B Y : R I C K Y T H E O D O R E S J U N E 2 0 1 3R O N A L D T I C O A L UHotel Development PlanPT Sumber Alfaria Trijaya
Hotel & PropertyIndustry Climate• International visitor arrivals to Indonesia inthe first nine months of 2012 rose by 5% to5.9 million from 5.6 million visitors duringthe same period of 2011.• Indonesia enjoy sustainable economicgrowth of 5% to 6% since last 3 years• Middle Class in Indonesia reached135million people or 55% from total currentpopulation, growth of 100% since 2009• Accor, on top of their 10,800 roominventory, has signed up 23 managementcontract and 20 hotels will be open within2013• Aston International holding 6,000 roominventory and claim to open 18 hotels in2013 and has just launched new hotel brand“Hotel Harper” to accelerate their mission
Hotel & PropertyIndustry Climate• Santika currently owned & managed 5,600 roominventory and started penetrating Asia Marketwith opening of Amaris Hotel in Singapore• Tauzia has impressed the market with 11 hotelsand almost 2,000 room inventory claim to openanother 30 hotels in next 3 years• No of Rooms 2012 = 57.080, assuming 5%economic growth YOY, projected No of Rooms2022 = 150.000• Jakarta announced as city with highest growth inProperty Industry in the world on 2012 !• With foreign investments in the tourismsector in Indonesia reaching US$7.3billion for the first nine months of2012, compared to US$2.5 billion for thesame period in 2011, Indonesia has nowbecome a destination which provides hoteldevelopers and chains with significantopportunities for growth.
Major PlayerBudget Hotelin Indonesia•There are more than 300 budget hotel in 2013representing 3,050 room•Budget hotel representing only 5% from totalroom supply•Total number of hotels expected to be increaseby 250% within 10 years up to 2022 – this willmainly dominated by increment in budget &middle class hotel•Average Occupancy of budget hotel is 68%while in several area may reach 92%•Average Rate for budget hotel are 400.000 –600.000 at the moment
Smart Budget Hotel located in Major Attraction,Shopping Arcade, Malls or Business District.We are committed to Functional Design,Cleanliness, Comfort, Friendly Service and mostimportantly Unbeatable Rate !Unique SellingPoint :Unbeatable Rate !Require small areaMinimumInvestmentMaximum ROI“Easy” & EfficientOperationOnline ControlNew Concept RetailHotel attached withAlfa Mart / LawsonBrand.OUR BRAND
Total investment 20 Billion100 Rooms – excl Land & ConsultantPay Back Period 3.5 Years !15 sqm standard roomsDouble or twin beds26” LCD TV withInternational & LocalChannelsKing Koil Beds & Pillow100% cottonEn Suites bathroom withshowerIndividual ACIn-Room Safety DepositBoxIDD TelephoneConvenience StoreFree WifiSelf Check in Kiosk24 Hours Security
• B A D A N H U K U M : P T . A L F A H O S P I T A L I T Y A S I A ( A H A ! )• O F F I C E S E T U P ( T A N G S E L / A L A M S U T R A )• R E C R U I T M E N T• H O T E L D E S I G N D E V E L O P M E N T• H O T E L D E V E L O P M E N T P L A N I N M A J O R C I T I E S• S Y S T E M D E V E L O P M E N T ( S O P A N D P M S )• W E B S I T E & E C O M M E R C E D E V E L O P M E N T• M A R K E T I N G T O O L S D E V E L O P M E N T• F R A N C H I S E B U S I N E S S D E V E L O P M E N T• B R A N D L A U N C H I N GWhat’s NEXT ?
Franchisee Franchisor Sharing Experience,Expertise & ClientDatabase Allow individual ownerto learn about thebusiness “Buddy” during criticalprocess Relatively simple tomanage compare toManagementAgreement – less timeconsume Rapid expansion ability With simple & efficientoperation we may doonline controlWhy Franchise ?
