Table of ContentsList of Tables................................................................................................................................................................................. 2List of Figures............................................................................................................................................................................... 2

1. Executive Summary.............................................................................................................3

2. Business Overview...............................................................................................................72.1 Introduction...........................................................................................................................................................................72.2 Mission Statement.............................................................................................................................................................. 72.3 GreenStay Hotel & Suites Overview............................................................................................................................72.4 Goals.......................................................................................................................................................................................... 72.5 Regina Hotel Industry....................................................................................................................................................... 8

3. Operations Plan...................................................................................................................83.1 Location................................................................................................................................................................................... 83.2 Site Plan................................................................................................................................................................................... 93.3 Building Floor Plan..........................................................................................................................................................103.4 Room Floor Plans............................................................................................................................................................. 113.5 Average Business Actions.............................................................................................................................................133.6 Environmental Initiatives.............................................................................................................................................163.7 Environmental Certifications......................................................................................................................................183.8 Supply Analysis................................................................................................................................................................. 203.9 Service Providers..............................................................................................................................................................203.10 Capital Budget................................................................................................................................................................. 213.11 Operating Expenses......................................................................................................................................................22

4. Human Resource Plan........................................................................................................234.1 Organizational Structure...............................................................................................................................................234.2 Training Programs...........................................................................................................................................................244.3 Human Resource Costs.................................................................................................................................................. 244.4 Human Resources Strategy..........................................................................................................................................24

5. Marketing Plan..................................................................................................................255.1 Industry Trends................................................................................................................................................................ 255.2 Competitors........................................................................................................................................................................ 265.3 Consumers...........................................................................................................................................................................265.4 Target Market.....................................................................................................................................................................275.5 Competitive Advantage..................................................................................................................................................285.6 Marketing Strategy.......................................................................................................................................................... 285.7 Pricing policy...................................................................................................................................................................... 295.8 Advertising.......................................................................................................................................................................... 295.9 Customer Loyalty..............................................................................................................................................................315.10 Public Relations..............................................................................................................................................................325.11 Marketing Budget..........................................................................................................................................................32

6. Financial Plan.....................................................................................................................336.1 Financing structure......................................................................................................................................................... 336.2 Capital Spending............................................................................................................................................................... 336.3 Dividend Policy..................................................................................................................................................................346.4 Ratio Analysis.....................................................................................................................................................................346.5 Financial Analysis.............................................................................................................................................................356.6 Risk Analysis.......................................................................................................................................................................35

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6.7 Contingency Plan..............................................................................................................................................................36

7.0 GreenStay Summary........................................................................................................37

9 Appendices.........................................................................................................................38Appendix-1 Competitors Pricing Strategy....................................................................................................................38Appedix-2 SWOT Analysis....................................................................................................................................................39Appendix-3 Survey Results..................................................................................................................................................41Appendix-4 Room Furnishing Cost Breakdown.........................................................................................................44Appendix-5 Power Estimations.........................................................................................................................................47Appedix-6 Financials.............................................................................................................................................................. 48Appendix-7 References.........................................................................................................................................................49

List of TablesTable E.1 Key Financial Statistics ......................................................................................................................6Table 3.10 Capital Expendatures..................................................................................................................... 21Table 3.11 Yearly Expenses................................................................................................................................... 22Table 4.3 Hourly & Annual Wages..................................................................................................................... 24Table 5.11 Marketing Budget............................................................................................................................... 32Table 6.1 Brnancing Breakdown..........................................................................................................................33Table 6.2 Capital Expendatures........................................................................................................................... 33Table 6.4 Economic Ratios.....................................................................................................................................34Table 6.5 Key Fiancial Statistics............................................................................................................................35Table A.1 competitor’s Prices from October 2008........................................................................................38Table A.2a Strengths................................................................................................................................................ 39Table A.2b Weaknesses.......................................................................................................................................... 39Table A.2c Opportunities........................................................................................................................................40Table A.2d Threats.................................................................................................................................................... 40Table A.4a Queen Room Furnishing Costs.......................................................................................................44Table A.4b Regular King Furnishing Costs........................................................................................................45Table A.4c King/Jacuzzi Suite Furnishing Costs..............................................................................................46

List of FiguresFigure 3.1 Location (Google Maps Sept 20th , 2008 )...................................................................................8Figure 3.2 Site Plan...................................................................................................................................................... 9Figure 3.3a First Floor..............................................................................................................................................10Figure 3.3b Floors 2-4..............................................................................................................................................12Figure 3.4a Queen Double Layout.....................................................................................................................12Figure 3.4b Regular King Layout.......................................................................................................................... 13Figure 3.4c King/ jacuzzi suite Layout................................................................................................................13Figure 4.1 Corporate Structure............................................................................................................................23Figure 6.6 Risk Analysis........................................................................................................................................... 36

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1. Executive Summary

The concept of the GreenStay Hotel is inspired from a simple yet ingenious idea— “Sleep Better Because You Feel Better.” The primary goal of GreenStay is to build an environmentally friendly 101-unit hotel in Regina, Saskatchewan.

The GreenStay Hotel will be the first of its kind in Saskatchewan to provide a stay that has been designed with the consideration of environmental-friendliness. Due to increasing environmental concerns, GreenStay has taken the initiative to address this important and emerging opportunity by making it an integral focus of the company.

This innovative hotel will consist of a one hundred and one-room facility spanning four levels. Additionally, the hotel will feature a swimming pool and hot tub, business and fitness centre, a boardroom and a state-of-the-art conference room that can accommodate up to one hundred people. Above all, the hotel will be built according to the specifications required for environmentally friendly accreditation. All aspects of the construction and operations side of GreenStay will be delivered with the highest levels of environmental conscience.

All hotels in Saskatchewan currently fail to adequately provide consumers with an environmental hotel. This is a rapidly growing market as recent survey results found that almost 20 per cent of travelers choose hotels because of their environmental practices (Vancouver Sun). GreenStay will become Saskatchewan’s only option for this growing market. In fact, we are aiming to reduce energy use by 75% and water usage by 25%. The justification behind these ambitious goals stems from results seen in the Factor 9 home in Regina, Saskatchewan. The construction phase of the GreenStay hotel will be modeled after many of the specifications and practices used in the construction of this home. The largest and most visible environmental aspect of the GreenStay Hotel will be its use of two wind turbines and a vast network of solar photovoltaic panels. Both of these systems will be used to produce electricity and will essentially help GreenStay to control one of the fastest growing costs for hotels, utilities. The GreenStay hotel will also utilize the stability in ground temperatures through a geothermal system that will heat and cool the building year round. The use of these three systems (solar, wind & geothermal) will work harmoniously together towards cementing in GreenStay as one of Canada’s largest net-zero carbon emission hotels. Ironically, this is also one secret behind GreenStay’s attractively high profit margins. In essence, GreenStay will be evidence of a rare and lethal combination. GreenStay will provide consumers with a highly differentiated product and service while being a low-cost producer.

GreenStay captured the attention of over 120 respondents (approx. 100 from Diefenbaker Airport) who were surveyed at Diefenbaker International Airport and the University of Saskatchewan. Respondents were notified of the following on the top of each survey: For the purpose of this survey, an Environmental Hotel/Motel is defined as one which produces 100% of its own energy through sources such as wind and solar power. It also produces its own heat through geothermal energy. This aims to reduce energy and water consumption by using efficient utilities and will overall produce less carbon emissions into the environment than current hotels. 

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The following reveals the results to a few questions asked on our survey:

1) On a scale of 1 to 10, please rate how much you would prefer to stay at an “Environmental Hotel” that strives to reduce its environmental impact. (Circle the number that best describes your answer)

(Low Preference) 1 - 2 - 3 - 4 - 5 - 6 - 7 - 8 - 9 - 10 (High Preference) Mean – 7.59

2) If price and services were comparable, would you be more inclined to visit a hotel/motel which is an “Environmental Hotel”? (Please Circle One)

No Probably Not Maybe Probably would definitely would0% 2.5% 19.5% 36.4% 41.5%

3) If there were a premium charged for staying at an “Environmental Hotel”, how much would you be willing to pay extra per night? (Circle One)

$0/night $1-$10/night $11-$20/night $21-$30/night $31 or more/night 16.2% 52.1% 22.2% 8.5% 0.9%

At GreenStay, we are committed to providing environmentally sustainable accommodations while delivering an exceptional guest experience. Backed by this mission statement, GreenStay intends on becoming one of Canada’s largest and most environmentally friendly independent hotels. As management of GreenStay, we intend on exploiting this unique advantage by harnessing the power of the media to promote the amenities and nature of our hotel. This free publicity will give GreenStay national attention and will initially act as a powerful and highly effective marketing medium.

Saskatchewan also has a large government sector. GreenStay will utilize this opportunity by contacting Crown Corporations such as SaskPower, SaskEnergy and others, with the message ‘to put their money where their mouth is.’ Both companies attempt to appear “green” with the advertisements and rebate programs they have in place to reduce the amount of energy that people use. Essentially, we want them to ‘practice what they preach’ by having their traveling employees stay at a hotel that uses less energy and is very environmentally friendly. As well, countless other private and public companies have been attempting to associate their names with being environmentally friendly.

It is GreenStay’s objective to acquire approximately 2% of Regina’s market share through the use of competitive pressures to gain existing hotel customers, as well as the generation of new customers. This will be accomplished by appealing to GreenStay’s target market, which reaches far beyond the environmentalists who travel through Regina. The target market for GreenStay is segmented into three groups: business traveler, leisure travelers and group travelers. The average age of our guests will be between 25 and 55 years old with moderate incomes. As well,

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GreenStay’s strategic location near the intersection of Lewvan Drive and the Trans Canada Highway gives us the benefit of being conveniently located to both business and leisure travelers coming from the airport and the #1 highway. This location also minimizes our upfront capital costs while increasing our profit margins, as land values are considerably cheaper here compared to the downtown area of Regina.

