Happy Arty Hotel Barcelona

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Happy Arty Hotel Barcelona is a business plan about a 4 stars lifestyle hotel project based on alternative music and urban art. The plan covers all aspects from lifestyle definition, corporate strategy, segmentation and target definition, positioning and marketing mix, and financial plan.

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Happy Arty Hotel Barcelona

  1. 1. Candidate: Benjamin CANZANO Tutor: Iris Hillier
  2. 2. Hotel Authentic Lifestyle Emotion Experience Art Fun Musique Soul Creativity Social Culture Unique Environment Local
  3. 3. INDEX Company overview & strategy Business environment analysis Marketing plan Financial plan Implementation
  4. 4. COMPANY OVERVIEW Lifestyle Hotel 4 Stars 90 Rooms Dedicated to alternative music and urban art Retro-design atmosphere Company overview & strategy Business environment analysis Marketing plan Financial plan Implementation
  5. 5. PROJECT LEADER BACKGROUND Degree in Business Science Master Degree in Hospitality Management Experience in MICE sector and Interior Design Founder and manager of The Royal Racer Company overview & strategy Business environment analysis Marketing plan Financial plan Implementation
  6. 6. LIFESTYLE Way of living of individuals, families & societies Expressed in both work and leisure behaviors Affect the allocation of incomes Reflects people self-image Different from « way of life » Company overview & strategy Business environment analysis Marketing plan Financial plan Implementation
  7. 7. LIFESTYLE & BOUTIQUE HOTELS High attention to details Distinct qualities Distinctive design, style & atmosohere On-site F&B Uniqueness Company overview & strategy Business environment analysis Marketing plan Financial plan Implementation
  8. 8. LIFESTYLE VS. BOUTIQUE HOTELS Lifestyle Hotels • Living elements and activities • Functional design • Personally meaningful experience • Niche market • 100 to 150 rooms Boutique Hotels • Intimate, luxurious & upscale • Particular clientele • Notion of charm • 60 rooms max Company overview & strategy Business environment analysis Marketing plan Financial plan Implementation
  9. 9. KEY COMPONENTS OF LIFESTYLE HOTELS •Consistent corporate strategy •Accurate segmentation and targeting •Experience •Emotion •Design •Personalized service •F&B Primary •Locality •Merchandising •Events & happenings Secondary Company overview & strategy Business environment analysis Marketing plan Financial plan Implementation
  10. 10. OBJECTIVES Customer satisfaction of 90% within the 1st year Occupation of 80% within 3 years Top 20 on TripAdvisor within 2 years Certified by the EU Ecolabel for Tourists Accommodations Local objectives • 100% of local artisans and artists involved in the design • 70% of local food • 60% of local suppliers • 60% of local employees and 50% of local artists on events Company overview & strategy Business environment analysis Marketing plan Financial plan Implementation
  11. 11. VISION & MISSION Company overview & strategy Business environment analysis Marketing plan Financial plan Implementation VISION Happy Arty Hotel wants to be recognized as the number 1 brand in Barcelona to live a lifestyle experience based on art, music and social mixture. MISSION At Happy Arty Hotel Barcelona we offer our guests an authentic, local-oriented retro-design hotel experience where everything is dedicated to create an outstanding musical and artistic journey to finally exceed our customer’s expectations so that they will love to come back.
