Start-up | |
Requirements | |
Start-up Expenses | |
Legal | $5,000 |
Stationery etc. | $400 |
Brochures | $6,000 |
Rental Shop Setup | $50,000 |
Property Downpayment | $50,000 |
Lodge Setup | $20,000 |
Store Setup | $50,000 |
Insurance | $4,000 |
Total Start-up Expenses | $185,400 |
Start-up Assets | |
Cash Required | $14,600 |
Other Current Assets | $0 |
Long-term Assets | $350,000 |
Total Assets | $364,600 |
Total Requirements | $550,000 |
The charm and solitude of Bear Valley’s secluded mountain setting is found just 36 miles from the Richmond International Airport.
Silver Bear Lodge will offer customers 12 two-bedroom units, fully-equipped kitchens, laundry facilities and stone fireplaces. Silver Bear Lodge will offer a common-area outdoor hot tub as well as the following services on-site:
Resort hotel development and operation in the Bear Valley Resort area has been very profitable and successful due to the economic upturn experienced in the early and mid 90’s. Time-share / resort hotel development and investments into ski resorts nationwide are currently going strong. In the past two years, sales of time-shares in the Bear Valley Resort area have increased by over 35 percent. There are forty condominiums, lodges, inns and hotels within two miles of the resort. Each year, room occupancy is close to 100% during the peak skiing season. New construction is planned in the spring for two condo complexes and a hotel.
Our customers can be broadly divided into two groups:
Market Analysis | |||||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |||
Potential Customers | Growth | CAGR | |||||
Skiers | 15% | 90,000 | 103,500 | 119,025 | 136,879 | 157,411 | 15.00% |
Summer Visitors | 15% | 60,000 | 69,000 | 79,350 | 91,253 | 104,941 | 15.00% |
Total | 15.00% | 150,000 | 172,500 | 198,375 | 228,132 | 262,352 | 15.00% |
Silver Bear Lodge will aggressively market to both winter and summer visitors of the Bear Valley Resort area. The Bear Valley Resort has activities occuring year round. During the winter there is skiing but in the summer months, the resort has hot-air balloon trips, white water adventures, day hikes into Bear Valley, and other recreational activities that take advantage of valley’s spectacular beauty.
There are only thirteen lodges and inns in the Bear Valley Resort. These facilities represent only 580 room units of the total of 4,000 room units in the resort area. The majority of room units in the area are condos.
Our customers are looking for a different lodging experience that cannot be found in any of the area’s condo complexes or hotels. We will offer our customers a comfortable, congenial environment that will assure return visits to the Silver Bear Lodge.
The lodge will cost a little more but we will offer our customers all the services they need to make their stay memorable. We will offer a food shop that will be able to take special orders daily. There will be a ski rental shop where customers can outfit themselves and purchase ski passes. Each evening, guests can gather in the lodge’s main room where there is a large fireplace, drinks and light music.
The competitive edge of Silver Bear Lodge is the service, first and foremost. Marty Snyderman and Luke Roth, co-owners of the Silver Bear Lodge, have over twenty years experience in managing ski lodging facilities.
Marty is the manager-owner of the Crest Lake Inn. He has owned the inn for ten years.
Luke recently was the manager of the Village Resort Hotel. He held that position for the last five years. Before this position, Luke was the manager of The Ridge, a 60 unit condo complex in Silver Lake Village.
Another significant advantage for the Silver Bear Lodge is its location. Being located in the recently opened Crest Canyon area, Silver Bear Lodge is uniquely positioned to be centrally located to both Crest Lake Village (.5 miles) and the Bear Valley Resort ski area (.5 miles).
The Silver Bear Lodge’s sales strategy is to harness the existing Bear Valley Resort booking system that has been critical to the success of all of the area’s lodges and inns. Room rates for the lodge will range from $150 – $250 per night in peak season. In the off season prices will range from $100 to $175 per night.
The following is the sales forecast for three years.
Sales Forecast | |||
Year 1 | Year 2 | Year 3 | |
Sales | |||
Rooms | $430,000 | $560,000 | $600,000 |
Food | $121,000 | $140,000 | $180,000 |
Ski Rentals | $132,000 | $145,000 | $160,000 |
Clothing | $58,000 | $70,000 | $82,000 |
Total Sales | $741,000 | $915,000 | $1,022,000 |
Direct Cost of Sales | Year 1 | Year 2 | Year 3 |
Rooms | $0 | $0 | $0 |
Food | $59,500 | $71,000 | $90,000 |
Ski Rentals | $0 | $0 | $0 |
Clothing | $23,700 | $30,000 | $38,000 |
Subtotal Direct Cost of Sales | $83,200 | $101,000 | $128,000 |
The Bear Valley Resort area has its own website and advertising/promotion program that promotes the area’s lodging. Currently, 70% of the area’s visitors use the website to identify lodging and service options.
The Silver Bear Lodge is positioned as a new upscale facility that is focused on the high-income visitors to Bear Valley Resort. The area’s lodges and inns receive approximately 80% of their guests from the Bear Valley Resort booking system. Since the total number of room units are few with the area’s lodges and inns, these lodging units fill up quickly.
In addition, the Silver Bear Lodge will be highlighted in a promotional piece for Bear Valley Resort in the December issue of Ski Magazine.
Luke Roth will be the manager of the daily operations of the Silver Bear Lodge.
The personnel needed for the Silver Bear Lodge are the following:
Personnel Plan | |||
Year 1 | Year 2 | Year 3 | |
Manager | $36,000 | $39,000 | $42,000 |
Assistant Manager | $42,000 | $45,000 | $48,000 |
Lodge Staff | $110,000 | $120,000 | $126,000 |
Food Store Staff | $39,000 | $43,000 | $46,000 |
Ski Rental/Clothing Store Staff | $35,000 | $39,000 | $42,000 |
Maintenance Staff | $48,000 | $52,000 | $55,000 |
Cleaning Staff | $72,000 | $76,000 | $79,000 |
Total People | 9 | 22 | 22 |
Total Payroll | $382,000 | $414,000 | $438,000 |
The following is the financial plan for the Silver Bear Lodge.
The monthly break-even point is approximately $52,900.
Break-even Analysis | |
Monthly Revenue Break-even | $52,905 |
Assumptions: | |
Average Percent Variable Cost | 11% |
Estimated Monthly Fixed Cost | $46,965 |
The following is the projected profit and loss for three years.
Pro Forma Profit and Loss | |||
Year 1 | Year 2 | Year 3 | |
Sales | $741,000 | $915,000 | $1,022,000 |
Direct Cost of Sales | $83,200 | $101,000 | $128,000 |
Other Production Expenses | $0 | $0 | $0 |
Total Cost of Sales | $83,200 | $101,000 | $128,000 |
Gross Margin | $657,800 | $814,000 | $894,000 |
Gross Margin % | 88.77% | 88.96% | 87.48% |
Expenses | |||
Payroll | $382,000 | $414,000 | $438,000 |
Sales and Marketing and Other Expenses | $60,000 | $80,000 | $100,000 |
Depreciation | $14,280 | $14,280 | $14,280 |
Leased Equipment | $0 | $0 | $0 |
Utilities | $26,000 | $26,000 | $26,000 |
Insurance | $24,000 | $24,000 | $24,000 |
Lease | $0 | $0 | $0 |
Payroll Taxes | $57,300 | $62,100 | $65,700 |
Other | $0 | $0 | $0 |
Total Operating Expenses | $563,580 | $620,380 | $667,980 |
Profit Before Interest and Taxes | $94,220 | $193,620 | $226,020 |
EBITDA | $108,500 | $207,900 | $240,300 |
Interest Expense | $33,375 | $30,500 | $27,500 |
Taxes Incurred | $18,254 | $48,936 | $59,556 |
Net Profit | $42,592 | $114,184 | $138,964 |
Net Profit/Sales | 5.75% | 12.48% | 13.60% |
The following is the projected balance sheet for three years.
Pro Forma Balance Sheet | |||
Year 1 | Year 2 | Year 3 | |
Assets | |||
Current Assets | |||
Cash | $31,437 | $118,555 | $165,584 |
Other Current Assets | $14,000 | $32,000 | $53,000 |
Total Current Assets | $45,437 | $150,555 | $218,584 |
Long-term Assets | |||
Long-term Assets | $350,000 | $370,000 | $430,000 |
Accumulated Depreciation | $14,280 | $28,560 | $42,840 |
Total Long-term Assets | $335,720 | $341,440 | $387,160 |
Total Assets | $381,157 | $491,995 | $605,744 |
Liabilities and Capital | Year 1 | Year 2 | Year 3 |
Current Liabilities | |||
Accounts Payable | $3,965 | $30,619 | $35,405 |
Current Borrowing | $0 | $0 | $0 |
Other Current Liabilities | $0 | $0 | $0 |
Subtotal Current Liabilities | $3,965 | $30,619 | $35,405 |
Long-term Liabilities | $320,000 | $290,000 | $260,000 |
Total Liabilities | $323,965 | $320,619 | $295,405 |
Paid-in Capital | $200,000 | $200,000 | $200,000 |
Retained Earnings | ($185,400) | ($142,809) | ($28,625) |
Earnings | $42,592 | $114,184 | $138,964 |
Total Capital | $57,192 | $171,376 | $310,340 |
Total Liabilities and Capital | $381,157 | $491,995 | $605,744 |
Net Worth | $57,192 | $171,376 | $310,340 |
The following is the projected cash flow for three years.
Pro Forma Cash Flow | |||
Year 1 | Year 2 | Year 3 | |
Cash Received | |||
Cash from Operations | |||
Cash Sales | $741,000 | $915,000 | $1,022,000 |
Subtotal Cash from Operations | $741,000 | $915,000 | $1,022,000 |
Additional Cash Received | |||
Sales Tax, VAT, HST/GST Received | $0 | $0 | $0 |
New Current Borrowing | $0 | $0 | $0 |
New Other Liabilities (interest-free) | $0 | $0 | $0 |
New Long-term Liabilities | $0 | $0 | $0 |
Sales of Other Current Assets | $0 | $0 | $0 |
Sales of Long-term Assets | $0 | $0 | $0 |
New Investment Received | $0 | $0 | $0 |
Subtotal Cash Received | $741,000 | $915,000 | $1,022,000 |
Expenditures | Year 1 | Year 2 | Year 3 |
Expenditures from Operations | |||
Cash Spending | $382,000 | $414,000 | $438,000 |
Bill Payments | $298,163 | $345,882 | $425,971 |
Subtotal Spent on Operations | $680,163 | $759,882 | $863,971 |
Additional Cash Spent | |||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 |
Principal Repayment of Current Borrowing | $0 | $0 | $0 |
Other Liabilities Principal Repayment | $0 | $0 | $0 |
Long-term Liabilities Principal Repayment | $30,000 | $30,000 | $30,000 |
Purchase Other Current Assets | $14,000 | $18,000 | $21,000 |
Purchase Long-term Assets | $0 | $20,000 | $60,000 |
Dividends | $0 | $0 | $0 |
Subtotal Cash Spent | $724,163 | $827,882 | $974,971 |
Net Cash Flow | $16,837 | $87,118 | $47,029 |
Cash Balance | $31,437 | $118,555 | $165,584 |
Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) code 7011, Hotels and Motels, are shown for comparison.
