hotel business plan presentation

Joanne Lee, Trainee Manager of Public Relations Department

Kristen Lee, Trainee Manager of Food And Beverage Department

Kelsi Shum, Trainee Manager of Guest Relations Department

Carol Wu ,Trainee Manager of Human Resources Department

CHINA EMPRESS HOTEL

Business Plan Presentation

1 CHINA EMPRESS HOTEL

Agenda 1. Vision and Mission

2. Business plan objectives

3. Products and services

4. SWOT analysis

5. Market analysis

6. Strategies

7. Contingency plan

8. Schedule of works

9. Budget plan

10. Sales Forecast

11. Conclusion

12. Q&A


Vision and Mission

Vision

To be one of the leading hotels in Hong Kong and China

Mission

To be our customers‟ home away home by offering superior

accommodation and exceptional dining experience


Products and Services




China Empress Hotel features modern facilities,

excellent cuisine, pleasant environment and whole-

hearted services, which offer our customers the

most unforgettable accommodation experience in

Hong Kong.



Full of Chinese

colour décor Home-style comfort

The best of

Cantonese cuisine

Comprehensive

business services

The unforgettable

accommodation

experience

SWOT Analysis

CHINA EMPRESS HOTEL 7

Internal Strengths

1. Staff

•Willingness to learn

•Senior staff are experienced

•Satisfactory service provided to mainland customers

Weaknesses

1. Staff

•Poor spoken English and

Putonghua of staff

•Low academic qualification

of staff

•Poor service and low

efficiency

2. Company

•Provides further training

2. Company

•Difficult in retaining staff

•Poor working condition

External Opportunity • Good prospect of the

industry

• Locational advantages

• Government support

• Economic

improvements

Threats • Keen competition with

other hotels in the same

district

• Decreasing room

occupancy rate

Main Problems


Manpower

1. Poor language skills

2. Low academic

qualification in HRD and

GRD

3. Poor working

conditions

4. Less training

opportunities

5. High staff turn over

rate

Products

1. Poor quality of food and

beverage

Services

1. Decrease in room

occupancy

2.Insufficient meeting

facilities

Industry Analysis

Target Market

Competitor analysis


Market Analysis

Size of the industry


At the end of 2010

175 hotels 60,428 rooms

619 tourist guesthouses 5,926 rooms

Source: The HKTB

Hotel Room Occupancy


The rate of hotel room occupancy is increasing by 5% from 2009 to 2010

Source: The HKTB

Compared to the same months in 2010 and 2011, the rate of hotel room occupancy was raised from 83% to 86%.

CHINA EMPRESS HOTEL 12 Source: The HKTB

Trends and Prospects


Market keeps expanding

-Potential market

-More competition

Source: The HKTB

Numbers of tourists

• In 2010, > 30 million tourists visited Hong Kong

• 2010>2009 (21.8%)

Countries

• Majority : mainland China

• The rest : South and Southeast Asia, Taiwan, Europe, Africa, the Middle East, North Asia, The Americas and Australia, New Zealand and South Pacific.

• > 50% visitors stayed in Hong Kong overnight

Expenditure

• Overnight visitors: total spending in the market of hotel bills was over HKD 25 million

• The rate of the spending in this market has been growing steadily (2005-2010)

• Compared to the total spending in the same market in 2009, the growth rate was increased by more than half in 2010.

Customers Analysis

CHINA EMPRESS HOTEL 14 Source: The HKTB


Majority : mainland China

Source: The HKTB

External Forces


It provides new source for the local market and boosts higher

demand for hotels.

