happy arty hotel barcelona
DESCRIPTION
Happy Arty Hotel Barcelona is a business plan about a 4 stars lifestyle hotel project based on alternative music and urban art. The plan covers all aspects from lifestyle definition, corporate strategy, segmentation and target definition, positioning and marketing mix, and financial plan.TRANSCRIPT
Happy Arty Hotel Barcelona
Candidate: Benjamin CANZANOTutor: Iris Hillier
HotelAuthentic
LifestyleEmotion
ExperienceArt
FunMusique
Soul
Creativity
Social
Culture
Unique
Environment
Local
INDEX
Company overview & strategy
Business environment analysis
Marketing plan
Financial plan
Implementation
COMPANY OVERVIEW & STRATEGY
COMPANY OVERVIEW
Lifestyle Hotel
4 Stars
90 Rooms
Dedicated to alternative music and urban art
Retro-design atmosphere
Company overview &
strategy
Business environment
analysis
Marketing plan
Financial plan
Implementation
PROJECT LEADER BACKGROUND
Degree in Business Science
Master Degree in Hospitality Management
Experience in MICE sector and Interior Design
Founder and manager of The Royal Racer
Company overview &
strategy
Business environment
analysis
Marketing plan
Financial plan
Implementation
LIFESTYLE
Way of living of individuals, families & societies
Expressed in both work and leisure behaviors
Affect the allocation of incomes
Reflects people self-image
Different from « way of life »
Company overview &
strategy
Business environment
analysis
Marketing plan
Financial plan
Implementation
LIFESTYLE & BOUTIQUE HOTELS
High attention to details
Distinct qualities
Distinctive design, style & atmosohere
On-site F&B
Uniqueness
Company overview &
strategy
Business environment
analysis
Marketing plan
Financial plan
Implementation
LIFESTYLE VS. BOUTIQUE HOTELS
Lifestyle Hotels
• Living elements and activities
• Functional design• Personally
meaningful experience
• Niche market• 100 to 150 rooms
Boutique Hotels
• Intimate, luxurious & upscale
• Particular clientele• Notion of charm• 60 rooms max
Company overview &
strategy
Business environment
analysis
Marketing plan
Financial plan
Implementation
KEY COMPONENTS OF LIFESTYLE HOTELS• Consistent corporate strategy• Accurate segmentation and targeting• Experience• Emotion• Design• Personalized service• F&B
Primary
• Locality• Merchandising• Events & happenings
Secondary
Company overview &
strategy
Business environment
analysis
Marketing plan
Financial plan
Implementation
OBJECTIVES
Customer satisfaction of 90% within the 1st year
Occupation of 80% within 3 years
Top 20 on TripAdvisor within 2 years
Certified by the EU Ecolabel for Tourists Accommodations
Local objectives• 100% of local artisans and artists involved in the design• 70% of local food• 60% of local suppliers• 60% of local employees and 50% of local artists on events
Company overview &
strategy
Business environment
analysis
Marketing plan
Financial plan
Implementation
VISION & MISSIONCompany
overview & strategy
Business environment
analysis
Marketing plan
Financial plan
Implementation
VISIONHappy Arty Hotel wants to be recognized as the number 1 brand in Barcelona to live a lifestyle
experience based on art, music and social mixture.
MISSIONAt Happy Arty Hotel Barcelona we offer our guests an authentic, local-oriented retro-design hotel experience where everything is
dedicated to create an outstanding musical and artistic journey to finally exceed our customer’s expectations so that they will love to
come back.