GreenStay will be unique in the way it interacts with its customers. For example, two people will be on front desk duty at all times. One employee will check guests in while another can offer guests with a variety of personalized services. The friendly and open demeanor of our front desk staff may catch first-time customers by surprise as they will help customers with luggage, get to know our customers on a more personalized level, as well as educate our customers on GreenStay’s environmental initiatives, and how they work. The energy conserving goals we have in place will leave a lasting impression with our customers that should generate brand loyalty. Our zero-carbon emission goal will be equivalent to taking an estimated 300 cars off the road each year. What does this mean to each individual that chooses us? Every night a customer chooses GreenStay over our competitors it is like taking their vehicle off the road for nearly 160 kilometers. At GreenStay, we will sincerely applaud our customers for these differences they are making in the environment every time they stay with us. It is GreenStay’s goal to create this emotional connection with our customers; and is further expressed in our slogan: “Sleep Better Because You Feel Better.”

The strategic combination of our competitive advantages will make GreenStay financially viable. The list below entails some of the key aspects to the sustainability of GreenStay’s future success:

More responsive to changes – GreenStay will not have to follow franchise head quarter instructions allowing us to quickly respond directly to the Regina market

Higher profit margins Environmental brand & accommodations Superior Service Differentiated position/ cost leader Lower operating costs

Since majority of our costs are fixed, the most sensitive determinant of GreenStay’s financial success is our ability to generate customers. This is another reason why we are choosing Regina as the location for GreenStay. Regina/Saskatoon have the 3rd highest occupancy rates out of major cities in Canada, allowing GreenStay to provide you with one of the largest cushions between average occupancy rates and break-even occupancy rates in the country. The table on the next page provides a snapshot of our key financial projections:

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Table E.1 Key Financial Statistics

Year 2009 2010 2011 2016 2017 2018

Occupancy 50% 60% 70% 72% 72% 72%Revenue $2,796,35

0 $3,458,975 $4,160,632 $5,010,248 $5,170,576 $5,336,034Expenses $2,110,64

2 $2,454,309 $2,381,645 $2,541,503 $2,652,620 $2,717,570N.I. Before Tax $685,709 $1,004,666 $1,778,987 $2,468,746 $2,517,956 $2,618,464Income Tax $140,784 $231,853 $442,616 $573,686 $585,989 $611,116Net Income $544,924 $772,813 $1,336,371 $1,895,059 $1,931,967 $2,007,348

Net Present Value (NPV) $3,453,358Expected Internal Rate of Return (IRR) 34.6%

Cash Flow Payback Period 3.38 years

Management Team

The manager, Cody Dumonceaux, will be in control of many aspects of GreenStay. One of the more important aspects under Cody’s job scope will be cost control. Cody’s past experience as a non-operations accountant with Canadian Natural Resources Ltd. (CNRL) gives him sufficient enough of a background to be successful in this area. Cody will be comfortable dealing with the magnitude of expenditures facing GreenStay; as last summer he analyzed, disputed, resolved and cleared over $700,000 worth of outstanding invoices for CNRL within a few months period. Cody will also be completing his Bachelor of Commerce degree from the University of Saskatchewan as a Finance Major in April 2009.

The assistant manager, Blaine Roth will be in control of many aspects of the hotel. Maximizing customer satisfaction and building a strong brand are major aspects of Blaine’s job scope. Blaine’s past experience in project management as an engineer for EnCana ensures that aspects of his position such as hotel upgrades, renovations, and staffing will be dealt with effectively. Blaine will be graduating with a degree in Mechanical Engineering in April 2009.

The remainder of the GreenStay business plan provides a detailed action plan outlining the necessary steps to achieve future financial prosperity. In return, we are asking for $3.86 million in exchange for 62% of GreenStay. The $3.86 million equity investment is the required start-up capital for this venture. The remaining 60% of financing will be raised through debt. This will ensure the successful completion of GreenStay, from the initial construction phase to our inaugural grand opening.

In essence, the GreenStay venture can provide you with the best of both worlds. GreenStay will generate healthy returns while making an unprecedented impact on the Saskatchewan hotel industry, and the community we operate in. We believe this push towards environmentalism is

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not a trend, but an emerging shift in our culture. We are eager to get this project underway with you.

2. Business Overview

2.1 Introduction

GreenStay Hotel & Suites is a 101-room environmentally friendly hotel to be built on the south end of Regina, Saskatchewan at the intersection of Lewvan Dr. and the Trans Canada Highway. The goal is to provide a hotel experience that is similar to other mid scale hotels but with as little environmental impact as possible. The GreenStay hotel looks to take advantage of growing environmental concerns of consumers. By using the environmental aspect, GreenStay plans to use the most recent technology to minimize its dependence on non-renewable resources by producing our own electricity.

2.2 Mission Statement

We are committed to providing environmentally sustainable accommodations while delivering an exceptional guest experience.

2.3 GreenStay Hotel & Suites Overview

Saskatchewan’s 1st Net Zero Hotel Self-sustainable Reduces energy consumption by 75% Reduces water consumption by 25%

2.4 Goals

Year 1 Top Green Key and Green Leaf ratings 50% occupancy Approximately $2.8 million in revenue Environmental & ethical leader in the community Approx 13.4% ROE Low employee turnover High customer satisfaction Build a strong brand and loyal customer base

Year 4 72% occupancy rate Approximately $4.4 million ROE increasing to 31.1% Established brand

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2.5 Regina Hotel Industry

In general, the hotel industry has been moving to become more efficient. Hotel chains have been implementing policies, such as a towel reuse program, to help cut down on costs.

The Regina hotel industry is currently booming with the past strength of the Saskatchewan economy. New hotels are being built and opened such as the Wingate located in the downtown core, the new Holiday Inn Express on the south end of Albert St as well as a Four Points by Sheraton located on the east end of the city. Even with the influx of new hotels within Regina, people within the industry still believe there is a shortage of hotel rooms within Regina. As well, Regina and Saskatoon currently share the 3rd highest occupancy rates in Canada (Macdonald, 2007).

The recent downturn in the economy may influence occupancy rates in Regina. Traditionally the hotel industry is relatively stable as earnings are closely correlated to the strength of the market as a whole. Our conservative occupancy rate forecasts of 50% in year 1 and 60% in year 2 are adjusted for the potential of a strong economic slowdown.

3. Operations Plan

3.1 LocationGreenStay will be located in Regina Saskatchewan. The specific location of the hotel is proposed to be at 5050 Lewvan Drive, just north of the Trans Canada Highway. The map below Figure 3.1 shows the location of the hotel, as well as competitors, food services, and other major landmarks.

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Figure 3.1 Location (Google Maps Sept 20th , 2008 )

The location is just minutes away from the airport and is close to restaurants such as Kelsey’s, Montana’s, and Earls. This location should allow us to be competitive as it is an area of the city that has not been saturated by many other hotel chains. In fact, there is only one other hotel in our area. It is also very close to high traffic routes. This location also gives us the benefit of being the most strategically placed hotel for eastbound travelers on the Trans Canada Highway. As well, land values and property taxes are considerably cheaper in this area of the city. This location will also allow us to give our patrons more of an environmentally friendly feel. To the west there is virtually an unlimited amount of open, green space for patrons to enjoy a beautiful sunset over the open prairie sky.

3.2 Site Plan

The hotel is the central feature in the 3-acre site plan. There are 183 parking stalls located around the hotel to accommodate guests and staff. There is an entrance to our parking lot from the southbound section of Lewvan Drive. To accommodate patrons traveling on the north bound section, a service road will be built so they can cross Lewvan Drive. These patrons would enter at the rear of the hotel. The rear of the hotel also houses an industrial loading area with enough space to maneuver large transport vehicles. In the front of the hotel there is a loading and unloading area for guests. Located on either side of the hotel would be the wind turbine sites.

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Figure 3.2 Site Plan

3.3 Building Floor Plan

The main floor is shown in Figure 3.3a. The main floor of the hotel will include a large lobby area and reception desk. Behind the reception area would be the office space for managers and supervisors as well as a business centre for guests. There would be a small store for ordinary concessionary products along with environmental products such as household cleaners etc. The hotel also would have a conference room, which will be able to hold 100 people in theater style seating. The conference room is equipped with a stage, which has built-in storage underneath. The conference room is located on the opposite side of the hotel than the guestrooms so if there is a loud function it will not disturb our guests on the main floor. The conference room will also have a separate entrance/exit area so customers using the room will not have to go through the main lobby.

The swimming pool and hot tub area will house a 15x25 foot pool and a 10-person hot tub. The pool is situated in close view of the front desk so our staff can occasionally check on the patrons using the pool. There will be no lifeguard on duty at the pool and the use of that facility will be at the risk of the patron. There is also a fitness area which contains basic cardio equipment such as a treadmill and stationary bike along with free weights.

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Figure 3.3a First Floor

Next to the pool area is the mechanical room which houses building heating and power equipment, as well as janitorial supplies and maintenance equipment. The laundry/housekeeping area includes large industrial washers and dryers for linens and housekeeping supplies. There are also guest laundry services that include coin operated laundry machines for extended stay patrons. There is also a staff room for employees to eat and take breaks in as well as a staff washroom. A 20-inch LCD television will also be placed in the staff room.

On the main floor there are 9 guest rooms. There is also a recycling area to promote guests to recycle products such as drink containers and newspapers. There are two stairwells at opposite sides of the hotel and a set of two elevators. There is a vending area near the elevators. There is a business centre with computers, fax machines and other business utilities for guests to use. There is a carport in front of the hotel to protect guests from the elements during the year. There is also a proposed site considered for a future restaurant if the opportunity arises. A proposal may be offered to restaurants to gauge the interest in building a restaurant in this location. This restaurant would be financed and operated by the restaurant owners.

Figure 3.3b shows Floors 2-4 of the hotel. Each floor contains 31 rooms. There are also varying sized rooms for different suites that will be available. There are two stairwells at opposite ends of the hotel as well as a more central location for elevators shown by the crossed boxes. There will be recycling centers; ice and vending machines available near the elevators. On each floor there are also more guest laundry services for long stay guests.

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Figure 3.3b Floors 2-4

3.4 Room Floor Plans

GreenStay has 3 different room layouts, they are a double queen room, regular king room, and king suite. The rooms vary in size depending on where they fall in our layout but contain mostly the same furnishing. The rooms all contain standard items such as free WIFI Internet, free local calls, cable TV, in room movies, iron and ironing board, etc. All of the rooms in this hotel are non-smoking.

The Double Queen Suite is shown below and features two queen beds, desk, and entertainment centre. Figure 3.4a shows the layout of the room.

