(+1) 9784800910, (+44) 020 3097 1639 [email protected]
Select Page

If you are planning to write the Resort business plan on your own, then this sample Resort business plan can be great for guidance. However, if you are looking for a professional business plan writer for a business loan, SBA loan or to find out the possibility of success for your new business then let’s talk!

Executive Summary

Overview: Greg Jill is the owner and operator of Heaven’s Resort. Greg has worked in a variety of top positions in resorts and hotels around the United States. He is well known for his excellent leadership and commercial skills. Greg has always wanted to create a dream destination for travelers, and he hopes to do so with his new enterprise by creating a world-class resort with exceptional customer service. His resort, with its high-end opulent amenities, will be every tourist’s ideal destination. Heaven’s Resort will be a dream resort in Santa Cruz, California, just 10 minutes from Mitchell’s Cove Beach. Tourists visiting Santa Cruz will be our primary consumers. We will provide them with a dream lodging and unmatched service. Within five years of opening, we want to be the best resort in Santa Cruz.

Mission: The goal of Heaven’s Resort is to deliver genuine hospitality. Every day, we make a difference in the lives of those we come into contact with. This is how we define hospitality.

To offer genuine and lavish hospitality. Our notion of hospitality is making a difference in the lives of individuals we come into contact with every day. We do so in an environment that values all people and ideas equally. We execute it quickly and effectively, resulting in exceptional results.

Vision: Heaven’s Resort’s vision is to become a prestigious and worldwide recognized resort brand. We create lifelong relationships with our guests by providing exceptional service and fulfilling their ultimate vacation dreams. We are concerned about and respect the environment.

Industry Overview: The Global Hotels and Resorts industry grew strongly over the five years to 2019, as individuals and businesses gained confidence in their finances and spent more freely on luxuries, such as travel. As a result, both travel rates and hotel room and occupancy rates, two indications of a hotel’s performance, increased significantly. Travel spending has also accelerated, particularly in emerging nations where tourism is growing. While the business is dominated by major, well-known hotel chains, it nevertheless has a low concentration and several small independent operators. The business remains highly competitive due to its low concentration, and the continual increase in the availability of new hotel rooms has constrained operators’ capacity to boost room prices. Travel spending is expected to rise over the next five years, as global economic circumstances improve and consumer spending boosts revenue for hotels and resorts around the world.

Hotel and resort accommodations with private or communal facilities, as well as food services and restaurants, are included in the Global Hotels and Resorts industry. This includes both franchised and chain businesses. All other types of lodging, such as motels, caravan parks and camping grounds, youth and backpacker hotels, and bed & breakfast places, are not included.

The Global Hotels and Resorts industry grew strongly over the five years to 2019, as individuals and businesses gained confidence in their finances and spent more freely on luxuries, such as travel. As a result, both travel rates and hotel room and occupancy rates, two indications of a hotel’s performance, increased significantly. Travel spending has also accelerated, particularly in emerging nations where tourism is growing. While the business is dominated by major, well-known hotel chains, it nevertheless has a low concentration and several small independent operators. The business remains highly competitive due to its low concentration, and the continual increase in the availability of new hotel rooms has constrained operators’ capacity to boost room prices. Travel spending is expected to rise over the next five years, as global economic circumstances improve and consumer spending boosts revenue for hotels and resorts around the world.

Hotel and resort accommodations with private or communal facilities, as well as food services and restaurants, are included in the Global Hotels and Resorts industry. This includes both franchised and chain businesses. All other types of lodging, such as motels, caravan parks and camping grounds, youth and backpacker hotels, and bed & breakfast places, are not included.

