BUSINESS PLAN «EcoWood City» Eco-Hotel (Sochi) (with financial model)
Project Description
Project Idea: construction of eco-hotel (complex) on the territory of Krasnodar Krai (Sochi), forest array. The construction is carried out by the unique technology with application of ecological buildings (houses cottages).
Project Target Audience:
Residential buildings of the complex: houses-cottages of «Futteralhaus» company (Germany) production. Amount of houses on lot is 20. «Futteralhaus» are the mobile compact energy efficient and environmentally friendly houses. They are made from natural materials and available for year-round living of family consisting of 1-6 members. Ecological friendless of construction means the usage of natural and simply materials only which are available for secondary processing.
Uniqueness of project economy. The cost of one cottage amounts to 22 thsd EUR, which is lower in 14 times then the cost price of construction of one hotel room in this region.
Excerpts from Research:
The project uniqueness will mean the same distance from Sochi, Krasnaya Poliana and Olimpic cluster in Imeretinka (the territory with highly developed infrastructure).
In the Adler district the sanatorium sphere of service is developed. A large number of sanatoriums and pensions, private hostelries and guest houses is offered for tourists.
The railway station «Adler», Adler wagon depot, international airport «Sochi» (4 Kostromskaya Str) are represented in the district.
The base of productive forces of Krasnodar Krai are the industrial, construction, fuel and energy complexes, field of information and communication technologies as well as agriculture, transport, tourist, resort and recreation complexes. The last three directions (agriculture, transport, tourist, resort and recreation complexes) are appropriate for the social and economic development of Russia and determine the especial status of Krasnodar Krai and country economy.
The natural and climatic conditions of the region which are unique for Russia, presence of advanced medical facilities and technologies, historical sights create the potential for development of highly-efficient, competitive tourist and recreational complex of international level which forms the positive image of the country in the international arena and provides the increasing needs of population in services associated with the rest, treatment and tourism:
Components of the hotel:
1. Houses-cottages. Inside area is *** sq m (corresponds to the category of 3 stars). A full set of necessary services included: a large bed, complete bathroom, living room, kitchen block, the work area. There is, as assumed, a hairdryer, TV-set, mini-bar, conditioner, smoke detector WI FI, etc. in the room.
2. Block-reception is combined with the household unit. The total area is approximately *** sq m. The front desk with a waiting area is situated in the block. The household part is the storage of clean linen and detergents as well as the premises for personnel.
3. Cafe. The placement of cafe with not large end-cooking kitchen is possible as an application or in case of absence on the adjacent territory. Only the light appetizers, packaged salads, coffee/tea, sandwiches etc. are served in cafe.
Due to the construction and competent planning the house consumes very little energy for hitting and in the autonomous version can be completely energy independent.
In 2013 Sochi was visited by *** mln people, and in 2014 through the Olympiad and implementation of deferred demand the increasing of tourist flow is expected by 30%. It can lead to straightening of competition among hotel operators.
Approximately *** means of accommodation with total number of rooms about *** thsd were constructed by the Olympiad. Herewith *** hotels and sanatoriums are classified (*** thsd of rooms) in the city. Thus, through the Olympiad the total number of rooms of Sochi was replenished by more than 60%, which is a significant growth for such short period.
Twenty developed and reconstructed by the Olympiad hotels belong to categories of 4* and 5*, herewith *** of them is under the management of international hotel operators.
During the assessing of this investment project two scenarios of implementation were used: pessimistic and optimistic. The distinction among scenarios is concluded in offering of different occupancy of hotel rooms, and accordingly, the calculations were performed under the new indicators. Thus, the average annual occupancy at the pessimistic forecast amounts to ***%, at the optimistic – ***% of maximum possible.
During the process of project estimation its accordance to the different criteria of acceptability was verified and also the analysis of its basic parameters and variants was performed.
Project Idea: construction of eco-hotel (complex) on the territory of Krasnodar Krai (Sochi), forest array. The construction is carried out by the unique technology with application of ecological buildings (houses cottages).
Project Target Audience:
- people for which the environmental friendliness and simplicity of residential premises have a priority;
- young families;
- people wanted to rest near the beach and native environmental (forest) simultaneously;
- fishermen and tourists;
- youth companies;
- sports teams (ski and snowboard) – for period of November-April.
Residential buildings of the complex: houses-cottages of «Futteralhaus» company (Germany) production. Amount of houses on lot is 20. «Futteralhaus» are the mobile compact energy efficient and environmentally friendly houses. They are made from natural materials and available for year-round living of family consisting of 1-6 members. Ecological friendless of construction means the usage of natural and simply materials only which are available for secondary processing.
