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Design a Business plan for a hotel network in Italy
Design a Business plan for a hotel network in Italy
Design a Business plan for a hotel network in Italy
Design a Business plan for a hotel network in Italy
Design a Business plan for a hotel network in Italy
Design a Business plan for a hotel network in Italy
Design a Business plan for a hotel network in Italy
Design a Business plan for a hotel network in Italy
Design a Business plan for a hotel network in Italy
Design a Business plan for a hotel network in Italy
Design a Business plan for a hotel network in Italy
Design a Business plan for a hotel network in Italy
Design a Business plan for a hotel network in Italy
Design a Business plan for a hotel network in Italy
Design a Business plan for a hotel network in Italy
Design a Business plan for a hotel network in Italy
Design a Business plan for a hotel network in Italy
Design a Business plan for a hotel network in Italy
Design a Business plan for a hotel network in Italy
Design a Business plan for a hotel network in Italy
Design a Business plan for a hotel network in Italy
Design a Business plan for a hotel network in Italy
Design a Business plan for a hotel network in Italy
Design a Business plan for a hotel network in Italy
Design a Business plan for a hotel network in Italy
Design a Business plan for a hotel network in Italy
Design a Business plan for a hotel network in Italy
Design a Business plan for a hotel network in Italy
Design a Business plan for a hotel network in Italy
Design a Business plan for a hotel network in Italy
Design a Business plan for a hotel network in Italy
Design a Business plan for a hotel network in Italy
Design a Business plan for a hotel network in Italy
Design a Business plan for a hotel network in Italy
Design a Business plan for a hotel network in Italy
Design a Business plan for a hotel network in Italy
Design a Business plan for a hotel network in Italy
Design a Business plan for a hotel network in Italy
Design a Business plan for a hotel network in Italy
Design a Business plan for a hotel network in Italy
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Design a Business plan for a hotel network in Italy

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  • 1. smarthotels Business Plan - MTM VII - Group 2 1
  • 2. Business Plan - MTM VII - Group 2 2
  • 3.  The Project Slide n. 4 The Product Slide n. 5 The Choice Slide n. 6 The Target Slide n. 7 The Brand smarthotels Slide n. 8 The Logo Slide n. 9 Locations – List of options Slide n.10a) Analytical Framework Slide n.11b) Rejected Locations Slide n.12c) Chosen Locations Slide n.13 Cagliari – Elmas Slide n.14 Cinisello Balsamo Slide n. 22 Mestre Slide n. 31 The 3 Hotels Slide n. 38 Conclusions Slide n. 39 Business Plan - MTM VII - Group 2 3
  • 4.  An International Hotel Chain wants to enter the Italian market with 3 hotels with the same features, representing a brand new product in the existing hotel market. The purpose of the project is to launch a new combination of products and services able to react to the very complex Italian hospitality sector. The added value of the new product lays in simplicity and low fares, together with an essential impeccable service. 12 possible locations have been analyzed. Business Plan - MTM VII - Group 2 4
