Introduction
The hotel industry in the UAE is doing much better as the demand for hotel services increases. Eelites Hotel is positioned to bring hotel services in the area of Dubai. The demand for hotel services has been decreasing over the recent past. Following increased trade services, the demand for hotel services have increased significantly hence creating good opportunities.
Eelites Hotel will provide a friendly and comfortable atmosphere where the customers can relax and receive quality and affordable food and other services. Since the hotel will focus to trap visitors from all over the world who will be visiting the area for business purposes, various kinds of food will be served.
The major funding will mainly be from owner’s contribution and loan from bank. Other investors and family members will also help in raising the required funds. All the information and data given in this plan are confidential and they are supplied under the assumption that it will be kept confidential and that it will not be revealed to third party without the author’s permission.
Executive Summary
The demand for quality hotel services has significantly increased. Eelites Hotel will bring quality and affordable services to the people living in Dubai. People living or residing in Dubai will have an opportunity to access entertainment and other services at affordable prices. Eelites will provide a favorable environment where customers can relax comfortably. The interior of the hotel will be designed in such a way that it provides a relaxed atmosphere. The organization will also carry out several promotion and marketing activities in order to sell the hotel’s products.
Industry Analysis
The hotel industry in UAE has revealed a significant growth over the past. This has been triggered by the growth in trade and tourism in the region. This has increased the size of the market.
Over past years, the hotel industry has been performing very well. As noted earlier, the demand for hotel services has increased significantly. As the trade in the UAE increases with time, this demand is expected to increase. Therefore, the demand for hotel services is expected to peak in the near future.
Despite of the increasing demand for hotel services in the UAE, there is as high level of competition. The main competitors in the industry are Fairmont Dubai, Al Maha Desert Resort and Spa, Burj Al Arab and Abu Dhabi (Boermeester 2010). These are some of the hotels that are expected to compete with Eelites Hotel in Dubai.
Eelites hotel is targeting the middle income families living within the area. The hotel also expects customers who will be visiting Dubai from other parts of the world for business purposes. The market share for the Eelites Hotel is expected to be residing within the radius of four miles. This radius is used to calculate the market share. According to the national statistics, people rarely travel for more than three miles to take food. Approximately 150,000 people lives within the region.
Description of Venture
The hotel will provide a wide variety of foods and drinks. This will include snacks and all other types of local and international dishes. However, customers will be required to make orders online in advance for international dishes. Coffee and tea of different kinds will be offered. The tea will include all varieties including the English flavors.
Eelites Hotel will also provide entertainment services. Different kinds of entertainment will be available so that people can choose according to their preferences. Comfortable places will also be available where people can relax and talk.
Eelites Hotel will be a medium hotel that will have a capacity of 1,000 customers. However, expansion will be done accordingly depending on the market size.
The members of staff include the General Manager, supervisor, cooks, hostess, Cashiers and the servers. These will be expected to have appropriate training and qualifications for respective positions. They will also be required to have at least two years experience.
The hotel is owned by Kapur. He has been a manager in a busy hotel for the last five years. In his position, Kapur has demonstrated strong decision making skills. According to Witzel (2004), successful managers must have decision making power. Therefore, Kapur brings into the organization a valuable talent.
Production Plan
The food and some of the drinks will be prepared within the hotel premises. The cooks will be expected to make the necessary dishes accordingly. For instance, they will check in the monitor for the ordered dishes and then prepare them with the help of the assistant cooks. The cooks and the assistant cooks will prepare vegetables and cut meat in the morning, which will be expected to be used that day.
The hotel will require several equipments that will be used in various tasks. Fridges will be needed that will be used to store vegetables. Equipments like gas cookers, ovens, and breaders. A generator will also be required.
The suppliers for the hotel have been in the field for a long period. They have a good reputation and are expected to provide optimal services for the organization.
Operational plan
The food will be prepared within the hotel premises. On visiting the hotel, the visitors will be directed by a hostess. Then the server presents the menu and serves accordingly. The cooks will be responsible for the preparation of all kinds of dishes in the required amount. Cleanliness is expected in all areas of the hotel. For the servers, they are expected to maintain neat appearance.
