The document provides a business plan for a proposed low-cost social accommodation called FREESTYLE Genoa in Genoa, Italy. It was envisioned by Luigi Massoero to provide affordable accommodation and socialization. Market research found demand for affordable housing and willingness to share rooms. Financial projections estimate annual revenues over €1.5M, gross operating profit near 50% of revenues, and a positive net present value, showing feasibility. Key risks include success of a new sharing concept.
I Dossier Turismo e Sostenibilita: Indagine sulla percezione degli italianiMTM IULM
Considered the widespread sensitivity to the issue of sustainable tourism nowadays the Master in Tourism Management started a research project aimed at spreading a "sustainable" culture in tourism. This is the I dossier about Tourism and Sustainability carried out by Master students when the Master was still held in Italian regarding the knowledge and consciousness of the issue of tourism sustainability by Italian people.
Forum "What's the latest in tour operating?"_ Introduction prof. BertozziMTM IULM
The world of tour operating is in the throes of important irreversible transformation, which is currently putting the very foundations of players’ business models into question. MTM discussed these issues in the forum "What's the latest in tour operating"on the 27th of March 2009.
Have a look at the introduction of Paolo Bertozzi (Tradelab/IULM).
What are the main attractions of a city? How do attractions influence big events such as the Expo 2015 in Milan? Have a look to this presentation of prof. Marra.
I Dossier Turismo e Sostenibilita: Indagine sulla percezione degli italianiMTM IULM
Considered the widespread sensitivity to the issue of sustainable tourism nowadays the Master in Tourism Management started a research project aimed at spreading a "sustainable" culture in tourism. This is the I dossier about Tourism and Sustainability carried out by Master students when the Master was still held in Italian regarding the knowledge and consciousness of the issue of tourism sustainability by Italian people.
Forum "What's the latest in tour operating?"_ Introduction prof. BertozziMTM IULM
The world of tour operating is in the throes of important irreversible transformation, which is currently putting the very foundations of players’ business models into question. MTM discussed these issues in the forum "What's the latest in tour operating"on the 27th of March 2009.
Have a look at the introduction of Paolo Bertozzi (Tradelab/IULM).
What are the main attractions of a city? How do attractions influence big events such as the Expo 2015 in Milan? Have a look to this presentation of prof. Marra.
- The concept : Retro and the City
- The competitors
- The tourism market in Brussels
- The Target
- The positioning
- The communication
- The catchment area
- The location
- The turnover figures
The presentation was Friday 22/10/2010 in London (University of East London)
- The concept : Retro and the City
- The competitors
- The tourism market in Brussels
- The Target
- The positioning
- The communication
- The catchment area
- The location
- The turnover figures
The presentation was Friday 22/10/2010 in London (University of East London)
2. Business Plan
The intent is to provide a real feasibility study for potential
stakeholders with:
• Market indications
• Economic aspects
Developing and introducing the concept of low cost accommodation
to Genoa
One of the potential Investor is
*Costa Edutainment group is the leader in Italy in the management of sites and large
public and private facilities dedicated to recreational, cultural, educational and scientific
research. Actually the Acquario of Genoa is managed by Edutainment group.
3. INTRODUCTION
The Project began around a large abandoned building in the old harbor of Genoa.
.
It was founded by a rich businessman named Luigi Massoero, who invisioned the building
as either a Free kindergarden or a social accomodation where anyone could stay at
anytime.
It would be open 24 hours a day 7 days a week, fullfilling his dream of helping the
community.
FREESTYLE Genoa will be aimed to create a village like setting, offering a person all
necessary componants to an enjoyable holiday.
Low Cost
Social Model Free Concept Style Concept
Model
• SOCIALIZATION • BE • SERVICES create • 48 BEDS – 12
• SHARING COMPETITIVE the EXPERIENCE MODULES
EXPERIENCES • EFFICIENT • 141 BEDS – 30
• CORE MODULES
BUSINESS: THE
STAY
4.
5. 22 chains worldwide (75 hotels) 49 Hostels in Europe
11 hostels in Italy 16 accommodations in Genoa
Total: 141 low budget accommodations analyzed
48 Services and Facilities Prices
7 different kinds of Room
Weekend and Weekday
6. Wi-Fi Bar
Laundry Other Common
Room
Towels
Vending machines
For Purchase Kitchen
Included
Breakfast
Provided
Not specified
The main services included in the price are Wi-Fi 80% and breakfast 50%.