Uniqueness of project economy. The cost of one cottage amounts to 22 thsd EUR, which is lower in 14 times then the cost price of construction of one hotel room in this region.
Excerpts from Research:
The project uniqueness will mean the same distance from Sochi, Krasnaya Poliana and Olimpic cluster in Imeretinka (the territory with highly developed infrastructure).
In the Adler district the sanatorium sphere of service is developed. A large number of sanatoriums and pensions, private hostelries and guest houses is offered for tourists.
The railway station «Adler», Adler wagon depot, international airport «Sochi» (4 Kostromskaya Str) are represented in the district.
The base of productive forces of Krasnodar Krai are the industrial, construction, fuel and energy complexes, field of information and communication technologies as well as agriculture, transport, tourist, resort and recreation complexes. The last three directions (agriculture, transport, tourist, resort and recreation complexes) are appropriate for the social and economic development of Russia and determine the especial status of Krasnodar Krai and country economy.
The natural and climatic conditions of the region which are unique for Russia, presence of advanced medical facilities and technologies, historical sights create the potential for development of highly-efficient, competitive tourist and recreational complex of international level which forms the positive image of the country in the international arena and provides the increasing needs of population in services associated with the rest, treatment and tourism:
- climate in the region is one of the most favorable in Russia for human living and activity. Krasnodar Krai is the warmest region in Russia; the average time length when the sun weather is obtaining in the daytime on the territory of region is 2 300 hours per year;
- through a combination of favorable climatic conditions and presence of deposits of mineral waters and curative mud Krasnodar Krai is the most popular resort and tourist regions and actually the only in Russia seaside balneological resort and recreational center;
- during the period of maximum deployment the daily capacity of regional resorts reaches to 450-480 thsd of seats;
- potential of sanatorium and tourist complex of the region is implemented due to the creation on its territory of special economic zone of tourist-recreational type.
Components of the hotel:
1. Houses-cottages. Inside area is *** sq m (corresponds to the category of 3 stars). A full set of necessary services included: a large bed, complete bathroom, living room, kitchen block, the work area. There is, as assumed, a hairdryer, TV-set, mini-bar, conditioner, smoke detector WI FI, etc. in the room.
2. Block-reception is combined with the household unit. The total area is approximately *** sq m. The front desk with a waiting area is situated in the block. The household part is the storage of clean linen and detergents as well as the premises for personnel.
3. Cafe. The placement of cafe with not large end-cooking kitchen is possible as an application or in case of absence on the adjacent territory. Only the light appetizers, packaged salads, coffee/tea, sandwiches etc. are served in cafe.
Due to the construction and competent planning the house consumes very little energy for hitting and in the autonomous version can be completely energy independent.
In 2013 Sochi was visited by *** mln people, and in 2014 through the Olympiad and implementation of deferred demand the increasing of tourist flow is expected by 30%. It can lead to straightening of competition among hotel operators.
Approximately *** means of accommodation with total number of rooms about *** thsd were constructed by the Olympiad. Herewith *** hotels and sanatoriums are classified (*** thsd of rooms) in the city. Thus, through the Olympiad the total number of rooms of Sochi was replenished by more than 60%, which is a significant growth for such short period.
Twenty developed and reconstructed by the Olympiad hotels belong to categories of 4* and 5*, herewith *** of them is under the management of international hotel operators.
During the assessing of this investment project two scenarios of implementation were used: pessimistic and optimistic. The distinction among scenarios is concluded in offering of different occupancy of hotel rooms, and accordingly, the calculations were performed under the new indicators. Thus, the average annual occupancy at the pessimistic forecast amounts to ***%, at the optimistic – ***% of maximum possible.
During the process of project estimation its accordance to the different criteria of acceptability was verified and also the analysis of its basic parameters and variants was performed.
