12 Mistakes Most Hotel Industry Entrepreneurs Make When Pitching their Prospect to Angel Investors [Free PDF Attached]

Hotel industry entrepreneurs often make the mistake of thinking that their business is just like any other business. They assume that their pitch will be well-received by angel investors if they can simply explain the company, its product or service, and how it makes money. Thus, grab our ready-made Hotel Industry pitching service that covers what is essential!

However, hotel industry entrepreneurs often forget to highlight their businesses' unique aspects , which can be a big mistake when pitching to angel investors who are looking for investments in high-growth industries.

In this blog post, we'll outline mistakes most hotel industry entrepreneurs make when pitching their prospects and provide tips on how you can avoid them. Read on to learn more!

What's Next!

Since Hotel business is one of the most lucrative businesses today , it is not surprising that many people are looking for ways on how to raise funds for hotel business. Raising funds for such start-ups becomes fun, as one requires a competent Hotel Investment Pitch Deck.

Hotel investment can be looked at two ways.

The first way is more of an investment in the tangible assets like land, building or even equipment and furniture needed to operate a hotel. The second way is more of an investment in intangible assets such as intellectual property, branding and even goodwill.

The hotel industry is one of the most significant services industries & the Hotel business majorly contributes to the hotel industry growth, which in turn helps in poverty reduction across various regions.

The hotel industry has increased its market value from $703,615 million to $808,600 million at a CAGR of 3% . The advanced technological advancement and changing trends are significant factors for this continuous journey towards growth.

What Excites Investors To Capitalize in Hotel Businesses?

The hotel industry caters to the need of tourists and helps them achieve economic development by providing employment opportunities and revenue generation . Thus, the hotel sector plays an essential role in international and local trade.

Via Giphy

Hotel investment is one of the fields where investors like to invest money. A hotel project can be started by spending a very low or small amount of around $10,000 to $15,000, but it needs more time to grow and succeed in its business .

Hotel industry investment can be highly profitable depending on the strategy employed by the investor. The hotel business is a highly capital-intensive venture , making it essential for investors to seek funding from reliable sources.

Impact of Covid-19 Pandemic on Hotel Businesses

The recent pandemic, Covid-19, has discouraged people from traveling and staying in hotels for leisure and business purposes.

There are still opportunities in the Hotel industry. However, they will be more difficult to find than ever before. Hotel start-ups may face an exceptionally tight market until consumers trust that this pandemic is not coming back anytime soon.

To cast your net, further Hotel start-ups may look into foreign markets. The Covid-19 pandemic does not seem to have hit as hard, such as Asia and Europe.

Finally, Hotel start-ups will need to market their new Hotel to nearby cities. That will require a lot of funding. Thus, we have built up this insightful Hotel Industry pitch for your convenience . Developing connections with nearby businesses and partnering up with local events to get more business through local tourism.

With more customers comes increased revenue for Hoteliers . Which can be used to develop their Hotel further and make it a better place to stay for future customers.

Hotel start-ups are beginning to try many ways to attract more customers into their establishment. They offer discounted rates at random times or through specific mediums such as online marketing campaigns.

Here are Twelve (12) Mistakes That You Can Avoid When Drafting a Competent Hotel Industry Pitch

Pitching Hotel startup to investors smartly and make sure your deck is top-notch.

What Separates a Good Deck From an Exceptional One? When You Avoid Making the Same Mistakes done by others.

We have described and reviewed important elements & slides from this pitch deck and explain here for your convenience. Don't miss out on the undermentioned elements in your pitch deck.

Click here to explore the world's largest collection of Pitch Decks!

Mistake 1: Not Putting Forth Cover Page of the Deck

This is a kind of mistake that even experienced entrepreneurs make. They perceive that the angel investors are just interested in the revenue, business model, etc.

Yes, it is vital to showcase a brilliant cover slide for your pitch deck. It must include the name of your Hotel and an appealing image of it.

Make a significant impact from this slide and leave an authoritative mark about your Hotel in investors’ minds.

Download this 100% editable slide from Hotel Industry Pitch

Mistake 2: Missing Out Table of Contents

Never underestimate the importance of the TOC slide in the pitch deck. As it marks an impression on the investors about your planned research.

Step-by-step take things forward in front of them. Present table of contents dedicatedly to angel investors.

In this slide, we have mentioned 15 points covered in the complete pitch deck . Make sure that you read them out while pitching.

In fact, you can add or remove the points according to your business relevance!

Download this 100% editable slide from Hotel Investment Pitch Deck

Mistake 3: Not Effectively Presenting Overview of the Hotel

Another mistake even done by significant entrepreneurs is overlooking the need for this slide.

The Overview slide illustrates Hotel's vision, mission, headquarters, portfolio distribution, meeting space, etc. Don't forget to define the services provided by your Hotel.

Give the distribution using pie charts and exhibit the ratio to each element in percentage.

Present each detail related to headquarters in a table with numbers.