  • 5. The International Hotel Chain has 3 different products, among which wehad to choose the one that could fit appropriately in the three destinations: Basic Budget Product: ◦ Main target: Business ◦ Services: Buffet breakfast (not included in room price), catering with vending machines, car parking; Standard Budget Product: ◦ Main target: Business ◦ Services: Buffet breakfast (not included in room price), snack bar with vending machines, restaurant (evening opening only), car parking; Integrated Budget Product: ◦ Main target: Business ◦ Services: Breakfast, bar (12 hours opening), restaurant, gym, swimming pool, car parking; Business Plan - MTM VII - Group 2 5
  • 6. As we wanted to introduce an innovative concept, the Basic Budget Product wasthe one who fitted the best in all of the 3 destinations, for a series of reasons: It is a new concept, a good quality accommodation with low price and essential services, that can satisfy business people needs as well as leisure travellers. There’s no such product in the Italian market at the moment, and its strength lays also in that: the aim is to create a new class of hotels, with concrete value for money, where travellers would be willing to stay. The problem in the Italian Hospitality Industry is that a low rate often corresponds to a bad or poor service. This Hotel Chain’s aim is not to reduce services in order to cut costs and reach feasibility, but to provide travellers with essential services, good quality and very competitive prices. The Italian Hospitality Industry is saturated of mid and full service hotels, and those travellers who avoid luxury accommodations never know whether they should pay more to have a poor service, or to get a lower price being sure that the service will not be good. This new Hotel Chain will give an answer to this dilemma:The price will be low, but the service offered will be essential and good for sure. Business Plan - MTM VII - Group 2 6
  • 7.  Being the chosen locations strategic from the point of view of connections with airports, highways and railway stations, we believe that the Hotels will be the perfect accommodation for Business travellers, who always need fast and efficient services but not always are willing to go to a luxury hotel. Considering, however, the proximity of chosen locations to interesting leisure destinations, we think that during high peak season for leisure tourism (that usually coincide with low season for business travels), leisure travellers will be willing to book our Hotels, considering the advangtages of a low price, the proximity to the destination they want to visit and the essentiality of the services we offer, together with the guarantee of a standard and always good product. Business Plan - MTM VII - Group 2 7
  • 8. We decided to name the chain smarthotels.This is a short name, easy to remember and that lead to apositive idea and summarize the main characteristics of ourhotel chain:SimpleModernAffordableRelaxingTrustable Business Plan - MTM VII - Group 2 8
  • 9. smarthotelssmart Business Plan - MTM VII - Group 2 9
  • 10. 12 locations in 10 Italian cities: Ancona – Via Martiri della Resistenza/Via della Ricostruzione Bergamo – Via Como/Via Campagnola Cagliari (Elmas) – Via Sulcitana/Via del Geco Caserta – Via Appia/Via Roma Cinisello Balsamo – Viale Valtellina/Cavalcavia Vulcano Firenze - Via Dè Ginori/Borgo San Lorenzo Firenze – Piazza Ravenna Genova – Via Multedo/Ronchi Genova – Piazza Nicolò Barabino Mestre – Corso del Popolo/Rampa Cavalcavia Monza – Via Nazario Sauro/Via San Rocco Verona – Via G. Fedrigoni/Via Basso Acquar Business Plan - MTM VII - Group 2 10
  • 11.  Parameters for the evaluation: ◦ Geographical position; ◦ Distances from main attractions; ◦ Tourism flows and trends; ◦ Socio-economic background; ◦ Business trends and extended context; ◦ Target audience; ◦ Potential development of the area (infrastructures); ◦ Possible profitability; ◦ Current receptive market; ◦ Existing competitors (hotels within 10 km distance and 50 rooms min.); Business Plan - MTM VII - Group 2 11
