John Carey / Athlone IRL and Eda Veeroja / Voru EE: co-authors
Task for the AEHT Competition “Hospitality Management level 5 up EQF” -
Business plan for the Lisboa Hotel reconstruction.
In September 2010 there was contest to seat reconstruction management team of Lisboa Hotel. Congratulations! You are the winners, you have got the position !
The Lisboa Hotel is owned by Mr Canavaro who bought the hotel out of liquidation three years ago. The hotel is three star standard with four star potential. The hotel has 80 bedrooms. 56 rooms are twin/double rooms and the remaining rooms are single rooms. All of the bedrooms have en-suite facilities. Generally the hotel is in a poor state of repair.
The hotel has a restaurant and terrace seating 150 diners.
This is the first time that Mr Canavaro has entered the hotel business. He installed his friend and financial advisor Mr Cristiano Nani to operate the hotel on a day to day basis. Mr Nani has no hotel experience but is an excellent accountant. He can only give one or two days per week of his time to run the hotel as he is very busy with controlling other aspects of Mr Canavaro’s portfolio. Cristiano prides himself on his ability to run a tight ship and keep costs under control.
Now Mr Canavaro seeks for new management, reconstruction and clear business and management idea for the hotel.
|2008||2009||2010 (part estimated)|
|Total Asset Value||3,800,000||3,500,000||3,500,000|
|Medium and Long Term Loans||380,000||340,000|
Mr Canavaro statement is: “We want a hotel that we can be proud of and that represents all that is good about Portuguese hospitality”.
Mr Nani said that although capital funds are difficult to come by and must be justified funds are available through loans and debentures from Mr Canavaro, charged at the usual bank rate.
The Lisboa Hotel is situated in the Alcantara district with the Ponte 25 de Abril bridge in view. The hotel lies just off Ave de Brasilia, within two hundred metres of the beautiful marina. The main train station is within five minutes walk. The Lisboa tram service passes close by providing easy access to Lisboa city centre and many other attractions. Estoril, the popular beach resort town is just a 10 minute train journey along the coast.
|XXX Lisboa Hotel|
|Profit and Loss Account|
|For Year Ending 31st December 2009|
|Rooms||€ 423 360,00|
|Restaurant||€ 389 040,00|
|Bar||€ 200 645,00|
|Total Sales||€ 1 013 045,00|
|Direct Trading Costs|
|Room||€ 67 737,00|
|Food Cost||€ 178 958,00|
|Beverage bar costs||€ 116 000,00|
|Labour costs||€ 375 762,00|
|Total Direct costs||€ 738 457,00|
|Insurance||€ 75 987,00|
|Salaries||€ 190 020,00|
|Repairs and Maintenance||€ 30 394,00|
|Interest on loans||€ 20 800,00|
|Marketing and advertising||€ 15 200,00|
|Training||€ 4 340,00|
|Legal and accounting expenses||€ 29 450,00|
|Miscellanious||€ 39 399,00|
|Total Expenses||€ 405 590,00|
|Net Profit (loss)||-€ 131 002,00|
that need to be tackled immediately planning changes that should be made over the next 12 months for business plan of the Lisboa Hotel reconstruction comprise:
- Evaluate the current position of Lisboa Hotel ( SWOT Analysis).
- Design the new business idea and management model for the the Lisboa Hotel; rename the hotel and create a Mission Statement for the hotel.
- Propose the action plan and the schedule what Lisboa Hotel should pursue during the reconstruction.
- Draw up a proposed Profit and Loss Account for 2011 ( after the reconstruction ).
The plan should be sustainable, creative and innovative in order to convince Mr Canavaro, Mr Nani and the bank to grant the credit.
Marking Criteria and Specification
|Judges Panel||Groups of competitors average||Total|
|Business Plan Development||60 Marks:||10 Marks||70 Marks|
|Innovation and sustainability of the new idea||10|
|The ability to analyze and synthesize knowledges of the hospitality management||20|
|Action plan, schedule||5 + 5|
|Profit and Loss Account||10|
|Solution Presentation||20 Marks:||10 Marks||30 Marks|
|Evidence of teamwork||5|
|Observation of time limits||5|
|Total||80 Marks||20 Marks||100 Marks|
Carey / Veeroja