Motel Business Plan: Feasibility & Market Analysis

Contenido
Introduction ......................................................................................................................... 2
Data ...................................................................................................................................... 3
Paper componentes ............................................................................................................ 4
1.
REPORT DEVELOPMENT. ....................................................................................... 4
1.1 Lodging Description. Amenities and services offer. ........................................... 4
1.2Explain why is necessary to open these type of lodging. Do you see an
opportunity in the business? Explain the reasons. ................................................... 5
1.3 Location or area of your property. ........................................................................ 5
1.4Determine and justify your travel market. ............................................................. 5
1.5
Management structure. Organization chart and functions. ............................ 6
1.6 Type of Rate(s) you may offer base on the type of rooms. ................................. 9
1.7 Amenities of your facility. ...................................................................................... 9
1.8 Calculation............................................................................................................ 10
Rates of the rooms .................................................................................................... 10
Cost Approach ............................................................................................................. 10
Market Condition Approach .......................................................................................... 11
1.9 Calculation of the ADR, RevPar, Yield Statistic and Occupancy Percentage. . 11
1.10 Interpretation of the results. .............................................................................. 13
References ........................................................................................................................ 13
Appendix ........................................................................................................................... 14
Introduction
The name of the project is “Motel One”, and it is located at Av. Miguel Alemán 548_5, Norte,
Urb. No. 4, Cd Obregón, Sonora, CP 85010. This motel has 40 rooms, administration area,
reception area , garbage area, restaurant, kitchen, laundry, machine room, bar, parking,
pool, Spa and Lobby. Other required services are in the center of Ciudad Obregón, while
Motel One is there, the location is very favorable.
The present project seeks to satisfy the demand for tourism both nationally and
internationally, for those tourists seeking to use the rooms temporarily. Year after year,
tourism increases, so this project will contribute to satisfy this demand.
The Motel was created for people looking for comfortable and beautiful accommodation at a
fair price, without having to sacrifice points such as the quality or cleanliness of the place.
During your stay at the Motel One you can enjoy modern, spacious and comfortable spaces,
and above all, impeccable service. It is exactly what is needed in Ciudad Obregón, that is
why it is believed to have found a business opportunity in that area.
Besides, the objective is also to contribute to the development of the hospitality industry
throughout Mexico, represent the common interest of society and thus be constantly
growing, implement improvements, disseminate best practices, etc.
Motel One It also has the following short, medium and long-term objectives:
●
Comply with current ecological legislation related to environmental impact
assessment
●
Generate sources of direct and indirect jobs in the area during the different stages of
the project.
●
Meet the growing demand for temporary accommodation for national and foreign
tourism that increasingly visits Ciudad Obregón
The following pages will analyze whether the implementation of the Motel One is feasible, as
it is a new motel in Ciudad Obregón. The percentages of motel rooms available, the rack
rates, and the budgeted amounts of motel one revenue will be analyzed.
Data
Expense Type
Amount
Allocation
Division
$ 210,300
20 %
$252,360
Utility Expenses
$ 62,234
75 %
$108,909.5
Debt Expenses
$ 200,425
60 %
$320,680
Depreciation Expenses
$ 91,308
50 %
$136,962
Rent Expenses
$ 40,000
80 %
$72,000
Marketing Expenses
$ 51,100
85 %
$94,535
Administrative
Expenses
&
General
to
Rooms
Rooms
Expense
Division
Maintenance Expenses
$ 6,101
60 %
$9,761.6
Insurance Expenses
$ 5,000
80 %
$9,000
TOTAL
$456,168
N/A
$1,181,437.6
40 rooms
$20,100
$11,500
502.5
287.5
ESTIMATE: Type and number of rooms as your own percentage of occupancy and type of
rooms.
Paper componentes
1. REPORT DEVELOPMENT.
1.1 Lodging Description. Amenities and services offer.
We are a responsible and friendly company with the natural environment; we are focused on
providing excellent service to our guests. They have the best experience in our facilities and
connection with the environment. Who visits us always returns.
