What should a motel buyer include in a business plan for a bank?

A bank reading a motel plan asks whether the place can carry its debt in a slow month. Lead with the property: location, room mix, amenities, and who stays there, such as travelling workers, tourists or long-stay guests. Be specific about what keeps those guests coming back, and what could take them away.

Show the history you have verified, and keep it separate from your own forecast. The forecast should include the seasonal low points, a cushion for surprises, and the assumptions behind it written out. A bank will test those assumptions, so state where each came from.

Include a repair and upgrade plan. Banks react badly to hidden capital needs, so list what must be done soon, what can wait, and how it will be paid for. Explain staffing, including who handles the front desk and housekeeping and what you would do if a key employee left. Finish with your own background and a plan for the first months after taking over. Ask the bank how it prefers the plan to be laid out. Keep the plan short enough that a loan officer will actually read it.

Key takeaways

• Describe who stays at the motel and why they choose it.
• Forecast the slow months, state your assumptions and include a cushion.
• List repairs with costs and say how you will fund them.
• Show how the loan is repaid if the slow months run long.