The document outlines a project by an international hotel chain to invest in Italy by opening five hotels in strategic, low-cost destinations. It emphasizes providing high-quality essential services while targeting both business and leisure travelers. The analysis includes various factors such as location accessibility, tourist flows, and competitive landscape, showcasing the feasibility and expected profitability of the investment plan.

1. 1BSMART&INNOVATIVE

2. Introduction: product and servicesTargetAnalytical frameworkExcluded destinationsSelected destinations: analysis and highlightsInvestment Plan Hotel data 2Index

3. 3IntroductionThis project is based on a real case: an international hotel chain decided to invest in Italy opening five hotels in five different locations. Due to discretionary policy, some of the locations chosen for this analysis differ from the real project. The aim is to launch a new combination of product and services, as a reaction to the complex situation of Italian hospitality sector.

4. Strong focus on low-cost culture, following its great success in foreign markets4IntroductionThe project is innovative asitaimstobring in Italy the realmeaningof the low-cost market whichisnottobeperceivedassomething LOW QUALITY butas the attentiontobasicservicesoffering HIGH QUALITY

5. 5IntroductionLOW COSTISNOTLOW QUALITY

6. 6ConceptThis project envisions a new idea: creatingnewhotelsclosetostrategichubs, offeringanessential and standardisedproductfordifferentsegments

7. ConceptLOW COSTMORE HOTELRecognizableBrandEssential ServicesReception (open 24h)

8. Breakfast (on payment)

9. TV

10. Wi-Fi

11. Parking

12. VendingmachineStrategic position7

13. IndexIntroduction: product and servicesTargetAnalytical frameworkExcluded destinationsSelected destinations: analysis and highlightsInvestment Plan Hotel data 8

14. 9Target profileBUSINESS LEISURE Interested in a strategiclocations so toeasilymovearoundTheypayattentiontoa goodquality standard service and wi-fi and parking availabilityInterested in stayingnexttomainattractionsitesTheypayattentiontoreasonableprices

15. IndexIntroduction: product and servicesTargetAnalytical frameworkExcluded destinationsSelected destinations: analysis and highlightsInvestment Plan Hotel data 10

16. Analyticalframework/1Airports: Milan-Malpensa, Rome-Fiumicino, Venice-TesseraSeaport: Olbia, Naples, GenoaRailwaystations: Bologna, Milan, Mestre

17. 12The criteria examined are the following: Geographical positionSocio-economic backgroundDistances from main attraction sitesTourist flowsPotential development of the area (infrastructures)Competitors (the hotels within 10km with more than 50 rooms)OthersAnalyticalframework/2

18. IndexIntroduction: product and servicesTargetAnalytical frameworkExcluded destinationsSelected destinations: analysis and highlightsInvestment Plan Hotel data 13

19. 14The 4 excludeddestinations

20. IndexIntroduction: product and servicesTargetAnalytical frameworkExcluded destinationsSelected destinations: analysis and highlightsInvestment Plan Hotel data 15

21. 16The selecteddestinationsMilan (via Lepetit) : railway stationMilan-Malpensa : airportRome-Fiumicino : airportMestre ( via ca’ Marcello) : railway stationVenice-Tessera : airport

22. 17Milan (via Lepetit)

23. Milan (via Lepetit)Malpensa50 kmFiera Rho-Pero10,6 kmLinate9 km18

24. Milan (via Lepetit)HighwayMilan-Brescia7,8 kmHighway Milan-Turin 11 kmUniversity Bocconi4 kmRailway station Cadorna3,5 kmUniversity statale2,7 kmUniversity Iulm5,6 kmCity centre3 km19

25. 20Milan / GeneraltrendsDemographictrendsMilanoSocio-economic backgroundSource: demo.istat.it

26. 21Milan TouristFlowsSource: osservatorio turismo Milano

27. 22Analysisof Milan(via Lepetit)/1The area is very close to the central railway station of Milan. It is the second main Italian railway station in terms of passenger traffic and size.

