5Star Hotel Business Plan_MG321 Major Assignment

7/24/2019 5Star Hotel Business Plan_MG321 Major Assignment

1/35

Name & ID:Fonmanu, Melanie S11073948Harshmeetal Harsha s110960Na!u"a #roni s11074178$ersoni %rae s11100093

#o'(entral )ai* +esortusiness )lan


2/35

(ontentsI- #.euti!e Summar/---------------------------------------------------------------------------------------------

II- usiness Desrition--------------------------------------------------------------------------------------------4

III- Statement on Sustainailit/------------------------------------------------------------------------------2#n!ironmentall/ (onsiousness------------------------------------------------------------------------------2

#onomiall/ Sustainale----------------------------------------------------------------------------------------6

Soiall/ Sustainale------------------------------------------------------------------------------------------------7

I$- Maretin----------------------------------------------------------------------------------------------------------7

M5+# NI(H# 5ND M5+# SH5+#----------------------------------------------------------------------7

(M)#II$# 5N5SIS-------------------------------------------------------------------------------------------9

)+I(IN% )I(-------------------------------------------------------------------------------------------------------9

)remium riin--------------------------------------------------------------------------------------------------- 9

un"le riin------------------------------------------------------------------------------------------------------9

M5+# S+5#%------------------------------------------------------------------------------------------------10

$- erations------------------------------------------------------------------------------------------------------------ 11

;onin------------------------------------------------------------------------------------------------------------------- 11

a.-------------------------------------------------------------------------------------------------------------------------1

Failities & #ient ?ater (onsumtion--------------------------------------------------------------------------------- 14

+e"ue #ner/ (onsumtion--------------------------------------------------------------------------------12

?aste +e"ution----------------------------------------------------------------------------------------------------16

+e"ue (aron Footrint---------------------------------------------------------------------------------------16

Biodiversity Hotel-------------------------------------------------------------------------------------------------------17

$I- Manaement------------------------------------------------------------------------------------------------------- 18

$III- Finanial )lan-----------------------------------------------------------------------------------------------------0

ale 51---------------------------------------------------------------------------------------------------------------1

ale 51-3--------------------------------------------------------------------------------------------------------------1

ale 51-4--------------------------------------------------------------------------------------------------------------1

Senario 5nal/sis-------------------------------------------------------------------------------------------------- 2

Finanin lan------------------------------------------------------------------------------------------------------- 6

I@- (ritial +iss Sement-----------------------------------------------------------------------------------------6


3/35

)rie uttin / ometitors----------------------------------------------------------------------------------6

Maretin--------------------------------------------------------------------------------------------------------------6

5n/ otential un=a!orale'in"ustr/ Ai"e tren"s----------------------------------------------------7

Damae "ue to Natural Disaster--------------------------------------------------------------------------- 7

)h/sial, reulator/ or reutational riss "ue to limate hane--------------------------7

Desin or manu=aturin osts in e.ess o= estimates------------------------------------------7

Sales roBetions not ahie!e"------------------------------------------------------------------------------8

Hotel "e!eloment she"ule not met-------------------------------------------------------------------8

)oAer-------------------------------------------------------------------------------------------------------------------- 8

?ater---------------------------------------------------------------------------------------------------------------------9

ransortation------------------------------------------------------------------------------------------------------- 9

Sulier Disrution------------------------------------------------------------------------------------------------9

)olitial Instailit/------------------------------------------------------------------------------------------------- 9Har!est Strate/------------------------------------------------------------------------------------------------------ 30

Manaement (hane-------------------------------------------------------------------------------------------- 30

Hotel C%oin )uli-----------------------------------------------------------------------------------------------30

Sellin the usiness----------------------------------------------------------------------------------------------30

Manaement u/out--------------------------------------------------------------------------------------------- 31

@II- Milestone She"ule---------------------------------------------------------------------------------------------33

iliorah/------------------------------------------------------------------------------------------------------------- 34


4/35

I- #.euti!e Summar/

A 5 star hotel offering a Fiji Green Eco experience, Eco-Central Pacific esort !ill "e o!ned "y

the Fon#an$, %av$da, Harsh#eetal and &ersoni Partnership' (he resort vent$re is anticipated tooperate "y )*+ and !ill "e located in the heart of the a"eto .o$ntains in %adi a#idst the

green and l$sh rainforest'

(his ne! hotel vent$re is anticipating to "ring into Fiji/s to$ris# ind$stry a ne! green ad$lt

excl$sive experience that no other hotel of a 5star stat$s offers !ithin the co$ntry' .ar0et

offerings !ill incl$de l$x$rio$s 5star pac0ages incorporated !ith a totally green and rainforest

experience $p in the #o$ntains' 1ith a selective #ar0eting strategy, Eco-Central Pacific esort

intends to attract those of the !ealthy and $pper-class societies !ho are o$r target #ar0et that areloo0ing for an excl$sive green experience'

1ith an initial invest#ent of 234,44,*6*, resort sales are forecasted to "e a fig$re of

26*,55+,5** in the first year !hich !ill increase "y 2+),4+,+3 "y the third year' Ann$al net

inco#e is anticipated to rise to 2+,634,54 in three years' 7n addition to this, scenario analysis

of the "$siness ill$strates a positive net inco#e can "e achieved if sales vol$#e do no drop #ore

than )58 of the forecasted fig$re' 9verall, the Eco-Central Pacific esort is a feasi"le and

profita"le project to invest in, as given the #ar0eting initiatives and reven$e and financialfig$res'

