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Hotel Seeblick Business Plan

Hotel Seeblick Business Plan Diploma Project

As a student at the Ecole hoteliere de Lausanne, I uphold and defend academic integrity, academic rigour and academic liberty as core values of higher learning. I attest, on my word of honour, that work submitted in my name is my own work, and that any ideas or materials used in support of this work which are not originally my own are cited and referenced accordingly. Signature…………………………………………………………………………….. CHETKUL Cheewapan 6/15/2011

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Hotel Seeblick Business Plan Executive Summary Context and Mission The purpose of the Diploma Project is planning to renovate the existing Seeblick Hotel *** in Faulensee. The plan of the hotel renovation is a part of the individual 18 months project by Diploma in Hotel and Restaurant Management of Ecole Hoteliere De Lausanne. The mandate of the business plan was given by the professors and the external evaluator, including the manager of Seeblick Hotel. The hotel will open in January 2012. The renovation of the villa will start in the last six months of 2011 and will end in December 2011. The average occupancy rate for 2012 is forecasted at 45%, which will increase throughout the next 5 years in each by 3%. The restaurant profit will be generated especially during lunch with an average check of 33.- CHF and a table turnover of 1.2 that will increase by 1% per year from 2014 onwards. "To be the best three star hotels in Spiez and provide excellent service to customer" Our mission is to make the guests feel at home in an atmosphere of safety, kindness and professional service by providing a serene, caring and joyful place to rest and stay. We endeavor to be the best three star hotel or at least in the top 3 of existing three star hotels in Spiez. This is achieved with having a differentiated service and facilities from the competition, by recruiting, training and appreciating talented staff. Analysis of the Environment Claude Maurer said that “Consequently, the strong currency is having a bigger impact on tourism than on exporters of goods. Overnight stays by German customers – who are particularly important to Swiss tourism – fell three percent between January and November 2010”. In 2012 the number of German tourists will decrease in the short run because of the effect of the strong Swiss franc. The impact of the strong currency will decrease of foreigners travelling to Switzerland and also the local Swiss will rather travel abroad, taking advantage of the strong currency. According to the data from Euromonitor 2011, the socio-cultural effect to the behavior of the customer, the concerning to the quality of life such as the health seem to be the most important, then the hotel must consider to response the need of customer. By this point the assumption of the product will be offer the diet healthy food and the Thai massage. Marketing According to Euromonitor 2011, families are an interesting market which makes up to 52% of all the trips in Switzerland. This market consists of mainly Swiss and Germans who are interested in adventure sports and like to collect as many new experiences as possible during their travel. The target market will be the people in the age of 25-45 years travelling with their family and children, as couples or with friends. Their buying power is in the mid market. The objective of the travel is leisure. The market of excursion tourists includes local people in the age of 45-70 who have a strong interest for health, by healthy food. The marketing strategy will be the package of the adventure and wellness which includes all the products of the hotel will be promote by the marketing,

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Hotel Seeblick Business Plan Concept The number of rooms in main building will be 22; three family rooms with 4 capacities and nineteen deluxe rooms with two capacities. The rooms will be decorated in a minimalist contemporary style only with the necessary and simple furniture. The target market of the main building room will focus on bigger groups such as a family with at least two children or for local and foreigner tourists travelling as a couple. The main target markets of the villa will be the backpackers, solo travelers and young people with the age of 23-30years, having a limited budget and wanting to make new connections. The villa consists of 30 twin rooms. The decoration of the rooms will be in a modern style with colorful walls. The restaurant has a total capacity to serve around 252 guests with 130 seats inside and 122 seats outside. The decoration stays the same. Nevertheless, the existing European food will be kept the same with one change, by using local ingredients from the area. The Asian food will be only an addition to the existing menu. The Thai massage rooms will be located in the first floor of the villa. The products of massage are the body massage, foot massage and the nail spa.The café will be located at the corner of the restaurant, consists of 25 seats on the terrace and 25 seats inside. The café will serve homemade bakery and soft drinks. The special beverage menu will be consisting of healthy drinks.The bar serves only alcohol and some complimentary snacks. The target market of the bar will be mainly locals and guests from the villa. During the day, the bar will be opened and to be used free of charge by the community, with the obligation of buying some food or beverages from the hotel. Human Resources We do believe that the excellent service provided to our customer will delivery from excellent staff who understand and passion to be in hospitality business. Therefore, our employees are qualified to take their own professional initiatives as well as to follow teamwork efficiently, in order to satisfy customers to the highest level. The number of staff for the organization is based on the occupancy rate of the very low and low season. The extras will be hired during high season. The total amount of staff for whole year will be 23 persons, During high season the extra will be hired and the amount of staff will be 40 persons. Sustainable Development The environment, the social and the economy are the key to get the sustainability and the growth profit in the long run. The awareness of the environment problem is very important according to Konrad O., (n.d.) “sustainability means that present and future persons have the same right to find, on the average, equal opportunities for realizing their concepts of a good human life”. The action plan by using renewable energies such as the sun, the wind must be apply immediately to the hotel. The first implement process will be the solar panel and insulation. Risk Analysis Exchange currency - due to the strong Swiss franc, this currency could become a problem. It could have a great impact on the target market coming from Switzerland and Germany, as the exit strategy is give high discounts as a promotion and an attraction for bringing guests to the hotel. Though, in those days the hotel may lose more profit in the first year than expected, but less customer are still better than no customers at all.

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Hotel Seeblick Business Plan Finance and budget ASSETS Liquid assets (Cash, Post, Bank) Accounts receivables Beverage inventory Food inventory Land Building Furniture & equipment other assets

LIABILITIES & EQUITY Accounts payables beverage 5,000 Accounts payables food

21,215 36,156

Accrued expenses: 14,143 24,104 1,693,200 6,160,435 431,823 254,946

Mortgage I TOTAL LIABILITIES Share capital TOTAL EQUITY TOTAL ASSETS 8,583,651 TOTAL LIABILITIES & EQUITY Balance sheet for the reopening Seeblick Hotel 2012 Investment Total asset price CHF renovate for massage room in villa CHF 2 building cost for villa area of 1160 m CHF buying new furniture&equipment CHF IT investment CHF Preopenning & working capital 3% of total cost of development CHF The Food and Beverage Inventory & liquid asset CHF total cost for investment CHF take off the the revenue from selling the old furniture &equipment CHF Total Investment CHF The investment cost

5,100,000 5,157,370 3,426,281 3,426,281 8,583,651

Price 4,300,000.00 160,000.00 3,480,000.00 431,823.48 57,178.00

percentage 50.1% 1.9% 40.5% 5.0% 0.7%

197,767.76 43,246.90 8,670,016.14

2.3% 0.5% 101.0%

86,364.70 8,583,651.45

1.0% 100.0%

A. Investment budget As shown in the table investment, the investment budget has a total of 8,583,651 CHF, the renovation cost of the villa is the most expensive development cost, because the building is inside is degenerated in such as way that everything from the inside is not to be used anymore. Therefore the decision has been taken to renovate the whole building by respecting the outer structure .The price of this renovation of the villa derived from a discussing with Mr. Sofia an expert in Mathematics and Architecture to be 3000 CHF/m2. For the IT investment there is no real request but for a good WIFI connection in each of the guests’ room and a software for the restaurant and the reception. Therefore the price of investment will remain quite low with 1000 CHF cost per room (Mr. Millar). 4


Hotel Seeblick Business Plan B. Funding plan propasal The Funding plan is planned by the use of 60% mortgage and 40 % equity. The mortgage from credit Suisse for 15 years has an average interest rate of 3.4%. For the share capital, the rate of return will be set at 10% which is calculated from the risk, the inflation rate and the interests from saving money in the bank. Analytical Balance Sheet Asset Liquid asset Other current assets Total current assets Fixed Assets Total Liability & Equity STL LTL Total liability Equity Total

