Business Plan "New Hotel Enterprise"

Business Plan

Under the guidance of:

Dott. Sergio MancusoDott.ssa Simona Fontana

Group:

Michela BertellaCristina D’AntoniSerena FabianoRossella FedelePaola MantovaniFrancesco Sammartano

Hotel Network EnterpriseMaster in Tourism Management

Università IULMTel. +39 (0)2 891412815website: www.mtm.iulm.it

Mail: [email protected]

http://www.mtm.iulm.it/

AGENDA

Introduction Objectives Product Logo

Methodologies

Description of the Selected Cities

Economic-financial Plan Investment PlanHotel DataIncome Statement for the Hotel Network

Conclusion

Introduction

An international group wants to penetrate the Italian hospitality tourism market with

the creation of a hotel network consisting of 5 new structures to build in 3 years

through:• Analysis and evaluation of the market of reference;• Analysis and estimation of the hotel’s features (no. of rooms, sq. m.

per room, services…);• Control of coherence between single hotels and the network as a

whole;• Time needed to reach the ‘Established Stage’ of operating activity.

The group has to choose 5 cities in Italy within 10 proposed:

Objectives

The objectives of the group are to create a business plan for the hotel network and

draw up precise data on investment plans and their managerial sustainability and

offer reliable forecasts for the different business development possibilities of the

enterprise.

Bergamo Genova Vicenza Verona Venezia

Firenze Torino Monza Bologna Brescia

44

Product

• Economical 3 star hotels

• Target Market: Business (National & International)

• Essential services: breakfast, only standard rooms, wireless, restaurant, bar

• Low price: from € 70.00 to € 75.00

• Number of rooms: 80 - 120

• sq. m./room ratio: 33/35 (estimation)

Logo

* Network Hotel *

• Research on the field (Monza);

• telephone calls to tourist offices and hotels in the proposed cities;

• internet based research (analysis of the existing and potential demand, occupancy rate, analysis of municipalities’ and provinces’ websites);

• collection and elaboration of local economic figures;

• infrastructures;

• economic and production system;

• population and density of habitants;

• presence of a convention bureau/fair area;

• identification of competitors;

• creation of forecasted income statements.

METHODOLOGIES

•Localization of the proper cities

The cities chosen are:

BERGAMOMONZAVERONAGENOVAFIRENZE

•Analysis of location:

The areas chosen inside the cities are close to the main infrastructures and not far from the city center.In addition, the identified cities are the most suitable according to the analysis of market/competitors and economic/tourist data (trends).

METHODOLOGIES

77

BERGAMO - P.le Guglielmo Marconi

0.8 Km city center

O.O Km train

station

5.3 km “Orio al Serio” Airport

12 Km motorway

Milano-Brescia

Hotel

4 Km Pompiniano

bypass

Piazzale Guglielmo Marconi

Main distances:

• 0.0 Km Bergamo train station• 0.8 Km from the city center• 4 Km from Pompiniano bypass• 5.3 km from Orio al Serio Airport • 12 km from the motorway Milano-Brescia

Analysis of the area:

• Population: 117,072 • Province inhabitants: 1,021,710 • Density: 3,025 /km²• Infrastructures & Transport:

- “Orio al Serio” airport (BG) - A4 motorway Milano-Venezia- Train station in the city centre

• Economic - social structure: Bergamo is an industrial city with a relevant structure of small-medium enterprises and a certain number of multinational companies.

Some of the main firms are: Brembo, Tenaris, Italcementi S.p.a, Gruppo Ubi.

BERGAMO

99

BERGAMO

Congress/Fair:

• Bergamo has the ‘Giovanni XXIII’ congress center located in the city centre with 12 spaces hosting national and international events, meetings and congresses.• The new fair of Bergamo is a multifunctional area of 173,000 square metres

Occupancy rate:

(Source: Re-elaboration of AICA’s figures)

Selection of Competitors:

• Best Western Hotel Premier Cappello D’oro (3 star, 89 rooms);• Jolly Hotel (4 star, 88 rooms);• Mercuri Palazzo Dolci (4 star, 88 rooms);• Hotel Piemontese (3 star, 55 rooms);• Hotel Città dei Mille (3 star, 40 rooms);

2006 2007 variation

71.7% 73.9% + 3.02

1010

VERONA - Via Gianfranco Fedrigoni – Via Basso Acquar

Hotel

20 Km “Villafranca”

Airport

0.9 Km train

station

3 Km city center

7 Km Est ring road

6 Km motorway Brescia-Padova

Via Gianfranco Fedrigoni – Via Basso Acquar

Main distances:

• 900 m from Verona train station (Porta Nuova) • 2.5 Km from Verona Fair• 3 Km from the city center• 6 Km from motorway Brescia – Padova• 7 Km from Est ring road• 20 Km from “Villafranca airport”


• Population: 264,650• Province inhabitants : 500,000• Density: 1,280.7/km²• Infrastructures & Transport:

- Valerio Catullo Airport - A4 Highway - Verona ‘Porta Nuova’ Railway Station

• Economic - social structure: the food and pharmaceutical industries are well developed and the national bank sector contributes to the economy of the

city and the province. Some of the main firms are: Bauli, Melegatti, Cattolica

Assicurazioni, Glaxo.

