AlpeAdria Development

OneBed Hotel “Business plan”

Koper, October 2014

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Index

1. Executive Summary pag. 3

2. Business idea pag. 4

3. Market Analysis pag. 8

4. Main Competitors pag. 12

5. Marketing plan pag. 13 6. Financial Analysis pag. 14

Author: Aleš Furlanič alpeadriadevelopment@gmail.com +386 40 857 551 Web References & Sources:

The Hermit Houses _www.wikihouse.cc www.hermithouses.nl www.woodprogram.fi/portfolios/liina-shelter/ _ www.blogs.aalto.fi/shelter/

_www.vivood.com _www.ideo.com _www.strategyzer.com/value-proposition-design

_www.2by4.nl/island-house-prefabrication/

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1. Executive summary

The time in which we live demands from us the greates possible degree of flexibility. It would be ideal if you could able to choose the right house at any time. In practice, the housing solution as much as we really need. OneBed Hotel is modular-prefab housing unit that allow us to do just that. It can be combined in smaller or large objects and are compatible with extension both vertical as the horizontal axis. Individual modules can be subsequently add or take away, to create a creatively layout. The main advantage of facilities build with modular units is their extreme flexibility, this mean that the product can always follow the needs and behavior of the user. Our wooden buildings offer a high quality of life with high standard in buildings material because all modular frame panels are prefab. OneBed Hotel can be used as private or public facility in the garden, nature, landscape environment retreat, city installation, a social facility, sport facility or separate office. OneBed Hotel offers countless opportunities with high aesthetics and functional value uses. Various systems or option can be easily added in prefab building process. LIVING HEDONISM is the motto for enjoy the life when retreat in OneBed Hotel.

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2. Business idea

2.1 Business Idea description

AlpeAdria Development has developed an innovative approach for easy assembly of modular-prefabricated dwelling unit fabricated in wood with creatively layout. OneBed Hotel is an innovative dwelling house – the solution for easy assemblation, transportation, the possibility for extension with modules and timber prefabrication allow positioning the OneBed Hotel product as future trend due to the fact of simple folding structure system and flexibility in creatively layout of modules frames – the OneBed Hotel ensure comfortable leisure time, anywhere.

Meanwhile my entrepreneur vision is to work together to define final design detail and timber joints to be able to do the first test unit (prototype) as a pilot project. As a young entrepreneur I would like to teach all skills and competences that are necessary for my further entrepreneur journey for organize production and selling the wooden product OneBed Hotel in Europe.

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2.2 Product Description

OneBed Hotel is a modular-prefab wooden dwelling that is easy to assemble with modular frames unit (also extensions are possible with simple folding structure) which are constructed with engineered wood material, simple to compose with creatively layout of dwelling. OneBed Hotel can represent residential unit as a holiday home for retreat or accommodation capacity in the tourism infrastructure.

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OneBed Hotel is made from wooden frames panel-unit that is easy to assemble – compose in a frame with simple folding structure. Each sandwich panel-unit (floor, wall, ceiling) are made from timber and plywood (Xlam, CLT, SIP…) as construction material. AlpeAdria Development has innovated the solution for assemblation of each sandwich panel-unit in a frame that compose a final shape-module. With easy assemblation and extensions of modules anyone can creatively do a layout for dwelling.

All wooden sandwich panel-unit for modules are prefabricated to ensure high production quality standard and cost effectiveness of product for customers.

2.3 Competitive Comparison The competitive advantage of OneBed Hotel as product concept is in the simplicity for folding of sandwich panel-unit in a frame to make a module. Our innovative approach to design the solution and system for compose the timber panel result in the prefabrication of finished modules. As industrial production of wooden prefabricated modular sandwich panel-unit our product have high quality standard and is also cost effective and affordable. With easy transportation, packing and delivery OneBed Hotel can be fast compose (autoconstruible) anywhere by anyone like IKEA furniture.

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The product answers to the needs of people to spend leisure time in an accommodation that is safe, comfortable and affordable. OneBed Hotel is a new way of living concept!

2.4 Prototype development

AlpeAdria Development former Aleš Furlanič working on the development for easy to assemble

modular-prefab dwelling (leisure home) with smart design for creatively layout. As a Young Entrepreneur I would like to prototype the product with final iteration and design detail of timber sandwich panel and wooden joints that can able to compose easy and autoconstruible assembling dwelling from timber panels.

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3. Market Analysis

3.1 Target Market and Trend World Tourism Organization in a survey pointed out top five desires of modern consumer;

smart phone,

owning a holiday home,

freedom of working from home,

vacation in an exotic destination,

long vacation time.

In a Flash Eurobarometer survey European citizen pointed out the importance of natural environment of touristic destination. The change in lifestyle also have an impact on trends,

social status is not more reflected in goods – but with unique experience and so-called visible

leisure time. People favorites more affordable and simpler accommodation in destination that offers a sense of in touch with natural environment. Glamping is a new type of tourism, simple, different, in touch with nature, sustainable and healthy. On the other part people are more and more aware of foot print impact, meanwhile the use and demand for Eco (wooden) constructions building material is still increasing. The challenge of sustainability is for rapid building processes, adaptable-flexible use, good-healthy room climate and cost effectiveness. Customer are stressed to the importance of timber solution in house hold, to implement the benefit for everyone timber construction business must became more affordable and regional.