Download this 100% editable slide from Hotel Industry Pitch

Mistake 4: Overlooking Nationally Diversified Portfolio of Hotel

The slide aims to exhibit the diversified portfolio of your Hotel chain network across the USA. It includes details like the number of rooms, hotel name, EBIDTA , etc.

Whole map of the USA is presented in this slide through which you can exhibit the location of every Hotel. With its complete details like hotel name, rooms, city name, picture, and more.

One can even mention the brands' Hotel's are sponsored by.

Download this 100% editable slide from Hotel Industry Pitch

Mistake 5: Not Interlinking the Problem Slide

You can't afford to make this type of mistake while pitching the idea. Stating the problem to the investors gives them a brief idea about the pain points faced by the customers.

The problems mentioned in the slide are high prices, bad experiences, amenities, etc. These issues are vital to present in the pitch deck so that the angel investors decide on whether you have the capability to solve them or not.

Explain each problem to investors, like 68% of hotels cannot meet customers' wants. Similarly, 74% of customers want rooms with a luxury feel, etc.

Download this 100% editable slide from Hotel Investment Pitch Deck

Mistake 6: Missing Out the Solution Slide

Not interlinking the solution after explaining the problem is a blunder. Never miss out on this slide in your pitch deck.

The slide aims to grab the maximum attention of the potential investors here. As you can address the information about the solution and the key offerings .

One can even add a demo video of your product and the offerings related to it. Moreover, add the solutions you can give to customers like restaurants & bars facility, economic boutique hotel services, aesthetic design, urban location, etc.

Download this 100% editable slide from Hotel Investment Pitch Deck

Mistake 7: Ignoring Importance of Target Group of Customers Slide

Don't miss out on the importance and presence of mentioning details regarding the target group of customers. Some significant entrepreneurs even make this mistake.

Present the investors about key statistics of target customers groups with details like age, gender, interests, etc.

Add bullets about target customers' characteristics , pie chart for age category segregation , bar graph for exhibiting customers' interests , etc.

Showcase each detail creatively that highlights the data and keeps investors' interest lively!

Download this 100% editable slide from Hotel Industry Pitching

Mistake 8: Overlooking Amenities & Experiences Offered by Our Hotel

Never ignore the importance of the experiences customers write or say about your Hotel or other offerings. And include this feedback in your pitch deck for investors.

Exhibit information related to amenities and experiences that customers will get in your Hotel. Also, showcase the USP of your offering. Mention the statistical information covering building design and area .

Give bullets to the unique experiences you offer to customers. Provide measurement for event room, hostel area, F&B area, etc.

You can even present floor-wise details of your Hotel. Eg, there is a club, cafe, lobby, etc., on the ground floor, and likewise.

Download this 100% editable slide from Hotel Investment Pitch Deck

Mistake 9: No Business Model of the Hotel

The business model slide will explain your company's revenue, sourcing details , accommodation, event spaces, services, and more to the investors.

Different revenue sources could be like 2 categories of accommodation , one private room with two beds and one dorm room with eight beds. Another source could be rental laundry service, event spaces in rooftop bar and conference hall, etc.

Include all these points clearly in the pitch deck for the genuine raising of funds!

Download this 100% editable slide from Hotel Industry Pitch

Mistake 10: No Marketing Plan Slide

The marketing plan slide cannot be missed out while pitching your idea to the investors. It portrays the plan that your company will impose to grow the business. Because the main focus of your Hotel is to stay competitive and acquire customers .

For this, present the marketing plan based on X-axis and Y-axis elements. Exhibit launch, growth, and maturity on X-axis that will give a pathway for the future roadmap to your business.

Similarly, display, focus, and channel on Y-axis will help you decide what marketing to choose from influencer marketing, referral programs, affiliate networks, etc.

Give a clear vision for yourself and your company to investors. Make them sure about your USP in standing out and differentiated in the market .

Download this 100% editable slide from Hotel Investment Pitch Deck

Mistake 11: Not Having a Slide That Illustrates Key Financial Projections

One can't miss out on the financial projections slide from their pitch deck. This slide presents the financial forecasts of your company. The KPIs mentioned here are cash flow, profitability, etc.

The slide displays annually clustered bar graph for revenue breakdown of different products offered to customers. It also exhibits yearly line chart for the profitability of EBITDA and revenue.

Showcase yearly line chart for the cash flow of operating, investing, financing, and net cash flow activities of your company. Don't forget to mention yearly line chart for the cumulative cash flow of cash receipts tax payment and cash payments financing.

Download this 100% editable slide from Hotel Industry Pitch

Mistake 12: Do Not Forget the Investment Ask

No wrap-up of the pitch deck is possible before putting forth the capital ask of your company. The slide displays information to investors on how much money you seek and how long this financing will last .

Exhibit the proper amount in dollars you are seeking at the early financing stage. Give them the number for the funds you raised in the past and those investors.

Showcase the facts and reasons for how many months this round of funding will last , etc.