Source: The HKTB

Advantages in China Hong Kong Government Support

• Stronger currencies and improved

economic condition of mainland China,

Taiwan , South Korea and India

• Expansion of Individual Visit

Scheme(IVS) in Shenzhen

•„Asia‟s World City‟

• Investment in 42 high-potential cities

in Mainland

• 70% of MICE budget to strategic

markets

Industry Analysis

Target Market

Competitor analysis

Market Analysis


Competitors

Holiday Inn Golden Mile Hong Kong

(4 stars)

Hotel Panorama by Rhombus

(4 stars)

Hyatt Regency Hong Kong, Tsim Sha Tsui

(5 stars)


Competitor Analysis - Background


• Opened in 1982

• Owned by Holiday Inn

• Holiday Inn is a brand of hotels forming part of the InterContinental Hotel Group (IHG)

• Provides Priority Club Rewards


• Opened in 2008

• Owned by Rhombus International Hotels Group

• Rhombus International Hotels Group is an owner-operated company focused on hospitality operations and consulting

Hotel Panorama

by Rhombus

• Opened on Nathan Road in 1969

• Reopened at Tsim Sha Tsui in 2009

• Owned by Hyatt Hotels Company

• Hyatt is a global hospitality company having 50 years experience.

Hyatt Regency

Hong Kong, Tsim Sha

Tsui

China Empress Hotel •Opened in 1980

•Owned by China Empress which is a multi-

national hotel and resort company.

Competitor Analysis – Location advantage


K11 art mall

Competitor Analysis - Target Customer



• International

business and leisure travellers


• International business and leisure travellers

Hyatt Regency

Hong Kong, Tsim Sha Tsui

• Upper class international business and leisure travellers

China Empress Hotel

• International business and leisure travellers

Competitor Analysis - Facilities

China

Empress

Hotel




350 rooms 612 rooms 324 rooms 381 rooms

•Swimming

pool

•Fitness

Centre

•Sky Garden

•Spa

•Sauna and

steam

•Swimming

pool

•Fitness

Centre

•Sauna and

steam

•Fitness

Centre

•Sky Garden

•Swimming

pool

•Fitness

Centre

•Sky Garden 22 CHINA EMPRESS HOTEL

Competitor Analysis – Business

services and facilities China

Empress

Hotel




•Business Centre

•Meeting rooms

•Executive floors

and suites

• Meeting rooms

•Business Centre

•Meeting rooms

•Business Centre

•A ballroom

•Meeting rooms

- Wireless internet access -Printing -Photocopying -

Facsimile

•Secretarial

support

•Secretarial

Services

•Private

Limousine

Administrative

& translation

services

Private phone

access

Secretarial

support

Correspondenc

e


Gained „Best

Business Hotel for

HK, Macau and

Guangdong‟ award

in 2009 and 2010

Gained „Best

Business Hotel in

China‟ award in

2009

Competitor Analysis - Cuisine Holiday Inn Golden Mile Hong Kong



1. Bistro on the Mile:

(international buffet)

2. Osteria Ristorante

Italiano:

(Italian specialities)

3. Loong Yuen

Cantonese

Restaurant:

(won award, voted as

one of the Hong Kong‟s

Best Restaurants)

4. Delicateseen

Corner:

(German and Austrian

dishes)

5. Hari’s at Golden

Mile:

Bar

1. Santa Lucia

Restaurant and

Sky Bar

(international food)

2. Café Express

3. Sweet Corner

1. Hugo's

A classic European

restaurant

2. The Chinese

Restaurant

a traditional 1920s tea

house.

3. Cafe

4. Chin Chin Bar

China Empress Hotel 1. The Star Café

2. The Lotus Garden

(Won„The Best

Cantonese Restaurant

in Hong Kong‟ award

in 2008 and 2009)

3. The Royal Grill

Room

24

Competitive Edge special position in the local industry

With high reputation

A more affordable price than the five-star hotels

Better quality and more comprehensive service than the three-star

ones or other tourists guesthouses.

More recreational facilities

Attractive to mainland China tourists with our fascinating

decoration in traditional Chinese style and upstanding Cantonese

cuisine


Maintain Niche Market

Language Enhancement

Business Partnership

Strategies



Maintain niche market

Our hotel aims to enhance our uniqueness

by reinforcing the niche market with a more

focused direction of development in our

products and services.


