Multifunctional center in carpiano 14th july 2011 bp presentation

Master in Tourism Management – VII edition – 2010-2011 1

Business Plan

Multifunctional center in Carpiano

Tutor: Professor Emilio Valdameri

Antonelli Davide, Bekmurzayeva Aspet, Cusenza Simona, Georgieva Dilyana, Jurgembayeva Dinara,

Perna Monica, Torricella Francesca

Master in Tourism Management – VII edition – 2010-2011

AKNO Business Parks

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Founded by Mr. Massimo Nouhi, AKNO Business Parks S.p.A. is the leader in the construction of industrial and logistic complexes as well as in the revitalization and reconfiguration of forgotten areas.

It first started its operations in a town close to Milan, Caleppio di Settala, where its headquarters are still located today.


What is a BUSINESS PARK?

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A business park is an industrial complex with excellent functionality of the structures, respect of the environment and security and preservation of the properties typically protected by perimeter fences with a singular

entrance with 24 hours surveillance.

The business park is located in Carpiano.


The project

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A closer focus….


Methodologies

1. Introduction to Carpiano

2. Inventory of attractions

3. Tourism trends and competitive set analysis

4. Target market: survey outcome

5. Analysis of the business tourism segments

6. Promotional goals

7. Evaluation plan and choice of the partner in management

8. Sales and promotion campaign

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1. Introduction to Carpiano

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• Furthest Municipality in

the province of Milan;

• 3700 inhabitants;

• 14 working farmsteads in

17 square kilometers;

• Industrial firms and

administrative offices;


2. Inventory of attractions


Why Carpiano?Understand our location


World Tourism Trends

Tourism flow in the world: UNWTO forecastInternational tourist arrivals by region (in millions), 1950 - 2020

Source: UNWTO

3. Tourism trends


World Tourism Trends

Inbound tourism: means of transport

3. Tourism trends

Source: UNWTO


3. Tourism trends

European Scenario

Percentage Variation in International Arrivals

Source: elaboration from Eurostat data


Tourism in Italy

Demand in ItalyArrivals for different categories

13Source: elaboration from Eurostat data

3. Tourism trends


The main type of business traveler are clerks.

Business travel in Italy

Tourism in Italy:

Demand in Italy in Business Travel

Source: Istat, quarter year survey -"Viaggi e vacanze“, 2009

3. Tourism trends


Tourism in Lombardy:

Tourists trend in Lombardy and arrivals composition in Milan

15Source: Istat

3. Tourism trends


Tourism in Milan:

Tourism demand in Milan and Province

The trend is nearly constant during those 9 years, except for the period 2004-2005 that shows a little decrease and then comes back growing.

3. Tourism trends

Source: Istat


The tourism offer

Evolution of the offer capacity in Italy

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3. Tourism trends

Source: Istat


The tourism offer

Evolution of the offer capacity in Italy

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3. Tourism trends


3. Tourism trends

The tourism offer

The accommodation offer in Milan

Source: Istat

Master in Tourism Management – VII edition – 2010-2011 20Source: Istat

3. Tourism trends

The tourism offer

Percentage composition of the bed offer in Milan in 2009


3.B Competitive set analysis

OUR OUR Hotel Hotel

NovotNovotelel

Air Air HotelHotel

Hotel Hotel Il Il

TelegrafTelegrafoo

ResidenResidence Golfce Golf

ATA ATA Hotel Hotel

RipamonRipamontiti

ATA ATA Hotel Hotel

The One The One

CrowCrowne ne

PlazaPlaza

HolidHoliday ay

INNINNNHNH



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One-day survey in Carpiano;

More than 40 people asked to be interviewed, but

only 25% answered;

Residents’ survey divided in two parts:

- Socio Demographic Data;

- AKNO Carpiano Project Awareness;

Municipality’s interview with the participation of:

- Mr Ronchi, Carpiano’s Mayor;

- Mr Brocca, the architect responsible for the

technical department in Carpiano’s Municipality.



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90%

10%

Have interviewees ever heard about AKNO project?

Yes No

But no one has ever been

on the building site. 90%

10%

Interviewees' opinion about the project

In favour

Against

Uninterested

Why?It can represent a

source of job opportunities for

young people and it can stimulate

development for the destination without

destroying or reducing green areas.

0%

70%

30%

Interviewees' satisfaction degree with actual services

High

Medium

Low

This is the main reason

why…

10%

90%

0%

Interviewees' opinion about the Municipality of Carpiano

A good place where to live

A place where improvements are needed

A place with a lack of opportunities

Where “improvements” is a synonym of services

to be provided in Carpiano.