Ratio Analysis | ||||
Year 1 | Year 2 | Year 3 | Industry Profile | |
Sales Growth | 0.00% | 23.48% | 11.69% | 5.90% |
Percent of Total Assets | ||||
Other Current Assets | 3.67% | 6.50% | 8.75% | 26.00% |
Total Current Assets | 11.92% | 30.60% | 36.09% | 32.00% |
Long-term Assets | 88.08% | 69.40% | 63.91% | 68.00% |
Total Assets | 100.00% | 100.00% | 100.00% | 100.00% |
Current Liabilities | 1.04% | 6.22% | 5.84% | 19.40% |
Long-term Liabilities | 83.95% | 58.94% | 42.92% | 34.60% |
Total Liabilities | 85.00% | 65.17% | 48.77% | 54.00% |
Net Worth | 15.00% | 34.83% | 51.23% | 46.00% |
Percent of Sales | ||||
Sales | 100.00% | 100.00% | 100.00% | 100.00% |
Gross Margin | 88.77% | 88.96% | 87.48% | 0.00% |
Selling, General & Administrative Expenses | 83.02% | 76.48% | 73.88% | 75.10% |
Advertising Expenses | 8.10% | 8.74% | 9.78% | 1.90% |
Profit Before Interest and Taxes | 12.72% | 21.16% | 22.12% | 2.50% |
Main Ratios | ||||
Current | 11.46 | 4.92 | 6.17 | 1.45 |
Quick | 11.46 | 4.92 | 6.17 | 1.05 |
Total Debt to Total Assets | 85.00% | 65.17% | 48.77% | 54.00% |
Pre-tax Return on Net Worth | 106.39% | 95.18% | 63.97% | 1.70% |
Pre-tax Return on Assets | 15.96% | 33.15% | 32.77% | 3.70% |
Additional Ratios | Year 1 | Year 2 | Year 3 | |
Net Profit Margin | 5.75% | 12.48% | 13.60% | n.a |
Return on Equity | 74.47% | 66.63% | 44.78% | n.a |
Activity Ratios | ||||
Accounts Payable Turnover | 76.19 | 12.17 | 12.17 | n.a |
Payment Days | 27 | 17 | 28 | n.a |
Total Asset Turnover | 1.94 | 1.86 | 1.69 | n.a |
Debt Ratios | ||||
Debt to Net Worth | 5.66 | 1.87 | 0.95 | n.a |
Current Liab. to Liab. | 0.01 | 0.10 | 0.12 | n.a |
Liquidity Ratios | ||||
Net Working Capital | $41,472 | $119,936 | $183,180 | n.a |
Interest Coverage | 2.82 | 6.35 | 8.22 | n.a |
Additional Ratios | ||||
Assets to Sales | 0.51 | 0.54 | 0.59 | n.a |
Current Debt/Total Assets | 1% | 6% | 6% | n.a |
Acid Test | 11.46 | 4.92 | 6.17 | n.a |
Sales/Net Worth | 12.96 | 5.34 | 3.29 | n.a |
Dividend Payout | 0.00 | 0.00 | 0.00 | n.a |
Sales Forecast | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Sales | |||||||||||||
Rooms | 0% | $40,000 | $60,000 | $60,000 | $50,000 | $50,000 | $50,000 | $30,000 | $30,000 | $30,000 | $30,000 | $0 | $0 |
Food | 0% | $8,000 | $16,000 | $20,000 | $18,000 | $18,000 | $12,000 | $8,000 | $7,000 | $7,000 | $7,000 | $0 | $0 |
Ski Rentals | 0% | $16,000 | $24,000 | $24,000 | $24,000 | $24,000 | $20,000 | $0 | $0 | $0 | $0 | $0 | $0 |
Clothing | 0% | $4,000 | $10,000 | $8,000 | $7,000 | $7,000 | $6,000 | $4,000 | $4,000 | $4,000 | $4,000 | $0 | $0 |
Total Sales | $68,000 | $110,000 | $112,000 | $99,000 | $99,000 | $88,000 | $42,000 | $41,000 | $41,000 | $41,000 | $0 | $0 | |
Direct Cost of Sales | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Rooms | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Food | $4,000 | $8,000 | $10,000 | $9,000 | $9,000 | $6,000 | $3,000 | $3,500 | $3,500 | $3,500 | $0 | $0 | |
Ski Rentals | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Clothing | $1,400 | $4,000 | $3,600 | $3,000 | $3,000 | $2,700 | $1,500 | $1,500 | $1,500 | $1,500 | $0 | $0 | |
Subtotal Direct Cost of Sales | $5,400 | $12,000 | $13,600 | $12,000 | $12,000 | $8,700 | $4,500 | $5,000 | $5,000 | $5,000 | $0 | $0 |
Personnel Plan | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Manager | 0% | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 |
Assistant Manager | 0% | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 |
Lodge Staff | 0% | $13,000 | $13,000 | $13,000 | $13,000 | $13,000 | $13,000 | $8,000 | $8,000 | $8,000 | $8,000 | $0 | $0 |
Food Store Staff | 0% | $4,500 | $4,500 | $4,500 | $4,500 | $4,500 | $4,500 | $3,000 | $3,000 | $3,000 | $3,000 | $0 | $0 |
Ski Rental/Clothing Store Staff | 0% | $4,500 | $4,500 | $4,500 | $4,500 | $4,500 | $4,500 | $2,000 | $2,000 | $2,000 | $2,000 | $0 | $0 |
Maintenance Staff | 0% | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 |
Cleaning Staff | 0% | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 |
Total People | 22 | 22 | 22 | 22 | 22 | 22 | 18 | 18 | 18 | 18 | 9 | 9 | |
Total Payroll | $38,500 | $38,500 | $38,500 | $38,500 | $38,500 | $38,500 | $29,500 | $29,500 | $29,500 | $29,500 | $16,500 | $16,500 |
General Assumptions | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Plan Month | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | |
Current Interest Rate | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | |
Long-term Interest Rate | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | |
Tax Rate | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | |
Other | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Pro Forma Profit and Loss | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Sales | $68,000 | $110,000 | $112,000 | $99,000 | $99,000 | $88,000 | $42,000 | $41,000 | $41,000 | $41,000 | $0 | $0 | |
Direct Cost of Sales | $5,400 | $12,000 | $13,600 | $12,000 | $12,000 | $8,700 | $4,500 | $5,000 | $5,000 | $5,000 | $0 | $0 | |
Other Production Expenses | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Cost of Sales | $5,400 | $12,000 | $13,600 | $12,000 | $12,000 | $8,700 | $4,500 | $5,000 | $5,000 | $5,000 | $0 | $0 | |
Gross Margin | $62,600 | $98,000 | $98,400 | $87,000 | $87,000 | $79,300 | $37,500 | $36,000 | $36,000 | $36,000 | $0 | $0 | |
Gross Margin % | 92.06% | 89.09% | 87.86% | 87.88% | 87.88% | 90.11% | 89.29% | 87.80% | 87.80% | 87.80% | 0.00% | 0.00% | |
Expenses | |||||||||||||
Payroll | $38,500 | $38,500 | $38,500 | $38,500 | $38,500 | $38,500 | $29,500 | $29,500 | $29,500 | $29,500 | $16,500 | $16,500 | |
Sales and Marketing and Other Expenses | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | |
Depreciation | $1,190 | $1,190 | $1,190 | $1,190 | $1,190 | $1,190 | $1,190 | $1,190 | $1,190 | $1,190 | $1,190 | $1,190 | |
Leased Equipment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Utilities | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $1,500 | $1,300 | $1,300 | $1,300 | $1,300 | $1,300 | |
Insurance | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | |
Lease | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Payroll Taxes | 15% | $5,775 | $5,775 | $5,775 | $5,775 | $5,775 | $5,775 | $4,425 | $4,425 | $4,425 | $4,425 | $2,475 | $2,475 |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Operating Expenses | $55,465 | $55,465 | $55,465 | $55,465 | $55,465 | $55,465 | $43,615 | $43,415 | $43,415 | $43,415 | $28,465 | $28,465 | |
Profit Before Interest and Taxes | $7,135 | $42,535 | $42,935 | $31,535 | $31,535 | $23,835 | ($6,115) | ($7,415) | ($7,415) | ($7,415) | ($28,465) | ($28,465) | |
EBITDA | $8,325 | $43,725 | $44,125 | $32,725 | $32,725 | $25,025 | ($4,925) | ($6,225) | ($6,225) | ($6,225) | ($27,275) | ($27,275) | |
Interest Expense | $2,896 | $2,875 | $2,854 | $2,833 | $2,813 | $2,792 | $2,771 | $2,750 | $2,729 | $2,708 | $2,688 | $2,667 | |
Taxes Incurred | $1,272 | $11,898 | $12,024 | $8,611 | $8,617 | $6,313 | ($2,666) | ($3,050) | ($3,043) | ($3,037) | ($9,346) | ($9,340) | |
Net Profit | $2,967 | $27,762 | $28,057 | $20,091 | $20,106 | $14,730 | ($6,220) | ($7,116) | ($7,101) | ($7,086) | ($21,807) | ($21,792) | |
Net Profit/Sales | 4.36% | 25.24% | 25.05% | 20.29% | 20.31% | 16.74% | -14.81% | -17.35% | -17.32% | -17.28% | 0.00% | 0.00% |
Pro Forma Cash Flow | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Cash Received | |||||||||||||
Cash from Operations | |||||||||||||
Cash Sales | $68,000 | $110,000 | $112,000 | $99,000 | $99,000 | $88,000 | $42,000 | $41,000 | $41,000 | $41,000 | $0 | $0 | |
Subtotal Cash from Operations | $68,000 | $110,000 | $112,000 | $99,000 | $99,000 | $88,000 | $42,000 | $41,000 | $41,000 | $41,000 | $0 | $0 | |
Additional Cash Received | |||||||||||||
Sales Tax, VAT, HST/GST Received | 0.00% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
New Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Other Liabilities (interest-free) | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales of Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales of Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Investment Received | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash Received | $68,000 | $110,000 | $112,000 | $99,000 | $99,000 | $88,000 | $42,000 | $41,000 | $41,000 | $41,000 | $0 | $0 | |
Expenditures | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Expenditures from Operations | |||||||||||||
Cash Spending | $38,500 | $38,500 | $38,500 | $38,500 | $38,500 | $38,500 | $29,500 | $29,500 | $29,500 | $29,500 | $16,500 | $16,500 | |
Bill Payments | $845 | $25,916 | $42,605 | $44,086 | $39,218 | $39,017 | $33,045 | $17,527 | $17,425 | $17,410 | $16,954 | $4,116 | |
Subtotal Spent on Operations | $39,345 | $64,416 | $81,105 | $82,586 | $77,718 | $77,517 | $62,545 | $47,027 | $46,925 | $46,910 | $33,454 | $20,616 | |
Additional Cash Spent | |||||||||||||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Principal Repayment of Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Other Liabilities Principal Repayment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Long-term Liabilities Principal Repayment | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | |
Purchase Other Current Assets | $0 | $3,000 | $1,000 | $0 | $3,000 | $0 | $2,000 | $0 | $2,000 | $0 | $0 | $3,000 | |
