A thousand star lodging and retreat hotel

CHAPTER I-INTRODUCTION 1.1 Business concept Bubble hotel is a spherical lodging concept that when people stay in the transparent room, they will be surrounded by nature with an unblocked view for a sensation of freedom Each bubble will be located in a private garden surrounding with fences to ensure total privacy for the most freely and comfortable stay The customized bubble tent is placed on a wooden platform, and to keep the bubble in shape while still maintain the quiet atmosphere, a noiseless ventilation system is equipped which helps to refresh the air continuously to prevent humidity and stuffiness This type of accommodation is very small in size, special design with extremely unique experience for those who lodge in, it can be considered as boutique hotel concept There are not many bubble hotels in the world and their price is the same as (sometimes is higher) 4-5star hotels, they still attract a lot of customers who are looking for unique and unforgettable experience of a romantic retreat with their lover or spouse that they can not get when staying in the traditional hotel room The price of current bubble hotels around the world ranges from $130-$400/night with different level of facilities and services 1.2 Products & services At “A Thousand star lodging & retreat” hotel, we offer our guests all luxury suite bubble rooms with full separated living room, bedroom, private jacuzzi tub, bathroom, safety box, minibar, dining area and ecofriendly amenities such as Gleditsia & pomelo shampoo and conditioner, handmade soap, bamboo brush, essential oils,… In addition, we also provide all in room dining food & beverage service which inspire local cuisine for an authentic taste; Spa service with basic treatment services such as massage, skin care, soak tub, sauna room…with all organic, eco-friendly amenities and ingredients for customer health and environment protection purpose; laundry service with appropriate price for those who want their clothes are daily washed and ironed The aim at including these services is saving time for customer which helps to increase convenience for their stay This factor will significantly contribute to guests’ overall satisfaction enjoyment and also indicate our genuine care for customer comfort 1.3 Business context (vision, mission, value) -Vision: +Be a pioneer hotel that use eco-friendly amenities + A Sustainable-developed business model, emphasis on protecting and encouraging action to preserve environment, corporate with local residence, create job and income for them +Help people reconnect with themselves -Mission: + Provide 4R “Relax-Retreat-Renew-Refresh” venue +Pursue sustainability +Encourage people to get out from virtual world and enjoy real moments -Value: + Get back to nature +Responsible travel +Genuine care and comfort 1.4 Major technologies & facilities required To operate a “A Thousand-star lodging & retreat” hotel with spa and food & beverage services, there are many facilities and technologies that are required for an appealing physical evidence, effective operation and management activities such as: The hotel needs typical items as below: -Room: Customized bubble tent with blower system, comfortable bed; mattress; soft pillows & blanket; minibar, safety box, jacuzzi tub, sofa & table for living room… -Kitchen: fridge, stove, microwave, food preparation table, food trolley, dining wares… -Bar: Electrical kettle, juice press machine, glass… -Spa: Spa bed & mattress, soak tub, sauna room… -Housekeeping: Amenities trolley, cleaning equipment, linens, washing machine, frying machine, iron, hanger for guest laundry -Front office: reception desk, sofa and table for guests to sit, computer, passport scanner, EDC machine, safety box… -Staff Area: locker cabinet, dining tables & chair… -Technology: hotel management software (Ezfolio), Restaurant management software (Cukcuk), Spa management software (Salon Hero), Website with reservation ad payment system (prepared by Nector agency), Security camera, Internet & Wi-Fi system… 1.5 Key value customers & stakeholder groups At “A Thousand star lodging & retreat”, our customers not described as much by demographic elements such as age, occupation, income level…but by their interest, preference and attitude They are curious travelers who are strived for unpredicted, surprised experience and are not afraid to spend more money for the services They don’t travel to follow the trend but expect to explore something very different than usual concept that are popular In addition, our key customers are also a nature-lover who prefer connection with natural environment for relaxation, get more fresh energy to heal their mind and body Stakeholders that involve in our hotel operation are customers, government, local resident, employee, investors, suppliers To operate our business smoothly, we should better maintain a good relationship with them For government, we should pay all of tax liabilities, project the environment as well as