multifunctional center in carpiano 14th july presentation

Business Plan

Multifunctional center in Carpiano

Master in Tourism Management – VII edition – 2010-2011 1

Tutor: Professor Emilio Valdameri

Antonelli Davide, Bekmurzayeva Aspet, Cusenza Simona,

Georgieva Dilyana, Jurgembayeva Dinara,

Perna Monica, Torricella Francesca

AKNO Business Parks


Founded by Mr. Massimo Nouhi, AKNO Business Parks S.p.A. is the leader in the

construction of industrial and logistic complexes as well as in the revitalization

and reconfiguration of forgotten areas.

It first started its operations in a town close to Milan, Caleppio di Settala, where

its headquarters are still located today.

What is a BUSINESS PARK?

A business park is an industrial complex with excellent functionality of

the structures, respect of the environment and security and preservation

of the properties typically protected by perimeter fences with a singular

entrance with 24 hours surveillance.


The business park is located in Carpiano.

The project


A closer focus….

HOTEL AREA


AREA

Methodologies

1. Introduction to Carpiano

2. Inventory of attractions

3. Tourism trends and competitive set analysis

4. Target market: survey outcome

Master in Tourism Management – VII edition – 2010-2011


5. Analysis of the business tourism segments

6. Promotional goals

7. Evaluation plan and choice of the partner in management

8. Sales and promotion campaign

6

1. Introduction to Carpiano

• Furthest Municipality in

the province of Milan;

• 3700 inhabitants;


• 14 working farmsteads in

17 square kilometers;

• Industrial firms and

administrative offices;

Attractions: Firms: Bars: Restaurants: Not provided Services:

2. Inventory of attractions


Attractions:

- CarthusianMonastery;

- Cathedral;

- Chiesa di San Michele.

Firms:

- DHL Freight;

- Volvo;

- GAMMA commercial;

- SDA;

- HILTI ITALIA SPA.

Bars:

- Benzoni - Bar Tabacchi;

- La Mantide;

- A.S. Carpianese

- Bar Cavallino.

Restaurants:

- Pizzeria Dai Pugliesi 3 Da

William;

- RistoranteLodigiani;

- PiemmeaS.R.L.

Not provided Services:

-Supermarket;

- Hospital;

- Pharmacies;

- Cinema;

- Leisure facilities (gym,

beauty centre).

Strengths:

- Position: near Milan, close to 2 highways

- Multifunctional centre

- 24 hour security of the center as a

guarantee for drivers

- Local community involvement

Weaknesses:

- Carpiano is not a tourism destination

- Lack of services

- Moderate involvement of the municipality

- The lack of transports’ connections

- Absence of tourism planning & promotion

SWOT SWOT

Why Carpiano?Understanding our location


Opportunities:

- The international scenario and Expo 2015

- The position of Carpiano

- The business and logistics environment

- Presence of some cultural attractions

- The great number of events

- Brand new building

Threats:

- Competitive set

- Seasonality

- Lack of cooperation and collaboration

SWOT SWOT analysisanalysis

World Tourism Trends

Tourism flow in the world: UNWTO forecast

International tourist arrivals by region (in millions), 1950 - 2020

3. Tourism trends


Source: UNWTO

World Tourism Trends

Inbound tourism: means of transport

3. Tourism trends


Source: UNWTO

60,0%

80,0%

100,0%

3. Tourism trends

European Scenario

Percentage Variation in International Arrivals


17,00%

-60,0%

-40,0%

-20,0%

0,0%

20,0%

40,0%

Spain

France

Italy

12

Source: elaboration from Eurostat data

Tourism in Italy

Demand in Italy

Arrivals for different categories

30.000.000

35.000.000

40.000.000

3. Tourism trends


-

5.000.000

10.000.000

15.000.000

20.000.000

25.000.000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

5 stars and 5* luxury

3 stars

4 stars

2 stars

1 star

Source: elaboration from Eurostat data

Nord Italy Centre Italy

South Italy

13%

Managers,

enterpreneurs

and freelance

Clerks

Business travellers divided by professionBusiness travel in Italy

Tourism in Italy:

Demand in Italy in Business Travel

3. Tourism trends


48%

24%

28%

The chart shows that one traveler out of two is a

business man. (That means great opportunities

for a business hotel in Carpiano).

