The Bliss

Executive SummaryOur goals and objectives are to ensure that we run a professional, profitable and ethical business, building relationships with customers, suppliers and investors. Some of our main objectives are to focus on providing complete satisfaction to clients in terms of facilities and service standards, food and beverage and related products, at a fair price, to ensure a safe, secure and healthy environment for our guests, employees, local community and nature, to develop the brand in unique and exclusive destinations by utilizing the natural resources available and the latest innovations, to form strong alliances with exclusive organizations and prestigious brands by ensuring a long-term profitability. Our mission is to be the preeminent global hospitality company - the first choice of guests, team members, and owners alike. Some success factors of our hotel business are location and opportunity, technology, well defined and consistent strategy, short and rapid decision making plans, hospitality mindset, corporate culture, expertise and network, strategic alliance and connection with customers.Company SummaryCompany OwnershipThe Bliss is formed by the partnership among Anika Naz Choudhury, Mahabub Khan, Kazi Samina Afroz, Md.Imtiaz Hossain Imti and Hia Nawshad.Start-up SummaryStart-up Expenses

Expenses Tk. in 000

Raw Materials 71,500

Stores and Spares0

Wages & Salary

Depreciation 8,700

35,000

Rent, Tax, Power-fuel85,700

Repair & maintenance3,300

Advertising , Insurance

Admin. Expense

Others 12,011

61,100

21,989

Total start-up expenses2,99,300

Start-up Assets

Assets Tk. in 000

Friends and family (cash asset)5,000

Long-term assets6,24,000

Other current assets10,000

Total assets6,39,000

Total requirements 9,38,300

Company Location and FacilitiesLocationJubilee Road (near to the Shah Amanat International Airport), Chittagong, Bangladesh.

Location facilitiesThe Bliss is located near to the Shah Amanat International Airport on jubilee road which is the heart of the Chittagong city. So the hotel is easily accessible from the city airport by walking (about 15-20 min journey times) or by a taxi (5-10 min).

Services

Service descriptionOur products and services include:

Transportation (from the airport to the hotel)

Free car parking

Conference and Banquet facility

Luggage room

24 hours restaurant

24 hours room service

Information Centre 24 hours

Laundry and dry cleaning

Complementary welcome drinks on arrival

24 hours fitness facility

Spa and massage treatment

Mini Bar

Indoor games room

Swimming pool

Jacuzzi

High security system

Central water heating system

Central air conditioning system

Portable fire extinguisher

Cash machine (ATM)

Handicraft shop

Departmental store

Capsule lift

Currency exchange center

Locker facility

Complementary newspaper

Tour guide

Car rental service

Salon

The Bliss Kids Club

150 inch Big Screen TV Projection Kit

Prayer room

Doctor on call

In room facilities: In room safe

Intercom service

Refrigerator

Plasma television

Micro oven

Bathroom telephoneCompetitive Comparison According to the current data, there is no Five Star Hotel in Chittagong. Rather there are only a few numbers of Four Star Hotels available for the elite people. A short description of these hotels is like the following:

1. Peninsula Hotel, Chittagong-is regarded as one of the best business hotels in Chittagong, Bangladesh. This four star hotel is recently constructed and is facilitated with all the modern and technologically advanced amenities.

2. Agrabad Hotel, Chittagong- is a business oriented 7 - story building offering accommodation that suits the requirement of both the Business and Leisure travelers alike. The warmth and hospitality offered by the staffs will surely make your stay enjoyable and efficient.

3. Hotel Tower Inn International Ltd, Chittagong- is spectacularly designed and added with traditional hospitality of courteous, attractive and personalized service.The first and foremost significant advantage for The Bliss hotel is its location. Being located near to the Shah Amanat International Airport, The Bliss is uniquely positioned in the center of the Chittagong city.

The second competitive edge of The Bliss is the service; one of the major and notable plus points for the hotel. We will provide our level best services to our customers before they emerge, which will help us to get a jump on the competition by creating a link in customers` minds between a need and the fulfillment of the need through our services.

The third competitive superiority of our hotel is the well security system. It will help our respectable customers feeling safe and peace.