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40%50%

100%

10%

Shops Cinema Supermarkets Restaurants

Activities residents would like to have in Carpiano

40%

30%

10%

20%

ATMs Grocery Banks/Post office Gym

Primary services residents would like to have in Carpiano The absence of a

supermarket and some shops upsets

the whole community of Carpiano.

The construction of the multifunctional center will

therefore take this into consideration.



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10%

80%

10%

Kind of hospitality services interviewees would expect to have in

Carpiano

Private B&B

Boutique/Design hotel

Service apartments

The choice of hotel category has taken into consideration several

factors, among which the residents’ perception

about the kind of accommodation services

suitable for Carpiano.



After the analysis of the needs of different possible type of segments, we decided to focus mainly on the following three targets:



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The HOTEL STRUCTUREGround floor: bar, reception, back-office with Management offices, a 70 sq meter equipped meeting room for 40 people;

First floor: 14 out of 30 connecting rooms for families

Second floor: standard rooms for young couples with welcome gifts at arrival: candies and wine bottle;

Third floor: standard rooms for clerks;

Fourth floor: EXECUTIVE floor with 1 suite and 28 rooms with free mini bar, higher quality furniture, 30 sq meter “private” equipped meeting room for 2-15 people and waiting room.

Fourth Floor

1st, 2nd and 3rd Floor



The HOTEL STRUCTURE

The basement plan will provide:

-parking for hotel guests;

- a wellness center with swimming pool, Turkish bath and water massage.



HOTEL STRUCTURE:The current look and design…



HOTEL DESIGN: How it could look like ...

The hallThe wellness center Room type ARoom type B

4th floor Suite


Core strategyModernity that will surprise you

How?


TargetClerks, families, young couples, friends and professionals

looking for 3-4 stars hotel experience due to their success and hard work.


Core strategy Project unwavering dedication to the mission and surprise visitors with services

Focus on the staff members




Services offered in the hotel



Services offered in the multifunctional center


Considerations on the Italian market and its composition

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Italia

n ch

ains

Generally medium or small

size. Fo

reig

n ch

ains

Working all across the world, usually providing

managing or franchising contracts. Ag

greg

ation

s

Companies that, on the national or

international base, represent

independent hotels.




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Affiliation contract;

Long- term strategy;

Coherence with our philosophy;

Less binding contract;

BW presence in the business area of Milan and brand recognition;

Possibility to receive reservations from all over the world;

Possibility of offering staff training;

Special treatments to Cluster Business and Cluster Kids segment, as

well as women.

Considerations on the possible brands

And the final decision:


7.B Economic Analysis

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REVENUES 2012 2013 2014 2015 2016Rooms Revenues (VAT excluded breakfast excluded)

€ 1.037.564,70

€ 1.226.515,07

€ 1.431.259,98

€ 1.657.592,57

€ 1.799.716,43

% TOTAL REVENUES 67% 69% 70% 70% 70%

Average Price for Breakfast (VAT included) € 7,00 € 7,00 € 7,00 € 8,00 € 8,00Revenues for Breakfast (VAT included) € 187.879,36 € 204.463,64 € 221.047,91 € 276.318,00 € 300.009,82

% TOTAL REVENUES 12% 11% 11% 12% 12%

Total Rooms Revenues €

1.225.444,07€

1.430.978,70€

1.652.307,89€

1.933.910,57€

2.099.726,25

% TOTAL REVENUES 79% 80% 81% 81% 82%

% of presence of guests in the bar 35% 35% 35% 35% 35%Average price for meal (VAT included)* € 7,50 € 7,50 € 7,50 € 7,50 € 7,50Revenues for Bar (VAT excluded) € 70.454,76 € 76.673,86 € 82.892,97 € 90.666,84 € 98.440,72Revenues for Banquets/Seminars (VAT excluded) € 35.500,00 € 36.000,00 € 37.500,00 € 38.500,00 € 40.000,00TOTAL REVENUES FOR BREAKFAST, BAR AND BANQUETS € 293.834,13 € 317.137,50 € 341.440,88 € 405.484,84 € 438.450,54

% TOTAL REVENUES 19% 18% 17% 17% 17%

REVENUES for INTERNATIONAL CALLS*** € 25,00 € 25,00 € 25,00 € 25,00 € 25,00REVENUES for MICE FACILITIES**** € 12.000,00 € 12.000,00 € 12.000,00 € 12.000,00 € 12.000,00REVENUES for WELLNESS CENTER (VAT excluded)***** € 20.000,00 € 25.000,00 € 25.000,00 € 25.000,00 € 25.000,00TOTAL OTHER REVENUES (VAT excluded) € 32.025,00 € 37.025,00 € 37.025,00 € 37.025,00 € 37.025,00