Purchase Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Dividends | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash Spent | $41,845 | $69,916 | $84,605 | $85,086 | $83,218 | $80,017 | $67,045 | $49,527 | $51,425 | $49,410 | $35,954 | $26,116 | |
Net Cash Flow | $26,155 | $40,084 | $27,395 | $13,914 | $15,782 | $7,983 | ($25,045) | ($8,527) | ($10,425) | ($8,410) | ($35,954) | ($26,116) | |
Cash Balance | $40,755 | $80,839 | $108,234 | $122,149 | $137,930 | $145,914 | $120,869 | $112,342 | $101,917 | $93,507 | $57,553 | $31,437 |
Pro Forma Balance Sheet | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Assets | Starting Balances | ||||||||||||
Current Assets | |||||||||||||
Cash | $14,600 | $40,755 | $80,839 | $108,234 | $122,149 | $137,930 | $145,914 | $120,869 | $112,342 | $101,917 | $93,507 | $57,553 | $31,437 |
Other Current Assets | $0 | $0 | $3,000 | $4,000 | $4,000 | $7,000 | $7,000 | $9,000 | $9,000 | $11,000 | $11,000 | $11,000 | $14,000 |
Total Current Assets | $14,600 | $40,755 | $83,839 | $112,234 | $126,149 | $144,930 | $152,914 | $129,869 | $121,342 | $112,917 | $104,507 | $68,553 | $45,437 |
Long-term Assets | |||||||||||||
Long-term Assets | $350,000 | $350,000 | $350,000 | $350,000 | $350,000 | $350,000 | $350,000 | $350,000 | $350,000 | $350,000 | $350,000 | $350,000 | $350,000 |
Accumulated Depreciation | $0 | $1,190 | $2,380 | $3,570 | $4,760 | $5,950 | $7,140 | $8,330 | $9,520 | $10,710 | $11,900 | $13,090 | $14,280 |
Total Long-term Assets | $350,000 | $348,810 | $347,620 | $346,430 | $345,240 | $344,050 | $342,860 | $341,670 | $340,480 | $339,290 | $338,100 | $336,910 | $335,720 |
Total Assets | $364,600 | $389,565 | $431,459 | $458,664 | $471,389 | $488,980 | $495,774 | $471,539 | $461,822 | $452,207 | $442,607 | $405,463 | $381,157 |
Liabilities and Capital | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Current Liabilities | |||||||||||||
Accounts Payable | $0 | $24,498 | $41,130 | $42,778 | $37,912 | $37,897 | $32,460 | $16,946 | $16,845 | $16,831 | $16,816 | $3,980 | $3,965 |
Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Other Current Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Subtotal Current Liabilities | $0 | $24,498 | $41,130 | $42,778 | $37,912 | $37,897 | $32,460 | $16,946 | $16,845 | $16,831 | $16,816 | $3,980 | $3,965 |
Long-term Liabilities | $350,000 | $347,500 | $345,000 | $342,500 | $340,000 | $337,500 | $335,000 | $332,500 | $330,000 | $327,500 | $325,000 | $322,500 | $320,000 |
Total Liabilities | $350,000 | $371,998 | $386,130 | $385,278 | $377,912 | $375,397 | $367,460 | $349,446 | $346,845 | $344,331 | $341,816 | $326,480 | $323,965 |
Paid-in Capital | $200,000 | $200,000 | $200,000 | $200,000 | $200,000 | $200,000 | $200,000 | $200,000 | $200,000 | $200,000 | $200,000 | $200,000 | $200,000 |
Retained Earnings | ($185,400) | ($185,400) | ($185,400) | ($185,400) | ($185,400) | ($185,400) | ($185,400) | ($185,400) | ($185,400) | ($185,400) | ($185,400) | ($185,400) | ($185,400) |
Earnings | $0 | $2,967 | $30,729 | $58,786 | $78,877 | $98,983 | $113,713 | $107,493 | $100,378 | $93,277 | $86,190 | $64,384 | $42,592 |
Total Capital | $14,600 | $17,567 | $45,329 | $73,386 | $93,477 | $113,583 | $128,313 | $122,093 | $114,978 | $107,877 | $100,790 | $78,984 | $57,192 |
Total Liabilities and Capital | $364,600 | $389,565 | $431,459 | $458,664 | $471,389 | $488,980 | $495,774 | $471,539 | $461,822 | $452,207 | $442,607 | $405,463 | $381,157 |
Net Worth | $14,600 | $17,567 | $45,329 | $73,386 | $93,477 | $113,583 | $128,313 | $122,093 | $114,978 | $107,877 | $100,790 | $78,984 | $57,192 |
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by Heather Burdo
Published on 20 Oct 2018
A resort is like a hotel, but even better with accommodations and attractions conveniently located on the same premises. An ideal startup, a resort business has excellent prospects since many people love traveling, and luxury resorts are always a popular destination. From developing a solid business plan and scouting out the property where you will build, to promoting and marketing your resort, if you cover all the bases you'll be well-positioned for success.
Creating a comprehensive business plan should be your first step in starting a resort. The project will usually require a huge investment of funds for the land purchase and construction of the hotel and amenities, so you'll need a convincing business plan to attract investors or to get the bank to take a chance on you.
Your business plan should include your costs for the land and any licenses, permits and approvals you'll need, your estimated time for completion of the project and when you plan to open to the public. Describe your vision for your resort business in realistic, colorful detail so that the bank or investors are inspired by your passion and will want to get on board and finance your dream.
Ensure you develop a unique branding and catchy name for your resort, and if you plan to operate your resort as part of another hotel operator's franchise, you will need the requisite licenses, permits and approvals before, during and after the start of construction.
Don't settle for the first piece of land you see. Thoroughly check out appropriate properties within your budget, taking photos and making notes. You will want the absolute best location available for your resort, keeping your target customers in mind as you decide on the perfect spot.
Your location needs to be picturesque, ideally waterfront with a sandy beach and berths for yachts, or near a lake or ocean. It will need to be large enough to accommodate all your amenities such as swimming pools and other outdoor features and attractions. It will need to be reasonably easy for your guests to get there. You'll need spacious parking, and plan for activities such as a golf range, tennis courts, water-skiing and para-sailing. You can also rent small boats and recreational watercraft like jet skis.
Think about all the attractions you would like to add to your resort such as an amusement park, water park, a park designed for kids with swings and slides, and even a boutique mall featuring resort wear such as sun hats, designer clothes, bags and shoes. Consider anything you can think of that visitors would rave about and recommend to their friends and family, including an upscale restaurant, bar and nightly entertainment.
Depending on your location, your resort may be a contemporary or exotic, beach-front design with tiki huts, or traditional or modern hotel/resort complex designed for equestrian and skiing activities.
Ultimately, your resort needs to be a place where people can unwind, relax and enjoy themselves. When they rent a suite or villa at your resort, they will want to kick back and forget their problems.
Once you have your resort built and ready for your grand opening, you don't want to be wondering where your customers are. Start promoting your resort the moment your break ground. Create a buzz around your project and get everyone excited about the new upcoming resort in town. Your resort's name will be top of mind before it's even open, with people planning their vacations in advance.
Some ways of promoting your resort include blogging, social media and delivering flyers or full-color brochures to public facilities, stores and businesses in the area. Hire a designer or build your own website where you can showcase the entire project from ground-breaking to completion with beautiful photos, list of amenities, venues and attractions and even a mouth-watering menu and featured entertainers. Offer early-booking discounts and other perks for booking before the official grand opening.
BUSINESS PLAN SEVEN ELMS RESORT
65000 Windy Lane Dr. Traverse City, Michigan 49865
The Seven Elms Resort outlines how it will provide quality hospitality services, cost-effectively, in a popular northern U.S. lake resort environment. This plan successfully raised capital for property acquisition, renovation, and company start-up related costs.
Company summary, hotel & lounge overview, market analysis, competitive environment, strategy & implementation, promotion strategy, financial plan.
We seek funds for the acquisition and renovation of Seven Elms Resort, an adult-marketed, 17-room "boutique style" hotel specializing in a couples' "getaway" to provide relaxation and recreation in Benzie County, a popular tourism spot located next to the state of Michigan's Lake Michigan. Moderately priced between the high-line hotel properties and the older motel strips, Seven Elms Resort shall fill an affordability niche not presently available in Benzie County.
Combined with an on-site lounge, grill, poolside beverage service, and morning continental breakfast bar, we are seeking investment funds to renovate the hotel building, build-out a piano bar/lounge area with dance floor, and construct an outdoor pool adjacent to the indoor pool. With this refurbishment and other new amenities, Seven Elms Resort will form the basis of a highly profitable hotel venture. We are seeking funds to develop and expand the business in a phased approach, as highlighted within this document.
Seven Elms Resort's owner, Steve M. Blackburn, has an extensive business background, including over 14 years of experience developing a variety of businesses. Mr. Blackburn received his B.A. in Business Economics, and currently is an M.B.A. candidate at the University of Michigan. Desiring to return to his own business, he wishes to establish Seven Elms Resort, Inc. in 1999.