26%

54%

7%13%

Working class

Small

enterpreneurs

The main type of business traveler are clerks.

Source: Istat, quarter year survey -"Viaggi e vacanze“, 2009

Tourism in Lombardy:

Tourists trend in Lombardy and arrivals composition in Milan

20.000.000

25.000.000

30.000.000

35.000.000

Arrivals

Overnights

3. Tourism trends


PV

1%

MN

2%

SO

5% VA

7% BG

7%

BS

16%

CO

8%CR

2%

LC

1%

LO

1%

MB

3%

MI

47%

15

-

5.000.000

10.000.000

15.000.000

20.000.000

2000

2001

2002

2004

2005

2006

2007

2008

2009

Overnights

Source: Istat

Tourism in Milan:

Tourism demand in Milan and Province

8.000.000

10.000.000

12.000.000

3. Tourism trends


The trend is nearly constant during those 9 years, except for the period 2004-2005 that shows a little

decrease and then comes back growing.

0

2.000.000

4.000.000

6.000.000

8.000.000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Overnights

Arrivals

Source: Istat

The tourism offer

Evolution of the offer capacity in Italy

1.500.000

2.000.000

2.500.000

3. Tourism trends


0

500.000

1.000.000

1.500.000

Bedplaces

Rooms

Total

17

Source: Istat

20.000

25.000

30.000

The tourism offer

Evolution of the offer capacity in Italy

3. Tourism trends


0

5.000

10.000

15.000

1990

1993

1994

1995

1998

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

5 * - 4*

3* - RTA

2* - 1*

Source: Istat

18

3. Tourism trends

6.000

7.000

8.000

9.000

10.000

The tourism offer

The accommodation offer in Milan


-

1.000

2.000

3.000

4.000

5.000

6.000

2002 2003 2004 2005 2006 2007 2008 2009

4 stars 5 stars - luxury 3 stars -RTA 2 stars 1 star

Source: Istat

3. Tourism trends

0,3%4,4% 2,2%

5 * - LUXURY 4 * 3* 2* 1*

The tourism offer

Percentage composition of the bed offer in Milan in 2009


Source: Istat

60,2%

32,9%

3.B Competitive set analysis

NovotelNovotel Air HotelAir Hotel

ATA Hotel ATA Hotel

The The OneOneCrowneCrowne

PlazaPlaza

HolidayHoliday

INNINNNHNH


OUR OUR

Hotel Hotel

Hotel Hotel

Il TelegrafoIl Telegrafo

Residence Residence

GolfGolf

ATA Hotel ATA Hotel

RipamontiRipamonti


� One-day survey in Carpiano;

� More than 40 people asked to be

interviewed, but only 25% agreed;

� Residents’ survey divided in two parts:

- Socio Demographic Data;


- Socio Demographic Data;

-AKNO Carpiano Project Awareness;

� Municipality’s interview with the

participation of:

- Mr Ronchi, Carpiano’s Mayor;

- Mr Brocca, the architect responsible for

the technical department of the

Municipality of Carpiano.

Where

“improvements”

is a synonym of


90%

Have interviewees ever heard

about AKNO project?

Yes No

10%

Interviewees' opinion about the

project

0%

30%

Interviewees' satisfaction degree with

actual services

High10%

0%

Interviewees' opinion about the

Municipality of Carpiano

A good place where to

live


is a synonym of

services to be

provided in

Carpiano.

23

10%

Yes No

90%

In favour

Against

Uninterested70%

30%Medium

Low

10%

90%

live

A place where

improvements are

needed

A place with a lack of

opportunities


40%

30%

10%

20%

Primary services residents would like

to have in CarpianoThe absence of

supermarkets

and stores

really upsets the

community of Carpiano.


40%50%

100%

10%

Shops Cinema Supermarkets Restaurants

Activities residents would like to have

in Carpiano

ATMs Grocery Banks/Post office Gym

community of Carpiano.

