Generally speaking, a hotel is an institution, which offers its services and facilities within the framework of commercial hospitality. There are five elements that can be integrated by a hotel business plan into the complete scheme, namely:
Quite often, a single person or a family could be an owner of a hotel, however increasingly it is an incorporated firm or a private company who uses the advantages of limited liability. There is not much room for impromptu speech ideas there - however small, a hotel always depends on one individual, either the manager or owner, and on the loan securely available rather than on the availability of external finance. Commonly, small hotels provide three types of finance: 1) from personal savings; 2) from retained profits and the realization of other assets; 3) from bank loans and overdrafts as the main external sources. This applies to the long ranged expenditure and to short-term requirements, as well. Although, a hotel business plan for much longer-term finance traditionally comprises the financial involvement of private sources and businesses that are ready to lend. Therefore, small hotels usually have a low proportion of loan capital whereas the capital, contributed by private individuals is presented in a comparatively high proportion.
There exist four main sources, upon which the owner’s income mainly bases itself: 1) annual profits; 2) the appreciation of buildings and land; 3) the income in kind (which often makes a significant part of total income); 4) return on investment as well as the additional emoluments that the owners derive as a reward for managing the hotel. Sure thing, the small size of the hotel dictates its staffing specifics. Normally, the owner in such hotels combines the functions of operational management and ownership in one person. Many horror book reviews name a hotel owner one of the most popular characters for horror novels; authors often describe owners of small hotels as weary and unquiet people, who after death acquire a rather vicious habit of molesting their guests with ghostly howls. Well, the reality is not that dreadful; however, small hotel owners keep themselves quite busy, solely realizing a hotel business plan and being responsible for the organization, planning, staffing, financing, control and direction at the same time.
Again, if in a small hotel the division of work is smartly organized, then the owner will never need to speech ideas off the reel, but instead will get the possibility to supervise all employees directly. For example, establishing an office as the nerve center of the hotel and assigning to them dealing with suppliers invoices, wages and other clerical tasks, such as management of guests’ accounts, may relieve the owner from some weight on her shoulders. What is more, it is advisable to create a hotel business plan, which makes interchangeable as many employees as possible – thus, a receptionist could assist the dining room and the bar; a waitress may pay attention to the servicing of guest rooms apart from serving food and drinks in the dining room; a porter could also serve drinks on the bar and in the lounge along with helping guests with their luggage and cars. Anyway, the staff is not permitted to have any side work – say, provide their children with English homework help online while even partial idleness could spoil the entire working atmosphere. On the other hand, if the owner is trying to imitate a big hotel by organizing an expanded departmental structure, he or she can leave the small hotel without particular advantages, which it usually benefits from.