling according to your expertise and the cost figures of your own industry. When prices are itemized, you are able to spot the offender when the overall figure is greater than what you'd budgeted. Take advertising costs such as. You can catch the offender should you break out your advertising expenses by product lines and by media. In addition, a thorough check of question yields from advertisements will help to avoid unsuccessful books. In understanding your Prices, remember that the formulation for gain is: Profit equals Sales minus Costs. Know Your Product Markup. Be certain That the pricing of your goods supplies a markup adequate to the sort of profit you expect to attain. You must keep constantly informed on pricing because you need to adjust for rising costs and at precisely the exact same time keep prices competitive. Knowledge on your markup also can help you to run workouts with your eyes open. Continuing to generate something which only a few clients desire is a powerful merchandising tool just when you use it on purpose - for instance, to hold or draw buyers to other high markup products. Do not hesitate to shed a loser out of online. Garbage-In, Garbage-Out. An Owner-manager should not fudge the records. The acronym GIGO that the computer business uses is accurate with manually kept records as well as with machine-processed ones. If an owner-manager lets"garbage" to enter the records, the reports will include"garbage." Reports do not need to be extensive but they need to be accurate. Look For Trends. Try not to look at a single month's earnings or Profit picture by itself. The characters in your working statements are meaningful only when you set the image in the right framework - which is, take a look in the figures in the context of what's happened and what's likely to happen. In that manner, you catch a downward trend before it gets out of control. You should also Concern yourself with the figures behind the dollars - for instance, the amount Of units sold or the amount of orders. Insist on cost-per-unit figures. The Fluctuation of the cost-per-unit can be more meaningful than just looking At the dollar figures . Another idea would be to display these comparative Figures on graphs so that significant trends can be seen readily.

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From idea to execution: 10 sections to include in your hotel business plan

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Lana Cook

By Lana Cook

Do you love connecting with people from all over the world who share your passion for travel? Don’t want to work a typical 9-5 job and instead want to build a business where every day is different, and you own your schedule?

Starting a hotel business is a dream many entrepreneurs have, but it can be a daunting venture to start. A hotel business plan is a critical first step for business owners to turn their dreams into reality. A strategic plan allows one to study the hotel industry, identify their hotel’s unique point of view, and outline how exactly they will reach their goals.

Read on to learn more about the ten sections to include in your hotel business plan, tips for creating an effective plan, and key things you need to start your new hotel business.

Ready to get started creating your plan? Download our hotel business plan template.

What is a hotel business plan?

A hotel business plan is a detailed document that identifies your business’s goals, objectives, and strategies for success. It includes market research and a roadmap for building and operating your business.

business plan for hostel pdf

Why do you need a hotel business plan?

Studies show that entrepreneurs who finished their business plan were twice as likely to succeed in growing their business than those with no plan. A hotel business plan:

  • Helps you identify whether you have a viable business idea
  • Provides a detailed roadmap on what you need to accomplish and why
  • Gives potential investors insight into your business idea and confidence that you can be successful
  • Keeps you on track as you start to execute the different tactics outlined in your plan
  • Identifies critical milestones for you and your team to reach

Your plan does not have to be static and should change over time as your business grows and evolves. Your first draft is a starting point to help guide your strategy and instill confidence in potential investors.

10 sections to include in your hotel business plan

Whether you’re starting a small boutique hotel, a cozy B&B, or a 5-star resort, you will need to address the following sections in your hotel business plan.

1. Executive summary

An executive summary is the most essential part of your business plan. It should concisely explain the purpose of your business and why it will be a success.

Include your mission statement explaining why your hotel exists and its overall goal. For example, Capella Hotels & Resorts ’ mission is to combine tradition, discovery, individuality, and twist of the unexpected to create the perfect stay for each guest.

You should also include your vision statement that clearly describes your hotel’s purpose for being in a single sentence. For Capella Hotels, its vision is to embody excellence in the craft of hospitality.

We recommend writing your executive summary as the final stage, as it should summarize the goals and objectives laid out in your plan.

2. Company analysis

Your company analysis is where you can dive into your hotel’s competitive advantage. Ask yourself what makes your hotel unique . Why would guests want to stay with you instead of your competitors?

