les chateaux feasibility study (1).pdf

MARIANO MARCOS STATE UNIVERSITY COLLEGE OF BUSINESS, ECONOMICS AND ACCOUNTANCY

BATAC CITY, ILOCOS NORTE

In partial fulfillment of the requirements in Accounting 116

Submitted to: DR. OSCAR AGPAOA

Submitted by: VINCENT JOHN A. ALIPIO KAI-MARIE A. BARROGA JOHN ALEXIS D. ILACAD BRADLEY R. POLICARPIO MARK JOSEPH RESPICIO

BS in Accountancy IV

OCTOBER 2013

CCOONNTTEENNTTSS

1. EXECUTIVE SUMMARY

1.1 THE PROJECT

1.2 GENERAL AND SPECIFIC OBJECTIVES

1.3 LOCATION

1.4 HIGHLIGHTS

1.4.1 MARKETING PLAN

1.4.2 TECHNICAL PLAN

1.4.3 PRODUCTION AND OPERATION PLAN

1.4.4 MANAGEMENT AND ORGANIZATIONAL STRUCTURE

1.4.5 FINANCIAL ASPECT

1.4.6 SOCIO ECONOMIC ASPECT

2. PROJECT BACKGROUND AND HISTORY

2.1 DESCRIPTIVE DATA

2.1.1 SITE LOCATION

2.1.2 HOTEL FACILITIES AND ADVENTURES

2.1.2.1 ROOMS AND SUITES

2.1.2.2 RESTAURANT

2.1.2.3 FUNCTION HALL

2.1.2.4 BAR LOUNGE

2.1.2.5 TRAVEL DESK

2.1.2.6 COTTAGES

2.1.2.7 NATURAL WATER FALL, SWIMMING POOL, SPA AND SAUNA

2.1.2.8 CAMPING SITE

2.1.2.9 GARDEN

2.1.2.10 ZIPLINE, TREKKING AND WALL CLIMBING

3. ECONOMIC ASPECT

3.1 DEMAND CYCLE

3.2 MARKET SEGMENTATION

3.2.1 VACATIONERS/TOURISTS

3.2.2 TERTIARY STUDENTS

3.2.3 FAMILIES, CHILDREN AND BUSINESS MAN

3.3 SUPPLY

3.3.1 CAPACITY TO PRODUCE

3.3.2 FACTORS AFFECTING PRODUCT SUPPLY

3.3.3 SUPPLIERS

4. TECHNICAL ASPECT

4.1 THE PLAN

4.2 LOCATION

4.3 PRODUCTION PROCESS

4.4 EQUIPMENT AND MACHINERY REQUIREMENT

4.4.1 PRE-OPERATING INVESTMENT

4.4.2 EXPANSION PROGRAMS

4.4.3 OVERALL INVESTMENT

4.5 LAND AND BUILDING REQUIREMENT

4.5.1 LAND REQUIRED

4.5.2 COVERED AREA REQUIREMENT

4.5.3 ARCHITECTURAL REQUIREMENT

4.5.4 LAYOUT REQUIREMENT

4.6 HUMAN RESOURCE REQUIREMENT

4.6.1 PRE-OPERATING REQUIREMENT

4.6.2 EXPANSION PROGRAMS

4.7 OTHER COST REQUIREMENT

4.8 SANITATION AND WASTE DISPOSAL REQUIREMENT

5. MANAGEMENT ASPECT

5.1 MEMBERS OF THE AUDIT AND RISK COMMITTEE

5.2 MEMBERS OF THE RENUMERATION COMMITTEE

5.3 EXECUTIVE COMMITTEE

5.4 MANAGING DIRECTORS

5.5 HUMAN RESOURCE MANAGERS

5.6 FRONT OFFICE DEPARTMENT

5.7 FINANCE DEPARTMENT

5.8 HOUSEKEEPING DEPARTMENT

5.9 FOOD AND BEVERAGES DEPARTMENT

5.10 KITCHEN DEPARTMENT

5.11 ENGINEERING DEPARTMENT

5.12 PRODUCTION DEPARTMENT

5.13 GARDENER

5.14 SECURITY DEPARTMENT

5.15 RANGER DEPARTMENT

6. ORGANIZATIONAL STRUCTURE

7. FINANCIAL ASPECT

7.1 PROJECTED INCOME STATEMENT

7.1.1 SCHEDULES TO PROJECTED INCOME STATEMENT

7.2 PROJECTED STATEMENT OF FINANCIAL POSITION

7.3 PROJECTED CASH FLOW

7.4 GENERAL ASSUMPTIONS

7.4.1 REVENUE ASSUMPTIONS

7.4.2 COST ASSUMPTION

7.5 REVENUE COMPUTATION

7.6 FINANCIAL RATIONS

7.6.1 PROFITABILITY RATIONS

7.6.2 SOLVENCY AND LIQUIDITY RATIOS

7.6.3 PROJECT EVALUATION

8. FINANCIAL ANALYSIS

9. SOCIAL DESIRABILITY

9.1 SOURCE OF EMPLOYMENT

9.2 EMPLOYEE COMPETITIVENESS AND PROFESSIONALISM

9.3 SOURCE OF LIVING

9.4 TOURISM

9.5 ECONOMY

10. APPENDICES

APPENDIX A

APPENDIX B

APPENDIX C

APPENDIX D

APPENDIX E

APPENDIX F

11.. EEXXEECCUUTTIIVVEE SSUUMMMMAARRYY

11..11 TTHHEE PPRROOJJEECCTT

This study entitled, “Les Chateaux Mountain Resort and Adventures” had been an

answer to queries about the possible future success of Dingras Feasibility for Resort and

Adventure destination in the province of Ilocos Norte. Its goal is to establish unique Resort and

Adventure Park in the area, raising the bar of standard class of resort found in the province. In

other words, making out of the archetypical type of Resort and Adventure Park within the

province of Ilocos, where excellent service provisions and exemplary facilities could be enjoyed

at its finest.

11..22 GGEENNEERRAALL AANNDD SSPPEECCIIFFIICC OOBBJJEECCTTIIVVEESS

In general, it aims the viability and feasibility of establishing a hotel and resort, as well

as adventure parks for the people, especially for those local and foreign tourists who come and

visit the province. In specific, it aims to contribute to the growth and development of a province

in helping the economy through providing business, be the source of a place that offer tourism

services and related products, and also provide employment for people in the Dingras or it the

province of Ilocos Norte, at its larger scale.

The study will provide business that will benefit government specifically the municipality

of Dingras, the people as the customers and the entrepreneurs themselves and of course to its

stakeholders.

The study also show the management structure, its marketability, the production

facilities and products and services to offer, the financial estimates and analyses. It also

includes the social desirability, recommendations and conclusion of the business.

The proposed business will be named Les Chateaux Mountain Resort and Adventure. Its

nature is to offer hotel, restaurant and bar, functionrooms, Water Park, spa services, and

various soft and hard adventure activities to its target customers.

11..33 LLOOCCAATTIIOONN

The proposed business will be located at Barangay Capasan Dingras for the Hotel and

pool areas, Barangay Bacsil and Espiritu for the Adventure sites and other amenities where

stunning and grandeur ecological environment is observed.

11..44 HHIIGGHHLLIIGGHHTTSS

1.4.1 Marketing Plan

The Les Chateaux Mountain Resort and Adventures intends to cater a wide range of

people especially those who considers resort hopping and adventure activities as parts of their

lifestyle. Competition is inevitable in every business venture and in every economic industry

that results to a number of direct and indirect competitors of the services and products offered

by the establishment. The Les Chateaux Mountain resort and Adventures intends to charge its

services and products on the basis that the potential markets can avail while considering also

the status or quality of the services offered to them. It means we based from the most available

costs considering factors necessary to come up with the right and fair fees for the public. Cost

equates quality and satisfaction, in essence. More so, it offers services and products with vast

array of options giving the customers more choices and variations for selection. The business

will greatly make use of the social networking sites such as instagram, facebook and the like for

promotion of the business to potential markets. Also, the business can promote through the

usage of radio broadcasting and flyers, posters, etc.

1.4.2 Technical Plan

The building plan and layout were set out in accordance with the following factors:

accessibility, ease of usage, conduciveness and desirability from the customer’s perspectives.

The plan for the structure and design has been in connection with Meditterrean accent which is

out of the organic and usual type of resorts in the area. The choosing of the design was for the

purpose of introducing other flavor of resort type in the region since most of the existing

resorts are accentuated with organic sceneries, thus making it an opportunity to grab a better

chance for market persuasion to visit the place.

1.4.3 Production and Operation Plan

The building layout had been drafted to visualize the design of the establishment and

arrangement of each sector or areas of the place, both interior and exterior of the resort and

adventures. The business will construct the building to be used for its operations. Since

business waste will be at its large, mostly comprised of non-biodegradable wastes and

biodegradable kitchen throw-outs, a compose pit shall be excavated meters away from the

Resort place and for small amounts of thrashes, a throw bin to be collected by the garbage

collector may be sufficient. A production process was designed in order to better understand

what processes need to be executed in specific service transactions.

1.4.4 Management and Organizational Structure

The proposed business will be in the form of partnership and will have a starting capital

of approximately 24,000,000. This capital will be used to build hotel and other site

developments, water park, restaurant and bar, spa, and function rooms. The said capital will be

utilized in the acquisition of the tools, equipment, materials, and furniture needed.

Furthermore, it will be used for the actual operation of the business and for the

promotion during the opening of the business. After a thorough study, the researchers

projected possible problems that will arise upon the establishment of the business. After

careful evaluation, corresponding solutions was made and presented in the details of this study

which results to a conclusion that the establishment of a Resort and Adventures in Dingras is

deemed to be feasible and viable in all respects.

1.4.5 Financial Aspect

The total investment requirement is estimated at Php 23,637,063. The financing and

funding of the business will come from the joint contributions of the partners and long-term

debt financing. Financing assumptions would be 15% will come from Long-Term Debt with a

rate of 12% and 85% will be funded by the partners. Operating Income in its first year is

projected to be 1,167,808 which will gradually increase for the next year of operations. Incomes

are projected for a 5 year operations. Income realized for the 1st year will be prioritized for the

payment of the interest of the long-term debt at 12%, and beginning the 2nd year of operations

interest and installment payment will be made on the long-term debt which is intended to be

paid out for 5 years as per borrowing agreement. It is expected that during the first quarter of

the 6th year of operations, the business would fully recover the initial investment.

1.4.6 Socio Economic Aspect

The social benefits of the business include job description to the local residents in the

province as well as increasing employment rate in the province promoting self-sufficiency

among the locals. Also, gender and age development is stimulated through the various trainings

of its employees. Furthermore, infrastructures which are included in the site development of

the project will provide benefits to the society by developing and maintaining roads which will

provide easier access of transportation to the barangays in the area. Socio economic benefits

can also be derived from the taxes. The Les Chateaux Mountain Resort and Adventures pays the

government. These taxes will provide for the improvement of services offered by the

government which includes the promotion of the general welfare of the Filipino people.

22.. PPRROOJJEECCTT BBAACCKKGGRROOUUNNDD AANNDD HHIISSTTOORRYY

People around the globe would work to the bone in order to earn much money to

achieve prestige, power or to reach fulfillment. Nowadays, due to complexity in the business

world, many suffered from stress related diseases such as obesity, heart disease, diabetes and

depression. Busy people have forgotten to find time for relaxation and recreation. Indeed,

human being really need some time for leisure, refreshments and recuperation. Such things will

make them more productive and responsive to the call of their duties and responsibilities, not

only as to their professional career but also for personal and family affairs.

Resort of any kind is an excellent venue for leisure or vacation. “Resort is any place or

places with pleasant environment and atmosphere conducive to comfort, healthful relaxation

and rest, offering food, sleeping accommodation and recreational facilities to the public for a

fee. (Definition per DOT Rules on Accreditation).”

The Philippines, with its astonishing and mesmerizing tourist destinations due to its

varied attractions, has a lot to offer to local and foreign tourists. It has a wide array of

entertainment to cast a spell on its visitors with its beautiful scenic islands, exotic beaches,

amazing volcanoes, world-class diving spots and unique wildlife and many other attractions.

With resorts, they serve as accommodation to local and foreign tourists who visit our country.

In recent years, the distinction between resorts and other hospitality accommodation

has become blurred with much overlap. Instead, what has emerged is the “resort concept” that

focuses on the creation of an environment that promotes and enhances a feeling of well-being

and enjoyment which is operationalized through the provision of quality accommodations, food

and beverages, entertainment, recreational facilities, health amenities, pleasant and restful (or

exciting) surroundings, and an extremely high standard of service delivered in a friendly and

personalized manner. The resort experience can encompass a range of experiences and

property types. (Resort Planners for the Ministry of Environment, Lands and Parks. June 2006.)

The types of resorts according to its location would include Inland Beach Resort, Island

Resort, Lakeside Resort, Farm Resort, Mountain Resort and Springs. The most common type is

the Beach Resort. Most tourists prefer beach resorts because they want to experience the

exotic beaches in our country as well as to witness the beautiful sun rise and sun set views.

Ilocos Norte is one of the top tourist destinations in the country due to the presence of

many historical and natural sceneries and white sand beaches. The province of Ilocos Norte,

with 183,220 tourist arrivals in 2008, catered to majority (51.9%) of the tourists in the region in

2008. Although the influx of foreign tourists steadily declined for the past three years, Ilocos

Norte continued to be the favorite hub of foreign tourists in Region 1. This could be due to the

presence of the International Airport and tourist attractions in the province like the white

beaches of Pagudpud. A total of 20,457 foreign tourists visited the province in 2008, which

comprised majority of all foreign tourists in the region. Based on the same data set, the

province had the most number (19 out of 50) of accredited tourist establishments in the region,

consisting of resorts, tourist inns, hotels and pension/motels. The province also registered the

highest average length of stay of tourists from 2006-2008 at 1.7 days, higher than the regional

average length of stay of 1.2 days during the same period. (Department of Tourism Regional

Office 1)

With this continuous growth of tourists in the province, the investment opportunities of

putting up resorts and similar accommodation facilities will likely increase. However, this poses

big threats to existing players in the industry since competition will become tighter. Hence, the

proponents had decided to establish a unique resort that has distinct features as compared to

others.

The proponents came up to the idea of putting up a business which offer services and

provides delightful opportunity to tourists and individuals who want to experience a quiet and

peaceful living along side with mountain, appreciating the great beauty of nature. Combined

with a perfect marketing strategy, “LE CHATEAUX MOUNTAIN RESORT AND ADVENTURES” will

then be a feasible business.

22..11 DDEESSCCRRIIPPTTIIVVEE DDAATTAA

From the land where famous and known beaches totally captured the interest of most

of the people countrywide, the province of Ilocos Norte, there are also falls that hide its glory

and majesty, hibernating and waiting for its time to be discovered and be popularized. One of

the falls that it is unequivocally captivating due to its stunning height and its surrealist-

crystallized water is the Capasan Falls and the each drop of water fell with its own clarity,

making a vast splash upon the level surface below. The waterfall was a clear sky leading up to a

downpour. The drop downward was drenching, dripping, and dousing to those daring enough

to look at it. The onslaught of water was like a cascade of never-ending rain. Though, it can

seem a bit overwhelming, the view is one of the most breathtaking ever seen. Every rock

protruding out made the water grasp for something in the distance as it fell out of the sky. The

splashes emerging out of the water was steam coming off the ground. It could be reached by

walking from the access road, one of the most interesting destinations that wait for trekking

activity. The falls has a vaulting vertical stature approximately 70 feet high. The water that flows

downstream comes from the mountain, thus it has very cold and smooth water that gently

caresses the visitors whenever they take some dive after a long trek to the place. Its unique

feature that truly amazes many spectators is the cascading feature of the falls, layering three

falls that flows layer by layer, creating picturesque effect, adding to the beautiful show of water

flowing down to the basin-like stone formation that catches the water from the falls. Adding to

those features, the water from the falls was swishing over the rocks joyfully. It was thundering

down into like a gigantic water spout. When it toppled into the ecstasy-pool, it foamed it at the

bottom. The rest of the pool was as clear as cellophane, enabling us to see down into the rocky

bottom. Fronds of forest-green plants waved gently in the depths. The waterfall looked like a

sheet of bluish-green velour as it swished down. Its edges were hemmed with whipped-white

lines.

People could see many sparrows settling on the branches of those trees growing on the

place and the scene was picture perfect. A group of eluding ferns, edged with saw’s teeth and

statue still, added a tropical flavor.

To make these clandestine falls known as a tourist destination, a mountain resort and

adventures is to be establish to pool in a demand of tourist, local and foreign, and to further

enhance its picturesque beauty.

The “Les Chateaux Mountain Resort and Adventures” is designed for leisure travel and

relaxation. At the Resort, every action will made to make guests feel comfortable and relaxed.

To do so, the hotel will provide the best in services and amenities. While lodging at the resorts’

wonderful property, guests can enjoy mini bar, restaurant, family room, pool and natural water

fall. The resort and hotel will feature beautifully appointed rooms, each including air

conditioning unit, private bathroom with tub and quality sleeping paraphernalia. At the lobby of

the resort, visitors can see a shop which sells local stuffs and “pasalubongs” Throughout the

stay of customers in the resort, they can enjoy the relaxing atmosphere of the green mountain.

The “Les Chateaux Mountain Resort and Adventures”, as currently proposed, will

become annual season resort directly serving local and foreign tourist. It will also be a

responsible large-scale development project in Dingras has ever seen. All of the resort’s

facilities will be open the public, increasing the number of recreational options available to local

residents.

2.1.1 Site Location

The subject site is located in Dingras, Ilocos Norte The subject land has two particularly

compelling aspects: 1) its mountain setting with three cascading waterfalls; and 2) its

convenience to the metropolitan area. The site’s mountain setting provides unique aesthetic

advantages due to its scenic beauty and peaceful surroundings.

The following maps and master plan identify the location of the land and the

surrounding system of highways, and the local roadways in the land’s immediate vicinity.

The subject site’s proximity to Laoag City is compelling chiefly due to the economic

implications. The presence of strong connections to a city generally recognized as having one of

the highest concentrations of wealth in Ilocos Norte is particularly advantageous for the type of

resort proposed on the subject land. Under optimal traffic conditions, the subject site is located

within 30 minutes’ drive of the majority of Laoag area’s various points of origin. The location

connections to the well-developed network of highways and international airport serving the

region are just as compelling because of the vast population of tourist, students; businessmen

hold meetings, retreats and vacation at resorts.

Assumption:

Our analysis assumes that the proposed development of the land can proceed legally

and in conformance with local zoning standards. The project would seemed be permitted to

proceed as it is currently imagined. Furthermore, we assume that the land has the physical

utility sufficient to allow for the proposed project, including connections to all necessary

utilities. We also assume that the land is not limited by flood zone, seismic risks, or any other

extraordinary conditions which might otherwise necessitate elevated insurance premiums or

atypical construction and/or operating expenses. Finally, we assume that easements or

encumbrances do not bear on the development in any significant or costly manner, and that

there are no nuisances or hazards associated with the site. We are not qualified to assess these

risks, as well as those associated with soil and subsoil conditions.

2.1.2 Hotel Facilities and Adventures

The following are the proposed facilities, which are oriented around the “Les Chateaux

Mountain Resort and Adventures”:

2.1.2.1 Rooms & Suites

The accommodation of the Mountain Resort will all about the perfect tandem of

tranquility and serenity. The hotel will be of stylish, comfortable, well-furnished and air-

conditioned rooms with contemporary luxury and gracious service. The types of rooms usually

provided by resorts include presidential suite, family suite and standard (single or queen bed).

Commonly, the resort offers quality Mediterranean inspired hotel and touched with modern

style facilities that offer home comforts, and ideals for families and travelers on holidays.

