Professional Documents
Culture Documents
Hotel Resort Business Plan - Executive Summary, Company Summary, Market Analysis, Competitive Environment
Hotel Resort Business Plan - Executive Summary, Company Summary, Market Analysis, Competitive Environment
Hotel Resort
The Seven Elms Resort outlines how it will provide quality hospitality services, cost-effectively, in a
popular northern U.S. lake resort environment. This plan successfully raised capital for property
acquisition, renovation, and company start-up related costs.
EXECUTIVE SUMMARY
COMPANY SUMMARY
HOTEL & LOUNGE OVERVIEW
MARKET ANALYSIS
COMPETITIVE ENVIRONMENT
STRATEGY & IMPLEMENTATION
PROMOTION STRATEGY
FINANCIAL PLAN
RESUME
EXECUTIVE SUMMARY
We seek funds for the acquisition and renovation of Seven Elms Resort, an adult-marketed, 17-room
"boutique style" hotel specializing in a couples' "getaway" to provide relaxation and recreation in Benzie
County, a popular tourism spot located next to the state of Michigan's Lake Michigan. Moderately priced
between the high-line hotel properties and the older motel strips, Seven Elms Resort shall fill an
affordability niche not presently available in Benzie County.
Combined with an on-site lounge, grill, poolside beverage service, and morning continental breakfast bar,
we are seeking investment funds to renovate the hotel building, build-out a piano bar/lounge area with
dance floor, and construct an outdoor pool adjacent to the indoor pool. With this refurbishment and other
new amenities, Seven Elms Resort will form the basis of a highly profitable hotel venture. We are seeking
funds to develop and expand the business in a phased approach, as highlighted within this document.
Seven Elms Resort's owner, Steve M. Blackburn, has an extensive business background, including over
14 years of experience developing a variety of businesses. Mr. Blackburn received his B.A. in Business
Economics, and currently is an M.B.A. candidate at the University of Michigan. Desiring to return to his
own business, he wishes to establish Seven Elms Resort, Inc. in 1999.
The foundation for the plan is a combination of primary and secondary research, upon which the
marketing strategies are built. Discussions and interviews were held with a variety of individuals involved
with other similar businesses to develop the proforma data, review the market potential, and competitive
situation.
Renovation in the Prairie Style period, our hotel's design elements and furniture will reflect this "organic"
approach and provide an overall comfortable experience. Seven Elms Resort shall specialize in meeting
an individual or couple's needs. As growth warrants, the 10-acre site would allow for future expansion of
the lodging portion of the resort (Phase II).
COMPANY SUMMARY
Company Ownership
Mr. Steve Blackburn founded Seven Elms Resort, Inc. hotel and lounge in 1998 as a Michigan
Subchapter "S" Corporation. Since 1985, Steve has had extensive experience in creating and managing
organizations for environmental and economic development-oriented companies involved in nationwide
projects.
Steve consults with area businesses in development-related issues, including finance, and is a United
States SBA counselor at the Small Business Development Center at the University of Michigan. Past
SBA clients include service and manufacturing organizations. He is a certified SBA Fast Track program
instructor, a Michigan licensed loan solicitor, with a specialty in commercial finance, and a guest lecturer
at U-M for Business Plan Writing Workshops. He has started previous business and corporate
subsidiaries and looks forward to managing Seven Elms Resort on a daily basis.
Currently, Steve is an M.B.A. candidate at U-M and holds a Bachelor of Arts degree in Business
Economics with a minor in chemistry from Notre Dame University.
Key Advisors to the Company
Seven Elms Resort, Inc. has additional key staff members and advisors to assist during the development,
planning, and initial planning phases. They include an architect trained at the University of Notre Dame,
CPAs, and former managers of bar and Bed and Breakfast style properties.
Competitive Advantage
Strengths of Seven Elms Resort, Inc. include Steve Blackburn's broad base of experience in managing
different types of companies. He has extensive development experience and a track record of hiring the
right people and training them. Blackburn understands the service sector business, has traveled
extensively frequenting numerous lodging establishments, and has gained invaluable experience in
organizational management.
Currently, a mid-size "boutique" resort niche is vacant in the Lake Michigan market, with present lodging
on the high end, averaging $225 per night (and up) down to older motel properties of $79 per night.
Several B&B establishments may fall into the middle, however, Seven Elms, as a resort-style property,
will serve its niche by itself.
MARKET ANALYSIS
Seven Elms Resort, Inc. like all businesses, is affected by forces and trends in the market environment.
These include economic, geographical, competitive, legal/political, and technical.