Figure 3.4a Queen Double Layout

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The regular king room shown below features one king bed, a desk, a coffee area, and an entertainment centre. Figure 3.4b Shows the regular king room layout.

Figure 3.4b Regular King Layout

The King Suite rooms similarly have one king bed, an entertainment center and desk. They also have a rolling armchair sectional sofa, and Jacuzzi tub with shower. Figure 3.4c shows the room Layout of the King/Jacuzzi Suite Layout.

Figure 3.4c King/Jacuzzi Suite Layout

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There is also going to be a variation of the King Suite called the Jacuzzi Suite, which will contain similar furnishings but have more room for the guests.

3.5 Average Business ActionsOur hotel will be open for business 24 hours a day and will generally be comprised of 3, 8-hour shifts for employees. The following is a list of daily, monthly, and annual duties for each person on our staff.

Manager – 7am – 4pm (1 hr lunch)Day

Oversee all operations Resolve major conflicts with guests Resolve conflicts between employees Approve expenditures Meet with potential guests Recruit new corporate guests

Month Approve work schedules Analyze key financial ratios

Year Compile financials Ensure taxes are completed and filed Analyze past year and set strategy for upcoming year Evaluate managers and staff Firing of staff when needed

Assistant Manager – 7am – 4pm (1hr lunch)Day

Order supplies Look after booking the conference rooms Ensure conference rooms are set up and occupants are looked after Ensure hotel brand is being maintained and strengthened

Month Schedule managers Assist manager Analyze competitor’s room rates Seek out new clients Meet with other managers to coordinate events

Year Yearly room inspections Prepare yearly reports Ensure licenses are up to date i.e. swimming pool, elevator, SaskPower Electrical

Inspection Coordinate hotel upgrades / renovations

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The manager, assistant manager and front desk supervisor will alternate weekends.

Front Desk Supervisor – Shift: 8am - 5pm (1hr lunch)Day

Oversee front desk operations Answer phones Take reservations Check in/out guests Get pillows, blankets etc for guests Set up conference rooms Decorate lobby Stock lobby store Compile daily reports Prepare cleaning lists Educate customers on environmental initiatives

Week Schedule front desk staff Train new front desk staff

Year Evaluate front desk staff

Front Desk Staff - Shifts: 7-3, 3-11, 11-7 Day

Answer phones Take reservations Check in/out guests Get pillows, blankets etc for guests Set up conference rooms Decorate lobby Stock lobby store Guest call backs to ensure quality service Monitor hotel security Keep an eye on the pool to ensure guest safety Educate customers on environmental initiatives

Week Phone other hotels to check what rates are being charged

Year Inventory office supplies

Maintenance Supervisor – 7-4 (1hr lunch)Day

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Organize housekeepers, maintenance/janitorial, and laundry staff Oversee all Maintenance and renovations

Week Schedule housekeepers Request new supplies Train new staff

Year Evaluate staff

Housekeepers – Shifts: 8 and 9 till finishDay

Clean rooms Load cleaning carts Vacuum room Minor room maintenance Report major room maintenance needed Take out garbage Sort recyclables

Week Extra cleaning – vents, behind TV, furniture etc

Year Inventory cleaning supplies

Maintenance/Janitorial – 7-3, 3-11 Day

Maintenance Clean sidewalks and driveway Clean lobby and public areas Coordinate renovation projects Maintain pool Empty public garbage Sort and remove recyclables

Week Report any recurring problems Report on renovation projects

Year Inventory Supplies

Laundry – 9-till finishDay

Strip rooms of used linen Wash and fold laundry

Week Request supplies

Year

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Inventory Supplies

As a precaution, one maintenance employee will be on call for serious events only.

3.6 Environmental Initiatives

The GreenStay hotel will have many initiatives that will make it more efficient than any other competitor. These initiatives will vary in nature. Some will have only minor effects while others will make a huge difference to how the hotel operates. The primary goals of the hotel are to reduce the overall power usage to a point where it can produce enough electricity to cover its needs. GreenStay will reduce its use of water, paper and non-renewable resources such as natural gas. It is our goal to reduce energy consumption by 75% and water consumption by 25%. The justification behind this ambitious conservation goals stem from results actually seen in the Factor 9 home in Regina, Saskatchewan (Saskatchewan Resource Council, 2008). As well, many policies and practices will also be in place.

The largest and most visible environmental aspect of GreenStay will be its use of two wind turbines and a vast network of solar photovoltaic panels. Both systems will be used to produce electricity. They will be tied into the SaskPower grid and when the systems are producing more power than being used by the hotel the excess will be put into the grid and the hotel will receive credit. These credits will be redeemed when the systems are not producing enough electricity.

The reduction of electricity use is also a key component to GreenStay’s principles. This relies on the choices made by the hotel such as choosing energy efficient appliances. Whenever possible, Energy Star appliances will be used. This will not only help in the building obtaining an Energy Star rating but it will also reduce the amount of electricity used. This initiative will also include using appliances such as energy efficient LCD TV’s.

Key card activators will be installed in all rooms. When a guest enters the room they will be required to place their key card into a key slot that will allow electricity to all the lights and electrical sockets in the room. The devices will ensure lights and other electronics such as TV’s are turned off when no one is in the room.

To further reduce the amount of electricity used, all lights will use either fluorescent or LED bulbs. The hallways on each floor will also be equipped with motion sensors. When no one is in the hallway the lights will be dimmed to reduce power usage. When someone enters the hallway the sensors will activate the lights. The same system will be used in other public areas such as the business center, fitness center, public laundry room and the public bathrooms.

To heat and cool the building a geothermal heat pump will be used. This system uses the earth's ability to store heat in the ground and water thermal masses. This system operates based on the stability of underground temperatures: the ground a few feet below surface has a very stable temperature throughout the year. A geothermal heat pump uses that available

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heat in the winter and puts heat back into the ground in the summer. The system will also be used to pre heat the hot water for the building as well as the water for the pool and hot tub. This will reduce the amount of natural gas required to heat the water.

To improve the buildings ability to be heated and cooled 12” highly insulated walls will be used in the construction phase of GreenStay. This will ensure that the building has a R60 rated value. Currently most hotels are built to R20 standards. This will result in the building needing less heat in the winter and less air conditioning in the summer.

Programmable thermostats will also be used in the rooms. Through an Energy Management System, the front desk will also be able to control them. As a result, the room can be heated or cooled only if someone is staying in the room. Also, when a guest makes a reservation they will be required to give an approximate time of arrival. This will enable our front desk staff to run the air conditioning or heating in the room to have it ready by the time the guest gets to the hotel.

Reducing the amount of water used for the hotel will also be a key component to making the hotel environmentally friendly. The water efficiency plan has four components. It will utilize dual flush toilets. These toilets allow for the option of using different amounts of water for different operations. GreenStay will also landscape its property using many beautiful plants native to Saskatchewan. This will significantly reduce our watering costs during the hot summer months. Lastly is the use of water efficient taps and showerheads. These faucets use vacuum flow valves that pump air into the water stream but will not compromise the guest experience.

Recycling will play a large role in the hotel. A recycling center will be set up on the main floor in which guests will be encouraged to use. Each garbage container on the premises will also have a recycling container included. Finally, each guest room will have garbage bins and recycling bins. This will give each guest ample opportunity to reduce the amount of garbage that ends up in landfills.

To reduce the amount of waste the hotel uses it will make use of large shampoo dispensers, rather than small individual ones. The rooms will include reusable glasses rather than disposable plastic glasses. Every morning customers will have access to an online newspaper subscription therefore reducing the demand for a paper edition.

Conventional hotels use a large amount of paper in the check-in and checkout process. By utilizing the latest technology GreenStay will use a minimal amount of paper. Using electronic signature pads and emailing bills to the guests once they check out will the use of paper for every guest. If guests need a paper copy it will be printed on 100% recycled paper. In the conference rooms, whiteboards will be provided. This will further reduce the need for paper.

3.7 Environmental Certifications

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While there are many different certifications available from different agencies the GreenStay Hotel will focus on three. They will include LEED, Green Leaf and Green Key. These will be key in promoting the hotel and ensuring guests that their stay is legitimately environmentally friendly.

The Leadership in Energy and Environmental Design (LEED) Green Building Rating System is a system used to certify buildings as being environmentally friendly (Canadian Green Building Council, 2008). The Canadian Green Building Council runs the program. LEED has a varied scoring systems based on a set of required "prerequisites" and a variety of "credits" in the six major categories: sustainable site, water efficiency, energy and atmosphere, materials and resources, indoor environmental quality, innovation and design process. For LEED certification for new construction for commercial buildings there are 69 possible points and buildings can qualify for four levels of certification: certified (26-32 points), silver (33-38 points), gold (39-51 points), platinum (52-69 points). Our goal is to certify in the platinum level and use this in promotional material for the hotel.

TerraChoice Environmental Marketing and Audubon International have partnered to offer the Audubon Green Leaf Program (Audubon International, 2008). The Program is a great resource for the hospitality industry. Offered at two levels, it enables hotels to succeed with their eco-efficiency savings and environmental commitment. The Program also provides the professional and leisure traveler verified environmentally responsible options. TerraChoice Environmental Marketing Inc. is an environmental consulting agency based in Ottawa, Canada. The company stewards the Environmental Choice Program for the Government of Canada. GreenStay aims to earn the 5 Leaf rating which is the highest attainable.

The Green Key program is a self-administered program run by the Canadian Hotel Association (Hotel Association of Canada, 2008). The Hotel Association of Canada's (HAC) Green Key Eco-Rating Program is a graduated rating system designed to recognize hotels, motels, and resorts that are committed to improving their fiscal and environmental performance.

Based on the results of a comprehensive environmental audit, hoteliers are awarded a 1-5 Green Key rating and given guidance on how to "unlock" opportunities to reduce operating costs and environmental impacts through reduced utility consumption, employee training, and supply chain management. Members also benefit from powerful sales, marketing, public relations, and team building opportunities, not to mention positive feedback from guests.Currently the highest level attained by Regina hotels is 4 Green Key’s. Those hotels are the Sandman and The Delta. GreenStay will easily achieve 5 Green Key’s and will be the only one at this level.

The design, functionality and cost of the GreenStay Hotel are based largely on three houses that have previously been built. These houses include the Dumont house in Saskatoon (built 1992), the Factor 9 house in Regina (built 2007) and the Riverdale Net Zero duplex in Edmonton (built 2008). These houses have been developed and proven to be sustainable and very efficient.

