Magnolia House Hotel

Words in [brackets] are blanks you fill in with your own details when you adopt this sample in Supreme Plan AI.

Executive Summary

Magnolia House Hotel is a 14-room boutique hotel in Charleston, South Carolina, owned by Beth and James Calloway. We offer designed rooms, breakfast and evening hospitality, small events and local concierge service.

Why this fits. Travelers want authentic, personal stays, and large chain hotels and vacation rentals do not offer both character and service. A small hotel with warm hosts can build loyalty and strong reviews.

Here is what our numbers show. In Year 1 we plan about 3,000 room nights, 25 events and 3,000 breakfast and evening packages. That brings in sales of $674,000, growing to $1,189,960 by Year 5. We expect a loss of about $34,700 in Year 1, a profit of about $58,700 in Year 2, a profit of about $83,500 in Year 3 and a profit of about $129,500 by Year 5. The property cost, staff pay and the renovation and furnishings are our largest costs, and the plan counts all of them.

We need $440,000 in total. Of that, $315,000 is startup costs (beds, linens and furniture, common areas, a small kitchen and breakfast equipment, a key card system, a renovation, licensing and insurance and a lease deposit), and the rest is cash for the first months. We are putting in $100,000 of our own savings and asking for a $340,000 SBA 7(a) loan.

We are Beth and James Calloway, owners of Magnolia House Hotel. These numbers are estimates based on the assumptions listed at the end of this plan, not promises.

Company Description

Magnolia House Hotel will be a limited liability company (LLC) in Charleston, South Carolina, owned and run by Beth and James Calloway. Beth has worked in hotel operations for years and James has run a restaurant and events business. Together they want to run a small, personal hotel.

What we do:
- Fourteen individually designed guest rooms.
- Breakfast and an evening wine and light bites program.
- Small meetings, weddings and private dinners.
- Local tour and dining arrangements.
- Concierge service and packages.

Who we serve: Leisure travelers, couples and small groups, business travelers and event hosts visiting the Charleston area.

Licensing and insurance. We will register the LLC, lease or buy the property as the plan describes, carry general liability, property and workers compensation insurance, obtain the lodging, food and alcohol licenses the city and state require and follow fire, health and occupancy rules. We keep guest data private and collect hotel and accommodations taxes.

Our promise. A warm welcome, a clean and quiet room and a stay guests remember.

Where things stand today. The business plan, room plan and rate sheet are written. The next steps are the lease, the renovation, the licenses and the grand opening.

Problem & Opportunity

Many travelers want a stay with character and personal service, and large chain hotels feel impersonal while vacation rentals have little service.

What customers run into:
1. Chain hotels that feel the same everywhere.
2. Vacation rentals with no front desk or help.
3. Limited small hotels with real service.
4. Event hosts who need a place for small gatherings.

Why it matters. Travelers value experiences and personal touches, and a small hotel can offer both without a large footprint.

Products & Services

Magnolia House will be the small hotel in Charleston where guests are known by name.

What makes us different:
1. Individually designed rooms.
2. A personal welcome and local knowledge.
3. Breakfast and evening hospitality included.
4. Space for small events.
5. Clean, quiet and safe rooms.

How a stay works:
1. A guest books online or by phone.
2. We welcome the guest and share local tips.
3. The guest enjoys the room, breakfast and evening hospitality.
4. We follow up and invite the guest to return.

Why customers stay. Guests return for anniversaries and weekend trips and recommend us to friends.

Market Analysis

Who we serve:
- Couples and leisure travelers.
- Business travelers and small meetings.
- Wedding and event guests.
- Friends and family groups.

How we sized the market. Our Year 1 plan is about 3,000 room nights, 25 events and 3,000 guest breakfast and evening packages, which is about 59 percent occupancy of 14 rooms. Replace this estimate with your own count of hotels and visitors in your market.

Why now. Travel demand for authentic local stays has grown, and boutique hotels have a loyal following.