The foundation for the plan is a combination of primary and secondary research, upon which the marketing strategies are built. Discussions and interviews were held with a variety of individuals involved with other similar businesses to develop the proforma data, review the market potential, and competitive situation.
Renovation in the Prairie Style period, our hotel's design elements and furniture will reflect this "organic" approach and provide an overall comfortable experience. Seven Elms Resort shall specialize in meeting an individual or couple's needs. As growth warrants, the 10-acre site would allow for future expansion of the lodging portion of the resort (Phase II).
Introduction.
In today's highly competitive environment, formal business planning is an essential element in achieving business success. A well-written business plan is primarily a communication tool used to obtain financing. In certain instances, particularly with our early stage company, this business plan also serves as a strategic plan.
Considering that lenders are inundated by numerous investment opportunities from which they choose only a few, this business plan describes our story and how we intend to grow. Seven Elms Resort, Inc. management team has made an in-depth analysis of its opportunities and weaknesses and it has concluded that the company has an excellent chance to succeed.
Sophisticated business planning helps management answer questions, such as: What will be our record of achievement? How have we fared compared to our competitors? Are we setting realistic and attainable goals and objectives?
Constructive and useful business planning requires a broad-based understanding of changes taking place in the marketplace in which the company competes, or plans to compete, and the ever-changing financial markets. In-depth technical skills in a variety of disciplines such as financial analysis, sales and marketing, latest technology, and managing growth are critical components in assessing a company's opportunities and risks.
The management of Seven Elms Resort, Inc. has developed this disciplined planning methodology to help the company anticipate its start-up costs and other critical information to arrive at this realistic plan.
Mr. Blackburn has sought legal assistance and advisors to develop the Seven Elms Resort concept. Steve will maintain an active management involvement in every aspect of daily resort operations. This plan reflects his vision.
The business of Seven Elms Resort, Inc. is the creation of and funding of an adult couples' 17-room hotel, specializing in a "getaway" atmosphere to provide relaxation and recreation in the Greater Benzie County/Lake Michigan area. Management is soliciting commercial finance partners who share its vision and desire to participate in this exciting business opportunity in the resort community of Benzie County, Michigan. The integration of these disciplines results in extensive and innovative services, set in a unique Prairie Style surrounding for our prospective guests.
The preferred location is a 10-acre parcel with 8 acres of woods. Of the 18 rooms, 3 are executive suites, with Jacuzzi tubs, and one of them will be converted to an onsite manager's apartment. Each room has individual climate control, direct-dial phones, and televisions. The facility has a large main lobby area, indoor pool/Jacuzzi/sauna, lighted tennis court, 2-car garage, storage shed, ample parking, and all equipment necessary for operation of the motel. The separate onsite manager residence and meeting room complex will serve as a future lounge/grill space. The grounds are beautifully landscaped.
The motel is located in the motel district of Benzie County and is situated on 9.43 beautifully landscaped, wooded acres. Approximately 7 of the 9.43 acres are wooded and undeveloped, which creates an opportunity for significant expansion or potential for an entirely new enterprise.
This facility consists of one building, built in two phases: a 22- and 15-year-old two- and one- story wood frame 18-unit motel and manager's/owner's apartment, which when combined, total approximately 14,787 square feet of living area. The 18-unit motel includes a lobby with a fireplace, reception area, storage area, laundry room, bathroom, meeting rooms, a balcony, 18 room units, a men's and women's bathroom, kitchen, a whirlpool/sauna room, an indoor swimming pool, and mechanical room. The motel has a partial basement and includes a laundry room with two washers and two dryers.
The manager's apartment (future piano bar and basement bar/meeting room area) offers a living room, kitchen, dining area, family room, half bath, and gift shop on the first floor with 3 bedrooms and 2 baths on the second floor. The home has a concrete block basement that is partially finished with a recreation room and a 3/4 bathroom.
The exterior is cedar and the roof is pitch and pebble. The building is seated on a poured concrete and a concrete block foundation. Interior walls are concrete block and drywall. The flooring is carpet and ceramic tile. There are casement windows and wood storms and screens. There is a basement area under the living quarters and a portion of the motel.
Other improvements include a 2-car garage with 2 electric door openers. A detached storage shed is located to the rear of the manager's apartment. Land improvements include a blacktop driveway and parking lot with 23 parking spaces, concrete sidewalks, a lighted tennis court, street signage, and beautiful landscaping with a mature variety of trees and shrubs.
Mechanical systems include five gas hydropic, two gas forced air furnaces, electric baseboard heat, individual heat, and central air for each unit; 120-gallon hot water heater, 600-amp electrical service, intercom system, two central vacs, water softener, sump pump, 4-camera security system, cable television, smoke alarms, and telephone system.
Seven Elms Resort, Inc.'s mission is to provide quality hospitality services to our guests in a comprehensive and cost competitive manner, providing the finest accommodations in Benzie County, Michigan.
This business plan serves to detail the direction, vision, and planning to achieve our goal for providing superior and comprehensive hotel and lounge services. Our plan objectives are:
Seven Elms Resort shall fill a niche not presently available, namely a moderately priced (under $130 per night, summer rate) resort. Combined with an on-site lounge, a grilled food service, an indoor and outdoor pool bar, and a morning continental breakfast offering, we shall differentiate ourselves by becoming a "boutique style" resort versus simply another motel. With the construction of an outdoor pool adjacent to the present indoor pool/whirlpool/sauna complex and our other refurbishment and new amenities, Seven Elms Resort will form the basis of a highly profitable venture set in a Prairie Style environment.
Mr. Steve Blackburn founded Seven Elms Resort, Inc. hotel and lounge in 1998 as a Michigan Subchapter "S" Corporation. Since 1985, Steve has had extensive experience in creating and managing organizations for environmental and economic development-oriented companies involved in nationwide projects.
Steve consults with area businesses in development-related issues, including finance, and is a United States SBA counselor at the Small Business Development Center at the University of Michigan. Past SBA clients include service and manufacturing organizations. He is a certified SBA Fast Track program instructor, a Michigan licensed loan solicitor, with a specialty in commercial finance, and a guest lecturer at U-M for Business Plan Writing Workshops. He has started previous business and corporate subsidiaries and looks forward to managing Seven Elms Resort on a daily basis.
Currently, Steve is an M.B.A. candidate at U-M and holds a Bachelor of Arts degree in Business Economics with a minor in chemistry from Notre Dame University.
Seven Elms Resort, Inc. has additional key staff members and advisors to assist during the development, planning, and initial planning phases. They include an architect trained at the University of Notre Dame, CPAs, and former managers of bar and Bed and Breakfast style properties.
Mr. Steve Blackburn will manage all aspects of the business and service development to ensure effective customer responsiveness. Qualified resort associate professionals will provide additional support services. Support staff will be added as guest and/or patron load factors mandate. Blackburn has joined the American Hotel and Motel Association.
For purposes of this Business Plan document, Seven Elms Resort, Inc.—Phase I and Phase II for developmental growth are defined below:
This phase involves preparation and development of Seven Elms Resort. Until the ideal property is acquired, Seven Elms Resort, Inc. offices will be housed at the home of Mr. Steve Blackburn, its founder. The property will establish its own Prairie Style identity, management directives, and capital. Incorporating a total quality management approach and a guest appreciation program, Seven Elms Resort will develop key repeat guests and lounge patrons. Through word of mouth and advertising, our reputation as an affordable "boutique style" resort shall grow.
Property renovation will include the makeover of 18 to 17 rooms (with 3 suites) and the conversion of the present onsite property manager's house to lounge gathering space. New construction includes a bar room addition, extra parking lot build-out, and an outdoor pool. [Phase I capital (start-up) funds are documented later on in this business plan.] It is anticipated that the funding and transfer of this property will happen in spring 1999. Operation "as is" of the facility would continue through the summer and fall. The hotel will close for the winter months for its build-out and renovation.
Continue implementation of sales, advertising, and marketing strategies developed in Phase I. Identify and pursue additional guest markets, i.e. Internet room guarantee services. Seven Elms Resort shall evaluate its room occupancy position to determine if a facility expansion is warranted. Seven Elms Resort anticipates additional support staff would be needed at the proper time (Phase II). This Plan does not contain funding needs for this Phase.
Establishing a hotel and lounge business clientele will take some time, as the research revealed word-of-mouth /recommendations /referrals and value as the primary way in which hotel and lounge services are selected by new guests. People who are completely new to the area, or who have few established connections, may look to the Yellow Pages or other advertising to establish available services, then call for information or pricing.
A good portion of the past guests to the property will no longer return, as the present ownership has operated the property as a Christian retreat-style motel.
Strengths of Seven Elms Resort, Inc. include Steve Blackburn's broad base of experience in managing different types of companies. He has extensive development experience and a track record of hiring the right people and training them. Blackburn understands the service sector business, has traveled extensively frequenting numerous lodging establishments, and has gained invaluable experience in organizational management.
Currently, a mid-size "boutique" resort niche is vacant in the Lake Michigan market, with present lodging on the high end, averaging $225 per night (and up) down to older motel properties of $79 per night. Several B&B establishments may fall into the middle, however, Seven Elms, as a resort-style property, will serve its niche by itself.
Seven Elms Resort, Inc. like all businesses, is affected by forces and trends in the market environment. These include economic, geographical, competitive, legal/political, and technical.
Positive forces include the generally prosperous economy that is currently in place, full employment, rising wages, and low inflation, leading more people to be able and willing to spend money and to get away for some time. The close locality of Lake Michigan offers an affordable alternative to a flyaway destination.
Located just two blocks from Lake Michigan and downtown Lakegrove, the area has several golf courses, two ski hills, water recreation activities, numerous dining establishments, various retail and specialty shops, art galleries, theatre entertainment venues, and the beauty and serenity of Lake Michigan, which has made this county a famous Midwest tourist destination. Traverse City began to prosper in the 1870s, becoming a desirable resort area. Many homes and estates date back to this era and several enormous "summer cottages" were built on the lakeshore and are still in evidence today.
Seven Elms Resort shall fill a niche not presently available, namely a moderately priced (under $130 per night), resort-type establishment. Combined with an on-site lounge, a grilled food service, an indoor and outdoor pool bar, and a morning continental breakfast offering, we shall differentiate ourselves by becoming a "boutique style" resort versus simply another motel.