Economic Environment
Positive forces include the generally prosperous economy that is currently in place, full employment,
rising wages, and low inflation, leading more people to be able and willing to spend money and to get
away for some time. The close locality of Lake Michigan offers an affordable alternative to a flyaway
destination.
Geographical/Competitive Environment
Located just two blocks from Lake Michigan and downtown Lakegrove, the area has several golf courses,
two ski hills, water recreation activities, numerous dining establishments, various retail and specialty
shops, art galleries, theatre entertainment venues, and the beauty and serenity of Lake Michigan, which
has made this county a famous Midwest tourist destination. Traverse City began to prosper in the 1870s,
becoming a desirable resort area. Many homes and estates date back to this era and several enormous
"summer cottages" were built on the lakeshore and are still in evidence today.
Seven Elms Resort shall fill a niche not presently available, namely a moderately priced (under $130 per
night), resort-type establishment. Combined with an on-site lounge, a grilled food service, an indoor and
outdoor pool bar, and a morning continental breakfast offering, we shall differentiate ourselves by
becoming a "boutique style" resort versus simply another motel.
Our Prairie Style surroundings will attract and retain guests who appreciate such refined environments.
Legal/Political Environment
Seven Elms Resort management will not move the project forward until it has obtained an option to
acquire one of the 19 Benzie County, Michigan, liquor licenses. As faced by all businesses, the proper
insurance needs shall be met and all operations and policy manuals shall be reviewed by appropriate
legal experts. The facility will obtain all the necessary building permits prior to construction. Present
facility zoning allows for this proposed use, including a bar, cabaret, grill, and dance floor space.
Technology Environment
Computer programs greatly simplify the financial recordkeeping for today's businesses. As a small
business, Seven Elms Resort will need to watch its expenses closely. By utilizing the existing software
packages available in the hotel industry, including: room and facility management database, controlled
bar and inventory measuring systems, and room key cards that allow patrons to charge directly to their
room account, this technology shall assist management in controlling costs, reducing cash management,
and maximizing revenue. Seven Elms Resort shall attract the resources necessary to train and operate
the system in order to generate the reports and manage the inventory.
COMPETITIVE ENVIRONMENT
A listing of the hotel and motel properties in Benzie County, Michigan (sourced through Midwest and the
Ameritech Directories) is as follows. (Note: Other properties on Lake Michigan, but outside the city limits,
are not included):
High Line ($139-$750 per night, depending upon season)
The Cove of Lake Michigan ($145-$225)
Grand Michigan Resort and Spa ($139-$750)
The Harbor's Edge ($139-$199)
The Michigan Inn ($215-$350)
The Strike Hotel ($200)
Motel ($59-$119 per night, depending upon season)
Breezy Chateau Inn
Budget Time Motel
Lake Michigan Motel
Lakewood Motel
Misty Motel
Pine Tar Motel
Plaza Motel
Shady Drive Motel
The Stirrup Motel
Swiss Motel
Bed & Breakfast (B&B)
Dahlia House
The Mixer House
Precious Times Inn
Hotel and motel properties in adjacent communities are not listed, however, they do advertise in the
Yellow Pages.
Seven Elms Resort hotel and lounge is attempting to carve out a fourth segment in the lodging market;
that of a "boutique" style, high-line property at mid-line pricing geared towards adult couples and not
marketed to families.
A review of competitors' marketing strategies reveals no one targeting this market segment. Hotel and
lounge is a referral-driven business—new business can be obtained by encouraging and rewarding
present guests to refer future guests. Networking within business and civic groups is important; even if
the business results are not immediately felt, it is an excellent public relations opportunity. Live piano, or
jazz style trio, on the weekends will add excitement to the resort and draw community residents and
guests from other properties.
Market Research
A hypothetical behavior sequence model for a new customer (future guest) contemplating using a hotel
and lounge service for the first time might look something like the following (based on discussions and
interviews with potential guests):
Individual or couple decided to getaway for a few days. This may happen as a result of a need for a
change of pace, vacation, or a celebration purpose. The need can arise anytime year round. Even in the
late fall and winter months people are thinking "getaway" to break the weather doldrums.
Individual or couple investigates hotel services. In most cases, this means the they will consider first any
recommendations that they are knowledgeable of through prior association (relative, friend, or social
group). If the individual or couple is new to the area or otherwise has not made any close connections
with people, he/she would look in the Yellow Pages for a listing, or perhaps look in a newspaper for
advertising.
Acting on the advice of friends (or own knowledge), the individual or couple will call the recommended
property to obtain information that will help him/her decide if this place is the best for them. Criteria for
selection include: (1) amenities (pool, on-site food service, nonsmoking rooms, bar lounge area, etc.); (2)
reputation (what kind of persons usually stay here?);(3) physical plant (how recent the renovation,
upkeep, etc?); (4) courtesy (professional and attentive staff?); and (5) pricing (is the place affordable?).