Current Ratio Net income ROA Return on Equity Payback Profit

2012

2013

2014

2015

2016

312375.1 314216.5 626591.6 8330290 8956882

741842.8 324471.7 1066314 8117842 9184157

892224.5 336751.2 1228976 7903061 9132037

1123742 347860.2 1471602 7770929 9242531

1430171 361028.1 1791199 7636463 9427663

309401.9 4838891 5148293 3808589 8956882

714992.2 4568904 5283897 3900260 9184157

753253.7 4289738 5042992 4089045 9132037

815149.2 4001081 4816230 4426301 9242531

880287.4 3702608 4582896 4844767 9427663

2.02517 8% 7%

1.491365 9% 8% 12%

1.631556 11% 10% 15%

1.805316 13% 12% 18%

2.034789 15% 13% 19%

472530.4

578810.8

746160.4

861095.9

14.11365 382307.7

C. Operating budget For the operating budget it is shown that the business makes profit only during high season. Therefore, if this is wanted to be improved, a lot of money will have to be invested in marketing for getting more customers attracted to both the hotel and the restaurant during low season. D. Cash budget As the details of the cash budget show, there would be enough money throughout the year. However, by a closer look on the liquid assets of the first two months, it will be easily seen that there is not enough cash in the business. The liquid asset in the balance sheet at the beginning is 5000 Chf so it’s better to have 150,000 Chf in the liquid asset for the supplier and other operating cost. E. Break even analysis The break even analysis is calculated by an analytic balance sheet as shown in table. Therefore the break-even year would be in 14 years, as the hotel has a mortgage of 15 years. 5


Hotel Seeblick Business Plan

Contents I Context and Mission ................................................................................................................ 8 Context of the mandate .......................................................................................................... 8 Mission................................................................................................................................... 8 Objectives .......................................................................................................................... 9 II Analysis of the Environment ................................................................................................ 10 A.

Economic................................................................................................................... 10

B.

Socio / cultural .......................................................................................................... 10

C.

Political/Legal ........................................................................................................... 10

III Marketing ............................................................................................................................ 11 A.

Category .................................................................................................................... 11

B.

Swot Analysis ............................................................................................................ 11

C.

Target Market and its expectations ........................................................................... 11

D.

Marketing plan for Seeblick Hotel ............................................................................ 12

IV Concept ............................................................................................................................... 15 A.

Description of the “new” rooms and services ........................................................... 15 The main building (hotel) ................................................................................................ 15 The villa ........................................................................................................................... 15

B.

Description of the restaurant ..................................................................................... 15 Restaurant ........................................................................................................................ 15

C.

Description of 3rd revenue point ................................................................................ 16 The third point of sales will be the Thai massage and the café. ...................................... 16

D.

Description of bar ...................................................................................................... 16 The bar ............................................................................................................................. 16 The 2-storey garage.......................................................................................................... 16

E.

Internal and external décor ........................................................................................ 16

F. Identity and logo ........................................................................................................... 17 V Human resources .................................................................................................................. 17 A.

Structure and organization ........................................................................................ 17 F&B department............................................................................................................... 18 Housekeeping and Laundry department .......................................................................... 18

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Hotel Seeblick Business Plan Administration and front office manager ......................................................................... 18 B.

Job Description.......................................................................................................... 19 F&B kitchen department .................................................................................................. 19 F&B service department .................................................................................................. 20 Housekeeping and Laundry department .......................................................................... 20 Administration and front office Department.................................................................... 21

C.

Recruitment ............................................................................................................... 21

D.

Organizational Training Proposal ............................................................................. 21

VI Finance and budget ............................................................................................................. 23 A.

Investment budget ..................................................................................................... 23

B.

Funding plan propasal ............................................................................................... 24

C.

Operating budget ....................................................................................................... 24

D.

Cash budget ............................................................................................................... 25

E.

Break even analysis ................................................................................................... 25

VII Sustainable development ................................................................................................... 30 A.

The environment ....................................................................................................... 30 The economy.................................................................................................................... 30 The social ......................................................................................................................... 31

B.

Analysis ..................................................................................................................... 31 The environment .............................................................................................................. 31 The economy.................................................................................................................... 31 The social ......................................................................................................................... 31

C. Conclusion....................................................................................................................... 32 C.

Recommendation....................................................................................................... 32

VIII The Risk Management Plan and Exit Strategy ................................................................ 33 IX Appendix............................................................................................................................. 34 A.

Stewarding................................................................................................................. 34

B.

Menu.......................................................................................................................... 36

C.

Marketing .................................................................................................................. 37 SWOT analysis ................................................................................................................ 37 Competition analysis ........................................................................................................ 38

D.

Finance ...................................................................................................................... 40

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Hotel Seeblick Business Plan I Context and Mission Context of the mandate The purpose of the Diploma Project is planning to renovate the existing Seeblick Hotel *** in Faulensee. The Seeblick Hotel is located in a small village on the Lake of Thun at the Bernese Highland which belongs to the community of Spiez in Canton Bern. The plan of the hotel renovation is a part of the individual 18 months project by Diploma in Hotel and Restaurant Management of Ecole Hoteliere De Lausanne. The mandate of the business plan was given by the professors and the external evaluator, including the manager of Seeblick Hotel. The hotel property includes: 1) A villa, situated nearby with 4 floors, currently 24 rooms for employees and a separate 5-room apartment. There is a 2-storey garage with space for 2 cars and a small 2-room apartment above. 2) The villa has a private jetty of 10 berths with 4 indoor berths in the boathouse. 3) A main hotel building, having an accommodation capacity of maximum 23 rooms/45 beds, all with lake view balcony except for 2 rooms 4) A bar building near to the villa with 2 floors The project must be a complete renovation including: a) Choose between to upgrade to a 4* hotel or to keep the3*. b) Accommodation of villa can stay the same or be changed. c) A new concept for the restaurant 156 seats inside / 142 seats lake terrace. d) ISO 14000 standards as well as the local legislation must be respected. e) The establishment must be open all year round. f) Create a third revenue center, which is on the property. g) New concept for the bar. Mission "To be the best three star hotels in Spiez and provide excellent service to customer" Our mission is to make the guests feel at home in an atmosphere of safety, kindness and professional service by providing a serene, caring and joyful place to rest and stay. We 8


Hotel Seeblick Business Plan endeavor to be the best three star hotel or at least in the top 3 of existing three star hotels in Spiez. This is achieved with having a differentiated service and facilities from the competition, by recruiting, training and appreciating talented staff. We do believe that the excellent service provided to our customer will delivery from excellent staff who understand and passion to be in hospitality business. Therefore, our employees are qualified to take their own professional initiatives as well as to follow teamwork efficiently, in order to satisfy customers to the highest level and ensuring best relation with business partners. The facilities are designed to be user-optimized according to customer needs. Our moral is to give our excellent service from excellent staff so that guests’ expectations are met at all times. We also will provide additional activity as our new concept which is a restaurant serving healthy food and a facility offering Thai massage. In additional, our task is to strive for profit in order to cope with the necessary future investments. High quality standards are ensured on one side by investments in modern infrastructure and on the other side by flexible, creative and highly competent staff. By achieving the mission, the hotel will continuously improve its reputation and financial performance. Objectives The hotel will open in January 2012. The renovation of the villa will start in the last six months of 2011 and will end in December 2011. The average occupancy rate for 2012 is forecasted at 45%, which will increase throughout the next 5 years in each by 3% due to the word of mouth and marketing. The restaurant profit will be generated especially during lunch with an average check of 33.- CHF and a table turnover of 1.2 that will increase by 1% per year from 2014 onwards. The marketing strategies will enable the restaurant to have a main market segment with 40% of repeat customers within 5 years. The customer satisfaction will increase due to the new differentiating attributes, as with the constructions, including actions taken for a sustainable development and the improvement in service with investment in human resources.

