HOTS Strategic Plan
Course code: HMGT311
Course name: Hotel Operations
Year/Semester: 2022-2023
Lecturer: Dr. Yvonne Chen
Office: F202B in Taipa Campus
Email: yvonnechen@iftm.edu.mo
Tel: 8598 2112
Due Date: Please refer to the course schedule on Moodle
Length: Maximum of 8 pages
Prior to the HOTS assessment, you will be required to write a
strategic plan for your hotel. Key areas are described in more detail
below. The few sections that are to be incorporated into your plan
that are NOT included in your word count are the Cover Page,
Table of Contents and References. An example of your plan
format is as follows:
1. Executive Summary
Although this is the first section of your business plan, it should be the last thing that you write. The
executive summary is a concise description of the main points of your plan. Think of it as a ‘hook’
for busy readers and prepare it with a variety of stakeholders in mind, including investors, the bank
manager, employees and the local community. For this assessment the Executive Summary should
be around 350 words.
2. SWOT Analysis
A SWOT analysis is a strategic planning tool that allows you to evaluate the Strengths, Weaknesses,
Opportunities and Threats involved in your forthcoming business venture. Strengths and Weaknesses
are internal to your organization, while Opportunities and Threats arise from the external
environment. This analysis will help you to match external possibilities with internal capabilities and
to mitigate those factors that might hold your business plans back.
Section Page
Cover Page N/A
Executive
Summary 1
Table of Contents N/A
Introduction 2
SWOT 3
Market Analysis 4
Vision Statement 5
Objectives 6
Financial Targets 7
Conclusion 8
References N/A
3. Market Analysis
In this section you need to:
1. Briefly discuss the current market situation.
2. Describe how you feel the market is likely to evolve over the next 3 years in the HOTS
environment.
3. Identify your target market segment or segments and give the reasons for your choice.
4. State clearly why these customers will buy your products and services.
5. Summarize your intended pricing strategies, including how your pricing may change over
time.
4. Mission Statement
The mission statement is a description of your business, not as it is now, but how it will be in the
future. In this section you should describe your business as it will be in 3 years’ time. Include
different perspectives in your account. What will it look like to your customers, your employees, the
bank manager, your investors and the local community? Rather than a list, your vision statement
should be an account, easy to read and inspiring.
5. Objectives
Here you should concentrate on your business’s non-financial objectives. This needs some careful
consideration as to what decisions you intend to make and when (HOTS decisions tabs). Your
business’s objectives are, in broad terms, the results you aim to achieve. They must be SMART:
1. Specific – Keep it simple yet clearly define what you intend to do
2. Measurable – How can you measure your hotel performance in attaining objectives?
3. Achievable – Must be challenging & attainable. Do you have the skills, abilities and
knowledge?
4. Result-focused – What will your final outcomes be?
5. Time-bound – Set timelines for each of your goals. How can you incorporate the 5 x W’s &
1 x H into your plan and the time constraints required for each? Who? What? Where? When?
Why? How?
6. Financial Targets
Set targets for the following:
1. Revenue
2. Rooms’ occupancy %
3. Average Daily Rate
4. RevPAR
5. Gross Operating Profit
6. ROCE%
You are only just taking over this hotel and you have a limited trading history review. There is some
financial information for the last operating year (Year 0). Use the trading history provided by the
previous management team as a starting point, but you will need to update these targets frequently,
at least at the end of each year.
ROCE % is calculated as follows: Total Profit
Total Assets−Total Liabilities = ROCE %
There are numerous ways to calculate RevPAR, here are a few:
Average Room Rate × Occupancy % = RevPAR OR
Total Room Revenue
Available Rooms
= RevPAR
Financial Item Year 1 Year 2 Year 3 Total / Average
Revenue
Rooms’ Occupancy %
ADR
RevPAR
Gross Operating Profit
ROCE %

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