The Bliss has a highly qualified, experienced and well-skilled management team which is another competitive benefit for our hotel.Technology Metal detector

Access control system

Indoor Omni ceiling antenna

Wi-Fi

Office alarm system

CCTV

Out CCTV

Future products and services 3D experience in Cineplex Tennis court Limousine car service Catering service Water park Mvenpick Ice Cream parlorMarket Analysis SummaryMarket SegmentationMarket Segmentation allows us to target and market to a variety of customer groups with different behavior with an offer that matches their needs and budget level. Our hotel mainly aims at the demographic segment of the economy.

Target Market Segment StrategyA target market is identified once a company evaluates all possible market segments and determines which would be the most appropriate, and therefore profitable.

Our primary targets are professionals from various industries to this area

Local firms will be targeted for day use of conference facilities, room nights for visiting executives and long stay professional guests.

We have segmented our target market into three categories: commercial, group meeting, and leisure.

The Commercial Segment: The commercial segment consists of individuals who travel to a market to conduct business. The length of stay for commercial guests ranges from one to three days. Commercial demands remain constant throughout the year although it may decline slightly in the holiday period. An influence on commercial lodging demand is economic and demographic trends; changes in FIRE (financial, insurance, and real estate), service, wholesale trade, and total employment; occupied office space; and air passenger counts provide the most direct correlations.

The Group Meeting Segment: Corporate groups and those described as SMERFE (social, military, ethnic, religious, fraternal, and educational) make up the bulk of meeting and group demand, which consists of seminars, training, conventions, trade association shows, and similar gatherings of ten or more people. Occupancy of this group is relatively high during winter. This group usually looks for hotels with extensive meeting space, business technology, food and beverage outlets, and the miscellaneous components required to host meetings and banquets. Corporate groups can boost a hotels profit in two ways. First, during times of national economic prosperity, corporate accounts tend to exhibit limited price sensitivity and book in large blocks, leading to higher margins. Second, corporate groups often sponsor banquets and other events that generate revenue for the host hotel.

The Leisure Segment: Unlike the weekday prominence of commercial and meeting and group demand, the leisure market segment tends to fill rooms on Thursday and Friday nights. Leisure travelers also book weekday stays during holiday periods, when commercial demand is traditionally low.

The market segmentation will help us identify the trends of our business:

Total Revenue per room, Total Revenue per client

Day of Weeks stays

Length of Stay

Cancellation %Market NeedsSince our hotel mainly aims at local and international business traveler and corporate clients, we fulfill their market needs by providing banquet hall, reliable high standard services, pre-booking facilities, last minute booking, availability of large number of rooms (this is mainly convenient for the group segment as they tend to book room in large numbers), and any other requirements with full satisfaction.

Market TrendsStudying market trends will help us identify opportunities and threats that may affect our profitability. Relevant trends include the growth in demand for overnight accommodations, changes in travelers lodging needs, and new, innovative properties that are opening in the country. As Bangladesh is a fast growing economy, rising number of local and multinational companies are emerging. Customers from such companies towards which we have set out target market, have high buying power and they are less price sensitive and expect high quality service.Market Growth

Source: Bangladesh Economic Review 2010

Market AnalysisAs per information collected from Bangladesh Development Bank Limited (BDBL), the Commercial segment constitutes 60%, Meeting segment 10% and the leisure segment 30%.The summarized information are presented in the following table:-

Tk. in CrPotential CustomersGrowth %20122013201420152016

The Commercial Segment5.25%36.6538.5740.5942.7244.83

The Meeting Segment5.34%6.116.436.777.137.51

The Leisure Segment11%18.3220.3322.5725.0527.80

Total21.6%61.0865.3069.9374.9080.14

It is also gathered that out of the total demand for Five Star hotel market share for Dhaka is 50% and that of Chittagong city is 35%.

Main CompetitorsAlthough Chittagong lacks proper 5 star hotels, our competitors include:

1) Peninsula Hotel

2) Agrabad Hotel

3) Tower Inn International Ltd.Strategy and Implementation SummaryOur business plan`s Strategy and Implementation Summary emphasizes what makes our business concept compelling and how we will attract and maintain a client/customer base.

Firstly, our strategic position informs an investor that it will always be focused for the purpose of our business plan.

Secondly, our Strategy and Implementation Summary will always focus on being the absolute best at what it does within its target market.