Organization Chart Alfa Hospitality Asia – AHA !Level IBenefit : President / CEOSalary by NegotiationOfficial Car & DriverShare PortionHealt InsurancePention PlanPhone AllowanceLaundryLevel II Vice President / COOSalary by NegotiationOfficial CarShare Portion Corp. SecretaryHealt InsurancePention PlanPhone AllowanceLaundryLevel IIIDivision Head Level Dir. of Operation Dir. of HR Dir. of Marketing Dir. of Finance Dir. of ITBenefit : andSalary Range 25mio - 35mio Business DevelopmentYearly performance bonusHealth InsurancePhone 500.000Level IVRegional ChiefEngineer Regional HRM Regional DOS Corp. Regional FC Regional IT ManagerCorporate Manager / StaffLevel Regional Procurement Regional Training Regional DOS Agent Internal AuditorBenefit : Architect E-commerceBusiness DevelopmentA. Salary Range 15mio -25mio Regional PRB. Salary Range 6mio - 12mioC. Salary Range 2.5mio - 5mioHealth InsurancePhone 300.000 / 200.000
Start UpBudgetAllocation6,5 Billion allocationbudget to finance 8Months operation whilehotels are not operatingthus no income yet.This budget includeSales Marketing &Brand LaunchingActivities which will notoccur on 2nd yearTOTALOPERATING FUNDB. SALARIES & RELATED BENEFITS EXPENSES# PAYROLL & RELATED BENEFITS 4,373,857,200TOTAL SALARIES & RELATED 4,373,857,200-C. ADMINISTRATION AND GENERAL -1 ADMINISTRATION AND GENERAL 84,500,000-TOTAL ADMINISTRATION AND GENERAL 84,500,000-D. TRAINING & TRAVELING EXPENSES -1 TRAINING , TRAVELING & ACCOM - PROPERTY 25,000,0002 TRAINING & TRAVELING & ACCOM - CORPORATE SUPPORT TEAM 108,000,000-TOTAL TRAINING &TRAVELING EXPENSES 133,000,000-E. SALES & MARKETING & COLLATERALS -1 BROCHURES, COLLATERAL PHOTOS DEVELOPMENT & AD 1,572,000,000--TOTAL SALES & MARKETING 1,572,000,000-F. OPERATING EQUIPMENT & SUPPLIES -1 CAPITAL EXPENDITURE 178,400,000-2 OFFICE SUPPLIES 9,180,000--TOTAL OPERATING EQUIPMENT & SUPPLIES 187,580,000-G. OTHER COSTS : ---TOTAL OTHER COSTS --H. CONTINGENCY 236,688,620-I. TOTAL PRE-OPENING COST 6,587,625,820DESCRIPTIONS
Typical P&LAlfa Hotel(1st Year)100 Rooms Available70% OccupancyADR 300.000Franchise Fee 5%GOP 64% AverageYearly Owner’s Profit4 billion20 billion reached 0n3,8 years operationTotal365# OF ROOMS 100ROOM AVAILABLE 36,500OCCUPIED ROOMS 25,580OCCUPANCY ( % ) 70.08%AVERAGE ROOM RATE ( RP ) 300,000# OF FOOD COVERS 50,137EXCHANGE RATE US $ TO RP 8,500REVENUESROOMS 7,674,000FOOD & BEVERAGE -TOTAL REVENUES 7,687,046COST OF SALESFOOD & BEVERAGE -TOTAL COST OF SALES 7,827PAYROLL & RELATED EXPENSESROOM 465,377FOOD & BEVERAGE -TOTAL PAYROLL & RELATED EXP. 465,377OTHER EXPENSESROOM 779,345FOOD & BEVERAGE -TOTAL OTHER EXPENSES 779,345DEPART. OPERATING COST & EXP. 1,252,549DEPARTMENT INCOMEROOM 6,429,278FOOD & BEVERAGE -TOTAL DEPTMENT INCOME 6,434,497OVERHEAD DEPARTMENTPAYROLL & RELATEDADM. & GENERAL 476,563SALES & MARKETING 40,846HUMAN RESOURCES -ENGINEERING 140,678TOTAL PAYROLL & RELATED 658,087OTHER EXPENSESADM. & GENERAL 121,705SALES & MARKETING 125,232HUMAN RESOURCES 31,800ENGINEERING 181,080ENERGY COST 736,704TOTAL OTHER EXPENSES 1,196,521TOTAL OVERHEAD DEPARTMENT 1,854,608GROSS OPERATING INCOME 4,579,888OTHER NON OPERATING EXPENSESROYALTY FEES 422,788TOTAL OTHER EXPENSES 422,788GROSS OPERATING PROFIT (GOP) 4,157,101% G O P 54.08%OTHER EXPENSESINCENTIVE FEES -RESERVED FOR FF&E - 3% -TOTAL OTHER EXPENSES -OWNER SHARE PROFIT (OSP) 4,157,101OWNER EXPENSESOWNER INSURANCE - PROPERTY 120,000TOTAL OWNER EXPENSESNET OWNER SHARE PROFIT (NOSP) 4,037,101
P&L AlfaHospitalityAsia – 1st YearNo of Hotels 12Technical Fee 2,5 BRoyalty 3,29 BTotal Revenue 5,79 BLoss (518million)Key Factor :First 5 Hotels areowned & build by AlfaNo of Hotels750,000,000 12.951,250,000,000 21.59500,000,000 8.64- -2,500,000,000 43.18- -3,290,000,000 56.82- -3,290,000,000 56.825,790,000,000 100.004,242,000,000 73.26353,500,000 6.11207,433,800 3.58836,447,000 14.45152,400,000 2.63-5,791,780,800 100.0318,000,000 0.3124,000,000 0.4112,000,000 0.2124,000,000 0.4118,000,000 0.3118,000,000 0.313,000,000 0.0512,000,000 0.2124,000,000 0.4136,000,000 0.6284,000,000 1.456,000,000 0.1018,000,000 