% TOTAL REVENUES 2,1% 2,1% 1,8% 1,6% 1,4%

NET REVENUES VAT Excluded €

1.551.303,19€

1.785.141,20€

2.030.773,76€

2.376.420,41€

2.575.201,79OPERATING COSTS******TOTAL PERSONNEL

Total employees 17 18 18 22 23Value € 597.251,47 € 628.015,56 € 658.204,80 € 728.991,36 € 759.342,98% of Revenues 38,5% 35,2% 32,4% 30,7% 29,5%

VARIOUS COSTS for ROOMS (room supplies+laundry+linen) % of Room Revenues 6% 6% 6% 6% 6%

Value € 62.253,88 € 73.590,90 € 85.875,60 € 99.455,55 € 107.982,99

VARIOUS COSTS for BAR

% of Bar Revenue (see table specifications) 33,2% 33,5% 33,9% 30,8% 30,7%

(food for breakfast, bar, banquets, minibar) Value € 97.501,54 € 106.121,25 € 115.606,57 € 124.925,71 € 134.547,36ADMINISTRATION COSTS Value € 30.000,00 € 30.000,00 € 30.000,00 € 30.000,00 € 30.000,00 Per Room € 252,10 € 252,10 € 252,10 € 252,10 € 252,10COMMERCIAL COSTS Value € 177.158,54 € 143.046,91 € 159.221,57 € 178.269,79 € 189.882,64

Per Room € 1.488,73 € 1.202,07 € 1.338,00 € 1.498,07 € 1.595,65Best Western Fees € 30.089,38 € 35.568,94 € 41.506,54 € 48.070,18 € 52.191,78OLTA fees (on revenues from rooms booked through OLTA)

€ 55.161,16

€ 64.648,97

€ 74.886,04

€ 87.370,60

€ 94.861,86

MAINTENANCE COSTS Value € 30.000,00

€ 32.000,00

€ 35.000,00

€ 37.000,00

€ 37.000,00

Per Room € 252,10 € 268,91 € 294,12 € 310,92 € 310,92ENERGY COST Value € 100.000,00 € 100.000,00 € 100.000,00 € 100.000,00 € 100.000,00 Per Sold Room 5,08 4,67 4,32 3,95 3,64VARIOUS COSTS % of Revenues 3% 3% 3% 3% 3%

Value € 44.987,79 € 51.769,09 € 58.892,44 € 68.916,19 € 74.680,85PRE-OPENING COSTS Value 0,00 0,00 0,00 0,00 0,00

TOTAL OPERATING COSTS Value€

1.139.153,23€

1.164.543,72€

1.242.800,98€

1.367.558,61€

1.433.436,81 % Total Revenues 73,4% 65,2% 61,2% 57,5% 55,7%

GROSS OPERATING PROFIT Value € 412.149,97 € 620.597,49 € 787.972,78€

1.008.861,81€

1.141.764,98 % Total Revenues 26,6% 34,8% 38,8% 42,5% 44,3%


7.B Economic Analysis

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GOP Value € 412.150 € 620.597 € 787.973 € 1.008.862 € 1.141.765

% Total Revenues 28,1% 36,1% 40,0% 44,5% 46,2%

Forecasted Investment € 10.000.000 € 10.000.000 € 10.000.000 € 10.000.001 € 10.000.002

Direct management

ROI 4,1% 6,2% 7,9% 10,1% 11,4%good/average

Lease contract 60% of GOP 60,0% 60,0% 60,0% 60,0% 60,0%

€ 247.290 € 372.358 € 472.784 € 605.317 € 685.059

ROI 2,5% 3,7% 4,7% 6,1% 6,9%

% of revenues 15,9% 20,9% 23,3% 25,5% 26,6%too much!!

20,0% 20,0% 20,0% 20,0% 20,0%

€ 277.675 € 321.612 € 368.308 € 431.033 € 467.493not enought !!

Management contract Management fee 10% 10% 10% 10% 10%

€ 155.130 € 178.514 € 203.077 € 237.642 € 257.520

New GOP € 257.020 € 442.083 € 584.895 € 771.220 € 884.245

New ROI 2,6% 4,4% 5,8% 7,7% 8,8%good/average

1. Direct mangement? 2. Lease contract? 3. Management contract?



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Our Hotel will use a professional photographer and design firm to produce the following materials:

http://venice.arounder.com/it/hotel-4-stelle/best-western-hotel-la-di-moret/suite-1.html






Thank you for your attention

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Find your home on your way home: stay at Best Western Carpiano!

Multifunctional center in carpiano 14th july 2011 bp presentation

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