Our Prairie Style surroundings will attract and retain guests who appreciate such refined environments.
Seven Elms Resort management will not move the project forward until it has obtained an option to acquire one of the 19 Benzie County, Michigan, liquor licenses. As faced by all businesses, the proper insurance needs shall be met and all operations and policy manuals shall be reviewed by appropriate legal experts. The facility will obtain all the necessary building permits prior to construction. Present facility zoning allows for this proposed use, including a bar, cabaret, grill, and dance floor space.
Computer programs greatly simplify the financial recordkeeping for today's businesses. As a small business, Seven Elms Resort will need to watch its expenses closely. By utilizing the existing software packages available in the hotel industry, including: room and facility management database, controlled bar and inventory measuring systems, and room key cards that allow patrons to charge directly to their room account, this technology shall assist management in controlling costs, reducing cash management, and maximizing revenue. Seven Elms Resort shall attract the resources necessary to train and operate the system in order to generate the reports and manage the inventory.
A listing of the hotel and motel properties in Benzie County, Michigan (sourced through Midwest and the Ameritech Directories) is as follows. (Note: Other properties on Lake Michigan, but outside the city limits, are not included):
High Line ($139-$750 per night, depending upon season) The Cove of Lake Michigan ($145-$225) Grand Michigan Resort and Spa ($139-$750) The Harbor's Edge ($139-$199) The Michigan Inn ($215-$350) The Strike Hotel ($200) Motel ($59-$119 per night, depending upon season) Breezy Chateau Inn Budget Time Motel Lake Michigan Motel Lakewood Motel Misty Motel Pine Tar Motel Plaza Motel Shady Drive Motel The Stirrup Motel Swiss Motel Bed & Breakfast (B&B) Dahlia House The Mixer House Precious Times Inn
Hotel and motel properties in adjacent communities are not listed, however, they do advertise in the Yellow Pages.
Seven Elms Resort hotel and lounge is attempting to carve out a fourth segment in the lodging market; that of a "boutique" style, high-line property at mid-line pricing geared towards adult couples and not marketed to families.
A review of competitors' marketing strategies reveals no one targeting this market segment. Hotel and lounge is a referral-driven business—new business can be obtained by encouraging and rewarding present guests to refer future guests. Networking within business and civic groups is important; even if the business results are not immediately felt, it is an excellent public relations opportunity. Live piano, or jazz style trio, on the weekends will add excitement to the resort and draw community residents and guests from other properties.
A hypothetical behavior sequence model for a new customer (future guest) contemplating using a hotel and lounge service for the first time might look something like the following (based on discussions and interviews with potential guests):
Individual or couple decided to getaway for a few days. This may happen as a result of a need for a change of pace, vacation, or a celebration purpose. The need can arise anytime year round. Even in the late fall and winter months people are thinking "getaway" to break the weather doldrums.
Individual or couple investigates hotel services. In most cases, this means the they will consider first any recommendations that they are knowledgeable of through prior association (relative, friend, or social group). If the individual or couple is new to the area or otherwise has not made any close connections with people, he/she would look in the Yellow Pages for a listing, or perhaps look in a newspaper for advertising.
Acting on the advice of friends (or own knowledge), the individual or couple will call the recommended property to obtain information that will help him/her decide if this place is the best for them. Criteria for selection include: (1) amenities (pool, on-site food service, nonsmoking rooms, bar lounge area, etc.); (2) reputation (what kind of persons usually stay here?);(3) physical plant (how recent the renovation, upkeep, etc?); (4) courtesy (professional and attentive staff?); and (5) pricing (is the place affordable?).
Based on the information received, the individual or couple makes a decision and either schedules an appointment to view the property or makes a reservation.
The individual's satisfaction with his/her decision and with the service itself is largely a function of their interaction with the staff during their stay. Everyone associated with Seven Elms Resort will do everything possible to ensure a satisfactory experience for the guest, so that future business (and a future referral) is not at risk.
Marketing strategies will build on this model, taking advantage of precipitating events, fostering word-of-mouth recommendations, and creating satisfaction through interacting with the future or present guests.
Overall, the environment appears very positive for Seven Elms Resort, Inc. The forces driving market demand, mainly economic and geographical, are strong, with more people staying closer to home for shorter getaway trips and their comfort level of visiting Lake Michigan, one of the Midwest's premiere travel destinations. On the negative side, there is competition, and it will take a while for Seven Elms Resort to get "established" in its market niche.
The business is driven by referrals and repeat business, so for the first few years Seven Elms Resort will need to be aggressive in attracting new guests. The marketing strategy is subject to change upon guest feedback and surveys.
Target Markets—Geographical: The major cities within a three-hour drive of the property.
For its guests, Seven Elms Resort will be positioned as a new, beautifully landscaped, nature-filled, unique atmosphere hotel with a bar lounge service that fits an adult "getaway" market niche. A full range of referral services (i.e. restaurant recommendations, shopping, taxis, area attractions) will be made available and tailored to the needs of the particular guest.
Business services range from room phones that are Internet jack ready and telephone answering message service for each room to on-site fax services and meeting room space (lounge sitting area and cabaret room). Seven Elms Resort will aim to attract business guests and their partners needing to hold planning or strategy sessions away from the office in a new and comfortable surrounding, in order to even out revenues throughout the week.
Unlike products that are produced, then distributed, and sold, hotel and lounge services are produced and consumed simultaneously in a real-time environment. Thus, distribution issues center on making the services available in a convenient manner to the greatest number of potential guests. Seven Elms Resort will maintain a front office staff member throughout the night so guests are able to get answers to any question or service when they need it. This flexibility is especially attractive to the business traveler. Clients will be able to contact Seven Elms Resort by telephone, fax, and e-mail.
Rooms per night fees have been developed. The fee schedule takes into account seasonal rates that are common in the area. For businesses and other large group functions, pricing can be discounted depending upon the number of rooms reserved.
Example lounge pricing and grill food offerings are also noted.
Example fees:
Winter Rates (November through April): | |
Regular Rooms | $109.00 |
Suites | $149.00 |
Summer Rates (May through October): | |
Regular Rooms | $129.00 |
Suites | $179.00 |
Fax Service (per page, outgoing) | $0.75 |
Telephone Rates (set at going company rate) | |
Hotel Safe Storage Fee (per day) | $2.50 |
"Top Shelf" Brands | $4.75 - $7.50 |
Specialty Drinks | $4.50 - $5.75 |
Well Drinks | $4.25 |
Import Beers & Wine | $3.75 |
Domestic Beers | $3.25 |
Draft Beer | $2.75 |
Juices, Bottled Water, and Soft Drinks | $2.50 |
Rib-Eye Steak Sandwich | $7.99 |
Chicken Breast Sandwich | $5.99 |
Hamburger (1/4 pound) | $5.99 |
Fried Cod Fish Sandwich | $5.99 |
Salads | $4.99 - $8.99 |
Chicken Tenders | $4.99 - $6.99 |
Cheese Sticks (with sauce) | $4.99 |
Frozen Pizza | $6.99 - $8.99 |
By giving careful consideration to customer responsiveness, Seven Elms Resort's goal will be to meet and exceed every service expectation of its hotel and lounge services. Our guests can expect quality service and a total quality management (TQM) philosophy throughout all levels of the staff.
Promotion strategies will vary depending on the target market segments. Given the importance of word-of-mouth referrals among all market segments when choosing a "getaway" hotel or small business meeting location, our efforts are designed to create awareness and build referrals. A cost-effective campaign—focused on direct marketing, publicity, our frequent guest reward program, and advertising—is being proposed.
New business segment.
A direct marketing (direct mail) package consisting of a tri-fold brochure, letter of introduction, and reply card will be sent to a list of potential guests. This list can be obtained from International Business Lists, Inc. (Chicago, IL) and is compiled from tax records (by upper-income geographical areas, Secretary of State incorporation registrations, business license applications, and announcements from newspaper clippings).
The brochure and letter introduces Seven Elms Resort, stresses the importance of having a good time in comfortable surroundings, provides information on our resort services, and describes what sets us apart from other area hotel and lounge properties. The initial mailing may contain a promotional offer: the opportunity to receive a 10% discount on the first night's room rate.
Approximately two months after the mailing, an additional letter shall be sent. The potential guest would be asked to address any questions and the follow-up would remind them to drop in for a property tour on their next trip to Lake Michigan. Additionally, new businesses will be targeted and sent information.
The cycle would repeat itself with new target communities and select businesses and would continue through the first year. After that, additional mailings would be conducted, as needed, based upon occupancy goals.
Seven Elms Resort, Inc. will also consider developing a one-page newsletter to be mailed quarterly to past guests and prospects in the database. The newsletter can be used to update clients on hotel and lounge and area-related developments, but also serves as a reminder of what sets Seven Elms Resort apart. The newsletter can be produced in-house and for the cost of paper and a stamp creates a lot of goodwill among guests and business prospects.
A news release will be sent to area newspapers and magazines announcing the launch of Seven Elms Resort, Inc. and lounge. Area talent searches will be conducted to secure weekend cabaret room entertainment.
Steve Blackburn will join the Benzie County Chamber of Commerce as a means of networking in the community. He also may make himself available for speaking engagements at other community or civic organizations as a low-cost way of increasing awareness and building goodwill in the community.
For present guests: "Stay 6 nights and get the seventh night for free" promotion and as a means of building business by word-of-mouth, present customers should be encouraged and rewarded for referring future guests. This can be accomplished by offering a small "rebate" (5% or 10% rebate on first night stay) to current customers who successfully refer a new guest.
Advertising is utilized primarily to attract new guests and serves to build awareness and name recognition of the resort in general, which is important for word-of-mouth referrals ("Oh yes, I've seen that resort's ads before.")
Resort brochure | $750 |
Reply card | $250 |
Lists | $750 |
Postage | $500 |
Restaurant placemats | $500 |
Newspaper advertising | $5,000 |
Yellow Pages | $2,000 |
Advertising specialties | $250 |
Objectives have been established for Seven Elms Resort so that actual performance can be measured. Thus, at the end of its first year, Seven Elms Resort should have:
Each subsequent year new objectives will be set for these benchmarks and actual performance will be measured against them. If actual performance falls short of objectives, investigation will be made into the cause, and plans will be adjusted accordingly.
In addition, it is recommended that Seven Elms Resort keep track of the source of all new guests ("Where did you hear of us?") in order to measure the effectiveness of each type of promotion. Each subsequent year's budget should adjust spending toward the types of promotion that reach the most new clients.