ensure safety and security For customers, besides providing a pre-encounter service, we will go extra miles for a personalized service to make them feel more special and are well treated which will enhance the level of happiness and satisfaction For local resident, we build a relationship with them by creating jobs for them to earn more income and also bring more tourists to the area to improve its economy For employees, we created a very open and welcomed working culture to make them feel motivated; furthermore, good training plan, sufficient benefits, salary payments follows labor law and a well-design rewards policies are what we will to build a strong workforce and increase job satisfaction For investors, we commit for a smooth operation with attractive profit and return on investment ratio for them And for suppliers, we will discuss together to come up with contract terms that create win-win situation for both sides; in addition, if their products are high and consistent in quality, on time delivery, we will consider to give them incentive at the end of the year for their performance CHAPTER II: ECONOMIC ENVIRONMENT 2.1 Market Conditions Da Lat-founded in 1893 by Dr Alexandre Yersin, is situated on Lam Vien plateau, Lam Dong province in Central Highland of Vietnam, which is endowed by nature with an all year-round cool climate (average temperature is 20.4ºC) and surrounded by breathtaking landscape Since it has special climate characteristic, distinctive architecture, and numerous natural attractions, Da Lat has become one of the most ideal destinations in Vietnam (Pike, 2018) and is well-known for many prestige name such as “The city of love”, "City of Eternal Spring", “Dream city”,…In 2016, The New York Times recommended Da Lat among 52 places to visit (TheNewYorkTimes, 2016) Besides, Da Lat was ranked as 4th position of 10 emerging Asian destinations in 2017 voted by TripAdvisor (Vietnamtourism, 2017) In addition, Da Lat was named as 8th rank among best spring destination in Asia by MSN (VietnamInvestmentReview, 2019) Moreover, in June 2019, in the 33rd Executive Committee Meeting of Asia-Pacific Tourism Promotion Organization (TPO), international tourism organization for the networking of inter-cities cooperation and development of the tourism industry in the Asia Pacific Region, held in Jarkata (Indonesia), cities members agreed to enroll new member cities including Da Lat (Vietnamtourism, 2019) Along with ranges of achievements, the number of tourists in Da Lat keeps growing year by year The latest-updated statistic shows that in 2018, Da Lat welcomed 6.5 million tourists (increased 10,3%), total income from tourism services increased 10,2% in comparison with the same period of previous year (Nhandan, 2018) Number of tourists (Million VND) 2015 2016 2017 2018 3.6 5.4 5.9 6.5 Table 1: Number of tourists in Da Lat from 2015-2018 (Source: Vietnamtourism) Together with the rapid increasing in number of tourists, Da Lat is always in overload condition during peak season Although the number of Da Lat’s tourists is nearly equal to that of Nha Trang, Da Nang and even 3-times more than Phu Quoc, the number of existing hotels as well as suppliers of lodging services there can’t compare with these of above cities (Vnexpress, 2019) As given statistic in 2017, Da Lat had 815 lodging establishments providing 13,786 rooms, in which, 291 1,5-star hotels with 8,207 rooms( 25 3,5-star luxury hotels & resorts with 2,475 rooms) (Vietnamtourism, 2017) and 252 properties providing 2,024 rooms were operated as the concept of “Homestay” (accounts for ¼ of Da Lat lodging business) (Baolamdong, 2017), Figure 1: Number of tourists and hotel room in four destinations (Source: Vneconomy, 2019) According to the report of customer statistic, 66% of international tourists travel to Da Lat are come from Singapore, Thailand, Australia and American (the most popular one is Singapore with more than 1,200 turns of visit per month) For domestic, Ho Chi Minh city is the most important source of Da Lat’s tourists (nearly 4,000 visitors per month) This is because Ho Chi Minh city is the biggest city in Vietnam (the population nearly reach million people) with high standard of living, plus the advantages of geographical distance not very far from Da Lat (the distance is 300km, it takes from 6-7hrs travel by car or bus and 45 minutes by plane) (Luxstay, 2019) As other destination, Da Lat also has high season and low season due to its weather condition From November to March is the dry season, and rainy season takes place between April and October The best ideal occasion to travel to Da Lat is between December and March because in this time, tourists can enjoy many types of flower bloom such as wild sunflowers, cherry blossom, purple phoenix flowers,…And every two years, in December, Da Lat flower festival is taken place and usually attract hundred thousand of tourists to visit (Vtv.vn, 2017) However, in every public holiday occasion, demands for accommodation always exceed supply