In this section, identify your brand’s identity and the goals and objectives you want to accomplish. Outline how many rooms and room categories your property will have. For example, will you offer a hybrid hospitality model with dorms, single rooms, and suites? Explain what ancillary revenue sources you’ll offer, like in-room food and beverage options, welcome drinks, or airport shuttles.

Use storytelling to communicate your excitement and passion and make it clear what your hotel will bring to the hospitality industry that hasn’t been done before.

3. Industry analysis

As a business owner, you must be prepared for forces outside your control. You will need to conduct a market analysis that looks at the hospitality industry to identify micro and macro trends that may impact your business. Look at:

  • Economic trends
  • Environmental trends
  • Political trends
  • Global health trends
  • Technology trends

For each trend, identify how it will impact your business and ways to mitigate risk or take advantage of opportunities.

For example, digital check-in technology has increased across the hotel industry with the rise of tech-savvy guests, new innovative software providers, and labor challenges. Therefore, consider what guest experience solution you’ll include at your hotel.

In addition to trends, look at the history of the hospitality industry, its current size, and how it’s expected to grow in the short and long term. This research will impact the rest of your plan, especially your marketing and financials.

4. Customer analysis

What type of hotel guests do you want to attract? It’s impossible to please every kind of guest, which is why it’s important to identify your target market . Once you know who you want to stay at your property, you can develop amenities, services, and marketing materials to attract these guests and deliver exceptional experiences .

Ask yourself:

  • What type of guests do I want? Business or leisure travelers? Retirees or Gen-Z?
  • What demographics? Age, gender, marital status, etc.
  • What are my target market’s interests? Water sports, hiking, relaxation, museums, etc.
  • What does my target market value? Sustainability, contactless technology, personalized service, localized experiences, etc.

This section will help you formulate the guest experience to ensure that expectations meet reality .

5. Competitive analysis

The competition you face will vary depending on where your hotel is located. In this section, you should conduct in-depth competitor research to understand how your hotel will compare. Identify your five major competitors — ideally, three direct competitors you will be competing with upon opening and two aspirational competitors you can emulate as you grow your business.

Conduct a SWOT analysis based on your competitors to look at:

  • Strengths . Where does your property excel in comparison to competitors? Why would travelers pick you? Price, amenities, location, technology, etc.
  • Weaknesses . Where does your property fall short in comparison to competitors? Price, amenities, location, technology, etc.
  • Opportunities . What industry trends can you take advantage of? What local events or partnerships can you capitalize on?
  • Threats . What are the biggest threats facing your property? War, travel restrictions, recession, etc.

A thorough analysis can help solidify your competitive advantage and develop a contingency plan for how you will deal with your weaknesses and threats.

6. Marketing plan

Without demand, there is no business. A hotel marketing plan outlines the channels you’ll use to reach your target audience to drive bookings. Your marketing strategy should include three key channels:

1) Paid media . Paid advertising to promote your property and drive bookings. This includes online travel agencies (OTAs) , search engine marketing (SEM), retargeting, and metasearch advertising.

2) Owned media. The content  you create, like your hotel website , social media channels, blog posts, and SEO.

3) Earned media. User-generated content created by third parties like media coverage or online reviews.

Hotel marketing plan templates

7. Operations plan

How do you plan to run your day-to-day operations? This section of your plan will outline all of the key tasks and responsibilities of your team and what exactly your hotel will offer. Consider:

  • The number of staff and supervisors required
  • Job descriptions and responsibilities
  • Your service standards (check out our downloadable SOPs for some inspiration)
  • How you’ll manage your inventory
  • What hotel technology solutions will you need? PMS, channel manager, booking engine, payment terminal, revenue management tools, guest engagement software, etc.
  • What services and amenities do you want to offer? Room service, bar, restaurant, pool, spa, wellness center, etc. 

Detail your short and long-term operational plans and the stakeholders involved for each area.

8. Management team

Whether or not you’ve hired your team yet, this is one of the most important sections potential investors will look at. Make sure to outline the key personnel you will require and their roles. 

In general, these are the following roles you’ll want to outline:

  • Hotel management (general manager, front office manager, housekeeping manager, maintenance manager, revenue manager)
  • Hotel sales team
  • Housekeeping staff
  • Front office staff
  • Maintenance

Depending on the size of your hotel, your team will vary. Identify the team members you need to open and your hiring plans over the next five years.