VERONA

1212

Congress/Fair:

The city’s exhibition centre “Verona Fiere” hosts 1,100,000 annual visitors, with a significant number of foreign presences.

Occupancy Rate:

2006 2007 variation

58% 59.9% + 3.37

VERONA



• Hotel Leon d’Oro (4 star, 206 rooms);

• Best Western Hotel Firenze (4 star, 49 rooms);

• Hotel Giberti (4 star, 80 rooms);

• Hotel San Pietro (4 star, 47 rooms)

• Best Western Hotel De’ Capuleti (4 star, 42 rooms)

1313

MONZA - Via Gaetana Agnesi – Corso Milano

1.2 Km city

center

20 Km motorway

Milano-Brescia

Hotel

0.5 Km train station

Via Gaetana Agnesi - Corso Milano

Main distances:

• 0.5 km from Monza train station • 1.2 Km from the city center• 20 km from the motorway Milano - Brescia • 25 Km from “Linate” airport (MI)• 41,5 km from “Orio Al Serio” airport (BG)• 58,6 km from “Malpensa” airport (MI)

Analysis of the Area

• Population: 121,961• Province inhabitants: 776,941 • Density: 2,108 /kmq • Infrastructure and trasport: -Airport: Malpensa, Linate, Orio al Serio

-Motorways A4 Milano - Venezia -Railway stations (Milano, Lecco, Brescia)• Economic - social structure: Monza is a developed industrial city with a

large variety of companies which operate in several sectors. Some of the main firms are: Polo tecnologico della Brianza, A.G.A.M., Candi, Star, Sol Group.

MONZA

MONZA

Congress/fair:

Monza Fiere is a 21,000 square metres area.

Occupancy Rate:

2006 2007 variation

65.3% 64.5% - 1.27



• Hotel della Regione (4 star, 90 rooms);

• Hotel de la Ville (4 star, 71 rooms);

• Hotel Motel Monza (4 star, 68 rooms);

• Parco Hotel (4 star, 50 rooms);

1616

FIRENZE - Via Masaccio – Via degli Artisti

2.7 Km city center

21 Km motorway ‘Del sole’

Hotel

3 Km train station

9.5 Km “Vespucci” Airport

Via Masaccio– Via degli Artisti

Main distances:

• 2.7 Km from the city center• 3 km from “Santa Maria Novella” railway station• 9,5 km from “Amerigo Vespucci” airport• 21 km from the motorway “del Sole”


• Population: 364,052• Province inhabitants: 975,218• Density: 3,554.9/km² • Infrastructures and transport:

- Airport “Amerigo Vespucci” - Motorways: “Autostrada del Sole” (A1)- “Firenze Mare” (A11)- Central railway station “Santa Maria Novella”

• Economic-social structure: Firenze is a developed industrial city with a large variety of companies which operate in several sectors. Some of the main firms are: Prada,

Gucci, Boehringer, Infogroup, Galileo.

FIRENZE

Congress/fair:

Firenze Fiera SpA runs the three main exhibition and congress venues in Florence:Fortezza da BassoPalazzo dei Congressi (conference centre)Palazzo degli Affari (business centre)

Occupancy rate:

FIRENZE

2006 2007 variation

65.5% 67.1% + 2.46

(Source: Re-elaboration of AICA’s figures)Selection of competitors:

• Hotel Meridiana (3 star, 67 rooms)

• Hotel Athenaeum (4 star, 60 rooms)

• Hotel Il Granduca (3 star, 21 rooms)

• Hotel De La Pace (3 star, 42 rooms)

1919

GENOVA - Piazza Nicolò Barabino

4.7 Km city center

Hotel

6 Km motorway Milano-Genova

2.5 Km train station

4.5 Km “Colombo”

Airport

Piazza Nicolò Barabino

Main distances:

• 2.5 Km from train station “Porta Principe”• 4.5 Km from “Cristoforo Colombo” airport • 4.7 km from the city center• 5.5 km from the fair• 6 Km from Milano - Genova motorway

Analysis of the area :

• Population: 611,949• Province inhabitants: 884,632• Density: 2,512.10/km²• Infrastructures and transport:

- Seaport- Airport “Cristoforo Colombo”- 4 Motorways: A12, A26, A10 and A7- Railway stations: Genova Principe and Genova Brignole

GENOVA

2121

GENOVA

• Economic-social structure: thanks to the big growth of the last 10 years, tod

Genova is an industrial city with important multinational companies. Some

important firms are: Porto di Genova, Finmeccanica, Ansaldo, Cantiere Navale di

Sestri Levante, Costa Crociere.