although the price is increased triple in comparison with normal day, some tourists had to sleep in a tent around Ho Xuan Huong lake (Dulich.tuoitre, 2019) And the destination itself is always so suffered from overload of tourist that after they come back home, Da Lat become a garbage dump (Phuong, 2019) 2.2 Economic Conditions In recent years, Da Lat's socio-economy has been transformed remarkably developed as crucial economic center of Central highland, the city economy mostly focuses on tourism, service and agriculture development (Nhandan, 2019) In 2016, total retail sales and social consumption service revenue were estimated nearly reached 12,000 billion VND’ international tourists grew 12% in comparison with 2015; gross regional domestic product (GRDP) of Da Lat exceeded 9.4% and in economic structure was: servicetrading accounted 65%, industrial-construction accounted 17,4% and agricultural accounted 17,6% (Baolamdong, 2016) After that, the provincial 2018 socio-economic situation assessment and implement strategy for 2019 conference stated that overcoming the regular difficulties of the country, the economy of Lam Dong still achieved many important results in 2018; economic structure shifted towards positive; income and residence life enhanced, 18/18 socio-economic targets were met and exceeded The economy development reach 8.6% in which tourism-service sector increased more than 12%; average capita income is 60 million VND, investment and social development capital increased 12,1% (26,340 billion VND); total export reached $ 661 million (increased 20%); number of tourists increased 10% This result is a positive signal, creating new development for 2019 (Lamdongtv, 2018) Moreover, Da Lat authority has many plans for investment in expanding road, building shopping mall and urban planning for city center in order to develop Da Lat as a civilized and friendly city with high quality of service (Vneconomy, 2018) Especially, in 2019, Dau Day-Lien Khuong highway project will be on progress After completing, it will help to reduce pressure for 20 route (From Dau Giay-Dong Nai province to Da Lat city) and the time to drive from Hochiminh city to Da Lat city is cut to only hours which makes it faster and more convenient for tourists to travel from Ho Chi Minh city Furthermore, on 25th December 2018, Lam Dong Provincial People's Committee announced the scheme "Building Da Lat city as a smart city" in period from 2018 to 2025 in sectors: agriculture, tourism, safety, environment, education, medical and traffic (Thoibaotaichinhvietnam, 2018) The implementation of a smart city project is a great chance for Da Lat to widely apply latest science and technology into all aspect of social life so as to both solve current and future problems and strive for breakthrough socio-economic development, in accordance with the city development orientation: modern, convenient and sustainable (Saigongiaiphong, 2018) 2.3 Historical & Future trends It was 125 years since Da Lat was found and chosen as relaxation destination Owing to favorable weather, topography conditions and tourism demand, hotel business in Da Lat has changed constantly together with history flow In 1907, the very first inn was established, later it became Hotel Du Lac (currently is Da Lat radio and television station) 11 years later, a fully-facilities-equipped hotel was launched with the name “Hotel du Langbian Palace” (currently is Dalat Palace Hotel) At that time, this is the most luxurious hotel in Da Lat with elegant and vintage interior furnished following French colonial style; it had telephone, fireplace, hot water bathtub for each room, restaurant, honorary lounge for politicians and guests to hold meetings After Hotel du Langbian Palace, there were many new hotels but in small size, mostly run by Da Lat local residence and situated in the city center around Ho Xuan Huong lake, Hoa Binh area or main streets such as: Bui Thi Xuan street, Nguyen Chi Thanh street, Nam Ky Khoi Nghia street,…(Baolamdong, 2014) In the first decade of the 2000s, there were more hotels launched serving for up-scale market such as Ana Mandara villas (2006), TTC hotel premium Ngoc Lan (2007), Sammy Da Lat (2008), Monet garden (2008), Saigon-Dalat hotel (2008), La Sapinette (2009),… Besides city center, in recent years, in Tuyen Lam lake tourism site also developed This area has been designed to develop luxury hotels and resorts Da Lat Edensee resort (2011) is the very first one among 30 projects surrounding Tuyen Lam lake, following by Swiss-Belresort (2013), Sam Tuyen Lam resort (2013), Terracotta da Lat (2015),…And on 15 February 2017, Prime Minister Nguyen Xuan Phuc issued decision that officially recognized Tuyen Lam Lake tourist site as national tourism site (Dantri,2017) which pull more attractiveness foe both tourists and real estate investment Apart from mid-range and up-range hotel and resort, since years ago, boutique hostel concept that everyone usually call “homestay” has been booming in Da Lat and