1. Business Case Presentation
Opening a New Luxury Boutique Hotel
By XXXX May 2017
Hi welcome all today I would be giving a presentation for the business case of opening a new luxury boutique hotel as mentioned in the upcoming slide.

2. Contents Project scope, aims and objectives Stakeholder Analysis
Project Tasks and Phases
Key Performance Indicators
Project Risks and Mitigation Strategies
Summary – why fund this project?
These Slide will cover the things as given in the current slide.

3. Definition of Project Scope (deliverables)
Launch a new luxury boutique hotel of 25 – 40 rooms
Must fit within the brand and ethos of the hotel group
Acquire premises within reasonably close proximity of the capital
Full refurbishment and fit-out
Capacity forecasting and planning – min. 75% occupancy year round
Recruit and train employees
Launch the hotel
Our Project involves launching new luxury boutique hotel of rooms which fits in with the brand and the ethics of the hotel group. Main aim is to acquire premises with the reasonably close proximity of capital with all repaired and bought to use situation things in order to reduce the cost. The occupancy rate in the hotel is estimated to be 75% minimum for the year round. We at the same time will recruit and train employees this will be discussed everything in the detail in the slides to come. Finally, after achieving the things we will finally launch the product.

4. Project Aims and Objectives
Identify, acquire, refit and launch a new luxury boutique hotel
Project Objectives
Achieve project within budget and time constraints
Ensure project meets quality and brand expectations
Create and implement a robust plan for occupancy
Our aim is to launch a project which told as earlier is best in the class and is fit with a brand and ethos. Our objective is to achieve projects with the budget and time constraints and they also meet our quality and brand expectations. As boutique hotels promises to deliver the best quality hotels with economical packages. After, getting hold if the market in the short run we expect to be the leading brand in boutique hotel with complete customer satisfaction with the aim of increasing our brand name.

5. Stakeholder Analysis HOTEL GROUP OWNERS GUESTS
Clear mandate and project objectives
Must provide something superior to local competition
Consideration of CSR issues – e.g. environmental initiatives
Expectations of service and quality
Need to advertise / incentivise (not discount – poor strategy for luxury brands)
SUPPLIERS
LOCAL AUTHORITIES IN NEW LOCATION
Need to secure supplier agreements
Ensure availability of contractors for work – negotiate contracts (e.g. retention for defects to ensure quality)
Architectural works
Interior design and décor (inc. gardens / car park)
Major refurbishment projects require support from local authorities
Planning permission and permits (e.g. scaffolding on public highways)
Potential disruption to neighbouring businesses
Compliance with Building Regulations / HSE must be informed
Compliance with latest legislation for electrical works, fire safety
As you can see in the slide different stakeholders have different needs, so we need to ensure that each stakeholder is satisfied. Although guests come into picture when construction of the hotel is completed. You need to satisfy each one of these stakeholders in order to get these authorities, suppliers & hotel owners the best in the market services and returns. Authorities need to understand that whatever their business is happening it will create jobs for the population and it will be a ethical organization abiding by all rules and regulations.

6. Project Tasks 1: Planning and Preparation
Project Planning
Scope
Schedule
Resources
Budget / cost
Risk
Quality
Project planning will include all the elements involved as given in the slide.
Scope: We will set the scope for the project as size, potential for conversion or updating as necessary, additional land for car parking, access to the property, its prominence as a location and whether it is easy to see from the road, and also any constraints which may become apparent.
Schedule: We will see the schedule for the project, to give a brief it would be in this manner-
a.) Project launch
b.) Monitor the project
c.) Project cost and constraints
d.) Risk & its mitigation
e.) Quality level
3. Resources:
a.) Land
b.) Finances
4.) Budget: It needs to be decided based upon the purchase cost of the land, then also we need to know how much will be the construction cost for the project and what will be the daily operational expenses required to run the project.
5.) Risk: this will vary upon the project but there will be mainly two risk –
a.) Operational Risk: Risk in running the project such as unknowns in the projects which includes meeting the deadlines, unanticipated delays, securing good suppliers.
b.) Non-operational Risk: Risk such as destruction of property by fire, floods & earthquakes. Unnecessary risk may arise if government authorities seizes the land.
6.) Quality: Even though budget/cost need not to be exceeded you need to take care of the quality standards which we need to maintain in order to give our guest the best in class experience. You should keep in mind that there is always a scope for improvement and benchmark needs to be maintained as well.

7. Project Tasks 2: Project Launch / Implementation
This is the Gantt chart we have made for the project which will involve the schedule for the services or the project which we need to ensure in order to deliver that project is executed in a timely and efficient manner. We expect everything to be completed within 11 months from the start of the project. These are the task we need to ensure that will make our hotel in the running conditions and the hotel will be in the upkeep conditions.