The construction of the

multifunctional center

should therefore take this

into consideration.


10%10%

Kind of hospitality services

interviewees would expect to have in

Carpiano

Private B&B

The choice of hotel

category has taken into

consideration several

factors, among which the


80%

Private B&B

Boutique/Design

hotel

Service apartments

factors, among which the

residents’ perception

about the kind of

accommodation services

suitable for Carpiano.

Clerks/ Sales Representatives and mid-scale Business MenClerks/ Sales Representatives and mid-scale Business Men


After the analysis of the needs of different possible types of segments,

we decided to mainly focus on the following three targets:


and mid-scale Business Menand mid-scale Business Men

Families and Group of FriendsFamilies and Group of Friends

Young CouplesYoung Couples


The HOTEL STRUCTURE

Ground floor: bar, reception, back-

office with Management offices, a 70

sq meter equipped meeting room for

40 people;

First floor: 14 out of 30 connecting

rooms for families

1st, 2nd and 3rd Floor


rooms for families

Second floor: standard rooms for

young couples with welcome gifts at

arrival: candies and wine bottle;

Third floor: standard rooms for clerks;

Fourth floor: EXECUTIVE floor with 1

suite and 28 rooms with free mini bar,

higher quality furniture, 30 sq meter

“private” equipped meeting room for

2-15 people and waiting room.

Fourth Floor


The HOTEL STRUCTURE

The basement plan will

provide:

-parking for hotel guests;


- a wellness center with

swimming pool, Turkish bath

and water massage.


HOTEL STRUCTURE:

The current look and design…



HOTEL DESIGN:

How it could look like ...

The wellness Room Room 4th floor


The hallThe wellness

center

Room

type A

Room

type B4th floor

Suite

Core strategyModernity that will surprise you


TargetClerks, families, young couples, friends and professionals

looking for 3-4 stars hotel experience due to their success and hard work.


• Extensive menu

• All types of products that can be found at the hotel bar or can be ordered at the main restaurant

• Extensive menu

• All types of products that can be found at the hotel bar or can be ordered at the main restaurant

Room service

• Different each day and tailored to individuals’ interests

• Food, candies and bottles of wine in the room

• Different each day and tailored to individuals’ interests

• Food, candies and bottles of wine in the roomSurprise gifts

Modernity that will surprise you

How?

Core strategy

Project unwavering dedication to the mission and surprise visitors with services

Focus on the staff members

One

• New techniques in hiring new staff looking at their creativity and ethics



One their creativity and ethics

Two

• Staff will be trained to seek out new ways tosurprise and excite customers

Three

• The results of the training will be measuredthrough customer ratings and customer reviews


Services offered in the hotel


-12 hour bar

- 4 self-service machines

- happy hours

- free breakfast for children up to 12 years old

- High chairs and bottle warmers

- Topolino menu for kids

-12 hour bar

- 4 self-service machines

- happy hours

- free breakfast for children up to 12 years old

- High chairs and bottle warmers

- Topolino menu for kids

- Room service

- Everyday newspaper

- Late check-in for business men and late check-out for

couples

- Shuttle service upon request from/to Linate airport and San

Donato Station

- Parking

- Room service

- Everyday newspaper

- Late check-in for business men and late check-out for

couples

- Shuttle service upon request from/to Linate airport and San

Donato Station

- Parking

- Free Wi FI in the whole hotel

-Internet corner in the reception with 2 computers

- Meeting rooms with video equipment, copy/print service,

fax machine, international calls, computer to project presentations, stationery

(branded blocks and pens)

- Free Wi FI in the whole hotel

-Internet corner in the reception with 2 computers

- Meeting rooms with video equipment, copy/print service,

fax machine, international calls, computer to project presentations, stationery

(branded blocks and pens)


Services offered in the multifunctional center


Laundry Room

Laundry Room

SupermarketSupermarketRoad House Restaurant Road House Restaurant

Parking Parking

Considerations on the Italian market and its composition

Ita

lia

n c

ha

ins

Generally

medium or small

Fore

ign

ch

ain

s

Working all across

the world, usually

Ag

gre

ga

tio

ns

Companies that, on

the national or



Ita

lia

n c

ha

ins

medium or small

size. Fo

reig

n c

ha

ins

the world, usually

providing

managing or

franchising

contracts. Ag

gre

ga

tio

ns

the national or

international base,

represent

independent

hotels.


