CAPSTONE PROJECT AQUA RESORT HOTEL BUSINESS PLAN

Capstone Project Resort Business Plan Hospitality Business Plan AQUA RESORT BUSINESS PLAN HOSPITALITY PLAN FINAL PROJECT HOSPITALITY HOSPITALITY MANAGEMENT MARKETING HUMAN RESOURCE FINANCE PLAN The Aquanova Resorts (ANR) concept is not only the first of its kind but also embodies the direction in which the Barbados tourism sector is moving. Located in St. Lawrance Gap, the tourist hotspot of Barbados, Aquanova represents the unification of world renowned quality standards, unparalleled strides in ecofriendly practices as well as immense technological and infrastructural developments. The resort strives to be the top rated 5 star resort on the island of Barbados. This is due to our wholehearted belief in the strategic professional development of our staff and our policies directed to their continuous growth.

Hermine Kerjan, Nicole Stephan, Khalan Thomas, Rebecca Wedekin

Aquanova Resort

Capstone Project - Group 1

A dream doesn't become reality through magic;

it takes sweat, determination and hard work

Colin Powell

Marketing

The Aquanova Resorts (ANR) concept is not only the first of its kind but also embodies the direction

in which the Barbados tourism sector is moving Located in St Lawrance Gap, the tourist hotspot of Barbados, Aquanova represents the unification of world renowned quality standards, unparalleled strides in eco-friendly practices as well as immense technological and infrastructural developments The resort strives to be the top rated 5 star resort on the island of Barbados This is due to our

wholehearted belief in the strategic professional development of our staff and our policies directed

to their continuous growth

Aquanova believes that economic growth can only truly be enjoyed if the community grows in turn Due to this fundamental belief, Aquanova practices local product sourcing, employing of locals and numerous community outreach development programs Moreover, it prides itself on its focus to continued learning and self-development, as we believe that dedicated employees mould loyal customers

Through the purchase of a property, a previously owned local hotel consisting of 230 individual guest rooms) accompanied by a detailed business plan outlining our extensive refurbishment process and generous capital investments, Aquanova holds the ability to transform into a regionally and

internationally recognized hotel, garnering the respect of local communities and clients globally

With a continued focus on quality service, the exploitation of social media platforms and the

introduction of attractions such as the underwater night club/rooms and bungalows, we will attract higher income earners who enjoy higher rates of disposable income

Aquanova’s structure includes numerous revenue centres as well as various operational and

administrative departments such as: front office (reception, concierge, reservations, guest relations), housekeeping, learning & development, technical & electrical and food & beverage (3 restaurants, 24h room service, 2 bars)

Maximizing on our proximity to the only airport on the island, our golden sandy beach (often

described as one of the most beautiful beaches in the hemisphere) and our family of local staff, the resort is positioning itself to be an industry super power Only 30 minutes away from the capital city

of Bridgetown, it enjoys the ability to integrate Barbadian culture with the revolutionary tourism practices which distinguish us from our competitors

In a consistent effort to ensure a high return on investment for each of our stakeholders, Aquanova pledges to introduce above average ethical practices in each policy and aspect of employee training,

as we strive grow economically, individually and communally

External Factors - Demographics and Population

Religious Statistics

The majority of the Barbadian population is either Anglican or other Pentecostal

0 (2015) Proportion of population below minimum level of dietary energy

consumption

(2014-2016) Proportion of 1-year-old children immunized against measles 90.0 % (2013)

0 (2013)

Proportion of population with advanced HIV infection with access to

antiretroviral drugs

Public expenditure on health as percentage of GDP 6.8 % (2013)

Religious Statistics

External Factors - Social, Political, and Economical Environment

Social Environment

Barbados traditions are drawn from the West African and British cultures that shaped the island Most of the population is of African origin, however the island was a colony of the British Empire for over 300 years so British influence is very strong

Today Barbados is a cosmopolitan country with a strong character of its own It is prosperous and progressive and still full of natural charm The people population is friendly, fun loving, and warm

island today is an iconic part of the Barbadian culture

Political Environment

a parliamentary government with strong democratic traditions; constitutional safeguards for

association

Status: Monarchy under Queen Elizabeth II

Legislature: Parliament Independence: 30 November 1966

recommendation of the Prime Minister There is a bicameral legislature and party system, based on universal adult suffrage

The Senate has 21 members appointed by the Governor-General, 12 on the advice of the Prime Minister, two on that of the Leader of the Opposition, and the remaining seven at the Governor-General’s discretion The House of Assembly has 30 directly elected members Leaders of each house (President and Deputy President of the Senate and Speaker and Deputy Speaker of the Assembly) are elected by the members of the respective houses