Typically, local or international tourist or backpackers will stay in a room fitted with a private

toilet, bath with shower and a complete television set. All rooms are non-smoking for guest's

safety environment and enjoyment. In addition, the hotel will feature a balcony that welcomes

picturesque mountain views.

2.1.2.2 Restaurant

Food and Beverage department will occupy an integral place in the resort which plays a

vital role in the profitability of the business by providing varieties of prepared foods &

beverages in hospitable manner to the house & outside guest thus, taking dining as a notable

encounter. To accommodate the diverse groups of customers, the resort will use tables for four

that can be pushed together in spaces where there is sufficient floor area. This gives flexibility

in accommodating both small and large groups of customers. There is also movable umbrella

shades on the open dining areas (as proposed the facility will have open terrace on the first

floor besides the indoor dining hall) so that the visitors find it comfortable having meals under

the sunlight.

2.1.2.3 Function hall

The resort t has a lovely event hall good for 200 people. The event hall is lined with

windows that give you a great view of the green mountain. So visitors can party the night away

while staying in touch with nature.

2.1.2.4 Bar Lounge

The resort will feature bar lounge service that fits an adult “getaway” market niche and

night treat. The bar will be well stocked with best of spirit and wine where guests can spend

their time with gossiping watching television. The resort will be having a Music Lounge &

Weekend Disco T - Equipped with the latest sound & a Light system, the disco is for those who

are young at heart. The zeal to dance & enjoy is a welcome thought. A disco night on every

weekend will be arranged.

2.1.2.5 Travel Desk

The hotel will also have a Travel Desk, which will help visitors to gather information and

sketch a tour for visiting the tourist place.

2.1.2.6 Cottages

The Resort cottages are simple, very clean and comfortable enough without being

lavish. The Resort will be having good numbers of cottages with a refreshing mix of style

offering peace and tranquility as well as the comforts of modern day living.

2.1.2.7 Natural water fall, Swimming pool, Spa and Sauna

A swimming pool will also play an important part of the resort. The pool will be perfect

for doing laps. Kids are not left out of the action. There is part of the pool intended for kids to

splash around in. Other services include the 24-hour massage/spa service and sauna. The

Resort is also endowed with majestic natural water fall which is perfect for relaxation.

2.1.2.8 Camping Site

The resort will also position a simple camping site match with the green scenery of the

mountain perfect for individuals who are seeking outside adventure.

2.1.2.9 Garden

In the proposed project there is also a beautiful and decorated Marriage Garden and its

well kept gardens infuses a breath of fresh air and fill both young and old with vitality, which

will be provided on rent for the Marriage Purpose or Parties. The capacity of the garden will be

around 200 people with car parking capacity.

2.1.2.10 Zip line, Trekking, Wall climbing

These are becoming popular activities in resorts, found at outdoor adventure resorts.

These are the main activities distinct from other resorts.

3. EECCOONNOOMMIICC AASSPPEECCTT

Resorts are important in the economic vitality in the local region. More so, resorts

located in remote and metropolitan areas are major contributors to regional and local

economies. Moreover, with traditional industries in regional areas in decline, resort and

tourism development is an alternative for employment and a means for ‘keeping the bush

alive’.

Travel for the purpose of holiday is the most significant component of tourism demand

in Ilocos Norte, both for domestic and international travellers. Resorts are primarily in the

business of providing accommodation to holiday and leisure travellers and thus play an

important part in the province success as a holiday destination.

Finally, in many instances, resorts are located in close proximity to icons of cultural and

heritage significance and, as a consequence, have a direct involvement in natural and cultural

resource presentation. In particular, bigger resorts link in with global distribution systems to sell

their product and as such have a significant impact on profiling a given destination.

The “Les Chateaux Mountain Resort and Adventures” has been designed for the

rendering of services with the primary goal of offering the people with different amenities and

other ways for relaxation through water activities and varied entertainment facilities for guest

satisfaction. The concept of a resorts and adventures that would be very affordable to all

people of different walks of life which its facilities would be at par with the international

standards of providing recreation to the family.

Indeed, the prospects has been very optimistic on providing every guest an

"experience"- such experience to be noted as "unique" in the sense that they would feel not

only satisfied but as well as delighted every time they leave the place.

4

100

104

100

140

108

192

104

2%

50%

52%

50%

70%

54%

96%

52%

0 50 100 150 200 250

Others

Cable Car

Boating Ride

Canopy walk

Rock/Wall Climbing

Trekking

Zip Line

Indoor Waterparks/Pools

Activities Customers want to Experience in a Mountain Resort

With this in mind, the theme waterfalls hopping and water world finally became the final

concept to which gave the resort its potential image. The biggest attraction, the cascading falls

has become the centerpiece of this project.

Along with this prospective establishment of resorts and adventures, the local area

could attract people especially those local tourist and casual visitors residing nearby places

from the planned location. Based from the number of resorts available from Currimao to

Pagudpud, there are lots of resorts competing on the scale provided. However, this planned

project sets out largely different resort which stands out from the stereotypical set up of usual

resort such as having Cable Car, Trekking, etc.

The resort will include the company’s business office. The lodging cottages, hotels and

water parks will accommodate many people approximately capacities of 500, 400 and 700

respectively. The resorts and adventures will fully operationalize state-of-the-art function halls

and water ways systems. Basically, the utmost aim of this resort and adventures is to define the

“real” trill and recreation in Ilocos Norte. The overall aspect and appearance will be hygienic,

accessible, and pleasing to the customers. The demographies are favorable, with slightly

inflexible competition from other resort parks.

Majority of the respondents answered the zip line with a total of 192 respondents

followed by rock/wall climbing with 140 respondents, trekking with 108 respondents, indoor

waterparks/pools and boating ride with 104 respondents each, canopy walk and cable car with

100 respondents each also, and last with 4 respondents for others like racing area. These

responses having results of nearly equal or equal from each number of responses gathered can

be directly attributable to the fact that only a few resorts in operating in the scope area do not

have these following types of facilities.

According to the report conducted entitled, “Sunrise Analysis: Regulation of Ziplines and

Canopy Tours”, the recreational industry has adapted ziplines and elements of challenge

courses to create adventure activities primarily for thrill and entertainment (some advertise

cultural and environmental benefits) that come in a plethora of descriptions—zipline tours,

canopy tours, aerial tours, treetop courses, adventure parks, and aerial trekking. These facilities

are different from traditional challenge courses, because they are open to the public, built for

high numbers of users, and tend to be larger.” Thus, the researchers believe that incorporating

hard adventures to resort business can be another attraction to the people which could greatly

induce the growth of its viability to the public.

126

105 104

90

60

20

40

60

80

100

120

140

Spa Sauna Swimming pool

Bath house Others

Amenities Customers are Expecting in the Resort


The graph shows the response of the respondents about their expectation that would

be offered in the resort. Out of the 200 respondents, 126 of them expect that there will be Spa

as an amenity (29.23%), 105 responses for Sauna (24.36%), 104 responses for swimming pool

(24.13%), 90 responses for Bath house (20.88%), and the others which includes Jacuzzi and

Bode massage got 6 responses (1.40%).

Improving resort profitability can be done in several ways such as gaining market share,

earning customer loyalty, improving a brand’s reputation, selling more to current markets,

increasing margin, and other techniques (Reid, 1989). The management team, however, needs

to understand all guests’ needs, wants and problems. It is important for the resort industry to

understand what kinds of service amenities are significant to the guests. Therefore, doing

research in this area will contribute to knowledge and satisfaction for the need of the guests.

This information is important because service amenities are useless if the guests do not need

them.

In relation with the result of the data obtained regarding with this matter, the

researchers deduce that relaxation is the primary reason respondents gave for visiting a spa.

Pampering and stress reduction followed respectively with weight loss, health reasons and

exercise and fitness at the bottom of the list. The majority of clients are visiting spas to escape

the news and forget about the real world for a while.

172

58

117

31

95

132

020406080

100120140160180200

Facilities/Services Customers want to have in a Mountain Resort


Based from the graph above, respondents were able to determine what are the facilities

or services they want to avail in the resort, they are as follows: out of 200 respondents, 172

(28.43%) answered that they want to have restaurant in the resort, 132 (21.82%) for camping

site area, 117 (19.34%) for Mini Bar, 95 (15.70%) for Picnic Huts, 58 (9.59%) Butterfly Garden

and 31 (5.12%) for Mini Zoo.

The researchers believe that the need for restaurant in the resort is one of the basic

amenities that resort should offer because visitors especially tourists are used to settle at resort

where convenience and accessibility to food needs are available. According to LorriMealey, a

restaurant analysis, strategic location of restaurant business should be taken in consideration

where people could appease and satisfy their wants and needs. Thus, incorporating resort and

restaurant is a good match due to its supplementing and complementing industry needs for

possible markets. Most likely, visitors are looking for all-in-one destination where they could

fully their wants and enjoy their vacation.

25

18

31

15

28

0

5

10

15

20

25

30

35

Below 300 300-499 500-999 1000-1499 1500 and above

Amount Customers are Willing to Spend in Mini Bar


1 6 9 1 6 1 5 1 2 1 1 2 6 1 4 1 1

151

0

20

40

60

80

100

120

140

160

Skyd

ivin

g

Par

ks/G

ard

en

falls

Cav

e

Sou

ven

eir

Sho

p

Top

of

the

Mo

un

tain

Bld

g

Inte

rnet

Caf

é/W

ifi Z

on

e

Star

gazi

ng

Act

ivit

y

Riz

al M

on

um

ent/

Sta

tues

of …

Dan

cin

g Fo

un

tain

Fish

Po

nd

Vie

w d

eck

Ho

t Sp

rin

g

Fun

ctio

n H

all

Spo

rts

Are

a

Wel

com

e Tr

ival

Dan

ce

Fish

Sp

a

Un

dec

ided

/No

ne

Other Features Customers are Expecting to See in the Resort

Other Features Costumers are Expecting to See in the Resort

This graph presents that amount that customers are willing to spend in Mini Bar. Out of

the total respondents of 200, only 117 confirmed that they want to have a mini bar in the

resort. In detail, there different groups from the 117 respondents according to their spending

pattern or preference in a mini bar and most of the respondents would spent a budget of 500

to 999 with 31 responses, 28 respondents for 1500 and above, 25 respondents for 300 and

below, 18 respondents for 300 to 499, while 15 respondents for 1000 to 1499.

The researchers believe that those who answered that they would be willing to spend

500 to 999 are those people who belong to the 40 percent of total market, particularly these

are the student bracket while those who answered that they want to spend 1500 and above are

those people who are employed or self-employed.

According to the Competitive Landscape of Bar Industry, personal income and

entertainment needs drive demand.

191

6 30

50

100

150

200

250

YES NO UNDECIDED

Viability of the Resort to the Public

Viability of the Resort to the Public

The graph shows the answers of respondents about the question “What are some other

features customers expect to see in the resort?”. The following data shows the converted

percentage of the absolute result (refer to the graph): 75.50% for undecided/None, 4.50% for

Falls, 3.00% for Souvenir Shop, Hot Spring and Parks/Garden, 2.50% for Internet Café/Wifi

Zone, 2.00% for Sports Area, 1.00% for View Deck and Rizal Monument/Statues of Superheroes,

while others are 0.50%.

The researchers believe that amenities and other facilities are needed in a resort

business which has a direct or indirect connection to the lives of its visitors like for example to

Business Travelers who go to resort for business conferences and meetings. Business travelers

are looking for a home away from home and an office away from the office (Seo, 1997). This

concept was spreading through the resort industry to serve the needs of business travelers.

Most business travelers wanted resorts to make them feel like they are working with pleasures.

Therefore, they wanted cleanliness, comfort, safety and attentive service (Pierson, 1996). This

is primarily in the need to have an internet connection/Wifi zone in the resort to remain

connected or updated to follow-ups in the work office especially to business travelers staying

on resorts.

The graph shows the result of the question about the Viability of the Resort to the

public. Based from the graph, out of the total number of respondents, 191 answered

affirmatively while 6 responded negatively, and others are undecided.

The researchers believe that most of the responses were affirmative because they are

looking forward to these new offers that they could enjoy and avail in a totally new and

different resort that proposes distinctive amenities and facilities.

33..11 DDEEMMAANNDD CCYYCCLLEE

The following graphs shows seasons the customers are expected to visit and the days of

expected visit.

0

10

20

30

40

50

60

70

80

90

100

January-March April-June July-September October-December

Seasons costumers are expected to visit

Based to the data gathered, the most popular months for travel by tourists domestically

were April to June (Summer) garnering 95 out of 227 respondents or 41.85 % of the total

sample and during October to December (Christmas season) garnering 80 out of 227

respondents or 35.24 % of the total sample. Peak travel periods in the resort are strongly

correlated with the occurrence of summer and holidays. On the other hand, lean season include

the months of July to September garnering 18 out of 227 respondents or 7.93% of the total

sample. This is because of the fact that these months are the season of storms or wet season.

Resorts including mountain resorts are very seasonal destination with visitation heavily

concentrated in the summer months. While significant efforts have been made over the years

to build the shoulder seasons in the province, tourism is expected to continue to be a seasonal

business. The warm weather months from April- June will likely continue to be the core tourism

season for many types of tourism experiences in Ilocos Norte. While seasonality is a reality for

many tourism attractions, there are initiatives that can lessen its impact. Having the diversity of

services and amenities available on a regular basis outside the summer months to support off

peak visitation may expand to a year round destination.

0

20

40

60

80

100

120

140

160

180

Monday Tuesday Wednesday Thursday Friday Saturday Sunday

Days of Expected Visit

Day visits from the resort are also concentrated in the weekends, so initiatives and

packages that give people a reason (e.g. events) or incentive (e.g. pricing discounts) to visit

outside these times should be a key focus.

33..22 MMAARRKKEETT SSEEGGMMEENNTTAATTIIOONN

The “Les Chateaux Mountain Resort and Adventures” composing of hotel, resort(pool and

waterfalls), restaurant, function hall, different options of adventures such as wall climbing,

cable car, zip line, trekking etc will be a one of a kind that offers services to the customers that

guarantees an enjoyable experience with full satisfaction.

The “Les Chateaux Mountain Resort and Adventures” aims to cater a diverse market with a

spread range of prospective customers. More so, itsforemost objective is to make all its

customers have the best feeling to relax in a gratifying ambiance with lots of services at its

finest.

The general public, particularly the local tourists are the target market of the business

although in a segmented scope, it can be separated into the following categories:

3.2.1 Vacationers/ Tourists

The tendencies or chances that local/foreign tourists to visit the resorts park are

high since it involve largely varied facilities to offer than those resorts in the local area of

Currimao, and the proximity of the site location of the resort from local airport(s)/seaport(s)

and from nearby cities and localities as compared to Pagudpud Area. Tourist and

vacationers find great places for relaxation and distressing means where it could greatly

satisfy their needs and wants. The province had numerous of tourist visiting the local area

who can avail of themselves to spend on highly standardized resort park. Thus, this could

apparently open a big opportunity to take advantage of the future profitability of the resort

because of these markets. With the availability of this first-ever indoor waterpark and multi-

faceted resorts and adventures in the Ilocos Norte, they will opt to choice to spend the

maor portion of their income for these amenities and features.

At present, according to Xavier Ruiz of PTO, the surge consists of around 5,000 local

and international tourists who came into the province during the previous long weekend

alone (February 22 to 25 of the Year 2013).He also added that major resorts and hotels in

the province are even already at 100% occupancy as of Feb. 22, and the rest reporting 50%

and above which is still expected to climb up for the upcoming summer holidays. The

breakdown of arrivals showed an increase in the number of European tourists, particularly

Swedish and Russians and in the number of Asian tourists like Indonesians, Japanese and

Koreans. Meanwhile, the domestic movement is due to several Lakbay-Aral activities and

corporate functions by various groups across the country such as a recent national

convention of Filipino architects which resulted to a total of 400 delegates. Through the

active tourism campaign by the Provincial Government, Ilocos Norte is “likely to get the

same or even higher number of tourist arrivals” by the end of the summer season just like

last year’s 680,000—the province’s highest rise in tourist arrivals so far, Ruiz said.

“At the provincial level, the province of Ilocos Norte, with 183,220 tourist arrivals in

2008, catered to majority (51.9%) of the tourists in the region in 2008. Although the influx

of foreign tourists steadily declined for the past three years, Ilocos Norte continued to be

the favorite hub of foreign tourists in Region 1. This could be due to the presence of the

International Airport and tourist attractions in the province like the white beaches of

Pagudpud. A total of 20,457 foreign tourists visited the province in 2008, which comprised

majority of all foreign tourists in the region. Based on the same data set, the province had

the most number (19 out of 50) of accredited tourist establishments in the region,

consisting of resorts, tourist inns, hotels and pension/motels. The province also registered

the highest average length of stay of tourists from 2006-2008 at 1.7 days, higher than the

regional average length of stay of 1.2 days during the same period.”

(http://www.skyscrapercity.com/showthread.php?t=1583374&page=88)

http://www.skyscrapercity.com/showthread.php?t=1583374&page=88

Ilocos Norte52%

Ilocos Sur14%

La Union18%

Pangasinan16%

Distribution of Tourists

Ilocos Norte

Ilocos Sur

La Union

Pangasinan

"Economic indicators point out that Ilocos Norte is the leading province in terms of

tourist arrivals based on statistics compiled by the Department of Tourism (DOT) regional

office from tourist-oriented establishments, thus for 2012 we expect more tourists to arrive

in the province and we have to be ready,"

(http://www.laoagcity.gov.ph/index.php?option=com_content&view=article&id=299:provi

ncial-government-offers-free-ride-to-tourists-ofws-tourism-boom-in-2012-gov-imee-

&catid=13:news

Figure1. Percentage Distributions of Tourists by Province, Region 1, 2005-2008

Source of Data: Department of Tourism Regional Office 1

Note: Ilocos Sur, La Union and Pangasinan are indirect competitor on tourist destination at the

Regional Scope.

The survey conducted revealed that the majority of the customers of this resorts and

adventures will be the employed and self-employed individuals.

Based on the survey results the employment statuses of the respondents are follows: Of

the total of 200 respondents, 80 are students, 52 are employed, 56 are self-employed, and 12

are unemployed.

http://www.laoagcity.gov.ph/index.php?option=com_content&view=article&id=299:provincial-government-offers-free-ride-to-tourists-ofws-tourism-boom-in-2012-gov-imee-&catid=13:news




26%

28%

40%

6%

Employment Status

Employed

Self-Employed

Students

Unemployed

There are some available rationalizations of other respondents why they avail of

themselves in enjoying the resort experience, these are as follows:

For recreation moment and relaxation as well considering the hectic schedule in their

job or school activities or as a means of celebration after school year or during some

special occasions like birthday.

For family treat moments especially Filipinos are known in valuing much of their family

and relatives.

For pleasure tripping and want satisfaction

For diverting or channeling out their worries and problems in life.

3.2.2 Tertiary Students( Middle Adulthood Individuals)

Youth especially those individuals whose age range from 18-23 years old will take the

offer to enjoy the resort and its amenities and make use of the services and

accommodations mostly for a reasons of hanging out, consume the vacation periods and

breaks from school stuffs. Its amenities and features are of the great attraction of the resort

in which students at their exploration stages encourage them a lot to spend time over this

value.

11%

37%

22%

14%

16%

0%

5%

10%

15%

20%

25%

30%

35%

40%

17 years old and below

18 to 23 years old 24 to 29 years old 30 to 35 years old 36 years old and above

Age Group of Prospective Market

The graph presents the age groups of the respondents. Of the 200 respondents, 22 of them

are 17 years old and below, 74 of them are 18 to 24 years old, 44 of them are 24 to 29 years

old, 28 of them are 30 to 35 years old and 32 of them are 36 years old and above.