Financial Highlights by end of 2019

Annual Sales 25:,55:,)+3

Annual Net Income 2+,634'54

Return on Euity +6'38


5/35

II- usiness Desrition

(he "$siness na#e Eco-Central Pacific esort !as chosen "eca$se it signifies the direction ;to a

sophisticated long-ter# !orth of o$r property !ith an environ#entally-friendly properties !hose

#anagers are 0een to organi 9%E A%? 9%@ EA(H' 7t also ai#s to

#aintaining staff and repeat c$sto#ers lasting as #anage#ent evidently cares for their vigor and

!ell-"eing, Green Hotels Assosciation, )*+5'D

(he Hotel and (o$ris# 7nd$stry in Fiji is one that has #ar0edly developed over the past )*years'

A hefty share of the ind$stry is #otivated "y the private sector' ;(o$ris# $nder!rites ro$ghly

+'* percent toGDproviding direct and indirect jo"s to approxi#ately 6*,*** people' 7n )*+), it

!as projected that gross inco#es fro# the to$ris# ind$stry !as 2+':"n, !hich is aro$nd +'

percent of G?P' (here are presently 34 hotel lodgings co$ntry!ide to acco##odate for

to$rists of !hich *8 are occ$pied, 7nvest#ent Fiji, )*+5'D

(o$rist infl$xes into the co$ntry is pro#ising !ith to$rist arrivals acc$#$lating progressively

over the recent years !ith an $ps$rge of :33,5)* to$rist entrances fro# year )***)46,** to

)*+)33*,54*' (o$ris# Fiji is loo0ing to!ards the north to the #o$nting Asian states for

$pco#ing develop#ent forecasts, na#ely China, o$th orea and (ai!an' .oving on!ard,

(o$ris# Fiji also devising to re"rand !ith the #otto Fiji, !here content#ent finds yo$/ to

s$"stit$te the nation/s existing Fiji .e/ cr$sade' 1ith govern#ent assistance (he (o$ris#

ind$stry is set to "ring in a target of + #illion visitors "y )*+3.

;(he Fiji to$ris# sche#es involved nat$ral c$lt$ral, cr$ising, !ater sports resort activities,

yachting, s$rfing, diving, !edding honey#oon, shopping, sports and co##$nity village to$rs'

9penings availa"le in the (o$ris# sector are Agro (o$ris#, pa (o$ris#, Health (o$ris#,

port (o$ris#, %a$tical (o$ris#, etire#ent esort &illage, 7ntegrated esort, and esorts

&illas, 7nvest#ent Fiji, )*+5'D

At Eco- Central !e !ill provide a variety of services that !ill "e tailored to s$it and satisfy the

hoteliers trip #a0ing it inti#ate, !orth!hile, f$n, relaxing, #e#ora"le and enjoya"le !ith the

incl$sion of o$r l$x$rio$s spas go$r#et resta$rant, green activities, and friendly services'


6/35

III- Statement on Sustainailit/$staina"ility involves the $se of nat$ral reso$rces !ith a #indset of preserving the# for o$r

generations !itho$t totally exploiting the#' As a hotel, it is i#portant that !e consider

s$staina"ility in o$r policies and #ission state#ents as it provides $s !ith a direction on ho! !e

are to go a"o$t !ith operations' According to the >nited %ations eport ;9$r Co##on F$t$reD,

$staina"le ?evelop#ent is the development that meets the needs of the present without

compromising the ability of future generations to meet their needs' 1ith this definition in

#ind, o$r hotel #$st carry o$t its operations in s$ch !ays that are consistent !ith this state#ent'

7n going a"o$t o$r "$siness, Central Pacific Hotel !ill "e g$ided "y the follo!ing s$staina"ility

principles

#n!ironmentall/ (onsiousness1e are co##itted to carrying o$t #eas$res that are environ#entally s$staina"le in o$r

operations to red$ce the i#pact on o$r depleting reso$rces' 7n o$r efforts to practice

environ#ental s$staina"le develop#ent !e !ill foc$s on red$cing o$r energy cons$#ption "y

installing energy saving light "$l"s, energy efficient refrigeration and solar energy cons$#ption'

(hese #eas$res !ill assist $s in contri"$ting to the saving of o$r energy reso$rces'

F$rther#ore !e are also co##itted to the efficient cons$#ption of !ater at the lo!est levels' By

installing lo! flo! sho!ers and taps and practicing rain!ater harvesting, !e are dedicated to

$sing !ater efficiently and saving !ater in o$r day to day activities' Co##it#ent to red$cing

car"on footprint is also a principle !e !ill strive for, as incentives !ill "e provided for g$est

!ho are a"le to red$ce their car"on footprint thro$gh the #onitoring of car"on footprint "y $se

of car"on footprint calc$lators installed in roo#s'

1aste red$ction is another aven$e !e !ill p$rs$e in the Hotel' (hro$gh the $se of

"iodegrada"le plastics, practicing of re$se and recycling and the install#ent of environ#ent

friendly "iolytic degrada"le se!erage syste# to process ra! se!er discharge fro# the

Hotel, #a0es the !aste har#less as it leaves the hotel and th$s not having an i#pact on the

environ#ent'


7/35

9$r vent$re is to "e the first 5 tar Eco Hotel in the co$ntry and !e are co##itted to "eing

a ;Green HotelD that !ill practice s$staina"le develop#ent thro$gho$t' 7n o$r operations !e