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Hotel Seeblick Business Plan II Analysis of the Environment A. Economic UBS Swiss Economic Research report published the forecasts for 2012 with an increase in 2.2% in real GDP, an inflation rate of 1.8% and the private consumption to grow by 2.1%. (UBS) “The Swiss economy is enjoying modest growth but medium term prospects are less promising” (International, 2011) Moreover Claude Maurer said that “Consequently, the strong currency is having a bigger impact on tourism than on exporters of goods. Overnight stays by German customers – who are particularly important to Swiss tourism – fell three percent between January and November 2010”. In 2012 the number of German tourists will decrease in the short run because of the effect of the strong Swiss franc. The impact of the strong currency will decrease of foreigners travelling to Switzerland and also the local Swiss will rather travel abroad, taking advantage of the strong currency. B. Socio / cultural As stated by the Euromonitor, the sales of healthy goods and medical services will increase over the forecasted period in line with the increasing numbers of older consumers. The increased interest amongst Swiss consumers in living longer and healthier goes hand in hand with increased sales of products and services that promotes healthy lifestyles. Besides, Switzerland offers a variety of outdoor leisure activities already. Due to the mountainous landscape, many Swiss have a keen interest in hiking and skiing. According to the Swiss national office of statistics, 70% of the population over the age of 14 years-old goes on a walk at least once a week and more than 60% of the population participate in a sport on a weekly basis. Concerning other leisure activities the statistic reports that 90% of the population stated that they meet with friends at least once a week. Out of these nearly 50% are frequently meeting up in bars or restaurants weekly. Technology and internet are very important for the daily life of people nowadays, the number of people who visited e-commerce websites in 2005 reached over two million in 2005 and the number is growing at significant rates, especially travel and hotel industries that have seen ecommerce growth. C. Political/Legal The political and legal structure of Switzerland is divided into Cantons, where each Canton has its own legal system; Faulensee is in the Canton of Bern. The political stability in 10


Hotel Seeblick Business Plan Switzerland is rather high where as the political risks are quite low regarding the statistics from Euromonitor. The legislation is adapted to the consensus of the voter which make the cantons and local communities stronger. Mrs.Giess, the owner of a massage salon in the Canton of Vaud, has given the information that the Canton of Bern has introduced a law that requires permit to spa and massage owners to have a degree in a nursing or medical course. However, the process in acquiring this specific permit takes a long time. This particular law affects the hospitality industry beforehand as it includes a planning process in advance.

III Marketing A. Category The Seeblick Hotel is a three star hotel and a destination hotel. The hotels decoration is divided into a traditional Swiss style in the main building and a modern style in the villa. The hotel also offers a Thai massage package and a healthy diet option in the restaurant. B. Swot Analysis As shown in the SWOT (See Appendix C) we can focus on the weaknesses and threats. For the strengths and opportunities we can keep and improve those points for business. One part of the weaknesses can be solved by an adapted planning by the Human Resources and the other part includes the redesigning of the rooms for being more attractive. We do believe that excellent service will delivery by excellent staff that has a strong passion for hospitality. During the low season the hotel also needs to keep its guests by linking to outside activities such as local festivals or packages for skiing. The hotel must be different from the competitors such as by new products to catch and keep the attention of the customers.

C. Target Market and its expectations Families are an interesting market which makes up to 52% of all the trips in Switzerland: 1) This market consists of mainly Swiss and Germans who are interested in adventure sports and like to collect as many new experiences as possible during their travel. The target market will be the people in the age of 25-45 years travelling with their family and children, as couples or with friends. Their buying power is in the mid market. The

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Hotel Seeblick Business Plan average length of stay is 2-3 nights. The objective of the travel is leisure. Preferred consumer expenditure is mainly on leisure and recreation packages. 2) The market of excursion tourists includes local people in the age of 45-70 who have a strong interest for health, by healthy food such as Thai and Japanese and by healthy body treatment such as the Thai massage. 3) The local people and the companies in Spiez who wants to have the special event such as a birthday, graduation day ceremony a.s.o. make up other market, which are taking care of in the new meeting room in the villa. D. Marketing plan for Seeblick Hotel

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Hotel Seeblick Business Plan WHEN

WHAT

HOW

THREE

Advertising on

Affiliation with Outdoor Interlaken

MONTHS

permanent media

WHY

The location of the hotel close to the adventure activities

Take advantage from the spectacular view of Lake of Thun compare to other affiliated hotel

BEFORE

Advertising on

Affiliation with myswitzerland.

Reputation and trustworthy

Low cast fee

Targeting to the local community

Low cost fee

Rise awareness of target customer (25-45 years)

Targeting to the elderly local

permanent media

Advertising

Spiez & Faulensee Tourist Offices

ONE MONTH

Advertising

Facebook & Twitter

Advertising/

Local newspapert for restaurant &

BEFORE ONE WEEK BEFORE

promotion

massage distributed in Spiez, Faulensee and in the area.

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Hotel Seeblick Business Plan ONE DAY

flyer

BEFORE

Distribute the flyers on the front

Reach target customer

shield of the car at car parking lot

Awareness of reopening hotel and new services

Invite a free cocktail party for 150

Boost short term sales performance;

persons next to the lake with the

Reinforce product and company identity.

Create good relationship among them

Create the loyalty customers

of coop and migros in area of faulensee, interlaken and Spiez. The flyers content the information of the event on the opening day THE OPENING

Event

DAY

most popular DJ in Switzerland and also free Thai foot massages for the first 50 people.

End of first

Invite review

Complimentary the

month

blogger and

accommodation and the package

travel agent SECOND

Direct email to

Ask for feedback and give the

MONTH ON

customer

member card to get the discount of the hotel

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Hotel Seeblick Business Plan

IV Concept A. Description of the “new� rooms and services The main building (hotel) The number of rooms will be 22; three family rooms with 4 capacities and nineteen deluxe rooms with two capacities. The rooms will be decorated in a minimalist contemporary style only with the necessary and simple furniture. The atmosphere of minimalism will be added by the color of the room and an earth tone will be applied onto the furniture. All the furniture will be selected following the standards and criteria of an eco-hotel. The decoration of the dragon-family room will remain the same due to its popularity. The target market of the room in this building will focus on bigger groups such as a family with at least two children or for local and foreigner tourists travelling as a couple. The villa The main target markets of the villa will be the backpackers, solo travelers and young people with the age of 23-30years, having a limited budget and wanting to make new connections. Due to the villa being in a very bad condition it needs to be reconstructed though by keeping the same outer-wall construction. The villa consists of 30 twin rooms. The villa has four floors and the rooms will be distributed among the three upper floors excluding the first floor. There are ten rooms on each floor. The decoration of the rooms will be in a modern style with colorful walls and hanging furniture based again on minimalism. B. Description of the restaurant Restaurant The restaurant has a total capacity to serve around 252 guests with 130 seats inside and 122 seats outside. The decoration stays the same. The smallest room of the restaurant which used to be the breakfast room will be changed into the health diet dining room serving Thai and Japanese food. In this particular part the decoration will be an Asian contemporary style. Nevertheless, the existing European food will be kept the same with one change, by using local ingredients from the area. The Asian food will be only an addition to the existing menu. Please see appendices for all menus and the picture of atmosphere.

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Hotel Seeblick Business Plan C. Description of 3rd revenue point The third point of sales will be the Thai massage and the café. - The Thai massage rooms will be located in the first floor of the villa. The decoration of the room will be in the contemporary style. The products of massage are the body massage, foot massage and the nail spa. -

The café will be located at the corner of the restaurant, next to the parking lot which consists of 25 seats on the terrace and 25 seats inside. The café locates at the comer of the captain room. The café will serve homemade bakery and soft drinks. The special beverage menu will be consisting of healthy drinks (See Appendix B). The café has been chosen at this particular location in order to catch external guests’ eyes.

-

The private jetty of 10 berths will be rent to local at a cost of CHF 1500.- per year per berth.

D. Description of bar The bar The bar opens only as from 5 o’clock in the evening to midnight, serving only alcohol and some complimentary snacks. The target market of the bar will be mainly locals and guests from the villa. The decoration will remain unchanged as it is at the moment: typical Swiss farm. During the day, the bar will be opened and to be used free of charge by the community, with the obligation of buying some food or beverages from the hotel. Moreover, the bar can be adapted into a small meeting room at the same condition of enjoying free space but being obliged to buy food or beverages. The 2-storey garage The 2-storey garage will remain unchanged with the 2-room apartment above becoming a staff’s accommodation. E. Internal and external décor The external decoration of the main building will need repainting and additional decoration for being more attractive. This task will be done by an architect. Apart from the rooms in the main building, the internal of the main building will stay the same. The beautiful external wall of the villa will be kept, though the internal part of the villa will be completely changed according to the points mentioned above. The garden of the hotel I will add the vegetable farm in to the plant.