3.2.3 Families, Children and Business Man

There are different people with different purpose why they go to resorts, but most of

them go for fun and enjoyment. People went through heavy workloads for money such as

businessmen. They are the one who need de-stressing ways from the tensions and

pressures they get from whole day activities. Primarily, opting to go to resorts are the best

choice for them. Thus, this gives additional opportunity for this resort to become potentially

profitable.

Family-wise, it is worth time spending to stay at a resort where lots of fun and quality

times are spent and where services offered are best ways for them to seize the day under

the sun. It is the best place for a family escapade. Mostly, families will come and stay

because of those accommodative offers and affable services available at the resort where

excellent value are created and built.

33..33 SSUUPPPPLLYY

The Philippine economy has been growing steadily over decades transitioning from one

based on agriculture to one based more on services and manufacturing thus attaining its status

of being a newly industrialized country. However, the occurrence of high inflation rate subsists.

This denotes that fluctuations on the prices of goods and services offered in the market are

recurrently shifting.

“Les Chateaux Mountain Resort and Adventures” aims to negotiate and contract with

suppliers who offer lower prices in comparison with others without compromising its quality.

Proper evaluation of dealers where the supplies that are necessary in carrying-out the

operations of the hotel, which includes the restaurant, bar and other amenities, are sourced

out should be prioritized. This ensures that adequate number of supplies is attained, quality is

not traded-off and shortage in catering the demand of the customers is eliminated.

3.3.1 Capacity to Produce

The supply needed in the operation of the hotel such as food ingredients, alcoholic

drinks and commodities necessary in hotel rooms are obtained easily since production sites of

large manufacturers and business wholesalers of some of these necessities are presently

located in the province. Moreover, the degree of product visibility of these necessities in the

province is high which means that importation from other places is not necessary.

3.3.2 Factors Affecting Product Supply

Price is the main factor that affects supply. When the price of products goes down, the

higher the supply and when the price goes up, the lower the supply. This could create a

material and pervasive effect as to the supply needed in the operation of the hotel. The

occurrence of inflation only affects the hotel restaurant’s food ingredients necessary in

preparing dishes since its price is dependent on some economic factors. The supply of alcoholic

drinks that are needed in the hotel bar follows an expanded process since its purchasing price

in the market is almost consistent and stable.

Nevertheless, the occurrence of unforeseen and uncontrollable events and conditions

could impinge on the supply of the hotel’s needs. As a result, a regression in the revenue

receipts and income generating activities of the hotel are experienced.

3.3.3 Suppliers

Table 3.3.3-1 Supplier Details

BAR AND RESTAURANT

Food Ingredients

Venvi-Agro Industrial Corporation. A corporation that produces poultry and pork products. Local vegetable and fish suppliers within the province and nearby cities.

Soft drinks and Fruit Juices

Coca-cola Corporation. An American multinational beverage corporation and manufacturer, retailer and marketer of nonalcoholic beverage concentrates and syrups with bottling plant in Ilocos. Del Monte Corporation. A leading producer of

pineapple and other food products which

markets over 100 processed food and

beverage variants, including pineapple solids

(slices, tidbits, chunks), tropical mixes,

pineapple juice and mixed drinks,

Alcoholic Drinks

San Miguel Brewery, Inc. Philippines' largest business conglomerates with interests in beer production and other alcoholic beverages. San Roberto Wine Mart. A shop that offers retail and wholesale of wines and liquors.

Purified Water

Pure Water Refilling Station. A water refilling station with branches located in various parts of the province that offers purified water.

44. TTEECCHHNNIICCAALL AASSPPEECCTT

44..11 TTHHEE PPLLAANN

The proposed business is a mountainside resort and adventure with the name “Les

Chateaux Mountain Resort and Adventures”. The venture aims to develop and enrich the

clandestine beauty of Capasan, Bacsil and Espiritu waterfalls and make it a recognized tourist

attraction in the municipality and in the whole province. To realize its objective, a modern

luxury hotel equipped with numerous amenities such as restaurant, bar, spa and sauna bath

will be built near the vicinity of the falls to cater the demand for a place of tranquility and

serenity for the tourists.

To further lure in demand, a range of adventure activities will be offered to customers

such as zip line and rock climbing. Trekking and camping in close proximity to the waterfalls will

also be available.

The resort is planned to be a six-story building which will house 100 hotel rooms, a

restaurant, a bar, a spa, a souvenir shop and a function hall. However, the six-storey building

will be built in a series of expansion processes. On its first years of operation, a two-storey

building will be built with a 20 room capacity. On the business’s succeeding years of operation

wherein favorable results of revenue will be realized, two additional floors will be added to the

hotel building in which 40 hotel rooms will be added. Lastly, on its last expansion program,

another 2 additional floors with 40 hotel rooms will be built to complete the planned six-storey

building and 100 hotel rooms.

44..22 LLOOCCAATTIIOONN

“Les Chateaux Mountain Resort and Adventures” will be located at Barangay Capasan,

Dingras, Ilocos Norte.

44..33 PPRROODDUUCCTTIIOONN PPRROOCCEESSSS

Table 4.3-1 Hotel Restaurant

STEPS DESCRIPTION

Purchasing Buying of raw materials and supplies that will

be used for the operation of the business.

Receiving Receipt of purchased raw materials and

supplies.

Inspecting To secure the quality of the product and to

avoid infectivity.

Storing Storing the raw materials and supplies to

assure and maintain its quality.

Preparing Preparing all the necessary materials for

cooking and producing the restaurant dishes.

Cooking Involves equipment like gas range.

Holding In preparation for the next phase.

Plating Food is prepared for serving to customers.

Serving Distributing the food and drinks the customers

ordered.

Billing Presenting the customer its amount due.

Collecting Receiving payments of the customers.

Clearing Getting everything left on the used tables.

Cleaning Wiping of tables, arranging of chairs and

washing of used utensils.

4.3-2 Hotel Bar

STEPS DESCRIPTION

Purchasing Buying of raw materials, supplies and alcoholic

beverages that will be used for the operation

of the business.

Inspecting To secure the quality of the product and to

avoid contamination.

Storing Storing the raw materials and supplies to

assure and maintain its quality.

Preparing Preparing all the necessary materials for

mixing cocktails and alcoholic beverages.

Serving Quantitatively distributing of alcoholic drinks

the customers ordered.

Billing Presenting the customer its amount due.

Collecting Receiving payments of the customers.

Clearing Getting everything left on the used tables.

Cleaning Wiping of tables, arranging of chairs and

washing of used utensils.

44..44 EEQQUUIIPPMMEENNTT AANNDD MMAACCHHIINNEERRYY RREEQQUUIIRREEMMEENNTT

The basic requirements for the mountainside hotel include furniture and fixture,

electronics such as TV/DVD, multimedia, fridge, air conditioners, telephone and computer.

These equipments are easily and readily available in the local markets.

4.4.1 Pre-operating Investment

On the commencement of the business, the fixed investments necessary for the

operation of the hotel have a total cost of Php 7, 738,762.50. This amount comprises the costs

of 20 hotel rooms including the hotel’s amenities. The details of the fixed capital and working

capital investments are shown below:

Table 4.4.1-1 Hotel Rooms and Lobby Details ELECTRONIC DEVICES

Item Description Unit Cost Quantity Total Cost

AIR

CONDITION

PRESIDENTIAL SUITE

Php 26,298.00 2 Php 52,596.00 SAMSUNG AS12TSLN/X

1.5HP standard split

DOUBLE BED SUITE AND FAMILY SUITE

Php 22,998.00 13 Php 298,974.00 SAMSUNG Wall Mounted Split Type RAC System

ASV09ESLN

690Watts Power Consumption (Cooling)

TYPICAL ROOM (SINGLE BED)

Php 13,700.00 5 Php 68,500.00 SAMSUNG RAC Window System AW09L1B

635Watts Power consumption (Cooling)

LOBBY

Php 56,000.00 6 Php 336,000.00 SAMSUNG Inverter Cassette NS244HXBA

14.8 kj/wh Power Consumption (Cooling)

TELEVISION

SET

PRESIDENTIAL SUITE

Php 17,990.00 2 Php 35,980.00 LG 32'' 32LS3400 HD LED TV

70Watts Power Consumption

TYPICAL ROOM (SINGLE BED), DOUBLE SUITE AND

FAMILY SUITE Php 5,200.00 18 Php 93,600.00 LG 20'' E2041T Super LED Monitor


TELEPHONE ALL HOTEL ROOMS AND LOBBY

Php 510.00 38 Php 19,380.00 PANASONIC TEL KX-TS500MXB BLK

COMPUTER Acer Veriton X2611G

Php 21,500.00 2 Php 43,000.00 3.3 GHz, Intel Core i3, i3-3220, 4 GB, DDR3-SDRAM,

16 GB

CCTV

CAMERA

LIR60HF Outdoor Camera Php 3,200.00 10 Php 32,000.00

50m Weatherproof IR Camera

VS-142F Indoor Camera Php 1,600.00 15 Php 24,000.00

Dome Camera

LIGHT Light Gold and Crystal Chandelier Php 40,950.00 6 Php 245,700.00

POINT OF

SALES

TOSHIBA WILLPOS A20 Php 27,900.00 1 Php 27,900.00

Intel Core2 Duo T7400 (2.16GHz)

ROOM


BED

PRESIDENTIAL SUITE

Php 18,500.00 2 Php 37,000.00 URATEX Perfect Serenity Foam Mattress- KING SIZE

8x72x78

TYPICAL ROOM (SINGLE BED), DOUBLE BED SUITE

AND FAMILY SUITE Php 13,000.00 39 Php 507,000.00

URATEX Perfect Serenity Foam Mattress

8x48x75

PILLOW Magic Pillow Php 250.00 220 Php 55,000.00

BLANKET ALL HOTEL ROOMS Php 1,000.00 50 Php 50,000.00

LIGHTS

PRESIDENTIAL SUITE Php 3,200.00

6321-1W CHROME WALL LAMP Php 800.00 4

ML1215 RING FLOOR LAMP Php 3,300.00 4 Php 13,200.00

MT1249BK MODERN TABLE LAMP Php 1,600.00 6 Php 9,600.00

5026/8 CRYSTAL LEAF CHANDERLIER LIGHT Php 4,000.00 2 Php 8,000.00


AND FAMILY SUITE

Php 43,400.00 6316-1W MODERN WALL LAMP Php 700.00 62

MT1215-L RING TABLE LAMP Php 1,800.00 28 Php 50,400.00

6151/32W BRUSHED CEILING LAMP Php 800.00 18 Php 14,400.00

BATHROOM


SHOWER

PRESIDENTIAL SUITE Php 23,870.00 2 Php 47,740.00

Image Direct-mount Shower System D20S



WIL Exposed Bath & Shower Mono (with

handshower set)

FAUCET


AND FAMILY SUITE Php 2,590.00 18 Php 46,620.00 Modern Faucet


Cygnet Single-Hole Sensor Lavatory Faucet

BATH TUB PRESIDENTIAL SUITE

Php 12,420.00 2 Php 24,840.00 New Codie Chain Type

1500x700x420

TOWEL Bath Towel Php 740.00 150 Php 111,000.00

Face Towel Php 260.00 150 Php 39,000.00

MIRROR


Mirror Flair


AND FAMILY SUITE Php 899.75 18 Php 16,195.50 Bathroom Mirror

FURNITURE AND FIXTURES


BEDSIDE

TABLE


E1956B PRISM PROFILE END TABLE



A01 Solid Wood Night Table

DRESSER PRESIDENTIAL SUITE

Php 7,500.00 2 Php 15,000.00 A836 DRESSING TABLE WITH STOOL

CABINETS

AND

DRAWERS


MF80036 2DOOR SLIDING WARDROBE


AND FAMILY SUITE Php 9,000.00 18 Php 162,000.00 0371 2-D WARDROBE

CHAIR


SYLVIA CHAISE LOUNGE CHAIR


AND FAMILY SUITE Php 1,850.00 36 Php 66,600.00 ZANE SOLID WOOD ARMCHAIR

SOFA LOBBY/RECEIVING AREA

Php 18,000.00 3 Php 54,000.00 GAVINO CORNER SOFA

COUNTER

TABLE LOBBY Php 20,000.00 2 Php 40,000.00

TRASH BINS ALL HOTEL ROOMS Php 200.00 50 Php 10,000.00

GRAND TOTAL Php 3,136,169.50

Table 4.4.1-2 Hotel Restaurant Details ELECTRONIC DEVICES AND KITCHEN EQUIPMENT


AIR CONDITION SAMSUNG RAC Window System AW09L1B

Php 13,700.00 4 Php 54,800.00 635Watts Power consumption (Cooling)

POINT OF SALES



COMPUTER

Acer Veriton X2611G

Php 21,500.00 1 Php 21,500.00 3.3 GHz, Intel Core i3, i3-3220, 4 GB, DDR3-

SDRAM, 16 GB

TELEPHONE PANASONIC TEL KX-TS500MXB BLK Php 510.00 2 Php 1,020.00

LIGHT 5026/8 CRYSTAL LEAF CHANDERLIER LIGHT Php 4,000.00 5 Php 20,000.00

SOUND SYSTEM

Pioneer 5.1 Audio System Php 10,000.00 1 Php 10,000.00

CCTV CAMERA VS-142F Indoor Camera

Php 1,600.00 5 Php 8,000.00 Dome Camera

MICROWAVE OVEN

ELECTROLUX MWO EMS2047X Php 5,700.00 1 Php 5,700.00

7 CF Microwave Oven with Grill.

REFRIGERATOR LG GR-B207CLC Php 47,995.00 2 Php 95,990.00

FREEZER FUJIDENZO FC 22ADF

Php 31,450.00 1 Php 31,450.00 CHEST FREEZER CHILLER IN 1

BLENDER HANABISHI HJB 115 4SPD Php 728.00 2 Php 1,456.00

BREAD TOASTER

KYOWA BREAD TOASTER KW-2510 Php 398.00 2 Php 796.00

COFFEE MAKER DOWELL COFFEE BROILER CB-150SS 100C

Php 4,300.00 1 Php 4,300.00 16 Liters Capacity / 100 Cups

WATER DISPENSER

SAPOE CHV 223DC Php 5,400.00 1 Php 5,400.00

hot and cold dispenser

GAS RANGE WITH OVEN

Vulcan Endurance Gas Range Php 95,000.00 1 Php 95,000.00

10 Burners - 2 Ovens - 60-SS-10B-P



TABLE

SQUARE TABLE Php 2,400.00 15 Php 36,000.00

24X48 RECTANGLE WITH DOUBLE STAND Php 3,500.00 7 Php 24,500.00

COUNTER TABLE-MARBLE TOP Php 20,000.00 2 Php 40,000.00

LONG TABLE Php 12,500.00 2 Php 25,000.00

CHAIRS Upholstered Back Chair

Php 1,200.00 110 Php 132,000.00 18" Seat Height, 16"Wx18"D

SHELVES Restaurant Shelving - Heavy Duty

Php 5,100.00 2 Php 10,200.00 48"Wx18"Dx74"H Chrome 4 Shelf Kit

CABINET Kitchen Cabinet Php 13,000.00 2 Php 26,000.00

DRAWER CHEST

Kitchen Drawer Chest Php 28,400.00 2 Php 56,800.00

COMFORT ROOM


FAUCET Customer's Comfort Room Php 2,460.00 5 Php 12,300.00

BOWL Toilet Bowl Set Php 6,700.00 5 Php 33,500.00

MIRROR Bathroom Rectangle Mirror Php 2,300.00 3 Php 6,900.00

KITCHEN UTENSILS


GLASS Glasswares Php 150.00 500 Php 75,000.00

SPOON Stainless Steel Spoon Php 170.00 500 Php 85,000.00

Stainless Steel Serving Spoon Php 180.00 500 Php 90,000.00

FORK Stainless Steel Fork Php 170.00 400 Php 68,000.00

PLATES Ceramic Plates Php 350.00 500 Php 175,000.00

CUP Ceramic Cups Php 200.00 500 Php 100,000.00

TRAYS Service Trays Php 480.00 250 Php 120,000.00

FRYING PAN Teflon Coated Pan Php 600.00 50 Php 30,000.00

COOKWARE SET

Stainless Steel Cookware Set Php 800.00 10 Php 8,000.00

KNIFE SET Complete Knife Set Php 1,300.00 3 Php 3,900.00

BOWL Soup Bowl Php 220.00 500 Php 110,000.00

CHOPPING BOARD

Plastic Chopping Board Php 400.00 10 Php 4,000.00

MEASURING SPOONS

Plastic Measuring Spoons Php 120.00 5 Php 600.00

MEASURING CUPS

Plastic Measring Cups Php 120.00 5 Php 600.00


Table 4.4.1-3 Hotel Bar Details

ELECTRONIC DEVICES


AIR CONDITION

SAMSUNG RAC Window System AW09L1B Php 13,700.00 2 Php 27,400.00


TELEVISION SET

LG 32'' 32LS3400 HD LED TV Php 17,990.00 2 Php 35,980.00


SOUND SYSTEM





FREEZER FUJIDENZO FC 22ADF

Php 31,450.00 1 Php 31,450.00 CHEST FREEZER CHILLER IN 1

REFRIGERATOR LG GR-B207CLC Php 47,995.00 1 Php 47,995.00

BLENDER HANABISHI HJB 115 4SPD Php 728.00 2 Php 1,456.00

LIGHT 5026/8 CRYSTAL LEAF CHANDERLIER LIGHT Php 4,000.00 5 Php 20,000.00



TABLE

SQUARE TABLE Php 2,400.00 10 Php 24,000.00 20-06™ Round Bar Table Php 2,990.00 15 Php 44,850.00 COUNTER TABLE-MARBLE TOP Php 20,000.00 2 Php 40,000.00 LONG TABLE Php 12,500.00 2 Php 25,000.00

CHAIRS

Upholstered Back Chair Php 1,200.00 40 Php 48,000.00

18" Seat Height, 16"Wx18"D

B-106 BAR CHAIR Php 1,000.00 30 Php 30,000.00

37cm w | 42cm d | 110cm h

SHELVES Shelving - Heavy Duty


DISPLAY CABINET

Display Cabinet Php 10,800.00 2 Php 21,600.00

DRAWER CHEST

Drawer Chest Php 15,600.00 1 Php 15,600.00

GLASSWARES


GLASSWARES Red Wine Glasses Php 200.00 200 Php 40,000.00

White Wine Glasses Php 200.00 200 Php 40,000.00

Brandy Glasses Php 120.00 200 Php 24,000.00

Cocktail Glasses Php 120.00 200 Php 24,000.00

Collins Php 48.00 200 Php 9,600.00

High Ball Glasses Php 30.00 200 Php 6,000.00

Shot Glasses Php 20.00 200 Php 4,000.00

GRAND TOTAL Php 590,151.00

Table 4.4.1-4 Hotel Function Hall Details

ELECTRONIC DEVICES


AIR CONDITION

SAMSUNG Inverter Cassette NS244HXBA Php 56,000.00 6 Php 336,000.00


SOUND SYSTEM


CCTV CAMERA


Dome Camera


PROJECTOR TOSHIBA Projector

Php 24,900.00 2 Php 49,800.00 6000 hours Lamp Life (eco mode) 3D Ready

LIGHT Light Gold and Crystal Chandelier Php 40,950.00 4 Php 163,800.00

COMPUTER Acer Aspire

Php 15,000.00 2 Php 30,000.00 V5-431P-997B2G50Mass P997 500GB



TABLE ROUND TABLE- 8 seats Php 2,200.00 25 Php 55,000.00

LONG TABLE Php 12,500.00 10 Php 125,000.00

CHAIRS Tiffany Chairs

Php 990.00 200 Php 198,000.00 Budget Chiavari


Table 4.4.1-5 Souvenir Shop Details

ELECTRONIC DEVICES


AIR CONDITION

SAMSUNG Inverter Cassette NS244HXBA Php 56,000.00 2 Php 112,000.00


RADIO SYSTEM


CCTV CAMERA


Dome Camera

TELEPHONE PANASONIC TEL KX-TS500MXB BLK Php 510.00 1 Php 510.00

LIGHT 6151/32W BRUSHED CEILING LAMP Php 800.00 4 Php 3,200.00

COMPUTER Acer Aspire

Php 15,000.00 2 Php 30,000.00 V5-431P-997B2G50Mass P997 500GB

POINT OF SALES





SHELVES Display Shelves - Heavy Duty


COUNTER TABLE

CASHIER'S COUNTER Php 10,000.00 1 Php 10,000.00

GRAND TOTAL Php 199,210.00

Table 4.4.1-6 Hotel Amenities Details

Other Amenities Total Cost

SPA Php 150,000.00

WALL CLIMBING Php 180,000.00

CAMPING EQUIPMENT RENTALS - Camping Site Php 50,000.00

SWIMMING POOL- Adult and Kid's Pool Php 200,000.00

SAUNA Php 280,000.00

ZIPLINE EQUIPMENTS Php 290,000.00


Table 4.4.1-7 Cost Summary Details Hotel Amenities Total Cost

Hotel Rooms and Lobby Php 3,136,169.50

Hotel Restaurant Php 1,656,612.00

Hotel Bar Php 590,151.00

Function Hall Php 1,006,620.00

Souvenir Shop Php 199,210.00

Other Amenities Php 1,150,000.00


4.4.2 Expansion Programs

The business will undergo two expansion programs which will increase the hotel’s

operational capacity. On its first expansion project, 40 additional hotel rooms will be

constructed and under its second expansion program, another 40 rooms will be added to the

hotel. The additional fixed investments necessary for the operation of the hotel under each

expansion program have a total cost of Php 5,060,189.00. The details of the additional fixed

capital and working capital investments are shown below:

Table 4.4.2-1 Expansion Program Cost Details

ELECTRONIC DEVICES


AIR CONDITION

PRESIDENTIAL SUITE

Php 26,298.00 4 Php 105,192.00 SAMSUNG AS12TSLN/X

1.5HP standard split

DOUBLE BED SUITE, FAMILY SUITE

Php 22,998.00 26 Php 597,948.00 SAMSUNG Wall Mounted Split Type RAC System ASV09ESLN

690Watts Power Consumption (Cooling)

TYPICAL ROOM (SINGLE BED)

Php 13,700.00 10 Php 137,000.00 SAMSUNG RAC Window System AW09L1B


LOBBY

Php 56,000.00 12 Php 672,000.00 SAMSUNG Inverter Cassette NS244HXBA


TELEVISION SET

PRESIDENTIAL SUITE

Php 17,990.00 4 Php 71,960.00 LG 32'' 32LS3400 HD LED TV


TYPICAL ROOM (SINGLE BED), DOUBLE SUITE AND FAMILY SUITE

Php 5,200.00 36 Php 187,200.00 LG 20'' E2041T Super LED Monitor


TELEPHONE ALL HOTEL ROOMS AND LOBBY

Php 510.00 76 Php 38,760.00 PANASONIC TEL KX-TS500MXB BLK



ROOM


BED

PRESIDENTIAL SUITE

Php 18,500.00 4 Php 74,000.00 URATEX Perfect Serenity Foam Mattress- KING SIZE

8x72x78

TYPICAL ROOM (SINGLE BED), DOUBLE BED SUITE AND FAMILY SUITE

Php 13,000.00 78 Php 1,014,000.00 URATEX Perfect Serenity Foam Mattress

8x48x75

PILLOW Magic Pillow Php 250.00 220 Php 55,000.00

BLANKET ALL HOTEL ROOMS Php 1,000.00 100 Php 100,000.00

LIGHTS

PRESIDENTIAL SUITE Php 6,400.00

6321-1W CHROME WALL LAMP Php 800.00 8

ML1215 RING FLOOR LAMP Php 3,300.00 8 Php 26,400.00

MT1249BK MODERN TABLE LAMP Php 1,600.00 12 Php 19,200.00

5026/8 CRYSTAL LEAF CHANDERLIER LIGHT Php 4,000.00 4 Php 16,000.00


Php 77,000.00

6316-1W MODERN WALL LAMP Php 700.00 110

MT1215-L RING TABLE LAMP Php 1,800.00 56 Php 100,800.00

6151/32W BRUSHED CEILING LAMP Php 800.00 36 Php 28,800.00

BATHROOM


SHOWER

PRESIDENTIAL SUITE

Php 23,870.00 4 Php 95,480.00 Image Direct-mount Shower System D20S


Php 2,152.00 36 Php 77,472.00 WIL Exposed Bath & Shower Mono (with handshower set)

FAUCET

TYPICAL ROOM (SINGLE BED), DOUBLE BED SUITE AND FAMILY SUITE Php 2,590.00 36 Php 93,240.00 Modern Faucet


Cygnet Single-Hole Sensor Lavatory Faucet

BATH TUB PRESIDENTIAL SUITE

Php 12,420.00 4 Php 49,680.00 New Codie Chain Type

1500x700x420

TOWEL Bath Towel Php 740.00 300 Php 222,000.00

Face Towel Php 260.00 300 Php 78,000.00

MIRROR


Mirror Flair

TYPICAL ROOM (SINGLE BED), DOUBLE BED SUITE AND FAMILY SUITE Php 899.75 36 Php 32,391.00 Bathroom Mirror



BEDSIDE TABLE


E1956B PRISM PROFILE END TABLE

TYPICAL ROOM (SINGLE BED), DOUBLE BED SUITE AND FAMILY SUITE Php 2,950.00 53 Php 156,350.00 A01 Solid Wood Night Table

DRESSER PRESIDENTIAL SUITE

Php 7,500.00 4 Php 30,000.00 A836 DRESSING TABLE WITH STOOL

CABINETS AND

DRAWERS


MF80036 2DOOR SLIDING WARDROBE

TYPICAL ROOM (SINGLE BED), DOUBLE BED SUITE AND FAMILY SUITE Php 9,000.00 36 Php 324,000.00 0371 2-D WARDROBE

CHAIR


SYLVIA CHAISE LOUNGE CHAIR

TYPICAL ROOM (SINGLE BED), DOUBLE BED SUITE AND FAMILY SUITE Php 1,850.00 36 Php 66,600.00 ZANE SOLID WOOD ARMCHAIR

TRASH BINS ALL HOTEL ROOMS Php 200.00 80 Php 16,000.00


4.4.3 Overall Investment

“Les Chateaux Resort and Adventure” has an estimated cost of fixed investments of Php 17,

859,140.5 This amount includes the cost of the hotel rooms, restaurant, bar, spa, sauna,

function hall and all other amenities. The fixed investments needed in the expansion programs

were included in the aforementioned amount.

44..55 LLAANNDD AANNDD BBUUIILLDDIINNGG RREEQQUUIIRREEMMEENNTT

4.5.1 Land Required

The land area that will be acquired is 5 hectares with an estimated cost of Php 5,000,000

based on its current zonal value. The cost of the land includes all other expenses such as land

assessment. 10,620 m2 of the land acquired will be developed by the business and will incur an

estimated cost of Php 2, 655,000. The mentioned amount includes improvement of road access

to the hotel, improvement of trekking trails and camping sites.

Table 4.5.1-1 Land Cost Details Description Area Required Price per Area Total Cost

Land* 50,000 m2 100 Php 5,000,000

*includes cost of land assessment and other acquisition costs

Table 4.5.1-2 Site Development Cost Details

Description Area Required Construction rate per area** Total Cost

Site Development Cost* 10,620 m2 250 Php 2,655,000

*includes the development cost of access road from hi-way ** includes all costs of construction such as materials and labor.

4.5.2 Covered Area Requirement

The proposed project layout is to have a six-storey main building of 2,697 m2. Two-

storey on the commencement of the business’s operation which houses a restaurant, a bar, a

souvenir shop, a function hall and 20 hotel rooms and an additional two floors with 40 hotel

rooms under each planned expansion programs. Two gazebos and a spa will also be

constructed exclusive of the main building. The estimated cost details are as under:

4.5.2-1 Pre-operating Investment Details

Description m2

required Construction Rate/ m2* Total Cost

Function Hall, Grand Lobby, Restaurant, Bar, Swimming Pool and Souvenir Shop (First Floor)

1,876 1,750 3,283,000

Porche Arcade and Drop Off Area (First Floor) 821 1,300 1,067,300

20 Hotel Rooms (Second Floor) 1,420 2,000 2,840,000

2 Gazebos 290 850 246,500

Spa 134 500 67,000

Total Building/Covered Area Php 7,503,800

*includes the cost of materials used and direct labor

4.5.2-2 Expansion Program Details Description m

2 required Construction Rate/ m

2* Total Cost

First Expansion – 40 Hotel Rooms (Third and Fourth Floor)

2,840 2,000 5,680,000

Second Expansion – 40 Hotel Rooms (Fifth and Sixth Floor)

3,054 2,200 6,718,800



4.5.2-3 Overall Operation Details Description m

2 required Construction Rate/ m

2* Total Cost

Function Hall, Grand Lobby, Restaurant, Bar, Swimming Pool and Souvenir Shop (First Floor)

1,876 1,750 3,283,000


20 Hotel Rooms (Second Floor) 1,420 2,000 2,840,000

2 Gazebos 290 850 246,500

Spa 134 500 67,000


2,840 2,000 5,680,000


3,054 2,200 6,718,800



4.5.3 Architectural Requirement

Mediterranean revival architecture is used in the exterior design of the building with

symmetrical primary façades, stuccoed wall, wrought iron balconies and articulated door

surrounds. Keystones were also incorporated in the design with simple ornamentation. The

paradoxical design makes “Les Chateaux Mountain Resort and Adventures” unique from other

hotel and resorts in the province, thus having a sizeable advantage.

4.5.4 Layout Requirement

The interior of the Hotel Proper at its first floor has been arranged according to its

accessibility for the visitors and the most in-need sections used by them. Inside the Hotel-first

floor, the drop-off area was settled for the people to drop in and by accessing the interior lobby

of the hotel. The interior Lobby, which comprises the Porch Arcade and the front Office Section,

were fastened with highly-standardized architectural facilities for the added embellishment of

the hotel. Function hall was placed at the right wing of the Hotel. The layout of the hall sets

conduciveness for the people who intend to rent the place. It is also the most spacious area for

total capacity of most number of people. A bar is also set up at the left wing of the hotel,

adjacent to it, the Souvenir Shop, where the walls are covered with glistening glass and tiles

which complements to the design type of the building. The restaurant is also found at the

leftback wing of the building. It is intentionally adorn with aesthetically design decorations

reflecting the ambiance of a Mediterranean design, as well as incorporated also with a touch of

classique picture of European atmosphere.

The exterior of the Hotel Proper was composed with Spa, Picnic Ground, Gazebo, adult

and kiddie pools, spa and sauna booth, Sauna Bath and Pools, and the Parking Area. The

locations of the each site were set up according to its ease of access, convenience to the

customers and ease of usage. In detail of the components, the location for every site developed

area follows also the desired planned set out by the experts. The Sauna bath is found closest to

the Adult and Kiddie Pools, where the camping area can also be viewed near to the pools.

Gazebos are located nearby the borders of the area, found at the adjoining pathways towards

the Sauna Bath and Spa sections, made up in lined with the proposed design fused with the

architectural structure of archetypical Greco-Roman inspired building, to put different feature

in the place. The Sauna and Spa sections are also furnished with walls clad with beige basalt

tiles that are dramatically lit from below to accentuate patterns into the surfaces and

addendum also to the European ambiance where it can serve as a place of relaxation. Added to

the most cost benefit plan, the area is also skylight on its ceiling which will let through natural

soft light during the day and where soft breeze comes into the place through the wide windows

set placed on its walls.

The upper floors of the hotel are where the rooms are located. In each floor, there are 5

single bed suite, 9 double bed suite, 4 family suites and 2 presidential suites. The interior of

each suite are decorated to fit the Mediterranean theme of the hotel. Accentuated with

wooden fixtures, flourished with whitewashed floors and patterned tiles. A touch of modernity

is also incorporated in each room. Comfort and soothe are the main point in each room.

44..66 HHUUMMAANN RREESSOOUURRCCEE RREEQQUUIIRREEMMEENNTT

4.6.1 Pre-operating Investment

The manpower for operating the hotel and resort is as follows:

Table 4.6.1-1 Employee Salary Details Salary Grade

Employee Number of Employees

Individual Salary

Monthly Salary

Annual Salary

1

Accountant, F&B dept. and kitchen Senior Supervisor,

Production Department Supervisor

3 Php 22,500.00 Php 67,500.00 Php 810,000.00

2 Front Office Supervisor,

Executive Chef, F&B supervisor, HK Supervisor

4 Php 15,000.00 Php 60,000.00 Php 720,000.00

3 Chief cashier, Security and

Ranger Leader 4 Php 12,500.00 Php 50,000.00 Php 600,000.00

4 Cost controller, Sous chef, Chef

de rang ,senior HK 4 Php 10,000.00 Php 40,000.00 Php 480,000.00

5 Senior Laundry(1), Senior

waitress(1), commis(2) 4 Php 7,500.00 Php 30,000.00 Php 360,000.00

6

Cashier(4), receptionist(4), waitress(7), room attendant(6)

,bartender(2), ranger(2), security guard(3), staff cook(2),

laundry assistant(2), massieure(3)

35 Php 6,000.00 Php

210,000.00 Php 2,520,000.00

7 Gardener (1), adventure

operators (4) 5 Php 4,500.00 Php 22,500.00 Php 270,000.00

TOTAL PhP 5,760,000.00

4.6.2 Expansion Programs

On the undertaking of the hotel’s proposed two expansion programs, additional manpower is

required. Details are as follows:

Table 4.6.2-1 Expansion Program Details Salary Grade Employee

Number of Employees Individual Salary Monthly Salary Annual Salary

1

Accountant, F&B dept. and kitchen Senior

Supervisor, Production Department Supervisor

5 Php 22,500.00 Php 112,500.00 Php 1,350,000.00

2

Front Office Supervisor, Executive Chef, F&B

supervisor, HK Supervisor

4 Php 15,000.00 Php 60,000.00 Php 720,000.00

3

Chief cashier, Security and Ranger Leader

4 Php 12,500.00 Php 50,000.00 Php 600,000.00

4

Cost controller, Sous chef, Chef de rang

,senior HK 6 Php 10,000.00 Php 60,000.00 Php 720,000.00

5

Senior Laundry(1), Senior waitress(1),

commis(2) 4 Php 7,500.00 Php 30,000.00 Php 360,000.00

6

Cashier(4), receptionist(6),

waitress(9), room attendant(15)

,bartender(2), ranger(3), security guard(3), staff

cook(4), laundry assistant(5), massieure(3)

54 Php 6,000.00 Php 324,000.00 Php 3,888,000.00

7

Gardener (1), adventure operators (6)

7 Php 4,500.00 Php 31,500.00 Php 378,000.00

TOTAL Php 8,016,000.00

44..77 OOTTHHEERR CCOOSSTT RREEQQUUIIRREEMMEENNTT

4.7.1-1 Cost Item Description Details

Cost Item Description Total Cost

Advertising and Promotion PhP 65,000.00

Direct Labor on Cottages PhP 42,000.00

Miscellaneous PhP 32,500.00

License fees PhP 100,000.00

Research and Employee Training PhP 500,000.00

Total PhP 739,500.00

44..88 SSAANNIITTAATTIIOONN AANNDD WWAASSTTEE DDIISSPPOOSSAALL RREEQQUUIIRREEMMEENNTT

The waste from the hotel and resort will compose of biodegradable materials from

restaurant kitchen and business waste such as paper, packaging and general dry non-hazardous

waste. The business is responsible for storing and containing these wastes to ensure that it

does not cause nuisance to anyone or anything. A waste management program is to be

incorporated within the firm’s policy to guarantee the protection of public health and

environment in accordance with REPUBLIC ACT NO. 9003 (ECOLOGICAL SOLID WASTE

MANAGEMENT PROGRAM). Furthermore, pre-treatment of the waste, especially the hazardous

waste generated during the business’s operation is to done in order to reduce its

environmental impact. Utilization of environmentally-sound methods that maximize the

utilization of valuable resources and encourage resources conservation and recovery and waste

minimization measures, including composing, recycling, re-use, recovery, green charcoal

process, and others, before collection, treatment and disposal in appropriate and

environmentally-sound solid waste management facilities in accordance with ecologically

sustainable development principles are to be established within the business’s operating

environment.

55.. MMAANNAAGGEEMMEENNTT AASSPPEECCTT

The resorts and adventures will be a corporation which shall be registered under all the

incorporators and bearing all the stockholders as its owners and shall be called with a business

name “Les Chateaux Mountain Resort and Adventures”. All the incorporators shall become the

corporators of the resorts and adventures business. Furthermore, all of the corporators mean

that they are the stockholders of the said business. Also, they will also become members of the

Board of Directors who has the vested rights to manage, supervise, and govern the business.

Along with the management structure of the business, the incorporators shall also contribute

their land, labor and capital to get into the business industry.

The business shall employ personnel. It is the intention of the corporation is to provide

employment to those unemployed individuals in the region and make them functional and

operative to the society that is contributory to the objective of social empowerment. Work

responsibility shall be assigned to each employee according to their capabilities. The following

are the personnel need of the business.

55..11 MMEEMMBBEERRSS OOFF TTHHEE AAUUDDIITT AANNDD RRIISSKK CCOOMMMMIITTTTEEEE

Those individuals involved in the Audit and risk Committee are responsible for the matters

which involves risk management, internal control, audit of the financial statements, compliance

requirements, internal audit, external audit and other relevant functions including review of an

entity’s governance arrangement; performance framework; relevant parliamentary committee

reports and recommendations; and portfolio responsibilities. The following qualifications must

be met for employment in this position:

o Must be graduate of Bachelor of Science in Accountancy

o Must have be a Certified Public Accountant

o Must have 5 or more years of experience

o Must be loyal, dedicated and willing to commit to the work

55..22 MMEEMMBBEERRSS OOFF TTHHEE RREENNUUMMEERRAATTIIOONN CCOOMMMMIITTTTEEEE

The main role and function of the Remuneration Committee is to assist the Board in

developing and administering a fair and transparent procedure for setting policy on the overall

human resources strategy of the Group and the remuneration of Directors and senior

management of the Group, and for determining their remuneration packages, on the basis of

their merit, qualifications, and competence, and having regard to the Company's operating

results, individual performance, and comparable market statistics.

o Have a Management degree

o Knowledgeable and willing to commit

o Reliable, honest, determined, loyal, gratifying personality, hardworking and disciplined

55..33 EEXXEECCUUTTIIVVEE CCOOMMMMIITTTTEEEE

The Committee has the following delegated responsibilities:

o To consider and recommend for approval by the Council the Association’s medium to

long-term strategy, with particular reference to the integrated planning of the human,

physical and financial resources required to achieve the proposed strategic objectives.

o To ensure that the consideration of matters and decisions relating to strategy,

performance and resources are consistent with the Association’s wish to promote

equality and eliminate discrimination.

o To keep a watchful eye, and be prepared to advise, on the implementation of the

medium to long-term strategy approved by the Council.

o To approve and recommend to the Council the Association’s annual revenue and capital

budgets, in order to achieve the objectives of the approved strategy.

o To ensure the implementation of the approved budgets, including the monitoring of

performance against budgets.

o To consider, approve and keep under review the method by which resources are

allocated within the Association and to receive regular reports from the Secretary

General on these matters.

o To receive the annual accounts for the Association and recommend their approval to

the Council.

o To keep under review the performance of the Association and to oversee the

implementation of mechanisms required to measure performance.

o To be a point of reference and advice about the overall day-to-day business of the

Association whilst maintaining the appropriate balance between implementation of

policy and the responsibilities of executive management.

o To reflect in its decisions the risk strategy and risk management processes approved by

the Audit and Risk Committee.

o To have regard in its decisions to the responsibilities of the Council as trustees.

o To consider and determine such other matters as may be delegated or referred to it by

the Council.

o To report to each meeting of the Council on the work it has undertaken on the Council’s

behalf.

o For the efficient running of the affairs of the Association, Council should delegate, until

its next meeting or further resolution by the Council, all of its powers to the Executive

Committee except those of:

• Electing the Association’s office bearers

• Appointing members of the Executive Committee (other than filling of casual

vacancies)

• • Amending the Charter and Statutes and making and amending Bye-Laws

The members of the executive committee must meet the following

qualifications for the said position:



o Reliable, honest, determined, loyal, gratifying personality, hardworking and discipline.