!ill set aside a 5 acre land specifically for the p$rpose of s$pplying o$r resta$rants !ith

fresh and healthy prod$ce' %ot only are !e saving #oney, "$t also red$cing car"on

footprint no transportation, th$s no e#ission, red$cing o$r dependency on o$tside

s$ppliers and at the sa#e ti#e efficiently #a0ing $se of availa"le reso$rce'

#onomiall/ Sustainale(he Hotel is also 0een to "e econo#ically s$staina"le in !hatever !ays it can' .ajority of

the #aterials for the constr$ction of o$r Hotel !ill "e so$rced fro# local s$ppliers and staff

#e#"ers !ill all "e so$ght locally excl$ding the top level #anagers and fe! other

positions' (his allo!s for reven$e earned #oney to circ$late !ithin o$r econo#y and not "e

lost to lea0ages' F$rnit$re and eI$ip#ent $sed are all locally #ade prod$cts and !e !ill

also enco$rage o$r g$ests to p$rchase Fiji .adeD prod$cts that are to "e displayed in o$r

retail shops' F$rther#ore thro$gh o$r ti#ely "$s sh$ttle sched$les to the airport and aro$nd

%adi, !e enco$rage o$r g$ests to #a0e $se of this service and not hire vehicles as this

!o$ld "e econo#ically efficient' Also !e set aside activities for o$r staff s$ch as sports and

"ili"ili races to involve the# in and also free #edical care' (his has proven to "e effective

as healthy !or0ers are proven to "e prod$ctive #e#"ers of society' By practicing all these

!e are a"le to earn for o$rselves and at the sa#e ti#e contri"$te s$staina"ly to the !elfare

of the econo#y and other 0ey sta0eholders'

Soiall/ Sustainale9$r ai# for this vent$re is to also "e ocially $staina"le in !hatever services !e provide'

ocial s$staina"ility i#plies a syste# of organi


8/35

Hotel, "$t !e e#phasis that they go to their respective fa#ilies and co##$nities and ed$cate

the# a"o$t living s$staina"ly' (his !ill "ring a"o$t great a!areness on this iss$e and allo! the#

to appreciate the i#pacts o$r actions today can have on $s and the f$t$re generations'

Finally o$r Hotel is dedicated to giving "ac0 to society' 1e see that Corporate ocial

esponsi"ility is vital for o$r existence' 7n doing so, !e are loo0ing at assisting yo$ths of near"y

villages !ith sports facilities and eI$ip#ents, #ainly r$g"y gear and sponsoring charity events

aro$nd %adi' 7n practicing CJ !e "elieve that o$r "$siness can have an i#pact on the lives of

people not so privileged !ith "enefits #any #ay enjoy' By doing this !e portray a good pict$re

of o$r vent$re and is a positive indication to o$r 0ey sta0eholder the c$sto#ers'

I$- MaretinEco Central Pacific Hotel is !illing to start !ith a "ig "ang in the #ar0et' And !e are located in

the "ea$tif$l and $nto$ched land of a"eto, %adi'

M5+# NI(H# 5ND M5+# SH5+#Before starting $p !ith the constr$ction activities, general s$rvey !ill "e done in societies and

!ith respective to$rists' A list of I$estionnaire !ill "e distri"$ted to people and it !ill state !hat

types of services they expect fro# the ne! vent$re, !hereas personal intervie!s !ill also "e

carried o$t to see ho! people respond to I$estions and !hat they call a l$x$ry and divine

service' o#e I$estions that can "e as0ed co$ld "e these

As an individual where would you willingly want to spend your holidays?

And whom you want to spend time with?

What type of environment or atmosphere you want to spend your time?

And what do you expect the services to be like when you hear the word !"# $%A&?

7n relation to the intervie!s and I$estionnaires distri"$ted, the response fro# the people !ere

that they !ant an exotic place for their stay at a hotel !here services are provided at their "est

level !ith excl$sive roo# service, c$sto#ers have really high expectations and #ost locals, they

get disappointed as they are not treated fairly, their co#plaint is that in #any hotels they have

"een to, the !or0ers attend to to$rists first and later attend locals, their arg$#ent is that they pay

the sa#e fee charged as the rest of the visitors so they sho$ld "e eI$ally treated a#ong the#' 7t


9/35

!as also noted that #ainly people !ant to spend their ti#e !ith the loved ones s$ch as a co$ple'

(he decision !ill "e #ade on cons$#er preferences for a happy and satisfied c$sto#er'

(he mar!et share!ill "e planned and allocated and price attri"$tions !ill "e #ade to convert

insights into action' (ravelling and leis$re activities are planned accordingly as the hotel !ill

have t!o helicoptersas the resort is located $p in the hills in a"eto, %adi' 9ne helicopter is for

sightseeing and the other is for e#ergency cases' .ini "$ses !ill also "e acco##odated for

people !ho prefer "$s rides, in addition !e !ill have a li#o$sine for "$siness expertise fro#

overseas or high ran0 "$siness professionals'

Eco-friendly environ#ent for the c$sto#ers availa"le at all ti#es on the nat$res pea0' (he

activities availa"le for to$rists at close proxi#ity are

Kip linings in the hills

A to$r to the garden of the leeping giants

.$d "ath

!aterfalls

hi0ing and tre00ing

c$lt$ral centre

river 0aya0ing

horse riding

hot springs

picnics

range rovers for hire

paint"all and fishing

(M)#II$# 5N5SISAs a ne! vent$re in the #ar0et o$r co#petitions are not ind$strialised resorts "$t rather a

vent$re that has care and concerns a"o$t the nat$re and foc$s on exploring the "ea$tif$l

environ#ent of a clean at#osphere' (he pricing leadership is deter#ined "y the l$sh l$x$ry

services and the I$ality leadership is o"tained "y the nat$re itself' And thro$gho$t so #any years

hotel o!ners are foc$sing on #a0ing profits and hardly anyone tries to practice s$staina"ility at

the sa#e ti#e' Fe! years "ac0' (utrigger on the )agoon practiced going green, and they