28. 24 platforms

29. 600 trains per day

30. 320.000 pax per day

31. more than 120 million pax per year.* Source: Grandistazioni.itFiera Milano 2009 results reflect the impact of the world economic crisis and the related impact on the exhibition sector. Nevertheless no cancellation of international exhibitions and the increased number of visitors for the most important exhibitions are positive signals.Fiera Milano is the first for net sqm rented out

32. 23Analysisof Milan(via Lepetit)/2FUTURE DEVELOPMENT2011: opening of the MIC plus the biggest convention centre of Milan, it will be able to host 18.000 people in 73 conference halls

33. 2015: Expo will take place in Rho exhibition with an expected number of 20 million visitors

34. City-life project: building of a new city district surrounded by nature24Milan-Competitors

35. 25Milan (via Lepetit)Le Méridien Gallia650m Hotel Michelangelo 450mStarhotels Splendido700mUna Hotel Century 350mAlbergo Auriga500mHotel Cristallo400m Hotel Andreola400m Hotel Mediolanum200m

36. 26Milan-Malpensa

37. 27Milan-MalpensaUniversity Insubria10 kmHighway E627 kmUniversity Liuc14 kmA8 Highway(autostrada dei laghi)20 kmFiera Rho-Pero30 kmCity centre45 km

38. Malpensa / GeneraltrendsDemographictrendsSomma LombardoGallarateBusto ArsizioVareseSocio-economic backgroundSource: demo.istat.it

39. 29Milan TouristFlowsSource: osservatorio turismo Milano

40. 30The number of new air carriers is increasing

41. Malpensa will recover and increase air traffic in the next yearsAnalysisofMilan-Malpensa/1* Source: Sea-Aeroporti

42. 31AnalysisofMilan-Malpensa/2FUTURE DEVELOPMENT2011: opening of the MIC plus the biggest convention centre of Milan, it will be able to host 18.000 people in 73 conference halls

43. 2015: Expo will take place in Rho exhibition with an expected number of 20 million visitors

44. City-life project: building of a new city district surrounded by nature32Malpensa-Competitors

45. 33Malpensa-competitorsCrowne Plaza Milan Malpensa Airport 850 mHoliday Inn Express Milan Malpensa Airport 750 mHotel Villa Malpensa 1 kmFirst hotel1,3 km

46. 34Rome-Fiumicino

47. 35Rome-FiumicinoRome-Termini41 kmHighway (autostradaazzurra26,3 kmHighway A9033 kmFair of Rome7,3 kmHighwayFiumicino-Rome8,9 km

48. Rome / GeneraltrendsDemographictrendsFiumicinoSocio-economic backgroundSource: demo.istat.it

49. 37AnalysisofRome-Fiumicino/2Passenger traffic+ 29%* Source: Adr-Aeroporti di Roma

50. 38Rome-TouristFlowsEBTL.it -ente bilaterale turismo Lazio

51. 39FUTURE DEVELOPMENTThe “TEN T” project (Trans EuropeanTransport Network) willbeanovergroundtransport system whichwillimprove the mobilitybetweenRome and the airport.

52. The project of the new“Porto della Concordia” in Fiumicino represents the top in termsofqualityofservices in the fieldofitalian and no italiantouristichubs. Itis the largesttouristichubofEurope, a kindofsustainablehubAnalysisofRome-Fiumicno/3

53. 40Rome-Competitors

54. 41Rome-FiumicinoHotel Mach 2, 15 km Hilton Garden Inn Rome Airport Hotel ‎1,7 kmCourtyard by Marriot 3,5 kmHilton Rome airport hotel 500 mHotel Euro House 3 kmSeccy Hotel 4,2 km

55. 42Mestre (via Ca’ Marcello)

56. 43Mestre (via Ca’ Marcello)Highway A57 2 kmMarco Polo Airport12 kmEuropean Institute of Design5 kmVenice10 kmUniversity Ca’ Foscari12 km

57. Mestre / GeneraltrendsDemographictrendsMestreSocio-economic backgroundSource: demo.istat.it

58. 45Mestre-Touristflows* Source: comune.venezia.it

59. 46Analysisof Mestre/1Strategic position: Gate to VeniceIt is an important alternative for tourists that want to visit Venice without spending a lot of money. Mestre is well connected to VeniceMestre is the last railway station on dry land before reaching Venezia Santa Lucia station, located in a lagoon. It takes 10 minutes to reach VeneziaSanta Lucia by train. Trains to Venice leave every 15 minutes. Mestre railway station is a very important hub for passengers and goods, with more than 35000 pax per day

60. 47Analysisof Mestre/2FUTURE DEVELOPMENTImprovement of the traffic mobility through the construction of bridges and underpasses to free the city centre and the tangenziale (highway) by the congestionMestre will be one of the railway stations of the Corridor n°5, part of the Pan-European transport corridors, one of the biggest project of the European Union. The corridor n° 5 will connect Lisbon to Kiev, passing through MestreItaly will have a strategic role in connecting and integrating those countries that entered the EU in 2004.

