2. Luxury with a Difference Introduction There is a unique opportunity for Tree House Hotels Ltd and its shareholders to capture a significant share of a new and expanding market; bridging the gap between the hotel and resort experience. Concept The ‘luxury with a difference’ concept is based on the provision of high quality dining and accommodation (bedroom and suite) each occupying its own tree and constructed around a large central area comprising a restaurant, bar, sundeck and other facilities.
3. Luxury with a Difference Objectives Build a strong premium brand supported by a high margin business model Franchise the concept into overseas markets. Realise the business value within 5 years Forecast EBITDA: 25% rising to 38% in year three ROA: 16% rising to 28% in year three
4. Luxury with a Difference Potential UK Market Luxury Hotel & Conference Sectors: £1bn+ Target Segments Personal Clients: Young and mature; engagements, weddings, birthdays, anniversaries . Corporate Clients: Private meetings, Conferences, team building, Corporate hospitality and business travel. Demographics: A, B, C1 & C2* * Considerable expenditure on luxury ‘treats’ within the self-employed/skilled manual grouping.
5. Luxury with a Difference Market Offer Four key components; Exotic : achieved through design, construction, natural materials and woodland locations; delivering an ambiance of tranquillity and romance. Accessibility : create the perception of total seclusion, peace and privacy within an ‘un-spoilt’ natural environment whilst providing easy access to nearby sporting and social activities. Quality & Style : both the accommodation and dining experience will be of the highest calibre, comparable to the best five star hotel but without the now ‘standard’ commercial atmosphere; ‘luxury with a difference.’ Partnership : symbiotic relationships with established tourist attractions, sharing their marketing and clients; e.g. well-known estates such as Goodwood and Chatsworth. This will provide us with numerous ‘added value’ services and activities such as spa’s, gym’s, clay pigeon shooting and 4WD circuits without the need for additional capital investment.
6. Luxury with a Difference Strategy Aggressive campaign playing on the uniqueness of the offering. PR agency focussed on editorials and articles in print and television, also pushing the venue for photo shoots in fashion magazines, wedding magazines and wine magazines. Redeemable voucher campaigns in collaboration with national newspapers such as the Telegraph and the Sunday Times offering discounted/free accommodation based on a couple dining a la carte; helping to maximise utilisation during the low season. Targeted B2B campaign to gain share of corporate market.
7. Luxury with a Difference Assumptions Projections based on 60% occupancy rising to 70% in year three. NB. Center Parcs achieves over 92% and the average for provincial hotels exceeds 72% (Aug 2009) Room rate £200 luxury double suite £300 per night. Restaurant spend per head £23.80 for lunch and £41.70 for dinner including drinks.