10/35

distri"$ted "io-degrada"le "ags to people in society and other relevant places' (his a!areness

!as a s$ccessf$l one as 9$trigger is one of the reno!ned hotels in Fiji' B$t o$r #ain foc$s is to

adapt to techniI$es that co$ld save the f$t$re generation, to "e #ore a!are of cli#ate change

and its conseI$ences and do o$r "est to "e eco-friendly in ter#s of o$r services, reso$rces and

facilities provided'

)+I(IN% )I(5 G$estroo#s +5 l$x$ry s$ites

)* $pper scale "2000

)* $pscale "1#00

6* #id scales "9#0

+5 l$x$ry s$ites "$000

(he "est s$ita"le pricing strategy for Eco- Central esort is the premium pricingand the bundle

pricing'

)remium riin- a high price is set that reflects the excl$siveness of the esorts prod$ctsJ

this is d$e to the I$ality and efficiency availa"le for the c$sto#ers'

un"le riin- the resort offers "$ndles of prod$cts at a red$ced price' A !ee0ly pac0age

and !ee0end pac0age is offered for a stay in the esort !hich "eco#e #ore flexi"le for

c$sto#ers to spend their #oney'

M5+# S+5#%%adi 7nternational airport is a geta!ay for to$ris# ind$stry in Fiji' (he ta"le "elo! sho!s the

visitor arrivals in Fiji in )*+: and )*+6 fiji visitors "$rea$ statistics, )*+:-)*+6

"!$!%(& A&&!"A)$' A"#&AG# )#*G%+ ( $%A, - #A&*!*G$

201$ 201%

&isitor arri'als(numbers) 35,*3 5+:,++*

&isitor de*arture

(numbers)

36,):6 5*,**


11/35

A'erage length of stay

(days)

4'5 4'63

+otal 'isitor days 3+6),4:4 635,**

Earnings from tourism

(F,- millions)

+:+') +*:5'

(he )*+6 to$rists list ignores the #onth of 9cto"er, %ove#"er and ?ece#"er' o it can "e noted

that the to$ris# ind$stry is l$crative in o$r co$ntry' 1e targeting to$rists level to "e at its

increasing so Fiji/s econo#y co$ld gro!'

A-&ER+ISIN. /AN

Eco Central Pacific Hotel !ill create a cost-effective ca#paign foc$sed on p$"licity and direct

#ar0eting'

Before lodging the official "$siness, it !o$ld "e favo$ra"le as to advertise on radio and (&

social #edia plans' (his !ill "e a co#petitive factor and the general p$"lic !ill "e infor#ed

a"o$t the resort and can do f$rther research on o$r !e"site for the services provided' 9$r

!e"site !o$ld "e !!!'ecocentralpacific'co#'fj' (he hotel "$siness #ainly foc$ses on the

!ealthy

Honey#ooners

@ocals !ho are ne!ly !edded and are cele"rating anniversaries

And !e also acco##odate "$siness gro$ps !ho co#e for "$siness p$rposes and have

"$siness re$nion'

o#e potential advantage the resort has over its #ain co#petitors are

- )**acres of l$sh $nto$ched rainforest

- An excl$sively ad$lts geta!ay

- esort spa

- esta$rant +** sits !ith !orld-reno!n chefs

- : h$##er jeeps for "$#py ride in the hills

- Ballroo# dance !ill "e on Friday, at$rday and $nday nights' For co$ples and ad$lts

and it is also availa"le for so#eone to hire for a night for their private f$nctions and

dances !ith friends and fa#ilies
http://www.ecocentralpacific.com.fj/http://www.ecocentralpacific.com.fj/http://www.ecocentralpacific.com.fj/


12/35

1e !ill practice g$est loyalty progra##es #anaged "y Hilton hotel that #a0es drea# a reality

g$ests !ill "e re!arded or $se Hono$r/s points for $pgrades and p$rchase pre#i$# roo#s !ith

points

$- erations

trategically located in the a"eto #o$ntain range in %adi, the hotel site !ill overloo0 over +**

freehold acres of l$sh tropical rainforest' %estled !ithin the peacef$l, private and tranI$il

#o$ntain side, the hotel site is +' 0ilo#etres fro# the #ain L$eens High!ay and +60# fro#

the %adi 7nternational Airport !hich is approxi#ately an + to )*#in$te drive'

$pple#entary to the estate is the antiI$e and nat$ral heritage of the garden of the sleeping

Giant/ !hich !ill "e of one the hotel/s locational attractions' (he sleeping garden is 0no!n for

its :*- 6* species of rare orchids and other flora $niI$e to Fiji' 7t is also a sanct$ary to so#e of

the co$ntry/s endangered species of fa$na' Additional locational "enefits are to$rist attractions

s$ch as #$d pools and hot springs that are in close proxi#ity to the hotel site'

;onin

(he acreage sits on an agric$lt$ral


13/35

toc0 Exchange' And a chargea"le tax rate of ;+'58 !ith the entreprene$rs having 6*8 of the

shareholding str$ct$re, Patel, )*+:'D

Failities & #


14/35

5ess to transortationFor convenient p$rposes, a to$rist sh$ttle !ill "e provided "y the resort for !elco#ing visitors

fro# the Airport, ta0e g$ests on sched$led visits to near"y to$rist attractions and transport the#

to Port ?enara$ for other o$tside activities' For g$ests that !ill "e occ$pying o$r l$x$ry s$ites

there are options of private ange over >&/s and li#o$sine pic0$ps or transfers "y helicopter'

