HATM 4607 Assignment: Business Plan For The Hamilton Hotel

The Hamilton hotel
Business plan for the Hamilton hotel
Institutional affiliation
Date
Name
Email address
Table of contents
1 Executive summary
* Introduction
* Mission and vision
* Products and services
2 Industry description
* Introduction
* Factors affecting the industry
* Specification areas
* Anticipated reaction
3 Business description
* Services and products offered
* Management
* Labor source
4 Opportunities
* How much market will buy and the future
* Why people need the services
* Longevity and plans for modification
5 Production plan
* Introduction
* Specifications for the one bedrooms
* Specifications for the two bedrooms
* Location and expansion plans
* Employees
6 Marketing plan
* Introduction
* Competition
* Technology
* Action plan
7 Financials
* Source of funds and expected repayments
* Economic assumptions
Executive summary
Introduction
The Hamilton Hotel will be based in Hamilton a port city in the province of Ontario in Canada. It is a commercial hotel with the sole goal of providing quality services to the clients. When constructing the hotel, the design will be more theme based compared to other hotels owned by the Hamilton group of companies. The hotel belongs to a corporation so it must provide quality services to ensure that people continue using our products and services. Competition in the Hamilton area is stiff because of the old companies that already exists there and seem to have occupied the market, however, outdoing our competition will be based on theme based rooms which will give us an advantage over the competitors. It will be managed by a single CEO, but all the final decisions must go through the board of directors. Based on the amount of quality the company is willing to offer it is most likely that the hotel will be a success. According to numerous reports by the organizations scouts other hotels in the area lack theme-based rooms and activities which are an opportunity not to be left behind.
Mission and vision
The Hamilton Hotel has the following mission and vision:
Mission- to be the world’s most friendly hotel and this is through the creation of theme based and heartfelt experiences for guests, great opportunities for team members, create high value for stakeholders while at the same time creating a positive impact in the community/society.
Vision- to make sure that the world is filled with the light and warmth that originate from hospitality and this is through delivering exceptional experiences by providing the best theme based holidays. Every hotel, every theme, every guest at a time.
Products and services
The hotel will be providing accommodation for guests and tourists. Moreover, it has quality self-contained rooms with free breakfast. Rooms will have specific themes, and guests will be given the theme they ask for or the one that is most suitable for them. Since it is expected to be a five-star hotel, it will require approximately $10 million to build since the company plans on acquiring the land to build on rather than getting a lease contract. This money is expected from the stakeholders of the corporation. Additionally, the company is selling a few shares to raise funds for the construction of the new project. A combination of the two sources of funds will still not be enough to build the hotel, so donations are also expected from well-wishers and if that is not sufficient the company will acquire loans since it already has a positive reputation.
Industry description
Introduction
The hotel industry in Hamilton has existed for a long time, and it majors in all the four sectors of hospitality. The four segments include; lodging, travel and tourism, recreation and food and beverages. The food and beverages sector is also referred to like the food service industry, and it consists of businesses that are involved in the preparation of food and eateries for customers. It is also the largest hospitality sector in the country, and it is additionally estimated to provide for 50% of the meals taken in the country (Barrows, Powers, & Reynolds, 2012). Lodging is also referred to as accommodation, and it is the provision of places where people can sleep for a day or more. A business in the lodging industry is one that provides accommodation to guests for a night or more. A player in this field can range from a fancy hotel to small luxury rooms. Recreation can be described as any activity that people do to either enjoy themselves, rest or relax. The primary goal of recreation activities is to ensure that the body is relaxed and that the body and the mind are refreshed because as the saying goes too much work without play makes Jack a dull boy. Any company that offers services that are related to recreation activities is in the recreation industry. The recreation industry is one of the most diverse industries in the world, and this is supported by the fact that different people have different opinions on what to do to relax their body and mind. The industry additionally has four general branches that are participatory sports, attractions, entertainment and spectator sport. These are just the general ideas that people have because as stated earlier people have different ideas on how to relieve stress and this has led to diversity in the industry.
Factors affecting the industry
Competition is affecting the industry as people are coming up with new ideas to offer the same services every day. Some are even cutting on labor costs by replacing manual labor with machines which are more efficient and cheap. The industry is also affected by social, cultural, environmental and demographic factors. Social factors mainly have to do with the surrounding community whereby the company is not widely accepted. For this reason, most companies often opt for corporate social responsibility. Cultural factors affecting the industry also have to do with the surrounding community or the internal culture of the company. Some communities believe in certain norms that they believe are morally wrong. These actions may lead to the development of a negative attitude towards the company by the surrounding community. It is important to ensure that the culture and social norms of the community are put into consideration before any company starts. Some companies have a reputation of having conflict with the surrounding community and this is an example of an internal culture that is also affecting the industry. Geographical factors also matter a lot in the industry whereby people prefer specific locations over others. For example, the Hamilton hotel will be constructed in an area next to a famous attraction ‘The Waterfull’ which is a tourist attraction. This shows that the area is a prime location for the business. The geographical factors are very crucial for the success of any business in the hotel industry. Environmental factors also affect the industry whereby if the hotel is located next to a dump site it will have fewer guests compared to the one built in a clean and conducive environment.