0.31- -12,000,000 0.21- -6,000,000 0.103,000,000 0.051,800,000 0.03- -24,000,000 0.4190,000,000 1.5560,000,000 1.046,000,000 0.10499,800,000 8.6315,000,000 0.262,400,000 0.04-17,400,000 0.30(518,980,800) (8.96)-(518,980,800) (8.96)E-commercesOther ExpensesTotal Other ExpensesDEPRECIATION EXPENSESDepreciation Expenses - ComputersDepreciation Expenses - Office EquipmentDepreciation Expenses - VehiclesTotal DEPRECIATION EXPENSESCorporate TaxesNet Profit (Loss)Earning Before Income TaxBank ChargesProvision for Bad DebtLegal and Professional FeeSales & Marketing ExpensesEntertainmentInsuranceRepair and MaintenanceUniform LaundryUtility ChargesDuty StampLicense and PermitEmployee RelationTraining and Employee DevelopmentPrinting and StationaryTelephone and FaxComputer AccesoriesRentalCourier And PostageOffice SuppliesLocal TransportationTravel Expenses - DomesticTravel Expenses - InternationalMedical InsuranceOther Employee BenefitTotal Payroll & Related ExpenseOther ExpensesPayroll & Related ExpenseSalary & WagesBonus / THRJamsostek Co. SharePph 21Total Base Management Fee from HotelRoyalty FeeTotal Incentive Magmnt Fee from HotelTotal OPERATING REVENUERoyalty FeeAlfat Hotel 11 - 12 @ 250.000.000OPERATING REVENUETechnical FeeAlfa Hotel 1 - 5 @ 150.000.000Alfa Hotel 6 - 10 @ 250.000.000TOTAL %DESCRIPTION
P&L AlfaHospitality Asia(2nd Year)No of Hotels 20Technical Fee 1,25 BRoyalty 7,5 BTotal Revenue 8,7 BProfit 1,85 BTotal 20 Hotels is theBreak Even Point forAHA ! – anything above20 will goes directly toprofit !No of Hotels---1,250,000,0001,250,000,000-7,546,000,000-7,546,000,0008,796,000,0004,242,000,000353,500,000207,433,800836,447,000152,400,000-6,370,958,88018,000,00024,000,00012,000,00024,000,00018,000,00018,000,0003,000,00012,000,00024,000,00036,000,00084,000,0006,000,00018,000,000-12,000,000-6,000,0003,000,0001,800,000-24,000,00090,000,00060,000,0006,000,000549,780,00015,000,0002,400,000-17,400,0001,857,861,120-1,857,861,120Earning Before Income TaxCorporate TaxesNet Profit (Loss)Alfa Hotel 13 - 15 @ 250.000.000Depreciation Expenses - VehiclesTotal DEPRECIATION EXPENSESE-commercesOther ExpensesTotal Other ExpensesDEPRECIATION EXPENSESDepreciation Expenses - ComputersDepreciation Expenses - Office EquipmentUtility ChargesDuty StampBank ChargesProvision for Bad DebtLegal and Professional FeeSales & Marketing ExpensesTravel Expenses - InternationalLicense and PermitEntertainmentInsuranceRepair and MaintenanceUniform LaundryComputer AccesoriesRentalCourier And PostageOffice SuppliesLocal TransportationTravel Expenses - DomesticTotal Payroll & Related ExpenseOther ExpensesEmployee RelationTraining and Employee DevelopmentPrinting and StationaryTelephone and FaxSalary & WagesBonus / THRJamsostek Co. SharePph 21Medical InsuranceOther Employee BenefitRoyalty FeeTotal Incentive Magmnt Fee from HotelTotal OPERATING REVENUEPayroll & Related ExpenseAlfa Hotel 1 - 5 @ 150.000.000Alfa Hotel 6 - 10 @ 250.000.000Alfa Hotel 11 - 12 @ 250.000.000Alfa Hotel 15 - 20 @ 250.000.000Total Base Management Fee from HotelRoyalty FeeTOTALOPERATING REVENUETechnical FeeDESCRIPTION
ExpansionPlanBaliJakartaTangerangBekasiSurabayaMalangJogjaSamarindaBalikpapanLampungPalembangPadangMedan50 Hotels within 5 years ?Why not !Utilize Alfa’s Partner Database
W O R K I N G T O G E T H E R W I T H B U S I N E S SO W N E R T O D E V E L O P T H E B U S I N E S S A N DA S S E T S O F T H E C O M P A N YINTRAPRENEUREMPLOYEMENT
President / CEO Vice President / COO Permanent Employment Monthly Salary 100 million net oftax Share 6 % of Monthly GrossRevenue Yearly THR Bonus Yearly Travelling Budget U$10,000 Full coverage Family HealthInsurance Pension Plan Laundry 5pcs per day Company Car & Driver, PremiumSUV (BMW X5 or equivalent) Permanent Employment Monthly Salary 50 million net oftax Share 4 % of Monthly GrossRevenue Yearly THR Bonus Yearly Travelling Budget U$ 8,000 Full coverage Family HealthInsurance Pension Plan Laundry 5pcs per day Company Car, Premium JapaneseSUV (Toyota Harrier orequivalent)Executive Benefit, PT Alfa Hospitality Asia !