  12. 12. CORE VALUES Authenticity Creativity Commited to our community Environment friendly Innovation Company overview & strategy Business environment analysis Marketing plan Financial plan Implementation
  13. 13. GENERAL OVERVIEW OF BARCELONA Ranked 5th best destination in the world by TripAdvisor Seaside city Well developed transportation network 4th European city for international arrivals Major events Dominated by 4 & 5 stars hotels, big players Company overview & strategy Business environment analysis Marketing plan Financial plan Implementation
  14. 14. PESTLE ANALYSIS Company overview & strategy Business environment analysis Marketing plan Financial plan Implementation 0 1 2 3 4 5 6 7 8 Political Economic Social Technological Legal Environmental PESTLE
  15. 15. 5 FORCES ANALYSIS Company overview & strategy Business environment analysis Marketing plan Financial plan Implementation 0 1 2 3 4 5 6 7 8 9 Buyer Power Supplier Power New entrantsSubstitutes Rivalry 5 FORCES
  16. 16. ANALYSIS OF THE COMPETITION 160 4 & 5 stars hotels in Barcelona 12 projects in the 3 coming years ADR = 115€ to 190€ in 2011 RevPAR = 85€ to 150€ in 2011 4 Lifestyle « like » hotels • Casa Camper • Grand Hotel Central • Hotel OMM • Hotel W Company overview & strategy Business environment analysis Marketing plan Financial plan Implementation
  17. 17. COMPETITOR’S VALUE CURVE Company overview & strategy Business environment analysis Marketing plan Financial plan Implementation 0 1 2 3 4 5 6 7 8 9 10 Competitors' Value Curves Casa Camper Grand Hotel Central Hotel Omm Hotel W
  18. 18. INTERNAL ANALYSIS – VALUE CHAIN Company overview & strategy Business environment analysis Marketing plan Financial plan Implementation Inbound Logistic Operations Outbound Logistic Marketing & Sales Service Artistic operations People Management Administration IT Management
  19. 19. INTERNAL ANALYSIS – ORGANIZATION CHART Company overview & strategy Business environment analysis Marketing plan Financial plan Implementation Artistic Director Finance Revenue Marketing & Sales F&B People Management
  20. 20. MARKET RESEARCH Company overview & strategy Business environment analysis Marketing plan Financial plan Implementation 7.4 Million tourists in 2011 in Barcelona 15.5 Million overnights – Average 2.1 nights / stay Museums and exhibition centers = 13 million visitors in 2011 Architecture, culture and enterteinement = top 5 reasons for coming Low seasonality – April to October = 68% of total demand 2011 2012(Forecast) 2013(Forecast) Occupancy 70.7 % 73.7 % 75.7 % ADR 113.9 € 116.85 € 115.85 € RevPAR 80.56 € 86.13 € 87.32 €
  21. 21. DEMOGRAPHIC SEGMENTATION Company overview & strategy Business environment analysis Marketing plan Financial plan Implementation 50% 42% 8% Purpose of visit 2011 Leisure Business Other Source: Tourisme Barcelona
  22. 22. DEMOGRAPHIC SEGMENTATION Company overview & strategy Business environment analysis Marketing plan Financial plan Implementation 24% 51% 8% 17% Region of origin 2011 Spain Europe USA Rest of the world Source: Tourisme Barcelona
  23. 23. DEMOGRAPHIC SEGMENTATION Company overview & strategy Business environment analysis Marketing plan Financial plan Implementation 0.2 3.9 19.3 36.3 28.8 11.5 15-17 yo 18-24 yo 25-34 yo 35-44 yo 45-54 yo <55 yo 0 10 20 30 40 Visitors' Age 2011 (%) Source: Tourisme Barcelona
  24. 24. DEMOGRAPHIC SEGMENTATION Company overview & strategy Business environment analysis Marketing plan Financial plan Implementation 41.6 26.2 16.4 10.1 9.7 1.3 Couple Alone Colleagues Family Friends Others 0 10 20 30 40 50 Acompanying Person 2011 (%) Source: Tourisme Barcelona
  25. 25. PSYCHOGRAPHIC SEGMENTATION – VALS-2 Company overview & strategy Business environment analysis Marketing plan Financial plan Implementation
  26. 26. PSYCHOGRAPHIC SEGMENTATION – VALS-2 Company overview & strategy Business environment analysis Marketing plan Financial plan Implementation Segment Lifestyle characteristics Psychological characteristics Consumer characteristics Innovators Successful, sophisticated Value personal growth Wide intellectual interests Varied leisure Well informed, concerned with social issues Highly social Politically active Optimistic Self-confident Involved Outgoing Growth oriented Leader Enjoy the “finer things” Receptive to new products, technologies Frequent readers Light TV viewers Experiencers Like the new, offbeat and risky Like socializing and sports Concerned about image Unconforming Politically apathetic Extraverted Unconventional Active Impetuous Energetic Enthusiastic Impulsive Follow fashion Spend income on socializing Buy on impulse Attend to advertising Listen to music
  27. 27. PSYCHOGRAPHIC SEGMENTATION – MBTI Company overview & strategy Business environment analysis Marketing plan Financial plan Implementation Measure psychological preferences on how people perceive the world and make decisions. Focuses on 4 dimensions resulting in 16 psychological types • Introversion vs. Extroversion • Sensing vs. Intuition • Thinking vs.Feeling • Judging vs. Perceiving 1 Segment = ENFP Extroverted – Intuitive – Feeling – Perceiving • Charismatic, imaginative, warm with others, need attentions • Seek harmony • Optimistic • Journalist, comedian, marketing or advertising consultant, musician or photographer