CORE VALUES
Authenticity CreativityCommited to
our community
Environment friendly Innovation
Company overview &
strategy
Business environment
analysis
Marketing plan
Financial plan
Implementation
BUSINESS ENVIRONMENT
ANALYSIS
GENERAL OVERVIEW OF BARCELONA
Ranked 5th best destination in the world by TripAdvisor
Seaside city
Well developed transportation network
4th European city for international arrivals
Major events
Dominated by 4 & 5 stars hotels, big players
Company overview &
strategy
Business environment
analysis
Marketing plan
Financial plan
Implementation
PESTLE ANALYSISCompany
overview & strategy
Business environment
analysis
Marketing plan
Financial plan
Implementation
Political
Economic
Social
Technological
Legal
Environmental
0
5
10
PESTLE
5 FORCES ANALYSISCompany
overview & strategy
Business environment
analysis
Marketing plan
Financial plan
Implementation
Buyer Power
Supplier Power
New entrantsSubstitutes
Rivalry
0
5
10
5 FORCES
ANALYSIS OF THE COMPETITION
160 4 & 5 stars hotels in Barcelona
12 projects in the 3 coming years
ADR = 115€ to 190€ in 2011
RevPAR = 85€ to 150€ in 2011
4 Lifestyle « like » hotels• Casa Camper• Grand Hotel Central• Hotel OMM• Hotel W
Company overview &
strategy
Business environment
analysis
Marketing plan
Financial plan
Implementation
COMPETITOR’S VALUE CURVECompany
overview & strategy
Business environment
analysis
Marketing plan
Financial plan
ImplementationExperience Emotion Design Service F&B Environment Locality Merchandising Events Creativity Authenticity
0
1
2
3
4
5
6
7
8
9
10
Competitors' Value Curves
Casa Camper Grand Hotel Central Hotel Omm Hotel W
INTERNAL ANALYSIS – VALUE CHAIN
Company overview &
strategy
Business environment
analysis
Marketing plan
Financial plan
Implementation
Inbound Logistic Operations Outbound
LogisticMarketing
& Sales Service Artistic operations
People Management
Administration
IT Management
INTERNAL ANALYSIS – ORGANIZATION CHART
Company overview &
strategy
Business environment
analysis
Marketing plan
Financial plan
Implementation
Artistic Director
Finance Revenue Marketing & Sales F&B
People Management
MARKETING PLAN
MARKET RESEARCHCompany
overview & strategy
Business environment
analysis
Marketing plan
Financial plan
Implementation
7.4 Million tourists in 2011 in Barcelona
15.5 Million overnights – Average 2.1 nights / stay
Museums and exhibition centers = 13 million visitors in 2011
Architecture, culture and enterteinement = top 5 reasons for coming
Low seasonality – April to October = 68% of total demand
2011 2012(Forecast) 2013(Forecast)
Occupancy 70.7 % 73.7 % 75.7 %
ADR 113.9 € 116.85 € 115.85 €
RevPAR 80.56 € 86.13 € 87.32 €
DEMOGRAPHIC SEGMENTATIONCompany
overview & strategy
Business environment
analysis
Marketing plan
Financial plan
Implementation
50%
42%
8%
Purpose of visit 2011
Leisure Business Other
Source: Tourisme Barcelona
DEMOGRAPHIC SEGMENTATIONCompany
overview & strategy
Business environment
analysis
Marketing plan
Financial plan
Implementation
24%
51%
8%
17%
Region of origin 2011
Spain EuropeUSA Rest of the world
Source: Tourisme Barcelona
DEMOGRAPHIC SEGMENTATIONCompany
overview & strategy
Business environment
analysis
Marketing plan
Financial plan
Implementation
15-17 yo
18-24 yo
25-34 yo
35-44 yo
45-54 yo
<55 yo
0 5 10 15 20 25 30 35 40
0.2
3.9
19.3
36.3
28.8
11.5
Visitors' Age 2011 (%)
Source: Tourisme Barcelona
DEMOGRAPHIC SEGMENTATIONCompany
overview & strategy
Business environment
analysis
Marketing plan
Financial plan
Implementation
Couple
Alone
Colleagues
Family
Friends
Others
0 5 10 15 20 25 30 35 40 45
41.6
26.2
16.4
10.1
9.7
1.3
Acompanying Person 2011 (%)
Source: Tourisme Barcelona
PSYCHOGRAPHIC SEGMENTATION – VALS-2
Company overview &
strategy
Business environment
analysis
Marketing plan
Financial plan
Implementation
PSYCHOGRAPHIC SEGMENTATION – VALS-2
Company overview &
strategy
Business environment
analysis
Marketing plan
Financial plan
Implementation
Segment Lifestyle characteristics Psychological characteristics
Consumer characteristics
Innovators Successful, sophisticatedValue personal growthWide intellectual interestsVaried leisureWell informed, concerned with social issuesHighly socialPolitically active
OptimisticSelf-confidentInvolvedOutgoingGrowth orientedLeader
Enjoy the “finer things”Receptive to new products, technologiesFrequent readersLight TV viewers
Experiencers Like the new, offbeat and riskyLike socializing and sportsConcerned about imageUnconformingPolitically apathetic
ExtravertedUnconventionalActiveImpetuousEnergeticEnthusiasticImpulsive
Follow fashionSpend income on socializingBuy on impulseAttend to advertisingListen to music
PSYCHOGRAPHIC SEGMENTATION – MBTI
Company overview &
strategy
Business environment
analysis
Marketing plan
Financial plan
Implementation
Measure psychological preferences on how people perceive the world and make decisions.
