Hotel-Business-plan-report.docx

Chapter 1. ProjectIntroduction1.1 RationaleofConductingThisResearchTheinterestsofwritingthisresearcharosefromtheworkingexperienceina5-starhotelinShanghainamedTheSt.RegisShanghai.ItisaimedtobeeMarket1.eaderintheHotelIndustryinShanghai.After3years'operation,thehotelperfo11nanceCOlnParedtoitscompeiorswasnotsogoodasexpectedalthoughtherearccontinuousimprovementandadjustmentduringitsoperatingperiod.Moreover,withthematurityofmanyother5-starhotelsandIhenewinvestmentcomingin.ShanghaiHotelIndustryisfacingagreatoppo11unityaswellasabigchallenge.Therefore,theauthorinvestigatedmainlyonRlCIQrSCana5“arhoielwainCOmDeIedeOnIhe(汕er.Secondly,DraeliCeSOfIhiSholdbedsothatitcouldkeepandreinforce(hemasitsassets.Andfinally,g(xnlpracticescouldbesharedanddeficienciescouldbea)idedbyotherhotelswithiinikirjHickgnnindinothercitiesinChina.1.2 OverallIntroductionWithChinas3years'entryintotheWorldTradeOrganization(WTO)andthesuccessfulbidtor2()10ExpoinShanghai,manyin(e11ationalcompaniesarefocusingon(hisrapidlydevelopingmarket,bringingmoreandmorebusinessopportunitiestothevigorouscity-Shanghai.TinsalsoresultsintheincreasingdemandinaccommodationsandmeetingvenuesforallkindsofbusinesseventsasThroughasystemicanalysisTheSt.RcgisShanghai,thispaperinvestigated'whythishotelcannotleadthemarketandwhatare(hevitalelementstomakea5-siarhotelsucceedinthecompetitivehotelindustrj,inShanghai,.SuchmodelsasPESTanalysis,5ForcesAnalysis,ValueChainAnalysisandetc.wereUIiliZedtocomeupwiththeproblemsexperiencingbythishotelandrecommendationswerecarriedoutattheendtheresearch.1.3Objectives1. Tounderstandthemacrohotelindustrjfenvironmentaswellasthecompetitiveenvironmentofthe5-starhotelindustr>,.2. ToinvestigatethevaluechaininTheSt.RcgisShanghaiinthepurposeoffindingouttheproblemsexperiencedbythishotel.3. TosummarizeexternalthreatsandinternalweaknessesoftheSt.RcgisShanghai.4. ToidentifythecompetitorsofTheSt.RcgisShanghaiandanalyzethekeyvariablesothecompetitorsinordertorevealthegapsbetweenthem.5. ToproviderecommendationsforTheSt.RcgisShanghaiaswellasother5starhotels.1.4ProjectStructureFigury1.1.SUlICIUNCfIhCPrgjxiChapter 2. 1.iteratureReview2.1 IntroductionThischapterwasdividedintotwopartsfocusingonrelevantliteraturereview.Thefirstpartincludedreviewoftheliteraturerelatingtoheexistingmodelsanddefinitions.ThesecondpartcoveredthegeneralreviewofthehotelmarketinShanghai.2.2 DefinitionsandModelsInthispart,definitionsrelatedtohotelmarketwerereviewedtohaveabetterunderstandingofthehotelbusinewExistingmodelswillbeintr<xlucedtoprovidethefundamentalbasisforfurtheranalysis.2.2.1 HotelGroupsThehotelgroupsnormallyoperatehotelsownedbythemorleasedbythemfromtheirownerstowhomtheypayarental.Themanagementformsincludemanagementcontracts,whichprovideforthepaymentofexpenses,managementfeeand/orthesharingofprofitsaswellasfranchiseagreement,whichallowthefranchiseetosellaprtxlucidesigned,suppliedandcontrolledbythefranchisor,inreturnforateeorsharcofprofits.fMedlik,1994)Intermsofthescopeofthisresearch,itisimportanttoknowtheadvantagesanddisadvantagesofthehotelgroupsthatcanbringtothehotel.Advantagesareachievedthroughfinancialeconomies,marketingeconomics,economicsofbuying,managerialeconomies,technicaleconomiesandeconomiesofrisk-spreading.(Medlik,1994)Onthecontrar>'.thedisadvantagesarccommunication,control,costproblemsandqualityofgroupmanagement.(Medlik,1994)(seeAppendix3)IIowever,allthesedisadvantagesarenotConlnIononesonlyinhotelgroups.Withhedevelopmentoftechnology,theproblemsofcommunicationandcontrolcanbeavoidedifetTectivecommunicationsystemandcontrolsystemareestablished.Forinstance,theimportantdatacanbewrittenintomemorandumsorothertypesofdocumentsandthenbesenttoeverypropertyunderhesamegroupthrough(hehotelintranetsystem:conferencecallcancoverasmanypropertiesasitneedstoconveyalltheinformationtoeachcorneroftheworld;andalsopropertiescanbeeITectivelyn)itorcdandcontrolledbyeachfunctionalregions(Sales&Marketing.RevenueManagementetc.)orgeographicalregions(AsiaPacific,Europe,NorthAmericaec.).Insummary,theadvantagesofhotelgroupsarcoverwhelming.2.2.2 HotelAccommodationMarketInanycountrythedemandforaccomnuxlationawayfromhomeisgeneratedbyresidentstravelingintheirowncountrj'andbyforeignvisitors.Hoteluserswhoarcbuyersofovernightaccommodationmaybeclassifiedasholiday,businessandotherusers.(Medlik,1994)Differenttypeofbuyerscanaffectthelevelofbargainingpowerandexteriorlyaffectthepricing.Therefore,ohaveabetterunderstandingofalltypesofhoteluserscanprovideabasisforfurtheranalyzingthecompetitiveenvironment.2.2.3 TheHotelasaMarketConceptFromthePOinlofviewofitsusers,ahotelisaninstitutionofcommercialhospitality,whichoffersitsfacilitiesandscriccsforsale,individuallyorinvariouscombinations,andthisconceptismadeupofseveralelementsincludinglocation,facilities,service,imageandprice.(Medlik,1994)Figure2.1:ThCH"dasaMarkClConCCp<(Source:MedlikS.1994.4'BsinessofHotels,311,edn.ButterworthHeinemann.Oxford,pl5)