9. Strategic plan

Hoteliers must be strategic in optimizing occupancy rates across seasons to maintain revenue. As part of your strategic plan, identify how you will manage:

  • Pricing – what room types will you offer, and how will the pricing vary?
  • How will you maintain consistent occupancy throughout the high and low seasons? Will you adapt your pricing and marketing strategies?
  • How will you conduct revenue management ? What type of rules/alerts will you use to adjust rates? Will you use technology to help with revenue management?
  • What will your online reputation management strategy be? How will you collect and respond to online reviews?
  • What will your distribution mix look like? How will you drive reservations across a variety of channels?

10. Financial plan

Your financial projections are the most challenging but arguably the most crucial part of your hotel business plan. In this section, you should include the following:

  • Start-up costs. How much money will you need from lenders to operate your hotel? Consider business licenses, furniture, down payments, etc.
  • Operating costs . How much money will you need to keep your business running? Consider staffing costs, guest acquisition costs, mortgage payments, utilities, SaaS payments, etc.
  • Income statement . What will your revenue, expenses, and profit be over the first 3-5 years of business?
  • Cash flow projections . How will cash flow in and out of your business? Show what capital investment you’ll need to start.
  • Balance sheet . Identify your assets, liabilities, and equity.

If you’re looking for a potential investor, your financial plan will be the section they care about most. Here, you must prove how your business will provide a return on investment. Don’t forget to include an Appendix that shows more detailed reporting and financial figures.

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8 tips for creating an effective plan

1. Start with the section that excites you the most! Covering all the topics outlined above can feel overwhelming, so don’t feel pressured to go in order.

2. Reach out to a business owner you admire. No matter what type of business you’re starting, getting advice from another business owner is always helpful. Reach out to a successful local business owner to see if they’d be willing to share some insights they learned along the way.

3. Be concise. While there’s a lot to cover, you must be concise in each section of your plan. Include any additional research or documentation in the appendix to keep your business plan clean.

4. Try to avoid industry jargon. Depending on what type of investor is reading your plan, they may find jargon irrelevant and distracting.

5. Ensure you have a clear competitive advantage. You should be able to state in one sentence what makes your property unique. This unique selling point (USP) will be prominent in all of your marketing materials.

6. Set SMART goals. Setting specific, measurable, achievable, relevant, and time-bound goals is important to stay organized and on track to reach milestones.

7. Don’t forget about your plan. You will have spent hours developing your plan, so make sure you use it! Reference your plan as you build and grow your business , and remember that it’s ok if things change.

8. Illustrate your passion. Communicate why you want to be a part of the hospitality industry. Passion is contagious and gives investors more confidence that you will work hard to achieve your dreams.

business plan for hostel pdf

What do you need to start a hotel business?

Ok, so you’ve read through this article and are now wondering — what’s next? Ensure you have the following items on your radar to start your business.

  • A vision. Know exactly what kind of business you want to build (a quaint bed and breakfast is very different from a large-scale resort).
  • A business plan. Stay on track with a well-developed business plan.
  • A location. Decide if you want to build a new property or renovate an existing hotel.
  • Capital. Do you need to raise an upfront capital investment? Remember that new businesses usually aren’t profitable for the first few years and will need cash flow to pay for expenses.
  • Business licenses & permits. Depending on the type of property and its services, you’ll need an occupancy permit, alcohol license, food service license, sales tax license, etc.
  • Technology. Choose technology to help streamline operations and earn more revenue.
  • Furniture & equipment. You must furnish your property with the proper furniture, electronics, appliances, etc.
  • Staff. Take time hiring staff you can trust and who understand your hotel’s brand and vision.

Final thoughts

Your business plan provides the foundation for your new business and outlines the next steps in the journey. Ensure you fully understand the market and competitive landscape to enter the industry prepared for the future. Start slow and invest in the right people and technology to support the growth of your business.

Looking to start a hotel? Download the technology guide. Download now

About Lana Cook

Lana Cook is a Content Writer at Cloudbeds where she is able to combine her love of writing and passion for travel. She has spent the last few years writing about all things technology and the ways in which it can be used to help businesses thrive. When she’s not busy writing, you can find her checking out the latest movie or searching for a new TV show to binge.