55..44 MMAANNAAGGIINNGG DDIIRREECCTTOORRSS

The managing Directors are responsible for the overall management of the staff,

finances, projects and initiatives to improve process for each departments of the resort. There

are responsible for supervising, coordinating and organizing all business activities. They work

out on any problem that may arise and finds solutions to solve the said problems. The

Managing directors hold auxiliary authority over the operation and usually reports directly to

their immediate supervisors or to a corporate officer. They must have the following

qualifications:



o Reliable, Devoted, loyal, gratifying personality, hardworking, well disciplined, dedicated

55..55 HHUUMMAANN RREESSOOUURRCCEE MMAANNAAGGEERRSS

A Human Resource Manager is responsible for the overall work performance of the

office environment. He is responsible for the flow of information within the company. He

provides training and development of the staff within their assigned areas. He develops and

implements personnel rules and regulations and establishes collaborative relationships with the

various departmental areas of the organization. Also, he ensures that human and material

resources are correctly utilized.


o Excellent communication and interpersonal skills

o Knowledge of the labor law

o Excellent communication skills (written, verbal, listening)

o Exceptional energy, flexibility and professionalism



55..66 FFRROONNTT OOFFFFIICCEE DDEEPPAARRTTMMEENNTT

5.6.1 FRONT OFFICE SUPERVISOR

The Front Office Supervisor are the ones to take hold of the supervision of the

activities, movements, and operations in the Front Office Department. They should be

aware of the workflows of its department personnel. In detail, The Front Office Supervisor’s

function is to maintain the smooth operations of the Front Office and assist in leading the

Front Office team in providing exceptional guest service while possessing a positive and

productive approach to the work day, and always setting the example for the team to

follow. The supervisor will assist the Front Office manager to guide, direct, organize and

develop the team; appraise performance, reward team members and provide corrective

action when necessary; assist in conducting effective meetings; assist with scheduling and

payroll. The supervisor will act as the guest advocate – anticipating needs, problem solving;

assist the Front Desk Agents as required with check-ins, check-outs, switchboard,

reservations and provide relief on the desk as needed; provides professional service to

guests and fellow associates.

There are following standards that it must be met for the position. These are as follows”

o Hospitality Management diploma

o Minimum two years experience as a Guest Service Agent

o Minimum one year experience of Front Office Supervisory/Management experience

preferred

o Fluent in English, both verbal and written



o Demonstrated ability to modify, and understand financial information, data and basic

arithmetic functions

o Ability to handle cash accurately (Bondable)

o Possess coaching skills and is able to influence team members towards the company’s

goals

o Ability to handle problems in the workplace, including anticipating, preventing,

identifying and solving problems as necessary

o Computer skills - A demonstrated high level of understanding of current forms of

technology and its applications

o Hospitality Management diploma

o Minimum two-year experience as a Guest Service Agent

o Minimum one year experience of Front Office Supervisory/Management experience

preferred

o Fluent in English, both verbal and written



o Demonstrated ability to modify, and understand financial information, data and basic

arithmetic functions

o Ability to handle cash accurately (Bondable)

o Possess coaching skills and is able to influence team members towards the company’s

goals

o Ability to handle problems in the workplace, including anticipating, preventing,

identifying and solving problems as necessary

o Computer skills - A demonstrated high level of understanding of current forms of

technology and its applications

o Exceptional customer service skills.

5.6.2 RECEPTIONIST

The Receptionist are the once who Provide office support services in order to ensure

efficiency and effectiveness within the Office, maintain the general filing system and file all

correspondence, perform clerical duties in order to maintain Hamlet administration,

performs receptionist functions, support the Executive Director and other staff, perform

other related duties as required. In other words, a receptionist is a person who takes an

office or administrative support position in a company or organization. Some of the roles of

a receptionist are ensuring that all the callers and customers are taken care of and a good

business image is portrayed to the public. The receptionist should also be aware of the

conduct of staff and customers who frequent the reception area.

There are qualifications that must be attained for the position and these are as follows:

o Well versed in managing multiple line phone system and handling multiple incoming

calls

o In-depth knowledge of directing visitors to the right person

o Committed to provide exceptional customer service to clients and coworkers

o Excellent knowledge of administrative and clerical procedures

o Adept at giving accurate and detailed information to visitors and callers

o Able to handle difficult clients tactfully

o Exceptional knowledge of computers and relevant software applications

o Demonstrated capability of updating appointment calendars, schedules and maintaining

conference rooms

o Proven record of performing clerical duties such as scanning, photocopying and collating

o Thorough understanding of monitoring visitors’ access and issuing passes

o Extremely capable of keeping reception area clean and organized

o Expert in ordering, receiving and maintaining office supplies

55..77 FFIINNAANNCCEE DDEEPPAARRTTMMEENNTT

5.7.1 ACCOUNTANT

An accountant prepares and directs the preparation of audits, financial statements and

varied fiscal reports. He reviews and recommends modifications to accounting systems and

procedures. He posts data to various ledgers, registers, journals and logs following

established accounting techniques and procedures.

o Have an Accounting degree


o Excellent Computer skills

5.7.2 CASHIER

A Cashier maintains the orderliness of the counter. He is responsible to accepts

payments of the services promptly, gives the customers the right services by their good

conduct and personality through being polite. Moreover, there are also more important

responsibilities of cashiers. These are as follows:

o The first duty of cashier is to greet the customers entering into organization

o Handling all the cash transaction of an organization

o Receive payment by cash, cheques, credit card etc

o Checking daily cash accounts

o Guiding and solving queries of customer

o Providing training and assistance to new joined cashier

o Maintaining monthly, weekly and daily report of transactions

There are set standards for the employment for the position of a Cashier and these are as

follows:

o Graduate of any business course and has a background in accounting, and has the ability

to handle the money.

o Honest and truthful

5.7.3 COST CONTROLLER

A cost controller monitors the financial progress of a project, computes operating fixed and

variable costs and compares such costs to budgets. Comparing budget amounts to actual

expenses is an accounting function that helps senior management adjust project costs while

work is still in progress. This procedure is also called variance analysis. A cost controller typically

reports periodic financial statements to a company's finance chief and ensures that accounting

procedures and systems are adequate and functional.

A cost controller must or may holds a four-year college in accounting, business or tax. A

controller also may hold a master's degree in a business field. Postgraduate cost accounting

(also called managerial accounting) degrees are common among cost controllers. A cost

controller also may hold a certified public accountant (CPA), a certified management

accountant (CMA) or a certified financial manager (CFM) designation. A state accounting board

issues a CPA license; the Institute of Management Accountants (IMA) administers the CMA and

CFM designations.

55..88 HHOOUUSSKKEEEEPPIINNGG DDEEPPAARRTTMMEENNTT

5.8.1 HOUSEKEEPING SUPERVISOR

The Housekeeping Supervisor is responsible for the direction of the Housekeeping Staff

in maintaining sanitation of the facility for the health, comfort and safety of Residents, staff and

visitors. These services are consistent with the Home's standards and philosophy and are in

compliance with all regulations, codes, policies and procedures that govern the facility.

There are following qualifications for the Housekeeping Supervisor position.

o No licensure/certification requirements.

o High school education or equivalent.

o Speak and understand spoken and written English.

o Thorough knowledge of institutional cleaning, procedures.

o Two years of Supervisory experience in the Housekeeping profession, preferably in

the health care setting.

o Must have a basic understanding of the special needs and problems affecting the

elderly.

o Possess the ability to perform the *essential job functions with or without

reasonable accommodations.

5.8.2 SENIOR HOUSEKEEPING SUPERVISOR

The Senior Housekeeping Supervisor will be the ones to assist the Housekeeping

Manager in leading the housekeeping team, help the staff to provide 3 Diamond Service to all

guests, ensure that all guest rooms and guest areas are clean according to Preferred Standards,

and supervise the daily tasks of the housekeepers / house person, responsible for supervising

the turndown attendants, conducting monthly inventories, and assisting the Housekeeping

Manager with additional projects for the betterment of the property.

There following qualifications of this job is set below:

o Must ensure that all details of the guest rooms are held according to our

Preferred Standards, including but not limited to linens, towels, carpet, tile,

walls, glass and appliances, and furnishings.

o Two years of prior experience in housekeeping is preferred.

o Must be able to work in a high paced environment without compromising

attention to detail.

o Ability to lift and carry 50 pounds for 100 yards.

o Ability to make quick decisions and posses good judgment.

o Must be able to walk / stand for extended period.

o Must be able to assist guests with any challenges to create a positive and

memorable experience.

o Good listening skills required.

o Good interpersonal skills required.

o Ability to work well with a team and individually without constant supervision.

o Ability to multi-task in a very high paced environment.

o Ability to remain calm and professional at all times.

o Impeccable attention to detail.

o Excellent organizational skills.

o Exceptional Management time skills.

o Must be knowledgeable of all in-house events and resort activities.

o Report all safety hazards and suspicious activities to Manager.

o Know and understand all safety procedures and expectations as well as know

their role in an emergency event.

o Solid understanding of the different operations of the department as well as

interdepartmental communication with Engineering, Food and Beverage, and

the Front Desk.

5.8.3 SENIOR LAUNDRY ATTENDANT

The Senior Laundry Attendant is responsible for the assisting the Laundry Attendants for

the work functions, help them for the smooth flow of the operations in the laundry activities,

ensure that the laundry activities are settled and well-kept, and supervise the daily task of the

personnel involved in the department.

The following qualifications for this position are as follows:

o High School diploma / GED preferred

o Able to provide housekeeping and laundry services in a resident centered

environment, which meets and/or exceeds Sunrise's quality standards

o Ability to handle multiple priorities

o Possess written and verbal skills for effective communication

o Competent in organizational, time management skills

o Demonstrates good judgment, problem solving and decision making skills

o Ability to work semi-independently without direct supervision by following all

community procedures and guidelines and having the ability to follow through

on assigned tasks, and demonstrates initiative

o 5 year experience in Housekeeping

5.8.4 LAUNDRY ATTENDANT

The Laundry Attendant is responsible for performing laundry functions in order to create a

safe, secure and inviting environment for residents, families and team members while meeting

and exceeding Sunrise quality service standards. Such responsibilities include the Collecting,

cleaning and redistributing the community laundry and resident clothing, properly sorting,

washing and drying linens and resident clothing following the approved laundry procedures,

transporting supplies to include clean and soiled linen to the appropriate storage and collection

areas, folding, counting and stacking linens following approved laundry procedures, routinely

inspecting linens for wear and tear, identifying worn and torn linens and following the

community's Standard Operating Procedure for damaged linens, maintaining the commercial

and residential laundry rooms in a clean, orderly and sanitary condition

The following qualifications are set below for the position aforementioned.

o High School diploma / GED preferred

o Able to provide housekeeping and laundry services in a resident centered

environment, which meets and/or exceeds Sunrise's quality standards

o Ability to handle multiple priorities

o Possess written and verbal skills for effective communication

o Competent in organizational, time management skills

o Demonstrates good judgment, problem solving and decision making skills

o Ability to work semi-independently without direct supervision by following all

community procedures and guidelines and having the ability to follow through

on assigned tasks, and demonstrates initiative

55..99 FFOOOODD AANNDD BBEEVVEERRAAGGEESS DDEEPPAARRTTMMEENNTT

5.9.1 SENIOR SUPERVISOR

The Senior Supervisor of the Food and Beverage Department has the responsibility to

ensure service delivery at every point of sale in the Food and Beverage Department. He or she

therefore supervises and co-ordinates the Food and Beverage Department. Also, they are the

ones to ensure that the customer promise is delivered and that customers are satisfied within

the framework of financial targets set, to ensure that guests receive high quality service, to

ensure that the applicable regulations are complied with, to be responsible for his or her own

results, to optimize the supply chain and the use made of raw materials.

There are also qualifications for the Senior Supervisor position and these are as follows:

o Team management, leadership & team player

o A liking for organizational work

o Effective management: delivering profit center profitability

o Sales ability

o Adaptability: coping with the diversity of customers and their needs

o Thoroughness

o Sensitivity to customers: good relationship skills

o Spirit of initiative

o Financial awareness

o Qualifications

o A-levels (professional) in service-related subjects

o Significant food and beverage experience (5 years)

o Experience of working in positions of high responsibility in the hotel or food and

beverage sectors and managing teams of at least 20 staff

5.9.2 SUPERVISOR

The Senior Supervisor of the Food and Beverages Department is responsible to

implement the consistent delivery of superior customer service through the Customer Service

Program, to ensure that the department creates a professional impression to customers and

team members, to participate with action on Customer Service Reports relevant to your

department to achieve positive and consistent results, to act on customer feedback relevant to

your areas of responsibility, this to include customer complaints and compliments, to be aware

of budgeted and actual departmental targets. This to include sales, covers, stocks levels and

departmental profits, to assist with the control and monitor payroll costs by ensuring rotes are

compiled in line with forecasted and actual business levels, using company productivity ratios

and payroll management, to be aware of and assist with the control of departmental operating

costs in line with forecasted business levels, to maximize opportunities for departmental sales

and profit and other related targets.

These are the qualification for the position:

o Minimum 2 years previous experience as a food & beverage supervisor

o Safe Food Handler Certified

o Smart Service Certified

o Able to work independently

o Ability to work under pressure, prioritize tasks, and meet deadlines

o Excellent organizational skills

o Must possess effective oral and written communication skills

o Must be able to work flexible hours including evenings, weekends and holidays

o Intermediate computer skills

o Team player

5.9.3 SENIOR WAITRESS

The Senior Waitress is responsible to organize the services offered to diners and ensure

the quality of those services. Moreover, they are also expected to welcome and seat diners,

advising each on their choice of food and wine and taking their order, to organize and manage

their team: organizing their work and training new staff members recruited, to organize the

layout of the dining room to create a warm and welcoming atmosphere, to co-ordinate with the

kitchen, to ensure that his or her team offers the highest level of service in the welcome it

extends to its customers and the way its serves their meals, to ensure that customers are

satisfied with the service they receive, to promote customer loyalty through the quality of

service provided, to ensure health and safety rules are complied with, to manage stocks, to

ensure the continuity of the equipment supplied for his or her use,

o Sales ability

o The ability to listen: detecting and anticipating needs

o Hospitality

o Attention to detail

o In depth knowledge of wine

o Teaching skills: staff training

o Thoroughness: multi-skilled

o Team Leadership

o Organization

o Good relationship skills: being responsible for welcoming diners

o Good physical and mental resilience

o Availability

o City & Guilds to 2 years’ further education to HND level or similar standard in hotel/food

and beverage studies

o Significant experience in the food and beverage industry, especially in dining room

service (415*)

o Excellent knowledge of food and wine

o Must be fluent in the English and ideally have a good working knowledge of French

o Good general level of education

5.9.4 WAITERS/WAITRESSES

To undertake the following tasks:

o Arranging the dining room

o Welcoming and serving Restaurant guest

o Tidying the dining room after meal service

The Waiter forms the continuous link between the kitchen and the dining room.

Furthermore, they will be responsible to ensure the guests receive high quality services and

service provision and to ensure that health and safety and procedures are respected. And the

following qualifications for this position are:

o Hygiene

o Storage

o Politeness

o Team working

o Sales ability

o The ability to listen: understanding how to detect customer needs



o Physical and mental resilience

o Thoroughness

o Organization: multi-skilled

o Adaptability/reactivity

55..1100 KKIITTCCHHEENN DDEEPPAARRTTMMEENNTT

5.10.1 EXECUTIVE CHEF

The executive chef will train and manage kitchen personnel and supervise/coordinate all

related culinary activities; estimate food consumption and requisition or purchase food; select

and develop recipes; standardize production recipes to ensure consistent quality; establish

presentation technique and quality standards; plan and price menus; ensure proper equipment

operation/maintenance; and ensure proper safety and sanitation in kitchen. The executive chef

may cook selected items or for select occasions. The executive chef may oversee special

catering events and may also offer culinary instruction and/or demonstrate culinary techniques.

The executive chef directly supervises kitchen personnel with responsibility for hiring,

discipline, performance reviews and initiating pay increases. Typically reports to a food service

director.

The following are the qualifications for the Executive chef Position.

o Minimum Work Experience: Three years as a Chef de Cuisine, Executive Sous

Chef or chef in charge of food production in a foodservice operation. Must have

supervised at least three fulltime people in the preparation of food. Experience

must be within the past 10 years.

o should have completed a 4-year degree program in culinary arts

5.10.2 SOUS CHEF

Sous Chefs are the ones responsible in running the kitchen when the head chef is away,

ensuring your brigade has high culinary standards, managing food purchasing and storage,

maintaining a safe and hygienic kitchen environment, helping create new recipes and write

menus

The following are the qualifications for the position:

o City & Guilds diplomas in professional cookery

o BTEC HND in professional cookery

o A foundation degree in culinary arts

o Health and safety and food hygiene certificates

5.10.3 CHEF DE RANG

To organize and co-ordinate the following tasks together with his or her team:

o Arranging the tables

o Welcoming and serving the guests

o Clears the tables

There are also key responsibilities of Chef de Rang which includes the supervision the

quality of the services offered to customers, the training and motivating the dining room

assistants and apprentices for which he or she is responsible.to look after customer

billing and tills. And the following qualifications for this position are:

o The ability to ensure efficient, high quality service with apparent ease and

assurance


o Team working

o Sales ability

o Excellent communicator

o IT knowledge i.e. Point of Sale

o Good relationship skills

o Discretion

o Team leadership


5.10.4 COMMIS CHEF

Commis chef is a junior or apprentice chef, and is assigned to different sections of

the kitchen for a specific duration. The commis chef works under specialty cooks and learns

about food preparation and plating. The experience is invaluable, as it helps them to learn

and handle the pace, pressure, and demands of a kitchen.

The following are the qualifications for this position:

o City and Guilds/ ASET: Level 2 Diploma in Professional Cookery.

o BTEC: HND in Professional Cookery.

o Foundation Degree in Culinary Arts Management

o Working quickly and efficiently. Time is of the essence in a busy kitchen; there is

never enough to waste.

o Attention to detail. Food is a delicate matter; if you make a mistake the dish may

have to be discarded.

o Ability to work under pressure. When service fills up and the pressure is on, it is

crucial that everyone performs to their best.

o Ability to learn on your feet. You must absorb your lessons and put them into

practice right away. The more quickly you can do this the faster you will

progress.

5.10.5 STAFF COOK

Being a cook is a responsible position as a cook has to maintain health standards and

has to ensure that safety conditions in the food cooking areas are perfect. The utensils

and vegetables have to be properly washed so that food borne diseases are avoided.

Proper cooking methods are also important for ensuring that proteins and vitamins are

not lost due to over cooking. Cooks have to organize staff schedule, manage various

orders simultaneously, multitask, plan menu and ensure that cooking activities are

carried out effectively. Cooks are also responsible for promoting positive work

environment and coordinate staff activities.

o Working quickly and efficiently. Time is of the essence in a busy kitchen;

there is never enough to waste.

o Attention to detail. Food is a delicate matter; if you make a mistake the

dish may have to be discarded.

o Ability to work under pressure. When service fills up and the pressure is

on, it is crucial that everyone performs to their best.

o Ability to learn on your feet. You must absorb your lessons and put them

into practice right away. The more quickly you can do this the faster you

will progress.