61. 48Mestre-Competitors

62. 49MestreQuality Hotel Delfino Venezia Mestre 1 kmBest Western Hotel Bologona400 mHotel Plaza 400 mHotel Tritone 300 mHotel Mondial1,5 kmHotel Lugano1,4 km

63. 50Venice/Tessera

64. 51Venice-Tessera Venice –Tessera Airport 2 kmA4 highwayVenice-Mestre154 kmSanta Lucia railway station15 kmUniversity Ca’ Foscari15 kmCity Centre12 km

65. Venice / GeneraltrendsDemographictrendsVeniceSocio-economic backgroundSource: demo.istat.it

66. 53TouristFlows

67. 54AnalysisofVenice-Tessera/1Passenger Traffic2000-2009+ 102%* Source: Marco Polo airport

68. 55Gradual increase in the number of passengers, except for 2008 and 2009, but this is probably due to the worldwide downturn

69. Venice still remains one of the most appealing tourist destination

70. Venice airport system including Treviso is the third Italian biggest one after Rome and Milan-Malpensa in terms of passengersAnalysisofVenice-Tessera/2

71. 56AnalysisofVenice-Tessera/3FUTURE DEVELOPMENT“Quadrante Tessera”: project of a new green area, withsports and leisurefacilitiesNew transport system (tram su gomma) High speed network (railway)New areasfor social housing

72. 57Venice-TesseraVenice-TesseraHotel Ducale 4,7 kmAnnia Park Hotel 3,3 kmTitian Inn Hotel 3,6 kmHotel Venice Resort 3,7 kmCourtyard by Marriott 3 km

73. 58Venice-Competitors

74. IndexIntroduction: product and servicesTargetAnalytical frameworkExcluded destinationsSelected destinations: analysis and highlightsInvestment Plan Hotel data 59

75. 60Investmentplan

76. 61InvestmentplanAssuming the creation of a hotel chain and the feasibility of the investment, the size of each hotel may be no smaller than 120 rooms.The hotels’ capacity ranges from 120 to 150 roomsEvery room has 14 sqm

77. The options for the hotel managers are two: pay the 4% of total investment as minimum guarantee, or pay 50% of total GOP62Management Agreement

78. 63The sq.m. costsrangefrom € 2350 to € 2500, depending on the followingvariables:

79. Building costs

80. Security

81. Urbandevelopment and planning

82. Authorizations/licenses

83. Market valueof the area (e.g. Milan via Lepetitis in the city center)

84. The complexityconstruction ( e.g. Mestre lies on water)Investmentplan

85. IndexIntroduction: product and servicesTargetAnalytical frameworkExcluded destinationsSelected destinations: analysis and highlightsInvestment Plan Hotel data 64

86. 65Hotel data/occupancy The occupancy planned for the start-up refers to an analysis of the average occupancy of the areaSource: AICA.it

87. 66Hotel data/occupancy The established occupancy ranges from an increase by 5% to 12%67Hotel data/adrThe average rate hasbeenplannedbyconsidering:the analysisof the competitors in the area

88. the rooms’ costs

89. the occupancyplannedforboth start-up and established68Hotel dataSTART-UP AND ESTABLISHED STAGE

90. 69Operatingcosts

91. 70Total GOP

92. ConclusionWeforecastthat the More Hotel chain project willbesuccessfulforthesereasons:Profitableweforesee a gradualincreaseover the years and a rationalcostmanagement

93. Feasible Havinganalizeddifferentlocationswith accurate criterias, the selecteddestinationsfitverywellwithour businessThank you!72BSMART&INNOVATIVE