Business Plan: Golden Sands Hotel, Jeddah
Abstract
The Golden Sands Hotel (GS) will be a 150-room hotel investment in Jeddah, Saudi
Arabia. High-quality services will be provided in its facilities to meet the expectations
of targeted segments. The GS will be categorized as an upscale hotel in the market,
obligated to offer rooms and other services depending on the reason for the stay to
its guests as products. The development of the project is estimated to start
construction in March 2023 and be delivered in November of the same year, costing
£18,925,225. The GS is expected to start receiving reservations in January 2024.
Business Concept
The GS will be located in the Al-Marwa district, which is currently under
development by the government of Saudi Arabia to be prepared for expected
projects. The location is considered one of the most strategic areas in Jeddah and
has projects that will encourage tourism in the city. The GS is planned to take
advantage of the fast-emerging tourism sector that enhances hotels across Jeddah,
driven by three demand types: leisure, tourism, and religious visitors (Savills, 2019).
Meanwhile, a limited number of hotels that are available near the location and
provide limited services regarding the reasons for guests' visits. Therefore, in order
to add value to the market, the GS will offer special services other than
accommodation related to the purpose of visit. The GS aims to add value to the
customers' experiences to gain closer interaction, which helps the company to stand
out in Jeddah's competitive hotel market (González-Mansilla et al., 2019). All of
these services will be offered online and in-person before and during the stay. In
addition, four different types of modern rooms will be equipped with the latest
features on the market, with a 24/7 concierge to make the stay of visitors as easy as
possible for them, which will help the GS to fulfil the mission. “Deliver high standard
hospitality services to its guests and makes their stay as easy as possible by providing
all necessary services and tools in the perfect location at the right time.”.
Market
The market analysis indicates that the macroenvironment of GS has great
advantages when considering the improvement of the hotel industry in Saudi Arabia.
Also, the industry analysis indicates that there is a great chance for the GS to enter
the market as the customers in Saudi Arabia prefer the upper class and higher for
stay. The attitude towards a new hotel investment in Jeddah is overall expected to
be positive. However, few threats were identified that needed to be considered.
Furthermore, the competitor's analysis shows that the GS will be able to successfully
position itself among selective competitors due to the various services offered and
the reasonable pricing strategy.
Marketing
Jeddah has a high-demand hotel market and is forecasted to have higher demand in
the next few years. Visitors tend to prefer hotels to other types of accommodation.
The wide range of segments the city has due to the multiple places of interest.
Therefore, the GS targets a higher range of segments. The GS mainly considers
couples and small groups that come as solo travellers, couples, or small groups for
leisure, religious purposes, and business, whether domestic or international
travellers. In order to reach the targeted group, the GS will establish an effective
marketing plan that mainly focuses on online presence, with occasional offline
presence at some events. Also, a brand strategy will be applied to increase the
awareness of the brand. Also, the marketing team will build relationships with other
corporations to build a stronger brand image.
Operation and Resources:
The GS will count mostly on human resources to operate, with few technological
platforms for check-in/out and reservations for other services. The GS will develop
an effective HR structure and plan that includes all personnel aspects of the
business, from recruitment to training and development, with competitive salaries.
Also, the departments of the GS have been divided into: 1-HR and Administration; 2-
Rooms; 3-Accounting; and 4-Sales and Marketing, managed by skilled managers that
have at least 5 years of experience in the field. In addition, the GS will have other
resources such as physical, financial, information system resources, and security. All
of these resources will be utilized to create the best possible journey for guests
according to a clear operational procedure.
Financial Projection:
The Golden Sands Hotel is proposed to be a private limited company. It seeks to be
funded by the Saudi Finance Ministry. The total cost of development is estimated to
be £18,925,225. The government provides £22,046,000, which will allow the
company to increase the cash flow for the GS during the start-up. Thus, the founder,
Mr. Mohammed Alsulami, would possess 55% of the shares/equity, and Mr.
Abdullah Alsulami would possess the other 45 % as a landowner.
The sales of GS are estimated to reach more than £4 million and are projected to
increase slightly more in the first 4 years. The room department is expected to
contribute 85% of sales, with F & B accounting for 5%, transportation accounting for
4%, ticket commissions accounting for 4%, and MOD accounting for 2%. The P&L
Statement forecasted a GOP of £2.4 million, with forecasted increases in the first 4
years. Based on the financial analysis, the break-even point is 14,556.5 units (rooms
sold) or £1,346,474.9 sales. The investment is forecasted to deliver profits from year
one, and the capital gain is expected to be £4,327,785 after five years.
Description
A hotel buesiness plan.
Please see the attached files for the dissertation, certificate, and marks.
Keywords
Hotel, Business plan, Operation, Marketing