Barbados has a representative Democratic Government The island is divided into thirty constituencies At a General Election, the representatives from each constituency are voted for by their constituents The party winning the most seats in the House of Assembly will then become the leading party If the leader of the winning party also wins his seat, he becomes the Prime Minister, if he loses his seat the party must elect another to take his place as Prime Minister The Prime Minister then appoints his Government ministers

Economical Environment

Gross Domestic Product in USD

For the past 35 years, the GDP has generally been increasing steadily, bringing them to 4.451 billion in 2015

Forecasted GDP Growth

Barbados is forecasted to have a 2.1% Annual GDP Growth by 2018

Direction of Trade - Domestic Exports for 2015 (%)

Barbados mostly exports to the rest of the Caribbean Community (CARICOM) Other

In the past few years, hotel room occupancy rates and the number of stay-over visitors have been steadily increasing Cruise passengers may come to our underwater night club,

however, will not be staying at the resort

Forecasted Travel & Tourism Statistics

Supply and demand

According to Expedia, at the end of 2015, revenues in the hospitality business in Barbados increased by 36 percent and night sales increased by 34 percent These trends are still rising today with demand for accommodation increasing by 28 percent and a growth in revenue of

37 percent Expedia, which is the second biggest tour operator for Barbados, reported that

in the first quarter of 2016 the booking pace had increased by more than 37 percent compared to the previous year

The Barbados Tourism Marketing Inc (BTMI) stated that the arrivals in Barbados have increased by 7.4 percent during the first quarter of 2016 compared to the previous year This represents 184’177 visitors as opposed to 171’413 in 2015

natural disaster and crime rates in

- Hospitality and Tourism Industry

is the fastest growing industry

- Diverse target markets

- In the past few years, the demand for beds have steadily

been incresing

- Politically stable situation

- Economical situation continually

improving (forecasted GDP Growth of 2.1)

Political

1639 The island also has very low corruption rates allowing law and order to be followed and respected

from other nations, but for the past few centuries, Barbados has been under the reign of the Common Wealth

to avoid contamination of foreign products and to allow sustainability and durability

Consumer Experiences &

Personalities

Changing Work Patterns

Consumer Lifestyle Consumer Values

Social Platform Opportunities Free WIFI Mobile Check-

In

Improved Security Systems

Labor Laws

Saftey Standards

Consumer Protection Laws

Preservation Waste Disposal

Alternative Forms of Energy

Thinning of Ozone Layer

P E S T L E

Economic

reduction in overall individuals that can afford to travel to the Caribbean from Europe

or north America

government is trying to attract as many foreign investors as possible As a result we can save large amounts of money by reason of reduced taxes

increase in price of many locally produced items

Social

the Millennial Generation

Technological

as advertizements and discounts for guests

providing free Wi-Fi in the entire resort

Aquanova Resort to attract a more technology-savvy clientele

documents and introduce faster softwares

 The labor laws in Barbados are very strict and very clear Citizens are viewed as very important assets to the country, so as a result, the government protects them with stringent regulations

properly defined To reduce the spread of airborne or waterborne diseases, the health department of Barbados has put together adequate rules and regulations for companies to follow

must dedicate a fair amount of their resources into putting out detailed information about their products and policies As a result me must strive for absolute

transparency

Environmental

development has a very negative impact on the nearshore reefs, and coral is being submitted to thermal stress due to global warming

has created new laws such as the Costal Zone Management Act in order to give

guidelines as to how solid waste should be disposed of so as to preserve the

environment

installing solar panels in both homes and for companies This is allowing the island to improve its sustainability and renewability

installing solar panels in both homes and for companies This is allowing the island to improve its sustainability and renewability

External Factors - Low Seasons & Brexit

Coping, Maintaining, and Increasing Profitability During Low Seasons

The low seasons in Barbados are between April and November During these periods, the number of tourists that visit Barbados plummet drastically which will indirectly negatively affect our room sales In an effort to maintain our profitability by eventually boosting our capture rate during the low seasons, we will target specifically the baby boomer generation with special packages catered directly towards their needs and wants

Due to the reduction of tourist on the island, we will have to temporarily re-evaluate our hotel and our target market if we are to maintain profitability during such a difficult period Baby boomers are often retired with extensive financial retirement plans With this disposable income, they will be willing to invest in a wonderful vacation with their significant other without being surrounded by children or too many party-makers

Coping & Adapting to BREXIT

Prior to BREXIT, a large percentage of tourists that visited Barbados originated from Britain Attributed to the historic colonial relationship between Barbados and England as well as the relationship between both governments, tourism originating from Britain is usually higher However, due to reduction of the value of the British pound, we can expect a reduction in

strategy, increasing our presence in Asian, African and North American markets

The figure below outlines how our new international marketing budget will be allocated based on the new target markets:

International Market Capture

Short-term Objectives (1 – 12 months)