Hotel business plan

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business plan for hostel pdf

Free PDF Business Plan Templates and Samples

By Joe Weller | September 9, 2020

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We’ve gathered the most useful collection of business plan PDF templates and samples, including options for organizations of any size and type.

On this page, you’ll find free PDF templates for a simple business plan , small business plan , startup business plan , and more.

Simple Business Plan PDF Templates

These simple business plan PDF templates are ready to use and customizable to fit the needs of any organization.

Simple Business Plan Template PDF

Simple Business Plan Template

This template contains a traditional business plan layout to help you map out each aspect, from a company overview to sales projections and a marketing strategy. This template includes a table of contents, as well as space for financing details that startups looking for funding may need to provide. 

Download Simple Business Plan Template - PDF

Lean Business Plan Template PDF

Lean Business Plan Template

This scannable business plan template allows you to easily identify the most important elements of your plan. Use this template to outline key details pertaining to your business and industry, product or service offerings, target customer segments (and channels to reach them), and to identify sources of revenue. There is also space to include key performance metrics and a timeline of activities. 

Download Lean Business Plan Template - PDF

Simple 30-60-90 Day Business Plan Template PDF

Simple 30-60-90 Day Business Plan Template

This template is designed to help you develop and implement a 90-day business plan by breaking it down into manageable chunks of time. Use the space provided to detail your main goals and deliverables for each timeframe, and then add the steps necessary to achieve your objectives. Assign task ownership and enter deadlines to ensure your plan stays on track every step of the way.

Download Simple 30-60-90 Day Business Plan Template

PDF | Smartsheet

One-Page Business Plan PDF Templates

The following single page business plan templates are designed to help you download your key ideas on paper, and can be used to create a pitch document to gain buy-in from partners, investors, and stakeholders.

One-Page Business Plan Template PDF

business plan for hostel pdf

Use this one-page template to summarize each aspect of your business concept in a clear and concise manner. Define the who, what, why, and how of your idea, and use the space at the bottom to create a SWOT analysis (strengths, weaknesses, opportunities, and threats) for your business. 

Download One-Page Business Plan Template

If you’re looking for a specific type of analysis, check out our collection of SWOT templates .

One-Page Lean Business Plan PDF

One Page Lean Business Plan Template

This one-page business plan template employs the Lean management concept, and encourages you to focus on the key assumptions of your business idea. A Lean plan is not stagnant, so update it as goals and objectives change — the visual timeline at the bottom is ideal for detailing milestones. 

Download One-Page Lean Business Plan Template - PDF

One-Page 30-60-90 Day Business Plan Template

One Page 30-60-90 Day Business Plan Template

Use this business plan template to identify main goals and outline the necessary activities to achieve those goals in 30, 60, and 90-day increments. Easily customize this template to fit your needs while you track the status of each task and goal to keep your business plan on target. 

Download One-Page 30-60-90 Day Business Plan Template

For additional single page plans, including an example of a one-page business plan , visit " One-Page Business Plan Templates with a Quick How-To Guide ."

Small Business Plan PDF Templates

These business plan templates are useful for small businesses that want to map out a way to meet organizational objectives, including how to structure, operate, and expand their business.

Simple Small Business Plan Template PDF

Simple Small Business Plan Template

A small business can use this template to outline each critical component of a business plan. There is space to provide details about product or service offerings, target audience, customer reach strategy, competitive advantage, and more. Plus, there is space at the bottom of the document to include a SWOT analysis. Once complete, you can use the template as a basis to build out a more elaborate plan. 

Download Simple Small Business Plan Template

Fill-In-the-Blank Small Business Plan Template PDF

Simple Fill In The Blank Business Plan Template

This fill-in-the-blank template walks you through each section of a business plan. Build upon the fill-in-the-blank content provided in each section to add information about your company, business idea, market analysis, implementation plan, timeline of milestones, and much more.

Download Fill-In-the-Blank Small Business Plan Template - PDF

One-Page Small Business Plan Template PDF

One Page Business Plan For Small Business Template

Use this one-page template to create a scannable business plan that highlights the most essential parts of your organization’s strategy. Provide your business overview and management team details at the top, and then outline the target market, market size, competitive offerings, key objectives and success metrics, financial plan, and more.