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Hotel Seeblick Business Plan F. Identity and logo The mountains and the lake have been chosen to be the logo, because those symbols are represented in the spectacular view from the hotel.

V Human resources A. Structure and organization

GM(1)

House Keeping Director (1)

F&B

Head chef (1)

second chef (1) station cook (6)

Head of service (1)

Admin&Front Office Manager (1)

gardener&mainte nance(1)

service(6) room attendant staff(2) cafe(1)

bar(1)

The Organizational chart of the Seeblick Hotel is based on low season and very low season "Our Vision is to be listed in top 3 hotel options from the hotel in Spiez" The vision for the Seeblick Hotel, can be best described as a qualitative vision. It is brief and has a link to the future: to become the top 3 hotel for the tourists. The vision is achievable within 5 years with the renovated rooms and the restaurant, a bar and the third point of sale, secondly by continuously engaging the employees, and following a rigorous business plan. The Beliefs and Values include: working in a safe and serene workplace were recognition is given to employees; Seeblick Hotel will take appropriate actions to achieve a sustainable and eco-friendly environment; employees will exceed customer's expectations throughout their services and positive attitude in all the departments. In the first year the occupancy rate will be 45 %. The occupancy rate in next five years will be 57%. The hotel has three different seasons throughout the year, divided into very low 17


Hotel Seeblick Business Plan season, low season and high season. The number of staff for the organization is based on the occupancy rate of the very low and low season. The extras will be hired during high season. Period

Days

16.Oct-15.May 16.May-31.May and Low Season 21.Sep-15.Oct 1.Jun-20.Sep High Season Table 1 seasons of the hotel

Very Low Season

For the small hotel the staff planning is very important, especially in Switzerland because of the high salaries standard. The staff in Seeblick hotel must be multi-tasking. The manager of the hotel is the one who must work in the financial part of Human Resources and in the Marketing department. There are three main departments; F&B department There is no manager in this department but the executive chef and the executive service will work together. The executive chef will be responsible in purchasing, check stock, staff planning, menu planning and preparing food in the kitchen. The executive service will be responsible in staff planning and the reservation of the external guests for the restaurant, check stock and ordering the beverages. Housekeeping and Laundry department The executive housekeeper will be responsible in managing the rooms, by cleaning, tidying, checking and securing rooms. Any damage or problem notified will need to be communicated with other departments. The Housekeeping manager needs to control the work of the housemen and is responsible for the outsourced linen. Administration and front office manager The executive of this department will be responsible in managing the reception desk and the according tasks, such as: the reservation, the salaries of all the staff, check-in, billing, payments, daily report, check-out, follow-up, handling guests’ complaints, maintaining up-todate reports and records of guests’ history and other data.

Position Standard Standard Period Maids 12-16 rooms 14 8 Hours Fast Food Server 40-80 guests 60 4 Hours Restaurant Server 20-25 guests 22.5 4 Hours Cooks 90-100 orders 95 8 Hours Dishwashers 150-250 covers 200 8 Hours Bartenders $600-$800 sales 700 8 Hours Room Supervisor 50-65 rooms 57.5 8 hours Desk Clerk 100 check ins/outs 100 8 hours Table 2 The standard staff productivity in a three star hotel 18


Hotel Seeblick Business Plan The numbers in the following table were calculated by using the numbers from table 3 above Low Season and Very Low Season High season Position # Position GM 1 GM Admin& front office Manager 1 Admin& front office Manager head chef 1 head chef second chef 1 second chef Staff 6 Staff Head of service 1 Head of service Service 6 Service Café 1 Café Bar 1 Bar Housekeeping director 1 Housekeeping director Gardener & Maintenance 1 Gardener & Maintenance Room attendant 2 Extra Total 23 Total Table 3 The number of staff required in each season

# 1 2 1 1 10 1 12 2 2 1 2 5 40

B. Job Description F&B kitchen department Duties of kitchen staff member (1999, Pauli) Head Chef (Chef de cuisine): The restaurant is in fact the mirror of the Head Chef. He/she has to manage the whole kitchen from menu planning, purchasing, sanitation to dish presentation. Moreover, he/she will be supervising the kitchen brigade and be training them according to the hotel’s needs. Sous Chef (Second – in –command): A sous Chef is like the secretary of the head chef, being positioned just beneath the executive or head chef in the kitchen’s chain of command. Thus, he/she will take over the responsibilities when the executive chef is absent. Station cook (Chefs de partie): A Line cooker who is not in charge of supervising he/she is responsible for various areas within the kitchen. Pantry chef (Garde-manger): A Pantry Cook is responsible for the proper presentation and preparation of all cold appetizers. Also, he/she have to control freezers and refrigerators. Swing cook (Tourant): A Swing cook works everywhere in the kitchen where needed and replaces station chefs on their day off. This person rotates through every different stations of the kitchen and does also work in stewarding

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Hotel Seeblick Business Plan During high season we will hire extras and pay them by an hourly wage and let them work according to the staff planning prepared by the head chef. F&B service department There are three parts of the restaurant which belong to this department, separated into a self service and a cafe. Again extras will be hired based on an hourly wage only during high season. Based on the three outlets and the low season, the staff will be composed in the following manner. -

-

The executive service will be responsible for the following: staff planning, reservation of external guests coming for the restaurant, checking stock, ordering beverages and this executive will have to manage all of the three outlets successfully. 1 person in the bar will be responsible in the mise en place of the bar, managing the stock and keep a close relationship with other department and as well as a friendly and accommodating relationship with customers.

-

1 person is needed in the cafĂŠ, having the same job tasks as the employee in the bar, though adapted to the cafĂŠ

-

6 commis will have a main task in taking orders and in setting up the mise en place of the restaurant, nevertheless also to manage the stock during the day, to keep a good communication with other departments and dealing professionally with customers.

The extras will be hired in times of necessity, where the head of service is taking the decision according to seasons or nee as for a special event. Housekeeping and Laundry department The laundry will be outsourced then the responsible in this apartment will responsible in public area and the guest room, moreover taking care of the Thai massage staff and mise en place for the Massage room. -

-

The executive housekeeper will be responsible in managing the rooms, by cleaning, tidying, checking and securing rooms. Any damage or problem notified will need to be communicated with other departments. The Housekeeping manager needs to control the work of the housemen and is responsible for the outsourced linen. 1 houseman will be working in the garden and in the hotel assuring maintenance and technical tasks to be fixed or overcome. He/ She must know how to clean and make a room by following the SOP’s of the organization. Due to the small business flexibility is a requirement which can be reached by cross training, as it allows for him or her to substitute an other worker. 20


Hotel Seeblick Business Plan -

2 room attendants will be needed for cleaning and making the rooms according to the hotels’ SOP’s adapted to each department. An additional task will be in a room attendant, as a result of cross training, for them to be knowledgeable of how to massage guests.

During the very low season and the low season the occupancy rate will range between 20%-40% (11-22 rooms per day). The executive housekeeper is capable of handling all the rooms by herself then the 2 room attendants will be relieved to focus rather on giving massages than to do the housekeeping job. During the high season, 5 persons will be hired to work as room attendants. Administration and front office Department This department will be responsible in managing the reception desk job and the reservation, the salaries of staff, check-in, posting, billing, payments, daily report, check-out, follow-up, handle guests’ complaints, maintaining up-to-date reports and records of guests’ history and other data; communicate with other departments. C. Recruitment The hotel has decided to recruit 19 staffs who are the current employees of the hotel and to recruit 4 more people. Out of these 4 one person will be hired in the administrative and front office department. The three remaining people will be recruited in the F&B department. D. Organizational Training Proposal Due to the small size of the organization, it is sufficient to start the training proposal training one month before the reopening day. This process will follow the training proposal with all the staff together led by General Manager.