Short-term Qualitative Objectives

-Begin and complete the refurbishing process of our hotel

-Positive Public Relations through newspaper magazines and reports about our great opening

-Highly positive reactions on Social Media and OTA’s during the first two months

-Successfully open our hotel after 8 months of construction and refurbishments

-Having successfully trained all of our staff for the great opening with our standards

Short-term Quantitative Objectives

-Having 100% occupancy for our opening period (4 months after 8-month refurbishment period)

-Occupancy rate of Barbados, we want to make sure to reach this by investing a lot of

money into Marketing before opening) in the first two months

-Raising capital to invest in the expansion of the underwater project

Mid-term Objectives (2 – 3 years)

Mid-term Qualitative Objectives

-Completion and Opening of the underwater rooms and Bungalows

-Finish building and opening of the third specialty restaurant

- Maintain the title of #1 luxury resort in Barbados

- Develop a strong sense of customer loyalty

1 year

Mid-term Quantitative Objectives

-Having reached 70% - 90% occupancy in the underwater rooms during the peak season

-Increase marketing budget by 0,4% related to Forecast Sales (third year)

-Become one of the top 10 rated luxury resorts in the Caribbean

-Increasing sustainability by 30% through the use of greener technologies

-Having reached great Employees satisfaction and loyalty with a low employment turnover ratio (Below 7%)

-Having established several contracts with local suppliers from the Barbados for all of our three restaurants (more than 50% of our food should be from local suppliers)

Long-term Objectives (3 - 5 years)

Long-term Qualitative Objectives

-Being well-known for our Employees satisfaction everywhere in the Barbados

-Welcoming international guests from all over the world

-Having great customer satisfaction on Social Media and Ota’s

-Having reached positive acknowledgement of our three restaurants

-Start building the first Underwater Club

-Great opening of our Underwater Club with an exclusive clientele and a 100% capacity through extensive Marketing and Press Releases

Long-term Quantitative Objectives

-Having an occupancy rate of 85% to 90%

-Having local suppliers in our three restaurants for at least 65% of our products

-Raising the prices by 1.5% (subject to popularity, market share and other variables)

Aqua Nova Vs Competitors

mirror the cuisine that is prepared We hire experienced, passionate chefs from these various countries and import all our ingredients from these countries

on the island Moreover, our location is on one of the least publicly accessible beaches on the island, insuring safety and privacy for our guests

shuttle service to and from the airport at an additional cost, Aquanova Resort will invest in a small fleet of buses to provide a free shuttle service to and from our resort

club in the Caribbean The nightclub will revolutionize the hospitality industry, and increase the traffic to our and profitability of our resort

Sea Breeze Beach Hotel

Coral Sands Beach Resort

Hilton Barbados

Turtle Beach Rooms 250 280 78 31 355 161

US$600-US$300

US$200-Room Rate

(highest room

type category)

US$6500

US$6000-US$ 3600-US$6000-US$ 3700

(all-inclusive)

US$1200

US$1000-US$1000

US$800- From July 2015 to July 2016 Barbados hosted about 608,833 tourists

that amount our minimum sales (59,312.5 rooms)

Website Travel Agencies Online Travel Agencies Hotel Reservation Guest

Breakdown of Market Capture

Distribution Channels

We will sell our hotel rooms through the following distribution channels:

with a greater concentration on our target markets in the United States and the United Kingdom

Distribution Channels

Activity 01 (Social Media and Online Marketing)

We will be present all year round on different Social Media like Facebook, Instagram or Twitter Additionally we will invest money in online advertising like display ads, search-related ads and online classifieds On Instagram we will use different strategies to promote our brand – e.g paying influencers to advertise us, invite influencers to take over the brand,

or host Instagram giveaways On Facebook we will use special discounts and competitions to reward loyal customers

Activity 02 (Promotion Packages)

During the year we will advertise different Promotion Packages, especially for the low Season Examples are getaway package, opening package, carnival package, romance package, etc There are no directs costs for this promotional packages as they will be advertised on our official website aquanovaresort.com, and it just results in a discounted rate, which will decrease the ARR but increase the occupancy rate

Activity 03 (Opening of the Underwater Club in 2021)

For the opening of our extraordinary underwater club we will organize a big event with entertainment, decoration and special Buffets under a theme that will be chosen The event will be regionally advertised with flyers, posters, billboards, additional Radio Ads and on the internet For this event we will also use opening packages where the event is included with the room rate

Activity 04 (Opening of the Hotel - Gala in 2018, Opening of the

third Specialty Restaurant in 20)

For both events we have calculated a promotional cost in form of posters, flyers, billboards, additional radio ads and decoration, especially on the island On the internet the events will

be promoted as well and sold on our website in form of opening packages

We will pay for Advertisement in different In-Flight Magazines like American Airlines’ Celebrated Living, American Airlines’ Nexos, Air Canada Altitude Report or British Airways High Life