Download One-Page Business Plan for Small Business - PDF

Startup Business Plan PDF Templates

Startups can use these business plan templates to check the feasibility of their idea, and articulate their vision to potential investors.

Startup Business Plan Template

Startup Business Plan Template

Use this business plan template to organize and prepare each essential component of your startup plan. Outline key details relevant to your concept and organization, including your mission and vision statement, product or services offered, pricing structure, marketing strategy, financial plan, and more.

‌Download Startup Business Plan Template

Sample 30-60-90 Day Business Plan for Startup

Sample 30-60-90 Day Business Plan for Startup

Startups can use this sample 30-60-90 day plan to establish main goals and deliverables spanning a 90-day period. Customize the sample goals, deliverables, and activities provided on this template according to the needs of your business. Then, assign task owners and set due dates to help ensure your 90-day plan stays on track.

‌Download Sample 30-60-90 Day Business Plan for Startup Template 

For additional resources to create your plan, visit “ Free Startup Business Plan Templates and Examples .”

Nonprofit Business Plan PDF Templates

Use these business plan PDF templates to outline your organization’s mission, your plan to make a positive impact in your community, and the steps you will take to achieve your nonprofit’s goals.

Nonprofit Business Plan Template PDF

Fill-in-the-Blank Nonprofit Business Plan Template

Use this customizable PDF template to develop a plan that details your organization’s purpose, objectives, and strategy. This template features a table of contents, with room to include your nonprofit’s mission and vision, key team and board members, program offerings, a market and industry analysis, promotional plan, financial plan, and more. This template also contains a visual timeline to display historic and future milestones.

Download Nonprofit Business Plan Template - PDF

One-Page Business Plan for Nonprofit Organization PDF 

One Page Business Plan for Nonprofit Organizations Template

This one-page plan serves as a good starting point for established and startup nonprofit organizations to jot down their fundamental goals and objectives. This template contains all the essential aspects of a business plan in a concise and scannable format, including the organizational overview, purpose, promotional plan, key objectives and success metrics, fundraising goals, and more.

Download One-Page Business Plan for Nonprofit Organization Template - PDF

Fill-In-the-Blank Business Plan PDF Templates

Use these fill-in-the-blank templates as a foundation for creating a comprehensive roadmap that aligns your business strategy with your marketing, sales, and financial goals.

Simple Fill-In-the-Blank Business Plan PDF

The fill-in-the-blank template contains all the vital parts of a business plan, with sample content that you can customize to fit your needs. There is room to include an executive summary, business description, market analysis, marketing plan, operations plan, financial statements, and more. 

Download Simple Fill-In-the-Blank Business Plan Template - PDF

Lean Fill-In-the-Blank Business Plan PDF

Fill-in-the-Blank Lean  Business Plan Template

This business plan is designed with a Lean approach that encourages you to clarify and communicate your business idea in a clear and concise manner. This single page fill-in-the-blank template includes space to provide details about your management team, the problem you're solving, the solution, target customers, cost structure, and revenue streams. Use the timeline at the bottom to produce a visual illustration of key milestones. 

Download Fill-In-the-Blank Lean Business Plan Template - PDF

For additional resources, take a look at " Free Fill-In-the-Blank Business Plan Templates ."

Sample Business Plan PDF Templates

These sample business plan PDF templates can help you to develop an organized, thorough, and professional business plan.

Business Plan Sample 

Basic Business Plan Sample

This business plan example demonstrates a plan for a fictional food truck company. The sample includes all of the elements in a traditional business plan, which makes it a useful starting point for developing a plan specific to your business needs.

Download Basic Business Plan Sample - PDF

Sample Business Plan Outline Template

Simple Business Plan Outline Template

Use this sample outline as a starting point for your business plan. Shorten or expand the outline depending on your organization’s needs, and use it to develop a table of contents for your finalized plan.

Download Sample Business Plan Outline Template - PDF

Sample Business Financial Plan Template

Business Financial Plan Template

Use this sample template to develop the financial portion of your business plan. The template provides space to include a financial overview, key assumptions, financial indicators, and business ratios. Complete the break-even analysis and add your financial statements to help prove the viability of your organization’s business plan.