attracted mostly young tourists those want to discover and experience different accommodation type that inspires peaceful atmosphere beside traditional hotel (Vtv.vn, 2017) They vary in concept from boho style, vintage, wine cella, pipe, farmstay…and their locations range from city center to suburb and remote area with price starts from 300,000 VND/night for private room and from 150,000 VND/night for dorm “Homestay” customers tend to prioritize unique concept, decoration when choosing accommodation for their stay Some “homestay” is cheap and affordable for those who have limited budget but there are also “up-scale homestay” are located in distinctive place with amazing view charged high price such as: The Wilder Nest, The Seen House, Second House (800,000VND-1,200,000VND/night),…Da Lat “homestay” is so popular trend that people travel there not for see landscape but just enjoying homestay and checking-in on social media 2.4 Competitors Bubble hotel concept has been not launched in Vietnam yet, therefore, once it is introduced into the market especially dynamic hotel market like Da Lat, it will be extremely unique and special one that draw customers’ attention and curiousness For this reason, there will be no competitor with the same concept, but among boutique hotel with distinctive location that inspire close to the nature concept and price range from 1,000,000VND-2,000,000VND segmentation, “A Thousand-star lodging & retreat” competitors come up as below: Name Location Feature Price (per night) -Locate on the top of slope near pine forest with view down to the Tuyen Wilder Nest Lam lake whole green valley tourism site, ward 3, 1,000,000VND1,500,000VD -Inspire minimal and Da Lat city close to the nature concept Tuyen The Lake House Lam lake -Country house tourism site, ward 3, concept and offer the Da Lat city whole Tuyen Lam lake 1,000,000VND view Tuyen The Seen House Lam lake -Minimal styled tourism site, ward 3, Country inn concept Da Lat city with breathtaking view 1,500,000 VND to Tuyen Lam lake -Wooden cozy style Doi Mot Nguoi Khoi Nghia Bac Son street located on the hill 650,000VND1,500,000VND surrounding by coffee garden The Seen House 08 Ho Tung Mau street -Romantic inspire with 800,000VND- combination 1,400,000VND of western and Vietnam design -Wooden interior in Trieu Lalaland Hill Lodge Viet Vuong rustic style, and designed with glass street cover for the whole 700,000 VND1,000,000VND view to farm valley -A vintage wood house Le Bleu Ly Tu Trong street with a fully equipped 700,000 VND- kitchen 1,500,000 VND -Get away concept lodging with fresh farm inside pine forest, 30km from the city Andante farm& lodge Da Nhim ward, Lac 1,400,000VND- center Duong district -Inspire “getting back and close to 1,800,000VND the nature”, there is no internet signal here Table 2: Competitors 2.5 Suppliers Bubble hotel concept is a very unique one which not rely so much on construction materials but using bubble tent order from supplier from China through Alibaba website, Shangai Qiqu Fun company supply inflatable product with high quality and competitive price, moreover, they can customize product (size, shape, material,…) as request buyer’s request In addition, furniture and fittings are extremely important in setting up hotel business especially for bubble hotel for specific segmentation of customer, furniture and fittings are not required to be so charming, so precious or luxury but they will be creative and modern minimalism concept, that’s why we choose new suppliers in the market but not those are more popular one, because I am willing to pay a little bit more but the product they provide is very unique one that not any other suppliers can produce Besides, for amenities, “A Thousand star lodging & retreat” hotel only uses nature-extract and organic product to avoid unnecessary chemicals that can cause harmfulness for health It is also in compliance with inspiration of close to the nature and eco-friendly concept of the hotel For food serving for breakfast, lunch and dinner, we will cooperate with local shops to deliver instead of set up full kitchen and hire whole kitchen team for this small size hotel which will incur a lot of fixed cost, order food in bulk portion cooked by the local can both help them to have more income and ensure local taste in the dish when serving for customer, it also reduce stress for inventory handling and kitchen operation management We just need to set up a basic kitchen to heat up, decorate and prepare other supplements only Besides these unique points when choosing suppliers, for other facilities, famous prestigious suppliers with competitive price in the market are chosen as below: Items Supplier Bubble tent Shanghai Qiqu Fun Divan bed Minh Phong Mattress, pillow, duvet, towel Thegioinem Bed sheet, pillowcase Chu Bedding duvet cover Minibar Electrolux Furniture -FEGO – Woodworker -Miniwood design -Handyman Décor Spa facilities Spagold by New & Nice furniture Spa amenities Tre’s house Earthmama My Natural Beauty performance