Customer satisfaction is most directly reflected in the year-to-year customer retention percentage. All lost customers should be investigated to find out why they left. A customer satisfaction survey may be considered after three to four years in the business.
Here is the Project Funding Summary for Seven Elms Resort:
Building and Improvements Cost | $881,000 |
Fixtures, Build-Out and Furniture | $353,739 |
Developmental Start-Up Expense | $116,000 |
Five Months Working Capital | $49,261 |
Developmental costs for the start-up of this new hotel and lounge services company are listed above. These schedules also listed in the Ten Year Proforma.
The following schedule highlights the anticipated developmental costs:
Liquor License | $71,000 |
Architect Fees | $7,500 |
Accounting | $1,500 |
Marketing, PR & Advertising | $10,000 |
Engineering & Permitting | $5,000 |
Office Expense | $2,000 |
Founders Draw (Gen. Contractor) | $16,000 |
Legal | $3,000 |
The development of Seven Elms Resort, Inc. will require the full-time talents of Steve Blackburn. Phase II growth amounts will be developed and sought at a later date, based upon needs to be determined at that time.
The following assumptions will be incorporated into Seven Elms Resort, Inc. proforma statements.
This is the resume of Steve Blackburn, the future owner of Seven Elms Resort Steve Blackburn has demonstrated experience in business and sales organization development. Developed and secured funding for own organization, author of several successful RFPs, business and market development plans. Has expertise in customer retention programs, sales training seminars, project planning, benchmark analysis, and forecasting and budgeting. Designed and implemented computer applications including: customer database service frequency schedules, truck routing, customer retention surveys, accounting and commission salary programs.
University of Michigan, Ann Arbor, Michigan Small Business Development Center 1996-present
As a United States SBA counselor I assist clients in sales and business development and other related matters including: Sales, Marketing, Manufacturing and Productivity Analysis, Regulations Compliance, and Regulatory Program Development.
MRT Environmental, Inc., Cleveland, Ohio 1992-1995
Co-founder, Business Development, Marketing, and Sales. A consulting and facilities development organization for environmental services clients in the health care industry. My responsibilities included: development of project opportunities and clients, sales personnel and training, advertising and promotion, and financial record keeping.
Pride & Barrow Industries, Inc., Dallas, Texas 1985-1992
Vice President - Sales and Development. $80 million subsidiary of a $3 billion public company. Created the new medical services division; integrated third year revenues exceeded $4.5 million and employed over 25 employees. Market development and direct sales management for all regional special services subsidiaries. Developed region's first comprehensive medical waste service organization by identifying and marketing to the healthcare industry an emerging service bundle of packaging, transportation, in-service training, and treatment of medical wastes. Serviced all sectors of the healthcare industry from physician offices through major medical centers.
Market Development Representative and Environmental Specialist. Analyzed new business development opportunities in all service areas. Municipal waste contracts, waste company acquisitions, landfill development, and expansions and ancillary specialty services. Responsible for training, sales functions, regulatory data submittal, and special waste stream permitting. Created computer applications and processing systems to maximize efficiency and minimize errors.
University of Michigan, 1998, M.B.A. candidate.
Notre Dame University - Graduated 1985. B.A. in Business Accounting and Economics. Completed a course of study for a B.S. in Chemistry.
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Have you considered taking your business from the idea stage to the actual launching phase? Opening a resort business is a great way to become successful and make an impact in the tourist and hospitality industry. For a smooth transition from an idea to an executing concept, there are certain things to complete before you can launch. In this article, we will discuss how to open a resort business in 10 steps - a checklist for the would-be entrepreneur who has made the exciting decision to take the plunge into an adventure of launching their own business.
The hospitality industry is continuing to boom. According to the World Tourism Organization's May 2018 report, international tourism grew by 7% in 2017 alone with over 1.3 billion international tourist arrivals. Those numbers, as well as attention to detail and competency on the part of the entrepreneur, can make resort businesses lucrative prospects for a meaningful level of financial success.
Building a resort business requires a huge investment of both money and time. Still, the rewards are worth it! With the right knowledge and planning, you can successfully open your resort business. Here's our 10 step checklist to help you get started:
This comprehensive checklist should help you launch your business in the right direction! Keep reading for more details on each of the steps, and soon you will be one of the many successful entrepreneurs who have dared to take the plunge and open a resort business.
The most important step to opening a successful resort business is creating the right idea and mission room for it. To get you started, a checklist of must-haves to help create a well-rounded business plan that accounts for both the success of your venture and the total customer satisfaction should include:
After the idea and mission statement is established, it is important to create an action plan for how the business will be implemented. This should include steps to assess and adapt the concept to the chosen market and resources available. The following checklist will help you take the correct steps to turn your idea into reality:
| Resort Business Plan DOWNLOAD |
A resort business is very much like a restaurant or retail store but it requires more complex planning on the operations. As a business consultant, I advise every business to plan their purpose, vision and goals before launching. Without them, it will be difficult to accurately measure and report performance later on.
To plan your vision and goals, you need to take the following considerations:
Choosing the right form of business entity can save time and money in the future. Different business entities have different legal and tax implications. It is wise to consult with an accountant or attorney for advice on setting up the best fit legal entity for your resort business. Common resort business entities include a Corporation (C-Corp and S-Corp), Limited Liability Company (LLC), Limited Partnership (LP), and Sole Proprietorship.
Here is an overview of common business entities:
The right legal structure for a resort business may vary depending on the business or owner’s needs. Consulting a professional business advisor or attorney can help make the right choice when establishing a resort business.
Creating a business name and slogan are essential to presenting your resort in a professional way to customers. Coming up with a unique name and slogan for your resort requires careful research and thought, as it will help to differentiate you from competitor businesses.
Choosing a strong name is an important part of launching a successful resort business. When deciding on your resort business's name, take the following into consideration:
Your business slogan should be concise and memorable. It should represent the goals of your business and convey the feelings you are trying to evoke for customers. For example, you may want to include a phrase such as 'Unwind in Paradise' to promote an island getaway. Other potential slogans could include 'Create Vacation Memories,' 'Escape to the Beach,' and 'Life is Better at the Beach.'
A business plan is a roadmap to success that explains how your business will be set up, how you will manage it, track progress, and take it to the next level. Doing this well in advance, before investing in the actual setup will not only save time and resource but also reduce the risks of starting a resort business. Before you start making a business plan, ensure that you have a clear idea of what you want to achieve and a plan to get there.
The key components of a business plan are:
Having the right business plan in place will be extremely helpful when you go to apply for any financing, grants or other forms of financial support.
It is an important step to estimate the capital required to start and running the resort business. The amount of money needed depends on the size of the facility, the type of service, accessibility, the kind of activities, and the technology you plan to use.
A initial capital that should be taken into consideration are:
It is better to start looking for funds even before the planning phase. This will ensure that your budget and timeline remains on track. You can look for funds and purchase bank loan to cover these costs.
You can also consider alternate options such as soliciting investments from friends, family, or venture capitalists. In addition, you can also organize crowdfunding campaigns to gather the required capital.
When launching a resort business, you will need to source funds from multiple sources to make it successful. Here are some options to consider:
Navigating the permit and licensure process is one of the more complex and tedious tasks associated with starting a resort business. Depending on where you are located, there are different permit and licensure requirements that must be met in order to open and operate your business. In some cases, the permits will need to be acquired prior to construction of the resort, while in other cases they may need to be requested at a later time.
When beginning to acquire permits and licenses for your resort, it's important to first identify the various types of permits and licensure you'll need, as well as the governing authority responsible for each. Most states have an agency that regulates the licensure of businesses in those states, such as the Department of Consumer Affairs in California.
It's also important to make sure that all of the applications are completed accurately and honestly. Applications which are incomplete or falsified in any way can result in your application being denied, so attention to detail is critical. Gathering all necessary documents prior to submission can also speed the process along, as most agencies require certain documents in order to review the application. Once all applications have been completed and submitted, you should begin the process of acquiring the necessary permits and licenses.
Hiring staff can be a daunting experience for any entrepreneur who is opening a resort business. Before hiring, it is important to develop a hiring and training roadmap. This roadmap should include identifying and specifying the types of staff that are required to complete the tasks for the resort and the qualification levels required. Recruiting potential staff and conducting interviews should also be part of the roadmap. Once the decision is made to hire staff, it is important to develop an onboarding process that spans onboarding prior to an employee’s start date, their first day, and the first few weeks of employees being onboarded.
When it comes to training resort staff, the human resources department should develop a comprehensive training program that ensures that all employees have the knowledge and competencies required for their job descriptions. This should include a formal training and onboarding plan that spells out the topics to be covered, as well as how and when the training will take place. Additionally, the human resources department should track the employee performance during the onboarding period to ensure that they are learning the necessary information.
As a pro business consultant, I recommend planning your marketing strategy well in advance before launching the resort business. Determine the target audience, create the marketing objectives, develop a budget, and include clear metrics for measuring success. This is probably the most difficult and time-consuming step, but an essential one for a successful launch. Here is what should be included in the marketing strategy:
Following the above-mentioned checklist for how to open a resort business will help entrepreneurs maximize their chances for success and create a successful enterprise. From clearly defining your idea and mission to getting all necessary permits and licenses, these 10 steps are an essential roadmap for launching a resort business. With the right planning and preparation, you are equipped to open your doors to a world of opportunity and true entrepreneurial success.
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Resort business plan: begin with the feasibility study.
The feasibility study is the first step in starting a new resort, and should be prepared before the business plan. Leisure Business Advisors LLC (LBA) specializes in conducting this study, which is generally required by financing institutions. The study provides market and financial analysis and projections that will be used in the developer's business plan. The study also provides critical physical planning recommendations for the resort business plan. It is critical that design plans are in line with market needs and expected cash flow. These planning guidelines need to be in place before the construction and building can start. Designers, planners, and managers can all benefit from the guidance provided in the study. As part of the feasibility study, LBA can work closely with you in preparing the initial image package that would assist designers in the planning stage of development that follows the feasibility stage. We could provide a walk-through description and 3D computer graphics conceptual images of your new resort seen through the eyes of a typical visitor. These would preliminarily suggest its planned "look and feel" in business financing and marketing presentations.
The following paragraphs outline the major tasks typically involved in conducting a feasibility study.
An initial meeting would be held to discuss the resort project in more detail and to see the prospective site if one has been chosen.
The site and local area would be evaluated to determine its effect on potential usage. Factors include:
The resort concept would be described and industry trends discussed. Readers of the feasibility study may be unfamiliar with the concept and this section of the report provides an introduction before specific project-related issues are examined.