21


Hotel Seeblick Business Plan Training proposal for preopening the Seeblick Hotel TOPIC OF THE TRAINING Company’s culture and values

LEARNING OBJECTIVES

HOW

Understand the values, the mission, the vision and the goals of the company;

Hotel’s manual.

Team building

Understand the importance of working in a team

group exercises and activities

Safety and emergency procedures

Understand and know-how safety and emergency procedures are applied according to appropriate situation

Manuals and activities(demonstrations)

First aid training

Knowhow of first aid procedures

Demonstration, manual

Sanitation and HACCP’S standards Company’s rules and regulations

Understand the importance of hygiene and how to apply and maintain

Manuals and activities

Understand the rules and the regulations of the company

Read the written manual

Departmental procedures

Understand departmental objectives and procedures

job training, manuals

Guest relation

Know how to communicate with customers and handle the customer needs

role play, manual

22


Hotel Seeblick Business Plan

VI Finance and budget ASSETS Liquid assets (Cash, Post, Bank) Accounts receivables Beverage inventory Food inventory Land Building Furniture & equipment other assets

TOTAL ASSETS

LIABILITIES & EQUITY Accounts payables beverage 5,000 Accounts payables food

21,215 36,156

Accrued expenses: 14,143 24,104 1,693,200 6,160,435 431,823 254,946 Mortgage I TOTAL LIABILITIES Share capital TOTAL EQUITY 8,583,651 TOTAL LIABILITIES & EQUITY Table 4 Balance sheet

Investment Total asset price CHF renovate for massage room in villa CHF building cost for villa area of 1160 m2 CHF buying new furniture&equipment CHF IT investment CHF Preopenning & working capital 3% of total cost of development CHF The Food and Beverage Inventory & liquid asset CHF total cost for investment CHF take off the the revenue from selling the old furniture &equipment CHF Total Investment CHF Table 5 the investment cost

5,100,000 5,157,370 3,426,281 3,426,281 8,583,651

price 4,300,000.00 160,000.00 3,480,000.00 431,823.48 57,178.00

percentage 50.1% 1.9% 40.5% 5.0% 0.7%

197,767.76 43,246.90 8,670,016.14

2.3% 0.5% 101.0%

86,364.70 8,583,651.45

1.0% 100.0%

A. Investment budget As shown in the table 4, the investment budget has a total of 8,583,651 CHF, the renovation cost of the villa is the most expensive development cost, because the building is inside is degenerated in such as way that everything from the inside is not to be used anymore. Therefore the decision has been taken to renovate the whole building by respecting the outer structure .The price of this renovation of the villa derived from a discussing with Mr. Sofia an expert in Mathematics and Architecture to be 3000 CHF/m2. The entire furniture & equipment price is based on Ikea prices and from other two American websites especially focusing on Restaurant and Kitchen Equipment. For the IT investment there is no real request but for a good WIFI connection in each of the guests’ room and a software for the restaurant 23


Hotel Seeblick Business Plan and the reception. Therefore the price of investment will remain quite low with 1000 CHF cost per room (Mr. Millar). B. Funding plan propasal The funding amount percentage Accounts payables beverage 21214.59 0.25% Accounts payables food 36155.76 0.42% Mortgage I 5100000 59.42% TOTAL LIABILITIES 5157370 60.08% Share capital 3426281 39.92% TOTAL EQUITY 3426281 39.92% TOTAL LIABILITIES & EQUITY 8583651 100.00% Table 6 the funding plan The Funding plan is planned by the use of 60% mortgage and 40 % equity. The mortgage from credit Suisse for 15 years has an average interest rate of 3.4%. For the share capital, the rate of return will be set at 10% which is calculated from the risk, the inflation rate and the interests from saving money in the bank. Analytical Balance Sheet 2012

2013

2014

2015

2016

Asset Liquid asset Other current assets Total current assets Fixed Assets Total Liability & Equity STL LTL Total liability Equity Total

335485.6 741791.9 780731.1 4838891 4568904 4289738 5174377 5310696 5070469 3813141 3908954 4101513 8987517 9219651 9171982

Current Ratio Net income ROA Return on Equity Payback Profit

1.959032 1.485333 1.625298 1.797329 2.023044 8% 9% 11% 13% 15% 7% 8% 10% 12% 13% 13% 15% 18% 19% 14.0067 386859.5 477127.7 583454.2 750850.2 865832.5

337389.3 771659 926435.5 1161982 1472112 319837.8 330149.3 342485.6 353651.8 366877.7 657227.1 1101808 1268921 1515633 1838990 8330290 8117842 7903061 7770929 7636463 8987517 9219651 9171982 9286562 9475453 843270 909021.3 4001081 3702608 4844351 4611630 4442212 4863823 9286562 9475453

24


Hotel Seeblick Business Plan C. Operating budget For the operating budget it is shown that the business makes profit only during high season. Therefore, if this is wanted to be improved, a lot of money will have to be invested in marketing for getting more customers attracted to both the hotel and the restaurant during low season. D. Cash budget As the details of the cash budget show, there would be enough money throughout the year. However, by a closer look on the liquid assets of the first two months, it will be easily seen that there is not enough cash in the business. The liquid asset in the balance sheet at the beginning is 5000 Chf so it’s better to have 150,000 Chf in the liquid asset for the supplier and other operating cost. E. Break even analysis The break even analysis is calculated by an analytic balance sheet as shown in table. Therefore the break-even year would be in 14 years, as the hotel has a mortgage of 15 years.

25


Hotel Seeblick Business Plan cash receipts Cash expenditures: Expenditures beverage Expenditures food F&B personnel Other expense F&B Room personnel Other expenses rooms Other operating expenses Administrative personnel Other administrative expenses HR personnel Other HR expenses Marketing personnel Other marketing expenses Maintenance & Energy Property taxes & insurance Mortgages I Annuity Mortgages II Annuity Building investments Furniture & eqipment investments Taxes paid

Jan 182,754

Feb 179,701

Mar 198,526

Apr 204,631

May 219,597

Jun 792,498

Jul 813,022

Aug 813,022

Sep 758,187

Oct 210,899

Nov 196,999

Dec 190,640

6,606

6,496

7,176

7,397

7,938

28,646

29,388

29,388

27,406

7,623

7,121

6,891

33,775 51,967 5,255 13,664

33,211 51,099 5,167 13,436

36,690 56,451 5,709 14,843

37,818 58,187 5,884 15,300

40,584 62,443 6,315 16,419

146,463 225,349 22,789 59,253

150,256 231,185 23,379 60,787

150,256 231,185 23,379 60,787

140,122 215,593 21,802 56,687

38,977 59,970 6,064 15,768

36,408 56,017 5,665 14,729

35,232 54,209 5,482 14,254

7,877

7,745

8,557

8,820

9,465

34,157

35,042

35,042

32,678

9,090

8,491

8,217

10,786

10,786

10,786

10,786

10,786

10,786

10,786

10,786

10,786

10,786

10,786

10,786

26,544

26,544

26,544

26,544

26,544

26,544

26,544

26,544

26,544

26,544

26,544

26,544

833

833

833

833

833

833

833

833

833

833

833

833

0 833 0

0 833 0

0 833 0

0 833 0

0 833 0

0 833 0

0 833 0

0 833 0

0 833 0

0 833 0

0 833 0

0 833 0

1,667

1,667

1,667

1,667

1,667

1,667

1,667

1,667

1,667

1,667

1,667

1,667

19,260

19,260

19,260

19,260

19,260

19,260

19,260

19,260

19,260

19,260

19,260

19,260

11,333

11,333

11,333

11,333

11,333

11,333

11,333

11,333

11,333

11,333

11,333

11,333

36,209

36,209

36,209

36,209

36,209

36,209

36,209

36,209

36,209

36,209

36,209

36,209

0

0

0

0

0

0

0

0

0

0

0

0

3,333

3,333

3,333

3,333

3,333

3,333

3,333

3,333

3,333

3,333

3,333

3,333

1,667

1,667

1,667

1,667

1,667

1,667

1,667

1,667

1,667

1,667

1,667

1,667 89,677

26


Hotel Seeblick Business Plan Dividends paid Total expenditures

0 231,609

229,619

241,891

245,871

255,628

629,122

642,502

642,502

606,753

249,958

240,896

326,427

cash variance

-48,855

-49,918

-43,365

-41,240

-36,031

163,377

170,520

170,520

151,434

-39,059

-43,897

135,787

Liquid asset balance

-43,855

-93,773

137,138

178,379

214,410

-51,033

119,487

290,007

441,441

402,382

358,485

222,698

27


Hotel Seeblick Business Plan Room revenue Food Revenue Beverage Revenue massage Boat birth =Total revenue Food Cost Beverage Cost F&B salaries & social charges other F&B expenses Room salaries & social charges other rooms expenses Other Operating expenses =Total operating department expenses =Operating Profit Administrative expenses Human resources marketing Maintenance & energy =Total functional expenses =GOP Property taxes & insurance Building depreciation