New directions emphasize that wood is the most human-friendly material. With slow annual grow the housing segment is the one market to target - around 80% of dwellings cosntructured are single-family. However the potential market of Eco & Sustainable house increase in EU and about 25-30% of new buildings will be timber frame construction type. The development of the housing market is governed essentially by changes in general population figures and household sizes. Trend in EU countries is going to an increasing number of small households, the share of one-person household is expected to account for about 30% of all households by 2021 (Eurostat).

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Research show that people believe that less is more, what mean that demand in housing market is going in a way of qualitative space requirement (downsize). In small home the design creates space which appears to be more extensive and desirable with functional layout. Our product reflects the human-centered design approach in multi-purpose to meets the value proposition design needs of;

mobility,

affordability,

modular extensions,

sustainability,

creativity & design,

use purpose,

functionality,

community,

social living,

nature.

OneBed Hotel is positioned between mobile homes, camping trailer, tent and hotels, apartments and household for vacation or leisure retreat. Our product is distinguishing because are easy to assembly-dismountable, autoconstruible, you can transport it on van or a small truck and the timber sandwich panel frame enables modularity by extending and increasing the unit with creatively layout. The definition and assessment for OneBed Hotel target market are;

A) Possession of dwellings for leisure time

B) Tourist accommodation facilities (camping, glamping, hostel, urban grooves, fruit

plantations, scouts, bikers, cyclists, hikers, ski resorts, nature reserves, eco village, ...)

C) Temporary accommodation capacity '’as urban installation’' (social house, hostel, a gas

station sleep unit, schools, kindergartens, exhibition trade fair, collapsed buildings, a village

for young people, office, ...)

D) Sleep Unit (airport, railway station, exhibition trade fair, events, office, ...)

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3.2 Customer identification and Market Demand OneBed Hotel is accommodation in the hearth of nature for living a unique experience without giving up the comfort and the service of 5 star hotels concept and values. Our product capture the attention of potential clients through natural appeal, design, assembly solution and comfort that offer to our clients the possibility to escape from urban stress in a natural environment close to the sea or the mountain or elsewhere in the natural environment. Developed through the human-centered design with focusing on value proposition of needs and values for defining target groups, we extract two main categories;

a) Private costumers – for residential units for private leisure home, b) Business customers – for accommodation capacity as a tourist infrastructure.

We believe that OneBed Hotel with its prefab modularity and easy assembling system allows to anyone creative and fast composition of its residential unit, which corresponds to customer needs and desires for cost effectiveness and affordability. Either used as holiday home, first residence, or the aesthetic and environmentally friendly living unit that enriches and facilitate landscape view. Our dwelling unit offers the option of adding or remove modules (extension), which provide a self-sufficiency housing unit. The usability and functionality is even wider with integrated sustainable solutions and elements.

Iztok Franko in his thesis pointed out the idea for village named PESAKROMPIR (beets and potatoes) and the philosophy that smaller accommodation and the life in community offer us what people need. The research that he has done for diploma with interviewing people finds out that;

people spend at home very little time,

for better job is often necessary to move,

people love to spend leisure time in nature environment,

smaller accommodation offer what you need,

idea – the philosophy of life in the community have a lot of advantages.

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The village Pesakrompir is the result that comes from the research that Iztok Franko done. He realized that people like the idea and also figured out some survey data that confirm his hypothesis, results are that;

mobile homes are the right solution in space requirement

(two bedrooms, kitchen and bathroom),

village, like as self-sufficient community are the answer for

people demand, (common areas, nature environment, landscape view, gardens,

photovoltaic, waste water treatment,…),

more than 60% of people have problems to find finance for

home owner ship (affordability, monthly rate,…),

more than 70% of people would like to live in such place.

Our customer groups are potential private customers which looks for private home as well for spend their leisure time. Typically this is ‘’second home’’ and to satisfy consumer needs the dwelling as product must meet their expectations. Classic real estate development projects start from design – approach that ensure that the buildings will be tailor made to satisfy people (family) behavior and needs (demand). AlpeAdria Development driven the solution throw the human-centered design approach to full fill consumer ecpectations and behavior need. We need to know that consumer demand more usefully and affordable small dwelling unit. Most survey also pointed out that people, if have possibility, will chose residential building out of cities (due mobility and landscape view) – in nature not only for leisure time and active holiday but also for living and working from home. So-called Eco Villages, glamping and small housing intensively increasing by number of consumer who decides to live in organized self-sufficient communities. On the other hand, our target customer groups are also business owners of touristic destination who would like to develop their natural environment and landscape view in a profitable way – with renting accommodation. Options are therefore practically endless and limited only by user’s imagination, we can represent some solution as follows;

vacation in nature (glamping),

temporary accommodation (tourists in transit, cyclists, hikers, bikers,...),

experiential holidays,

eco holidays (rural tourism, gardeners, urban grooves, picking fruit in season ...),

organization of thematic events,

the organization of vacation for a population of people with disabilities,

an intergenerational coexistence and integration social projects.