?epart$re Pic0-$p ?rop-off

%adi 7nternational air-port (o "e confir#ed "y the visitor (o "e confir#ed "y the visitor

Eco-Central esort- #orning +*65 a# +)65 p#

Eco-Central esort - afternoon )65 a# 665 p#

9verall, the resort !ill have + sh$ttle, a private li#o$sine, and three ange over >&/s for

those that !ish to rent o$t a vehicle' For g$ests !ho !o$ld li0e to explore the $nto$ched terrain

or go on picnics on the #o$ntainside transportation "y horse"ac0 !ill "e availa"le in s$pport of

o$r environ#ent s$staina"ility stand for red$ction of car"on e#issions and also for that a$thentic

Fiji Green experience' Co#ple#entary to this service is the provision of helicopter transfers that

!ill "e provided "y Heli (o$rs Fiji' 9$tside services of transportation is also per#itted !ith the

added factor of "eing close to p$"lic transportation'

$I- Sustainale De!eloment Measures o= )er=ormane

$staina"le ?evelop#ent is an iss$e !hich not only is "eing advocated "y govern#ent and %on-

Govern#ental 9rgani


15/35

(he follo!ing paragraphs !ill disc$ss environ#entally s$staina"le #eas$res of perfor#ance that

!ill "e $nderta0en "y Eco-Central Pacific esort to #ini#i


16/35

Finally exercising the Green @a$ndry Grogra#/, this leaves c$sto#ers that stay for #ore than

one day the choice to decide ho! often they !ant the hotel to !ash their to!els' (his approach

saves a lot of !ater and #oney "y not !ashing hotel to!els reg$larly'

+e"ue #ner/ (onsumtion

7n atte#pting to red$ce the a#o$nt of energy cons$#ption, Eco-Central Pacific esort !ill

$nderta0e certain practices to save energy' (hese are

>se of energy saving light "$l"s all thro$gho$t the hotel instead of the traditional light "$l"s

!hich provide the sa#e "rightness and co#fort "$t at lo!er cost and lo!er energy cons$#ption'

>se of #otion detectors placed at strategic points or areas that are less freI$ently $sed s$ch as

the hall!ays and o$tdoor areas aro$nd the hotel !ith ti#ers to detect #ove#ent' (his provides

light only !hen needed and saves energy' Also training !ill "e provided to staff to "e

environ#entally s$staina"le to t$rn off lights in $nocc$pied roo#s'

Fitting of hotel roo#s !ith centrali


17/35

@ess $se of plastic "ags and #ore of eco-friendly carry "ags

eplacing la$ndry "ottles !ith "iodegrada"le "ags

By $sing e-invoices for "oth o$r s$ppliers and g$ests, !e red$ce paper cons$#ption and !aste

-is*osing of the Hotels organic 5aste to be com*osted for subseuent use as fertili6er in

our hotel organic gardens

ecycling "y providing g$estroo# recycler "as0ets for ne!spaper, !hite paper, glass, al$#in$#,

card"oard, and plastic

Provide recycling "ins "oth in p$"lic areas i'e', poolside, in the 0itchen, and in the "ac0 office

incl$ding one at each des0 to #a0e recycling as easy as possi"le'

Have environ#ent friendly "iolytic degrada"le se!erage syste# in place to process ra! se!er

discharge fro# the Hotel

+e"ue (aron Footrint

Car"on footprint is the s$# of all the greenho$se gases prod$ced in perfor#ing an activity, and

serves as a general indicator of an activity/s environ#ental i#pact' (he resort !ill engage in

practices that !ill help red$ce o$r car"on footprint' (hese are

Having a car"on footprint calc$lator so that clients can chec0 their car"on footprint

d$ring their stay so they are a"le to i#prove on the#'

eplacing technologies s$ch as gasoil and B(K !ith ne! and i#proved #eas$res

i#ple#ented to red$ce C9) e#issions'

Provide incentives for freI$ent c$sto#ers !ho d$ring their stay are a"le to red$ce their

car"on footprint' (his allo!s the# to "e deter#ined to red$ce their car"on foot print

!henever they visit'


18/35

Biodiversity Hotel

Being an eco-hotel o$r o"jective is to carry o$t o$r "$siness !ith the $t#ost respect for the

environ#ent in the designing and #anage#ent of o$r facilities' 7n "$ilding Eco-Central Pacific

esort, factors that !ill "e ta0en into acco$nt are

Care !ith clearing to avoid loss of species at the start of constr$ction !or0'

Creation of a n$rsery to gro! variety of plants

Ca#paigns carried o$t to favor the gro!th of the pop$lations present in the area'

?isc$ssed a"ove are the #ethods in !hich o$r Hotel !ill "e carrying o$t its operations !ith the

#indset of s$staina"le develop#ent' By exercising s$staina"le develop#ent in o$r efforts to earn

reven$e, its i#pact is !idespread and !ill "e felt to the co##$nity and the environ#ent' Beingenviron#entally conscio$s !ill "e "eneficial for the hotel as a large proportion of to$rists are

no!adays a!are of the need to s$stain and conserve o$r environ#ent' (his !ill not only "ring

a"o$t great reven$e for o$r "$siness "$t !ill also provide e#ploy#ent for the local co##$nity