Jan 49230 105547 32746 5249 1250 194022 33775 6606

Feb 48407 103784 32199 5162 1250 190802 33211 6496

Mar 53478 114656 35572 5702 1250 210659 36690 7176

Apr 55123 118182 36666 5878 1250 217099 37818 7397

May 59155 126825 39348 6308 1250 232886 40584 7938

Jun 213482 457696 142002 22764 1250 837193 146463 28646

Jul 219010 469549 145679 23353 1250 858842 150256 29388

Aug 219010 469549 145679 23353 1250 858842 150256 29388

Sep 204239 437880 135854 21778 1250 801001 140122 27406

Oct 56812 121802 37789 6058 1250 223711 38977 7623

Nov 53067 113774 35299 5659 1250 209049 36408 7121

Dec 51354 110101 34159 5476 1250 202340 35232 6891

55299

54376

60072

61919

66448

239801

246012

246012

229419

63816

59610

57685

5255

5167

5709

5884

6315

22789

23379

23379

21802

6064

5665

5482

14540

14297

15795

16281

17472

63053

64686

64686

60323

16780

15674

15168

7877

7745

8557

8820

9465

34157

35042

35042

32678

9090

8491

8217

5414

5323

5881

6062

6505

23476

24084

24084

22460

6248

5836

5647

128766

126615

139879

144180

154726

558385

572845

572845

534209

148597

138803

134322

65256

64187

70780

72918

78160

278808

285996

285996

266792

75114

70245

68018

29079

29079

29079

29079

29079

29079

29079

29079

29079

29079

29079

29079

833 1667

833 1667

833 1667

833 1667

833 1667

833 1667

833 1667

833 1667

833 1667

833 1667

833 1667

833 1667

20985

20985

20985

20985

20985

20985

20985

20985

20985

20985

20985

20985

52564

52564

52564

52564

52564

52564

52564

52564

52564

52564

52564

52564

12692

11623

18216

20354

25596

226244

233432

233432

214227

22549

17681

15454

11333

11333

11333

11333

11333

11333

11333

11333

11333

11333

11333

11333

12918

12918

12918

12918

12918

12918

12918

12918

12918

12918

12918

12918

28


Hotel Seeblick Business Plan Furniture & equip depreciation Other asset depreciation =EBIT Interest expense Mortgage I Interest expense Mortgage II =EBT Income tax =Net profit OB retained earnings + Profit = Total available - Dividends declared Balance retained earnings

2510

2510

2510

2510

2510

2510

2510

2510

2510

2510

2510

2510

7082

7082

7082

7082

7082

7082

7082

7082

7082

7082

7082

7082

-21151

-22220

-15627

-13489

-8247

192401

199589

199589

180384

-11294

-16162

-18389

14450

14450

14450

14450

14450

14450

14450

14450

14450

14450

14450

14450

0

0

0

0

0

-35601 -6764 -28837

-36670 -6967 -29703

-30077 -5715 -24363

-27939 -5308 -22631

-22697 -4312 -18385

177951 33811 144140

185139 35176 149963

185139 35176 149963

165934 31528 134407

-25744 -4891 -20852

-30612 -5816 -24796

-32839 -6239 -26600

-28837 -28837

-29703 -29703

-24363 -24363

-22631 -22631

-18385 -18385

144140 144140

149963 149963

149963 149963

134407 134407

-20852 -20852

-24796 -24796

-26600 -26600

-28837

-29703

-24363

-22631

-18385

144140

149963

149963

134407

-20852

-24796

-26600

0

Table 7 Operating short term budget for 2012

29


Hotel Seeblick Business Plan

VII Sustainable development A. The environment According to Global Partnership for Sustainable Tourism report (2010) tourism stakeholders have sought to address the social, cultural and environmental problems associated with tourism through hundreds of isolated efforts around the world, many of these initiatives have shown that if properly managed, tourism can help conserve nature and culture, produce wealth for local communities, countries, employees, and owners and greatly reduce the negative impacts associated with operations. As mention by Hoballah A., (2010) tourism is one of the largest sectors worldwide and that it has a decisive role in the green economy and the natural resources required supporting such a large industry. As mention by Herve B., (2010) the ecotourism represents 10 percent of tourism activities and stressed that both figures are growing. The sustainable tourism initiatives to ensure the various components are taken into account and properly managed. The economy Switzerland is aware of a major contribution to global climate change and the sustainable development is very important so the federation offer the financial fund of 280 to 300 million francs per year for the use of renewable energy renovations and energy by Dasgebaeuduprogramm.ch, (2011). This funding is also for the renovated hotel who lack of fund and because of the rising of energy cost by hotelpower Energieeffizienz in Hotellerie und Gastronomie, (2011). According to Kaldewei GmbH & Co. KG., (2010) the whole property and construction industry have cost only about 20 per cent of the building costs relate to the construction phase and about 80 per cent are incurred as running costs, The Novotel Zurich Airport can save the cost of 78% by replace the Halogen lighting by LED lighting, retrieved from Optimierte Beleuchtung mit LED im Novotel Airport Messe Z眉rich 25 March,2011 http://www.hotelpower.ch/sparmassnahmen/detail/145 The report of Romande Energie Commerce said that L'H么tel des Sources, three-star hotel, was renovated by adding the insulation due to the problem of loss thermal energy which they got the capital payback period of 3.3 years and save the thermal energy cost of 2,614 CHF per year. 30


Hotel Seeblick Business Plan The social Not only the manager or the owner concern to the sustainable development but the key success factor is the employee so the manager has to show the efficient use of energy and build the motivation to the staff after that the know how must be applied in efficiency, by Bundesamt f端r Energie. The other key success of sustainable development is supplier, to make sure that they are committed to sustainable development. Spiez has started the sustainable development since 2000 by following the agenda21 action program for the worldwide implementation of sustainable development. They have a lot of project due to the sustainable development such as the exchange market of Spiezeragenda where the member can exchange their product and service once a month by Spiezer Agenda 21 (n.d.) According to Markoviec V., (2009) there is a growing awareness and activism for sustainability, which increased rapidly in the last two years. Already 50% of Dutch adults show positive attitude towards sustainable consumption. And almost 59 % of consumers say that they would pay more for sustainable products. B. Analysis The environment The hotel is where the place takes people into closer contact with the nature and environment then the manager must reach awareness of environmental problems and conserve the environment. From 2020, new developments in the European Union are to be constructed to produce as much energy as they consume, and to stay in the hospitality the hotel must start to apply the water and energy consumption for sustainable development to be the leader and sustainable in this business. The economy From the fact finding found that the Swiss government supports the hotel build the sustainable development in financial investment, the hotel must take this opportunity quickly and be able to proof the plan and benefit of action plan to get the funding of building program. From the case study initiate the great profit to the business in long run. The social The entire stakeholders are very important key to success the sustainable development plan, the Spiez community exchange market is the good opportunity to the hotel to exchange the

31


Hotel Seeblick Business Plan service of the hotel and also to buy the local products for less Co2 consumption. Being sustainable hotel by saving environment and provide in a way that minimizes environmental impacts are good to the image and branding to the social and also to the client so to choose the reputation supplier is the criteria to success the plan as well. In the reverse way the hotel can play a key role in providing environmental information and raising awareness among tourists of the environmental consequences of their actions. The manger must create the efficiency employee who committed the cause and the effect of problem environmental and put the course of know how to them. C. Conclusion The environment, the social and the economy are the key to get the sustainability and the growth profit in the long run. The awareness of the environment problem is very important according to Konrad O., (n.d.) “sustainability means that present and future persons have the same right to find, on the average, equal opportunities for realizing their concepts of a good human life� so we can say that we must protection the present resource of nature for the next generation. The action plan by using renewable energies such as the sun, the wind must be apply immediately to the hotel. C. Recommendation -

The financial funding for the building program from the Swiss government must be applied.

