Prospectus

For A

Hotel – Resort

The Sense of Place…!

Project Title : Prospectus for a Hotel Resort

Project Purpose : A Summarized Assessment of a 3-star Class Eco-friendly Hotel for the Potential Investors

Project Location : Within the Sri Lanka’s Famous Cultural Triangle

Project Estimate : USD $ 2.35 Million

2 | P a g e

Contents

1. Brief Introduction to the Hotel Industry ………… Page 3

2. About the Prospective Hotel ………… Page 3

3. Things To Do ………… Page 4

4. Corporate Social Responsibility is a must ………… Page 4

5. Keys to Success for all Investors ………… Page 5

6. Pricing and Profitability ………… Page 6

7. Summary of Market Analysis ………… Page 6

8. Market Segmentation ………… Page 6

9. Hotels’ Eco-Friendly Policy ………… Page 8

10. Trade, not Aid ………… Page 8

Appendix

Financial Feasibility (Summary)

3 | P a g e

1 Brief Introduction to the Hotel Industry

he 2004 Indian Ocean Tsunami and the past Civil War have reduced tourist arrivals but Sri Lanka received over half a million tourists in 2006. The International media reports published about the improvements in industry of January 2008 by 0.6%, March 2008 by 8.6% when comparing to last year's (2007)

figures. It was reported that in the year 2011, total revenue from the tourist’s arrival to the country is $830.3 million from 850,000 tourist’s inflow. Further, the tourism board

expects over 2.5 million tourists in 2016 since, it is exceeded $1.5 Million as of now (in 2015) and is keep growing and some of the major hotel and resort development projects currently underway in Sri Lanka.

2 About the Prospective Hotel

The prospective hotel is in a village located within the Sri Lanka’s world famous

cultural triangle of Kandy – Anuradhapura – Polonnaruwa. Explore the glorious past of

a country known as Purl of the Indian Ocean, from a hideaway where the History,

Time and Tradition meets.

Though this Hotel is modernly architected, it has a oriental touch, and located just

about 150Km away from the capital city of Colombo – Katunayake Airport, where

the most significant and most popular tourist sites of Sigiriya,, Habarana, National

Park of Minneriya, Ritigala, Anuradhapura, and Pollonnaruwa are in close proximity

to the hotel resort, positioned in a prime location that puts everything the city has to

offer just outside the doorstep.

This 3-Star hotel is beautifully landscaped and designed in a 6 Acre land, which

consists of skillfully crafted, 28 self-contained Chalets & Cottages available for holiday

rental – year around. Such Chalets and Cottages are fully equipped and fully furnished,

yet private with separate entrances, often in a echo-friendly green-garden or forest type

surroundings with all facilities of ; Wi-Fi Internet, Wooden Furniture, Air-condition,

Cable/ Sat-TV, Mini-bar, Hot-water and many more i.e. Restaurant, Bar, 24 hours Room-

service & Security, Swimming pool, Parking, Porter, Laundry, Bullock Cart-ride, Jeep

Safari, Jacuzzi and also offers recreational facilities to make the guests stay

unforgettable.

T

4 | P a g e

3 THINGS TO DO

Outdoor Activities: Mountain Bicycle & Jeep Rides

The times of riding a bike with uninhibited glee & delight as you pedal through the Breeze Mountains and experience nature as never before and we will also include Mountain Bicycle Rides (BMX) for anyone who likes expedition where the Bicycles and Jeep-safari can be requested at the front desk.

Bird Watching

Each Nature-cabin is equipped with binoculars for a very specific reason; over 150 species of birds migrate to the areas surroundings. An early morning walk through the greens is a treat for bird lovers. 435 birds have been identified in Sri Lanka and among these 26 are endemic to Sri Lanka. The Serpent Eagle and the Hawk Eagle are among many birds which can be spotted here.

Nature Walks

Walk through the land encompassing the hotel and encounter many species of animals; Peacocks, Butterflies flutter past as walk along, Deers’ walk ahead of guests as if leading the way, monitors scamper about the fields and Peacocks stretch their wings to display the radiance found in nature. Hotel is flanked by the natural spring-water resource, bestowing the surrounding land with an abundance of plants, flowers and trees for you to explore.

4 Corporate Social Responsibility is a Must

All these and above, will popular the new owners/ investors which leads to attract more tourists as in this hotel always something different happens which is differentiate from all other competitors.

Thus, the hotel should be participated in many projects aiding community developments which include; intervention of School projects, donations for school book/ libraries and local functions like workshops to educate the local people about the environment, their role in it and how we are all affected by pollution and global warming.

5 | P a g e

5 Keys to Success for all Investors

The creation of a unique and innovative fine dining atmosphere will differentiate from the competition. The restaurant will stand out from the other restaurants in the area because of the unique location, design and decor. The hotel can offer a fine dining experience in a echo-cozy atmosphere. The fact that no other restaurant in the area has this concept and scenic atmosphere presents with a window of opportunity and an entrance into a profitable niche in the market.

Product quality, not only great food but great service and atmosphere and the menu will appeal to a wide and varied clientele.

Restaurant may have special theme colours for special nights like restaurant nights, local artist's openings, and on weekend DJ dance, wine tasting dinners, special ethnic food nights. All this will attract a varied clientele to the hotel.

Controlling costs at all times without exception.

Due to intense competition, restaurateurs must look for ways to modify/ differentiate their place of business in order to achieve and maintain a competitive advantage. A potential buyers must realize this, with the re-entering the development, it needs a place that will fit into the 'better look' of the community that is exclusive and entertaining.

The Eco-tourism is committed to further the NATIONAL stated vision that “Tourism in Sri Lanka shall continue to be developed to the highest standards for the optimum social and economic benefit of the locals while maintaining a commitment to the protection and conservation of the natural environment and biodiversity thus helping our country and local communities’ work towards social, ecological and economic sustainability.