!hich !ill allo! the# to provide for their fa#ilies' (h$s the triple "otto# line theory !ill "e

apply here addressing the rippling effect that o$r !ill "ring a"o$t'


19/35

$I- Manaement;(he esort !ill "e o$tso$rcing the #anage#ent seg#ent to the Hilton esorts and Hotels' (his

is !here a Hilton 1orld!ide H11 developer !ill "e !or0ing closely !ith o$r tea#' (he

property general #anager G. !ill get a Pre-9pening it P9' (his co#prises of reso$rces

that !ill "e $sed "y Hilton "rand instr$ctors !or0ing in coalition !ith the resort/s h$#an

reso$rces #anager to train and allocate the G. and cre! on "rand creativities and platfor#s li0e

the Hilton Bl$e Energy, 9rientation, ervice (raining, and No$rney A#"assador, Hilton Hotels

esorts, n'd''D

(he o$tline sched$led for training and #anage#ent !ill "e as follo!s

?ay + ?ay) ?ay:

(he Hilton Hotels esorts

tea# !ill offer an overall

Hilton orientation and

acI$aint o$r hotel/s

ad#inistrative tea# to the

Hilton "rand c$lt$re, "rand

val$es and essential

s$stenance extents d$ring the

pre and post ina$g$ral'

(o$ring the resort and

revie!ing the co#petitive

setting'

(here !ill "e an identification

of an area 0ind of

config$ration, rate placing and

to thoro$gh the rate "inder'

Pre-sell endorse#ents and

stratage#s !ill "e enhanced'

(his shall "e done in

assistance !ith the director

inco#e ad#inistrative changes

as a conseI$ent to the resort/s

rate inventory "eing

e#"edded into the Hilton

distri"$tion syste#s'

(he e#inence and content of

hotel str$ct$res "$ild, Hilton

"rand !e"sites, the c$rrent

a$xiliary standards and

prospects in relative to the

G$est loyalty pac0age,

advertising and sales'


20/35

(he "rand offers several district "rand instr$ctors to g$arantee the esort/s onsite cre! o"tains

the $pper#ost level of s$pport and training' 9ne of the first co##$nications o$r resort !ill

o"tain is an o$tline to the resorts/ precise opening tea# site' ;Hilton/s properties e#ploy the

9nL syste# for a day-to-day property #anage#ent' (he hard!are !ill "e conveyed to o$r

resort, entirely enc$#"ered !ith property #anage#ent syste# P. soft!are to loo0 after all

processes and "roadcasting'

Hilton also has instr$ctors to train o$r instr$ctorsO After the resort opens, an 9nL expert !ill

devote so#e days at the resort !ith the #anaging tea# to strengthen prior training and disco$rse

iss$es and concerns, Hilton Hotels esorts, n'd''

(he Property 7nfor#ation .anager Pi. device !ill "e $sed to shape and #anage the resorts

data"ase' ;7n reco##endation, !e !ill offer the Head of ?epart#ent/s contact infor#ation in

the Pi. to "e incorporated in the Hilton Co##$nications Channels'

.oreover the eCo##erce specialists !ill assist in the planning and i#ple#entation of a

s$ccessf$l online #ar0eting plan' (his e#"races the forecasting for search opti#i


21/35

$III- Finanial )lan

Eco-Central Pacific Hotel has created a "ase-case forecasted financial plan for the ne! hotel

vent$re/s first three years of operation' 7np$ts for the plan are "ased on extensive research on the

financial #odels of s$ccessf$l hotels, expert advice fro# c$rrent esta"lished hotel o!ners and

financial 0no!ledge of the co#pany/s finance #anager' 1ith the a"ove inp$ts, the "ase-case

plan projected is the "est c$rrent forecast of the operational and financial sche#es of Eco-Central

Pacific Hotel'

Belo! are 0ey fig$res that the "$siness see0s to achieve "y the end of )*+4' ales are projected

to "e 26*,55+,5** in the first year at a #ini#$# occ$pancy rate of 558' (his is easily attaina"le

according to #ar0et research that have "een cond$cted' ?$ring this first year of operations the

"$siness is forecasted to start earning a profit as early as "y the 3th#onth of operation, "y !hich

+*,*: roo#s are esti#ated to have "een occ$pied' 9f the projected first year sales fig$res, net

inco#e is projected to "e )48 of total reven$e' 7n t!o years this percentage is predicted to rise

"y 5'58 fro# )48 to :6'58 of total reven$es'et$rn on eI$ity "y the :rdyear is projected to "e +6'3 8 !hich is a good fig$re co#pared to the

ind$stry average of +*'38 C7 .ar0et , )*+5' 7n regards to the assets of the "$siness, !ith the

effective #anage#ent of o$r I$alified #anagers in colla"oration !ith the Hilton Hotels

.anage#ent Gro$p, ret$rn on assets is projected to "e an i#pressive ):'48'

(he advantage of the given #odel is in its flexi"ility' (his flexi"ility allo!s the "$siness to

forecast vario$s operational scenarios' cenario analysis of the ne! vent$re ill$strates a positive

net inco#e can "e achieved if sales vol$#e do no drop #ore than )58 or if varia"le costs

increase "y the sa#e percentage'


22/35

Table A1.2 Key Figures for 3 yr. model base case (FJD)