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Our project has been adapted from the functionality and costs of these buildings to suit a hotel’s needs.

The latest building, the Riverdale duplex is expected to have a net zero effect on the environment. It will produce enough power to cover the amount it uses throughout the year. The most efficient feature of these buildings is its insulation, which reduces its costs for heating and cooling. This is a very important feature of buildings on the prairies. Each of the three buildings have been constructed it is most notable that the R-values of the insulation has increased. The Riverdale duplex has an attic R-value of 100 (RSI 17.6), the walls R-value of 56 (RSI 9.9) and a basement floor R-value of 24 (RSI 4.2). It also includes triple (S) and quadruple (N,E,W) glazed windows with low e and argon gas, passive solar space heating, active solar space and water heating, and a photovoltaic system for electricity generation (Saskatchewan Resource Council, 2008).

Other energy efficient measures include energy star appliances, compact fluorescent lamps, a drain water heat exchanger, air-to-air heat exchanger with high effectiveness and a whole house electricity-monitoring device.

Through the building and monitoring of these houses some very important discoveries have been made. Some of the lessons learned include: It is very important to develop an integrated design—one in which the entire building is designed as a system and not as a group of unrelated components. Energy conservation measures in the building envelope, in addition to lowering fuel and energy bills, can also reduce the capital cost of a heating system by reducing the size and possibly the complexity. Heat recovery on the ventilation air is very important, but more work needs to be done on improving reliability, and reducing maintenance in arctic conditions. Reliable defrosting is a key issue. These cold climate houses would perform extremely well in moderate climates. For instance, the Dumont residence in Saskatoon and the Factor 9 Home in Regina needs no space heating until the outdoor temperature is below about 4oC. The average temperature in the coldest month of the year in Vancouver, B.C. is 4oC.

Each building has achieved very positive results while only slightly increasing the cost of construction, as compared to a conventional building built to building guide specifications. The Dumont house achieved energy performance of 14,900 Btu/ft2 while construction costs increased by 7%. The Factor 9 House achieves energy performance of 9,500 Btu/ft2 while costs increased by 12%. The Riverdale complex achieved energy performance 0 Btu/ft2 while costs rose by 35%. All increases are calculated excluding the cost of land.

The reason for such a large increase in the Riverdale complex was because of a $100,000 solar photovoltaic system for electricity production. This is a very significant increase, which is a result of the relatively small size of the complex. With the much bigger size of a hotel it is expected that the costs for energy efficiency can be brought down through economies of scale and further reducing the buildings energy requirements.

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3.8 Supply Analysis

To supply office furniture fixtures and some equipment we plan to use Millwork Plus out of Regina. All of the furniture stores will be contacted in regards to the room furnishings to determine who can provide the quantity and quality of furniture we require, at the best price possible. For supplies such as room amenities, cleaning products, and paper products a contract will be established with Country Club Distributors as our vendor.

3.9 Service Providers

We will be supplying our own power but will also be tied into the SaskPower grid in order to do net metering. Net metering is the amount of power you supplied to the grid minus the power you used to determine what power you owe. GreenStay plans on being a net-zero hotel in this regard. To make this feat possible GreenStay will have a total energy production capacity equivalent to our average annual needs. For example, at certain times of the year GreenStay will be producing more electricity than we need. It is during these times that GreenStay will be sending power back into the SaskPower grid and in turn collecting a credit. In peak energy consuming seasons GreenStay will use these credits to compensate for its additional power needs. If GreenStay happens to produce slightly more energy than we use we will sell our green power back to the grid at $.0647/ kW-h. If GreenStay happens to produce slightly less than our annual need we will purchase green power back from the grid. SaskPower ensures the green power is only produced by using environmentally sustainable methods. Any utilities we do not supply on our own will be supplied by the city of Regina’s services. This includes water and sewage needs. For servicing of our geothermal systems we will be using Dwight’s Geothermal and Drilling. Mech-EL Services will be used for our repairs and maintenance of our solar energy system while we plan on contracting our wind power servicing needs to Black & McDonald.

Any minor maintenance including landscaping work (grass cutting, watering plants, etc) and pool maintenance will be done by our in house maintenance staff. Our maintenance staff will also be able to perform small-scale electrical and plumbing projects. City Bobcat Services will be contracted out for any cases in the winter when parking lot snow removal is necessary. To ensure that our computer systems are working properly we will contact Computer Repair Regina if we have any issues. Sasktel will be our phone services provider. We have an accountant on staff that also acts as our manager. As well, a Chartered Accountant at Meyers Norris Penny can help with any of the more complicated matters. For legal services we plan to have a lawyer on retainer.

3.10 Capital Budget

The main capital expenditure this business has is the hotel building. The construction costs are higher than regular hotels of the same size to account for increases in efficiency and the extra cost of implementing the environmental initiatives.

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Table 3.10 shows the capital start up budget including the sub costs of the environmental capital. The total startup capital needed for this business is $10,225,000.

Table 3.10 Capital Expenditures

Initial Capital Purchases CostLand 700,000 Building 8,000,000 Environmental Capital: 870,000 Solar 740,000 Wind 40,000 Geothermal 90,000Computers & Operating System 135,000 Telephone/ Communication 60,000 Furnishings, Fixtures & Equipment 460,000 Total 10,225,000

A more detailed cost breakdown of furnishing, fixtures and equipment can be found in appendix 4.

3.11 Operating Expenses

Table 3.11 shows the operating expenses for year one of the businesses. The main expenses that this business will have to deal with are fixed expenses such as wages, dept payments, and insurance.

Table 3.11Yearly Expenses

Expenses Cost($)Wages 641000 Employee Benefits 86,400 Utilities: 67,988 Fixed 44,000 Variable 23,988Interest on LT Debt (Mortgage) 377,000 Insurance 150,000 Property Taxes 120,000 Credit Card Interchange Fees 41,945 Capital Cost Allowance 320,900 Supplies Expense 105,750 Fixed 30,000 Variable 75,750

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Ads & Promotions 85,000 Accounting & Legal Expense 35,000 Repairs & Maintenance 69,909 Total Operating Expenses 2,110,642

4. Human Resource Plan

4.1 Organizational Structure

Figure 4.1 shows the staff hierarchy of GreenStay. The board of directors includes the manager and assistant manager along with a lawyer, hospitality industry expert, and 2 investors. The assistant manager will be a qualified accountant so outside expertise in this area would not be required. Both the manager and assistant manager will have business backgrounds and university degrees.

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Figure 4.1 Corporate structure

The front desk supervisor will undertake regular front desk tasks as well as manage the other front desk employees. He/she will be compensated accordingly. The maintenance supervisor is in charge of all other staff and is required to ensure the hotel is running effectively. The maintenance supervisor along with the maintenance staff will ideally have some background experience working in trades under an electrician or carpenter. The house keeping and laundry staff would have little prerequisite experience needed.

4.2 Training Programs

Most of the training for the positions at the hotel would be done in house. New employees will be trained by the employees currently working at the hotel. Every employee will also be educated about the sustainable initiatives that the hotel offers. This would be especially important for the front desk staff as they have the most interaction with the customers.

4.3 Human Resource Costs

Table 4.3 shows the annual and hourly wages of all employees. It also shows the total wages expense for the first year.

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Table 4.3 Hourly & Annual Wages

Position Year 1 positions Hourly Wage ($/hr)

Annual wage ($/yr)

Hotel Manager 1.0 25 90,000Hotel Assistant Manager 1.0 25 75,000Front Desk Supervisor 1.0 13 26,000Front Desk Staff 7.0 11.5 23,000Maintenance Supervisor 1.0 14 28,000Maintenance Staff 1.0 12.5 25,000Housekeeping Staff 8.0 12 24,000Laundry Staff 2.0 11 22,000Total 576,000

4.4 Human Resources Strategy

The HR strategy that we will employ will be based on creating a sense of pride for our employees. Since our hotel will be a leader in environmental initiatives we want to inform our employees how their work helps to benefit a sustainable future. By educating our employees about these benefits they will become more engaged in their work. In turn, this new knowledge for employees will be passed on to our customers, which will lay a strong foundation towards building GreenStay’s brand loyalty.

We will encourage new sustainable initiatives from all employees. Prizes or bonuses will help motivate employees to identify new areas for improvement.

The workplace we build will have a more personalized family feel. Recognizing employees’ birthdays and other important dates provide a small example to how we intend on creating a comfortable and friendly workplace environment. Monthly team meetings will also be held with all staff. These meetings will ensure that everyone understands all of the current issues facing the hotel. As well, employees will have the chance to share their ideas. As management of GreenStay, we also want to practice an open door policy. We will create an environment that employees will feel comfortable expressing their feelings to us, whether it be face-to-face or anonymously. This plan will help us make any necessary adjustments in our management style. GreenStay will foster a cohesive workplace culture that will provide the encouragement and opportunities for employees to build on their roles in the organization. Employees will continuously be further educated about new environmental issues and initiatives, and how they are making a positive impact by being a part of the GreenStay team. Another goal of the GreenStay management team is to create a strong vision based around our mission statement: we are committed to providing environmentally sustainable accommodations while delivering an exceptional guest experience. This will be developed through inspirational and trusted management. In essence, fairness and consistency in our management practices is a top priority.

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GreenStay will target potential employees who seem to have a vested interest in the environment. For example, students enrolled in environmental or earth studies programs will be sought after, especially for the front desk staff positions. While being interested in sustainability, these students will also be busy with their studies at different times, allowing us to be more flexible in scheduling.

5. Marketing Plan

5.1 Industry Trends

The boom in the Saskatchewan economy in recent years has made finding hotel rooms hard to come by. Hotels in Regina are very busy resulting in a shortage of rooms, especially during large events held in the city.

Being as environmentally friendly as GreenStay intends on being immediately creates a large hurdle for competitors. Our energy and water conservation techniques are only possible if a hotel is originally constructed this way. No renovations or refurbishing will bring competitors even close to the savings and benefits GreenStay will achieve. Therefore, if a firm plans to duplicate our environmental initiatives it will take them approximately two years to have this hotel constructed. This two-year window leaves GreenStay with ample opportunity to build up clientele before a competing environmentally friendly hotel can open its doors.