and productivity in order to minimize waste of expenses; track of sales units, purchasing orders and stock inventory to prevent loss and thief -Revenue management: Hotel manager will work with sales executive to analyze market trends and performance to make right decision on distributing hotel products & services to the right customers, at the right time, with the right price and on the right channels Depends on market demands and hotel occupancy, price adjustment is extremely important to generate as much revenue as possible because hotel operation has very big amount of fixed cost, therefore, whether we can sale the room or not, we always have to pay for the same fixed amount of money every day In addition, hotel manager should train hotel staffs to cleverly build good relationship with customers to generate more direct sales so as to reduce OTAs sales because direct channel not only allows us to sales with higher price, more engage with customers but also helps to cut off commission paid for third party -Cash Handling: Cash is very difficult to track because cash payment is processed by human manner but not by standardized machine Focusing on cash handling will help to prevent leakage and cash insufficient CCTVs set up in reception area is a must, it will be a supportive tool when any problems occur In addition, reception area will be equipped with safety box for keeping money At the beginning of the shift, hotel manager will issue a specific amount of cash for operation and at the end of each shift, receptionists have to summarize, record and report for hotel manager about cash amount, then hotel manager needs to track on the system whether this amount of money generated is correct or not In addition, in order to ensure hotel safety, we won’t allow hotel manager to keep too much cash in the hotel, a specific amount of cash will be decided to be available for operation, the rest will be sent to the hotel bank account Quality Control: To ensure the consistency of service in the hotel, we will focus on elements: employee, customer and physical evidence -Employee focus: John Willard Marriott-founder of Marriott International corporation said that “Take good care of your employees and they will take good care of your customers, and customers will come back” Through this quote we can understand how important our caring for employees is To demonstrate our goodwill on creating an inspired workplace, we will conduct training everyday together with the briefing Each day one topic will be discussed from 15-30 minutes, hotel manager will collect all employees’ opinions and then share his/her experience and advise on the matter for staffs to understand thoroughly and can apply it to the job The content of topic is diversified but will focus on how to manage the job effectively for better performance to maintain and improve quality of service In this working place, we encourage idea sharing and learn from each other even for hotel manager, we won’t accept manage people by power because it will result in a very stressful workplace and hospitality is known for its high turn over rate, therefore a motivated and fair working environment will be extremely important which help to increase their loyalty and retention Apart from trainings, we also take good care for employee benefits Duty meal, locker room, parking and dining space will be provided, and we will regularly check employees’ feedback tom improve quality of facilities for them We would like to ensure employees’ basic concerns are offered for them to focus a hundred percent and conscientiously contribute for organization In addition, we also decided to give rewards of 50,000VND/comment for employee who got positive feedback from customer (on social media or direct feedback to the hotel) Hotel manager will summarize and find out who is the “comment champion”, monthly champion will receive 500,000VND, quarterly champion will receive 1,000,000 VND and yearly champion will be remunerated 1,500,000VND and night to stay in the hotel From all of our efforts that not many properties in Da Lat can implement for creating a friendly working environment, we are sure that employees will believe they are treated very nicely Therefore, they will try more to perform better to take good care for guests and get rewards from our side -Customer focus: Customer satisfaction is priority concern in hospitality industry To deliver an outstanding experience for guests, we will focus on providing personalized service and treat every guest like a VIP, this is the reason why we only have one room type but not more such as standard, deluxe, premium,…We invite customers’ feedback and suggestions from their experience to develop what we are doing well and improve on our shortcomings We encourage “pause and engage” culture for all employees includes hotel manager “Pause and engage” means whenever you meet customer, you should greet them and have a small talk with them to know how they are going and enjoying in our hotel From this