Download Business Financial Plan Template

PDF  | Smartsheet

For more free, downloadable templates for all aspects of your business, check out “ Free Business Templates for Organizations of All Sizes .”

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15+ hotel business plan samples – pdf, word.

Hotels are one of the most lucrative businesses one can get into. They are especially profitable if the hotel business plan in question is located in a busy city or near a popular tourist destination. Being part of the hospitality industry, you will never run out of customers as long as your hotel is managed properly. To run your hotel plan profitability, you must have a proper business plan that will help you dance your worries away. We have various hotel business plan templates applicable for various related businesses and accommodations such as a startup mini hotel, guest house motel, 5 star resort lodge, 3 star spa, and boutique, etc. Keep scrolling!

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1. externally focused business plan, 2. internally focused business plan, free feasibility study and hotel business plan sample.

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Free Start-up Boutique New Hotel Sample Business Plan

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General FAQs

1. what is a hotel business plan, 2. what is the purpose of using a hotel business plan, 3. what should a hotel business plan include.

  • Executive summary
  • A detailed sample analysis of your company and the work you do
  • Industry and market analysis
  • Client and customer evaluation
  • Your competitors and other sources
  • Marketing and operation plan, etc.

4. What Is a Successful Business Plan?

5. how do you write a hotel business plan.

  • Operations : explain how your organization will operate daily
  • Management : mention your management team
  • Financial details : this is where you mention all key finances
  • Project planning : define all the targets you want to hit
  • Appendix and other details.

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Hostel business plan examples

ankos's picture

Is anyone interested in sharing their hostel business plan with me or providing it to me for a fee?

Alternately, can anyone recommend one of the "canned" business plans I see available on the net? Here is one example: planmagic.com/business_plan/hotel/hostel_business_plan.html

Finally, I would be willing to work together with other folks on this forum to research and fill-in some of the generic parts of a hostel business plan template.

Having written several business plans for other businesses, I am fully aware that my own hostel business will end up being quite unique. However, having a template to work from saves a lot of time.

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Josh Hostels's picture

Josh Hostels

I would be interested in contributing to a hostel business plan. Do you have a framework already started?

uktrail's picture

From looking at the website you mention above, I suspect that their plan will have much more detail in certain aspects than you will need. But their list of headings is very comprehensive.

I suggest you treat that list as a template, and it's free. Start with that list, and write briefly what you want to do under each heading, or omit it if, after consideration, you decide it's not relevant. Expand the items that are significant to you, using a Spreadsheet such as Excel for any financial calculations (so that you can keep altering it as you refine your figures.) Then there's your Business Plan!

Do you have a property in mind already? If not, it's a bit pointless to start your business plan yet, as most items will be highly dependent on location (city, outer city, country), size, and whether you can design it from scratch or have to use existing layout. But good luck, I'm always interested in hearing about hostels run by enthusiasts!

Report 'Re: Hostel business plan examples'?

The Hostel Management Wiki has a section on Hostel Business Plans . If anyone has ideas for a hostel business plan, or a framework that others could use to write a hostel business plan, please visit that page and click "edit" to add content.

kendel7's picture

I am also wanting to start my own hostel and I have been doing lots of research and found a pretty good template. However, I am also having some of the same problems as mentioned above... I'm not too sure what to include in these sections. I have a location in mind picked out but nothing has been finalized yet... I can't get the property without the funding and I can't get the funding without the business plan so I feel as though I am stuck between a rock and a hard place. I am writing my plan as if I had the property and then hoping for the best...

TABLE OF CONTENTS Your business plan is divided into the following sections:

Business Overview Description of the business Major demographic, economic, social and cultural factors Major players (suppliers, distributors, clients) Nature of the industry Trends in the industry: Government regulations Market segment Products & services Pricing and distribution Market trends Implications or risk factors Competitors and type of competition Competitors' strengths and weaknesses Competitive advantage

Sales & Marketing Plan Customers Suppliers Advertising & promotion

Pricing & distribution Customer service policy Operating Plan Business location & requirements / advantages / lease details Equipment / technology / R&D / environmental aspects

Human Resources Plan Key employees Policies & procedures Action Plan Action plan & timetable

Executive Summary A brief description of the project, the financing required, and additional information that help explain the business plan 8 APPENDIX: • Financial Plan • Floor Plan

I have been doing lots of research and found a pretty good template.