Competitive Landscape

What customers can do today:

1. Large hotel chains. Reliable and impersonal.
2. Other boutique hotels. Charming and costly.
3. Bed and breakfasts. Personal and limited in size.
4. Vacation rentals. Flexible and without service.
5. Resorts. Full-service and expensive.

Where we fit. Magnolia House will be a small, personal hotel with warm service and a strong local identity.

Marketing & Sales Strategy

How customers will find us.

Before opening:
- Photograph the rooms and tell the story of the house.
- List on major booking sites and our own website.
- Meet local tour companies and wedding planners.
- Offer introductory rates.

After opening:
- Ask every guest for a review.
- Offer repeat guest offers.
- Host seasonal events.
- Partner with local restaurants and tours.
- Share guest photos with permission.

What we will measure. How guests heard about us, how many visitors book direct and how many guests return.

Operations Plan

How the business will run.

Season and schedule. Spring and fall are the busiest seasons in Charleston, with summer and winter more variable. We adjust rates and packages by season.

Team. Beth manages the hotel. Front desk, housekeeping and maintenance staff work in shifts, and we add staff as occupancy rises.

Quality and safety. The hotel follows fire and occupancy rules, keeps exits clear, has smoke and carbon monoxide detectors in every room and keeps a first aid kit and emergency plan. We screen staff and keep guest data secure.

Equipment. We will buy beds, linens and furniture for the rooms, common area furnishings, a small commercial kitchen and breakfast equipment and a property management and key card system.

Paperwork and money. Guests pay a deposit at booking and the balance at check-in, and events pay a deposit to hold the date. We follow up on anything unpaid after one week. We keep the books in simple accounting software and set aside money for taxes, hotel taxes and insurance every month.

Management & Organization

The people who will run Magnolia House Hotel.

Beth Calloway, owner and general manager. She leads guest service and staff. James Calloway, owner and events and operations lead. He runs events, food and beverage and the books. (Replace this paragraph with your own background.)

Team. Front desk, housekeeping and maintenance staff, growing as occupancy rises, each trained on service and safety.

Office. James handles the office with a part-time bookkeeper.

Outside advisors. An accountant, an insurance broker, an attorney who reviews contracts and a free mentor from SCORE or the Small Business Development Center.

Staff pay in this plan is a full year per person: owner / General Manager $60,000; front Desk Associate $30,000; housekeeper $28,000; maintenance and Events Coordinator $34,000. Replace them with the pay you can offer where you live.

Milestones Narrative

Our goals and when we plan to reach them.
- Before opening (5 months ahead): sign the lease, renovate and furnish the rooms, obtain licenses, hire and train staff and list on booking sites.
- Year 1: about 6,025 room nights, events and packages with a front desk and housekeeping team; $674,000 in sales and a loss of about $34,700.
- Year 2: about 7,040 and higher occupancy; $827,680 in sales and a profit of about $58,700.
- Year 3: about 7,855 and a larger events program; $963,075 in sales and a profit of about $83,500.
- Year 4: about 8,470 and a second events space; $1,085,700 in sales and a profit of about $120,400.
- Year 5: about 8,885 and a plan for added rooms; $1,189,960 in sales and a profit of about $129,500.
Growth depends on winning and keeping customers, so treat the later years as goals, not promises.

What we check every week: occupancy, average room rate, events booked, guest reviews, unpaid invoices and cash in the bank.

Funding Request

How much we need and how we will use it. Total we are raising: $440,000.

