What is inside this bed and breakfast and small hotel business plan
The download is a complete sample plan for Hawthorne House Inn, a fictional bed and breakfast and small hotel business, written so you can see what a finished plan looks like and then swap in your own details. It includes all twelve sections lenders and investors expect:
- Executive summary
- Company description
- Products and services
- Market analysis
- Competition
- Marketing and sales
- Operations, licenses and permits
- Management and staffing
- Key performance indicators
- Risks and mitigation
- Financial plan with startup costs and 3-year projection
- Funding request and appendix checklist
Who your bed and breakfast and small hotel business will serve
Typical customers
- Leisure travelers
- Weekend couples
- Wedding and event guests
- Business travelers
Products and services to describe
- Guest rooms with breakfast
- Packages for special occasions
- Small weddings and retreats
- Local experiences and tours
Common revenue streams
- Room revenue
- Events and packages
- Food and add-ons
Bed and Breakfast and Small Hotel startup costs
These rough ranges are a starting point for your own budget. Real costs depend heavily on your city, the size of the operation and whether you buy new or used. Get quotes and replace them in your plan.
| Startup cost | Typical low | Typical high |
|---|---|---|
| Property down payment or lease | $50,000 | $400,000 |
| Renovation and room furnishing | $30,000 | $200,000 |
| Kitchen upgrades | $10,000 | $50,000 |
| Licenses, inspections and insurance | $3,000 | $10,000 |
| Website and booking engine | $2,000 | $8,000 |
| Marketing | $3,000 | $10,000 |
| Working capital reserve | $20,000 | $60,000 |
| Estimated total | $118,000 | $738,000 |
Build your own budget with the free startup costs calculator.
Sample 3-year projection
The template includes an illustrative projection for a bed and breakfast and small hotel business with first-year revenue of $250,000 and a 70% gross margin. Use it to see the shape of the numbers, then build your own with the 3-year financial projections spreadsheet.
| Year 1 | Year 2 | Year 3 | |
|---|---|---|---|
| Revenue | $250,000 | $312,000 | $359,000 |
| Gross profit | $175,000 | $218,400 | $251,300 |
| Operating expenses | $166,250 | $182,875 | $197,505 |
| Net income before tax | $8,750 | $35,525 | $53,795 |
Key numbers to track
- Occupancy rate
- Rooms sold divided by rooms available.
- Average daily rate
- Average room price.
- RevPAR
- Revenue per available room.
- Direct booking share
- Bookings without OTA commissions.
Licenses and permits to research
- Lodging license
- Food service permit for breakfast
- Fire and building inspections
- Occupancy tax registration
Requirements differ by state, county and city. Check with your local business licensing office, health department or Small Business Development Center before you open.
Marketing ideas for a bed and breakfast and small hotel business
- Direct booking website
- Online travel agencies
- Wedding venue listings
- Local tourism partnerships
Risks lenders will ask about
- Seasonality
- Property maintenance
- Online travel agency fees
- Owner workload
Tips for writing your bed and breakfast and small hotel business plan
- Show occupancy and rate by season.
- Explain the guest experience.
- Include property condition and renovation plans.
Prefer a guided version?
Answer questions one section at a time and download your finished plan as a Word file.
Frequently asked questions
Is a bed and breakfast profitable?
Many are lifestyle businesses with modest profit, but well-located inns with strong occupancy and events can perform well.
What permits does a B&B need?
Typically a lodging license, food permit for breakfast, fire inspection, zoning approval and occupancy tax registration.
Is this bed and breakfast and small hotel business plan template really free?
Yes. Download the Word or PDF file and use it for your own business at no cost, with no sign-up required. Replace the example text and numbers with your own.
Related business plan samples
Restaurant Business Plan
A restaurant plan has to prove two things at once: that people in a specific neighborhood want this food at...
Food & HospitalityFood Truck Business Plan
A food truck plan is about mobility and repeatable stops.
Food & HospitalityBakery Business Plan
Bakeries live on early mornings, consistent quality and a loyal neighborhood following.
Food & HospitalityCoffee Shop Business Plan
Coffee shops sell a low-priced product many times a day, so the plan hinges on traffic, ticket size and speed.
Food & HospitalityCatering Business Plan
Catering companies sell by the event rather than by the plate, which makes the sales pipeline and booking...
Food & HospitalitySpecialty Food Product Business Plan
Packaged food businesses such as sauces, snacks, jams and baked goods sold through stores have a different...