Specification areas
The Hamilton hotel will try to venture into all the sectors, but it will most focus on recreation and tourism. These are the areas that the company has identified since other competitors are still trying to focus on them or have done little to specialize. The hotel will be theme based so as to ensure that the guests get the recreation time they need to be offered at the best quality. The hotel will also be situated next to a major tourist attraction in the region and for this reason, will also be targeting tourists who visit the area. According to research by the company, the number of tourists visiting the area has been increasing over the years and is expected to continue rising in the future. The major advantage that the business has over the other competitors is the theme based rooms where people can choose the theme they deem fit for them. The competitors include the barracks inn and the Osler house. These are some of the hotels that have decided to venture into theme-based rooms but have not yet fully accomplished it. The main idea of the Hamilton hotel is to create a theme for people to enjoy while at the same time giving tourists the time of their life.
Anticipated reaction
There are some anticipated reactions from our competitors after construction, for instance, they are expected to lower their prices to get more clients. However, this will not become a problem since the organization plans to offer slightly lower prices than the competitors. This is a marketing strategy that will enable the hotel to get more clients. Once the hotel has become popular then the prices will get back to average however the company does not plan to exaggerate prices once it has achieved the targeted figure of guests.
Business Description
Services and products offered
The Hamilton is expected to be the biggest five-star hotel in the region that offers theme-based rooms. It will be offering accommodation rooms where people can spend the night or several nights. It will also get involved in the food and beverages industry since it has to provide meals for the guests. Here the management wants to hire some of the best chefs in the world to ensure that the clients are fully satisfied. It will also get involved in the tourism industry, and this is advantageous since it is located next to a big tourist attraction site. The company, however, plans to put more concentration on theme based rooms and recreation activities. Theme based room means that if a person has visited the facility to watch a race, then their room will have a theme based on the race they came to see. If a guest came for another event, then their rooms will be based on the event they came to attend, and this will give them a magical experience of the event they came to see. For instance, the tourists who come to see the Waterfull tourist attraction site will have a theme that portrays the tourist attraction. Since the Hamilton Company is involved in the production of other goods, they will be available for purchase at the hotel. For instance, the company is involved in the production of maple syrup so people will get a taste of the syrup but at a discounted price. In the fridges available in the rooms all the goods produced by the company will be sold at a reduced price.
Management
As earlier stated the company would be headed a CEO who will be chosen by the board of directors. The board of directors will conduct interviews to see who is best fit to lead the company. The CEO will be answerable to the board of directors and is charged with making decisions on how best to run the company on a daily basis. However, the authority of the CEO is limited. The board of directors has the final word on every big decision facing the company. The CEO will be charged with making small decisions but maintains the most authority in the company. The following are the qualities above the academic qualifications that the CEO should possess; he/she should be time oriented, possess leadership skills, focused and passionate about the job. Under the CEO will be different managers will be responsible for various functions of the business. For example one manager for the food and beverages sector. This division of labor is effective to ensure that there is minimum confusion in the organization. Under the managers will be assistant managers who will be responsible for various branches in the departments. Each branch will have supervisors who are responsible for watching over the other workers. This seems like a simple business structure, but it is very effective. It ensures that people are responsible for their actions and that there is transparency in the company (Olsen, Tse, & West, 2012).
Labor source
As the business expands, there are also plans to ensure that the company always gets the best labor in the market. The only way of accomplishing this is ensuring the opening of a training sector which people join to learn about the hospitality industry. The sector will be a training sector where additional training will be offered for interviewees. After passing interviews, people will be taken to the institution to further their studies where only the best will be selected. This is an effective strategy that will ensure that the organization receives skilled employees which are an added advantage to the competitors. The company has already sought the advice of top lawyers and other professionals in the hotel industry to ensure that nothing is against the law. Different places have different laws, and this was the reason for seeking the advice of lawyers and other legal professionals (Barth, 2012). The starting of the institution will also act as a good corporate social responsibility action since the neighboring community will have a chance to be enrolled in the institution and receive training. Even if they will not be selected to work for the company the knowledge and skills they receive will be sufficient to ensure that they get employment e...