Retur o !"uity

#ummary

Retur o Assets

#ummary

$itial e"uityi%estmet

&'1*' +5 3-9E

!d boo+ %alue of

e"uity

&*',- 5ssets urno!er 1-649

Aualied et

icome

&1/121

*/0R! 1'.*

Table A1.3 e/ Fiures =or 3 /r- mo"el ase ase GFD

or+ig 4a5ital #ummary A%g. 4ollectio 6eriod '0

$%. Days o 7ad 1,

A86 5eriod ,

4urret Ratio '1

Table A1.' Key Figures for 3 yr. model base case (FJD)

4otributio margi #ummary

Re%8room occu5ied &2020

948room occu5ied &3-,

4:8room occu5ied &1*23

Fi;ed cost 5er 5eriod &1,3//-0

s) 1003

Actual #ales (>s) 200,/

#o'(entral )ai* Hotel

)ro'=orma alane Sheets=or /ears 017'019


23/35

$$ in thousands ?r. 1, ?r. 1 ?r. 1-

5ssets (ash & ash e


24/35


25/35


26/35

Senario 5nal/sis


27/35

Finanin lan

?ith a omination o= e


28/35

.ar0eting overseas to enco$rage #ore "oo0ing and pay#ents online to #ini#i


29/35

far exceed !hat !as anticipated and this co$ld res$lt in a #is#atch of expenses against the

proposed inco#e'

(o #itigate against this ris0, proper costing esti#ates !ill "e $nderta0en !here percentages !ill

"e over and a"ove )*8 of esti#ated cost' (his is to cover for any $nforeseen contingencies'

Sales roBetions not ahie!e"

9ne of the #ajor threats to any "$siness vent$re is the over rating of sales and potential inco#e

and !hen this happens it !ill do!ngrade the val$e of the "$siness proposal threatening the

via"ility of the project'

(o #itigate against this, the inco#e projections !ill "e disco$nted "y )*8 in anticipation of

red$ced inco#e generated fro# sales'

Hotel "e!eloment she"ule not met

(he pro"le# faced "y #any develop#ent proposals is non confor#ance !ith develop#ent

ti#elines' 1hen this is not #et the intended inco#e strea# !ill not "e reali


30/35

?ater

1ater is an essential co##odity that !ill "e in high de#and' 7n case of !ater disr$ption, the

hotel !ill have "ac0$p !ater tan0s for $se if reI$ired' (his !ill "e fro# syste# "ased !ater

s$pply and also thro$gh harvest of rain!ater'

ransortation

(he transportation and sh$ttling of to$rists fro# entry point airport to the hotel and hotel to

specified destinations is critical for the operation of the hotel to ens$re "etter coverage for its

g$ests' 7f this is not addressed adeI$ately there is the possi"ility of losing potential c$sto#ers to

co#petitors'

(herefore for this p$rpose there is a designated (ransportation .anager to ens$re the "est

service is availa"le for g$ests'

Sulier Disrution

(he contin$o$s s$pply of vegeta"le and food prod$ce to the hotel #ay at ti#es "e affected d$e to

$nforeseen reasons' (his #ay prove fatal for the hotel in ter#s of providing for o$r g$ests

incl$ding o$r salad "ar that is one of the #ain feat$res of o$r resta$rant'

(h$s to #itigate for this ris0, there is a five acre land set aside for the planting and harvesting of

o$r crops and vegeta"les to stand"y for any disr$ption fro# o$r s$ppliers'

)olitial Instailit/

(he political sta"ility of an econo#y is very #$ch an i#portant factor that #ay i#pact the

"$siness operation of any vent$re' Analysis of the political stat$s of any co$ntry is vital "efore

engaging in any vent$re operation, non confor#ance to this co$ld have dreadf$l effects on the

"$siness and cost the "$siness a lot of #oney'

For Eco-Central Pacific esort "eing set $p in Fiji is not #$ch of a "ig ris0' Considering the past

4 years that the c$rrent govern#ent has "een in control, the econo#ic sta"ility of the co$ntry has


31/35

"een !ell consistent and there are no "ec0oning signs of it changing' Also !ith the, elections

co#pleted and o$r c$rrent govern#ent in control for the next 6 years, there is g$arantee that

political relations !ill "e safe and the affairs of the (o$ris# and Hotel ind$stry !ill "e !ell

loo0ed after'

Har!est Strate/Planning for a harvest strategy is j$st as i#portant as earning reven$e for the "$siness' (his

provides the "$siness !ith alternatives to fall "ac0 on sho$ld the "$siness "e in a do!n!ard

sit$ation !here it !o$ld "e sensi"le to $nderta0e certain actions' Having a harvest strategy in

place is not only safe "$t is the !isest decision to carry sho$ld the need arise' ho$ld the

"$siness "e in a sit$ation of harvest strategy decision #a0ingJ the follo!ing options are

availa"le

Manaement (hane7f Eco-Central Pacific Hotel enco$nters any tro$"les !ith its staff #e#"ers specifically the top

#anage#ent or any $nexpected events arise o$t fro# the top #anagers s$ch as death or s$dden

depart$re, !e !ill see0 the services of Hilton Gro$p Co#pany to replace o$r o$tgoing #e#"ers

!ith ne! ones' (he final decision of !hich personnel to e#ploy !ill rest !ith the Board !ho

!ill analy


32/35

Sellin the usiness1e #ay also consider selling o$r "$siness to interested "$yers as en exit strategy if the need

arises' 7n doing this !e !ill "$ild o$r hotel "$siness and create the #axi#$# val$e "y #ar0eting

o$r "rand-na#e and providing services at the highest I$ality, this portrays a good i#age of the

"$siness as a !hole in the long ter#' By doing all these, interested "$yers are a"le to see

potential in o$r vent$re and !o$ld offer prices favora"le for $s'