Many hotels throughout North America are becoming green. These transitions are usually done through retrofits. Many of these green hotels are boutique hotels and only offer a few rooms per facility. GreenStay will offer a large amount of regular environmentally friendly hotel rooms.

5.2 Competitors

We have analyzed our competitors through SWOT analysis and have found these are our competitor’s main strengths shown below. The full SWOT analysis can be found in appendix 2.

Location & Brand Recognition Best Western Holiday Inn Express Holiday Inn

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Travelodge Comfort Inn Howard Johnson Sandman Inn

Strong Business focus Wingate

Large Conference Capabilities West Harvest Inn

The biggest factor that we will face from competitors is their brand name recognition. As a new hotel, we will not have the experience in the hospitality industry that the others have. They already have an extensive marketing strategy in place and have contacts with companies with hotel needs. The brands also have a standard that has to be met at all hotels within the chain and customers know that they will have an experience that is similar at all hotels anywhere in the world. These hotels will also have a client base already built up and we will be forced to attract customers from these competitors.

The biggest weakness of all of GreenStay's competitors is that they all fail to properly address increasing environmental concerns. There are not any hotels currently enrolled in the Green Leaf eco-rating program and there are only a few involved with the Green Key rating program, with the highest being rated at 4 keys out of a possible 5. These programs are designed to help environmentally conscious consumers choose which hotels are acting in an environmentally conscious matter.

5.3 Consumers

Anyone who stays at a hotel has the potential to buy our service. When guests are looking for a hotel there are four major factors that come into play. Here are the main factors and how we address them.

Price- we would be comparable to other hotels in our market segment Location – close to major routes and airport Amenities – offer similar amenities as other hotels with less environmental impact Brand/Reputation – Try to inform people about our environmental initiatives and

become involved in the community

5.4 Target Market

The target market of GreenStay reaches far beyond the environmentalists who travel through Regina. The target market for GreenStay is segmented into three groups: business traveler, leisure travelers and group travelers. The GreenStay will be positioned as an environmentally friendly alternative to other hotels in the mid range market. GreenStay will offer similar amenities as other hotels in this market with the added bonus of a smaller environmental footprint.

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The average age of the guest will be between 25 and 55 years old with moderate incomes. Younger guests will not be attractive as their incomes usually draw them to a more economical choice.

During weekdays, especially during the winter months (September thru May) GreenStay will focus on business travelers. These are guests who are in Regina on work related events such as sales people working within the city. This group is attractive because it is usually their employer who makes the reservations and pays for the room. This will require building relationships with various other businesses and government organizations which regularly have employees working in and around Regina.

During the summer months (June thru August) and on weekends the focus will be on leisure travelers who are in Regina for vacation or other personal events. This will include families who are on vacation or here for family events such as reunions and weddings. Also, due to the hotels location and easy access to the airport it will be an attractive place for guest to stay prior to and after flights in and out of Regina.

Group travelers are larger groups of customers that are in the city for various events such as hockey and soccer tournaments. These group travelers will be important for filling the hotel on weekends when business travelers have gone home for the weekend and during the winter when less people are vacationing.

Attracting teams will be important as they involve group bookings. These bookings can be very profitable, as they will take a large block of rooms, usually 10-20 rooms, and only require one reservation. As a result sponsoring sporting events throughout the city will get our hotel’s name into tournament event information packages that usually include a list of hotels in which the tournament organizers will send out to the teams that are participating.

The midrange market has the greatest potential because it is the largest market as seen by the amount of hotel rooms already in the market. It shows that there is a demand in this market. It also provides the least risk as we will only be seeking 2% of total market share, as the 2% is divided among all the hotels they will see very little overall loss and then we are less likely to face major retaliation from competitors. It is also of lower risk because building a midscale hotel is less expensive than trying to enter the high-end market. We would have an advantage over other hotels in this market by providing the same amenities with the lower environmental impact.

5.5 Competitive Advantage

GreenStay will have a definite advantage over its competitors by offerings guests a choice of staying at a hotel, which leaves a smaller footprint on the earth. The following is a list of more sustainable advantages:

More responsive to changes - don’t have to follow franchise head quarter instructions and we will be able to respond directly to the Regina market

Higher profit margins

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Environmental brand & accommodations Superior Service Differentiated position/ cost leader Environment – currently environmentally conscious consumers do not have a

visible choice Lower operating costs – Our operating cost will be lower as we eliminate our

electric bill and reduce water and other costs

5.6 Marketing Strategy

We want to be the dominant environmental hotel and also a mid-scaled hotel market share leader in capacity levels by year 5. In the short term, first 2-5 yrs, hotels will have difficulty duplicating our environmental initiatives; we also have very high profit margins in the industry so we hold both a competitive advantage with our environmental initiatives and niche marketing, product leadership along with being a low-cost producer.

Overall we will focus on presenting the hotel as an environmentally friendly experience. We will be the environmental choice, as consumers do not currently have this choice.

We want to avoid price wars, we feel that we provide a hotel that is differentiated in what we offer and will be able to capture existing hotel’s market share. We will look into the opportunity of forming alliances with other environmental hotels across Canada that meet the same environmentally friendly standards as ourselves. We also intend on capturing existing customers from any hotel, but will focus our marketing efforts on appealing to our target market.

The midrange market has the greatest potential because it is the largest market as seen by the amount of hotel rooms already in the market. It shows that there is a demand in this market. It also provides the least risk, as we will be seeking 2% of total market share, and approximately 5% of the midrange market share. Since we are penetrating the largest market our competitors will see the smallest reductions in revenues. Their small loss in sales makes it financially unfeasible for them to retaliate with major competitive pressures directly to GreenStay.

Midscale hotel market 5% of midscale market share 2% of overall market share Strong environmental initiative Personalized quality service Market leader

- Dominate in the environmental market- Capacity rate leader in midscale market by year 5

EnergyStar rated building Green Key rating

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Green Leaf rating LEED Certified

5.7 Pricing policy

GreenStay will use a market-based differential pricing policy. This means that GreenStay will charge similar prices as competitors but differentiate the service we sell (see appendix 1 for our competitors’ average room rates). However, marketing research we conducted revealed that nearly 84% of customers would be willing to pay a premium for GreenStay. Appendix 3 provides the breakdown on how much more customers are willing to pay. The results to our survey have been taken with caution, as we do not want to price ourselves out of the market. We do feel that the results and sample size we generated is sufficient enough to warrant a 5-7% premium at our hotel. This minor pricing premium will be based on hotels with similar amenities. If we find this strategy to be ineffective our prices can be adjusted immediately.

Since our prices must be competitive with other hotels of similar service level the largest factor to meet our profit objectives is the volume of sales that can be generated. In the hospitality industry there is also variable pricing, which can be done such as charging more on weekends or during other high demand periods. Discounts will be offered to groups such as corporate clients, seniors, and frequent users. We also offer an added value for families to stay at our hotel by having children 12 and under stay for free.

5.8 Advertising

The comprehensive advertising and promotion plan for GreenStay will be implemented according to the budget table found within Table 3.6 in section 3.6. The advertising will be focused on getting the customers to the hotel where we feel our hospitality and environmentally friendly initiatives will make us a hotel of continued choice.

The objectives of our advertising are to inform people that they have a choice in environmental accommodations and to create awareness of the hotel. We will use various customer retention initiatives to create brand loyalty and familiarity. GreenStay will be the brand associated with the environment.

Our slogan will be: “Sleep Better Because You Feel Better,” which portrays the message that guests will have a better night’s sleep at our hotel because they feel better about their stay. In other words, they will feel like they are doing something good for the earth by staying at our hotel.

Our guests will be informed through our advertising that one night’s stay in our hotel would be equivalent to keeping their car off the road for 160 kilometers. We would also inform people that our hotel operating at full capacity for a year would effectively take 300 cars off the road for a year if you compare carbon emissions (National Energy Foundation, 2008).

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Every advertisement will contain two features from the hotel. The first feature will be an environmentally friendly initiative and the other will be an amenity offered by the hotel. This is meant to show that the hotel offers the best of both worlds; it has environmentally friendly rooms without sacrificing regular amenities that one would expect at a similar hotel.

When guest arrive to the hotel, the lobby will have a very trendy look which will give the image of a hotel that is very advanced and on the cutting edge. A video display will also be featured in the lobby, which will constantly show a slideshow presentation that outlines the features of the hotel with emphases on the environmentally friendly initiatives and how they work. Education through the front desk staff will be key to explaining how the features work so that they are being used to their full potential. In such a case as the dual flush toilets, one may not realize how they work or how to use them properly. Also, given the increasing popularity of environmentalism both government agencies and private and public companies have been attempting to associate their names with going green. GreenStay will exploit this as an opportunity by offering government and other companies the chance to have their name placed on a plaque in our front lobby. This plaque will list and commemorate organizations that are trying to make a difference in the environment by staying with GreenStay. These organizations will only be identified on our plaque if they have corporate/government accounts with us and stay with us a particular number of times per month. This plaque will give these organizations a good name to our wide-customer base while showing legitimacy and professionalism on GreenStay’s part.

The guests will find in each room a pamphlet that changes every few months. These pamphlets will contain environmentally friendly initiatives that have been implemented into the hotel. This will include our more common initiatives such as fluorescent lighting along with less known initiatives such as the reasoning behind 12-inch walls. The focus will be educating the guests so they understand what makes our hotel different.

The Internet presence is an integral aspect of the promotion. The hotel’s website URL can potentially be www.GreenStay.com. This website URL is currently for sale for $500. GreenStay’s website will also be accessed through Internet search engines such as Google and online booking providers such as Expedia. Advertisements will also be placed on theweathernetwork.com Regina weather forecast page. The website offers good value in terms of advertising costs and webpage hits and we forecast that many people who plan to pass through or stay in Regina will access this webpage.

During the first three years of operation a spokesperson will be sent to different trade shows throughout Saskatchewan, Alberta, and Manitoba with a display to talk to potential customers that will be visiting Regina and need a place to stay during their visit. Tradeshows to attend include the Western Canadian Agribition, Farm Progress show, Calgary Stampede, and Klondike Days.

Throughout the year money will be given to individual groups for advertising and charities. This will help promote the hotel’s name and role in the event as well as carry a significant profile in the community for the hotel.