Based on the information received, the individual or couple makes a decision and either schedules an
appointment to view the property or makes a reservation.
The individual's satisfaction with his/her decision and with the service itself is largely a function of their
interaction with the staff during their stay. Everyone associated with Seven Elms Resort will do everything
possible to ensure a satisfactory experience for the guest, so that future business (and a future referral)
is not at risk.
Marketing strategies will build on this model, taking advantage of precipitating events, fostering word-of-
mouth recommendations, and creating satisfaction through interacting with the future or present guests.
Summary of Opportunities and Threats in the Environment
Overall, the environment appears very positive for Seven Elms Resort, Inc. The forces driving market
demand, mainly economic and geographical, are strong, with more people staying closer to home for
shorter getaway trips and their comfort level of visiting Lake Michigan, one of the Midwest's premiere
travel destinations. On the negative side, there is competition, and it will take a while for Seven Elms
Resort to get "established" in its market niche.
Marketing Strategies
Target Markets—Geographical: The major cities within a three-hour drive of the property.
Distribution Strategy
Unlike products that are produced, then distributed, and sold, hotel and lounge services are produced
and consumed simultaneously in a real-time environment. Thus, distribution issues center on making the
services available in a convenient manner to the greatest number of potential guests. Seven Elms Resort
will maintain a front office staff member throughout the night so guests are able to get answers to any
question or service when they need it. This flexibility is especially attractive to the business traveler.
Clients will be able to contact Seven Elms Resort by telephone, fax, and e-mail.
Pricing Strategy
Rooms per night fees have been developed. The fee schedule takes into account seasonal rates that are
common in the area. For businesses and other large group functions, pricing can be discounted
depending upon the number of rooms reserved.
Example lounge pricing and grill food offerings are also noted.
Example fees:
Room Fees
Regular Rooms
Suites
Regular Rooms
Suites
Grill Menu
PROMOTION STRATEGY
Promotion strategies will vary depending on the target market segments. Given the importance of word-
of-mouth referrals among all market segments when choosing a "getaway" hotel or small business
meeting
location, our efforts are designed to create awareness and build referrals. A cost-effective
campaign—focused on direct marketing, publicity, our frequent guest reward program, and advertising—
is being proposed.
Marketing Plan
New Business Segment
A direct marketing (direct mail) package consisting of a tri-fold brochure, letter of introduction, and reply
card will be sent to a list of potential guests. This list can be obtained from International Business Lists,
Inc. (Chicago, IL) and is compiled from tax records (by upper-income geographical areas, Secretary of
State incorporation registrations, business license applications, and announcements from newspaper
clippings).
The brochure and letter introduces Seven Elms Resort, stresses the importance of having a good time in
comfortable surroundings, provides information on our resort services, and describes what sets us apart
from other area hotel and lounge properties. The initial mailing may contain a promotional offer: the
opportunity to receive a 10% discount on the first night's room rate.
Approximately two months after the mailing, an additional letter shall be sent. The potential guest would
be asked to address any questions and the follow-up would remind them to drop in for a property tour on
their next trip to Lake Michigan. Additionally, new businesses will be targeted and sent information.
The cycle would repeat itself with new target communities and select businesses and would continue
through the first year. After that, additional mailings would be conducted, as needed, based upon
occupancy goals.
Seven Elms Resort, Inc. will also consider developing a one-page newsletter to be mailed quarterly to
past guests and prospects in the database. The newsletter can be used to update clients on hotel and
lounge and area-related developments, but also serves as a reminder of what sets Seven Elms Resort
apart. The newsletter can be produced in-house and for the cost of paper and a stamp creates a lot of
goodwill among guests and business prospects.
Publicity and Public Relations
A news release will be sent to area newspapers and magazines announcing the launch of Seven Elms
Resort, Inc. and lounge. Area talent searches will be conducted to secure weekend cabaret room
entertainment.
Steve Blackburn will join the Benzie County Chamber of Commerce as a means of networking in the
community. He also may make himself available for speaking engagements at other community or civic
organizations as a low-cost way of increasing awareness and building goodwill in the community.
Guest Reward Programs
For present guests: "Stay 6 nights and get the seventh night for free" promotion and as a means of
building business by word-of-mouth, present customers should be encouraged and rewarded for referring
future guests. This can be accomplished by offering a small "rebate" (5% or 10% rebate on first night
stay) to current customers who successfully refer a new guest.
Advertising
Advertising is utilized primarily to attract new guests and serves to build awareness and name recognition
of the resort in general, which is important for word-of-mouth referrals ("Oh yes, I've seen that resort's
ads before.")