EXECUTIVE SUMMARY
1.0.PROJECT CONCEPT
2.0. DESCRIPTION OF REGION
3.0. TECHNICAL AND ECONOMIC PROJECT PARAMETERS
3.1.Lot Description
3.2.Residential Buildings Description
3.3.Lot Infrastructure
4.0. MARKETING STRATEGY
4.1.Marketing Concept, Target Audience
4.2.Competitive Environment
4.3.Pricing Policy
5.0. ORGANIZATIONAL PLAN
5.1.Hotel Personnel
6.0. OPERATIONAL PLAN
6.1. Plan of Implementation
6.2. Plan of Sales
6.2.1. Project Basic Parameters
6.3. Complex Occupancy (Pessimistic Scenario)
6.4. Services Volume (Pessimistic Scenario)
6.5. Revenue from Project Services Sales (Pessimistic Scenario)
7.0. FINANCIAL AND INVESTMENT PLAN (PESSIMISTIC SCENARIO)
7.1.Costs for Project Personnel
7.2. Costs for Personnel by Years (Pessimistic Scenario)
7.3. Total Project Costs (Pessimistic Scenario)
7.4. Project Taxation (Pessimistic Scenario) by Years
7.5. Capital Expenditures
7.6. Investment
7.7. Depreciation
7.8. Profit and Loss Statement
7.9. Cash Flow Statement
7.10. Efficiency Indicators by Years
7.11. Cash Flow to Invested Capital
7.12. Cash Flow
7.13. Project Financial Indicators (Pessimistic Scenario)
8.0. FINANCIAL AND INVESTMENT PLAN (OPTIMISTIC SCENARIO)
8.1. Complex Occupancy (Optimistic Scenario)
8.2. Services Volume (Optimistic Scenario)
8.3. Revenue from Project Services Sales (Optimistic Scenario)
8.4. Costs for Project Personnel
8.5. Total Project Costs (Optimistic Scenario)
8.6. Project Taxation (Optimistic Scenario) by Years
8.7. Capital Expenditures
8.8. Investment
8.9. Depreciation
8.10. Profit and Loss Statement
8.11. Cash Flow Statement
8.12. Cash Flow Statement by Years
8.13. Efficiency Indicators by Years
8.14. Cash Flow to Invested Capital
8.15. Cash Flow
8.16. Project Financial Indicators (Optimistic Scenario)
9.0. GENERAL CONCLUSION BY PROJECT
INFORMATION ABOUT THR «VTSCONSULTING» COMPANY
1.0.PROJECT CONCEPT
2.0. DESCRIPTION OF REGION
3.0. TECHNICAL AND ECONOMIC PROJECT PARAMETERS
3.1.Lot Description
3.2.Residential Buildings Description
3.3.Lot Infrastructure
4.0. MARKETING STRATEGY
4.1.Marketing Concept, Target Audience
4.2.Competitive Environment
4.3.Pricing Policy
5.0. ORGANIZATIONAL PLAN
5.1.Hotel Personnel
6.0. OPERATIONAL PLAN
6.1. Plan of Implementation
6.2. Plan of Sales
6.2.1. Project Basic Parameters
6.3. Complex Occupancy (Pessimistic Scenario)
6.4. Services Volume (Pessimistic Scenario)
6.5. Revenue from Project Services Sales (Pessimistic Scenario)
7.0. FINANCIAL AND INVESTMENT PLAN (PESSIMISTIC SCENARIO)
7.1.Costs for Project Personnel
7.2. Costs for Personnel by Years (Pessimistic Scenario)
7.3. Total Project Costs (Pessimistic Scenario)
7.4. Project Taxation (Pessimistic Scenario) by Years
7.5. Capital Expenditures
7.6. Investment
7.7. Depreciation
7.8. Profit and Loss Statement
7.9. Cash Flow Statement
7.10. Efficiency Indicators by Years
7.11. Cash Flow to Invested Capital
7.12. Cash Flow
7.13. Project Financial Indicators (Pessimistic Scenario)
8.0. FINANCIAL AND INVESTMENT PLAN (OPTIMISTIC SCENARIO)
8.1. Complex Occupancy (Optimistic Scenario)
8.2. Services Volume (Optimistic Scenario)
8.3. Revenue from Project Services Sales (Optimistic Scenario)
8.4. Costs for Project Personnel
8.5. Total Project Costs (Optimistic Scenario)
8.6. Project Taxation (Optimistic Scenario) by Years
8.7. Capital Expenditures
8.8. Investment
8.9. Depreciation
8.10. Profit and Loss Statement
8.11. Cash Flow Statement
8.12. Cash Flow Statement by Years
8.13. Efficiency Indicators by Years
8.14. Cash Flow to Invested Capital
8.15. Cash Flow
8.16. Project Financial Indicators (Optimistic Scenario)
9.0. GENERAL CONCLUSION BY PROJECT
INFORMATION ABOUT THR «VTSCONSULTING» COMPANY
LIST OF TABLES, DIAGRAMS AND FIGURES