� Affiliation contract;

Considerations on the possible brands

And the final decision:


� Affiliation contract;

� Long- term strategy;

� Coherence with our philosophy;

�Less binding contract;

� BW presence in the business area of Milan and brand recognition;

� Possibility to receive reservations from all over the world;

� Possibility of offering staff training;

� Special treatments to Cluster Business and Cluster Kids segment, as

well as women.

7.B Economic Analysis

REVENUES 2012 2013 2014 2015 2016

Rooms Revenues (VAT excluded breakfast excluded) € 1.037.564,70 € 1.226.515,07 € 1.431.259,98 € 1.657.592,57 € 1.799.716,43

% TOTAL REVENUES 67% 69% 70% 70% 70%

Average Price for Breakfast (VAT included) € 7,00 € 7,00 € 7,00 € 8,00 € 8,00

Revenues for Breakfast (VAT included) € 187.879,36 € 204.463,64 € 221.047,91 € 276.318,00 € 300.009,82

% TOTAL REVENUES 12% 11% 11% 12% 12%

Total Rooms Revenues € 1.225.444,07 € 1.430.978,70 € 1.652.307,89 € 1.933.910,57 € 2.099.726,25

% TOTAL REVENUES 79% 80% 81% 81% 82%

% of presence of guests in the bar 35% 35% 35% 35% 35%

Average price for meal (VAT included)* € 7,50 € 7,50 € 7,50 € 7,50 € 7,50

Revenues for Bar (VAT excluded) € 70.454,76 € 76.673,86 € 82.892,97 € 90.666,84 € 98.440,72

Revenues for Banquets/Seminars (VAT excluded) € 35.500,00 € 36.000,00 € 37.500,00 € 38.500,00 € 40.000,00

TOTAL REVENUES FOR BREAKFAST, BAR AND BANQUETS € 293.834,13 € 317.137,50 € 341.440,88 € 405.484,84 € 438.450,54

% TOTAL REVENUES 19% 18% 17% 17% 17%

REVENUES for INTERNATIONAL CALLS*** € 25,00 € 25,00 € 25,00 € 25,00 € 25,00

REVENUES for MICE FACILITIES**** € 12.000,00 € 12.000,00 € 12.000,00 € 12.000,00 € 12.000,00

REVENUES for WELLNESS CENTER (VAT excluded)***** € 20.000,00 € 25.000,00 € 25.000,00 € 25.000,00 € 25.000,00

TOTAL OTHER REVENUES (VAT excluded) € 32.025,00 € 37.025,00 € 37.025,00 € 37.025,00 € 37.025,00

% TOTAL REVENUES 2,1% 2,1% 1,8% 1,6% 1,4%

NET REVENUES VAT Excluded € 1.551.303,19 € 1.785.141,20 € 2.030.773,76 € 2.376.420,41 € 2.575.201,79

OPERATING COSTS******


OPERATING COSTS******

TOTAL PERSONNEL

Total employees 17 18 18 22 23

Value € 597.251,47 € 628.015,56 € 658.204,80 € 728.991,36 € 759.342,98

% of Revenues 38,5% 35,2% 32,4% 30,7% 29,5%

VARIOUS COSTS for ROOMS (room supplies+laundry+linen) % of Room Revenues 6% 6% 6% 6% 6%

Value € 62.253,88 € 73.590,90 € 85.875,60 € 99.455,55 € 107.982,99

VARIOUS COSTS for BAR % of Bar Revenue (see table specifications) 33,2% 33,5% 33,9% 30,8% 30,7%

(food for breakfast, bar, banquets, minibar) Value € 97.501,54 € 106.121,25 € 115.606,57 € 124.925,71 € 134.547,36