The most available facilities are Bar and Other Common Room (50%) followed by
vending machines and Kitchen (20 to 25%)
7. € 39 € 42
34 € 34 €
€ 32 € 32
28 € 29 €
Private
Shared
Doulbe weekday Double Weekend Single Weekday Single Weekend
There are slightly differences between Private and Shared
bathroom.
The rooms with private bathroom are roughly 15 % more
expensive than the other ones.
8.
9. Introduction
The survey has been conducted with the purpose to find out our potential
guests and to understand which facilities and services are most demanded.
The responses have been used to define the behavior of people towards our
kind of accommodation.
The Main Topics:
The willingness to pay
The willingness to share
Services & Facilities
403 people interviewed “on-field”● 173 questionnaires on-line ● English & Italian
version ● Milan ● Genoa ●Piacenza ● Monza ● Train Stations ● Main Squares
10. Free 62% 36% 2%
Style 11% 56% 33%
Rate <20€ 20€-30€ 30€>
FREE CONCEPT:
Roughly 40% of the sample is willing to pay more than 20€
STYLE CONCEPT:
89 % of the sample is willing to pay more than 20€ and going in-depth
33% would pay more than 30 €
12. Yes No
16%
84%
59%47% 71% 59%
21% 23% 21%29% 20% 25% 9% 16%
Always Sometimes Never Always Sometimes Never
Nearly 70% people would share the same room with member of his/her group.
90% of people interviewed while travelling in group claimed that would share a
room with members of his/her group.
13. Willingness to Share with Strangers
59% 65%
27% 24%
14% 11%
Always Sometimes Never
Less than 35 years old Fly Low Cost
55%
47% 55% 39% 45%
35% 32% 32%
18% 13% 16%
13%
Always Sometimes Never Always Sometimes Never
People less than 35 years old are People who are used to travel low
willing to share with strangers cost are willing to share with
15% more than the average. strangers 15% more the average.
The part of the market more willing to accept the concept of “Freestyle Hotel” is also more
willing to share a room with strangers.
14. Services & Facilities
4.4 4.1
3.4 3.1 3.7 3.5
2.9 2.6
Breakfast is recognized as important and 40% of the sample would pay extra for having it.
Vending Machines have been recognize as “nice to have” mostly by the part of the market
more willing to accept the “ Freestyle Hotel” concept.
A Common Area has been recognized as “ nice to have” where it is possible to find fast
food, coffee shop and games.
Towels and Air Conditioning has to be included while Parking must be excluded of the
price, according to the responses.
15.
16. Vending Machines
Vending Machines alone can Generate a Net Profit of
22.000,00€, with almost 0€ of Labor Costs.
17. Extra Revenues
Extra Revenues can be more than 10% of total GOP, considering all their specific
costs.
18. Income Statement 2015
GOP is almost 50% of
the Revenues, which
confirms the hotel’s
concept of a Low Cost
Project.
19. Alterative Scenarios
Original IS
In a worst scenario, the
hotel will still have a
positive net profit.
The GOP would still be 40%
of Total Revenues
20. Alterative Scenarios
Original IS
The hotel could generate
1.5M € of Total Revenues.
The hotel could generate
more than € 400.000 of EBT.
21. Investor Perspective
NPV € 657.120 1.748.300 (42.420)
IRR 9,4 % 12.9 % 6,8
Stabilized
Net Yield 6,4 % 8.3 % 4,7
Gross
Yield 7,6 % 9.5 % 5,9
Payback Year 2026 2024 2029
In the end of the lease period we have a positive NPV
We will have an IRR of 9,4
In a negative scenario our NPV can be negative.
22. Conclusions
According to the survey
Location
= opportunity
People are opened Positive
Positive demand
to this new concept Positive feedback
of sharing rooms and
socializing in a hotel
After analyzing all data we feel the project is
is feasible and clearly sustainable,
We are able to see
high values in both IRR
and NPV.
* We must only consider the financial risks
that come with releasing a new concept
to the public producing the negative NPV
shown in the bad scenario.
23. Thanks to
• Acquario Di Genova
• Costa edutainment
• Mr. Castagnetti
• Dott. Giorgio Bianchi
• Dott. Selvaggiulo
• Dott. Grosso
• IULM
For all the help during our work.