engagement, we can decide what to to increase their level of satisfaction and make their vacation more enjoyable For those who complaint and are unhappy with hotel service performance, front office staffs or hotel manager will talk with them to find out the disappointed points and offer proper recovery service in time The recovery actions must be in higher value than the damaged one We will try to make sure that simple procedure will be followed in order to get in-time evaluation and decision that won’t keep customer disappointed for long time After all of the solutions are settled, hotel manager will double check whether customer is satisfied or not, apologize them one more time to show our honest and goodwill The highest level of effort will be put in order to not to let customer leaves with unhappy feeling then spread negative word-of-mouth on social media -Physical Evidence focus: To ensure the pre-encounter hotel marketing image, hotel physical evidence will be usually inspected, then necessary maintenance and refurbishment will be planned and conducted This activity will be all of the staff’s responsibility Room attendant when cleaning guest room will be also in charge for checking equipment and facilities in the room, then record and report to maintenance staff or hotel manager if there are any objects need to be updated, fixed or replaced In addition, cleanliness of the bubbles, rooms, outlets and public area will be always taken care Amenities set up standards, serving standards (foods, drinks, skin care products display…) will be also set to ensure service standardization and easy for employee to follow For regularly used amenities and equipment such as pillow, linen, duvet, bathrobe…., there will be always spare ones in the pantry to replace and refill for guests if any incidents occur For bigger damage such as minibar, bed, toilet…the room that has damage will be marked as under repair and the problems will be solved as soon as possible to make the room available again to serve guests Moreover, hotel website, Facebook fan page, Instagram design, layout, images and content will be also meticulously designed, planned and managed by marketing staff to ensure the delivery of conveying visual appealing with relevant meaningful words Finally, staff appearance and uniform will be checked daily to make certain that all “hotel representatives” are well-groomed and have professional image in customer mind CHAPTER VII: FINANCIAL PLAN 7.1 Capital Expenditure (Currency: VND) Quantity Business License Price/Unit Total Price 23,000,000 23,000,000 6,000,000,000 6,000,000,000 Land Buy land (15,000 meter square) includes legal fee 6,000,000,000 Construction Cost Office Building, Kitchen, HK storage, Spa, walking street, fence 1,685,000,000 1,685,000,000 Landscaping 50,000,000 50,000,000 Bubble base+toilet 25 15,000,000 375,000,000 Fire protection facilities 50,000,000 50,000,000 Electric generator 215,000,000 215,000,000 Lighting system 50,000,000 50,000,000 Electricity, water system 75,000,000 75,000,000 2,500,000,000 Technology Website with reservation system (Nector agency) FO: Property Management System (Ezfolio software) 55,000,000 55,000,000 125,000,000 125,000,000 F&B: Cukcuk software 20,000,000 20,000,000 Spa: Salon Hero 15,000,000 15,000,000 Camera 10 1,500,000 15,000,000 Passport Scanner 13,400,000 13,400,000 Wifi+ Internet system 6,000,000 6,000,000 249,400,000 Marketing Branding package 70,000,000 70,000,000 Bubble tent 30 24,000,000 720,000,000 Heated water machine 25 1,500,000 37,500,000 Divan bed 25 3,500,000 87,500,000 Mattress 25 5,000,000 125,000,000 Side table 25 500,000 12,500,000 Coffee table 25 700,000 17,500,000 Living room table for amenities 25 1,500,000 37,500,000 Standing lamb 50 800,000 40,000,000 Table lamb 25 400,000 10,000,000 Mini safety box 25 800,000 20,000,000 Minibar 25 2,400,000 60,000,000 Sofa 25 5,000,000 125,000,000 Carpet 50 1,200,000 60,000,000 Dining table & chair 25 3,000,000 75,000,000 Jacuzzi tub 25 12,000,000 300,000,000 Cloth rack 25 400,000 10,000,000 Hair dryer 25 300,000 7,500,000 Diffuser 25 600,000 15,000,000 Telephone 25 600,000 15,000,000 Kettle 25 300,000 7,500,000 Operation equipment Room Cloth hamper 25 150,000 3,750,000 WC: Toilet bowl, Sink, Mirror, Hanger 25 5,000,000 125,000,000 Trash bin 25 100,000 2,500,000 Amenities bottles 100 50,000 5,000,000 1,918,750,000 Spa Sauna room 20,000,000 60,000,000 Soak tub 4,000,000 16,000,000 Spa bed 1,500,000 9,000,000 Spa mattress 600,000 3,600,000 Amenities Shelves 3,000,000 6,000,000 Minibar 2,400,000 2,400,000 Lobby facilities: computer, sofa, table… 20,000,000 20,000,000 Linen, towels… 50 100,000 5,000,000 Amenities 30,000,000 30,000,000 152,000,000 Food & Beverage Kitchen Electric stove 1,000,000 2,000,000 Inox table for food preparation 1,700,000 1,700,000 Inox Shelves for ingredients, chinaware… 900,000 1,800,000 Double washing sink 5,000,000 10,000,000 Fridge 8,000,000 8,000,000 Microwave 1,000,000 2,000,000 Food trolley 2,500,000 5,000,000 140,000 