  28. 28. PSYCHOGRAPHIC SEGMENTATION – FLASHPACKERS & GLAMPACKERS Company overview & strategy Business environment analysis Marketing plan Financial plan Implementation Older generation of backpackers – 25 to 40 years old High education and income Looking for experience Less time – shorter trips Variety of accommodations More organized Glampackers • Oldest group with the highest income • Travel in style • Sensitive to culture
  29. 29. BENCHMARKING Company overview & strategy Business environment analysis Marketing plan Financial plan Implementation
  30. 30. TARGET DEFINITION Company overview & strategy Business environment analysis Marketing plan Financial plan Implementation Leisure travelers Between 25 and 45 years old Income higher than 50 000€ Mainly from Europe & USA Travel alone, in couple, with friends or family Have creative jobs
  31. 31. TARGET DEFINITION Company overview & strategy Business environment analysis Marketing plan Financial plan Implementation Seeking for new experiences Socializing Technologically connected Care about self-image Optimistic Environmentaly aware
  32. 32. POSITIONING Company overview & strategy Business environment analysis Marketing plan Financial plan Implementation We do not consider ourselves as a hotel brand but as a lifestyle brand
  33. 33. COMPETITIVE ADVANTAGE Company overview & strategy Business environment analysis Marketing plan Financial plan Implementation Precise target Consistent strategy Set-up new rules in the industry Create a new value curve
  34. 34. VALUE CURVE Company overview & strategy Business environment analysis Marketing plan Financial plan Implementation 0 1 2 3 4 5 6 7 8 9 Happy Arty Value Curve Happy Arty Hotel
  35. 35. PRODUCT Company overview & strategy Business environment analysis Marketing plan Financial plan Implementation 4 Stars Hotel Located in El Raval or El Born Retro-design by Sandra Tarruella Focus on alternative music and urban art
  36. 36. PRODUCT Company overview & strategy Business environment analysis Marketing plan Financial plan Implementation 80 rooms •5 Bunk-bed rooms •5 Single rooms •60 Standard Double Rooms •5 Superior Rooms •4 Suites •1 Large Suite 1 Bar-restaurant / Event venue with terrace 3 Meeting rooms 2 Retail area: 1 pop-up store & 1 merchandising store + 1 Barber Shop Lobby = most important part of the hotel
  37. 37. PRICING Company overview & strategy Business environment analysis Marketing plan Financial plan Implementation •BAR Rate: room only basis, refundable 24h prior to arrival •Non-refundable rate (BAR -10%): room only basis •Early-bird rate (BAR -20%): room only basis, non- refundable, between 45 to 30 days prior arrival or up to 50% occupancy •Rack rate Pricing Policy KPIs KPIs 1st Year 2nd Year 3rd Year Occ (%) 68% 73% 77% ADR (€) 110€ 113€ 116€ RevPAR (€) 74,8€ 82,5€ 89€
  38. 38. PRICING Company overview & strategy Business environment analysis Marketing plan Financial plan Implementation • SONAR Package: To be booked 60 days prior to the festival, breakfast included, tickets and shuttle to the festival. • Love’n Roll Package: 2 nights in double room or superior, bottle of Champagne, breakfast included, 1 dinner at the restaurant. Packages • Cash • Credit card • Invoice • Mobile • PayPal Paying Methods
  39. 39. DISTRIBUTION Company overview & strategy Business environment analysis Marketing plan Financial plan Implementation SALES Direct (15%) Online (8%) Offline (1%) Corporate Agreements (6%) Indirect (85%) OTAs (60%) Travel Agencies (10%) TOs (10%) Others (5%)
  40. 40. DISTRIBUTION Company overview & strategy Business environment analysis Marketing plan Financial plan Implementation • Parity ratePolicy • With club, events promoters, exhibition centers to accommodate their artists • With marketing, advertising or web- based companies Corporate agreements
  41. 41. PROMOTION Company overview & strategy Business environment analysis Marketing plan Financial plan Implementation Social Medias • Community manager • Facebook & Twitter • Youtube • Soundcloud & Spotify • In-house blog • Active survey PR • PR events • Press release
  42. 42. PROMOTION Company overview & strategy Business environment analysis Marketing plan Financial plan Implementation Events • Attract both local and other hotels customers • Enhance positive word of mouth Merchandising • Sold at the hotel shop and online • Spread the brand image after guest stays
  43. 43. PEOPLE – SELECTION PROCESS Company overview & strategy Business environment analysis Marketing plan Financial plan Implementation Aligned with our strategy & target We value attitude, behaviors, cultural interest and style first • Staff in direct contact with customers & management position: selection based on cultural references • Back-office, administrative, technical positions: selection based on skills and knowledge