Focuses on 4 dimensions resulting in 16 psychological types
• Introversion vs. Extroversion• Sensing vs. Intuition• Thinking vs.Feeling• Judging vs. Perceiving
1 Segment = ENFPExtroverted – Intuitive – Feeling – Perceiving
• Charismatic, imaginative, warm with others, need attentions• Seek harmony• Optimistic• Journalist, comedian, marketing or advertising consultant, musician or photographer
PSYCHOGRAPHIC SEGMENTATION – FLASHPACKERS & GLAMPACKERS
Company overview &
strategy
Business environment
analysis
Marketing plan
Financial plan
Implementation
Older generation of backpackers – 25 to 40 years old
High education and income
Looking for experience
Less time – shorter trips
Variety of accommodations
More organized
Glampackers • Oldest group with the highest income• Travel in style• Sensitive to culture
BENCHMARKINGCompany
overview & strategy
Business environment
analysis
Marketing plan
Financial plan
Implementation
TARGET DEFINITIONCompany
overview & strategy
Business environment
analysis
Marketing plan
Financial plan
Implementation
Leisure travelers
Between 25 and 45 years old
Income higher than 50 000€
Mainly from Europe & USA
Travel alone, in couple, with friends or family
Have creative jobs
TARGET DEFINITIONCompany
overview & strategy
Business environment
analysis
Marketing plan
Financial plan
Implementation
Seeking for new experiences
Socializing
Technologically connected
Care about self-image
Optimistic
Environmentaly aware
POSITIONINGCompany
overview & strategy
Business environment
analysis
Marketing plan
Financial plan
Implementation
We do not consider ourselves as a hotel brand but as a lifestyle brand
COMPETITIVE ADVANTAGECompany
overview & strategy
Business environment
analysis
Marketing plan
Financial plan
Implementation
Precise target
Consistent strategy
Set-up new rules in the industry
Create a new value curve
VALUE CURVECompany
overview & strategy
Business environment
analysis
Marketing plan
Financial plan
ImplementationExperience Emotion Design Service F&B Environment Locality Merchandising Events Creativity Authenticity
0
1
2
3
4
5
6
7
8
9
Happy Arty Value Curve
Happy Arty Hotel
PRODUCTCompany
overview & strategy
Business environment
analysis
Marketing plan
Financial plan
Implementation
4 Stars Hotel
Located in El Raval or El Born
Retro-design by Sandra Tarruella
Focus on alternative music and urban art
PRODUCTCompany
overview & strategy
Business environment
analysis
Marketing plan
Financial plan
Implementation
80 rooms• 5 Bunk-bed rooms• 5 Single rooms• 60 Standard Double Rooms• 5 Superior Rooms• 4 Suites• 1 Large Suite
1 Bar-restaurant / Event venue with terrace
3 Meeting rooms
2 Retail area: 1 pop-up store & 1 merchandising store + 1 Barber Shop
Lobby = most important part of the hotel
PRICINGCompany
overview & strategy
Business environment
analysis
Marketing plan
Financial plan
Implementation
•BAR Rate: room only basis, refundable 24h prior to arrival
•Non-refundable rate (BAR -10%): room only basis
•Early-bird rate (BAR -20%): room only basis, non-refundable, between 45 to 30 days prior arrival or up to 50% occupancy
•Rack rate
Pricing Policy
KPIsKPIs 1st Year 2nd Year 3rd Year
Occ (%) 68% 73% 77%
ADR (€) 110€ 113€ 116€
RevPAR (€) 74,8€ 82,5€ 89€
PRICINGCompany
overview & strategy
Business environment
analysis
Marketing plan
Financial plan
Implementation
•SONAR Package: To be booked 60 days prior to the festival, breakfast included, tickets and shuttle to the festival.
