Australian Financial Information Interpretation

Financial Planning Hotel

Project 1
STUDENT NAME:
BATCH: 2023-2024 BSITM-TTO 3-Y1-1
TEACHER: JENETTE LIM

eVersity
Case Study: The Azure Retreat - A Boutique Hotel Venture in Brisbane
Background:
Nestled in the vibrant heart of Brisbane, "The Azure Retreat" is the brainchild of entrepreneurs Amelia Richardson and Raj Patel. Both Amelia and Raj have
travelled extensively and recognized a gap in the Brisbane hospitality market for a boutique hotel that seamlessly marries traditional architecture with modern
luxuries.
Vision:
"The Azure Retreat" aims to be a sanctuary in the city, offering guests a serene escape from the hustle and bustle without compromising on accessibility to
Brisbane's myriad attractions. The hotel's design takes inspiration from Queensland's colonial past, integrating it with contemporary aesthetics to appeal to both
the nostalgic and the modern traveller.
Facilities & Amenities:
1. Rooms: A total of 50 rooms, divided into:
 Standard Rooms: 30
 Deluxe Suites: 15
 Presidential Suite: 5
2. Dining:
 "Lagoon Bistro": A gourmet restaurant with a seating capacity of 80, aiming to offer a fusion of Australian and international cuisines.
 "Skyline Bliss": A rooftop bar offering panoramic views of the city, catering to around 50 patrons.
3. Wellness:
 "Sapphire Spa": A wellness spa with services ranging from massages to holistic treatments.
 Fitness Centre: Equipped with modern gym equipment.
4. Others:
 A conference room for business meetings and small events.
 An outdoor pool.
 A gift shop stocking local artisan crafts and products.
Target Audience:
While the hotel aspires to cater to a wide range of guests, the primary target audience includes:
 International tourists.
 Business travellers.
 Local residents looking for staycations or special dining experiences.

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Financial Data:
 Initial Investment: $5 Million (This includes property acquisition, construction, and initial marketing campaigns).
 Expected Room Rates:
 Standard: $150/night
 Deluxe: $250/night
 Presidential: $500/night
 Dining:
 Expected average spending in the "Lagoon Bistro": $50/person
 "Skyline Bliss" average bill: $40/person
 Spa & Wellness:
 Average treatment cost: $100
 Other revenues include conference room bookings, poolside events, and gift shop sales.
Challenges & Considerations:
1. Brisbane has a competitive hotel market with several established chains.
2. Seasonal fluctuations: Brisbane sees a tourist influx mainly during events and the holiday season.
3. Maintaining a balance between the hotel's vintage appeal and modern amenities.
4. Ensuring top-notch service quality to generate positive word-of-mouth and repeat bookings.

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 BUDGET ALLOCATION SPREADSHEET TEMPLATE

Department Allocated Budget (AUD) Actual Expenses (AUD) Variance (AUD) Notes/Comments

$500,000 $480,000 $20,000 Procuring quality

furnishings and decor
items for the hotel,
including colonial-
inspired furniture and
Procurement modern amenities.

$1,200,000 $1,150,000 $50,000 Hiring skilled and

experienced staff for
various departments,
ensuring excellent
Staffing customer service.

$800,000 $750,000 $50,000 Implementing a

comprehensive
marketing strategy to
promote the boutique
hotel to the target
Marketing audience.

$600,000 $580,000 $20,000 Securing a prime

location for "The Azure
Retreat" within
Rent & Leases Brisbane's city center.

Maintenance $300,000 $280,000 $20,000 Regular maintenance of

the hotel premises and

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 facilities to uphold the
vintage appeal and
modern standards.

$150,000 $140,000 $10,000 Procuring necessary

supplies for day-to-day
operations, including
linens, toiletries, and
Supplies cleaning supplies.

$450,000 $420,000 $30,000 Contingency fund for

unexpected expenses
and unforeseen
Other Expenses challenges.

$4,000,000 $3,800,000 $200,000 Overall budget

allocation and
expenditure for "The
Total Azure Retreat."

