Holiday Inn Express Sales Opportunity and Offer


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Hypothetical Sales Opportunity and Offer for Holiday Inn Express

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Holiday Inn Express Sales Opportunity and Offer

  1. 1. Opportunity Assessment : Geotility<br />Presented By: <br />FilipVukadinovic<br />Jason Fielding-TweedieKa Yee Goretti NgLei Yang<br />
  2. 2. Agenda<br />
  3. 3. Holiday Inn Express Hotel & Suites RIVERPORT-RICHMOND <br />10688 No.6 RD, Richmond, BC V6W 1F7 <br />Hotel Front Desk: 1-604-2411830 | Hotel Fax: 1-604-2411840<br />
  4. 4. Holiday Inn<br />Founded by Kemmons Wilson in 1952<br />Franchised 1,405 inns around the world by 1972<br />Created the standard for inns and became the standard<br />Holiday Inn Express InterContinental Hotels Group in 1991<br />Offers rates for both business and leisure travelers<br />
  5. 5. Our Opportunity<br />
  6. 6. Customer Business Profile<br />Geotility has been in the heating and cooling systems industry for 30 years<br />The company is based in Kelowna, B.C.<br />
  7. 7. Customer Business Profile<br />
  8. 8. Customer Business Profile<br />Trend Analysis<br />The industry is in a better situation than the overall economy<br />Support from the Government of Canada’s Renewable Energy Deployment Initiative<br />“Clean Energy Dialogue” -- PM Harper & US President Obama<br />Contributed to the increasing awareness and installation of geothermal systems within North America<br />
  9. 9. Customer Business Profile<br />Trend Analysis<br />Real estate market is on a steep slide in B.C.<br />Geotility needs to sustain business and minimize capital expenditure effects<br />Financial<br />Confidentiality policies: Geotility’s profit margins and costs cannot be disclosed<br />However, it is believed that Geotility is financially stable <br />
  10. 10. Customer’s Goal & CSFs<br />Goal<br />Be the leader of the industry by providing the highest quality products, technical knowledge, and services to clients<br />Minimize overall costs without affecting product and service quality<br />CSFs<br />Cut down administration costs by receiving cost-effective rates from hotel suppliers<br />
  11. 11. Opportunity Profile<br />Geotility currently has numerous local projects in progress<br />E.g. BCIT Aviation Technology Campus, The Lotus (both in Richmond)<br />Geotility’s needs: <br />To temporary transfer talent from main branch in Kelowna to Richmond in order to complete projects<br />A cost-effective, comfortable, and convenient hotel to stay in<br />
  12. 12. Compelling Event<br />Geotility has to act now to accommodate employees and to facilitate the company's numerous ongoing commercial and residential projects<br />If Geotility does not act now or delays action:<br />A significant rate increase in hotel costs <br />Operations may be affected (e.g. expenses)<br />Holiday Inn Express can provide Geotility with:<br />the Corporate Rates Program<br />free facilities – wireless internet, a complimentary hot breakfast, room-suites, parking<br />location convenience – 10 minutes drive from Geotility's Richmond office<br />Air miles rewards <br />
  13. 13. Opportunity Assessment:Is there an Opportunity?<br />
  14. 14. Opportunity AssessmentCan We Compete?<br />
  15. 15. Opportunity AssessmentCan We Win?<br />
  16. 16. Opportunity Assessment:Is it Worth Winning?<br />
  17. 17. Decision Criteria<br />1. Rates<br />2. Services<br />3. Hotel Comforts<br />4. Surrounding Facilities and Conveniences<br />
  18. 18. Key Issues and Key Players<br />
  19. 19. Our Solution<br />
  20. 20. Unique Business Value<br />Holiday Inn Express just renovated in 2008<br />Holiday Inn Express is closer to Geotility’s office in Richmond<br />Close to business parks (i.e. Ironwood Business Park, Crestwood Corporate Center)<br />Corporate Rates Program helps customer to save and add strategic value to business<br />
  21. 21. Financials<br />Short-term Revenue (counted monthly)<br />$109 per room night<br />Total average expected returns of $160<br />15-20 room nights per month<br />Monthly room night revenue = $1,635 - $2,180<br />Expected monthly return = $ 2,400 - $ 3, 200<br />
  22. 22. Financials<br />Long-term Revenue (counted annually)<br />175 room nights per year<br />$ 135 per night charged in summer season, $ 109 in winter season<br />88 * $135 = $ 11, 880<br />87 * $109 = $ 9,483<br />Revenue per year = $ 21, 363<br />
  23. 23. Financials<br />Profit Margin<br />Approximately $25 - $30 in expenses per room night<br />The profit margin is expected to be $79-$84<br />This deal is important as it can be profitable for Holiday Inn Express<br />The risks in terms of business venture and the rates itself are low<br />The risk of Geotility using our competitors’ hotels is high<br />
  24. 24. Competitors<br />
  25. 25. RelationshipStrategy<br />
  26. 26. Our Strengths & Weaknesses<br />
  27. 27. Our Goal<br />Renew the Corporate Rates Program agreement<br />Increase the likelihood of Geotility staying with us <br />Add more tailored services to help secure future business<br />Help Geotility to cut costs with minimal side-effects on service quality<br />Long-term Gain: <br />Future revenue from business with Geotility as they are expected to expand in the near future<br />
  28. 28. Competitive Strategy<br />Flanking – Solution AND Reputation<br />Strong reputation<br />Strong inside support from Geotility<br />Strong solution fit<br />
  29. 29. Our Critical Success Factors<br />Add new amenities & services <br />E.g. microwaves and kitchen amenities within rooms, fax machines, low roaming rates, and other business-friendly facilities to better serve the specific needs of our clients <br />
  30. 30. Our Critical Success Factors<br />Further understand who Geotility is and what they are about <br />Interview Geotility executives who have previously used the Holiday Inn Express<br />By doing this, we can increase Holiday Inn’s responsiveness and empathy as well as give tangibility to our services <br />
  31. 31. Questions?<br />