Activity 06 (Luxury Travel Magazine Advertisement)

We will pay for Advertisement in different Luxury Travel Magazines like the CN Traveler UK

or the Departures Magazine and others

Activity 07 (Public Relations)

We will organize different public relations events Some examples are the following: During the “Aqua month” we will donate 2% of our revenues to the Water Supply in Barbados and spend charitable money to ensure the access to drinking water in poorer areas At a Charity Golf event we invite professional golf players to participate, in order to raise money for organizations which protect sea life Another event that will be important for our PR Activities is a Market that will be organized by our Staff Everyone will sell goods that they have produced or donated and the revenues will go to charity as well Sponsorships for the education in Barbados will be considered to help the local community in terms of sports events and education During the pre-opening Period we will also invest money for regular events to show the community our progress with the hotel and advertise the planned Actions In form of Press Releases and other critics we want to increase the brand recognition and image already before the opening

Activity 08 (Radio Advertisements)

We will advertise on two different Radio Stations in Barbados, especially during Low Season: Wack Radio and the Voice of Barbados We calculate an initial cost to produce two different Radio Commercials and the continuous costs, as well as other regional and possibly international Radio Stations

Activity 09 (TV Advertisements)

We will advertise on different national and international TV Stations We plan an initial cost for the production of an advertisement and a continuous cost for the time slots Some examples of TV Stations in which we want to promote Aquanova are CBC, NBC, Fox, CKPG or Netflix as well Additionally we will advertise in a Luxury TV Station in Monaco Additionally

we will advertise in a Luxury TV Station in Monaco

Activity 10 (Promotion Underwater Club)

Starting in 2021 we will continually advertise our Underwater Club to attract outside guests

to our public club We invest money for flyers, posters and Billboards

Activity 11 (Travel Fairs)

During the year we will attend different Travel Fairs: For example the ITB Berlin, the Arabian Travel Market and the WTM (World Trade Market) We have calculated the expenses for the cost and decoration of the stand, the personal expenses of the representatives (Flight, Accommodation and other expenses) as well as the administrational fees and promotional material (like flyers, brochures, etc.) During the pre-opening period we will visit even more fairs to show our resort to the world and initiate collaborations with travel agencies and tour operator

Note: Please find in the annex the detailed calculation of our Marketing Promotional Cost per year

Exit Strategy

Exit strategies are used to ensure businesses are prepared for a mitigate failure or an objective that hasn't been achieved The strategy is usually developed as the means to save the company and limit losses Furthermore, an exit strategy should be put in place so as to anticipate significant changes in the market and/or catastrophic events

For this reason, we developed a couple of exit strategies for our new business:

the stock of a private company is offered to the employees By doing so, we will be able to raise capital and, at the same time, still have control of our company

would want to acquire ours, such as Hilton Barbados, Sandals Resorts, etc

This could potentially be advantageous, as if we manage to sell our resort for a high price, it will result in high capital value for our business

Consequences

Business Impact Analysis

Preventive actions Contingency

Strategy

Testing, Training and Exercise Maintenance

Bankruptcy 10 (very high) Continuous

financial planning Refer to Exit Plan

Fire 5-8 (medium

to high)

Fire Alarms, Fire Evacuation Plan, Fire Extinguishers

Fire Brigade, ensure all guests use the fire paths and are safely evacuated

Regular fire drills, and control of procedures

Refurbishment

or Renovation,

PR work (Depending on size and gravity)

Terrorism 3-5 (low to

medium)

Inform staff continually about possible danger to increase guests awareness and safety

Inform guests about possible danger and recommend to stay inside of the resort, increase security staff and preventions inside

of the resort

Regular control of safety measures inside of the resort

Work together with PR to ensure guests are informed properly, increase safety measures

Natural

Disasters 8 (high) First Aid Kits, Power Generators, Fresh buildings, stay calm Stay inside of the employees for Training of

Hire extras to help clean up

Possible Risks

Fire

Terrorism

Natural Disasters Blackouts

Bankrupcy

Pictures of the Resort

Blackouts 5 (medium) Power Generators

Stay calm and wait for the lights to come back on

Training of employees concerning the power generators

Make sure no important damage was done

Deluxe Suits

Underwater Suits

The Lune Restaurant is the hallmark of Aquanova Resort; it is located at the top of our building with a gorgeous view of the Caribbean ocean

To ensure our guest enjoy a wonderful experience while making memorable moments, we are introducing a unique restaurant which is a fusion of Japanese and Caribbean gourmet cuisine At Lune Restaurant, every meal is one to remember

La Plancha

The La Plancha Restaurant is our second specialty restaurant, also located on the top of our building; this fine dining steakhouse is a concept restaurant that mixes both Southern North America cuisines with world renowned Brazilian Steaks