Beach resorts are a popular vacation destination in the United States. These resorts can be located on both the East and West Coasts, as well as on the country’s island regions. In most economic climates, these firms can stay successful, while especially high-end beach resorts may experience moderate revenue declines during times of economic slump. These businesses have extraordinarily high gross margins and may have many revenue centers. Most beach resorts make money via restaurant operations, day spas, excursions, salon services, and room service, in addition to nightly hotel room rentals. These huge revenue centers enable these enterprises to produce a large amount of income per person or household. Beach resorts are a popular vacation destination in the United States. These resorts can be located on both the East and West Coasts, as well as on the country’s island regions. In most economic climates, these firms can stay successful, while especially high-end beach resorts may experience moderate revenue declines during times of economic slump. These businesses have extraordinarily high gross margins and may have many revenue centers. Most beach resorts make money via restaurant operations, day spas, excursions, salon services, and room service, in addition to nightly hotel room rentals. These huge revenue centers enable these enterprises to produce a large amount of income per person or household. Depending on the location and scale of the property, the launch costs for a new beach resort can be rather high. Depending on the size and location, these enterprises might cost anywhere from $5 million to $100 million or more to launch. Given that the vast majority of this capital is often utilized for the acquisition of assets and as well as real land, almost all financial institutions are eager to lend a large amount of money to beach resort enterprises. In most circumstances, an entrepreneur or group of investors planning to open a new beach resort will be required to put down a 10% to 20% deposit. A beach resort’s continual operational costs are exceptionally high.

Financial Overview:

Resort business plan financial overview

Financials is one of the most important sections of a Resort business plan. You can get an idea of your projected revenue, required investment amount, is the business sustainable without additional funding, etc.

Financial Highlights:

Liquidity2020A2021A2022F2023F2024F
Current ratio612233242
Quick ratio611223140
DSO88888
Solvency
Interest coverage ratio8.211.114.2
Debt to asset ratio0.010.010.20.180.16
Profitability
Gross profit margin51%51%53%53%53%
EBITDA margin12%14%21%22%22%
Return on asset5%6%13%14%14%
Return on equity5%6%16%17%17%

Use of Funds:

Resort investment Capex

Industry Analysis

The industry analysis section of the Resort  business plan will help you get better insights into competitors, market growth, and overall industry prospects. You can order a custom market research report for your Resort business.

In 2017, the worldwide luxury hotel market was worth USD 83.10 billion, and it is expected to grow at a CAGR of 4.3 percent over the forecast period. The market is predicted to be driven by emerging tourism and corporate industries across various regions, rising disposable income, rising people’s standard of life, and an increase in desire for leisure travel.

The rise in spending power and style of living are two of the most important elements driving people to luxury resorts. Demand for luxury accommodations for business events, corporate stays, and leisure excursions is increasing as more money is put into the economy.

Resort business plan industry analysis

While working on the industry analysis section of the Resort business plan make sure that you add significant number of stats to support your claims and use proper referencing so that your lender can validate the data.

The hosting of big sporting events by a city or country has also pushed up demand for luxury accommodations. Sports teams, as well as spectators traveling from all over the world for the tournament, like to stay in luxury hotels, resulting in an increase in the number of reservations. For example, elite hotel chains in Russia are reportedly preparing for the 2018 FIFA World Cup.

Major industry competitors are extensively investing in infrastructure and renovating their properties with cutting-edge technology to improve the aesthetics and overall comfort supplied to clients. Some of the major firms that provide automation solutions for controlling lighting, security, entertainment, energy, and other connected devices with an Internet of Things (IoT) ecosystem include Control4 Corporation, Crestron Electronics, Inc., and AMX LLC.

For example, the 174 premium suites at Sydney’s Star Hotel & Casino give complete guest control. The suites are equipped with a Control4 system that allows users to control the television, audio system, room temperature, blinds, and lights from their tablet or mobile device. Light sensors are also included in the system, which help save energy by turning lights off after 30 minutes of inactivity.

For regulating and monitoring electrical fittings and electronics in its rooms, the Gateway Canyon Resort in Colorado has installed a Crestron Electronics, Inc. automation system. Kapari, a luxury hotel on the Greek island of Santorini, has installed an automated control system by AMX LLC in each room to provide guests with high-tech room control.

The market has been divided into business, airport, holiday, resorts and spas, and other hotel types. Golf, ski, mountain, and lake hotels, as well as cruises, are included in the other segment. In 2017, the business segment had the highest revenue share, around 35.0 percent. Around the projected period, the resorts and spas market is expected to grow at a CAGR of over 5.0 percent. With a growing desire for leisure travel, demand for holiday resorts and spas that are specifically designed to help tourists relax and take a break from their everyday routines is on the rise.