Our employees are invited to be part of this great family, so they can have an excellent work
environment out of stress.
The One motel is located in Ciudad Obregón, which is located in the hotel zone on Miguel
Alemán street, the motel has a small restaurant that only has breakfasts, it has a beautiful
location, many recreational activities can be carried out around the motel day and night
visits, during the day you can visit the Nainari lagoon or spend a pleasant afternoon of
bowling, among other activities and more visits, at night there are more activities, such as
clubs, bars, restaurants, among others.
The motel is luxurious on the outside and inside it has nice details, it has 20 rooms of which
are of the average size and it has nice details of the room, everything you need to relax and
a work area for all those people who they go for business.
The motel has a tourist route to the alleys of the City to create more dissemination of the
alleys themselves, in which recreational activities are carried out and end with a tour to know
the nearby towns of workers, such as Cocorit.
1.2Explain why is necessary to open these type of lodging. Do you see
an opportunity in the business? Explain the reasons.
The Motel One is necessary in the area of the motels in Obregón, because although there
are already a variety of hotels, none is like the Motel One. It has high quality service and
products that exceed the level of any standard motel. The client's needs are of high priority
and the perfect balance is found between the services and their prices.
So it is considered to have found this business opportunity, to be part of the "most
accessible" for customers but with a better standard than the rest of this class.
Apart from the pure stay at the hotel, a series of the best tourist activities they can do are
organized, in order to offer a more fun and entertaining stay to customers.
1.3 Location or area of
your property.
The location of the Motel
One is: Av. Miguel Alemán
548_5, Norte, Urb. No. 4, Cd
Obregón,
Sonora,
CP
85010, in the pure hotel
zone.
It is important to note that this location was selected for its central
characteristics and for being in the right area.
1.4Determine and justify your travel market.
The services and products of Motel One are aimed at all kinds of clients, it can be for tourists
who are passing the city, tourists who want to know the city, tourists who are only looking to
spend one night, business tourists, tourists with children, etc. The Motel One is adapted to
serve any kind of client.
Mainly people are looking for a motel as a refuge for one night and then being able to
continue their trip, so this type of customer will be the main ones of this establishment, but in
the same way, different situations can always be offered, so the Motel is prepared for almost
everything. Being in this way, you have more possibilities of being able to succeed with the
variety of clients.
1.5 Management structure. Organization chart and functions.
General manager:
●
Overseeing daily business operations.
●
Developing and implementing growth strategies.
●
Training low-level managers and staff.
●
Creating and managing budgets.
●
Generating reports and giving presentations.
●
Improving revenue.
●
Hiring employees.
●
Evaluating performance and productivity.
●
Analyzing accounting and financial data.
●
Researching and identifying growth opportunities
Director of RH:
●
Developing and implementing human resources policies.
●
Supporting strategic objectives.
●
Hiring staff and negotiating employment agreements.
●
Ensuring compliance with laws and regulations.
●
Managing staff wellness and performance reviews.
●
Motivating and supporting current staff.
●
Maintaining staff records.
●
Handling employee benefits.
●
Identifying staffing needs and creating job descriptions.
●
Designing and directing training programs.
Accounting:
●
Process Payrol
●
Track Expenses
●
Report Finances
●
Financial Auditing
●
Manage the Budget
Manager rooms division:
●
The rooms division manager is not only responsible for the accommodation
department with a focus on reception, but he ensures smooth processes and high
compliance in terms of guest relation, housekeeping and reservation standards, for
example in larger hotels.
●
As a rooms division manager, you take over management responsibilities and lead
the whole reception team. In addition, you are responsible for the deployment of
personnel, so you need to make sure there is sufficient and competent personnel to
guarantee the satisfaction of the guests.
Receptionist:
●
Responsible for receiving and welcoming guests upon arrival. Its mission is to
welcome customers and offer them the first point of contact with the hotel.