Figure 1. Location of Lot of Eco-Hotel Development
Figure 2. Lot and View from Lot of Eco-Hotel Development
Figure 3. Plan of Eco-Hotel on Lot
Figure 4. Visualizing of Development Lot with Residential Buildings of Eco-Hotel
Figure 5. Interior of House-Cottage
Figure 6. Layout of House-Cottage (Variant 1)
Figure 7. Layout of House-Cottage (Variant 2)
Figure 8. Internal Furnish of Project Houses-Cottages
Figure 9. Variants of Facades Furnish of Project Houses-Cottages
Figure 10. Example of Cafe Interior Decoration
Figure 11. Remoteness of Village from Main Infrastructure Facilities and Settlements
Table 1. Dynamics of Number of district Population, 2002-2010
Table 2. Basic Macroeconomic Indicators of Krasnodar Krai in 2008-2012
Table 3. Chronicle of Terms of the First Snow Cover and Opening of Season in Krasnaya Poliana, 2009-2014
Table 4. Comparative Analysis of Competitive Projects
Table 5. Eco-Hotel Personnel
Table 6. Project Basic Indicators
Table 7. Cost of Basic Services on the Territory of Eco-Village
Table 8. Indicators of Project Efficiency (by Pessimistic Scenario)
Table 9. Indicators of Project Efficiency (by Optimistic Scenario)
Table 10. Summary Table of Indicators of Project Economic Efficiency
Diagram 1. Average Seasonality of Prices by Number of Rooms
Diagram 2. Average Occupancy by Total Number of Rooms
Diagram 3. Dynamics of Complex Occupancy, % of Planed Occupancy
Diagram 4. Revenue Dynamics by Years
Diagram 5. Revenue Structure by Groups
Diagram 6. Cash Flows
Diagram 7. Accumulated Cash Flows
Diagram 8. Average Seasonality of Prices by Number of Rooms
Diagram 9. Average Occupancy by Total Number of Rooms
Diagram 10. Dynamics of Complex Occupancy, % of Planed Occupancy
Diagram 11. Revenue Dynamics by Years
Diagram 12. Revenue Structure by Groups
Diagram 13. Cash Flows
Diagram 14. Accumulated Cash Flows
Figure 1. Location of Lot of Eco-Hotel Development
Figure 2. Lot and View from Lot of Eco-Hotel Development
Figure 3. Plan of Eco-Hotel on Lot
Figure 4. Visualizing of Development Lot with Residential Buildings of Eco-Hotel
Figure 5. Interior of House-Cottage
Figure 6. Layout of House-Cottage (Variant 1)
Figure 7. Layout of House-Cottage (Variant 2)
Figure 8. Internal Furnish of Project Houses-Cottages
Figure 9. Variants of Facades Furnish of Project Houses-Cottages
Figure 10. Example of Cafe Interior Decoration
Figure 11. Remoteness of Village from Main Infrastructure Facilities and Settlements
Table 1. Dynamics of Number of district Population, 2002-2010
Table 2. Basic Macroeconomic Indicators of Krasnodar Krai in 2008-2012
Table 3. Chronicle of Terms of the First Snow Cover and Opening of Season in Krasnaya Poliana, 2009-2014
Table 4. Comparative Analysis of Competitive Projects
Table 5. Eco-Hotel Personnel
Table 6. Project Basic Indicators
Table 7. Cost of Basic Services on the Territory of Eco-Village
Table 8. Indicators of Project Efficiency (by Pessimistic Scenario)
Table 9. Indicators of Project Efficiency (by Optimistic Scenario)
Table 10. Summary Table of Indicators of Project Economic Efficiency
Diagram 1. Average Seasonality of Prices by Number of Rooms
Diagram 2. Average Occupancy by Total Number of Rooms
Diagram 3. Dynamics of Complex Occupancy, % of Planed Occupancy
Diagram 4. Revenue Dynamics by Years
Diagram 5. Revenue Structure by Groups
Diagram 6. Cash Flows
Diagram 7. Accumulated Cash Flows
Diagram 8. Average Seasonality of Prices by Number of Rooms
Diagram 9. Average Occupancy by Total Number of Rooms
Diagram 10. Dynamics of Complex Occupancy, % of Planed Occupancy
Diagram 11. Revenue Dynamics by Years
Diagram 12. Revenue Structure by Groups
Diagram 13. Cash Flows
Diagram 14. Accumulated Cash Flows