Marketing Strategy

Promotion in China

• Focuses in Guangzhou, Shenzhen, Shanghai, Beijing and Dongguan

- accounted for 52% of Hong Kong‟s mainland tourists in 2009 (HKTB)

- relatively populous and wealthy cities in China in 2010

A large number of potential customers

Shanghai Beijing Guangzhou Shenzhen Dongguan

GDP (billion RMB) 1687.2 1377.8 1060.45 950.0 424.6

Population (million) 22.21 13.82 10.25 10 6.48


Source: websites of the municipal governments of the cities

Focuses:

MICE services

seasonal promotions of food outlets

accreditation in Quality Tourism Services Scheme

Formats:

• Leaflets distributed in travel agencies

• Outdoor billboards in transportation stations and large shopping malls

• Printed advertisements in popular tourism magazines & websites



Travelling Scope Monthly circulation:320,000

Websites

Baidu and Google: the most popular searching engines used in China in 2009

Magazines


Beijing, Shanghai,

Shenzhen, Guangzhou 11 coastal

cities

6 major

central cities

3 major cities

in the west

Total

64.5% 72.4% 72.5% 71& 69.9%

25.4% 18.4% 18.1% 17% 19.8%

Source: China IntelllConsulting Corp.

Chinese National Geography

Monthly circulation:600,000

National Geographic Traveler


Traveller


Source: MeiHua Information

http://www.travellingscope.com/journal.aspx?ID=519&issueID=37

http://www.zcom.com/m/shishanglvyou/9477/

http://www.traveler.com.cn/magazine/maga_content.php?qkh=2011年03期

Sales strategy

I. Offer MICE services

• Mainland overnight business visitors:

- accounted for 11.9% (growth rate: 11.9%)

- stayed longer and spent more in Hong Kong than those for vacation

- HKTB‟s promotion of „Meetings and Exhibitions Hong Kong‟

Business overnight

tourists

Vacation overnight

tourists

Average length of stay (nights) 3 2.7

Per capita spending (HK$) 6,777 6,664



Upgrade existing facilities:

Installs LCD projector, overhead transparency projector, Whiteboard, wireless

microphones, free high speed wireless Internet access, advanced security software, net

conferencing software

Provide Various packages for different events

- offers different meal packages for customers with conferences of different lengths and

purposes

- provide discounts to customers who use our meeting rooms for two or more days to

attack organizers of large-scale events

Establish a professional MICE team

- assists in the planning, operation and follow-up of events

- include 6 staffs with multilingual-translation, IT, public

relations and event ,management skills



II. Catering services

Products:

Cantonese cuisine (Lotus Garden):

- improve quality of set lunch (survey: 63.6% not satisfactory)

- maintain good reputation with seasonal promotion

Chinese cuisine (Lotus Garden):

- introduce various choices of authentic dishes (Shanghai , Beijing, Sichuan cuisine)

- hire one new executive chef

Western cuisine (Royal Grill Garden):

- improve quality of set & menu dinner

(survey: 35.3 %& 53.2% not satisfactory respectively)

- introduce fusion dishes trendier dining experiences



Services:

Improve communication skills (verbal customer service) in both English and

Putonghua of the waiting staff in all 3 outlets

Enhance efficiency food and beverage room service

(survey: 28-34% not satisfactory)

set time limit for food delivery

Revise the appeal of food & beverage room service menu

(survey: 23-34% not satisfactory)

redesign the menu

with pictures and food description in

both Chinese & English



III. Reward scheme

HKTB 2009 visitor profile :No. of visits to Hong Kong

Holiday Inn: Priority Club Rewards

More than

once 87%

83% intended to re-visit Hong Kong 96% intended to re-visit Hong Kong

More than once

87%



Details of reward scheme:



No. of check-in Rewards

2 A $50 coupon to be used in our food outlets

3 A free buffet dinner in Lotus Garden or Royal

Grill Garden

4 or above A discount of 20% off in room rates





Strategies



Our hotel aims to upgrade service and improve

communication skills of staff by providing opportunities for

further English and Mandarin training.