14,000,000 Dinning ware (cover) 100 44,500,000 Bar Fridge 4,000,000 4,000,000 Bar counter 3,000,000 3,000,000 Juice Press Machine 2,000,000 2,000,000 Glass 80 20,000 1,600,000 Computer for ordering 9,000,000 9,000,000 19,600,000 Housekeeping Set: pillow+Duvet+Bedsheet 40 1,500,000 60,000,000 Bedcover 30 300,000 9,000,000 Towel (set) 75 100,000 7,500,000 HK trolley 4,500,000 9,000,000 Washing machine 8,000,000 8,000,000 Drying machine 7,000,000 7,000,000 10,000,000 10,000,000 1,500,000 3,000,000 20,000,000 20,000,000 HK equipment Storage shelves Amenities Bathrobe 50 250,000 12,500,000 Slipper 300 5,000 1,500,000 133,500,000 Office & Staff Area Reception counter 3,000,000 3,000,000 Computer 9,000,000 18,000,000 Printer 3,500,000 3,500,000 Sofa L shape 10,000,000 20,000,000 Sofa table 3,000,000 6,000,000 80,000,000 80,000,000 Decoration & furniture : lamb, paintings, clock… Hotel manager room 20,000,000 20,000,000 Locker cabinet (12 boxes) 2,500,000 2,500,000 Staff cloth rack 500,000 1,000,000 WC 5,000,000 10,000,000 Dining & rest space equipment 15,000,000 15,000,000 3,000,000 3,000,000 Stationaries 182,000,000 Working Capital months Recruitment & training 400,000,000 400,000,000 Salary 300,000,000 300,000,000 Utilities 350,000,000 350,000,000 Marketing 90,000,000 90,000,000 Soft Opening (invite guest to experience services) 90,000,000 90,000,000 1,230,000,000 TOTAL INVESTMENT 12,522,750,000 Table 26: Initial Investment Cost INVETSMENT COST STRUCTURE Land 47.9% Construction cost 20.0% Technology 2.0% Business license 0.2% FF&E 19.6% Working Capital 10.4% Table 27: Investment Cost Structure 7.2 Sales Forecast (Currency: VND) Q1 Q1 Q3 Q4 Occupancy Rate 0% 50% 75% 65% Room Occupied 1141 1711 1483 Room Sales 1,710,937,500 2,566,406,250 2,224,218,750 Food & Beverage Sales 802,186,221 1,203,279,331 1,042,842,087 Spa Sales 570,312,500 855,468,750 741,406,250 Others (minibar, laundry) 152,947,443 229,421,165 198,831,676 3,236,384,805 4,854,577,207 4,207,300,246 Total Revenue - Table 28: First Year Sales Forecast Statistic Five years sales forecast: Y1 Y2 Y3 Y4 Y5 Occupancy Rate 48% 60% 70% 70% 70% Room Occupied 4,334 5,475 6,388 6,388 6,388 6,501,562,500 8,212,500,000 9,581,250,000 9,581,250,000 9,581,250,000 3,048,307,639 3,850,493,860 4,492,242,836 4,492,242,836 4,492,242,836 2,167,187,500 2,737,500,000 3,193,750,000 3,193,750,000 3,193,750,000 581,200,284 734,147,727 856,505,682 856,505,682 856,505,682 18,123,748,518 18,123,748,518 18,123,748,518 Room Sales F&B Sales Spa Sales Others (minibar, laundry) Total Revenue 12,298,257,923 15,534,641,587 Table 29: Sales Forecast For Years Sales mix Room 53% F&B 25% Spa 18% Others 5% Table 30: Hotel Sales Mix 7.3 Income Statement (Currency: VND) Room Available Y1 9,125 Y2 9,125 Y3 9,125 Y4 9,125 Y5 9,125 Occupancy Rate 48% 60% 70% 70% 70% Room Occupied 4,334 5,475 6,388 6,388 6,388 Sales Revenue Room Sales 6,501,562,500 8,212,500,000 9,581,250,000 9,581,250,000 9,581,250,000 F&B Sales 3,048,307,639 3,850,493,860 4,492,242,836 4,492,242,836 4,492,242,836 Spa Sales 2,167,187,500 2,737,500,000 3,193,750,000 3,193,750,000 3,193,750,000 581,200,284 734,147,727 856,505,682 856,505,682 856,505,682 Total Sales 12,298,257,923 15,534,641,587 18,123,748,518 18,123,748,518 18,123,748,518 Expenses Occupancy cost F&B cost 975,234,375 914,492,292 1,231,875,000 1,155,148,158 1,437,187,500 1,347,672,851 1,437,187,500 1,347,672,851 1,437,187,500 1,347,672,851 Spa Cost Other sales cost (minibar, laundry) 650,156,250 821,250,000 958,125,000 958,125,000 958,125,000 145,300,071 183,536,932 214,126,420 214,126,420 214,126,420 Utilities OTA commission Sales executive commission Promotion & Complementary Service 1,475,790,951 1,864,156,990 2,174,849,822 2,174,849,822 2,174,849,822 1,475,790,951 1,087,424,911 1,087,424,911 906,187,426 724,949,941 98,386,063 201,950,341 253,732,479 271,856,228 289,979,976 491,930,317 621,385,663 724,949,941 724,949,941 724,949,941 Credit Card fee 215,219,514 271,856,228 317,165,599 317,165,599 317,165,599 Welcome gift 86,687,500 109,500,000 127,750,000 127,750,000 127,750,000 Laundry Total Variable Cost 579,437,500 693,500,000 784,750,000 784,750,000 784,750,000 7,108,425,783 8,241,584,223 9,427,734,524 9,264,620,787 9,101,507,050 Other Sales Gross Profit 5,189,832,140 7,293,057,364 8,696,013,994 8,859,127,731 9,022,241,468 Fixed Cost Payroll Employee Benefits 1,672,110,000 2,229,480,000 2,229,480,000 2,229,480,000 2,229,480,000 540,990,000 721,320,000 721,320,000 721,320,000 721,320,000 Maintenance 60,000,000 72,000,000 84,000,000 96,000,000 108,000,000 MKT 200,000,000 84,000,000 60,000,000 72,000,000 78,000,000 Stationaries 3,600,000 5,640,000 6,264,000 5,880,000 5,088,000 Internet+Phone 36,000,000 36,000,000 36,000,000 36,000,000 36,000,000 Public Relation Waste Removal 24,000,000 6,000,000 24,000,000 6,000,000 24,000,000 6,000,000 24,000,000 6,000,000 24,000,000 6,000,000 Depreciation Total Fixed Cost Net Profit Before Tax 1,304,550,000 1,304,550,000 1,304,550,000 1,304,550,000 1,304,550,000 3,847,250,000 