●
Check in
●
Provide information about the hotel.
●
Responsible for resolving conflicts and / or company problems.
●
Responsible for providing tourist information.
●
Check out
Bell boy:
●
Checks the daily arrival list for VIP's or guests with special need.
●
To be present at the Reception desk or in the lobby to be ready to assist guests,
colleagues and visitors when requested.
●
Ensure collection and delivery of guest luggage and equipment in an efficient and
timely manner.
●
Tag baggages it and return the identification slips to guests.
●
Assists guests with luggage to the front desk.
●
Escorts guests to room, placing luggage in room assigned by front desk.
Food production:
●
The general organization of the kitchen
●
Order raw materials
●
Be responsible for the usefulness of the kitchen
●
Hire staff
●
Train your staff
●
Supervise the kitchen at service time
●
Supervise cleaning
Waiters:
●
Provide excellent customer services
●
Always strive towards best customer satisfaction
●
Greet customers and present menus
●
Make suggestions based on their preferences
●
Take and serve food/drinks orders
●
Up-sell when appropriate
●
Arrange table settings
●
Keep tables clean and tidy at all times
●
Check products for quality
●
Deliver checks and collect payments
●
Cooperate and communicate with all serving and kitchen staff
●
Adhere to all relevant health department rules/regulations and all customer service
guidelines
Housekeeper:
●
Ensures cleanliness and good presentation of rooms for better service to guests
●
He is in charge of the public areas of the hotel, this means that he verifies that the
corridors, reception and restrooms are clean, through the management, organization
and control of human resources and the good administration of materials to his
subordinates.
1.6 Type of Rate(s) you may offer base on the type of rooms.
One of the two rates that are handled in the motel is the rack rate which is based on the type
of room and type of beds, in the motel only 2 room types are handled, double room and
single room.
Type of room
Public rate
Rake rate (20%)
Single room
$741
$890
Double room
$941
$1,130
1.7 Amenities of your facility.
Inside the rooms:
All the rooms of the Motel One have at least:
●
full air conditioning
●
a spacious and comfortable bed
●
a private bathroom with a shower / bathtub
●
a safe
●
a work desk
●
a 32 "LED TV with international satellite channels
●
WiFi broadband internet and cable
●
Most of these rooms have a small balcony
Hotel facilities:
●
Swimming Pool
●
Reception
●
Lounge
●
Mini Spa
●
Mini Restaurant (only breakfast)
●
Bar
●
Car Parking
1.8 Calculation
Rates of the rooms
The One motel has 2 rates for the tourist or guest, one of them is the rack rate, the rack rate
with its percentage of dependence on the room, beds or if the package includes breakfast.
Another rate with the motel account is “the promotion rate” which includes special discounts
during week fines or other minimum stays with a specific arrival date, for honeymoon stays
or specific promotions.
The promotions that are most used in the motel are for honeymoon, a weekend in summer,
for graduation for graduates who enjoyed the stay with spa and pool area included, among
other promotions.
Cost Approach
Operation cost
Operation cost per
day
Operation cost per
month (30 días)