Current situation


Levels of English skills of staff %

Reading and Writing:

Satisfactory

Speaking & Listening:

Marginally

satisfactory

Enhance skills


Levels of Putonghua proficiency of staff

Current situation Pronunciation: Not

satisfactory

Vocabulary : Marginally

satisfactory

Grammar : Satisfactory

%

Strategy – Language Enhancement


Outsource training program

Kaplan Corporate Training of Kaplan Hong Kong

According to the course management of Kaplan

Regular assessments: mid term and final term

( to ensure the performance of the staff)

Period: 6 months


Background

• Opened in 1938

• Large coverage in the world (> 1 million students and 31,000 employees)

Teachers Qualification

• TEFL (certificate of “Teaching English as a Foreign Language”)

• TESOL (”Teaches of English to Speakers of Other Languages” certificate)

• Grade 1 in PSC (“The National Putonghua Proficiency Test”)

Clients

• Famous in Hong Kong

• The Walt Disney Co. APAC

• Island Shangri-la HK

• Marco Polo Hotels

• Mandarin Oriental Hotel Hong Kong

•Great reputation in the market

•Professional teachers

•Teaching experience in other hotels

•Recognized and authorized

• Best choice

Highlights of the training program


English

Reading, Writing, Listening, Speaking

Professional Skills:

- Conference Calls

- Business Writing

- Effective Meeting Skills

- Negotiation Skills

- Speech and Presentation

- Teleconferencing and video conferencing

Putonghua

- Pinyin System

- Comprehensive training in listening, speaking, reading and writing

- Differences between Cantonese and Putonghua

Professional Skills:

- Business phone conversations - Company introduction

- Meeting skills

- Serving guests

- Office tour

- Professional glossary

Enhance Workplace English

Improve Putonghua

Pronunciation and spoken skills

Direction of Language Enhancement


Training Program Long Term Measures

Each department has its own training

content

PRD: Writing skills of press release

and promotional materials and skills

of holding press conferences

F&B: customer service conversation

GRD: Skill of telephone manner

• For all staff: Putonghua

Pronunciation

• Change of recruitment policy:

Recruit people with higher language

proficiency

Save training cost




Strategies


Contingency plan


Contingency plan more attractive rewards

change

Promotion in China

regular evaluation change media

F & B

evaluation from waiting staff revise menu/

promo

Business partnership

Chan

Chan Language

enhancement

Reward Scheme

regular assessment & report change

association


Schedule of Work


Milestone Start date End date Manager Department

Promotion in China 1 June 2011 1 June 2012 Chris Cheung PR

Upgrading MICE facilities 1 June 2011 1 August 2011 Jessica Fung IT

Improvement of catering

services

1 June 2011

1 December 2011

Patrick Chan F & B


- Language Test

1 June 2011

March in every

year

1 December 2011

April in every year

Raymond Chu HR

Expansion of business

partnerships

1 June 2011

1 June 2012

Zoe Yu Marketing

Schedule of Works


Budget Plan


Budget Plan Projects Estimated Annual Budget (HK$)

Promotion in China $ 820,000

Upgrading MICE facilities and services $ 1,127,000

Improvement of catering services $ 479,000


$ 947,000

Expansion of business partnerships $ 400,000

Total $ 3,773,000


Sales Forecast


From 2011 to 2012,

net profits increases

about 30 %

Conclusion


Feasible Profitable Success

Q & A Session


hotel business plan presentation

Documents

china empress hotel

industry china empress

china empress hotel

prospects china empress

china empress hotel

china mission

mainland china

rate of hotel room occupancy