Congress/fair:

“Fiera di Genova” is situated very close to the city center. The fairground's overall

surface exceeds 300 thousand square metres;

GENOVA

Occupancy rate:

2006 2007 variation

61.2% 64.1% + 4.62



• Novhotel (3 star, 223 rooms);

• Columbus Sea Hotel (4 star, 80 rooms);

• Hotel Bellevue (3 star, 36 rooms);

• Hotel Vittoria e Orlandini (3 star, 41 rooms);

• Jolly Hotel Genova Plaza (3 star, 143 rooms);

ECONOMIC-FINANCIAL PLAN

Bergamo project

Firenze Project

Genova project

Monza project

Verona project

Total

room number 120 120 100 120 100 560

sq.m./ room Ratio * 33 34 35 34 33 33,8

total sq.m. * 3.960 4.080 3.500 4.080 3.300 18.920

sq.m.cost * 2.500 2.700 2.500 2.500 2.400 2.520room cost 82.500 91.800 87.500 85.000 79.200 85.200total cost 9.900.000 11.016.000 8.750.000 10.200.000 7.920.000 47.786.000

* Estimation

INVESTMENT PLAN

Start up Establ. Start up Establ. Start up Establ. Start up Establ. Start up Establ.Occupancy 52% 65% 55% 72% 52% 65% 56% 64% 54% 70%

Average Rate 73 77 75 79 71 75 73 77 72 76Fequency Index

(per Room)1,15 1,15 1,4 1,4 1,15 1,15 1,25 1,25 1,3 1,3

Average Rate (Breakfast)

6 6 6 6 6 6 6 6 6 6

Average Rev. (Bar)

4 4 4 4 4 4 4 4 4 4

Average Rate (Restaurant)

25 26 25 26 25 26 25 26 25 26

Genova VeronaBergamo Firenze Monza

HOTEL DATA (Start Up and Established Stage)

2626

2010 2011 2012 2013 2014 2015 2016 2017

Total investment

BG-FI BG-FI-GE-MZBG-FI-GE-

MZ-VRBG-FI-GE-

MZ-VRBG-FI-GE-

MZ-VRBG-FI-GE-

MZ-VRBG-FI-GE-

MZ-VRBG-FI-GE-

MZ-VR

Revenues

Room revenues

3.153.998 6.542.642 8.762.525 9.559.823 10.333.457 11.232.721 11.190.702 11.470.470

% on Total revenues

73,8% 73,9% 74,1% 74,4% 74,5% 74,7% 74,6% 74,6%

Rest/Bar revenues

933.482 1.956.595 2.627.487 2.864.999 3.098.068 3.366.793 3.352.909 3.436.732

% on Total revenues

21,9% 22,1% 22,2% 22,3% 22,3% 22,4% 22,4% 22,4%

Parking revenues

183.960 352.590 429.240 429.240 433.839 442.769 453.838 465.184

% on Total revenues

4,3% 4,0% 3,6% 3,3% 3,1% 2,9% 3,0% 3,0%

TOT. REV.4.271.44

08.851.826 11.819.252

12.854.062

13.865.364

15.042.28314.997.45

015.372.38

6

INCOME STATEMENT - Revenues

Operating Costs 2010 2011 2012 2013 2014 2015 2016 2017Personnel Costs 1.222.660 2.512.669 3.327.277 3.589.240 3.791.120 3.983.801 4.033.799 4.134.644

% on Total Revenues 28,6% 28,4% 28,2% 27,9% 27,3% 26,5% 26,9% 26,9%

Room Costs 94.620 196.279 262.876 286.795 310.004 336.982 335.721 344.114% on Room Revenues 3,0% 3,0% 3,0% 3,0% 3,0% 3,0% 3,0% 3,0%

Raw Material Costs 205.366 430.451 578.047 630.300 681.575 740.695 737.640 756.081% on Bar/Rest. Revenues 22,0% 22,0% 22,0% 22,0% 22,0% 22,0% 22,0% 22,0%

Commercial Costs 40.000 100.000 165.000 192.000 211.050 216.326 221.734 227.278% on Total Revenues 0,9% 1,1% 1,4% 1,5% 1,5% 1,4% 1,5% 1,5%