-

As mention from Bronstein S., (2011) The solar panel with the newest technologies which can turn 70 to 80 percent of the energy from sunlight they receive into electricity which the normal version (photovoltaic cells)are only about 15 percent efficient. Thus the hotel should set the solar panel for the electricity for the lighting and the hot water in house usage. Tritec is the supplier company for the solar panel which Spiez are the client. The company has a lot of reputation customers such as IKEA, Energies Thun AG and also the house of resident in Switzerland, which means that they take the small project too.

-

In the villa concerning to the renovation we must put the insulation to control the heat loss energy and the double glass window which are very useful by reducing cost of 50 to 80 percent by hotelpower.

32


Hotel Seeblick Business Plan -

In the administrative office must take carefully in quantity of useless such as paper and the office material by training and motivation.

-

All the staff must learn know how to use the entire electricity machine.

-

Selecting the suppliers who are committed in the sustainable development in the local area (Speiz community), such as use the local product for all material in the hotel. By using the local product can reduced the CO2 due to the transportation.

-

Using the communication and the media with the sustainable development to communicate to the guest to build the image of the hotel

VIII The Risk Management Plan and Exit Strategy Exchange currency - due to the strong Swiss franc, this currency could become a problem. It could have a great impact on the target market coming from Switzerland and Germany, as the exit strategy is give high discounts as a promotion and an attraction for bringing guests to the hotel. Though, in those days the hotel may lose more profit in the first year than expected, but less customer are still better than no customers at all.

33


Hotel Seeblick Business Plan

IX Appendix A. Stewarding

34


Hotel Seeblick Business Plan

The overall plan and the precise positioning of the equipment to be used in the stewarding activity zone;

35


Hotel Seeblick Business Plan B. Menu Strandhotel & Restaurant Seeblick Faulensee-Interlaken

Dinner Pomelo salad with roasted coconut bits, dried shrimp and garnished with crispy fish *** Imperial soup *** Pan-fried sea bass with mushrooms and tomato sauce on a bed of mashed spinach *** New Zealand Rib eye steak and meat balls with a medley of Thai celery and bean sprouts *** Green Curry of chicken and beef Stir-fried rice noodles *** Selection of regional cheese *** Velvety red waffle filled with cranberries and tangy red fruit sauce

36


Hotel Seeblick Business Plan

The atmosphere of decoration for the healthy Japanese and Thai Zone http://www.rokcooking.com/

C. Marketing SWOT analysis Strength -

There is a lot of number of loyal customer in restaurant. Good restaurant Location next to the lake of Thun with a lake side view Location is not far to the adventure activities which offer in the package

Weakness -

Lack multi-language employer It is not full year business because the hotel is closed every year in 3 months. There is no cooperation between competitors around the hotel The room in the hotel is not attractive, too simple.

Opportunity -

There are a lot of outdoor activities nearby the area, where as the hotel can use activities combine with the product of the hotel to attractive the customer. The Swiss people have high percentage around 70% which use the internet then it is good opportunity to do advertising in the internet. The area has a lot of fresh products and fresh fish in the Lake. There is funds support the financial in the hospitality industry from Canton of Bern.

Threat -

There are high competition hotel in the area and also in Interlaken. Environment lack of night life such as pub or lounge and also the shopping area if we compare with the Hotel in Interlaken.

37


Hotel Seeblick Business Plan -

There are a lot of restaurant next to the Lake where are very near to the Hotel, which have the same theme of food.(high competition) There is a limited condition from local government to improve the asset of hotel.

Competition analysis The hotel where located next to the Lake and three star hotel will be the competitive of the Seeblick Hotel which are Hotel-chalet Bellerive Faulensee, Seerose Hotel, J채gerhof-Hubertus Hotel. Competitive Competition Analysis JagerhofHubertus

Seeblick HOTEL

Restaurant

Swiss traditional Food and healthy Thai and Japanese food

Seerose

Hotel-chalet Bellerive

Swiss traditional food with fresh product in the area, Good view and nice decoration

Swiss traditional food with fresh product in the area, Good view and see through mirror indoor restaurant

Badly design , poor decoration lakeside terrace

A lot of green area, privacy location

FACILITIE S

boat parking/bar

restaurant

Parking /fishing/ Internet available in room

ROOM

Old style

Woody style

Modern style

Old style

RATE

100-200 CHF

100-220 CHF

135-250 CHF

150-200 CHF

COMPETITIVE QUANTITATIVE ANALYSIS NUMBER OF NUMBER OF DIFFERENCE NIGHTS IN 2009 NIGHTS IN 2008 BETWEEN 2008 AND 2009 Seeblick

4688

4783

-1.99 38


Hotel Seeblick Business Plan Jagerhof-Hubertus

2540

2220

14.41

Seerose

2778

1967

41.23

n/a

n/a

n/a

Hotel Chalet Bellerive

Historical currency exchange rates charts

39


Hotel Seeblick Business Plan

D. Finance Forecasted information General information: 1st budgeted year = 2012 Days open high season days low season and very low season days Number of rooms Number of seats in restaurant for high season Number of seats in restaurant for very low and low season Rooms revenue information Occupancy rates

Average room rate Annual increase in average room rate from 2013 onwards Food & Beverage revenue information Average check high season(food) Average check high season(beverage) Annual increase in average check from 2013 onwards Seat turnover high season(Breakfast, lunch & dinner combined)

365 112 253 52 252 112 2012 2013 2014 2015 2016 162 1%

45% 48% 51% 54% 57%

40 10 1% 2012 2013 2014 2015

2.01 2.01 2.02 2.02

40


Hotel Seeblick Business Plan Average check Low&very low season(food) Average check low & very low season(beverage) Annual increase in average check from 2013 onwards Seat turnover high season(Breakfast, lunch & dinner combined)

CafĂŠ Average seat Average check Annual increase in average check from 2013 onwards Seat turnover

2016 27 4 1% 2012 2013 2014 2015 2016

2.03

0.57 0.57 0.58 0.58 0.59

33 10 0.01 2012 2013 2014 2015 2016

BAR number of seat per day Average check Annual increase in average check from 2013 onwards Annual increase in number of seat per day from 2013 onwards Massage number of seat per day Average check Annual increase in number of seat per day from 2013 onwards Boat Birth parking fee per year Cost of goods sold Food cost (in percent of food revenue) Beverage cost (in percent of beverage revenue) CafĂŠ cost Bar cost Number of employees average per year Average salary Number of months paid

32% 22% 32% 22% 21 4693 13

Annual increase in salary from 2013 onwards

1%

Social charges (employee contribution) Social charges (employer contribution ) Other operating expenses F&B (in % of F&B revenue), paid within the year Rooms expenses Number of employees average per year Average salary Number of months paid Annual increase in salary from 2013 onwards Social charges (employee contribution) Social charges (employer contribution ) Other operating expenses rooms (in % of room revenue), paid within the year Other operating expenses (in % of total revenue) Administrative expenses

15% 18%

0.52 0.52 0.53 0.53 0.54

35 15 1% 10% 5 72 10% 10 1500

inflation rate

0.038 5 4883 13 1% 15% 18% 0.16 0.028

41


Hotel Seeblick Business Plan Administrative personnel average per year Average salary Number of months paid Annual increase in salary from 2013 onwards Other administrative expenses (paid within the year) Annual increase from 2013 onwards Other HR expenses (paid within the year) Annual increase from 2012 onwards Other Marketing expenses (paid within the year) Annual increase from 2012 onwards Property taxes & insurance (constant each year), paid within the year Maintenance & Energy (in % of total revenue) Depreciation (linear) Building Furniture & equipment Other assets Replacement investments Building: Furniture & equipment: Mortgages Mortgage Return to shareholders Dividends (in % of total equity), paid in the following year Other information: Accounts receivables payment delay Accounts payables food payment delay Accounts payables beverage payment delay Food inventory turnover Beverage inventory turnover Social charges payment delay Other operating expenses payment delay Maintenance & Energy payment delay