•Love’n Roll Package: 2 nights in double room or superior, bottle of Champagne, breakfast included, 1 dinner at the restaurant.
Packages
•Cash•Credit card•Invoice•Mobile•PayPal
Paying Methods
DISTRIBUTIONCompany
overview & strategy
Business environment
analysis
Marketing plan
Financial plan
Implementation
SALES
Direct (15%)
Online (8%)
Offline (1%)
Corporate Agreements (6%)
Indirect (85%)
OTAs (60%)
Travel Agencies (10%)
TOs (10%)
Others (5%)
DISTRIBUTIONCompany
overview & strategy
Business environment
analysis
Marketing plan
Financial plan
Implementation
•Parity rate
Policy
•With club, events promoters, exhibition centers to accommodate their artists
•With marketing, advertising or web-based companies
Corporate agreements
PROMOTIONCompany
overview & strategy
Business environment
analysis
Marketing plan
Financial plan
Implementation
Social Medias
• Community manager
• Facebook & Twitter• Youtube • Soundcloud &
Spotify• In-house blog• Active survey
PR
• PR events• Press release
PROMOTIONCompany
overview & strategy
Business environment
analysis
Marketing plan
Financial plan
Implementation
Events
• Attract both local and other hotels customers
• Enhance positive word of mouth
Merchandising
• Sold at the hotel shop and online
• Spread the brand image after guest stays
PEOPLE – SELECTION PROCESSCompany
overview & strategy
Business environment
analysis
Marketing plan
Financial plan
Implementation
Aligned with our strategy & target
We value attitude, behaviors, cultural interest and style first• Staff in direct contact with customers &
management position: selection based on cultural references
• Back-office, administrative, technical positions: selection based on skills and knowledge
PEOPLE – TRAININGCompany
overview & strategy
Business environment
analysis
Marketing plan
Financial plan
Implementation
Be Happy
Happy WELCOME
Happy SKILLS
Happy COM
Happy MENU
Happy UPDATES
Happy SURVEY
PEOPLE – TRAININGCompany
overview & strategy
Business environment
analysis
Marketing plan
Financial plan
Implementation
•2-days orientation program for new recruits
•Focuses on company’s mission, vision, values and basic procedures
Happy WELCOME•Dedica
ted to new or promoted employees
•Focuses on technical skills, procedures and quality standards
Happy SKILLS
•Interpersonal / inter-department program
•Focuses on the improvement of communication skills
Happy COM
•Catalogue of various training programs
•Designed with managers to answer specific needs
Happy MENU
•Organization, market or industry changes anticipating program
Happy UPDATES
•Monitoring program
•360° procedure involving People Department, managers and employees
Happy SURVEY
PROCESS – OPERATIONAL BEST PRACTICES
Company overview &
strategy
Business environment
analysis
Marketing plan
Financial plan
Implementation
Environment
• Waste management• Recycling bins• 75% sustainable
materials• Local food producers• Water recycling
system
Customer Service
• In-room vinyl selection according to customer’s taste
• Full fridges on every floor
• Immediate feedback with tablet in key areas of the hotel or mobile app
PHYSICAL EVIDENCESCompany
overview & strategy
Business environment
analysis
Marketing plan
Financial plan
Implementation
Design
Instrument in rooms: guitare, vinyl player, piano
Merchandising
Amenities
Lifestyle magazines and books in rooms
PHYSICAL EVIDENCESCompany
