Mission Statement We strive to provide our guests with high quality service and affordable accommodation while creating an environmental-W that meets the demands and challenges of the fast-changing industry. Positioning Statement For local and international guests who are looking for affordabie accommodation without compromising quality, our hotel can provide excellent yet simplified amenities and services that strive to meet every customer's needs. We believe that bringing comfort and modesty can make every staycation matter and memorable. We have a strong focus on enhancing the experience of our guests in giving them the perfect balance of relaxation and enjoyment through our clean rooms. great food and drinks, and friendly staff. Goals: 1. Create a 2-Star hotel rating by the end of Year 2 2. Achieve a 4-Star rating by Year 5 3. Overcome negative prot by constantly increasing income by 20% each year. 4. Develop advertising strategies to boost revenue. 5. Achieve at least 80% or 90% overall guest satisfaction by Year 2 6. Build a more sustainable organization and be in the forefront of environmental consciousness. Key Area Projections - Table KEY ROOMS GROSS NET RETURN ON STAFF MARKET AVERAGE PERFORMANCE OPERATING OWNER'S OCC % ROOM PROJECTIONS REVENUE INCOME TURNOVER SHARE PROFIT EQUITY RATE ($) YEAR 0 $1,316,923.65 -794,436 -$794,436 -15.1% 33.2% 68.5% 4.05% $86.94 YEAR 1 $1,896,406.41 $31,000.80 $21,700.56 .4% 39.84% 55% 4.86% $104.33 Occupancy Rate projected increase is 20% *Rooms Rate projected increase is 20% Income Statement for Year 1 Revenue Rooms 1,896,406.41 60% F &B 1,232,664.17 39% Other Operated Department 31,606.77 1% Total Revenue 3, 160,677.35 100% Expenses Rooms 474, 101.60 25% F &B 616,332.08 50% Other Operated Department 20,544.40 65% Administrative & General 316,067.73 10% Sales & Marketing 189,640.64 6% Maintenance (up by 15% from YO) 515262.10 Utilities 216,141 Property Taxes & Insurance 199,940 Bank Charges 10,890 Interest 21,398 Depreciation 549,359 Total Expenses 3, 129,676.55 Income Before Taxes 31,000.80 Taxes 30% 9300.24 Net Income 21,700.56l-ITM490 HOTS Business Plan- 25% of final grade As you have just taken over your hotel you will be required to present a business plan for the upcoming year. Below you will nd which elements ofthe business plan are required for submission. The business plan is to be submitted through safe assign, through Learn @ Seneca, no later than 11:59pm on Tuesday February 28'\". 2023. 1. Mission statement of your hotel. 2. Position statement of your hotel. HOW will you position your hotel in the marketplace [e.g., Budget hotel, upscale, 5 gem]? E long-term stra teglc goals and describe the main actions you are taking to achieve this position and your targets. 3. Key Area Projections. Using a table, highlight key performance projections for your first year. This section should include: Rooms Revenue, Gross Operating Profit {GOP}, Net Income, Return on Owner's Equity, Occupancy %, & Average Room Rate {5} 4. Income Statement for the first year of operations. Utilize the data provided from Year 0 to create a projected yearly income statement for rst year of operations. 5. Capital Budget! Expansion Analysis with your strategic goals and position statement in mind, select 3 items from the "extra facilities", or "EMS" decision tab on HOTS. Perform a Payback Period analysis for each of the items selected and discuss why you would or would not choose to invest in the facilities you've analyzed