As already noted, the customers will be expected to make orders online. Then, the food will be prepared accordingly. The cooks will be required to have prepared the ordered dishes before the customers reach the hotel premises. This will promote consumer satisfaction. Customers are also able to make orders online. This process will help us to increase efficiency and minimize costs. The cashier register system will be Quix 3000 Touch screen. This will contain a built-in system software prints, hard or soft guest checks.
Marketing Plan
The prices of food will be moderate. It will be set in such a way that it does not differ significantly with the prices offered by other hotels in the area. The price will also be determined by the actual costs of the ingredients or the raw materials. However, the prices are expected be relatively lower.
The servers will distribute the product in the restaurant. Food will be cooked on site apart from the baked foods since it can stay for longer periods. On entering the hotel, the customers will be led and shown where to sit and then be provided with the menus. The server is expected to welcome them and then provide some water. Then the customers will be served accordingly.
Promotion will take place in several areas. Promotion is one of the marketing aspects that have a significant implication in a new business (Drucker and Drucker 1999). Ads will be distributed in various places that surround the hotel where we have potential customers. A 20% discount will be given to all those individuals who will reveal the identity of participating in any of these promotions.
Inventory accounting will be clearer in order to promote a smooth flow of activities. The cost of the goods will be calculated, both the goods in the shelf as well as the orders. This will help in comparing the average usage with the actual usage. This information will be important in making inventory decisions.
Organizational Plan
The form of ownership of the hotel will be sole proprietorship. The share holders will be allowed to join the business provided they agree and abide with the set regulations. However, the shares will be limited to a certain level. The management team will be composed of the Director, General Manager, and the departmental managers. All of them have been in the hotel industry where they have gained adequate experience. Experience level is one of the main factors that can be used to project the productivity of an employee (Daft and Marcic 2010). The director has a major role of directing and making critical decisions. The manager assisted by the assistant manager will be responsible for managing and ensuring that everything is going well.
Assessment of Risk
Although Eelites Hotel has several weaknesses, all of these are manageable. For instance, the hotel is new in the region. Therefore, the brand has not yet developed. The hotel also suffers from the fact that changing tastes and preferences may affect the performance of an organization.
Eelites will embrace the new technology in order to improve on its efficiency. For instance, customers will have the opportunity to make orders online. In every organization, there is a need to have measures that can help in handling any risk (Dale 1969). Eelites Hotel will overcome these risks through the insurance cover.
Financial Plan
In this financial plan, it is assumed that the investors will make rational decisions. It is also assumed that there will be no major risks that will be incurred in the course of the business that may have a significant impact to the cash flow.
Cash flow from the operations is estimated to be 19864.55 EAD in the first month. This is expected to increase by about 3,672.5 EAD after every month.
Armed with the accurate forecasts of the costs and sales, we shall be able to calculate the break even point. This will help in making critical decisions to promote the organization’s profitability (Abrams and Kleiner 2003).
The total amount of capital needed for Eelites Hotel is EAD 323,180. The owner’s contribution summed with the family member’s contribution is expected to be EAD 95,852.25. The loan needed will be EAD 128,537.5 for equipment, EAD 73,450 for operations and EAD 25,340.25 for remodeling.
Appendix
Reference List
Abrams, R. and Kleiner, E., 2003. The Successful Business Plans: Secrets & Strategies. Canada, The Planning Shop. Web.
Boermeester, S., 2010. Best of Dubai Vol 1. Dubai, Global Village Productions Ltd. Web.
Daft, R.L. and Marcic, D., 2010. Understanding Management. Mason, OH, Cengage Learning. Web.
Dale, E., 1969. Management: Theory and Practice. New York, Rex Bookstore, Inc., Web.
Drucker, P.F., and Drucker, P., 1999. Management: Tasks, Responsibilities, Practices. Woburn, MA, Taylor & Francis. Web.
Witzel, M., 2004. Management: The Basics. Canada, Routledge. Web.