  44. 44. PEOPLE – TRAINING Company overview & strategy Business environment analysis Marketing plan Financial plan Implementation Be Happy Happy WELCOME Happy SKILLS Happy COM Happy MENU Happy UPDATES Happy SURVEY
  45. 45. PEOPLE – TRAINING Company overview & strategy Business environment analysis Marketing plan Financial plan Implementation • 2-days orientation program for new recruits • Focuses on company’s mission, vision, values and basic proceduresHappy WELCOME • Dedicated to new or promoted employees • Focuses on technical skills, procedures and quality standardsHappy SKILLS • Interpersonal / inter-department program • Focuses on the improvement of communication skillsHappy COM • Catalogue of various training programs • Designed with managers to answer specific needsHappy MENU • Organization, market or industry changes anticipating programHappy UPDATES • Monitoring program • 360° procedure involving People Department, managers and employeesHappy SURVEY
  46. 46. PROCESS – OPERATIONAL BEST PRACTICES Company overview & strategy Business environment analysis Marketing plan Financial plan Implementation Environment • Waste management • Recycling bins • 75% sustainable materials • Local food producers • Water recycling system Customer Service • In-room vinyl selection according to customer’s taste • Full fridges on every floor • Immediate feedback with tablet in key areas of the hotel or mobile app
  47. 47. PHYSICAL EVIDENCES Company overview & strategy Business environment analysis Marketing plan Financial plan Implementation Design Instrument in rooms: guitare, vinyl player, piano Merchandising Amenities Lifestyle magazines and books in rooms
  48. 48. PHYSICAL EVIDENCES Company overview & strategy Business environment analysis Marketing plan Financial plan Implementation
  49. 49. PARTNERSHIPS Company overview & strategy Business environment analysis Marketing plan Financial plan Implementation Local artists and brands for merchandising collaboration International brands for the pop-up store F&B Amenities Festival and events promoters
  50. 50. PARTNERSHIPS Company overview & strategy Business environment analysis Marketing plan Financial plan Implementation
  51. 51. BUSINESS MODEL Company overview & strategy Business environment analysis Marketing plan Financial plan Implementation • Happpy Arty Hotel is a “Sociedad Limitada” • Based in Spain • Benjamin Canzano is its legal representant Legal Form • HAH is a hotel operator • Operating under lease agreement Business Model
  52. 52. BUSINESS PARTNERS Company overview & strategy Business environment analysis Marketing plan Financial plan Implementation • Interested in investing in a new type of hotel operation • Sharing the same vision and culture • Long-term business relationship Shareholders • Interested in buy and lease-back operation • Willing to invest 12 to 15 million € in and renovate a prime location in Barcelona City Center • Ready for long-term investment and to work on future projects Real Estate Investors
  53. 53. LEASE AGREEMENT Company overview & strategy Business environment analysis Marketing plan Financial plan Implementation 25 years contract Fixed rent (800 000€ / year) + variable (7% on net income) Investor responsible for renovation costs Operator responsible for refurbishment costs
  54. 54. START-UP COSTS Company overview & strategy Business environment analysis Marketing plan Financial plan Implementation Element Cost Rent 800 000€ Refurbishement 800 000€ Machinery & IT 200 000€ Adminstrative 50 000€ Initial stock 100 000€ Working capital need 400 000€ Total 2 350 000€
  55. 55. P&L Company overview & strategy Business environment analysis Marketing plan Financial plan Implementation 1st year 2nd year 3rd year Revenues Rooms 2 457 180 2 726 550 2 923 650 F&B Sales 737 154 817 965 877 095 Merchandising 294 862 327 186 350 838 Pop-up store rent 44 229 49 078 52 626 Meeting rooms 36 858 40 898 43 855 Barber shop 24 572 27 266 29 237 TOTAL 3 594 854 3 988 943 4 277 300 Costs Personnel 1 078 456 1 196 683 1 283 190 Food & Beverage 179 743 199 447 213 865 Cost of good sold 98 287 109 062 116 946 TOTAL 1 356 486 1 505 192 1 614 001 Other Costs 2 030 810 2 152 583 2 246 507 EBIT 207 558 331 168 416 792 Financial expenses 215 691 239 337 256 638 EBT -8 133 91 831 160 154 Income taxes 0 22 958 40 038 NET INCOME -8 133 68 873 120 115
  56. 56. CASHFLOW Company overview & strategy Business environment analysis Marketing plan Financial plan Implementation 2nd year 3rd year Cash and banks - beginnig balance 1 222 098 1 241 677 Cashflow 19 579 63 043 Cash and banks - final balance 1 241 677 1 304 720
  57. 57. ROI Company overview & strategy Business environment analysis Marketing plan Financial plan Implementation Dividend starting 4th year ROI expected within 10 years
  58. 58. IMPLEMENTATION PLAN Company overview & strategy Business environment analysis Marketing plan Financial plan Implementation 1 Month Company Creation 3 Months Investors Research Real Estate Research 3 Months Administrative Tasks 7 Months Renovation work Supply research Training 1 Month Pre-opening Opening Total 15 Months
  59. 59. THANK YOU

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