4,482,990,000 4,471,614,000 4,495,230,000 4,512,438,000 1,342,582,140 2,810,067,364 4,224,399,994 4,363,897,731 4,509,803,468 268,516,428 562,013,473 844,879,999 872,779,546 901,960,694 1,074,065,712 2,248,053,891 3,379,519,996 3,491,118,185 3,607,842,774 8.6% 18.0% 27.0% 27.9% 28.8% Tax Net Profit After Tax ROI Table 31: Hotel Income Statement 7.4 Cash Budget (Currency: VND) Table 32: Hotel Cash Budget 7.5 Payback period Analysis From accumulated cash flow, payback period is calculated as below: 7.6 Breakeven Point Analysis (Currency: VND) Sales Mix Room 53% F&B 25% Spa 18% Others (Laundry, minibar) 5% Breakeven point is calculated as formula Selling Price Variable Cost 1,500,000 225,000 703,287 210,986 500,000 150,000 134,091 33,523 Average Contribution Contribution 1,275,000 492,301 350,000 100,568 862,491 After calculation, we have breakeven data as below: Table 33: Breakeven Point Analysis CHAPTER VIII: CONCLUSION After fully analyzation and evaluation about market condition, target customer responds, trends, S.W.O.T and competitors, we can state that our proposed business is definitely feasible The distinctive boutique concept of accommodation that has never been introduced in Vietnam before will attract a lot of attention for a totally new experience The uniqueness of hotel which has small capacity (25 transparent bubble rooms) together with all of marketing strategies (online Marketing, invite KOLs to the hotel…), promotions…, we are confident to achieve high occupancy after few months of launching and will be peak in the next years Through sales projection and financial calculation, we can clearly see that it is not difficult to reach breakeven point (average 29% of occupancy- rooms occupied per day) and average ROI of 22% for 12,5 billion VND money invested in hotel industry is relatively attractive for investors while they can get back their investment after 3.4 years (41 months) of operation Furthermore, after closing business, we can sell the land at a profitable price However, there are some risks that hotel business will face such as: financial risks (lack of budget, low sales…) supplier risks (quality of products, increase price, delivery time…), human resources risks (lack of staffs, inexperienced, high turn-over rate…), customer risks (complaints, negative feedbacks, dissatisfaction…), more competitors and copycat risks To minimize these risks, certain solutions are decided as below: -Financial risks (lack of budget, low in sales…): separate a back-up budget at the beginning of the year, borrow from the bank, look for more investors -Supplier risks (quality of products, increase price, delivery time…): carefully discuss about all of the contract terms with suppliers in the beginning, give them incentives for a high and consistent quality of products, look for a back-up list of suppliers in town -Human resources risks (lack of staffs, inexperienced, high turn-over rate…), hire staffs with good background and attitude, design effective training plan, attractive benefits and rewards policy -Customer risks (complaints, negative feedbacks, dissatisfaction…): encourage continuous feedback from customers to keep track of their satisfaction level and offer suitable recovery actions Train customer service skills for hotel staffs regularly -Competitors and copycat risks: focus on approaching our targeted group but not a mass market, invest in marketing activities, build an attractive loyalty program with appealing benefits and personalized caring to generate a big loyal customer base who keep returning to use our service In conclusion, “A Thousand-star lodging & retreat” is a brilliant idea for establishing a hotel business which deliver a meaningful values “relax-retreat-renew-refresh” that inspire customers to get closer with the nature, get out from virtual word to savour every single moments of their valuable time to release all of the stress out for a healthier and happier mind Furthermore, the success of this project will make it as a destination in the located area, they travel there because of the hotel instead of travelling here and find the hotel With our detailed descriptions of the business and fully preparation of financial plan, we hope that this paper will be a persuasive evidence for investors to have a deep understanding about our plan potentiality We are looking forward to your corporation to bring this project into reality! ... tidy; hotel website, Facebook page and Instagram account are well-designed with visual appealing that conveys hotel value and brand image +Empathy: Besides service standards, our hotel encourages... current and forward-looking situation assessment and strategic planning for organization by analyzing internal factors (Strengths and Weaknesses) and internal factor (Opportunities and Threats)... know and explore its tourist attractions, instead of that, they mainly want to relax, enjoy the climate and landscape that Ho Chi Minh city never have, the trip play a role as a medicine and treatments