Is that outline above copyrighted, or could I put it in the Wiki as an outline for other people?

The Wiki content is licensed under the GNU Free Documentation License (compatible with Wikipedia's license).

It was free outline on a Canadian Business Website so it was free to all users (therefore, assuming it does not have a copy right?)

I added two business plan outlines to the Business Plan Wiki Page .

Still need to combine the two outlines into one outline and fill it with some generic information that could be expanded on by individual hostels.

Anyone is welcome to jump in and help editing that Wiki page. :)

maelinva's picture

I have translated into English (more or less, please feel free to correct it) this excell file I made to calculate the minimum rentability level needed.

It's not a business plan, but even if it's probably incomplete, I think it's quite useful to get an idea about up to what point a business project can work or not, etc.

I'll attach it here so you can decide where it belongs...if it does anywhere hehe, and also so you can edit it if needed before placing it somewhere else...hope it works! :)

santa klaus

A few things seem wrong here.

You estimate € 18.000 p.a. for rent & mortgage = € 1500 per month

You speak of 45 beds - that´ll require a house with about 500 square meters. Now I don´t have any idea about real estate prices on Portugal, I have some doubts you´ll find a 500 suare meters building to rent in downtown Porto for that sort of amount.

Mortgage alone: € 1.500 per month will get you a loan for about € 200.000, at 6% interest, maturity 20 years. You will need those € 200.000 alone for renovations and furniture - easily.

€ 1.200 p.a. for external services seems very little to me. Again, no idea about prices in Portugal, but we have to pay € 6.000 alone for the yearly balance sheets and tax statements.

€ 2.400 for "other", such as repairs. A broken elevator alone can set you back € 2.400. Please forget the elevator idea, at least. Admittedly, our hostels are a lot bigger, but I am calculating with twice this amount - per month!

Re: your "average price per bed" figure: € 18 per bed seems to be a fair price, but you´ll have to pay VAT. So, let´s say you sell a bed for € 18 on Hostelworld - the guest will hand over to you € 16.20. VAT in Portugal is 19%, so you´ll end up with only € 13,62.

A few things seem wrong here

Yes, I changed most of the figures from my original sheet, the idea is to give a sample, not to give my real numbers and I thought posting the sheet empty of numbers wouldn't be as clear.

Also regarding VAT, suposedly both the costs and income should be put without taxes, I forgot to mention that, thank you :)

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On Developer , select Text Box , Check Box , or Combo Box .

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IMAGES

  1. Tips On How To Write A Great Hostel Business Plan

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  2. BUSINESS PLAN FOR HOSTELS

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  3. Hostel business plan template

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  4. Hostel business plan template

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  5. BUSINESS PLAN FOR HOSTELS

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COMMENTS

  1. How To Write A Hostel Business Plan + Free Template

    Hostel Business Plan - Basics What Is A Business Plan? At its heart, a business plan is a formal written document about HOW your hostel business works and WHY it will be successful, i.e. profitable.

  2. How to create a successful business plan for a hostel

    A business plan consists of two main components: A financial forecast that aims to highlight the expected profitability of the business and its need for initial financing A written part that presents, in detail, your project, the team, your business strategy, and your medium-term objectives.

  3. How To Start Your Hostel Business: Complete Guide

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  4. Private Hostel Business Plan [Sample Template]

    Industry Overview A hostel whether private or public owned is a type of low-cost, short-term shared sociable lodging where guests can rent a bed, usually a bunk bed in a hall of residence, with shared facilities such as lounge, laundry and sometimes a kitchen. Rooms in hostels can be mixed or single-sex and they have private or shared bathrooms.

  5. Hostel business plan template

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  6. How To Write A Hostel Business Plan in 2023

    1. Private Hostel Business Plan Sample and Template A hostel business plan is an important document that outlines the strategy and objectives of how to open a hostel business plan. It provides the roadmap for business operations and financial projections. The plan should include the hostel's budget, marketing plan, and operational plans.

  7. PDF Business plan of a hostel in Saint Petersburg

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  8. How to create a financial forecast for your hostel

    1. Why make a financial forecast for a hostel? A financial forecast makes you look at your business in detail - from income, to operating costs and investments, to evaluate its expected profitability and identify any gaps where you'll need funding.