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An aggressive approach will be taken to entice groups, companies, government agencies and sports teams to stay at the GreenStay Hotel. Phone calls to potential customers will be made. In some cases, meetings will be set up so they can meet a company face to face to explain what we have to offer. In some cases we will take them out for dinner or bring the potential clients to our hotel to give them a seminar or a tour of the facilities. Specifically, we will contact Crown Corporations such as SaskPower, SaskEnergy and others, with the message ‘to put their money where their mouth is.’ Both companies attempt to appear “green” with the advertisements and rebate programs they have in place to reduce the amount of energy that people use. Essentially, we want them to ‘practice what they preach’ by having their traveling employees stay at a hotel that uses less energy and is very environmentally friendly. All government sectors will be approached with a presentation as to why they should stay at the GreenStay versus any of the other hotels in the city.

Additional advertising funds will be allocated towards radio, city transit, and magazine ads. As well, since GreenStay is aiming to become one of Canada’s largest environmental hotels this will attract a lot of positive media attention that GreenStay management intends on taking advantage of. GreenStay management plans on using the media for free publicity as much as possible.

5.9 Customer Loyalty

The existence of the GreenStay store is in place to promote customer loyalty. Customers will receive loyalty points as a part of our Green Rewards Program that can be used towards having every 10th stay free, as well as items in our store. The GreenStay loyalty points will be awarded each time a customer chooses to stay with us. Our GreenStay website will allow customers to see their loyalty point totals along with a list of items they can get with these points. The GreenStay store will provide customers with the chance to take home many green household items that we use in our hotel’s operations. These household items include personal hygiene and household cleaning supplies. We have elected to keep the GreenStay store out of our revenue statements to keep our forecasts conservative. In essence, the GreenStay store is viewed by management as more of an amenity and loyalty median as opposed to a revenue generator.

5.10 Public Relations

Public relations will be part of promoting the hotel within Saskatchewan. Being involved in various environmental programs will help solidify the hotels approach to environmentally friendly accommodations. Promotions will also serve as a chance to build GreenStay’s reputation as a community partner. Throughout the year activities will be held at the hotel to promote environmentally friendly initiatives. This will include events to commemorate Earth Day. Sponsorships of various community events will also be used, such as tree planting initiatives. To become more involved in the community GreenStay would sponsor local teams such as minor hockey teams or other sports teams.

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5.11 Marketing Budget

To raise the awareness of this new hotel there will need to be large marketing effort which will be costly for the first couple years. Table 3.6 shows the marketing budget for year 1. After the first year the effectiveness of each marketing expense will be reviewed and money will be transferred to channels that are more effective.

Table 5.11Marketing Budget

Marketing Budget CostTelevision Commercials $25,000Internet $13,000Newspaper $7,500Radio $8,000Magazines $2,000 Billboards $8,000 Sponsorships $3,500Annual Events $4,000Brochures $5,000Promotional Giveaways $1,500Trade Shows $1,000Website $1,000City Transit $5,500Total $85,000

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6. Financial Plan

6.1 Financing structure

We will use a 60/40 split between debt and equity financing for the business. The 60% debt financing should be obtainable based on the total value of our assets. The hotel land and building could be used as collateral. We will also have a $50,000 line of credit in case a need for it arises. Table 6.1 shows the financing budget.

Table 6.1Financing breakdown

Finance Type AmountLong Term Debt $5,800,000 Common Shares $3,866,667 Total Financing Required $9,666,667

Note: The high cash flow generation of this business allows us to raise less long-term financing than capital required in year 1.

6.2 Capital Spending

GreenStay’s total capital budget is $10,225,000. The capital budget breakdown is shown in table 6.2 and can also be seen in appendix 6. The computers & operating system capital expenditure includes a one-time cost for a website and website reservation system, as well as an Energy Management System (EMS) (source). The EMS system will be able to control room heating and lighting requirements from a central location. This will allow rooms to be heated before guests arrive if rooms are pre booked. The energy management system will be integrated with the key card system to power down all electrical devices when nobody is in the room. The energy management system costs most mid-scale hotels $100,000 but provides an average payback period of four years (Office of Energy Efficiency, 2005).

Table 6.2 Capital Expenditures

Initial Capital Purchases Year 1Land $ 700,000 Building $8,000,000 Environmental Capital: $870,000 Solar $740,000 Wind $40,000 Geothermal $90,000Computers & Operating System $135,000 Telephone/ Communication $60,000 Furnishings, Fixtures & Equipment $460,000 Total $10,225,000

GreenStay intends on upgrading some capital beginning in year 5 (2013). These upgrades include $25,000 towards new computer/ operating systems and $60,000 for telephones &

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communications upgrades. To stay on the leading edge of environmental equipment and efficiency there will also be a $100,000 upgrade to improve the hotels sustainability and market position as an environmental leader. These upgrades will be needed again in 2017. The effect of these upgrades can be seen in the financial model in Appendix 6.

The furnishings in the hotel rooms will start needing replacement after seven years. A third of the rooms will be refurnished in each year at a cost of $172,215 per year. The refurnishing will go for 3 years and then after four years it will be started again. All future capital expenditures will be financed through cash on hand.

The solar system will be installed on the roof and will produce approximately 433,000 kW hrs/ year. This size of system is estimated to cost $740,000. The wind power system will produce approximately 76,000 kW hrs/ year and will have a total installed cost of $40,000. The geothermal heating equipment and installation costs total $90,000. This cost includes the trenching required for the installation of ground loops. See appendix 5 for the cost and energy breakdown on capital.

6.3 Dividend Policy

GreenStay is proposing to pay all of its excess cash flows as dividends. The first two years of GreenStay operations will be primarily used towards building a healthy level of cash and retained earnings for day-to-day operations and future hotel upgrades. The remainder of future generated cash flows will be as dividend payouts. If the hotel is as successful as forecasted the opportunity of expanding into new locations can be explored. In this case shareholders will be consulted and asked to vote on the option to wave their dividends to finance a new hotel. This would help increase the dividends they receive once the new hotel would be built.

6.4 Ratio Analysis

There are some specific ratios that need to be addressed for the hotel industry. These ratios are shown in Table 6.4. The RevPAR is the revenue per available room. In year 1 this ratio shows that the revenue we are making is equivalent to having every room in the hotel rented out at $75 per night. The average daily rate is the average room rate that is being charged. The RevPAR over the Average Daily Rate would give you the occupancy of the hotel for the year. These ratios can be used to track hotel performance and ensure occupancy goals are being met.

Table 6.4 Economic RatiosRatio Year 1 Year 5Net Profit Margin 19.5% 35.2%RevPAR 75 123Average Daily Rate 150 170ROE 12.4% 33.0%

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6.5 Financial Analysis

The Net Present Value of this business is $3,453,358. This large positive NPV shows that GreenStay is not only profitable but can produce more than the required return of 20%. The Internal Rate of Return or expected return is 3.6%. The high rate of return comes from the fact 4that the IRR is leveraged due to debt financing. The total unleveraged rate of return for GreenStay is 19.5%. Using the higher debt financing improves the rate of return but does add some additional risk due to the higher mortgage payments. The high quantity of projected cash flows for this business will be sufficient to cover the loan payments. Table 6.5 shows a summary of the projected financial results for the first three and last three predicted years.

Table 6.5 Key Financial Statistics

Year 2009 2010 2011 2016 2017 2018

Occupancy 50% 60% 70% 72% 72% 72%Revenue $2,796,35

0 $3,458,975 $4,160,632 $5,010,248 $5,170,576 $5,336,034Expenses $2,110,64

2 $2,454,309 $2,381,645 $2,541,503 $2,652,620 $2,717,570N.I. Before Tax $685,709 $1,004,666 $1,778,987 $2,468,746 $2,517,956 $2,618,464Income Tax $140,784 $231,853 $442,616 $573,686 $585,989 $611,116Net Income $544,924 $772,813 $1,336,371 $1,895,059 $1,931,967 $2,007,348

Net Present Value (NPV) $3,453,358Expected Internal Rate of Return (IRR) 34.6%

Cash Flow Payback Period 3.38 years

6.6 Risk Analysis

A large portion of GreenStay’s costs are fixed. As a result, the most critical factor to GreenStay’s success is generating occupancy. To determine our overall risk, a break even analysis was performed to gauge GreenStay’s likeliness for success. This analysis was based on two scenarios: the first scenario was a net income breakeven and the second scenario was an economic break even. The economic break even equals a zero NPV. Figure 6.6 on the following page displays this.

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Figure 6.6 Risk Analysis

The base case shows a conservative estimate of expected occupancy since the average occupancy in Regina is actually 72% (MacDonald, 2008). Our base case estimations have GreenStay reaching and maintaining industry average occupancy levels by year four. To obtain a net income break even GreenStay requires an average of 35 rooms to be rented per night (35% occupancy) in year 1. The large gap between GreenStay’s base case occupancy rates and net income break-even occupancy rates in Figure 6.6 offer peace of mind to investors. As Figure 6.6 reveals, our conservative occupancy rates provide us a comfortable 40-room cushion above our net income breakeven levels.

Over the first four years of GreenStay’s operations, economic and net income break evens are equal. In other words, to maintain the 20% required return on your investment GreenStay can operate at the net income break-even occupancy rates until year 4. After year 4, occupancy levels must then increase by 10% per annum to ensure GreenStay fulfills your required rate of return. In this scenario the average occupancy rate of 72% will not be met until year nine. This shows that if GreenStay occupancy grows slower than anticipated there is still ample opportunity to make adjustments to our strategy in order to maintain your 20% return on equity.

Appendix 2 also provides a SWOT analysis outlining weaknesses and threats to GreenStay’s performance.

6.7 Contingency Plan

The inability for GreenStay to meet the required occupancy levels listed above in Section 6.6 provides virtually the only scenario to GreenStay’s failure. If this failure occurs GreenStay will be able to do the following:

Liquidate – sell off assets and recover investment Change brand- manage hotel under a popular hotel brand

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Change focus- given the aging population of Canadians, some relatively minor renovations could quickly shift this building into a retirement home for the elderly

7.0 GreenStay Summary

The hospitality industry has been plagued by consumption and waste for far too long. GreenStay has finally taken the initiative to address this important and emerging opportunity by making the environment an integral focus of the company. Backed by healthy margins, GreenStay signifies a cunning transformation in the industry. Together, GreenStay will emanate a positive public image while satisfying the hungry appetites of its bottom line.