ADMINISTRATION COSTS Value € 30.000,00 € 30.000,00 € 30.000,00 € 30.000,00 € 30.000,00

Per Room € 252,10 € 252,10 € 252,10 € 252,10 € 252,10

COMMERCIAL COSTS Value € 177.158,54 € 143.046,91 € 159.221,57 € 178.269,79 € 189.882,64

Per Room € 1.488,73 € 1.202,07 € 1.338,00 € 1.498,07 € 1.595,65

Best Western Fees € 30.089,38 € 35.568,94 € 41.506,54 € 48.070,18 € 52.191,78

OLTA fees (on revenues from rooms booked through OLTA) € 55.161,16 € 64.648,97 € 74.886,04 € 87.370,60 € 94.861,86

MAINTENANCE COSTS Value € 30.000,00 € 32.000,00 € 35.000,00 € 37.000,00 € 37.000,00

Per Room € 252,10 € 268,91 € 294,12 € 310,92 € 310,92

ENERGY COST Value € 100.000,00 € 100.000,00 € 100.000,00 € 100.000,00 € 100.000,00

Per Sold Room 5,08 4,67 4,32 3,95 3,64

VARIOUS COSTS % of Revenues 3% 3% 3% 3% 3%

Value € 44.987,79 € 51.769,09 € 58.892,44 € 68.916,19 € 74.680,85

PRE-OPENING COSTS Value 0,00 0,00 0,00 0,00 0,00

TOTAL OPERATING COSTS Value € 1.139.153,23 € 1.164.543,72 € 1.242.800,98 € 1.367.558,61 € 1.433.436,81

% Total Revenues 73,4% 65,2% 61,2% 57,5% 55,7%

GROSS OPERATING PROFIT Value € 412.149,97 € 620.597,49 € 787.972,78 € 1.008.861,81 € 1.141.764,98

% Total Revenues 26,6% 34,8% 38,8% 42,5% 44,3%

7.B Economic Analysis

GOP Value € 412.150 € 620.597 € 787.973 € 1.008.862 € 1.141.765

% Total Revenues 28,1% 36,1% 40,0% 44,5% 46,2%

Forecasted Investment € 10.000.000 € 10.000.000 € 10.000.000 € 10.000.001 € 10.000.002

Direct management

ROI 4,1% 6,2% 7,9% 10,1% 11,4%good/average

1. Direct mangement? 2. Lease contract? 3. Management contract?


Lease contract 60% of GOP 60,0% 60,0% 60,0% 60,0% 60,0%

€ 247.290 € 372.358 € 472.784 € 605.317 € 685.059

ROI 2,5% 3,7% 4,7% 6,1% 6,9%

% of revenues 15,9% 20,9% 23,3% 25,5% 26,6% too much!!

20,0% 20,0% 20,0% 20,0% 20,0%

€ 277.675 € 321.612 € 368.308 € 431.033 € 467.493not enought !!

Management contract Management fee 10% 10% 10% 10% 10%

€ 155.130 € 178.514 € 203.077 € 237.642 € 257.520

New GOP € 257.020 € 442.083 € 584.895 € 771.220 € 884.245

New ROI 2,6% 4,4% 5,8% 7,7% 8,8%good/average

Product:

- 4 floor hotel

- 119 rooms

- 2 congress rooms

- Basic and extra services

- MICE facilities

Placement:

- South part of the province of Milan

- Mid scale market

- Focused on people who travel for work,

families and couples



Price:

- High season best rate : 85€

- Low season best rate : 75 €

- Discounts for fully prepaid advanced

booking

- Charges based on variations and extra

services

Promotion:

- Billboards and branded merchandise

- Press conference, social networks and

newsletters

- Partnerships with OLTA, packages for niche

markets

- Reward program and CRM

Marketing MIX


Our Hotel will use a professional photographer and design firm to produce

the following materials:


http://venice.arounder.com

/it/hotel-4-stelle/best-

western-hotel-la-di-

moret/suite-1.html


Thank you for your attention

41

Find your home on your way home:

stay at Best Western Carpiano!

multifunctional center in carpiano 14th july presentation

Real Estate

tourism management

tourism trends tourism

tourism demand

business tourism segments6

business hotel

business man

italy business travellers

akno business parksfounded