55..1111 EENNGGIINNEEEERRIINNGG DDEEPPAARRTTMMEENNTT

5.11.1 MAINTENANCE

In charge of building maintenance operation, custodial care, room setups, fire and

safety programs, and equipment inventory control. In small unions this position may be

combined with that of business manager or assistant director for business or operations. Also,

he must have the ability to supervise a variety of personnel actions and direct a work force to

ensure the facility is maintained in a clean and orderly manner, appreciation of special needs of

union users, flexibility to adjust to changing schedules, some knowledge of techniques and

crafts involved in preventive maintenance, housekeeping, and construction, open to new ideas

and adaptable to changing technology.

The following job qualifications must be met for the position:

o At least three years of successful supervisory experience, preferably in a construction or

facility maintenance position.

o Bachelor’s degree in engineering or business management is desirable although

significant experience and special training may be acceptable in lieu of a degree.

o Communication, Facilities Management, Human Resource Development

55..1122 PPRROODDUUCCTTIIOONN DDEEPPAARRTTMMEENNTT

5.12.1 BAR & SPA

5.12.1.1 CASHIER

A Cashier maintains the orderliness of the counter. He is responsible to accepts

payments of the services promptly, gives the customers the right services by their good

conduct and personality through being polite. Moreover, there are also more important

responsibilities of cashiers. These are as follows:

o The first duty of cashier is to greet the customers entering into organization







There are set standards for the employment for the position of a Cashier and these

are as follows:

o Graduate of any business course and has a background in accounting, and has

the ability to handle the money.


5.12.1.2 WAITERS/WAITRESSES

To undertake the following tasks:

o Arranging the dining room

o Welcoming and serving Restaurant guest

o Tidying the dining room after meal service

The Waiter forms the continuous link between the kitchen and the dining room.

Furthermore, they will be responsible to ensure the guests receive high quality services

and service provision and to ensure that health and safety and procedures are

respected. And the following qualifications for this position are:

o Hygiene

o Storage

o Politeness

o Team working

o Sales ability

o The ability to listen: understanding how to detect customer needs




o Thoroughness

o Organization: multi-skilled

o Adaptability/reactivity

5.12.1.3 MASSAGE THERAPIST

Spa Massage therapists evaluate clients by conducting various motion and

muscle testing and suggest treatment plans. They ought to have a comprehensive

knowledge of various massage modalities, posses a common understanding of body

treatments and be eager to train in spa’s specific massage and body healing offerings.

They ought to possess outstanding communication skills and be able to learn the

product and service awareness essential to efficiently give wellness solutions to meet

the needs of guests. They have to hold and maintain a current license. The following are

the qualifications for the said position:

o Team player

o Have an enthusiasm and possess superb customer service skills

o Take pleasure in working with people and have a welcoming and outgoing

personality

o Must hold and maintain a current state of employment license

o Outstanding communication and listening skills, in addition to basic computer

knowledge

5.12.1.4 BARTENDER

The Bartender is tasked to:Welcome and advise customers, Prepare and serve

drinks and cocktails, take responsibility for the organization of the bar, charge

customers for their drinks, accept the corresponding payments and manage bar stocks

and supplies. Along with the foregoing responsibilities are, to ensure service and

product quality, to ensure the continuity of the equipment supplied for his or her use, to

look after customer billing and stock of cash, to ensure that the bar is clean properly

equipped, to look after bar customers,

The following are the qualifications for this position:

o Knowledge of alcoholic drinks and cocktail recipes

o Complete knowledge of health and safety rules

o Stock management abilities

o Sales ability

o Dexterity and speed

o Good relationship skills

o Listening skills


o Teaching skills

o Reactivity: handling every kind of situation

o Thoroughness

o City & Guilds, NVQ2 (Vocational Training Certificate) in restaurant, hotel or food

and beverage studies

o Significant experience will be require for the post of Head Barman

o Good general level of education

5.12.2 FUNCTION HALL

5.12.2.1 RECEPTIONIST

The Receptionist are the once who Provide office support services in

order to ensure efficiency and effectiveness within the Office, maintain the

general filing system and file all correspondence, perform clerical duties in order

to maintain Hamlet administration, performs receptionist functions, support the

Executive Director and other staff, perform other related duties as required. In

other words, a receptionist is a person who takes an office or administrative

support position in a company or organization. Some of the roles of a

receptionist are ensuring that all the callers and customers are taken care of and

a good business image is portrayed to the public. The receptionist should also be

aware of the conduct of staff and customers who frequent the reception area.

There are qualifications that must be attained for the position and these

are as follows:

o Well versed in managing multiple line phone system and handling multiple

incoming calls

o In-depth knowledge of directing visitors to the right person

o Committed to provide exceptional customer service to clients and

coworkers

o Excellent knowledge of administrative and clerical procedures

o Adept at giving accurate and detailed information to visitors and callers

o Able to handle difficult clients tactfully

o Exceptional knowledge of computers and relevant software applications

o Demonstrated capability of updating appointment calendars, schedules

and maintaining conference rooms

o Proven record of performing clerical duties such as scanning,

photocopying and collating

o Thorough understanding of monitoring visitors’ access and issuing passes

o Extremely capable of keeping reception area clean and organized

o Expert in ordering, receiving and maintaining office supplies

5.12.2.2 SOUND SYSTEM OPERATOR

A Sound System Operator must possess a bachelor’s degree in sound

design or a related field of study, has a substantial knowledge of sound

techniques and technology, also understands various occupational-related

electronics and computer knowledge and has a work experience as an operator.

5.12.3 ADVENTURES

5.12.3.1 CASHIER

A Cashier maintains the orderliness of the counter. He is responsible to

accepts payments of the services promptly, gives the customers the right services by

their good conduct and personality through being polite. Moreover, there are also

more important responsibilities of cashiers. These are as follows:

o The first duty of cashier is to greet the customers entering into

organization







There are set standards for the employment for the position of a Cashier and

these are as follows:

o Graduate of any business course and has a background in accounting, and

has the ability to handle the money.


5.12.3.2 RIDE OPERATORS

They are the employees who make sure that patrons or riders in every

station have safe and fun rides. They are also responsible for keeping

workstations and surrounding areas clean and maintained.

o At least 18 years and above

o Pleasing personality

o Friendly and outgoing, and demonstrate the ability to work with people of all

ages and different backgrounds.

55..1133 GGAARRDDEENNEERR

5.13.1 SENIOR GARDENER

The responsibilities of Senior Gardener may include, but are not limited to, the

following: lead and participate in landscaping and irrigation activities such as the

techniques and methods of maintaining plants, shrubs, lawns, athletic surfaces and

irrigation systems, and other assigned areas; perform the most skilled or complex

duties; operate and maintain a variety of hand and power landscaping tools and

equipment used in landscaping and irrigations systems; secure worksites from traffic

hazards as necessary; monitor work in progress at the work site; provide technical

assistance to crews and direct corrections and modification as appropriate; train and

instruct new and less experienced employees in proper work methods, tools,

equipment, and safety precautions; ensure safety of work sites by utilizing appropriate

safety methods, equipment and devices, including traffic control; discuss work to be

performed with supervisor; plan, organize and assign work to designated crew; inspect

job sites to ensure the proper maintenance of plants, shrubs, lawns, medians and other

landscaped areas. The qualifications are:

o Minimum 2 years gardening experience, working knowledge of

perennials, shrubs.

o Very punctual and dependable

5.13.2 GARDENER

o Must have knowledge in gardening including taking care of pants and flowers.

o Must have wide knowledge in different varieties of flowers and plants.

o Must have knowledge in planting and maintaining grass such as Bermuda grass.

o Knowledge in applying fertilizers and other necessary chemicals to the plants.

o Must have knowledge and ability to do basic landscaping for the plants

o Ability to detect and remove pests.

o Must have passion in plants.

55..1144 SSEECCUURRIITTYY DDEEPPAARRTTMMEENNTT

5.14.1 SECURITY OFFICERS/ GUARDS

Maintains safe and secure environment for customers and employees by patrolling and

monitoring premises and personnel.

They have the following duties and responsibilities:

o Secures premises and personnel by patrolling property; monitoring surveillance

equipment; inspecting buildings, equipment, and access points; permitting entry.

o Obtains help by sounding alarms.

o Prevents losses and damage by reporting irregularities; informing violators of

policy and procedures; restraining trespassers.

o Controls traffic by directing drivers.

o Completes reports by recording observations, information, occurrences, and

surveillance activities; interviewing witnesses; obtaining signatures.

o Maintains environment by monitoring and setting building and equipment

controls.

o Maintains organization's stability and reputation by complying with legal

requirements.

o Ensures operation of equipment by completing preventive maintenance

requirements; following manufacturer's instructions; troubleshooting

malfunctions; calling for repairs; evaluating new equipment and techniques.

o Contributes to team effort by accomplishing related results as needed.

Skills/Qualifications: Lifting, Surveillance Skills, Deals with Uncertainty, Judgment,

Objectivity, Dependability, Emotional Control, Integrity, Safety Management,

Professionalism, Reporting Skills

55..1155 RRAANNGGEERR DDEEPPAARRTTMMEENNTT

5.15.1 RANGERS/RESCUERS

They are the ones who ensures the safety and protection of the riders,

swimmers, and visitors in the resort. They are composed of medical teams and risk

rescuer personnel who see the overall welfare of the people, as well as the employees.

The qualifications for this position are:

o Must have the ability to react promptly in any circumstances

o Must be knowledgeable with first-aid treatments and other emergency need

expertise

o Knows complex rescue procedures and has been enrolled to any Medical school

or other related field of study or must have formal classes about rescue

procedures.

PARTNERS

Managing Partner

Executive Committee

Associate Partner

General Partners/Managers

Front Office Department

Supervisor

Receptionist

Finance Department

Accountant

Chef Cashier

Cost Controller

Housekeeping Department

Supervisor

Senior H/K Attendant

Room Attendant

Senior Laundry Attendant

Laumdry Attendant

Food & Beverage Department

Senior Supervisor

Supervisor

Senior Waitress

Waitress

Kitchen Department

Executive Chef

Sous Chef

Commis II

Staff Cook

Chef de Rang

Commis II

Engineering Department

Maintenance

Production Department

Bars & Spa

Cashier

Waitress

Therapists

Bartender

Function Hall

Receptionist

Sound System Operator

Adventures

Cashier

Ride Operators

Gardener

Senior

Gardener

Security

Leader

Guard

Ranger

Leader

Ranger

Human Resource Manager

66.. OORRGGAANNIIZZAATTIIOONNAALL SSTTRRUUCCTTUURREE

Les Chateaux Mountain Resort and Adventures Projected Statement of Income

For the 5 year Operations

1st Year 2nd Year 3rd Year 4th Year 5th Year

Gross Revenue (See Schedule 1) 12050520 13801152 15570967 16972184 18006912

Less: Direct Costs (See Schedule 2) 2503122 2866762 3234386 3525445 3740378

Total 9547398 10934390 12336581 13446739 14266534

Gross Sales 1164390 1280829 1408912 1549803 1704783

Less: Cost of Sales (See Schedule 3) 931512 1024663 1127130 1239842 1363827

Total 232878 256166 281782 309961 340957

Total Gross Profit 9780276 11190556 12618364 13756699 14607491

Operating Expenses Salaries and Wages (See Schedule 4) 5760000 5760000 5760000 5760000 5760000

Advertising 360000 360000 180000 180000 180000

Insurance 375190 375190 375190 375190 375190

Utilities (See Schedule 5) 720000 820800 928800 1015200 1072800

Depreciation and Amortization (See Schedule 6) 1025278 1025278 1025278 1025278 1025278

Supplies 90000 94500 99225 104186 109396

Repairs and Maintenance 120000 132000 145200 159720 175692

Miscellaneous 120000 120000 120000 120000 120000

Communication 42000 46200 50820 55902 61492

Total 8612468 8733968 8684513 8795476 8879848

Total Operating Income(Loss) 1167808 2456588 3933851 4961223 5727643

Net Income before Interest and Taxes 1167808 2456588 3933851 4961223 5727643

Less: Interest Expense (See Schedule 7) 415747 415747 332598 249448 166299

Net Income before Taxes 752061 2040841 3601253 4711775 5561344

Less: Taxes 225618 612252 1080376 1413532 1668403

Net Income (Loss) 526443 1428589 2520877 3298242 3892941

77.. FFIINNAANNCCIIAALL AASSPPEECCTT 77.. 11 PPRROOJJEECCTTEEDD IINNCCOOMMEE SSTTAATTEEMMEENNTT

7.1.1 SCHEDULES TO PROJECTED STATEMENT OF INCOME

Schedule 1

Forecast of Revenue

Items of Income 1st Year 2nd Year 3rd Year 4th Year 5th Year

Income from Hotel Rooms Income from Single Bed Suite 1462500 1687500 1912500 2081250 2193750

Income from Double Bed Suite 3685500 4252500 4819500 5244750 5528250

Income from Family Suite 2293200 2646000 2998800 3263400 3439800

Income from Presidential Suite 1755000 2025000 2295000 2497500 2632500

Total 9196200 10611000 12025800 13086900 13794300

Income from Spa 326500 359150 395065 434572 478029

Income from Sauna 190400 209440 230384 253422 278765

Income from Swimming Pool 51400 56540 62194 68413 75255

Income from Cottages 936000 1080000 1224000 1332000 1404000

Income from Resorts Adventures Zip Line 99200 109120 120032 132035 145239

Rock/Wall Climbing 36300 39930 43923 48315 53147

Camping Site 14520 15972 17569 19326 21259

Other Income 1200000 1320000 1452000 1597200 1756920

Forecasted Gross Revenues 12050520 13801152 15570967 16972184 18006912

Income from Restaurant 940500 1034550 1138005 1251806 1376986

Income from Mini Bar 213000 234300 257730 283503 311853

Income from Souvenir Shop 10890 11979 13177 14495 15944

Forecasted Gross Sales 1164390 1280829 1408912 1549803 1704783

Forecasted Total Income 13214910 15081981 16979879 18521987 19711696

Schedule 2

Direct Costs

Revenue Direct Cost Gross Profit

Hotels 9196200 1379430 7816770

Spa 326500 195900 130600

Sauna 190400 19040 171360

Swimming Pool 51400 5140 46260

Cottages 936000 93600 842400

Zip Line 99200 59520 39680

Rock/Wall Climbing 36300 21780 14520

Camping Sites 14520 8712 5808

Function Hall 1200000 720000 480000

Total 12050520 2503122 9547398

Percentages 100% 20.77% 79.23%

Note: The percentage of direct cost to revenue is consistently assumed in the years of

operations. Sample Computation: 2nd Year = (12050520*20.7719003%) = 2,503,122

Schedule 3

Cost of Sales

Sales Cost of sales Gross Profit

Restaurant 940500 752400 188100

Mini Bar 213000 170400 42600

Souvenir Shop 10890 8712 2178

Total 1164390 931512 232878

Percentages 100% 0.8 0.2

Schedule 4

Salaries and Wages

Salary Grade

Employee Number of Employees

Individual Salary

Monthly Salary

Annual Salary

1

Accountant, F&B dept. and kitchen Senior Supervisor,

Production Department Supervisor

3 22,500 67,500 810,000

2

Front Office Supervisor,

Executive Chef, F&B supervisor, HouseKeeping

Supervisor

4 15,000 60,000 720,000

3

Chief cashier, Security and

Ranger Leader

4 12,500 50,000 600,000

4

Cost controller, Sous chef,

Chef de rang , Senior HouseKeeping

4 10,000 40,000 480,000

5

Senior Laundry(1), Senior

waitress(1), commis(2)

4 7,500 30,000 360,000

6

Cashier(4), receptionist(4),

waitress(7), room attendant(6) ,bartender(2), ranger(2), security guard(3),

staff cook(2), laundry assistant(2), massieure(3)

35 6,000 210,000 2,520,000

7

Gardener (1), adventure

operators (4)

5 4,500 22,500 270,000

TOTAL 5,760,000

Schedule 5

Utilities Expense



Percentage Increase

0.14 0.29 0.41 0.49

Note: Utilities are assumed at a fixed month of 60,000 for the 1st year and is increased by the

percentage increase in gross profit. Sample Computation: 1st Year = (60,000*12) = 720,000 2nd Year = (720,000*1.14) = 820,800 3rd Year = (720,000*1.29) = 928,800

Schedule 6

Depreciation and Amortization

Building


Cost 7503800 7503800 7503800 7503800 7503800

Accumulated Depreciation 357690 715380 1073070 1430760 1788450

Building, net 7146110 6788420 6430730 6073040 5715350

Depreciation per year =

7503800 – 350000 = 357690

20

Furnitures and Fixtures


Cost 6738763 6738763 6738763 6738763 6738763


Furnitures and Fixtures, net 6401824 6064886 5727948 5391010 5054072


6738762.5 = 336938.125

20

Equipment


Cost 1000000 1000000 1000000 1000000 1000000


Equipment, net 950000 900000 850000 800000 750000


1000000 = 50000

20

Schedule of Amortization of Intangibles

Pre-Operating Investment


Cost 739500 591600 443700 295800 147900

Amortization 147900 147900 147900 147900 147900

Pre-Operating Investment, net 591600 443700 295800 147900 0

Amortization per year =

739500 = 147900

5

Site Development


Cost 2655000 2522250 2389500 2256750 2124000

Amortization 132750 132750 132750 132750 132750

Site Development, net 2522250 2389500 2256750 2124000 1991250

Amortization per year =

2655000 = 132750

20

Schedule 7

Interest Expense

1st Year 2nd Year 3rd Year 4th Year 5th Year 6th Year 7th Year

Outstanding Loan Payable 3545559 3545559 2836448 2127336 1418224 709112 0

Interest Expense (12%) 425467 425467 340374 255280 170187 85093 0

Payment

709112 709112 709112 709112 709112 0

Les Chateaux Mountain Resort and Adventures Projected Statement of Financial Position



Assets Current Cash & Cash Equivalents 1551721 3296476 6133519 9747928 13957035

Non-Current Building, net 7146110 6788420 6430730 6073040 5715350

Equipments, net 950000 900000 850000 800000 750000

Furniture and Fixtures, net 6401824 6064886 5727948 5391010 5054072

Land 5000000 5000000 5000000 5000000 5000000

Intagible Assets Pre-Investment, net 591600 443700 295800 147900 0

Site Development, net 2522250 2389500 2256750 2124000 1991250

Total 22611784 21586506 20561228 19535950 18510672

Total Assets 24163505 24882982 26694747 29283878 32467707

Liabilities Current - - - - -

Non-Current Loan Payable 3545559 2836448 2127336 1418224 709112

Equities Partners' Capital 20617946 22046534 24567411 27865654 31758595

Total Liabilities and Capital 24163505 24882982 26694747 29283878 32467707

77.. 22 PPRROOJJEECCTTEEDD SSTTAATTEEMMEENNTT OOFF FFIINNAANNCCIIAALL PPOOSSIITTIIOONN

Les Chateaux Mountain Resort and Adventures Projected Statement of Cash Flows



Cash Flows from Operations Net Income (Loss) 526443 1428589 2520877 3298242 3892941

Add: Depreciation and Amortization 1025278 1025278 1025278 1025278 1025278

Net Cash Flows from Operations 1551721 2453867 3546155 4323520 4918219

Cash Flows from Investing Activities Purchase of Land (5000000) - - - -

Construction Cost of Building (7503800) - - - -

Purchase of furnitures and Fixtures (6738763) - - - -

Purchase of Equipment (1000000) - - - -

Pre-Operating Investment (739500) - - - -

Site Development Cost (2655000) - - - -

Net Cash Flows from Investing (23637063) - - - -

Cash Flows Financing Activities Partners' Capital 20091503

Long-term Loan Payable 3545559 (709112) (709112) (709112) (709112)

Net Cash Flows from Financing 23637063 (709112) (709112) (709112) (709112)

Net Cash Inflows(Outflows) 1551721 1744755 2837043 3614409 4209107

Beginning Cah Balance 0 1551721 3296476 6133519 9747928

Ending Cash Balance 1551721 3296476 6133519 9747928 13957035

77.. 33 PPRROOJJEECCTTEEDD CCAASSHH FFLLOOWW SSTTAATTEEMMEENNTT

77..44 GGEENNEERRAALL AASSSSUUMMPPTTIIOONNSS

7.4.1 REVENUE ASSUMPTIONS

For the 1st Year Operation

The assumption of income will be base on this schedule:

Table 1

Rate of Visit per Quarter

Quarter

A b C d

No. of Expected Customers

Expected Customers

per Quarter Times of Visit No. of

Expected Visits per Quarter

(Base * rate of project

viability)

(a*Rate of Customers

per Quarter)

(a*Rate of Times Willing to Visit*Time of Visit)

1x 2x 3x 4x 5x

January – March 955 143 36 94 127 63 11 330

April – June 955 400 100 264 354 176 30 923

July – September 955 76 19 50 67 33 6 175

October - December 955 337 84 222 298 148 25 777

Note: (1) The base we use is 1000 person which is a 500% increase from our sample size of 200 respondents. (2) The number of expected visits per quarter are counted base on the number of times a customer is expected to visit the resort not on per head count.