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9 AppendicesAppendix-1 Competitors Pricing Strategy

This appendix shows the prices of all competitors in Regina. It also shows the number of rooms and the total potential revenue per night.

Table A.1 Competitor’s prices from October 2008

Hotel NameAverage

PriceNumber of

RoomsRoom Revenue/

NightDays Inn 121 97 10,767Holiday Inn Express and Suites 153 78 8,814West Harvest Inn 95 105 10,500Sandman Hotel and Suites 172 132 14,916Holiday Inn Hotel and Suites 134 102 12,546Travelodge 143 200 24,000Comfort Inn 127 100 10,500Quality Hotel 141 125 15,750Super 8 112 59 4,425Country Inn and Suites 119 77 7,469Howard Johnson 101 181 16,833Budget Inn Express 95 197 16,154Best Western 131 157 16,485Wingate 154 118 14,750Victoria Park Motor Inn 94 66 5,610Travel Inn 94 67 5,695Sherwood House Inn 94 100 8,500Holiday Inn Express and Suites 115 102 11,730Radisson Plaza 219 217 39277Delta 199 274 47676Ramada 145 233 29591Regina Inn 171 235 35015

133 3022 $430,100

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Appedix-2 SWOT Analysis

This appendix shows the SWOT analysis performed for the Regina hotel market.

Table A.2a Strengths

FACTORS STRENGTHS

Clients

Very convenient location for business or leisure trips, travelers in overnight transit at the airport, and people who are interested in sporting and social eventsCan also leverage our environmental position in the market to attract business and government attempting to go green

Economic Our market research concluded that our customers are willing to pay a premium for our hotel

Economic Long-term savings with the use of energy-efficient technologiesEnvironmental First environmentally-friendly hotel in Saskatchewan

Partnerships Strong relationship with surrounding businesses that operate local events, as well as environmental activist groups

Political Grants for being environmentally friendlyResources Knowledgeable employees who are aware of the hotel and what the city has to offerSocial Employees are our assets, we treat them with respect and reward them for a job well doneSocial Organize a variety of social events and activities for customers & staff

Social/ Cultural

There are many nearby attractions/ conveniences, such as: Regina International Airport, Ipsco Place, Taylor Field, Trans-Canada Highway, car rentals, shopping, RCMP Heritage Centre, etc.

Table A.2b Weaknesses

FACTORS WEAKNESSES

Clients Customers who are indifferent to the environment and believe they are paying a premium for a hotel with new environmental technology

Competition We will initially have an unestablished brand. It has to be built through hard work and providing excellent customer services for our clients

Economic Funding constraints, faced with higher start-up costs associated with new environmental technology

Regulatory Certain regulations must be met in order to achieve a particular environmental designation, such as ISO 14001 for environmental management

Resources Internal knowledge and expertise to serve customersResources Employees with specialized skills, especially pertaining to the use of environment technologyResources Business management in early stages will be inexperienced, as we will a brand new companySocial/ Cultural Limitation of languages offered

Suppliers Difficulty in finding suppliers who also share our environmental philosophy

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Table A.2c Opportunities

FACTORS OPPORTUNITIES

Competition Be the first dominant hotel in the west end of Regina

Competition Be the first environmentally friendly hotel in Regina

Customers Strengthen and leverage relationships with customers, offering repeat customers with loyalty cards to strengthen their relationship to our establishment

Customers Strive to be the best place to stay by providing enhanced security, broadening our services and offering a relaxing atmosphere

Environment Building a good environmentally-friendly business image in the customer’s mind as well as with the general public

Management Enhance customer experience by re-designing business processes from the customer perspective (processes, job rotations, employee-incentives based on customer satisfaction, etc.)

Partnerships Watch for new investments and sponsor future social events at the targeted locations, Ipsco Place and Mosaic Stadium

Partnerships Create and maintain strong relationship with suppliers and partners

Resources Using the large talent pool of Regina and the surrounding areas to look for new skilled employees

Social/ Cultural

Enhance diversity in the workplace by offering a varied workforce with a multitude of languages, different perspectives on different cultures

Table A.2d Threats

FACTORS THREATS

Competition Other competitors moving into the area to capitalize on what we have accomplished

Competition As environmental technology becomes cheaper and more known, other hotels will adopt our methods

Economic Labour shortageEconomic Rising building costs and inflation from the time of budget to the time of build

Environmental The environmental technology used, such as solar heating, electricity generation, etc., may be unreliable due to the relatively new product.

Environmental/ Economic Potential crisis including severe economic down turn, vandalism, fire, tornado, etc.

Political Potential changes in government regulations, causing quality standards to be changed

Resources Attracting employees with specialized expertise and bilingual capabilities

Social Potential that environmental concern is simply a fadSocial Potential that the growth of Regina is short-term and may reduce to previous numbers

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Appendix-3 Survey Results

This appendix shows results of a survey conducted by a group of students in Comm 357 form the Edwards School of Business.

This study is being conducted by a group of students from the Edwards school of business as a requirement for Marketing Research class. It is a survey on the topic of Environmental hotels and is being conducted for Blaine Roth and Cody Dumonceaux. The information you provide will be anonymous and/or confidential. By completing the survey you are consenting to participate in this student project. You have the right to withdraw at any time and not to respond to questions as you choose. If you have any questions or concerns about this research, please contact the Edwards School of Business at 966-4794.

For the purpose of this survey, an Environmental Hotel/Motel is defined as one which produces 100% of its own energy through sources such as wind and solar power. It also produces its own heat through geothermal energy. This aims to reduce energy and water consumption by using efficient utilities and will overall produce less carbon emissions into the environment than current hotels.

1) In a typical year, how often do you travel where you need to stay in a hotel/motel? (Circle One)

* If your answer is never, please skip to question #12

Never2.5%

1-6 timesper year69.2%

7-10 times per year11.7%

11-14 timesper year

4.2%

15 or more times

per year12.5%

2) What percentage of the travel is for business and what percentage is for leisure? (Should total 100%)

Business_____% - 34.72% Leisure_____% - 65.28%

3) On a scale of 1 to 10, please rate how much you would prefer to stay at an “Environmental Hotel” that strives to reduce its environmental impact. (Circle the number that best describes your answer)

(Low Preference) 1 - 2 - 3 - 4 - 5 - 6 - 7 - 8 - 9 - 10 (High Preference) Mean – 7.59

4) If price and services were comparable, would you be more inclined to visit a hotel/motel which is an “Environmental Hotel”? (Please Circle One)

No Probably Not Maybe Probably would definitely would0% 2.5% 19.5% 36.4% 41.5%

5) If there were a premium charged for staying at an “Environmental Hotel”, how much would you be willing to pay extra per night? (Circle One)

$0/night $1-$10/night $11-$20/night $21-$30/night $31 or more/night 16.2% 52.1% 22.2% 8.5% 0.9%

6) Which of the hotels would you rather stay at? (Circle One)

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Environmental Hotel/Motel without Restaurant 33.6%

Regular Hotel/Motelwith Restaurant 66.4%

7) Please rate how large an improvement you feel producing 100% of the energy a hotel/motel uses is over existing green programs offered at current hotels. (Circle a number that best describes your answer)

(Little Improvement) 1 - 2 - 3 - 4 - 5 - 6 - 7 - 8 - 9 – 10 (Large Improvement) Mean – 7.24

8) When traveling for business, what level of service hotel/motel do you commonly stay in? (Circle One)

Economy3.5%

Mid-Scale -No Restaurant

9.6%

Mid-ScaleWith Restaurant

53.9%

Luxury3.5%

I don’t travel for business

29.5%

9) When traveling for leisure, what level of service hotel/motel do you commonly stay in? (Circle One)

Economy8.6%

Mid-Scale -No Restaurant

9.5%

Mid-Scale -With Restaurant

69.0%

Luxury12.1%

I don’t travel for leisure0.9%

10) Do rewards programs (e.g. Airmiles) influence your decision in choosing a hotel?

(Low Influence) 1 - 2 - 3 - 4 - 5 - 6 - 7 - 8 - 9 - 10 (High Influence) Mean – 4.59

11) What type of rewards Program would you prefer from a hotel? (please Circle One)

Internal Rewards Program(e.g. stay 10th night free)

20.7%

External Rewards Program(e.g. Airmiles or Aeroplan)

62.9%

None

16.4%

12) Please choose the name you feel best represents an environmental hotel. (Please Choose Only One)

28.2% .Solstice: Environmental Hotel and Suites. 17.9% .Paradise Greens9.4% .Aurora Greens8.5% .Canyon Greens35.9% .Green Stay

13) Circle the age category that you fit in.

Under 18 18-25 26-35 36-45 46-55 56-64 65+ 0.8% 29.7% 8.5% 15.3% 23.7% 13.6% 8.5%14) What is the highest level of formal education you have received? (Please Circle One)

Less than a High High School Some Post- Completed Post-

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School Diploma3.4%

Diploma15.1%

Secondary36.1%

Secondary45.4%

15) Are you male or female?

Male Female54.6% 45.4%

16) What is your approximate personal yearly Income?

Under $25K $26K-$50K $51K-$75K $75K-$100K $100K+ 22.4% 20.6% 21.5% 16.8% 18.7%

Thank-you for your participation

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Appendix-4 Room Furnishing Cost Breakdown This appendix shows the costs of furnishing each of the different suite types. These room furnishing costs make up the majority of the costs of our total fixture furnishing and equipment costs in our capital budget.