Operation cost per
month/ rooms
available
Soap
$21 per 2 soaps
$630
$35
Shampoo
$60 per 2 shampoos
$1,800
$100
Conditioner
$60 per 2
conditioners
$1,800
$100
Wifi
$100
$3,000
$166.67
Laundry
$20 per garment
$600
$33.33
cleaning supplies
$50
$1,500
$83.33
Total
$311
$9,330
$518.33
Per day
10.37
Per room 0.58
Market Condition Approach
Hotel Gamma
Motel One
Single Room
980
890
Double Room
1,190
1,130
1.9 Calculation of the ADR, RevPar, Yield Statistic and Occupancy Percentage.
Motel
One
ROOMS
REVENUE
$40,000
NUMBER OF
12
ROOMS SOLD
ROOMS
18
AVAILABLE
RACK RATE
$890
Occupancy percentage
66%
average daily rate
$2,222
RevPAR
$1,466.50
Yield static
249%
Potential room revenue
$3,333.33
Motel One
1.OCCUPANCY PERCENTAGE
Total number of rooms sold X100 =
(12/18) *100=66 %
Actual number of rooms
2.AVERAGE DAILY RATE
Actual room revenue/ number of available rooms = $40,000/18= 2,222
3.RevPAR
Occupancy percentage x ADR
4.YIELD STATISTIC
Actual rooms revenue X 100=
Potential rooms revenue
.66* 2,222= 1,466.50
Rack rate * room available (890*18)= 16,020 = (40,000/16,020) *100 =249 %
Room revenue / The number of rooms sold $40,000 / 12= 3,333.33
1.10 Interpretation of the results.
Starting with the occupancy rate, the occupancy rate refers to the number of occupied rental
units at a given time, compared to the total number of available rental units at that time, and
it is always expressed as a percentage. The Motel One has a occupancy percentage of
66%, which is a very good result for the beginning. It is more than the half that could be used
and it is growing.
The average daily rate (shows how much revenue is made per room on average. The higher
the ADR, the better. The ADR of this project is $2,2222 at the moment and it is increasing
the money it’s making from renting the rooms, so the Motel One is going good at this Point.
RevPAR is a measurement of both a hotel’s/motel’s average daily rate and its ability to
actually fill those rooms. It is incredibly important, because it provides a clear idea of current
performance and provides an idea of how much a hotel is able to charge for its rooms. Motel
One has a RevPar of 1,466.50, and it is also a great result, it is the price that could be
offered to the guest, thing that will happen in the future.
The Yield statistic shows that the Motel has a huge demand for the 18 rooms left and that
the people are willing to pay the rack rate, just to get one of the rooms. That is why the
percentage is a big number of 249%, because the Motel One would get a gross profit of
$16,020.
References
Appendix
Table 1: Data
Expense Type
Amount
Allocation
Rooms Division
Administrative
Expenses
&
General $ 210,300
20 %
to Rooms
Expense
$252,360
Division
Utility Expenses
$ 62,234
75 %
$108,909.5
Debt Expenses
$ 200,425
60 %
$320,680
Depreciation Expenses
$ 91,308
50 %
$136,962
Rent Expenses
$ 40,000
80 %
$72,000
Marketing Expenses
$ 51,100
85 %
$94,535
Maintenance Expenses
$ 6,101
60 %
$9,761.6
Insurance Expenses
$ 5,000
80 %
$9,000
TOTAL
$456,168
N/A
$1,181,437.6
40 rooms
$20,100
$11,500
$502.5
287.5
Table 2: Type of Rates and type of Rooms
Type of room
Public rate
Rake rate (20%)
Single room
$741
$890
Double room
$941
$1,130
Table 3: Cost Approach
Operation cost
Operation cost per
Operation cost per
Operation cost per
day
month (30 días)
month/ rooms
available
Soap
$21 per 2 soaps
$630
$35
Shampoo
$60 per 2 shampoos
$1,800
$100
Conditioner
$60 per 2
conditioners
$1,800
$100
Wifi
$100
$3,000
$166.67
Laundry
$20 per garment
$600
$33.33
cleaning supplies
$50
$1,500
$83.33
Total
$311
$9,330
$518.33
Table 4: Market Condition Approach
Hotel Gamma
Motel One
Single Room
980
890
Double Room
1,190
1,130
Table 5: ADR, RevPar, Yield Statistic and Occupancy Percentage
Motel
One
ROOMS
$40,000
REVENUE
NUMBER OF
12
ROOMS SOLD
ROOMS
18
AVAILABLE
RACK RATE
$890
Occupancy percentage
66%
average daily rate
$2,222
RevPAR
$1,466.50
Yield static
249%
Potential room revenue
$3,333.33