8. Project Tasks 3: Monitoring Project
Results based on Monitoring and Evaluation
Survey and feedback
Project monitoring and evaluation
Project initiation and adjustment
Project initiation and adjustment will involve activities as planned earlier at the same time we need to ensure that monitoring of the project and evaluation is also done this can be done using the survey and feedback from the customer, staff and identify improvement areas for the organization as well.
Strategy for smooth running of the project will require us to identify four spheres which are the most important aspects are financials, customer, learning and growth & Business processes.
Financials:
We need to ensure that maximum revenue is generated and minimum cost is incurred so that operating efficiency is achieved and enterprise financial health is improved and the same comes at the optimum level.
Customer:
We need to give our customer the best in class services, so that we may become competent in comparison with other similar hotels and our brand name is more in value and we come as good business partner for self and others.
Learning & Growth:
We need to provide our personnel the best training in order to increase the employee productivity and align their goals with the organization to get the best from them. This can be done by hiring the best technical talent which can train our employees and make them the best in class human resource of the company.
Business processes:
In order to improve the business process we need to develop the new products understand the customer segments and their needs. We need to reduce the cycle time for the operations and also provide for the rapid response in order to understand that if any problems which is controllable and how same can be resolved.

9. Project Tasks 4: Project Completion and Close-out – The end result
As you can see in the slide our project after completion for the rooms looks something like this.
Intercontinental, Cannes (2016)

10. Key Performance Indicators
Adherence to key project milestones
Budget constraints (+/- 20% on any refurb project – there will be unknowns)
Staged payments on reaching milestones
Quality monitoring
Reflect on lessons learned (monitoring and evaluation)
KPI:
We need to adhere to milestones for the project so that same is achieved in timely and in a proficient manner.
We also need to make sure that the project budget constraints may go up or down by 20% so we will need to make sure that provisions for the same needs to be ensured.
Staged payments will ensure that the project achieves the milestones as well as further work is also taken up by the personnel at large.
At every stage of the project we need to monitor the quality standards as set by us using benchmarking, ABC analysis and other measures as we may deem fit from time to time.

11. Project Risks
Unknowns in projects – even well-maintained old buildings will have issues – most likely risk overspend and over-runs
Unanticipated delays – e.g. contractor issues
Meeting launch deadline – soft launch may reduce risk
Securing good supplier contracts
Recruiting high quality staff
Meeting occupancy targets
Project risks:
Unknown things in the project are defined as uncertainty which may be good or bad. Bad uncertainty leads to what we call a risk. Risks in the project can be reduced but they can never be eliminated.
Risk includes:
Unknown factors in the project which are even well maintained are likely to overspend and there may be over-runs.
Unanticipated delays which may arise a result of contractors issues which can be no labor availability with the contractor or there is delay in work completion.
We may feel to meet the launch deadline as a result a day or three days later may leave us with the bad reputation and unnecessary in our expenses and cost. So, we need to make sure such things are avoided.
We need to secure good supplier contracts so that business contracts are available to us and there is no burden on the company to handle supplier which may cause delay in delivering the goods to us and resulting in good operational loss to the company.
We should recruit staff which can train our new employees and has the best potential in order the deliver the best of services to our company in order to increase our company productivity.
Occupancy target can be achieved by promoting our room vacancy online or using offline mode such as newspaper/notice. Offering discount and increasing the facility may also increase the occupancy targets as well.

12. Risk Mitigation Strategies
Secure a good professional team of advisors from the outset and ensure they work together
Legal and finance team (due diligence on property, sensible financing structure for staged payments)
Experienced architect (do not let them go on a flight of fancy)
Lead contractor (check / visit previous work undertaken by them)
Good quantity surveyor – accurate / realistic costing
Thorough due diligence / structural survey of the property before acquisition
Planning and preparation
Get 3 x quotes
Be clear and precise in the project brief from the outset – reduces overall cost and iterations each of which cost money and add delays
Monitor project closely but do not interfere
In order to mitigate risk involved we need to make sure that the project is secured by the team of good professional team of advisors which will work together and task as mentioned in the slide can be achieved. You need to make a reference check of the previous project so that it can be verified if quality standards as required by us can be met or not.
You have to plan further in order to get 3X quotes and be clear and precise in the project brief from the outset, so that you are able to reduce the overall cost and iterations which may cost us some money and add delay in our work.
We should monitor the work closely but we should not nag or interfere with the project proceeding which may cause some problems in the project.

13. Summary – Why Fund this Project?
Boutique hotels are profitable when properly run and managed
Capacity to demonstrate previous experience of similar projects with experienced contractors
Demand for boutique hotels
Need to be well-decorated and attractive
Preferably in an unusual location/building as a further attraction – e.g. Hotel Du Vin business model
We have boutique hotels which are more profitable in comparison to the other hotel chains if they are properly managed by the support staff and operations staff. We have demonstrated previous years of experience in the hotel industry line so needless to say that any demand of customer can be left unattended by us.
We see that boutique hotels are in vogue and are in much demand in comparison to other hotels. We will keep our hotel the most decorative and attractive in order to keep ourselves distinct from the similar chain operating in the industry.
Our location for the hotel will be the prime location. So, there will be no shortage of customers. Building will also be near to the tourist station in order to attract most tourist coming in the city.

14. Bibliography
Atkinson, R., Crawford, L., and Ward, S., (2006) Fundamental uncertainties in projects and the scope of project management. International Journal of Project Management, 24(8),
Intercontinental (2016) Cannes [online] available at luxury-boutique-hotels-cannes retrieved 12th May 2017.
Kaplan, R. S., and Norton, D. P., (1996) The balanced scorecard: translating strategy into action. Harvard: Harvard Business Press.
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