Periodic advertising in target market area newspapers will afford Seven Elms Resort, Inc. name
recognition benefits. From quarter page ads announcing its entertainment line-up to business card-
sized logo ads.
Yellow Pages—Ameritech PagesPlus, Greater Benzie County Telephone Directory. Research
indicated that new visitors or people who don't have many personal acquaintances to ask about
hotel and lounge services will look to the Yellow Pages to establish a list of potential hotel and
lounge services to call. Even a small 2" × 2" boxed ad can create awareness and attract the desired
target client, above and beyond the ability of a simple listing. Ameritech Yellow Pages covers the
relevant market area, delivering over 30,000 copies to residents and business. Midwest Directories
covers Greater Benzie County but is considered a second-tier directory to Ameritech.
Telephone Book Cover. A business card-like ad on the plastic cover which is placed over any
telephone book enables the business name/logo to be seen virtually 24 hours a day, 365 days a
year. Covers are distributed bi-annually free of charge to residents and businesses in Benzie
County.
Restaurant Placemats—Opportunities exist for a business card-like ad to be placed on the paper
placemats used in area restaurants (shelf-life of the ad is about six months), or for special (holiday)
events taking place at a restaurant (1-off opportunities). An example would be getting on the area
restaurant placemats (about 9,000 in six months), or getting on the special Lions Club "St. Patrick's
Day" dinner placemats at the Village Restaurant (about 1,000 placemats for that event). Placemat
advertising will reach area residents as well as area visitors/tourists staying at other places.
Additional places to post flyers/business cards or for a business card ad include bulletin boards in
public buildings (grocery stores, senior centers), and playbills for local theater groups.
Example Promotion Budget - 1999 (Amounts Included in Start-Up Funds)
FINANCIAL PLAN
Here is the Project Funding Summary for Seven Elms Resort:
Total $1,400,000
Accounting $1,500
Legal $3,000
Total $116,000
The development of Seven Elms Resort, Inc. will require the full-time talents of Steve Blackburn. Phase II
growth amounts will be developed and sought at a later date, based upon needs to be determined at that
time.
RESUME
This is the resume of Steve Blackburn, the future owner of Seven Elms Resort Steve Blackburn has
demonstrated experience in business and sales organization development. Developed and secured
funding for own organization, author of several successful RFPs, business and market development
plans. Has expertise in customer retention programs, sales training seminars, project planning,
benchmark analysis, and forecasting and budgeting. Designed and implemented computer applications
including: customer database service frequency schedules, truck routing, customer retention surveys,
accounting and commission salary programs.
EMPLOYMENT HISTORY
University of Michigan, Ann Arbor, Michigan
Small Business Development Center
1996-present
As a United States SBA counselor I assist clients in sales and business development and other related
matters including: Sales, Marketing, Manufacturing and Productivity Analysis, Regulations Compliance,
and Regulatory Program Development.
MRT Environmental, Inc., Cleveland, Ohio
1992-1995
Co-founder, Business Development, Marketing, and Sales. A consulting and facilities development
organization for environmental services clients in the health care industry. My responsibilities included:
development of project opportunities and clients, sales personnel and training, advertising and promotion,
and financial record keeping.
Pride & Barrow Industries, Inc., Dallas, Texas
1985-1992
Vice President - Sales and Development. $80 million subsidiary of a $3 billion public company. Created
the new medical services division; integrated third year revenues exceeded $4.5 million and employed
over 25 employees. Market development and direct sales management for all regional special services
subsidiaries. Developed region's first comprehensive medical waste service organization by identifying
and marketing to the healthcare industry an emerging service bundle of packaging, transportation, in-
service training, and treatment of medical wastes. Serviced all sectors of the healthcare industry from
physician offices through major medical centers.
Market Development Representative and Environmental Specialist. Analyzed new business development
opportunities in all service areas. Municipal waste contracts, waste company acquisitions, landfill
development, and expansions and ancillary specialty services. Responsible for training, sales functions,
regulatory data submittal, and special waste stream permitting. Created computer applications and
processing systems to maximize efficiency and minimize errors.
Education
University of Michigan, 1998, M.B.A. candidate.
Notre Dame University - Graduated 1985. B.A. in Business Accounting and Economics. Completed a
course of study for a B.S. in Chemistry.
User Contributions:
1
gebrie Jul 28, 2015 @ 6:06 am
you have good and important habits that i have seen from you which you are volunteer to help other
about this concept.
Comment about this article, ask questions, or add new information about this topic:
Name:
E-mail:
Show my email publicly
Human Verification:
Send comment