  9. Opening your Dream Hostel: the Simple 5-Step Plan for Success

    A foundational exercise to defining your dream hostel should include: Target audience. Location. Concept design and architectural needs. Management and operational needs. 2. Decide your hostel's unique selling points. A hostel addresses a target cohort that wants to spend a limited amount of money.

  10. PDF Starting a successful hotel: a guide

    2. Pull it all together: creating a hotel business plan 3. Crunch the numbers: the cost of getting started 4. Spread the word: develop a marketing plan 5. The A-team: hiring and training staff 6. Smooth operation: implementing systems 7. Support for setting up your hotel with Preno

  11. Hotel Business Plan Template

    Let's dive into the step-by-step checklist of what your hotel business plan should look like. Infographic by Xotels. 1. Executive Summary. This first part should consist of two main parts, being: Mission Statement (Introduction): a 1 line company description only the essence of your hotel (not 2 lines or a paragraph).

  12. How Do I Develop a Hostel Business Plan?

    Financial Projections: Create a detailed budget, including start-up costs and ongoing expenses. Estimate your revenue projections based on occupancy rates, pricing, and seasonality. Prepare a cash flow statement and profit and loss statement. Outline your funding sources, such as personal savings, loans, or investors.

  13. Free Hostel Business Plan PDF Template

    This is a practical manual in a PDF format, that will walk you step by step through all the essential phases of starting your Hostel business. The book is packed with guides, worksheets and checklists. These strategies are absolutely crucial to your business' success yet are simple and easy to apply.

  14. How to Create a Hotel Business Plan in 2024 (+Free Template)

    1. Executive summary An executive summary is the most essential part of your business plan. It should concisely explain the purpose of your business and why it will be a success. Include your mission statement explaining why your hotel exists and its overall goal.

  15. Free PDF Business Plan Templates

    Managing Work Strategic planning Free PDF Business Plan Templates and Samples Get free Smartsheet templates By Joe Weller | September 9, 2020 We've gathered the most useful collection of business plan PDF templates and samples, including options for organizations of any size and type.

  16. Hostel Business Plan

    249972793-Hostel-Business-Plan.docx - Free download as Word Doc (.doc / .docx), PDF File (.pdf), Text File (.txt) or read online for free.

  17. Hotel Business Plan: Beginners Guide

    A hotel business plan is a formal document that provides a detailed roadmap for a hotel project, outlining everything from its goals and target market to the products and services it will offer, marketing strategies, and financial projections. Hotel business plans are important tools for starting a new hotel business because they establish ...

  18. 15+ Hotel Business Plan Samples

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  19. PDF YOUTH HOSTEL BUSINESSS PLAN May 2010

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  20. Hostel business plan examples

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  21. Business plan/Business Model Draft (For Hostel)

    Jan 15, 2021 • 1 like • 1,742 views IRFAN UR REHMAN IRFAN UR REHMAN Follow Business This ppt file includes details of required businees plan for opening a new boys hostel. It act as a sample/template of business plan. 1 of 40 Download Now What's hot (20) Business Plan (Hotel) Business Plan (Hotel) Business plan on restaurant Hungry 24

  22. Udofa Students Hostel Business Plan.pdf

    Executive Summary The aim is to create a business plan for a Hotel by keeping the identity of the region and contributing to the sustainable growth. Udofa Student Residences will be located in a safe and secured environment in the heart of Montego Bay, Jamaica. Udofa Student Residences believes in the passionate pursuit of excellence and financial success with uncompromising services and ...

  23. PDF Free Version of Growthinks Hotel Business Plan Template

    Sample from Growthink's Ultimate Hotel Business Plan Template: The Marketing Plan describes the type of brand [Company Name] seeks to create and the Company's planned promotions and pricing strategies. The [Company Name] Brand. The [Company Name] brand will focus on the Company's unique value proposition: • Offering business-class rooms ...

  24. Create a form in Word that users can complete or print

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  25. PDF California High-Speed Rail Authority 2024 Business Plan

    2024 Business Plan, the high-speed rail service planning process uses the Viriato software tool to construct stringlines, calculate train trip times with pad and support the construction of conflict-free service concepts in areas of the high-speed rail operation with mixed-service operation (Peninsula and South of Burbank).