2.3 9901 13 1% 10000 1% 10000 2% 20000 1% 136000 5% 40 15 3

years years years

40000 20000 Annuity 434509

Interest 3%

0.1 20 15 45 10 30 90 30 30

days days days days days days days days

42


Hotel Seeblick Business Plan

Room revenue Food Revenue Beverage Revenue massage Boat birth =Total revenue Food Cost Beverage Cost F&B salaries & social charges other F&B expenses Room salaries & social charges other rooms expenses Other Operating expenses =Total operating department expenses =Operating Profit Administrative expenses Human resources marketing Maintenance & energy =Total functional expenses =GOP Property taxes & insurance Building depreciation Furniture & equip depreciation Other asset depreciation =EBIT Interest expense Mortgage I =EBT Income tax =Net profit OB retained earnings + Profit this year = Total available - Dividends declared Balance retained earnings

Balance sheet 2012 2013 1282367 1388444 2749344 2775992 852994 880585.6 136740 150414 15000 15000 5036445 5210436 879790.1 888317.5 172073.9 178009.4 1440468 1454873 136888.8 138950 378752.8 382540.4 205178.7 222151.1 141020.5 145892.2 3354173 3410733 1682272 1799703 348950.4 352439.9 10000 10200 20000 20200 251822.2 260521.8 630772.7 643361.7 1051499 1156341 136000 136000 155010.9 156010.9 30121.57 31454.9 84981.92 84981.92 645384.8 747893.1 173400 164522.3 471984.8 583370.8 89677.11 110840.5 382307.7 472530.4 0 382307.7 382307.7 472530.4 382307.7 854838 380858.9 382307.7 473979.2

2014 1496515 2824244 914924.1 165455.4 15000 5416139 903758.2 185128.1 1469422 142088.4 386365.8 239442.4 151651.9 3477856 1938282 355964.3 10404 20402 270806.9 657577.3 1280705 136000 157010.9 32788.23 84981.92 869924 155342.8 714581.3 135770.4 578810.8 473979.2 578810.8 1052790 390026 662763.9

2015 1606608 2852487 947691.4 182000.9 15000 5603787 912795.8 192175.4 1484116 144406.8 390229.4 257057.3 156906 3537687 2066101 359524 10612.08 20606.02 280189.4 670931.5 1395169 136000 158010.9 34121.57 0 1067037 145851.1 921185.7 175025.3 746160.4 662763.9 746160.4 1408924 408904.5 1000020

2016 1718754 2901916 987768.1 200201 15000 5823639 928613.1 200545 1498957 147808 394131.7 275000.6 163061.9 3608117 2215521 363119.2 10824.32 20812.08 291181.9 685937.6 1529584 136000 159010.9 35454.9 0 1199118 136036.7 1063081 201985.4 861095.9 1000020 861095.9 1861116 442630.1 1418486

43


Hotel Seeblick Business Plan

cash receipts Cash expenditures: Expenditures beverage Expenditures food F&B personnel Other expense F&B Room personnel Other expenses rooms Other operating expenses Administrative personnel Other administrative expenses Other HR expenses Other marketing expenses Maintenance & Energy Property taxes & insurance Mortgages I Annuity Building investments Furniture & eqipment investments Taxes paid Dividends paid Total expenditures cash variance Liquid asset balance

CASH BUDGET 2012 2013 4760475 5200902 172073.9 879790.1 1353656 136888.8 355926.6 205178.7 129429.7 318523 10000 10000 20000 231124.5 136000 434508.9 40000 20000 0 0 4453100 307375.1 312375.1

177705.3 888191.1 1454005 138950 382312.1 222151.1 145491.8 342135.7 10100 10200 20200 259806.8 136000 434508.9 40000 20000 89677.11 0 4771435 429467.6 741842.8

2014 5404867

2015 5593505

2016 5811592

184823.6 903538.9 1468545 142088.4 386135.2 239442.4 151178.5 345557 10201 10404 20402 269961.6 136000 434508.9 40000 20000 110840.5 380858.9 5254486 150381.7 892224.5

191886.5 912679.2 1483230 144406.8 389996.6 257057.3 156474.2 349012.6 10303.01 10612.08 20606.02 279418.2 136000 434508.9 40000 20000 135770.4 390026 5361988 231517.1 1123742

200187.6 928388.8 1498063 147808 393896.5 275000.6 162555.9 352502.7 10406.04 10824.32 20812.08 290278.4 136000 434508.9 40000 20000 175025.3 408904.5 5505162 306429.7 1430171

44


Hotel Seeblick Business Plan

BALANCE SHEET 2011 2012 Asset Liquid assets Accounts receivables Beverage inventory Food inventory Land Building Furniture & equipment Other assets TOTAL ASSETS Liabilities & Equity Accounts payable-beverage Accounts payable-food Accrued expenses: Other operating expenses Maintenance & energy Social charges F&B Social charges rooms Social charges administrative personnel Dividends payable Income taxes payable Mortgage I Total liabilities Share capital retained earnings Total Equity TOTAL LIABILITIES & EQUITY

2013

2014

2015

312375.1 275969.6 14143.06 24103.84 1693200 6045424 421701.9 169963.8 8956882

741842.8 285503.3 14630.91 24337.47 1693200 5929414 410247 84981.92 9184157

892224.5 296774.7 15216.01 24760.5 1693200 5812403 397458.8 0 9132037

1123742 307056.8 15795.24 25008.1 1693200 5694392 383337.2 0 9242531

1430171 319103.5 16483.15 25441.45 1693200 5575381 367882.3 0 9427663

21214.59 36155.76

22006.51 36515.8

22896.15 37158.13

23764.27 37522.33

24809.53 38179.99

11590.72 20697.72 86812.37 22826.21

11991.14 21412.75 87680.49 23054.47

12464.54 22258.1 88557.3 23285.02

12896.39 23029.26 89442.87 23517.87

13402.35 23932.76 90337.3 23753.05

20427.45 0 89677.11 4838891 5148293 3426281 382307.7 3808589 8956882

20631.72 380858.9 110840.5 4568904 5283897 3426281 473979.2 3900260 9184157

20838.04 390026 135770.4 4289738 5042992 3426281 662763.9 4089045 9132037

21046.42 408904.5 175025.3 4001081 4816230 3426281 1000020 4426301 9242531

21256.89 442630.1 201985.4 3702608 4582896 3426281 1418486 4844767 9427663

45


Hotel Seeblick Business Plan

Earning before interest & tax (EBIT) -Tax Depreciation Capex (=investments) -variance of WCR FCF

Current assets STL WCR WCR variance

Free cash flow 2012 2013

2014

2015

2016

645384.8 89677.11 270114.4 60000 23938 741884

747893.1 110840.5 272447.7 60000 -395335 1244835

869924 135770.4 274781 60000 -25982 974916.6

1067037 175025.3 192132.4 60000 -50786.5 1074930

1199118 201985.4 194465.8 60000 -51970.3 1183569

2011 38246.9 57370.35 -19123.4

2012 314216.5 309401.9 4814.553 23938

2013 324471.7 714992.2 -390521 -395335

2014 336751.2 753253.7 -416503 -25982

2015 347860.2 815149.2 -467289 -50786.5

Rate

Average 60% 40%

Net Kd 3%

TOTAL

2016 361028.1 880287.4 -519259 -51970.3

calculating the WACC Mortgage I Equity Total

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Amount 5100000 3426281 8526281

3% 10%

6%

Sale distribute for 2012 4% 4% 4% 4% 5% 17% 17% 17% 16% 4% 4% 4% 100%

Table shown the sale distribution of the revenue for 2012

46


Hotel Seeblick Business Plan

X Reference

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50

Seeblick Hotel Business Plan  

Renovation of the Seeblick Hotel