  • 12. City Address Synthesis for discard The business of the city is based on ship Via Martiri della Resistenza/ViaAncona building and steel, which are declining markets. della Ricostruzione Bergamo has a growing industry and someBergamo Via Como/Via Campagnola competitors have already entered the market. Business tourism is not enough developed inCaserta Via Appia/Via Roma Caserta yet. Via Dè Ginori/Borgo San Lorenzo Downtown Florence is mainly a leisureFirenze destination, with few business tourists. and Piazza Ravenna Via Multedo/Ronchi and Piazza The city bases its business on declining sectorsGenova (mainly ship building). Nicolò Barabino Monza’s tourism is not growing enough to fill inMonza Via Nazario Sauro/Via San Rocco a new hotel. Verona is already saturated as businessVerona Via G. Fedrigoni/Via Basso Acquar destination (MICE in particular). Business Plan - MTM VII - Group 2 12
  • 13. City Address Synthesis of choice • Strategic position: close to the airport Elmas and to important and growing businesses (Saras S.p.A.);Cagliari • City is growing from a tourism point of view; Via Sulcitana/ • Hotel competitors have high prices: we’ll compete(Elmas) Via del Geco with a low price product; • Elmas Airport is growing in importance; • Target: business and leisure, all year round; • Strategic position: about 10 km northeast of Milan downtown, near Rho Fiera, Formula One circuit in Monza, San Siro Soccer stadiumCinisello • A rich and diverse fabric of enterprises (4,700) Viale Valtellina/ • Excellent connections and infrastractures: ringroads,Balsamo Cavalcavia Vulcano highways, airports (Linate, Orio al Serio and Malpensa), underground, railway station; • Target: mainly business, but also leisure visitors to Milan who can’t afford to stay in the city; • Strategic location to connect Italy with Eastern and Northern Europe; Corso del Popolo/ • Excellent connections and infrastractures: nearby theMestre Rampa Cavalcavia Venice airport, the railway station, Mestre ringroad and highways; • Target: business and leisure Business Plan - MTM VII - Group 2 13
  • 14. The location, between Via Sulcitana and Via del Geco, in Elmas (CagliariProvince) is strategic, very close to the airport and to state highway, and just9km far frow downtown Cagliari. Legend: Location Infrastructures Airport Business Plan - MTM VII - Group 2 14
  • 15. Arrivals trend 2009-2010 Overnights trend 2009-2010 140,000 900,000 800,000 120,000 700,000 100,000 600,000 80,000 500,000Source: Cagliari Province 60,000 400,000 2010 2010 300,000 40,000 2009 2009 200,000 20,000 100,000 0 0 ARRIVALS: decrese in OVERNIGHTS: huge decrease in April, May, August and January, February and April, increase December, increase in March and in November and December; October; Business Plan - MTM VII - Group 2 15
  • 16. SOURCE:Sogaer S.p.A.Business Plan - MTM VII - Group 2 16
  • 17. Variation of the population 2003- 2010 9,112 9,200 8,947 9,000 8,852 8,800 8,974 8,934Residents 8,600 8,639 8,475 8,400 8,271 8,200 8,000 7,800 2003 2004 2005 2006 2007 2008 2009 2010 Year Source: ISTAT Business Plan - MTM VII - Group 2 17
  • 18. Number of Name Industry Address Turnover Employees Saras Spa Oil industry Sarroch 2000 5.3 bn €Tiscali Italia Spa Telecommunication Sa Illetta 744 316 mio € Via A. Diaz, Abbanoa Spa Water Purification - 164 mio € 79 Business Plan - MTM VII - Group 2 18