Table A.4a Queen room furnishing costs

Part Quant.Price/unit ($us)

Price/unit ($can)

total cost ($) Supplier

Queen Mattress 2 325.00 336.70 673.4 National Hospitality SupplyQueen Frame 2 57.95 60.04 120.1 National Hospitality SupplyQueen Bedspread 4 39.95 41.39 165.6 National Hospitality SupplyQueen Sheets 4 7.25 7.51 30.0 National Hospitality SupplyQueen Mattress Pad 4 7.95 8.24 32.9 National Hospitality SupplyQueen Headboard 2 88.95 92.15 184.3 National Hospitality SupplyPillows 4 8.00 8.29 33.2 Pineapple HospitalityNightstand 2 153.00 158.51 317.0 National Hospitality SupplyLamp 2 39.95 41.39 82.8 National Hospitality SupplyUpholstered Chair 1 79.95 82.83 82.8 National Hospitality SupplyDesk 1 198.00 205.13 205.1 National Hospitality SupplyPhone 1 15.95 16.52 16.5 National Hospitality SupplyAlarm Clock 1 6.50 6.73 6.7 National Hospitality SupplyFramed Artwork 2 13.95 14.45 28.9 National Hospitality SupplyTV Stand 1 333.00 344.99 345.0 National Hospitality SupplyTV (26" LCD) 1 449.99 466.19 466.2 Best BuyCoat Rack 1 32.95 34.14 34.1 National Hospitality SupplyCoat Hangers 4 0.54 0.56 2.2 National Hospitality SupplyLuggage Rack 2 14.95 15.49 31.0 National Hospitality SupplyCoffee Maker 1 16.95 17.56 17.6 National Hospitality SupplyCoffee cups 4 1.00 1.04 4.1 National Hospitality SupplyIron & Board 1 29.90 30.98 31.0 National Hospitality SupplyWaste Basket 2 2.50 2.59 5.2 National Hospitality SupplyRecycling Bin 1 2.50 2.59 2.6 National Hospitality SupplyIce Bucket 1 1.33 1.38 1.4 National Hospitality SupplyWater Glass 4 1.92 1.99 8.0 National Hospitality SupplyCurtains 2 36.95 38.28 76.6 National Hospitality SupplyDo Not Disturb Sign 1 0.25 0.26 0.3 National Hospitality SupplyTowel Set 2 7.18 7.44 14.9 National Hospitality SupplyShower Curtain 1 11.95 12.38 12.4 National Hospitality SupplyToilet paper holder 1 3.50 3.63 3.6 National Hospitality SupplyFaucet 1 36.95 38.28 38.3 National Hospitality Supply

Total room cost $3,073.7

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Table A.4b Regular King furnishing costs

Part Quant.Price/unit ($us)

Price/unit ($can)

Total cost ($) Supplier

King Mattress 1 459 475.52 475.5 National Hospitality SupplyKing Frame 1 76.95 79.72 79.7 National Hospitality SupplyKing Bedspread 2 45.95 47.60 95.2 National Hospitality SupplyKing Sheets 2 8.75 9.07 18.1 National Hospitality SupplyKing Mattress Pad 2 9.25 9.58 19.2 National Hospitality SupplyKing Headboard 1 112 116.03 116.0 National Hospitality SupplyPillows 2 9 9.32 18.6 Pineapple HospitalityNightstand 2 153 158.51 317.0 National Hospitality SupplyLamp 2 39.95 41.39 82.8 National Hospitality SupplyUpholstered Chair 3 79.95 82.83 248.5 National Hospitality SupplyCoffee Table 1 116 120.18 120.2 National Hospitality SupplyDesk 1 198 205.13 205.1 National Hospitality SupplyPhone 1 15.95 16.52 16.5 National Hospitality SupplyAlarm Clock 1 6.5 6.73 6.7 National Hospitality SupplyFramed Artwork 2 13.95 14.45 28.9 National Hospitality SupplyTV Stand 1 333 344.99 345.0 National Hospitality SupplyTV (26" LCD) 1 449.99 466.19 466.2 Best BuyCoat Rack 1 32.95 34.14 34.1 National Hospitality SupplyCoat Hangers 4 0.54 0.56 2.2 National Hospitality SupplyLuggage Rack 1 14.95 15.49 15.5 National Hospitality SupplyCoffee Maker 1 16.95 17.56 17.6 National Hospitality SupplyCoffee Cups 2 1 1.04 2.1 National Hospitality SupplyWaste Basket 2 2.5 2.59 5.2 National Hospitality SupplyRecycling Bin 1 2.5 2.59 2.6 National Hospitality SupplyIce Bucket 1 1.33 1.38 1.4 National Hospitality SupplyWater Glasses 2 1.92 1.99 4.0 National Hospitality SupplyCurtains 2 36.95 38.28 76.6 National Hospitality SupplyDo Not Disturb Sign 1 0.25 0.26 0.3 National Hospitality SupplyTowel Set 2 4.69 4.86 9.7 National Hospitality SupplyShower Curtain 1 11.95 12.38 12.4 National Hospitality SupplyToilet Paper Holder 1 3.5 3.63 3.6 National Hospitality SupplyFaucet 1 36.95 38.28 38.3 National Hospitality Supply

Total cost $ 2,884.8

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Table A.4c King/Jacuzzi Suite furnishing costs

Part Quant.Price/unit ($us)

Price/unit ($can)

total cost ($) supplier

King Mattress 1 459 475.52 475.52 National Hospitality SupplyKing Frame 1 76.95 79.72 79.72 National Hospitality SupplyKing Bedspread 2 45.95 47.60 95.21 National Hospitality SupplyKing Sheets 2 8.75 9.07 18.13 National Hospitality SupplyKing Mattress Pad 2 9.25 9.58 19.17 National Hospitality SupplyKing Headboard 1 112 116.03 116.03 National Hospitality SupplyPillows 2 9 9.32 18.65 Pineapple HospitalityNightstand 2 153 158.51 317.02 National Hospitality SupplyLamp 2 39.95 41.39 82.78 National Hospitality SupplyCouch 1 400.00 400.00 The BrickRolling Arm Chair 1 40.00 40.00 The BrickCoffee Table 1 116 120.18 120.18 National Hospitality SupplyDesk 1 198 205.13 205.13 National Hospitality SupplyPhone 1 15.95 16.52 16.52 National Hospitality SupplyAlarm Clock 1 6.5 6.73 6.73 National Hospitality SupplyFramed Artwork 2 13.95 14.45 28.90 National Hospitality SupplyTV Stand 1 333 344.99 344.99 National Hospitality SupplyTV (26" LCD) 1 449.99 466.19 466.19 Best BuyCoat Rack 1 32.95 34.14 34.14 National Hospitality SupplyCoat Hangers 4 0.54 0.56 2.24 National Hospitality SupplyLuggage Rack 1 14.95 15.49 15.49 National Hospitality SupplyCoffee Maker 1 16.95 17.56 17.56 National Hospitality SupplyCoffee Cups 2 1 1.04 2.07 National Hospitality SupplyWaste Basket 2 2.5 2.59 5.18 National Hospitality SupplyRecycling Bin 1 2.5 2.59 2.59 National Hospitality SupplyIce Bucket 1 1.33 1.38 1.38 National Hospitality SupplyWater Glasses 2 1.92 1.99 3.98 National Hospitality SupplyCurtains 2 36.95 38.28 76.56 National Hospitality SupplyDo Not Disturb Sign 1 0.25 0.26 0.26 National Hospitality SupplyTowel Set 2 4.69 4.86 9.72 National Hospitality SupplyShower Curtain 1 11.95 12.38 12.38 National Hospitality SupplyToilet Paper Holder 1 3.5 3.63 3.63 National Hospitality SupplyFaucet 1 36.95 38.28 38.28 National Hospitality Supply

Total $3,076.31

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Appendix-5 Power Estimations

Assumptions (Office of Energy Efficiency, 2005)

Power estimation 2.7 GJ/m2

Electricity/heat split 65/35Use 75% less power1GJ=277.8 kW.h

Total Power of regular hotel Total power of our hotel 783749.7 kW.h

Electrical Power

Solar Power =

A 100 kW system is needed to produce this power requirement. Cost of this system would be approximately $740,000 (Heckman, 2008)

Wind Power

A 20 kW system is needed to produce this power requirement. Cost of this system would be approximately $740,000 (Heckman, 2008)

Since there is more insulation lower heating power will be required (25% less than average through insulation and other initiatives) Heating Power =

This system will have an installed cost of approximately $90,000 (Department of Design and construction, 2002).

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Appedix-6 Financials

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Appendix-7 References

Audubon International “Audubon Green Leaf Eco-Rating Program” Terra Choice Environmental Marketing. Viewed Nov. 2008 < http://www.terrachoice.ca/hotelwebsite/indexcanada.htm>

Canada Green Building Council. “ New construction” Canada Green Building Council Viewed Nov. 2008 < http://www.cagbc.org/cagbc/index.htm>

Department of Design and Construction. “Geothermal heat pump manual.”2002. New York City. Viewed Oct. 2008 http://www.nyc.gov/html/ddc/downloads/pdf/ geotherm.pdf

Hotel Association of Canada “Green Key Eco-Rating Program” 2007. Hotel Association of Canada. Viewed Nov. 2008< http://www.hotelassociation.ca/site/programs/green_key.htm>

MacDonald, B. “Year-to-Date RevPAR Performances” Canadian Lodging Outlook. (July 2007). Smith Travel Research. 2008

National Energy Foundation. “Simple Carbon Calculator” 2008. National Energy Foundation. Veiwed Nov. 2008. <http://nef.org.uk/greencompany/co2calculator.htm>

Natural Resources Canada. “Commercial Earth Energy Systems: A Buyer’s Guide” 2002. Natural Resources Canada. Viewed Oct. 2008 <http://www.canren.gc.ca/app/filerepository/EARTH-BuyersGuide-

CommercialEarthEnergySystems.pdf >

Office of Energy Efficiency. “Hospitality Sector-Saving Energy Dollars in Hotels, Motels, and Restaurants.” 2005. Natural Resources Canada. Oct. 2008<http://oee.nrcan.gc.ca/Publications/commercial/pdf/m144-10-2003e.pdf >

Painter, M. Commerce 447. Saskatoon: University of Saskatchewan, 2008

Saskatchewan Resource Council “Factor 9 Home: A New Prairie Approach” SRC. Viewed Sept. 2008 <http://www.src.sk.ca/html/research_technology/manufacturing/build_perform/Factor_9/>

SaskPower. “Small Power Producers Policy” 2007. SaskPower. Viewed Nov. 2008.<http://www.saskpower.com/poweringyourfuture/opportunities/smallpp.shtml>

Solar Electric Supply. “Residential, Commercial & Industrial Solar Systems” 2008. Solar Electric Supply. Veiwed Sept. 2008 <http://www.solarelectricsupply.com/systems/commercial/index.html>

WSE Technologies. “Wind Turbine Generator” 2008. WSE Technologies. Viewed Oct. 2008.<http://www.wsetech.com/FD20KW.php>

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