How we got that number. The Funding Need Calculator in this plan adds up three things:
- Startup costs of $315,000, listed item by item in the Startup Costs section: $70,000 for beds, linens and furniture for 14 rooms, $30,000 for common area furnishings, $25,000 for small commercial kitchen and breakfast equipment, $15,000 for property management and key card system, $80,000 for renovation and room refresh, $6,000 for LLC filing, licenses and attorney review of lease, $15,000 for general liability, property and workers compensation insurance, first payment, $40,000 for security deposit and first month's rent, $10,000 for signs, photography and website, $10,000 for opening marketing and booking site setup, $6,000 for staff hiring and training, $8,000 for opening supplies and linens stock.
- The cash the business uses before it breaks even, about $0. Sales cover the daily costs once the doors open, so the cash we need up front goes mostly to startup costs.
- A cash cushion of about $122,000: three months of Year 1 operating costs.
- Together, the cash used before break even and the cushion come to about $122,000, and the three pieces add up to about $437,000, rounded up to the nearest $500: $437,000.
We are raising $3,000 more than that, $440,000 in all, to cover a slower first season than planned. With this funding, the lowest year-end cash balance is about $267,000, at the end of Year 1.

Where the money comes from:
- Our own money: $100,000.
- SBA 7(a) loan: $340,000.

Kind of funding we are looking for. An SBA 7(a) loan from a lender that finances hospitality businesses, backed by our savings and the furnishings and equipment as collateral.

How we will pay it back. We expect a loss of about $34,700 in Year 1, a profit of about $58,700 in Year 2, a profit of about $83,500 in Year 3, a profit of about $120,400 in Year 4 and a profit of about $129,500 in Year 5. With this funding, the business has money in the bank at the end of every year of the plan. Our loan is the SBA 7(a) loan at 10.5% over 20 years, $3,394 a month. That payment is already included in our cash flow. We chose these as cautious planning rates; ask the lender for the real rates, which may be lower or higher.

What we are offering the lender: the equipment and a personal guarantee.

A smaller first step, if needed. If we cannot raise the full amount right away, we can start smaller and grow into this plan:
- Phase 1: open with the rooms we can furnish first and a smaller staff, which lowers the startup costs and the loan.
- Phase 2: once the first rooms sell steadily, open the rest and add events and follow this plan.
To plan the smaller start, make a copy of this plan (use Duplicate) and lower the numbers to match.

All numbers in this plan are estimates. We will update them as real results come in.

Appendix Notes

Documents to attach before you send this plan:

- Your resume and a personal financial statement (a list of what you own and what you owe; lenders usually provide a form).
- Business registration papers and your EIN (your business tax number from the IRS, free at irs.gov).
- Your business license, lodging permits and proof of insurance.
- Your lease or purchase agreement for the property.
- Quotes for renovation and furnishings.
- A sample rate sheet and a marketing plan.
If you don't have any of this yet, no worries - let's continue.

The assumptions behind our numbers (change them in the Financials section to match your own):
- Room Nights: about $185 in Year 1, rising to $208; about $38 in direct costs, rising to $43; about 3,000 in Year 1, growing to 4,400.
- Events and Meetings: about $1,400 in Year 1, rising to $1,576; about $400 in direct costs, rising to $450; about 25 in Year 1, growing to 85.
- Breakfast and Evening Packages (per guest night): about $28 in Year 1, rising to $32; about $11 in direct costs, rising to $12; about 3,000 in Year 1, growing to 4,400.
- A room night averages about $185, an event about $1,400 and a breakfast and evening package about $28 per guest night.
- Prices rise about 3% a year.
- Equipment ($140,000 in Year 1) covers beds, linens and furniture for the rooms, common area furnishings, a small commercial kitchen and a property management and key card system, and later years ($15,000, $20,000, $15,000 and $20,000) replace and add equipment.
- Pay (a full year, per person): owner / General Manager $60,000; front Desk Associate $30,000; housekeeper $28,000; maintenance and Events Coordinator $34,000.
- Other yearly costs in Year 1: property Lease or Mortgage $120,000, utilities and Maintenance $36,000, insurance $18,000, marketing and Booking Commissions $36,000, software and Admin $10,000. These grow between 3% and 5% a year.
- Customers and payers pay about 15 days after service, so at the end of Year 1 about $26,960 is still owed to us. Income tax at 21%.
- Every dollar amount is an estimate. Replace them with your own quotes and research.

Startup Costs