Manaement u/out(his is another aven$e !e #ay loo0 into d$e to the fact that this is a Partnership co#prising 6

people, !hich are Grace &ersoni, .elanie Fon#an$, Harsha Harsh#eetal, and Eroni %av$da' 7f

on a f$t$re occasion certain partners !ant o$t of the "$siness and others are not interested "$t

!ish to contin$e !ith the vent$re, this option of .anage#ent B$yo$t allo!s the o$tgoing

partners to sell their share of the "$siness to existing partners of other e#ployees' (here is gain

in selling part of the "$siness to existing partners for the o$tgoing partners and there is also

expansion of control of the "$siness for the re#aining partners' (his proves as a !in-!in

sit$ation for "oth parties'


33/35

6R1J!4T

D!TA

$@#

?ear

Buarter

:ot7

:$@!#T

C!

Acti%ity

#tart

6#$T$C

1

)roBetStart

2

1st

an'Mar

Milestone1

5ttain,usiness

iense

10

Mar

Milestone

(on"utan#I5

'10

2

d

5ril'Ma/

Milestone3

(onstrutiono=

5ess+oa"

12

Ma/'une

Milestone4

Hilton5liation)roessin

Milestone2

(learin&)re

arationo=an"

onstruti

'12

Milestone6

an"sain&)rearationo

= ar"en

12

3rd

ul/'5u

Milestone7

)urhasino=

uil"inmateria ls

'12

Set

Milestone8

(onstrutiono=

mainomle

.eins

12

'0

't7

t'De

0

'12

1st

an'Mar

12

2

d

5ril

Milestone9

(onstrutiono=

mainomle

. omlete"

Ma/'une

Milestone10

(onstrutiono=

oolan"oth

erout"oorameni ties

interior"

3rd

ul/'Set

Milestone10

Maretin&+eruitment

't7

t'De

Milestone11

rainino=ersonnel

1

1st

an1st

Milestone1

%ran"enin

aunh

@II- Milestone She"ule


34/35

iliorah/5non-, 013'014- fji visitors bureau statistics. nlineO5!ailale at: AAA-*Bi!istorsureau-om5non-, n-"- business plan. nlineO

5!ailale at: AAA-maretinlan-omasiao, 5-, 1999- #onomi, soial, an" en!ironmental sustainailit/ in"e!eloment theor/ an" uran lannin ratie- The Environmentalist, - 142'161-(amanelli, 5- -, 009- Risks and Rewards or Building Sustainable otels, s-l-:Deloitte Finanial 5"!isor/ Ser!ies )-(ater, #-, 1991- Sustainable Tourism in the Third !orld" #roblems and #rospects,Deemer: s-n-(SI Maret , 012- $anagement E%ectiveness. nlineO5!ailale at: htt:PPsimaret-omPIn"ustr/Pin"ustr/QManaement#Reti!eness-hin"T9065esse" 31 anuar/ 012O-

Dr-Son/a %rai, - -, 010- ow to &ncrease 'our Bottom (ine B) *oing *reen.nlineO5!ailale at: htt:PPreen-hotelsomine"-omP%/h'est')raties-h5esse" 7 anuar/ 012O-%reen Hotels 5ssosiation, 012- !h) should hotel be green+. nlineO5!ailale at: htt:PPAAA-reenhotels-omP5esse" 30 anuar/ 012O-Hilton Hotels & +esorts, n-"- Becoming a ilton otel ilton !orldwide. nlineO5!ailale at:htt:PPAAA-hiltonAorl"Ai"e-omPassetsP"=sPran"sPHiltonQeomin5Hilton-"=5esse" 13 anuar/ 012O-HoAar" H- Fre"eri, D- F- - +- M- H-, 006- E-TRE#RE-ERS" Theor), #rocess,

#ractice. 1st 5sia )ai* #"ition e"- Melourne: Nelson 5ustralia )t/- t" -In!estment FiBi, 012- Tourism sector. nlineO5!ailale at: htt:PPAAA-in!estment*Bi-or-=BPaes-=mP=or'in!estorsPsetor'in"ustr/'ro*lesPtourism'setor-html5esse" 30 anuar/ 012O-In!estment FiBi, n-"- /epartment o Town and 0ount) #lanning. nlineO5!ailale at: htt:PPAAA-in!estment*Bi-or-=BPresouresPuloa"sPeme"sP*lePD()E0+eUoninE05liationsE0(helist-"=5esse" 6 anuar/ 012O-I!ano!a, M- %-, 011- Stakeholder $odel o otel 0hains" 1 0onceptual 2ramework,$arna, ularia: Kni!ersit/ o= #onomis-)atel, )-, 013- 2iji Ta3 #a)able. nlineO

5!ailale at: htt:PPAAA-noA/ourountr/-omP*Bi3-html5esse" anuar/ 012O-+o/sV outi


35/35

SteAar"s, %-, 014- *o *reen otels" *reen &deas or otels and Resorts, s-l-: s-n-KS5 o"a/, 012- !hat is the /i%erence Between a 4Star 5 a 6Star otel+.nlineO5!ailale at: htt:PPtra!eltis-usato"a/-omP"iRerene'etAeen'4star'2star'hotel'100879-html5esse" 30 anuar/ 012O-

;ein, -, 008- Best Environmental #ractices or the otel &ndustr), aussane,SAitUerlan": Sustainale usiness 5ssoiates-

5Star Hotel Business Plan_MG321 Major Assignment

Documents

Transcript of 5Star Hotel Business Plan_MG321 Major Assignment