Income from Hotel

All projected income will be reported on a quarterly basis.

1. Rooms

Rental fee of hotel rooms will be based on the average present prices of hotels

and resorts in Ilocos Norte. Rent Income depends on the classes of rooms available –

Single Bed Suite, Double Bed Suite, Family Suite or Presidential Suite.

Income from hotel rooms is determined by getting the assumed total capacity

utilization per month for each type of hotel rooms and multiplies it by the

corresponding rental fee for each room. The rate of capacity utilization is patterned

depending on the months most customers will visit the resort. (Table 2 and 3 provides

basis for the Assumed Capacity Utilization per Quarter)

2. Restaurant

The income derived from the restaurant will be based on the assumption that all

costs attributable to the daily operations of the restaurant and its direct labor will be

considered 100% and mark up on selling price of foods or beverages of the restaurant

will be 25%. Sales will be based on the number of customers willing to eat in the

restaurant multiplied by the minimum amount of money they are willing to spend in the

restaurant based on the survey.

3. Mini Bar

Income from the mini bar is derived using the present market cost rate of the

province for alcohol and beverages. Sales will be based on the number of customers

willing to visit the mini bar multiplied by the minimum amount of money they are willing

to spend in the mini bar based on the survey. A mark up on costs of 25% will be

assumed.

4. Other Income

All other income that accrues to the hotel particularly the use of function hall to

hold different venues such as seminars, trainings, programs, parties for all occasions and

others will be based in the assumption that 2 events will be held per month for a total of

6 events per quarter multiplied by the rental fee. Such fee will be based on the costs

incurred (e.g. handling events).

Income from Spa, Sauna and Swimming Pool

The income from spa, sauna and swimming pool is computed using as a price basis the

average prevailing prices of spa, sauna, and swimming pool in Ilocos Norte.

This method serves as the researchers’ guideline in determining the income from the

amenities:

a. The number of customers willing to avail the amenities is computed by multiplying

its percentage with the number of customers visiting the resort per quarter.

b. Multiply the result in a with the average price computed to determine the income.

Income from Cottages

Income from cottages will be computed by multiplying the total assumed capacity

utilization of the cottages per quarter multiply by the price of cottages. The price used is based

on professional judgment. (Table 3 and 4 shows the Capacity utilization of Cottages)

Income from Souvenir Shop

The income from souvenir shop will be based on the costs attributed to such. Costs will

be considered at 100% and a mark up on selling price of 20% will be imposed. Income will be

computed by multiplying the number of visitors willing to buy souvenirs with the percentage of

visit per quarter, and then multiply the result from the price of souvenir items. The souvenir

items offered includes t-shirts, key chains, badges and fans.

Income from Resorts Adventures

1. Zip Line

Total income is determined by multiplying the number of visitors with the rate of

visitors willing to try the zip line multiplied by the computed price.

2. Rock/Wall Climbing

Total income is determined by multiplying the number of visitors with the rate of

visitors willing to try rock/wall climbing multiplied by the computed price.

3. Camping Sites

Camping sites will produce income by imposing rent on the area to be occupied

by the campers and also by providing tent if they can’t provide for themselves. Total

income will be computed by multiplying the number of customers willing to camp at the

resort with the computed price for each area plus the rent of tents if any. Tents are

assumed to have a capacity of 5 persons. It is to be assumed also that 50% of those who

want to camp have their tent, thus paying only for the space rent, and 50% will rent

their tent to the resort.

Table 2

Type of Rooms No. of Rooms

Assumed No. of Business Days per

Quarter

Assumed Total

Capacity

Single Bed Suite 5 90 450

Double Bed Suite 9 90 810

Family Suite 4 90 360

Presidential Suite 2 90 180

Table 3

Rate of Capacity utilization

Month 1st

year

Growth in Capacity

Utilization

Max Attainable Capacity

January - March 60% 40% 100%

April - June 80% 20% 100%

July - September 50% 50% 100%

October - December 70% 70% 100%

Growth Rate per Year: 10%

Table 4

No. of Cottages 8

No. of Business days per Quarter 90

Assumed Total Capacity Utilization 720

For the succeeding years of operation

1. For the incomes on hotel rooms and cottages, it will be assumed that the growth rate of

the utilization per year will be 10% until reaching the maximum attainable capacity

utilization.

2. For all other sources of income, it will be assumed that revenues will increase by 10%

each year.

7.4.2 COST ASSUMPTIONS

1. Direct Costs of Income:

a. Hotel Rooms

Direct costs attributable to hotel rooms will be maintenance and toiletries. It will

be assumed at 15% of the total income from renting the hotel rooms.

b. Spa

Items included in direct costs for spa will be the direct labor and necessary

supplies. It will be assumed that 60% of the total income from spa will be directly

attributable to the spa.

c. Sauna

Direct costs attributable to the sauna will be its maintenance and supplies

expense. Assumed percentage of direct cost will be 10% of the income coming from

sauna.

d. Swimming Pool

Direct costs attributable to the swimming pool will be its maintenance expense.

Assumed percentage of direct cost will be 10% of the income coming from

swimming pool.

e. Cottages

The only direct cost arising from cottages will be its maintenance expense which

is assumed at 10% of its total income.

f. Zip Line

Costs directly attributable to the zip line are direct labor of facilitators and

repairs and maintenance. It will be assumed at 60% of total income coming from the

zip line.

g. Rock/Wall Climbing

Costs directly attributable to the rock/wall climbing are direct labor of facilitators

and repairs and maintenance. It will be assumed at 60% of total income coming from

rock/wall climbing.

h. Camping site

Costs directly attributable to the camping site are direct labor of securities and

facilitators and maintenance. It will be assumed at 60% of total income coming from

camping activities.

i. Function Hall

Direct costs of function hall will be its maintenance and direct labor of staff

organizing the events. Assumed costs will be 60% of income accruing from the use of

function hall.

For the succeeding years of operations, the direct costs percentage of gross revenue

will be maintained.

2. Cost of Sales

a. Restaurant

Costs of sales will include raw materials for the foods offered and beverages. It

will be assumed that of the total sales 80% forms part of the costs of sales.

b. Mini Bar

Cost of sales will be the costs of products when acquired from suppliers. Of the

price imposed on the product it will be assumed that 80% will be the cost.

c. Souvenir Shop

Cost of sales of souvenir shops includes the costs of making the souvenirs. It will

be assumed that cost is 80% of the total sales of souvenir items. Inventory

assumptions of souvenir items will be 20% of the items available for sale will be the

ending inventory for each quarter.

For the succeeding years of operations, the cost of sales percentage of gross

revenue will be maintained.

3. Operating Expenses

a. Salaries and Wages

Salaries and Wages are base on the quantity of work delegated to each

employee. Summary of salaries and wages is seen in the schedule 4 of projected

statement of income.

b. Advertising

Advertising expenses will include the expenses to be incurred in the

promotion of resort to the public. It will be assumed at Php 30 000 per month for

the first 2 years of operation and Php 15 000 for the succeeding years of

operation.

c. Insurance

The building will be insured by Paramount Life and General Insurance

Corporation. The insurance expense will cover 50% of the original cost of the

building and will be paid every year for 10 years.

d. Utilities

Utilities expense consists of water and electricity. Utilities Expense for the

first year is assumed at a fixed rate of Php 60 000 per month, 20% of it will

consist of water expense and 80% will consist of electricity expense. However for

the succeeding years of operation this rate will be increased by the percentage

of increase in the total gross profit per year using the total gross profit of 1st

year as base to compensate for the increase in utilization of the hotel and its

amenities.

e. Depreciation and Amortization

The pre-operating investment costs will be amortized for 5 years starting

in the year of operation. Site development cost will be amortized for 20 years.

Depreciation expense for the building, equipment and furniture and

fixtures will be computed using the straight line method of depreciation for 20

years. The building will be assumed to have a salvage value of Php 350 000.

f. Supplies

The administrative supplies will be assumed at Php 7 500 per month.

These will consist of the cleaning materials and office supplies to be used in each

department. This will be assumed to increase at 5% per year for the succeeding

years of operation.

g. Repairs and Maintenance

The expenses incurred in the repairs and maintenance of other amenities

and facilities will be fixed at Php 10 000 per month for the first year. This will

increase at 10% per year for the next years of operation.

h. Miscellaneous

These will compose of the expenses to be incurred in case of

emergencies and contingencies. It will also be assumed at Php 10 000 per month.

i. Communication

Communication expenses shall cover the telephone bills, internet

connection expenses and cable connections. It will be fixed rate of Php 3 500 per

month. However since the number of expected customers will be increasing, it

will assumed to increase at 10% per year.

4. Interest Expense

Interest expense will be at a rate of 12% of the loan payable. See Schedule 7 of

Projected Statement of Income.

5. Taxes

Tax rate is 30%.

77..55 RREEVVEENNUUEE CCOOMMPPUUTTAATTIIOONN

7.5.1 INCOME OF HOTEL ROOMS

Income from Single Bed Suite

Month

1st year 2nd year 3rd year 4th year 5th year

Rent Income

(Assumed Total Capacity*Capacity Utilization Rate*1250)

January - March 337500 393750 450000 506250 562500

April – June 450000 506250 562500 562500 562500

July - September 281250 337500 393750 450000 506250

October - December 393750 450000 506250 562500 562500

Total 1462500 1687500 1912500 2081250 2193750 Note: See Tables 2 and 3 of General assumptions. Sample Computations:

1st year Jan – March = (450*.6*1250) = 337500 2nd year Jan – March = (450*.7*1250) = 393750 3rd year Jan – March = (450*.8*1250) = 450000 4th year Jan – March = (450*.9*1250) = 506250 5th year Jan – March = (450*1*1250) = 562500

*the same computation will be followed for the income of other hotel rooms

Income from Double Bed Suite

Month


Rent Income


January - March 850500 992250 1134000 1275750 1417500

April – June 1134000 1275750 1417500 1417500 1417500

July - September 708750 850500 992250 1134000 1275750


Total 3685500 4252500 4819500 5244750 5528250

Income from Family Suite

Month


Rent Income


January - March 529200 617400 705600 793800 882000

April – June 705600 793800 882000 882000 882000

July - September 441000 529200 617400 705600 793800


Total 2293200 2646000 2998800 3263400 3439800

Income from Presidential Suite

Month


Rent Income


January - March 405000 472500 540000 607500 675000

April – June 540000 607500 675000 675000 675000

July - September 337500 405000 472500 540000 607500


Total 1755000 2025000 2295000 2497500 2632500

7.5.2 INCOME FROM SPA

Income from Spa

Month


Income

(No. of Expected Visits per Quarter*Rate of Customers Willing to Pay for Spa*500)

January - March 49000 53900 59290 65219 71741

April – June 136500 150150 165165 181682 199850

July - September 26000 28600 31460 34606 38067


Total 326500 359150 395065 434572 478029

Note: Refer to Table 1 of General assumptions. Computations are rounded off since we are talking of no. of customers willing to pay for such amenities. Sample Computations: 1st Year: Jan – March = (330*29.58%) = 98*500 = 49000 April – June = (923*29.58%) = 273*500 = 136500 2nd Year: Jan – March = (49000*1.10) =53900 April – June = (136500*1.10) = 150150

7.5.3 INCOME FROM SAUNA

Income from Sauna

Month


Income

(No. of Expected Visits per Quarter*Rate of Customers Willing to Pay for Sauna*350)

January - March 28350 31185 34304 37734 41507

April – June 79800 87780 96558 106214 116835

July - September 15050 16555 18211 20032 22035


Total 190400 209440 230384 253422 278765

Note: Refer to Table 1 of General Assumptions. Computation will be the same with income from spa, only that this time the percentage of customers willing to pay for the amenities will be 24.65%.

7.5.4 INCOME FROM SWIMMING POOL

Income from Swimming Pool

Month


Income

(No. of Expected Visits per Quarter*Rate of Customers Willing to Pay for Swimming Pool*100)

January - March 7700 8470 9317 10249 11274

April – June 21500 23650 26015 28617 31478

July - September 4100 4510 4961 5457 6003


Total 51400 56540 62194 68413 75255

Note: Refer to Table 1 of General Assumptions. Computation will be the same with income from spa, only that this time the percentage of customers willing to pay for the amenities will be 23.24%.

7.5.5 INCOME FROM COTTAGES

Income from Cottages

Month


Rent Income


January - March 216000 252000 288000 324000 360000

April – June 288000 324000 360000 360000 360000

July - September 180000 216000 252000 288000 324000


Total 936000 1080000 1224000 1332000 1404000

Note: Refer to Tables 3 and 4 of General Assumptions.

Sample Computations: 1st Year Jan – March = (720*.6*500) = 216000 April – June = (720*.8*500) = 288000 2nd Year Jan – March = (720*.7*500) = 252000 April – June = (720*.9*500) = 324000

7.5.6 INCOME FROM RESORT ADVENTURES

Zip Line

Month


Income

(No. of Expected Visits per Quarter*Rate of Customers Willing to Pay for Zip Line*200)

January – March 14800 16280 17908 19699 21669

April – June 41600 45760 50336 55370 60907

July – September 7800 8580 9438 10382 11420

October – December 35000 38500 42350 46585 51244

Total 99200 109120 120032 132035 145239

Note: Refer to Table 1 of General Assumptions. Computation will be the same with income from Spa and other amenities, only that this time the percentage of customers willing to try Zip Line will be 22.54%.

Rock/Wall Climbing

Month


Income

(No. of Expected Visits per Quarter*Rate of Customers Willing to Pay for Rock/Wall Climbing*100)

January – March 5400 5940 6534 7187 7906

April – June 15200 16720 18392 20231 22254

July – September 2900 3190 3509 3860 4246

October – December 12800 14080 15488 17037 18740

Total 36300 39930 43923 48315 53147

Note: Refer to Table 1 of General Assumptions. Computation will be the same with income from Spa and other amenities, only that this time the percentage of customers willing to try Rock/Wall Climbing will be 16.43%.

Camping Site

Month

1st year 2nd year

3rd year

4th year

5th year

Income

Income from Space rent

from Space rent and Tent

(Customers willing to

Camp/5*.50*100)

(Customers willint to

Camo/5*.5*200)

January - March 720 1440 2160 2376 2614 2875 3162

April - June 2100 4020 6120 6732 7405 8146 8960

July - September 380 760 1140 1254 1379 1517 1669

October - December 1700 3400 5100 5610 6171 6788 7467

Total

14520 15972 17569 19326 21259

Note: Refer to Table 1 of General Assumptions. Customers renting space and both space and tent will be assumed at 50% each and will increase by the assumed rate of 10% each year. Rate of customers willing to camp is 21.82%. Decimals are rounded off. Tents are assumed to have a capacity of 5 persons. Sample Computations: 1st Year Jan – March = (330*.2182) = 72/5*.5*100 = 720

= (72/5*.5*200) =1440 = (720+1440) = 2160

2nd Year Jan – March = 2160*1.10 = 2376

7.5.7 INCOME FROM FUNCTION HALL

Function Hall

Month


Income

(No. of Events*50000)

January - March 300000 330000 363000 399300 439230

April - June 300000 330000 363000 399300 439230

July - September 300000 330000 363000 399300 439230


Total 1200000 1320000 1452000 1597200 1756920

Note: 2 events per month are initially assumed and will increased at 10% per year. 7.5.8 INCOME FROM RESTAURANT

Restaurant

Month


Income

(No. of Customers willing to eat in the Restaurant*Min Budget)

January - March 141000 155100 170610 187671 206438

April - June 393000 432300 475530 523083 575391

July - September 75000 82500 90750 99825 109808


Total 940500 1034550 1138005 1251806 1376986

Note: Refer to Table 1 of General Assumptions. Computation is the same with the other amenities. Only that, this time the rate of customers willing to eat in the restaurant will be 28.43%. The minimum result of budget (Php 1,500) is taken from the survey to incorporate the concept of conservatism on the data. Revenue from first year operation is increased by 10% each year for the next years. Sample Computation:

1st Year Jan – March = 330*.2844 = 94*1500 = 141000 2nd Year Jan – March = 141000*1.1 = 155100

7.5.9 INCOME FROM MINI BAR

Restaurant

Month


Income

(No. of Customers willing to go in the Mini Bar*Min Budget)

January - March 32000 35200 38720 42592 46851

April - June 89000 97900 107690 118459 130305

July - September 17000 18700 20570 22627 24890


Total 213000 234300 257730 283503 311853

Note: Refer to Table 1 of General Assumptions. Computation is the same with the other amenities. Only that, this time the rate of customers willing to go in the mini bar will be 19.34%. The minimum result of budget (Php 500) is taken from the survey to incorporate the concept of conservatism on the data. Revenue from first year operation is increased by 10% each year for the next years.

Sample Computation: 1st Year Jan – March = 330*.1934 = 64*500 = 32000 2nd Year Jan – March = 32000*1.1 = 35200

7.5.10 INCOME FROM SOUVENIR SHOP

Souvenir Shop

Month

Souvenir Items

1st year

2nd year

3rd year

4th year

5th year

Income

T-shirts Key Chains Budges Fans

(Customers Willing to Buy*120)




January – March 1200 100 150 200 1650 1815 1997 2196 2416

April – June 3360 280 420 560 4620 5082 5590 6149 6764

July - September 600 50 75 100 825 908 998 1098 1208

October - December 2760 230 345 460 3795 4175 4592 5051 5556

Total

10890 11979 13177 14495 15944

Refer to Table 1 of General Assumptions. Computation is the same with the other amenities. Only that, this time the rate of customers willing to buy souvenir will be 3%. Revenue from first year operation is increased by 10% each year for the next years.