The Crowne Plaza at Changi Airport Terminal 3 is one of the most popular luxury airport hotels in Singapore, featuring amenities like a spa that offers reflexology to help with jet lag, a gym, and a swimming pool backed by rainforest-style plants. The Fairmont Vancouver Airport, Vancouver; Sofitel London Heathrow; Kempinski Hotel Airport, Munich; Hotel Novotel Bangkok Suvarnabhumi Airport; Airways Hotel, Port Moresby; and Hilton Frankfurt Airport are among the other notable properties.

Industry Analysis of Resort Business Plan

To attract clients, major participants in the industry categorize their properties into several themes such as spa resorts, sea and spa resorts, beach resorts, mountain/ski resorts, and golf hotels. The Sofitel Agadir Thalassa Sea & Spa in Morocco, for example, exudes peace through the use of white and black, as well as a blend of Moroccan tradition and modern aesthetics. This resort’s exceptional features include a personal terrace suite, private beach, and private garden.

With a revenue share of over 35.0 percent in 2017, the North American region dominated the market, and this trend is likely to continue over the forecast period. Because it is a worldwide financial hub as well as one of the most popular tourist destinations for people all over the world, the United States accounted for the greatest revenue share in that market in 2017. Over the forecast period, the Asia Pacific region is expected to increase at the fastest rate.

The European market has grown in importance as a result of government measures to promote tourism in their country and local regions by raising awareness of architectural and historical significance. The rich history of European countries like the United Kingdom, Spain, Italy, and France, for example, is a fundamental driver driving the Europe market.

People in growing economies such as India, China, Thailand, Brazil, and South Africa are expected to increase their income, boosting the global tourist industry and boosting the entire market. Countries experiencing political unrest, economic crises, and strict Foreign Direct Investment (FDI) laws are expected to see market development stagnate or stop.

Marketing Plan

A key part of the marketing plan in a Resort business plan is the marketing budget. The growth in the number of customers is proportional to the budget and dependent on the CAC.

Resort business plan promotional budget

Party: Ascertain that we hold a magnificent launching party that will draw a large crowd in Cruz, California, as well as raise awareness throughout the United States of America.

Social Media: Ensure that our resort business is advertised on our website, social media platforms like Facebook, Twitter, and Instagram, as well as other popular blogs and forums.

Discount: Offer discounts at specific times to raise awareness and attract clients.

Billboards: Place billboards in prominent areas throughout Santa Cruz, California.

Magazines & Newspapers: Advertise in local newspapers, magazines, and radio and TV stations.

Organizational Plan:

Resort business plan organogram

Financial Plan

This section of the Resort business plan helps your lender figure out whether you will be able to pay off the loan, whether the business is sustainable, what are the growth prospects, etc.

Earnings: 

Financial Plan for Resort Business Plan

Income Statement:

2020A2021A2022F2023F2024F
  ANNUAL REVENUE
Item 19,21759,117175,410415,277781,357
Item 234,701222,558660,3681,563,3942,941,580
Item 34,06719,56146,43278,519114,905
Total annual revenue47,985301,236882,2112,057,1893,837,842
% increase528%193%133%87%
COST of REVENUE
Item 13602,2596,61715,42928,784
Item 24803,0128,82220,57238,378
Item 352,00065,00078,00091,000104,000
Item 47203,6158,82216,45823,027
Item 5140,000336,000560,000840,0001,120,000
Item 660,000144,000240,000360,000480,000
Item 732,00061,33385,533112,153141,435
Total Cost of Revenue285,560615,220987,7941,455,6121,935,625
as % of revenue595%204%112%71%50%
Gross Profit-237,575-313,984-105,583601,5781,902,218
SELLING & ADMIN EXPENSES
Item 128,00096,800154,880175,692193,261
Item 275,000105,000120,000120,000120,000
Item 336,00096,000108,000120,000120,000
Item 48,00012,00012,00012,00012,000
Item 53,83918,07444,11161,716115,135
Item 63,35912,04926,46641,14476,757
Item 75,60010,00012,90415,03417,376
Item 86,66714,00022,06730,94040,701
Total selling & admin expenses166,464363,924500,428576,525695,230
as % of revenue347%121%57%28%18%
Net profit-404,039-677,907-606,01125,0521,206,987
Accumulated net profit-404,039-1,081,947-1,687,957-1,662,905-455,918