The market areas would be defined based on distance from the site. Demographic characteristics for the resident market would be analyzed to provide an indication of support. This would typically include:
The tourist market would be defined and analyzed. Based on available information, this analysis would likely examine:
Selected comparable resorts would be examined. Available reported information would be provided on individual characteristics, including:
Potential annual usage for the proposed resort would be estimated for the first five years of operation based on a number of factors, including:
LBA would make physical planning recommendations needed to service expected market demand. The specific parameters vary from one resort to another. Physical planning parameters may include:
Initial conceptual efforts may also be provided. These could include:
The final report could also include a video presenting the results of the feasibility study with a "fly-through" or "walk through" computer animation of part of the new resort.
The financial analysis for the proposed resort would be based on the selected concept and potential usage. Financial estimates for the first five years of operations would include:
LBA would determine the warranted development cost or investment based on potential profitability. This is the recommended maximum amount that should be spent to effectively develop the project and return a reasonable return-on-investment to equity investors. This warranted amount would be compared to the actual development costs for other comparable resorts. Relative size would be taken into consideration. This comparison would provide guidance as to whether the proposed resort could be developed for its warranted investment. If it can be, the project is considered financially feasible.
John Gerner, LBA's managing director, has conducted feasibility studies for many resorts over the past 30+ years. These include:
Great Wolf Resorts is the world's largest chain of indoor water parks, and operates its family resorts under the "Great Wolf Lodge" brand. The resorts also offer specialty restaurants, arcades, spas, fitness rooms and children's activity areas. The first Great Wolf Lodge location opened in 1997 in Wisconsin Dells, Wisconsin. The chain has since added eleven additional locations, with more currently in development. In 2012, Leisure Business Advisors LLC (LBA) conducted an independent consultant audit of the market feasibility study for a proposed Great Wolf Lodge in the Catskill Mountains tourist destination region. The client was the Greene County Department of Economic Development, Tourism and Planning. As part of this assignment, LBA conducted a series of financial stress tests on the anticipated payment revenues for the proposed infrastructure bonds. Click here to download this publicly available report.
Leisure Business Advisors LLC (LBA) was retained by National Venture Capital to evaluate the market and financial feasibility of a proposed themed four-season holiday village resort hotel near Mongolia's capital city of Ulaanbaatar. The entire assignment involved evaluating the concept, analyzing the market, estimating market potential, and gauging financial performance.
The Wisp Resort is a popular tourist destination that has been rated as one of the top ski resorts in the Mid-Atlantic region. It is a 2,700-acre planned real estate development, with government approvals for approximately 2,500 residential units (townhomes, condominiums, and single family homes). The Wisp Resort Hotel & Conference Center is located at the base of the mountain. The seven-story hotel includes 102 suites & 67 standard rooms. Since 2001, the entire resort has undergone more than $30 million in renovations and additions. Future plans include a mountaintop village, retail shops, restaurants, and additional skier services. The resort community is considered a four-season market. Adjacent is Deep Creek Lake, the largest inland lake in Maryland, with more than 65 miles of shoreline. As a subcontractor to Norton Consulting, Leisure Business Advisors LLC (LBA) analyzed future development options and prepared market share projections for expanding the Wisp Resort in 2008. The client was Signal Hill Capital Group LLC on behalf of Wisp Resort Development, Inc.
Click on one of these links for additional information:
Email Address for Initial Inquiries: [email protected] Office Address: Leisure Business Advisors LLC 2010 Princess Anne Avenue Richmond, VA 23223 USA
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Holiday Resort Project Report is available for download on this page. One can explore all the important details about this start-up that we have written in our project report. Our experts have made your work easy by writing a holiday resort project report that you will require to avail bank loan for this business and also using it as a map for your new journey.
A holiday resort is a perfect destination designed to provide a memorable and relaxing vacation experience for individuals, couples, families, and groups. These resorts are often located in breathtaking natural surroundings or near popular tourist attractions, offering a wide range of amenities and activities to cater to the diverse needs and preferences of guests.
Holiday resorts typically boast comfortable accommodations, ranging from luxurious rooms and suites to cosy villas or chalets. They are meticulously designed to provide a serene and welcoming atmosphere, with modern amenities such as private balconies, spa facilities, swimming pools, fitness centres , and well-manicured gardens. Some resorts even offer private beach access or stunning views of mountains, lakes, or forests .
Table of Contents
One of the highlights of a holiday resort is the extensive array of recreational activities available. Guests can engage in water sports like swimming, snorkeling, kayaking, or jet skiing, or enjoy land-based activities such as tennis, golf, hiking, or cycling. For those seeking relaxation, spa and wellness centres provide rejuvenating treatments and therapies, including massages, facials, and yoga classes.
Dining options at holiday resorts are diverse, with multiple restaurants and bars serving a variety of cuisines, from local delicacies to international dishes. Guests can savour gourmet meals, indulge in buffet spreads, or simply enjoy refreshing drinks by the poolside. It often organizes entertainment programs and events, including live music performances, cultural shows, themed parties, and children’s activities, ensuring that every member of the family can find something enjoyable to participate in.
The Holiday Resort project report is a necessary document that will help you get all the necessary licenses, help you set up this business and avail financial assistance from the banks. You can use it as a map that has all the solutions to your doubts and can resolve your problems in a gist of time.
Gone are the days of waiting at the door of the expert, as a result, you can now get your holiday resort business plan sample report in hand, by instantly downloading the report in PDF format.
First Step – Click Add to basket >> Check Out >> Payment
Second Step – Immediately after successful payment, you will get a link to download the report. You can download the report immediately from this link.
Holiday resorts offer a wide range of services and amenities to ensure a memorable and relaxing vacation experience for their guests. While the specific services can vary depending on the resort’s location, target audience, and facilities, here are some common services provided by holiday resorts:
A holiday resort business can offer numerous market opportunities in the travel and tourism industry. Here are some potential market opportunities for a holiday resort business:
Sr. No. | Particulars |
1 | Genesis |
2 | Introduction |
3 | Type of Resort |
4 | Step To Setup |
5 | Service Description |
6 | Components |
7 | License & Approvals |
8 | Swot Analysis |
9 | Projected Profitability Statement |
10 | Projected Balance Sheet |
11 | Cash Flow Statement |
12 | Calculation of D.S.C.R |
13 | Computation of Working Capital Requirement |
14 | Depreciation |
15 | Repayment Schedule of Term Loan |
16 | Break-Even Point Analysis |
17 | Financial Indicators |
18 | Implementation Schedule |
19 | Assumptions |
Starting a holiday resort business in India involves several steps. Here’s a brief overview:
Choosing the best location to start a holiday resort business depends on several factors. Here are some considerations to help you find a favourable location:
Overall, considering these estimates, a rough investment range to start a mid-range holiday resort business could be between $7.5 million and $22.1 million. However, it’s important to conduct a detailed feasibility study and business plan to get a more accurate estimate based on your specific circumstances and goals.
The land requirements for starting a holiday resort business can vary significantly depending on the scale, amenities, and facilities you plan to offer. On average, a holiday resort may require anywhere from 5 to 20 acres of land or more. This land size allows for the construction of accommodations, such as villas, cottages, or hotel rooms, as well as space for recreational facilities like swimming pools, restaurants, spas, gardens, and other amenities. However, the specific land size needed will depend on factors such as the number of rooms, the size of the resort, and the desired level of luxury and exclusivity. Conducting a comprehensive feasibility study and considering local regulations and zoning requirements will help determine the exact land size required for your holiday resort business.
Starting a holiday resort business requires obtaining various licenses and permits to ensure legal compliance and operational legitimacy. While the specific requirements may vary depending on your location and local regulations, here are some common licenses and permits typically needed:
Advertising a holiday resort business requires a comprehensive marketing strategy to reach potential customers and showcase the unique offerings of the resort. Here are some effective ways to advertise a holiday resort business:
In addition to those who want to prepare project reports themselves.
In our project report format, we cover technology details, diagrams, flow charts etc. as and when required or deemed fit to include. Also, we can help you prepare in-depth financial calculations which are necessary for the Investor/bank.
You will get the report data from our Project Report in PDF. You can also modify the information according to your needs. You will be able to access the data easily according to your requirements.
What are some common amenities available at holiday resorts.
Common amenities at holiday resorts include pools, restaurants, bars, fitness centers, Wi-Fi access, and concierge services.
Yes, many holiday resorts have kid-friendly facilities, including pools, playgrounds, and organized children's activities.
Prioritize resorts with good customer service, comfortable accommodations, and facilities that cater to your needs.
Holiday resorts often offer activities such as swimming, spa services, sports, entertainment shows, and guided tours.
Consider factors like location, amenities, reviews, and budget to find the perfect holiday resort.
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Luxury lakeside lodges and glamping pods in east ayrshire made for outdoor lovers, arranview holiday park, set in stunning moscow, a hamlet in east ayrshire, this is one of the gateways to the scottish highlands nestled in the heart of the countryside yet only a few miles from the city of glasgow..
Our Luxurious Lodges and Pods are perfectly located for a leisurely weekend break or a more active holiday. With sweeping views of the surrounding countryside, the clearest night skies and the freshest air you might have ever breathed, we offer an exceptional place to stay.
Our Lodges and Glamping Pods are surrounded by fields, large lochans stocked weekly full of three different types of Trout, Rainbow, Brown and Blue and on a clear day you can see the Isle of Arran.
Our self-catered lodges have everything you need to make your stay as comfortable as possible. It comes with its own hot tub with stunning views. It has two bedrooms, the master has an ensuite shower room. A kitchenette with a hob, oven, fridge freezer, microwave and all the essentials. The open plan living area is the perfect entertaining space, with a wood burner effect electric fire. We also have WiFi with Netflix included in the cost. The lodge has central heating, double glazing and sliding doors. Each lodge can sleep up to 4 guests.
Each pod is furnished with a comfy king size bed, double sofa bed, (with bed linen and towels provided), your own en-suite toilet/shower and a fully equipped kitchen. Complimentary tea and coffee is also provided for an immediate cuppa when you arrive. Our state-of-the-art pods are ideal for couples and friends sharing. Each luxury pod is for 2 but sleeps up to 4, has its own parking and your own secluded hot tub on the decking!
Chill or venture out and explore – the choice is yours!
Best holiday park in the scotlands business awards 2021.
Now that you know what we’re all about here at arranview holiday park, secure your luxury break away with us now, privacy overview.