Thirdly, the plan would emphasize building a long-lasting relationship with customers and even having them become dependent on the company for its specific services.

Finally, this summary says that our company will always keep the promises that it has made, by performing at that level of service

We ensure that our Strategy and Implementation Summary's claims are valid and it is a critical element of our business plan.

Marketing StrategyAs a service organization it is important that marketing strategies be deployed to improve its own ability to compete with other hotels, gain a competitive advantage and thus retain a greater number of customers.

First and foremost strategy is to obtain customers through offering high quality service of a five star hotel.

To create and sustain value for guests that competitors find difficult to imitate.

Manage guests demand for products and services in an attempt to change demand (for example, charging higher room rates in peak periods, offering special discount in periods of low demand and using a reservations system.

In a situation of under-demand, or oversupply, we might offer different and alternative services, including complimentary and convenience services (such as meals included in room rates, or valet parking). We could increase advertising, offer discounts or lower prices, or follow segments whose demands change according to season. We could also initiate marketing programs targeted at particular segments, or use idle employees as walking advertisements, or market services under exchange agreements.

Manage the hotels ability to supply products and services in response to guest demand (for example, turning double rooms into family rooms and hiring extra staff during periods of high demand.

During periods of high demand we intend to hire temporary staff and equipment, add temporary facilities, or use equipment and staff only where most urgently needed. We also intend to increase the number of staff, let staff work longer hours (overtime), or multi-skill staff to enable them to perform a wider variety of tasks.

While building our social media team, we intend to include person from every department: management, marketing, product development, customer service, etc. Employees can take brand message, localize it, and put their personality behind it. For branding, we an attractive logo of our hotel.

Sales Forecast TK in CRRoom Rent36.7340.0643.41

Restaurant23.7625.9228.08

Fax & phone 0.59 0.66 0.70

Total Sales61.0866.6472.19

Raw Materials7.157.808.45

Wages & Salaries0.870.961.06

Depreciation3.503.152.83

Others12.314.0815.81

Subtotal Direct Cost of Sales23.8225.9928.15

Pricing StrategyIn service industry, especially in the commercial sections of the hotel industry, it is necessary to be more market orientated. Therefore, in this industry, price itself is a market driven factor and it will affect future demand and eventually price can be used as a promotional aid for enticing new customers into the market or attracting them away from competitor. Minimum prices or value for money can be used as a sales image of the services if suitable. As has been previously indicated, price, especially in areas where quality is difficult for consumers to assess in advance of purchase, is often regarded as an indicator for quality. In this circumstance, prestige or high-price policies may be more successful than value for money. If price is seen as an indicator of quality expected, it is essential to fulfill the expectations of the customer, especially to provide excellent services. The Bliss is actually in the category of luxury class, where services have traditionally been distinguishing, like famous features of the hotel. Customers with high income are attracted by the comfort and status of such establishment so price must be used to reinforce this image rather than as a competitive device.

A smart pricing strategy is the best way to increase revenue. So we have tried our level best to set the price in a way that will attract our potential customers, and in the same time it will also increase the revenue.

ItemUnitQuantityService Charge in Tk.

(per day)

Regular RoomNos.10012,000

Deluxe RoomNos.7515,500

Super Deluxe RoomNos.5017,500

Royal SuiteNos.1525,000

President SuiteNos.860,000

RestaurantPerson daily3004,000

Fax & PhonePerson daily300100

Promotional StrategyWe create promotions according to consumer needs across all platforms-from hotel marketing on the web to traditional hotel advertising outlets.

The hotel avails customer attraction due to its location near the airport which saves time for travel and gives customers best facilities. Since Chittagong is the port city, the second most commercially active city our special focus is on business travellers and guests. We intend to reach them through the following ways.

Promotions in business publications, advertisements in chambers of commerce (example: MCCI, International chambers of commerce, BGCCI, BGMEA.

Promotion on Web: The hotels web page consists all relevant informations and online booking service. We also focus on social networking websites to target identified market segments.

Promote through travel websites- through which many international customers are attracted, price comparison websites- which distinguish hotels through price ranging and regional international tourist websites. We make sure of strong web presence hence the hotels web page includes vital information about our hotel along with images and links to local attractions and events. Web address of the hotel is included on business cards and in current advertising. Sponsorship focusing on corporate trade fairs. Example: Garments expo, paper seminar or jute seminar where international companies look for local sellers.