Administrattion Costs

40.000 81.000 103.025 105.601 108.241 110.947 113.720 116.563

% on Total Revenues 0,9% 0,9% 0,9% 0,8% 0,8% 0,7% 0,8% 0,8%

Maintenance Costs 50.000 110.000 175.000 212.250 231.806 237.601 243.541 249.630 % on Total Revenues 1,2% 1,2% 1,5% 1,7% 1,7% 1,6% 1,6% 1,6%

Energy Costs 200.000 440.000 600.000 646.500 669.663 686.404 703.564 721.153% on Total Revenues 4,7% 5,0% 5,1% 5,0% 4,8% 4,6% 4,7% 4,7%

Other Costs 427.144 885.183 1.181.925 1.285.406 1.386.536 1.504.228 1.499.745 1.537.239% on Total Revenues 10% 10% 10% 10% 10% 10% 10% 10%

Comfort Costs 85.429 177.037 236.385 257.081 277.307 300.846 299.949 307.448% on Total Revenues 2,0% 2,0% 2,0% 2,0% 2,0% 2,0% 2,0% 2,0%

Total Costs 2.365.219 4.932.618 6.629.535 7.205.173 7.667.302 8.117.830 8.189.415 8.394.150

INCOME STATEMENT - Costs

2010 2011 2012 2013 2014 2015 2016 2017 G.O.P. 1.897.030 3.899.966 5.168.226 5.619.176 6.170.366 6.893.442 6.777.516 6.946.954

% on Total Revenues 44% 44% 44% 44% 45% 46% 45% 45%

% on Investiment 9% 10% 11% 12% 13% 14% 14% 15%

Leasing 898.218 2.111.980 2.992.936 3.371.506 3.702.219 4.136.065 4.066.510 4.168.172% on Investiment 7,7% 8,7% 8,5% 8,7%Pre-Opening Exp. 240.000 220.000 100.000 0 0 0 0

EBITDA 598.812 1.407.986 1.995.290 2.247.670 2.468.146 2.757.377 2.711.006 2.778.782% on Investiment 3% 4% 4% 5% 5% 6% 6% 6%

Tot. Depreciation 873.818 1.668.061 2.008.061 2.008.061 2.008.061 2.008.061 2.008.061 1.768.061Financial Charges 76.800 147.200 179.200 179.200 179.200 179.200 179.200 179.200

Earnings before Taxes

-351.806 -407.274 -191.970 60.410 280.886 570.116 523.746 831.521

INCOME STATEMENT – Operating Results

2010 2011 2012 2013 2014 2015 2016 2017

BG-FIBG-FI-GE-

MZBG-FI-GE-

MZ-VRBG-FI-GE-

MZ-VRBG-FI-GE-

MZ-VRBG-FI-GE-

MZ-VRBG-FI-GE-MZ-

VRBG-FI-GE-MZ-

VRInvestiment Value 20.916.000 39.866.000 47.786.000 47.786.000 47.786.000 47.786.000 47.786.000 47.786.000

Property Revaluation

(Investiment * 3%)627.480 1.214.804 1.470.024 1.477.681 1.477.910 1.477.917 1.477.918 1.477.918

Network Management Revaluation (EBITDA * 5)

2.994.060 7.039.932 9.976.452 11.238.352 12.340.731 13.786.885 13.555.032 13.893.908

Total Revaluation 3.621.540 8.254.736 11.446.477 12.716.032 13.818.642 15.264.802 15.032.950 15.371.825New Network Value 24.537.540 48.120.736 59.232.477 60.502.032 61.604.642 63.050.802 62.818.950 63.157.825

NETWORK REVALUATION

CONCLUSIONS

After a detailed analysis of the Investment Plan and the Network

Income Statement, we can conclude that the implementation of this

project is sustainable and that the investment can be remunerated.

References:

Comune di BergamoProvincia di Bergamo DedalonewsAeroporto di Bergamo WikipediaRegione LombardiaProvincia di Monza Bergamo Congress CenterAicaComune di Genova Provincia di VeronaFiera di GenovaAerporto di GenovaComune di Verona Aeroporto di Verona

Verona FiereComune di FirenzeFirenze FieraMonza e Brianza in Rete Brianzabusiness Google MapsViamichelinHotelmonzaBestwesternUNA HotelRegione VenetoTrail LiguriaNH HotelsComune di MonzaRegione Liguria

32

Thank you!CONTACT

Master in Tourism ManagementUniversità IULM

Via Carlo Bo, 1 - 20143 - MilanoTel. +39 (0)2 891412815; Fax +39 (0)2 891412814

website: www.mtm.iulm.itMail: [email protected]

http://www.mtm.iulm.it/