  • 19. Great effort of Cagliari to become a tourist destination at a relevant International level, creating important projects for the city: Expansion of the “MetroCagliari” to create new lines (among which the creation of a line that connect Cagliari’s municiplaities with the airport Elmas, and this last with the Central Station,metro and Port of Cagliari). New exhibition centre, a new archaelogical park of Tuvixeddu, new Univerisity campus of Viale la Playa with theaters, libraries and sports centre in it. Terminal for Cruise Ships at the Ichnusa Port: within the year 2012. Redesign of the waterfront at Maritime Station and Darsena by the end of 2011. Creation of a platform for general aviation (the terminal is already ready and will be open soon) and enlargment of the platform for commercial aviation, and creation of a new area for cargo.  Cagliari will not only be a leisure and seasonal destination, but a all year round business centre. Business Plan - MTM VII - Group 2 19
  • 20. Number Price Price Hotel Name Stars of Weekday Weekend RoomsT Hotel CagliariVia dei Giudicati, 66 **** 207 € 99 € 159Italia HotelVia Sardegna, 31 *** 108 € 77 € 77Holiday Inn CagliariViale Umberto Ticca, 23 **** 92 € 104 € 124Quadrifoglio HotelVia Giuseppe Peretti, 10 *** 87 € 90 € 90Grillo Hotel **** 84 € 84 € 94Via Carmine, 132Sardegna Hotel **** 84 € 120 € 120Via Lunigiana, 50 Business Plan - MTM VII - Group 2 20
  • 21. The location, in a key junction of highways, is in the middle of a veryindustrialized area, within a reasonable distance from Milan citycentre, the trade fair in Rho, Milan Linate airport and the nearby area ofBrianza, which has both an industrial and leisure attractiveness.Legend: Location Airports Points of interest Business Plan - MTM VII - Group 2 21
  • 22.  Main Railway Stations connected by lines 710 and 711:  Sesto San Giovanni, Lissone, Milano Greco Pirelli and Milan Central Railway Station Highways:  A4 Milan – Venice  A51 Milan East Ringroad  A52 Milan North Ringroad  Via Nuova Valassina  Via Valtellina MainMetrotramway (Tram line number 31): After 4 years’ wait, the new line is finally working: 25 stops in 8.5 km, from Viale Zara in Milan, through the future M5 Stop, directly to the commercial axis of Cinisello Balsamo; it will connect Cinisello Balsamo to many imortant points of interest: Bicocca University, Arcimboldi Theater, Parco Nord, Villa Ghirlanda and the Photography Museum. Airports:  Linate (25 Km)  Orio al Serio (41 Km)  Malpensa (53 km) Business Plan - MTM VII - Group 2 22
  • 23. RINGROADS NUMBER OF VEHICLESNORTH AREA•SP44 bis Milano - Lentate (via nazionale dei giovi)•SP ex SS 35 nord (Milano-Meda) 20.000 -110.000 vehicles per day•SP 9 Valassina:• SP 5 of “ Villa di Monza” (extension of viale Fulvio Testi)EAST AREA•sp 14 Rivoltana•sp ex ss 415 Paullese : 60.000 -70.000 vehicles per dayRingroad East A51 between San Donato and Cologno Monzese 140.000-160.000 vehicles HIGHWAYS NUMBER OF VEHICLES•Barrier Milano-Nord Autostrada A8-A9•Barrier Milano-Est Autostrada A4 ramo Venezia 130.000 vehicles per dayStretch with more traffic:Between the crossroad A8/A9 and the crossroad A8/A50 in the 190.000 vehiclesLainate and Rho municipalities Business Plan - MTM VII - Group 2 23
  • 24. Arrivals Overnights 2005 - 2010 2005 - 20106,000,000 12,000,0005,500,000 11,000,0005,000,000 10,000,0004,500,0004,000,000 9,000,000 2005 2006 2007 2008 2009 2010 2005 2006 2007 2008 2009 2010 % on Provinces’ % on Province’s 2010 Arrivals Overnights Arrivals OvernightsCINISELLOBALSAMO 55,953 113,496 3.27 % 3.58 % Source: Osservatorio Turismo – Settore Turismo Provincia di Milano Business Plan - MTM VII - Group 2 24