One of the more effective ways to advertise hotels discounted rate specials is through travel agents and travel clubs. This can be a particularly effective promotion.

Promotion through outlets in Dhaka and Chittagong airport which provide hotels information, allows bookings and arranges for transport attracts many customers.

Sales StrategyBusiness guests are fewer prices sensitive hence there is greater focus on quality of service.

Membership: The hotel offers special discounts, reduced rate for facilities, priority booking, and use of lounge in Chittagong airport. Usage over a year, customers can avail special platinum membership which includes more discounts and extra/free facilities.

Free amenities: These amenities can include a free continental breakfast or breakfast buffet to each guest, a free newspaper left at each guest's door and even a concierge service that helps guests get their dry cleaning done and find over-the-counter medication.

Offer discounts on bed and breakfast or offer free room upgrades to guests enrolling in the programs or once they reach a certain number of visits.

Work with the various airlines to include hotel at a discounted rate when the traveler books a flight with that airline. Offer larger-scale discounts to conventions that use those particular airlines as well.

Special discounts will be given to the first five families booking at the hotel.

Strategic AllianceStrategic alliances with-

Partner hotels- this allows customers to enjoy discounts and free facilities at the hotel and also at alliance hotels.

Credit cards companies such as American express (Amex) customers booking or paying through credit cards of this bank will be benefitted with discounts.

Airlines Company such as Regent and Bangkok airways- special discounted rates will be given to customers travelling through these airline companies.

Management SummaryThe management summary of our business plan will mainly discuss about the organizational structure, management team and personnel plan of the hotel. It reflects the process of guiding our employees and evaluating their performance through a well skilled management team. Organizational Structure

In our organizational structure, we have included all our heads of departments and employees working under them. This chart shows a complete scenario of the chain of command of The Bliss. This chart is shown in the appendix of the report.

Management Team

Though our management team is divided into five categories, every department is interrelated with each other. Finance Department: In order to set and approve all financial budgets for staff planning, provision of new equipment and the main establishment supplies Anika Naz Choudhury and Mahabub Khan are in charge of finance department. Sales and Marketing Department: Kazi Samina Afroz and Md.Imtiaz Hossain Imti, from the sales and marketing department are responsible for promoting the name of the hotel and services and to generate business. Human Resource Department: Hia Nawshad and Mahabub Khan are the head of the human department. Housekeeping Department: Anika Naz Choudhury and Kazi Samina Afroz are in charge of housekeeping department. Food and Liquor Department: As the manager of the food and liquor department, Md. Imtiaz Hossain and Hia Nawshad are responsible for running all the hotel`s food and liquor outlets such as the caf, coffee shops, restaurant, bars and fine dining room.Personnel Plan

Tk. in absolute FigurePersonnel Person Year 1Year 2Year 3

Chief / Staff accountant512,96,00019,00,00020,90,880

Payroll Supervisor 47,68,0008,44,0009,29,280

Credit manager35,76,0006,33,6002,61,360

Reservation Manager27,68,0008,44,8009,29,280

Director of sales19,28,00010,21,00011,22,880

Sales manager54,80,0005,28,0005,80,800

Catering sales manager35,76,0006,33,6006,96,960

Employee management35,76,0006,33,0006,96,960

Liability Claims manager35,76,0006,33,0006,96,960

Property maintenance manager25,76,0006,33,0006,96,960

Garage manager11,92,0002,11,2002,32,320

Health Spa manager36,91,2007,60,3208,36,352

Caf manager23,84,0004,22,4004,64,640

Room service manager510,11,20010,00,32011,00,352

Executive Chef315,36,00016,89,60018,58,560

Beverage Manager34,80,0005,28,0005,80,800

Purchasing Agent65,21,60010,13,76011,15,136

Security manager35,76,0006,33,6006,96,960

Building Superintendent 25,76,0006,33,6006,96,960

Total Payroll1,39,20,0001,52,00,0001,67,20,000

Financial Plan

Project CostThe total cost of the project has been estimated at Tk. 65.97 cr. including a net working capital 45 lakh. The total working capital requirement has been assessed at Tk. 1.45 cr. The summarized project cost is presented below:

Items

Taka in CR

Land 1.50

Building 28.80

Furniture & Fixture 14.45

Vehicle / Transport 5.00

Consultant Fee0.50

Pre-operating Expenses1.65

Cost of installation0.50

Machinery & equipment 10.00

Total Fixed Cost 62.40

Net working capital 0.45

Cost escalation3.12

Total Cost of the Project65.97

Means of FinanceThe aforesaid cost is proposed to be financed as under:

a) Bank loan (BDBL):

Long term Loan39.58

b) Equity:

Sponsors equity: (Owners will arrange fund in equal proportion)28.69

Total Loan & equity (a+b):68.27

Start-up FundingTable: Profit and Loss Tk.in Cr.Year 1Year 2Year 3

Sales97.96106.87115.77

Direct Cost of Sales38.1341.5845.04

Other Cost of Sales 6.7810.6611.55

Gross Margin66.6175.9582.28

Expenses

Raw Materials11.4412.4813.52

Stores and Spares 0.80.96

Depreciation5.605.044.53

Rent 0 0 0

Utilities13.7114.9616.21

Insurance6.215.604.99

Payroll Taxes0.870.96 1.06

Other9.5410.4011.26

Total Operating Expenses47.3750.2452.53

Profit Before Interest and Taxes66.6175.9582.28

Interest Expense 4.06 3.66 3.26

Net Profit Before Tax62.5572.2979.02

Taxes Incurred (40%)25.0228.9131.61

Net Profit37.5343.3847.41

Net Profit/Sales38%41%41%

Break Even Point: 49% of Capacity utilization (1st year of operation)Table: Pro forma balance sheet

Tk.in Cr.AssetsYear 1

Non-cash Assets from Start-up62.40

Cash Requirements from Start-up 0.40

Additional Cash Raised 3.12

Cash Balance on Starting Date 2.00

Total Assets67.92

Liabilities and Capital Liabilities

Current Borrowing 1.00

Long-term Liabilities39.58

Accounts Payable (Outstanding Bills) .10

Other Current Liabilities (interest-free) 0

Total Liabilities40.68

Capital

Planned Investment

Owner25.69

Investor 0

Additional Investment Requirement (owner) 1.55

Total Planned Investment27.24

Total Capital27.24

Total Capital and Liabilities67.92

Sales/Service Estimate1st year2nd year3rd year

178.11178.11178.11

556065

97.96106.87115.77

Item:

Revenue at full capacity

Capacity utilization (%)

Total sales/service revenue

Assumption:1. Operation Time: 24 hrs. per day and 360 working days in a year

2. Sales/Service Revenue ItemUnitQuantityService Charge in Tk.(per day)Total Tk.(per day)

Regular RoomNos.10012,00012,00,000

Deluxe RoomNos.7515,50011,62,500

Super Deluxe RoomNos.5017,5008,75,000

Royal SuiteNos.1525,0003,75,000

President SuiteNos.860,0004,80,000

RestaurantPerson daily3004,00012,00,000

Fax & PhonePerson daily30010030000

Total49,47,500

Total in 360 working days178,11,00,000

ConclusionA business plan is not just a lengthy document that helps to obtain financing. It's truly a thorough examination of whether the business idea is workable. Preparing a business plan in the early stages of developing the business can save a great deal of time, money and distress by showing where the weaknesses in the idea lie and giving a chance to correct them before making any serious mistake.

For example, in the process of putting together our hotel business plan, we have discovered that we haven't really thought enough about our marketing budget or we haven't done enough research on government regulations that will affect our business. In putting together our plan, we are being forced to examine the business from the viewpoint of the skeptical potential investor and the skeptical potential consumer, not just from the perspective of the enthusiastic entrepreneur.

There's no question that putting together a good business plan takes a tremendous amount of work. But, we have tried our level best to make our business plan a perfect one, so that it may reflect our hotel The Bliss to our customers and clients. We hopefully believe that our services will fulfill customers needs and demands and it will help us to compete in the business world by being their first choice in the hotel industries.10 | Page

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7.55

7.58

7.62

Growth Rate

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Year200520062007200820092010

Growth Rate7.127.457.527.557.587.62

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Growth Rate

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