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 ONE-YEAR FINANCIAL FORECAST TEMPLATE

Month Estimated Revenue (AUD) Estimated Expenses (AUD) Projected Profit/Loss (AUD)

January $400,000 $300,000 $100,000

February $350,000 $280,000 $70,000

March $450,000 $320,000 $130,000

April $380,000 $300,000 $80,000

May $500,000 $350,000 $150,000

June $550,000 $370,000 $180,000

July $600,000 $380,000 $220,000

August $580,000 $360,000 $220,000

September $450,000 $320,000 $130,000

October $470,000 $330,000 $140,000

November $400,000 $310,000 $90,000

December $720,000 $350,000 $370,000

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 POTENTIAL RISKS AND MITIGATION STRATEGIES TEMPLATE

Probability Responsible
Identified Risk (High/Medium/Low) Potential Impact (AUD) Mitigation Strategy Person/Department

High Decreased market share Differentiate "The Azure Marketing Department

and potential revenue Retreat" through unique and General
loss experiences, personalized Management
services, and leveraging
the boutique hotel
concept. Implement
aggressive marketing
Competition from strategies to highlight the
Established Hotel hotel's distinctive
Chains features.

Quality of Service High Negative reviews and a Implement rigorous staff Human Resources and
decline in repeat training programs, Customer Service
business. customer feedback Department
mechanisms, and
performance
assessments. Encourage a
customer-centric culture.

Fluctuations in Currency Medium Impact on international Monitor exchange rates Finance and Marketing
Exchange Rates tourist bookings and and consider offering Department
revenue. fixed-rate bookings.
Diversify marketing
efforts to attract a mix of
international and local
guests.

Seasonal Fluctuations in Medium Reduced revenue during Develop targeted Sales and Marketing

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 Tourism
Staffing Challenges
Maintenance of Vintage
Appeal and Modern
Amenities
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off-peak seasons.
Low Impact on service quality
and customer satisfaction
Medium Difficulty in meeting
guest expectations for
both nostalgia and
modern comfort
promotions and Department
packages during low
seasons to attract local
residents and business
conferences. Diversify
services to accommodate
varying guest needs.
Invest in employee Human Resources
training and Department
development, maintain
competitive salaries, and
implement employee
retention programs
Regularly update and Interior Design Team and
maintain modern Operations
amenities while
preserving the vintage
charm. Seek guest
feedback on the balance
between tradition and
modernity and make
adjustments accordingly.
 RECORD-KEEPING TEMPLATE

Transaction Type Document Reference

Date (DD/MM/YYYY) (Income/Expense) Amount (AUD) Description Department (e.g., Invoice #)

01/01/2023 Expense $500,000 Property Acquisition Operations Invoice #001

Expense $100,000 Initial marketing Marketing Invoice #002

05/01/2023 campaign

10/01/2023 Income $320,000 Room bookings Front Desk Reservation #11

15/02/2023 Expense $200,000 Construction costs Operations Invoice #23

Expense $30,000 Spa equipment Wellness Invoice #44

02/03/2023 purchase

Income $70,000 Lagoon Bistro - Dining Receipt #101

10/03/2023 Dining revenue

Income $25,000 Conference room Events Reservation #102

20/04/2023 booking

Expense $50,000 Rooftop bar Dining Invoice #75

05/05/2023 renovation

15/06/2023 Income $10,000 Gift shop sales Gift Shop Receipt #322

Expense $10,000 Outdoor pool Facilities Invoice #106

03/07/2023 maintenance

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 Income $28,000 Skyline Bliss - Dining Receipt #323
10/08/2023 Rooftop bar revenue

Expense $15,000 Fitness Centre Wellness Invoice #107

01/09/2023 equipment purchase

Income $12,000 Spa & Wellness - Wellness Receipt #304

12/09/2023 Treatment revenue

02/10/2023 Income $220,000 Room bookings Front Desk Reservation #503

Expense $5,000 Gift shop inventory Gift Shop Invoice #208

20/10/2023 replenishment

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