I see myself as Young Entrepreneur in the marketing of social architecture and use of wooden homes for leisure retreat (the product OneBed Hotel) for both target groups! I would like to co-operate with designer and timber production company.

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4. Main Competitors

As we have already mentioned OneBed Hotel is positioned as product to satisfy the needs and demand of population that search affordable house (accommodation) in natural environment. Due the research we have find out our mayor competitors and the strengths/weaknesses of their products and solution offered on the EU market.

LIVING HEDONISM is the motto for enjoy the life when retreat in OneBed Hotel.

Product name Solution Price Strenghts Weaknesses

Lushna www.lushna.com

Arch wooden, 4x4m

10.500 € Eco material, isolation, sustainable, ‘’references’’

No-modular extension, transport + assembly, ceiling height-unserviceable area

TetraShed www-tetra-shed.co.uk

Hexagonal plywood, 4x3.3m

8.700 € Modular extension, DIY assembly, design

Ceiling height-unserviceable area, not a conventional layout

HermiteHouse www.hermithouses.nl

Pavilion wooden, 4.4x4.9m

4.500 € DIY kit material in price, open source manual, customization design application, quickly assembled

Not a conventional layout

Pod-space www.pod-space.co.uk

Cubic wooden, 4.1x3.6m

26.000 € Prefab, modular - extend, Transport with elevator

Vivood www.vivood.com

Wooden 1.8x2.6m

5.900 € Easily assembled by craftsman, carry on truck, prefabricated,

No modular extension

Sleepingaroud www.sleepingaround.eu

Container box

20.000 € Hotel room Transport with elevator, no modular extension

Podhouse www.podhouse.info

Oval Wooden, 3.2x2.4m

7.420 € Modular, prefab pod-house Preassembled + delivery on elevator truck, no modular extension

SleepBox www.sleepbox.co.uk

Wooden Unit, 2.5x1.6m

7.000 € Wooden sleep unit Not for outdoor use, in-door; airport, railway stations,…

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5. Marketing plan

To ensure that my Entrepreneur vision become reality I must drive activities on market; such a research on costumer behavior, analyze needs and measure result through product iteration. Our plan for marketing start from product segmentation and diversification – AlpeAdria Development will sell directly the product, OneBed Hotel, to target audience in such way;

use of distribution channels (Fb, LinkedIn, B2B, B2C) for promotion and advertising,

product promotion with case presentation with focus on usability of solution,

iteration with costumers through the testing experience,

empathize the benefits, sustainability and foot print impact in blogs,

direct marketing to business customers,

promote and develop other (new/unusual) usability of product.

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6. Financial Plan Outline

As a Young Entrepreneur I have plan some outline for financial cost and earnings. In the first part of the project development are costs for design and personal investments for product prototype. Expected short time funds are estimate regard the cost for material-charge of production plant process for prefab sandwich panels unit frames. Other main costs are relatively the sales and marketing cost. Expected incomes are from selling the dwelling unit and from renting them. Exhibit 0 - The development phase

First YEAR Development Design Marketing Sales Sum

Costs 20.000 € 5.500 € 8.500 € 34.000 €

Income 35.000 € 35.000 €

Revenue = 1.000 €

In development feasibility work out the production price of OneBed Hotel start from 300 €/m2 … what is mean that unit of 20 – 30 m2 have target selling price of 12.000 €. Break-even generate contribution toward covering production costs at 9.000 €/unit, not taking into account all other expenses and costs the profit is more than 3.000 €/sold product. Exhibit 1 - 1. Year earnings outline

Exhibit 2 - 2. Year earnings outline

Country / Market a) b) c) d) Income

Slovenia 2 1 1 1 60.000 €

Italy 1 2 1 / 50.000 €

Croatia / 5 1 1 85.000 €

Austria 3 2 1 / 80.000 €

275.000 €

Costs Development 5.000 €

Design 15.000 €

Marketing 30.000 €

Charge 190.000 €

Costs sum: 240.000 €

Revenue = 35.000 €

Country / Market a) b) c) d) income

Slovenia 2 1 1 1 60.000 €

Italy 2 2 1 1 75.000 €

Croatia 1 10 1 1 160.000 €

Austria 2 3 1 1 85.000 €

Swiss 2 2 1 1 80.000 €

Germany 2 2 1 1 80.000 €

Norwegian 2 2 1 1 80.000 €

Holland 2 2 1 1 80.000 €

700.000 €

Costs Development 5.000 €

Design 5.000€

Marketing 80.000 €

Charge 560.000 €

Costs sum: 650.000 €

Revenue= 50.000 €