  • 25. Variation of the population 2003-2010 74.500 74.153 73.976 73.935 74.000 73.659 73.500Residents 73.772 73.683 73.000 73.216 72.852 72.500 72.000 2003 2004 2005 2006 2007 2008 2009 2010 Year Source: ISTAT Business Plan - MTM VII - Group 2 25
  • 26. Number of Name Industry Address Turnover EmployeesDavide Via Franco SacchettiCampari Beverage 20 - Sesto San 2100 1 bn €Milano Spa GiovanniSony Italia Via Galilei Galileo 40 Electronics 250 564 mio €SpaEpson Italia Information Via M. Viganò De 347,5 mio € 180Spa Technology Vizzi, 93/95 Business Plan - MTM VII - Group 2 26
  • 27.  Creation of a new Municipality building that can put together all the offices that are currently displaced in different locations. To finance this project, the Municipality decided to sell out an area in the city centre through a redevelopment competition. Cinisello Agenda 21: new projects to make the city more sustainable New parking areas for the Expo 2015 Creation of the M5 underground line, that can connect Cinisello Balsamo to other strategic ties of Milan and downtown Business Plan - MTM VII - Group 2 27
  • 28. Hotel Name Number of Price Price Stars Rooms Weekday WeekendNH ConcordiaViale Edison (Via Lama), 20099 Sesto San Giovanni **** 155 €119 €73,95CALTAHOTEL Grand Hotel Barone di SassjVia Padovani 38, 20099 Sesto San Giovanni (MI) **** 145 €130 €80Holiday Inn Milan Nord-ZaraVia Cornaggia, 20092 Cinisello Balsamo, Italia **** 128 €109 €69Hotel Ora City Milano BressoVia XXV Aprile 49/51, 20091 Bresso (MI) **** 106 €95 €95Best Western Premier Hotel Monza e Brianza PalaceViale Brianza 160/166 , 20092 Cinisello Balsamo **** 105 €116 €91 Hotel Abacus Via Monte Grappa 39, 20099 Sesto San Giovanni **** 94 €90 €55 Best Western Falck Village Hotel Viale Italia 598, 20099 Sesto San Giovanni **** 80 €95 €75 As Hotel Monza Viale Lombardia, 76/78, 20052 Monza, Italia **** 66 €77,27 €86,26 Business Plan - MTM VII - Group 2 28
  • 29. The location, close to the highways and within walking distance fromMestre railway station, allows to reach Venice and the Airport in fewminutes. Mestre’s city centre is only few hundred metres away. Legend: Location Airports Points of interest Business Plan - MTM VII - Group 2 29
  • 30. January-April 2010 % January-April 2011 % Var. % 10-11 Arrivals Presences Arrivals Presences Arrivals Presences Arrivals Presences Arrivals Presences Old Town 555.208 1.560.093 63% 72% 669.526 1.737.731 63% 70% 20,6% 11,4% Centre Lido 30.200 81.022 3% 4% 42.309 110.577 4% 4% 40,1% 36,5% Mestre- 289.591 536.213 33% 25% 344.022 620.009 33% 25% 18,8% 15,6% MargheraTotal Venice 874.999 2.177.328 100% 100% 1.055.857 2.468.317 100% 100% 20,7% 13,4%Municipality Source: Venice Tourism Board Statistics Dept. Business Plan - MTM VII - Group 2 30
  • 31. Passengers departures Passengers arrivals3,700,000 3,700,000 3,520,207 3,342,777 3,512,292 3,346,2933,500,000 3,500,0003,300,000 3,300,000 3,424,436 3,141,601 3,430,040 3,409,207 3,423,7823,100,000 3,100,000 3,155,6452,900,000 2,900,0002,700,000 2,894,841 2,887,254 2,700,0002,500,000 2,500,000 2005 2006 2007 2008 2009 2010 2005 2006 2007 2008 2009 2010 Source: SAVE Spa Business Plan - MTM VII - Group 2 31
  • 32. Variation in number of inhabitants 2001-2011* 94,000 89,506 92,000 88,193 89,676 90,000 88,027 88,000 88,197 86,000 84,000 82,000 80,000 2001 2005 2007 2009 2011 * Population of Mestre-Carpenedo Municipality Source: Venice Tourism Board Statistics Dept. As for number of inhabitants, Mestre ranks 18° among Italian cities, and is the 3° city in the Veneto Region. Business Plan - MTM VII - Group 2 32
