Boutique Hotel. Business plan for a Venture

Table of Contents

Introduction

1.1 Outline your new Business Venture
1.2 Business type
1.3 Research

2. Business plan
2.1 Description in detail of the product/service
2.2 Employees/staff
2.3 Customers/clients

3. Future plans
3.1 Business expansion in future

References:

List of diagrams

Introduction

1.1 Outline your new Business Venture

Era’s hotel is a small boutique hotel offering its customers rooms each of which is designed in either Tudor, Roman or Georgian style; its purpose is also to provide its guests with products and services related to tourism, as well as to satisfy different tastes. The hotel will be modern, stylish and urban, as shown in picture 1, below. In fact, this is the motto that proudly carries the combination of different styles and tastes. Also, in Era’s hotel one might discover the idea of multifunctionality – a family-owned, boutique hotel and last but not least a different hotel in which the furnishing stereotypes have been evaded.

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Picture 1. Era’s boutique hotel

Regarding the competitive advantages of Era’s hotel we must outline three of them:

- Unique design of the rooms – furnished in Tudor, Roman and Georgian style; the suites in Era’s hotel are furnished with eco-friendly materials, making it environmentally-friendly;
- Highly-qualified staff – the hotel and the staff working in it are going to supply its customers with service and products of utmost quality. At the same time, it will provide its employees with satisfactory working conditions so they can better perform their working duties;
- Space – most of the hotel rooms in London are 20 sq.m, while the boutique suites in Era’s hotel are almost 50 sq.m each, perfectly suitable for accommodation of 3 people;

1.2 Business type

Era’s small hotel will be a private limited liability company, registered at the Company’s house, under number 5188, Company Act of 2006-8. Its director and basic shareholder is one and the same person. The limited liability company is chosen, due to the following reasons:

- Limited liability – the company shareholders are liable only for the company’s debts;
- Distinct Entity – as such it is a separate legal entity from its owners;
- Tax advantages (McGraw-Hill, 2002);

However, it possesses certain disadvantages:

- Complicated accounting – on part of the state there exist more complicated accounting rules;
- The raising of capital is confined only to the company’s shareholders ((McGraw-Hill, 2002);

1.3 Research

Despite the fact that the chief competitors of Era’s hotel are Arosfa Hotel, The Hoxton and Travelodge Covent Garden some of them are experiencing issues with inadequately qualified employees (Hospitality Leisure, 2018). Regarding the hotel product in London, the sector faces mostly problems, connected with the tiny rooms (TripAdvisor, 2018). In brief, that is the reason why Era’s management intends to invest in the venture, as well as to improve the weaknesses including amenities and employees preparation agenda.

2. Business plan

2.1 Description in detail of the product/service

- Place

Era’s hotel is a small boutique hotel with an unique design, combining in itself the spirit of the Tudor, Roman and Georgian style. Therefore, the perfect location for it will be in the city center of London so as more and more visitors of the city could enjoy its impeccable quality. In addition, the hotel should be situated within a close proximity of the most notable places in the city, while not at a significant distance from the underground stations; the place is nearby Holborn station. This area supplies the guests of the hotel with an easy means of entry to all the necessary means of transport, most notable places in the city such as Temple Church, Fleet Street, Charles Dickens Museum, British Museum, the Royal Courts of Justice, the Somerset House and many more (Travel stay, 2018). Moreover there are various cafes, small restaurants, bars and numerous night clubs.

- Product/services

The basic aim of the business venture is to provide accommodation in rooms, each of which is designed in either Tudor, Roman or Georgian style; its purpose is also to provide its guests with products and services related to tourism, as well as to satisfy different tastes. Almost everything in Era’s hotel will be made in accordance with that specific concept – lamps, different kinds of wooden tables and the decorative items as well (Hospitality Design,2016). Also, environmentally-friendly materials were used in order to recreated an ancient atmosphere; the types of rooms are shown in image below:

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Image 2. Types of rooms in Era’s hotel

In contrast to many other hotels, the business will strive to import brand-new ideas related to the industry of hospitality. The adoption of the most recent trends in the industry, the unique design in line with the motivated staff will be major drivers for success of the venture (Walker, 2016). Furthermore, the enterprise will act in accordance with modest prices and accept distinguished hospitality standards (Brymer, 2017); in this regard its management considers the fact that the customer of today is more than ever value-oriented, as well as he is striving for “originality and interesting design” (Hospitality design, 2013). As shown by the statistics below, consumer spending in hotel and restaurants has increased.

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Figure 1. Domestic tourist spending in London (UK) 2013-2017 So, the services that will be provided by the hotel are:

- Concierge – giving guests the opportunity to buy tickets to diverse cultural events and journeys;
- Tourist information – in regard to the different tourist attractions in the city of London;
- Food, beverages and snacks – provided in the lobby by vending machines;

- Price

The strategies of price penetration are often used by new entrants in order to gain faster access to the market (Walker, 2016). Era’s hotel will use three pricing strategies:

- Discounting. In its essence its represents a way of lowering the prices of the product and services in offer, so as to be able to enter the highly-competitive market (McGraw-Hill, 2002 ). For example, the hotel venture will offer its clients booking for 5 nights and getting the 6th for free.
- Bundling. In brief, this is a technique where the products and services are being grouped in order to help the selling of weaker ones (McGraw-Hill, 2002). For example, the hotel might offer after taking a suite additional benefits such a pool usage, or sauna.
- Value-based pricing. Simply put, this price strategy is shown when customer “feels” they are being given extra value, or something special (McGraw-Hill, 2002). The later relates to the free continental breakfast being given to all the registered guests of Era hotel. Also, newspaper will be at their disposal every morning.

At the beginning the hotel will offer a suite for approximately 3 people at the price of £ 35, so as to attract more customers in comparison with the Arosfa Hotel, The Hoxton and Travelodge Covent Garden. However, the price penetration strategy will be combined with small commissions from the concierge services, offered by the place. Moreover, the provision of safes at a symbolic price of £ 2 to £ 3 pounds for the stay period will be beneficial as well.

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