Subsequently, the hotel will be the perfect place when customers need that 'little

extra.' They can have business meetings here, a place for a quiet conversation, or

for a special occasion. We will make up special meals for customers' special

occasions.

6 | P a g e

6 Pricing and Profitability

The hotel presently depending total sales allocation is approx 85% sales from Food & Lodgings and from all Beverages, 10% sales from Wedding/ reception & caterings, 5% sales from the Ayurvedic Spa & Guide services. The combined cost of sales will be 20% producing a gross profit of 80% on total sales.

Prices should be competitive, but should be maintained its class with other upscale restaurants in the area. However, the strategy of the hotel should be to give a perception of higher value than its competitors, through its foods, services and entertainments.

7. The Summary of Market Analysis

Because of the investors' connections and above said Corporate Social Responsibility activities within the very trendy area, the hotel may have an excellent feel for the area and its core group of customers. They will all share something alike, which is a feeling of being in the "in crowd" and having "not forgotten it" in life. Although the crew should be different and not connect with each other in each segment, as each segment is complementary to the others.

The hotel should focus on middle-upper locals, tourists/ foreigners and restaurant seekers, whom have a desire for good food and taste for historic culture who fascinates the surrounding atmosphere.

8 Market Segmentation

The hotel intends to cater to a wide group of people as everyone to feel welcome and relaxed in a echo-cozy atmosphere with wide and varied menus. The goal should be to

give, ”the sense of place “ for everybody. In looking at our market analysis, the following groups as targeted segments can be defined.

The hotel should be focuses on attracting a wide and diverse clientele ages 25-60 with a monthly income of over $250/- as above specific groups are the types of people who frequent other restaurants and bars in the area. They are the ones that are willing to spend their money on good dining and service at a value price. As generally should know the characteristics of the clientele with the available demographics.

7 | P a g e

The country’s geographic include people from the local area, restaurant patrons from neighboring cities, and tourists from other cities and states. The characteristics of the clientele will be differentiating from the people who have creative thinking.

Tourists/ Foreigners, High-end Singles & Rich Hippies: The attraction of Tourists/ foreigners, High-end singles & Rich hippies are a massive group with tremendous influence over the archaeological and cultural history of the county. Tourists around the world come and crave to discover and to feel of being in a ancient circle that is rapidly changing the world - even if in different ways than in their glory days. The hotel can cater to their ecological ideology and contribute to charities to help them part with more of their money.

The Businessmen, Executives & Lonely Rich: The Businessmen (most of them are company owners) work hard all day and often stay overnight in a strange place which they need a competent establishment that helps impress their clients and prospects. Afterward, they want to relax and use the money they are making. They are the people that spend the most on drinks, food and tips.

On the other hand, most of Executives & Lonely Rich are Bankers, tech workers these days, and most of them work in a computer environment. Their life has become their computers & servers and code they write, and the people who help them to make the decisions in that world. They hang out with each other, but desperately want to get away from it and use the money they are racking up. Because this wealth has come fairly easily for them, it is particularly easy to separate them from their money again - they spend the most on drinks, appetizers and tips.

Honeymooners/ Happy Couples & Families: The restaurant will have an intimate, romantic, green-cool atmosphere that encourages people to bring dates and to have couples arrive. The hotel should be a search place where people meet each other and develop a network. These young couples are generally very successful but balanced and won't be spending as much on drinks but require quiet cool but much secure and picturesque atmosphere.

On the other hand for families; they need a perfect place to getaway their daily routine. Families will come for the accommodative menu and friendly service. The excellent value in their meals will keep the hotel in favor with the parents, where the organic food menu will always have a line of extremely delicious very low-fat meals. The hotel should have place for them to discuss all types of matters while feeling good about the food they eat.

8 | P a g e

9 Hotels’ Eco-friendly Policy

This very prospective investment is a hotel and a accommodation that has made important environmental improvements to its structure in order to minimize its impact on the environment as the basic definition of a green life hotel is an environmentally responsible lodging that follows the practices of green living. During construction even, the main goal is to ensure to preserve the natural landscape surroundings and the existing forests remain unchanged, where the disruption of nature will be kept to a minimum level.

Even the design of the hotel, inspired by the use of traditional building methods applied in surrounding areas. The unique furniture used to decorate the premises made with re-used timber by the local craftsmen who live in the nearby villages. The pieces of furniture revolve around a “natural” theme; the suites are filled with exotic seeds, spices and bark of various kinds.

Hundreds of gallons of water is consumed daily for bathing, washing, laundry etc., are natural spring-water which will be re-used by re-cycling plant to minimize the wastage of natural resources.

10 Trade, not Aid

The world needs a new way to fight poverty – one that is not only effective, but sustainable. The potential INVESTOR may have found that way with new ideas to use eco-tourism to help build capacity in poor communities in the developing world. The moneys that tourists and trekkers spend at hotel will be profit to the INVESTORS but it also will help to fight our country’s poverty and every trek you’d take, you’d be helping a community in this country which might have a better, brighter future. That’s the idea.

Further, this hotel can also create a chain of community owned by eco-lodges/ hotels along wilderness trekking routes. It would not only give eco-tourists a whole new level of comfort, it would also be built to the highest environmental standards.

All the products used in the hotel—from the food we serve to the beds you sleep on—can be sourced from the local communities and in the country where the profits that come in from the eco-tourists will help the country grow and create new development projects for better tomorrow.

What is the idea for fighting poverty..? Please use the power of eco-tourism to help change poor communities and countries that will provide a sustainable source of income and new skills to make it work.

That’s the idea. What’s yours..?, Help—Join in the cause and make it happen..!