overview & strategy
Business environment
analysis
Marketing plan
Financial plan
Implementation
PARTNERSHIPSCompany
overview & strategy
Business environment
analysis
Marketing plan
Financial plan
Implementation
Local artists and brands for merchandising collaboration
International brands for the pop-up store
F&B
Amenities
Festival and events promoters
PARTNERSHIPSCompany
overview & strategy
Business environment
analysis
Marketing plan
Financial plan
Implementation
FINANCIAL PLAN
BUSINESS MODELCompany
overview & strategy
Business environment
analysis
Marketing plan
Financial plan
Implementation
•Happpy Arty Hotel is a “Sociedad Limitada”
•Based in Spain
•Benjamin Canzano is its legal representant
Legal Form
•HAH is a hotel operator
•Operating under lease agreement
Business Model
BUSINESS PARTNERSCompany
overview & strategy
Business environment
analysis
Marketing plan
Financial plan
Implementation
•Interested in investing in a new type of hotel operation
•Sharing the same vision and culture
•Long-term business relationship
Shareholders
•Interested in buy and lease-back operation
•Willing to invest 12 to 15 million € in and renovate a prime location in Barcelona City Center
•Ready for long-term investment and to work on future projects
Real Estate Investors
LEASE AGREEMENTCompany
overview & strategy
Business environment
analysis
Marketing plan
Financial plan
Implementation
25 years contract
Fixed rent (800 000€ / year) + variable (7% on net income)
Investor responsible for renovation costs
Operator responsible for refurbishment costs
START-UP COSTSCompany
overview & strategy
Business environment
analysis
Marketing plan
Financial plan
Implementation
Element Cost
Rent 800 000€
Refurbishement 800 000€
Machinery & IT 200 000€
Adminstrative 50 000€
Initial stock 100 000€
Working capital need 400 000€
Total 2 350 000€
P&LCompany
overview & strategy
Business environment
analysis
Marketing plan
Financial plan
Implementation
1st year 2nd year 3rd year Revenues Rooms 2 457 180 2 726 550 2 923 650 F&B Sales 737 154 817 965 877 095 Merchandising 294 862 327 186 350 838 Pop-up store rent 44 229 49 078 52 626 Meeting rooms 36 858 40 898 43 855 Barber shop 24 572 27 266 29 237 TOTAL 3 594 854 3 988 943 4 277 300 Costs Personnel 1 078 456 1 196 683 1 283 190 Food & Beverage 179 743 199 447 213 865 Cost of good sold 98 287 109 062 116 946 TOTAL 1 356 486 1 505 192 1 614 001 Other Costs 2 030 810 2 152 583 2 246 507 EBIT 207 558 331 168 416 792 Financial expenses 215 691 239 337 256 638 EBT -8 133 91 831 160 154 Income taxes 0 22 958 40 038 NET INCOME -8 133 68 873 120 115
CASHFLOWCompany
overview & strategy
Business environment
analysis
Marketing plan
Financial plan
Implementation
2nd year 3rd yearCash and banks - beginnig
balance 1 222 098 1 241 677
Cashflow 19 579 63 043
Cash and banks - final balance 1 241 677 1 304 720
ROICompany
overview & strategy
Business environment
analysis
Marketing plan
Financial plan
Implementation
Dividend starting 4th year
ROI expected within 10 years
IMPLEMENTATION PLAN
IMPLEMENTATION PLANCompany
overview & strategy
Business environment
analysis
Marketing plan
Financial plan
Implementation
1 MonthCompany Creation
3 MonthsInvestors Research
Real Estate Research
3 Months Administrative
Tasks
7 MonthsRenovation workSupply research
Training
1 MonthPre-opening
OpeningTotal 15 Months
THANK YOU