Property types, distance from, neighborhoods, traveler rating, hotel class, popular hotels in moscow right now.
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BETHESDA, Md., Aug. 07, 2024 (GLOBE NEWSWIRE) -- Host Hotels & Resorts, Inc. (NASDAQ: HST) (the “Company”), the nation’s largest lodging real estate investment trust, today announced that Host Hotels & Resorts, L.P. ("Host L.P."), for whom the Company acts as sole general partner, has priced its offering (the "Offering") of $700 million aggregate principal amount of 5.500% Senior Notes due 2035 (the "Notes"). The Notes are the Company’s senior unsecured obligations. The Offering is expected to close on August 12, 2024, subject to the satisfaction or waiver of customary closing conditions.
The estimated net proceeds of the Offering, after deducting the underwriting discount, de minimis original issue discount and fees and expenses, are expected to be approximately $683 million. Host L.P. intends to use the net proceeds from the sale of the Notes to repay all $525 million of its borrowings outstanding under the revolver portion of its senior credit facility, including amounts borrowed in connection with the recent acquisitions of The Ritz-Carlton O’ahu, Turtle Bay and 1 Hotel Central Park, and for general corporate purposes, which may include capital expenditures, dividends and/or funding for future acquisitions of hotel properties.
Goldman Sachs & Co. LLC, BofA Securities, Inc., J.P. Morgan Securities LLC, Wells Fargo Securities, LLC, Morgan Stanley & Co. LLC and PNC Capital Markets LLC are the joint book-running managers for the Offering.
The Offering is being made pursuant to an effective shelf registration statement and accompanying prospectus filed with the Securities and Exchange Commission on April 9, 2024 and a preliminary prospectus supplement filed with the Securities and Exchange Commission on August 7, 2024. A copy of the final prospectus supplement and the accompanying prospectus relating to the Notes may be obtained, when available, by contacting Goldman Sachs & Co. LLC, at 200 West Street, New York, New York 10282, telephone: (866) 471-2526, or by email: [email protected]; BofA Securities, Inc., at 201 North Tryon Street, NC1-022-02-25, Charlotte, NC 28255, Attention: Prospectus Department, or Toll-free: 1-800-294-1322, or by email at [email protected]; J.P. Morgan Securities LLC, at 383 Madison Avenue, New York, New York 10179, Attention: Investment Grade Syndicate Desk – 3 rd Floor, or by calling (collect) (212) 834-4533; and Wells Fargo Securities, LLC, 608 2nd Avenue South, Suite 1000 Minneapolis, MN 55402, Attention: WFS Customer Service, by email: [email protected] or Toll-Free: 1-800-645-3751. This press release does not constitute an offer to sell or the solicitation of an offer to buy any of the securities, nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state.
This press release contains information about pending transactions, and there can be no assurance that these transactions will be completed.
FORWARD LOOKING STATEMENTS
Note: This press release contains forward-looking statements within the meaning of federal securities regulations. These forward-looking statements are identified by their use of terms and phrases such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “should,” “plan,” “predict,” “project,” “will,” “continue” and other similar terms and phrases, including references to assumptions and forecasts of future results. Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors which may cause the actual results to differ materially from those anticipated at the time the forward-looking statements are made. These risks include, but are not limited to: general economic uncertainty in U.S. markets where we own hotels and a worsening of economic conditions or low levels of economic growth in these markets; our ability to close this Offering and apply the proceeds as currently intended; other changes in national and local economic and business conditions and other factors such as natural disasters and weather that will affect occupancy rates at our hotels and the demand for hotel products and services; the impact of geopolitical developments outside the U.S. on lodging demand; volatility in global financial and credit markets; operating risks associated with the hotel business; risks and limitations in our operating flexibility associated with the level of our indebtedness and our ability to meet covenants in our debt agreements; risks associated with our relationships with property managers and joint venture partners; our ability to maintain our properties in a first-class manner, including meeting capital expenditure requirements; the effects of hotel renovations on our hotel occupancy and financial results; our ability to compete effectively in areas such as access, location, quality of accommodations and room rate structures; risks associated with our ability to complete acquisitions and develop new properties and the risks that acquisitions and new developments may not perform in accordance with our expectations; our ability to continue to satisfy complex rules in order for us to remain a real estate investment trust for federal income tax purposes; risks associated with our ability to effectuate our dividend policy, including factors such as operating results and the economic outlook influencing our board’s decision whether to pay further dividends at levels previously disclosed or to use available cash to make special dividends; and other risks and uncertainties associated with our business described in the Company’s annual report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K filed with the SEC. Although the Company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that the expectations will be attained or that any deviation will not be material. All information in this release is as of the date of this release and the Company undertakes no obligation to update any forward-looking statement to conform the statement to actual results or changes in the Company’s expectations.
Chief Financial Officer (240) 744-5267 | Investor Relations (240) 744-5117 |
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Marketing Plan. Traditionally, a marketing plan includes the four P's: Product, Price, Place, and Promotion. For a resort business plan, your marketing strategy should include the following: Product: In the product section, you should reiterate the type of resort company that you documented in your company overview.
Simply download the business plan ppt templates and edit all relevant information according to your brand requirements. The template is also available in an easy-to-use format so you can edit faster. What's more to think, go ahead and grab your template! Create lasting vacations for your consumers, starting today! FAQs on Resort Business Plan
Shady Palms Resort is a hotel in Palm Beach. Shady Palms Resort is a leading hotel and has been in business for over 40 years. The hotel offers a wide array of services and amenities that you typically find at a hotel. Shady Palms Resort offers luxury accommodations and a five-star restaurant and lounge.
Writing a resort business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan: 1. Executive Summary. An executive summary is the first section planned to offer an overview of the entire business plan. However, it is written after the entire business plan is ready and ...
Resort Business Plan Template. If you want to start a resort or expand your resort business, you need a business plan. The following Resort business plan template gives you the key elements to include in a winning Resort business plan. It can be used to start an all inclusive resort, a ski resort, a health spa resort, an eco tourism resort, or any other type of resort business.
9. Implementation Plan: Provide a timeline and action plan for launching and operating your resort. Break down the key milestones, such as site selection, construction, staffing, and marketing campaigns, to ensure a smooth and successful opening. Remember, your business plan is not a static document.
Step 4. Company analysis. In this section, you should aim to explain the unique selling points (USPs) of your new vacation rental business, outlining what it will bring to the existing market. Start by asking a few simple questions to figure out how you're different (and better) than other rental properties out there.
Sample Resort Business Plan. Writing a business plan is a crucial step in starting a resort. Not only does it provide structure and guidance for the future, but it also helps to create funding opportunities and attract potential investors. For aspiring resort owners, having access to a sample resort business plan can be especially helpful in ...
The business description section of a resort business plan delves into the heart of the venture, providing a detailed overview of the resort's vision, mission, and core values. It articulates the purpose of the resort, highlighting the experiences and benefits it aims to offer to its target market.
The written part of a resort business plan. The written part of a resort business plan usually consists of 7 comprehensive sections. From crafting an executive summary to presenting your financials, let's have a look at each of the key sections that compose a business plan. 1. The executive summary.
5.1 Market Trends. The global resort and hotel industry generate more than $550 billion in revenue as of 2016. The resort and hotel industry is one of the important industries of the United States and has grown annually steadily over the recent years. It generated more than $190 billion in revenue as of 2015.
Cost of launching a website - $1,500. Cost of throwing a grand opening party - $10,000. Miscellaneous - $40,000. From the above estimate, we would need the sum of $1,000,000 to be able to successfully set up and start our beach resort business in Nevada - Las Vegas.
Business in a Box templates are used by over 250,000 companies in United States, Canada, United Kingdom, Australia, South Africa and 190 countries worldwide. Download your Resort Business Plan Template in MS Word (.docx). Everything you need to plan, manage, finance, and grow your business.
Steps of your Hotel Business Plan. Let's dive into the step-by-step checklist of what your hotel business plan should look like. Infographic by Xotels. 1. Executive Summary. This first part should consist of two main parts, being: Mission Statement (Introduction): a 1 line company description only the essence of your hotel (not 2 lines or a ...
The Silver Bear Lodge's sales strategy is to harness the existing Bear Valley Resort booking system that has been critical to the success of all of the area's lodges and inns. Room rates for the lodge will range from $150 - $250 per night in peak season. In the off season prices will range from $100 to $175 per night.
Your business plan should include your costs for the land and any licenses, permits and approvals you'll need, your estimated time for completion of the project and when you plan to open to the public. Describe your vision for your resort business in realistic, colorful detail so that the bank or investors are inspired by your passion and will ...
Encyclopedia of Business, 2nd ed. Hotel Resort Business Plan: Business Plans - Volume 07. Toggle navigation. Encyclopedia . Encyclopedia of Small Business; Encyclopedia of Business; ... or for special (holiday) events taking place at a restaurant (1-off opportunities). An example would be getting on the area restaurant placemats (about 9,000 in ...
With the right knowledge and planning, you can successfully open your resort business. Here's our 10 step checklist to help you get started: Develop idea & mission: Clearly define and articulate the nature of your business, including mission, vision, objectives, and values. Plan vision & goals: Set goals for the long-term profitability and ...
The study also provides critical physical planning recommendations for the resort business plan. It is critical that design plans are in line with market needs and expected cash flow. ... the market and financial feasibility of a proposed themed four-season holiday village resort hotel near Mongolia's capital city of Ulaanbaatar. The entire ...
Overall, considering these estimates, a rough investment range to start a mid-range holiday resort business could be between $7.5 million and $22.1 million. However, it's important to conduct a detailed feasibility study and business plan to get a more accurate estimate based on your specific circumstances and goals.
A kitchenette with a hob, oven, fridge freezer, microwave and all the essentials. The open plan living area is the perfect entertaining space, with a wood burner effect electric fire. We also have WiFi with Netflix included in the cost. The lodge has central heating, double glazing and sliding doors. Each lodge can sleep up to 4 guests.
Resort Holiday, Moscow, Russia. 391 likes. Travel Company
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Read our transparency report to learn more. Best Moscow Accommodation on Tripadvisor: Find 129,111 traveler reviews, 115,138 candid photos, and prices for 4,592 hotels in Moscow, Russia.
Host Hotels & Resorts Announces Pricing Of $700 Million Of 5.500% Senior Notes Due 2035, By Host Hotels & Resorts, L.P. Provided by GlobeNewswire Aug 7, 2024 8:30pm