  • 33. Number of Turnover Name Industry Address Employees (Euro) Cantiere Navale Via dell’ Azoto 8500 3.26 bn € Marghera Shipbuilding 6B, Marghera(Fincantieri) V. Treviso 99, Aprilia Motorbikes - 1.2 bn € Scorzè San Via Kennedy 65, Mineral Water 2500 837 mio €Benedetto Scorzè Business Plan - MTM VII - Group 2 33
  • 34. Price Price Name Stars Rooms Weekday WeekendDelfinoCorso del Popolo, 211 **** 126 100 € 80 €VeneziaVia Teatro Vecchio, 5 *** 120 93 € 83 €AntonyVia Orlando, 182 **** 114 86 € 86 €Best Western Hotel BolognaVia Piave, 214 **** 109 129 € 129 €CentralePiazzale Donatori di Sangue, 14 **** 99 75 € 75 €AmbasciatoriCorso del Popolo, 221 **** 94 99 € 89 €EliteVia Forte Marghera, 119 **** 85 94 € 94 €Hilton Garden InnVia Orlando, 1 **** 82 175 € 175 €TritoneViale Stazione, 16 **** 60 95 € 101 €PlazaViale Stazione, 36 **** 51 149 € 129 €PresidentVia Fonte Marghera, 99/a **** 51 95 € 95 €MichelangeloVia Fonte Marghera, 69 **** 50 100 € 100 € Business Plan - MTM VII - Group 2 34
  • 35.  Tram cittadino (Urban Tramway) Passante of Mestre (Suburban Train) Surface Metro Line Sublagunare (Under the Lagoon Line) New Hospital of Mestre Parchi di Mestre (Mestre’s Parks) Business Plan - MTM VII - Group 2 35
  • 36. Number of Average PriceLocation Reasons Rooms per Room • Medium – low occupancy rate in the city,Cagliari 80 € 60 only 80 rooms. • Average price lower than competitors’. • Increasing arrivals, good occupancy: 100Cinisello rooms. 100 € 60 • Price is lower than the average, but thereBalsamo are only 4 stars hotels in the area. • Increasingly and on going demand:120 rooms.Mestre 120 € 60 • Price is lower than average, because all hotels are very expensive because of their location. Business Plan - MTM VII - Group 2 36
  • 37. Cagliari 2011 2012 2013Number of rooms 80 80 80Average daily rate ADR 60 62 64(VAT incl.)Occupancy 60% 68% 75%Number of employees 9 11 12Room Revenues (VAT excl.) € 955.636 € 1.119.156 € 1.265.223F&B Revenues (VAT excl.) € 143.345 € 162.458 € 182.915Total Revenues (VAT excl.) € 1.098.982 € 1.281.615 € 1.448.138Total Costs € 706.338 € 699.784 € 767.051EBITDAR € 392.644 € 581.830 € 681.086EBITDA € 112.644 € 294.830 € 386.911PBT € 46.644 € 228.830 € 320.911% PBT on Total Revenues 4% 18% 22%Profit Margin -1% 11% 15%Total Investment € 6.400.000ROI -0,20% 2,22% 3,38% Business Plan - MTM VII - Group 2 37
  • 38. Cinisello Balsamo 2011 2012 2013Number of rooms 100 100 100Average daily rate ADR 62 64 65(VAT incl.)Occupancy 65% 70% 75%Number of employees 10 11 12Room Revenues (VAT excl.) € 1.337.227 € 1.476.093 € 1.621.067F&B Revenues (VAT excl.) € 194.114 € 209.045 € 229.577Total Revenues (VAT excl.) € 1.531.341 € 1.685.139 € 1.850.643Total Costs € 917.683 € 851.084 € 926.397EBITDAR € 613.658 € 834.054 € 924.247EBITDA € 213.658 € 424.054 € 503.997PBT € 131.158 € 341.554 € 421.497% PBT on Total Revenues 9% 20% 23%Profit Margin 3% 13% 15%Total Investment € 8.000.000,00ROI 0,52% 2,79% 3,59% Business Plan - MTM VII - Group 2 38
  • 39. Mestre 2011 2012 2013Number of rooms 120 120 120Average daily rate ADR (VAT 62 64 65incl.)Occupancy 65% 70% 75%Number of employees 11 12 12Room Revenues (VAT excl.) € 1.604.673 € 1.771.312 € 1.945.280F&B Revenues (VAT excl.) € 279.524 € 301.025 € 330.590Total Revenues (VAT excl.) € 1.884.196 € 2.072.337 € 2.275.870Total Costs € 1.065.811 € 1.002.949 € 1.060.684EBITDAR € 818.386 € 1.069.388 € 1.215.187EBITDA € 278.386 € 515.888 € 647.849PBT € 179.385,65 € 416.888,32 € 548.849,22% PBT on Total Revenues 10% 20% 24%Profit Margin 4% 13% 17%Total Investment € 9.600.000,00ROI 0,70% 2,83% 3,96% Business Plan - MTM VII - Group 2 39
  • 40. Thank forYour at ention! Business Plan - MTM VII - Group 2 40

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