77..66 FFIINNAANNCCIIAALL RRAATTIIOOSS

7.6.1 PROFITABILITY RATIOS

RETURN ON INVESTMENT 1st Year 2nd Year 3rd Year 4th Year 5th Year

Net Income Before Interest and Taxes 1167808 2456588 3933851 4961223 5727643

Average Investment 23124423 22099145 21073867 20048589 19023311

Percentage 5.05% 11.12% 18.67% 24.75% 30.11%

RETURN ON EQUITY 1st Year 2nd Year 3rd Year 4th Year 5th Year


Average Partners' Equity 20354724 21332240 23306973 26216533 29812124

Percentage 5.74% 11.52% 16.88% 18.92% 19.21%

OPERATING LEVERAGE 1st Year 2nd Year 3rd Year 4th Year 5th Year



Degree of Leverage 8.37 4.56 3.21 2.77 2.55

7.6.2 SOLVENCY and LIQUIDITY RATIOS

DEBT-TO-EQUITY RATIO 1st Year 2nd Year 3rd Year 4th Year 5th Year

Debt (12%) 3545559 2836448 2127336 1418224 709112

Equity 20617946 22046534 24567411 27865654 31758595

Percentage 17.20% 12.87% 8.66% 5.09% 2.23%

Ratio 0.17:1 0.13:1 0.09:1 0.05:1 0.02:1

DEBT-TO-ASSETS RATIO 1st Year 2nd Year 3rd Year 4th Year 5th Year

Debt 3545559 2836448 2127336 1418224 709112

Assets 24163505 24882982 26694747 29283878 32467707

Percentage 14.67% 11.40% 7.97% 4.84% 2.18%

Ratio 0.15:1 0.11:1 0.8:1 0.05:1 0.02:1

EQUITY-TO-ASSETS RATIO 1st Year 2nd Year 3rd Year 4th Year 5th Year

Equity 20617946 22046534 24567411 27865654 31758595

Assets 24163505 24882982 26694747 29283878 32467707

Percentage 85.33% 88.60% 92.03% 95.16% 97.82%

Ratio 0.85:1 0.89:1 0.92:1 0.95:1 0.97:1

TIMES INTEREST EARNED 1st Year 2nd Year 3rd Year 4th Year 5th Year


Interest Expense 425467 425467 340374 255280 170187

TIMES INTEREST EARNED 2.74 5.77 11.56 19.43 33.66

7.6.3 PROJECT EVALUATION

PAYBACK PERIOD Net Cash

Inflow Original

Ivestment Payback

Year 1 1551721 23637063 1 Year 2 2453867 22085342 1 Year 3 3546155 19631475 1 Year 4 4323520 16085320 1 Year 5 4918219 11761799 1 Year 6 6764766 6843580 1 Year 7 7404236 78815 0.01

6.01 Years

88.. FFIINNAANNCCIIAALL AANNAALLYYSSIISS

COMPARATIVE STATEMENT OF FINANCIAL POSITION

Common –Size Percentages


Assets

Current

Cash & Cash Equivalents 6.42% 13.25% 22.98% 33.29% 42.99%

Non-Current

Building, net 29.57% 27.28% 24.09% 20.74% 17.60%

Equipments, net 3.93% 3.62% 3.18% 2.73% 2.31%

Furniture and Fixtures, net 26.49% 24.37% 21.46% 18.41% 15.57%

Land 20.69% 20.09% 18.73% 17.07% 15.40%

Intagible Assets

Pre-Investment, net 2.45% 1.78% 1.11% 0.51% 0.00%

Site Development, net 10.44% 9.60% 8.45% 7.25% 6.13%

Total 93.58% 86.75% 77.02% 66.71% 57.01%

Total Assets 100.00% 100.00% 100.00% 100.00% 100.00%

Liabilities

Current

Non-Current

Loan Payable 14.67% 11.40% 7.97% 4.84% 2.18%

Equities

Partners' Capital 85.33% 88.60% 92.03% 95.16% 97.82%

Total Liabilities and Capital 100.00% 100.00% 100.00% 100.00% 100.00%

Analysis:

The Balance Sheet of Les Chateaux Resort and Adventures shows that there had been a

significant change in the percentage of Current and Non-current Assets, using Total Assets as the base

for the computation of the rate. In the first year of its operations, the Current Assets, which is composed

of Cash and Cash Equivalents, increased from 6.42% to 42.99%, in its fifth year. This is attributable to the

increasing cash inflows from its operations. The Non-current Assets, however, decreased from 93.58%

to 57.01% due to the annual depreciation of Building, Equipments and Furniture and fixtures and

amortization of Intangible Assets. Also, the statements for the five-year period reflects a decreasing

percentage of Total Liabilities and Total Equities, using Total Assets as basis. This is an indicator that the

company has a lesser reliance to outside creditors in acquiring additional financing needed.

COMPARATIVE STATEMENT OF INCOME

Common –Size Percentages


Gross Revenue 100.00% 100.00% 100.00% 100.00% 100.00% Less: Direct Costs 20.77% 20.77% 20.77% 20.77% 20.77% Total 79.23% 79.23% 79.23% 79.23% 79.23% Gross Sales 100.00% 100.00% 100.00% 100.00% 100.00% Less: Cost of Sales 80.00% 80.00% 80.00% 80.00% 80.00% Total 20.00% 20.00% 20.00% 20.00% 20.00% Total Gross Profit 74.01% 74.20% 74.31% 74.27% 74.11%

Operating Expenses

Salaries and Wages 43.59% 38.19% 33.92% 31.10% 29.22% Advertising 2.72% 2.39% 1.06% 0.97% 0.91% Insurance 2.84% 2.49% 2.21% 2.03% 1.90% Utilities 5.45% 5.44% 5.47% 5.48% 5.44% Depreciation and Amortization 7.76% 5.44% 6.04% 5.54% 5.20% Supplies 0.68% 6.80% 0.58% 0.56% 0.55% Repairs and Maintenance 0.91% 0.63% 0.86% 0.86% 0.89% Miscellaneous 0.91% 0.88% 0.71% 0.65% 0.61% Communication 0.32% 0.31% 0.30% 0.30% 0.31% Total 65.17% 57.91% 51.15% 47.49% 45.05% Total Operating Income(Loss) 8.84% 16.29% 23.17% 26.79% 29.06%

Net Income before Interest and Taxes 8.84% 16.29% 23.17% 26.79% 29.06% Interest Expense 3.15% 2.76% 1.96% 1.35% 0.84% Net Income before Taxes 5.69% 13.53% 21.21% 25.44% 28.21% Less: Taxes 1.71% 4.06% 6.36% 7.63% 8.46% Net Income (Loss) 3.98% 9.47% 14.85% 17.81% 19.75%

Analysis:

Les Chateaux Resort and Adventures’ Income Statements for the span of five years reflects a

favorable change of Net Income after deducting Interests and Taxes. Based from the table, the said line

item increased from 3.98% to 19.75%. The base used in calculating the percentages was the combined

result of Gross Revenues and Gross Sales. It can also be observed that the Total Gross Profit is almost

consistent for five years but the Total Operating Expenses is decreasing due to the decrease of some

expenses assumed for the succeeding years such as Advertising and Insurance. Also the increase in

Income after Interests and Taxes is brought by the decrease in the payment of Interest Expenses

because of the annual payment of its liabilities.

COMPARATIVE STATEMENT OF FINANCIAL POSITION

Horizontal Analysis

Year 2 - Year 1 Year 3 - Year 2 Year 4 - Year 3 Year 5 - Year 4

Increase (Decrease)

% Increase (Decrease)



%

Assets Current Cash & Cash Equivalents 1744755 112.44% 2837043 86.06% 3614409 58.93% 4209107 43.18%

Non-Current Building, net (357690) (5.01%) (357690) (5.27)% (357690) (5.56%) (357690) (5.89%)

Equipments, net (50000) (5.26%) (50000) (5.56)% (50000) (5.88%) (50000) (6.25%)

Furniture and Fixtures, net (336938) (5.26%) (336938) (5.56)% (336938) (5.88%) (336938) (6.25%)

Land 0 0.00% 0 0.00% 0 0.00% 0 0.00%

Intagible Assets Pre-Investment, net (147900) (25.00%) (147900) (33.33%) (147900) (50.00%) (147900) (100.00%)

Site Development, net (132750) (5.26%) (132750) (5.56%) (132750) (5.88%) (132750) (6.25%)

Total (1025278) (4.53%) (1025278) (4.75%) (1025278) (4.99%) (1025278) (5.25%)

Total Assets 719477 2.98% 1811765 7.28% 2589130 9.70% 3183829 10.87%

Liabilities Current

Non-Current Loan Payable (709112) (20.00%) (709112) (25.00%) (709112) (33.33%) (709112) (50.00%)

Equities Partners' Capital 1428589 6.93% 2520877 11.43% 3298242 13.43% 3892941 13.97%

Total Liabilities and Capital 719477 2.98% 1811765 7.28% 2589130 9.70% 3183829 10.87%

Analysis:

It is shown that the Current Assets which is composed primarily of the Cash and Cash

Equivalents is the only item in the Total Assets that is increasing, although at a decreasing rate, from

112.44% to 43.18%. The book value of Non-current Assets are all decreasing due to the annual

depreciation of the fixed assets and amortization of intangible assets. In addition, there is also no

additional investment on fixed assets during the first five years of operations that is why the value of the

Non-current assets are declining continuously. The Total Liabilities are decreasing at an increasing rate

from 20% to 50%. This is because the Loan Payable account declined due to the annual payment of

loans. By the end of the fifth year, Les Chateaux Resort and Adventures’ total capital structure would

change from borrowing to an equity provided by the profit earned from its operations. This is a

favorable condition because these changes indicate a strong financial position in the long run

COMPARATIVE STATEMENT OF INCOME Horizontal Analysis

Year 2 - Year 1 Year 3 - Year 2 Year 4 - Year 3 Year 5 - Year 4

Increase (Decrease) %




Gross Revenue 1750632 14.53% 1769815 12.82% 1401217 9.00% 1034728 6.10% Less: Direct Costs 363640 14.53% 367624 12.82% 291059 9.00% 214933 6.10% Total 1386992 14.53% 1402191 12.82% 1110157 9.00% 819796 6.10% Gross Sales 116439 10.00% 128083 10.00% 140891 10.00% 154980 10.00% Less: Cost of Sales 93151 10.00% 102466 10.00% 112713 10.00% 123984 10.00% Total 23288 10.00% 25617 10.00% 28178 10.00% 59174 10.00%

Total Gross Profit 1410280 14.42% 1427808 12.76% 1138336 9.02% 850792 6.18%

Operating Expenses Salaries and Wages 0 0.00% 0 0.00% 0 0.00% 0 0.00%

Advertising 0 0.00% (180000) (50.00%) 0 0.00% 0 0.00% Insurance 0 0.00% 0 0.00% 0 0.00% 0 0.00% Utilities 100800 14.00% 108000 13.16% 86400 9.30% 57600 5.67% Depreciation and Amortization 0 0.00% 0 0.00% 0 0.00% 0 0.00% Supplies 4500 5.00% 4725 5.00% 4961 5.00% 5209 5.00% Repairs and Maintenance 12000 10.00% 13200 10.00% 14520 10.00% 15972 10.00% Miscellaneous 0 0.00% 0 0.00% 0 0.00% 0 0.00% Communication 4200 10.00% 4620 10.00% 5082 10.00% 5590 10.00% Total 121500 1.41% (49455) (0.57%) 110963 1.28% 84372 0.96%

Total Operating Income(Loss) 1288780 110.36% 1477263 60.13% 1027372 26.12% 766420 15.45%

Net Income before Interest and Taxes 1288780 110.36% 1477263 60.13% 1027372 26.12% 766420 15.45%

Less: Interest Expense 0 0.00% (83149) (20.00%) (83149) (25.00%) (83149) (33.33%) Net Income before Taxes 1288780 171.37% 1560412 76.46% 1110522 30.84% 849570 18.03% Less: Taxes 386634 171.37% 468124 76.46% 333157 30.84% 254871 18.03%

Net Income (Loss) 902146 171.37% 1092288 76.46% 777365 30.84% 594699 18.03%

Analysis:

The Gross Revenues and Direct Costs increased at a decreasing rate, both from 14.53% in the 1st

year to 6.10% on the 5ft year. On the other hand, both the Gross Sales and the Cost of Sales increased at

10%. Overall, the Total Gross Profit increased at a decreasing rate, which is affected by the Gross Profit

from the Gross Revenues. All but the Utilities Expenses remain constant for five years. The Utilities

Expenses increased year after year although at a decreasing rate from 14% to 5.67%. The Interest

Expense declined every year because of the principal repayment of Loans Payable. It can be concluded

that the operating performance of the resort is satisfactory because the Net Income generated after

considering the Interests and Taxes is increasing every year.

99.. SSOOCCIIAALL DDEESSIIRRAABBIILLIITTYY

9.1 SOURCE OF EMPLOYMENT

The “Les Chateaux Mountain Resort and Adventures” shall serve as a source of

employment to those people who are unemployed. These people who will be benefited

from the project shall include those workers who will construct the buildings and

infrastructures and those employees who will be needed in the resort to supervise and

facilitate the different amenities and services offered to the public. The potential

people who will be employed will most likely come from the nearby barangays or

neighboring towns in Ilocos Norte.

9.2 EMPLOYEE COMPETITIVENESS AND PROFESSIONALISM

Potential employees shall undergo trainings and seminars to enhance their

personality and attitude towards work and improve their knowledge and skills about

their own specializations. These trainings and seminars to be conducted are aimed at

making the human resources to work competitively and professionally.

9.3 SOURCE OF LIVING

With the income derived from their employment, their families will also be

benefited since they depend on them for their living. Thus, this would be enough to

cater daily necessities of the family.

9.4 TOURISM

The establishment of Le Chateaux Resort and Adventures in Dingras, Ilocos Norte

will make the town gain more popularity as a tourist destination both for local or foreign

markets since this offers a unique mountain resort which features different recreational

activities, highlighting the magnificent falls of Dingras located at three consecutive

barangays.

9.5 ECONOMY

The taxes paid by the resort constitutes to additional sources of fund by the

government which will be utilized to finance their upcoming projects in the future.

1100.. AAPPPPEENNDDIICCEESS

AAPPPPEENNDDIIXX AA

Mariano Marcos State University COLLEGE OF BUSINESS, ECONOMICS AND ACCOUNTANCY

Batac City, Ilocos Norte

October 3, 2013 Department of Labor and Employment Pacific Hardware Bldg., Abadilla St. Laoag City, Ilocos Norte Sir/Madam: We are BS Accountancy IV students of Mariano Marcos State University enrolled in management consultancy. Currently, we are conducting a study entitled “Les Chateaux Resorts and Adventures”. This study focuses in evaluating the feasibility of establishing a resort and amusement parks in Ilocos Norte to cater the need for a highly-developed resort and adventure parks and improve the stereotypical resort type available in the province. In connection to this, may we request our team to gather important information relevant to the study of this feasibility to help us in conducting this planned project, particularly in the salary basis of employees that will be hired for employment. Rest assured that all data and information will be properly cited in the study. We look forward to a positive response with regards to our request. Thank you very much for your valuable help. Very respectfully yours, MARK JOSEPH RESPICIO VINCENT JOHN A. ALIPIO

JOHN ALEXIS D. ILACAD BRADLEY POLICARPIO

KAI-MARIE BARROGA Noted: OSCAR M. AGPAOA, Ph. D. Professor, Accounting 116

AAPPPPEENNDDIIXX BB



October 3, 2013 Department of Environment and Natural Resources PFDPIN Bldg., Apolinario Castro Street, Laoag City, Ilocos Norte Sir/Madam: We are BS Accountancy IV students of Mariano Marcos State University enrolled in management consultancy. Currently, we are conducting a study entitled “Les Chateaux Resorts and Adventures”. This study focuses in evaluating the feasibility of establishing a resort and amusement parks in Ilocos Norte to cater the need for a highly-developed resort and adventure parks and improve the stereotypical resort type available in the province. In connection to this, may we request our team to gather important information relevant to the study of this feasibility to help us in conducting this planned project, particularly in the requirements needed in the establishment of such in the province and the costs to each requirement needed to comply with. Rest assured that all data and information will be properly cited in the study. We look forward to a positive response with regards to our request. Thank you very much for your valuable help. Very respectfully yours, MARK JOSEPH RESPICIO VINCENT JOHN A. ALIPIO



AAPPPPEENNDDIIXX CC



October 3, 2013 Department of Trade and Industry 3rd Floor Pacific Building, Abadilla Street LaoagCity ,Ilocos Norte Sir/Madam: We are BS Accountancy IV students of Mariano Marcos State University enrolled in management consultancy. Currently, we are conducting a study entitled “Les Chateaux Resorts and Adventures”. This study focuses in evaluating the feasibility of establishing a resort and amusement parks in Ilocos Norte to cater the need for a highly-developed resort and adventure parks and improve the stereotypical resort type available in the province. In connection to this, may we request our team to gather important information relevant to the study of this feasibility to help us in conducting this planned project, particularly in the requirements needed in the establishment of such in the province and the costs to each requirement needed to comply with. Rest assured that all data and information will be properly cited in the study. We look forward to a positive response with regards to our request. Thank you very much for your valuable help. Very respectfully yours, MARK JOSEPH RESPICIO VINCENT JOHN A. ALIPIO



http://www.iglobal.co/philippines/search/government-laoag-city-ilocos-norte

Male Female

Government Private NGO Self-Employed Unemployed Student

AAPPPPEENNDDIIXX DD

FEASIBILITY STUDY QUESTIONNAIRE A. PERSONAL INFORMATION NAME AGE GENDER PRESENT EMPLOYMENT

B. SURVEY

Instruction: Please shade on the respective box of your choices.

1. What are the activities would you like to experience in a mountain resort?

Swimming pool experience

Zip line

Trekking

Rock / Wall Climbing

Canopy walk (hanging bridge, monkey bridge, etc)

Boating Experience

Cable Car

Others (Pls. specify) _______________________________________

2. How much are you willing to spend to avail the activities you’ve chosen above?

Below 300

300 – 499

500 – 999

1000-1499

1500 and above

3. What time of the year you are most likely to visit a mountain resort?

January - March

April - June

July – September

October – December

4. How many times in a year would you most likely visit a mountain resort?

1

2

3

4

Others (Pls. specify) _

5. What amenities would you like to avail in a mountain resort?

Spa

Sauna

Swimming pool

Bath house

Others (Pls. specify) __________________________________

6. What other facilities would you like to have in a mountain resort?

Restaurant

How much are you willing to spend in the restaurant?

Below 300

300 – 499

500 – 999

1000 - 1499

1500 and above

Butterfly Garden

Mini Bar

How much are you willing to spend in the mini bar?

Below 300

300 – 499

500 – 999

1000-1499

1500 and above

Mini Zoo

Picnic Huts

Camping sites

Others (Pls. specify) ________________________________

7. Would you like to check-in (stay) in one of the rooms in the mountain resort?

Yes

No

8. How much of your budget are you amenable to spend in the mountain resort?

Below 300

300 – 499

500 – 999

1000-1499

1500 and above

9. What other features or things would you like to see in the mountain resort?

____________________________________________________________________________________________________________________________________________________________

10. If a mountain resort will open in Ilocos, will you go and see it?

Yes

No

AAPPPPEENNDDIIXX EE

BASIS OF ASSUMPTIONS (THE RESULT OF THE SURVEY)

The researchers gather information about the project through a survey questionnaire

which is distributed to a sample population size of 200 persons who belong in different strata

(Age, Gender, and Employment Status).

Activities Customers want to Experience in a Mountain Resort

No. of Respondents

% Rank

Swimming pool Experience 52 12.21%

Zip line 96 22.54% 1

Trekking 54 12.68% 3

Rock/Wall Climbing 70 16.43% 2

Canopy Walk 50 11.74%

Boating Experience 52 12.21%

Cable Car 50 11.74%

Others:

Racing Area 2 0.47%

Total 426 100%

Amount Customers are Willing to Spend in the Activities

No. of Respondents

% Rank

Below 300 41 20.50% 2

300-499 31 15.50%

500-999 28 14.00%

1000-1499 34 17.00% 3

1500 and above 66 33.00% 1

Total 200 100%

Seasons Customers are Expected to Visit No. of

Respondents % Rank

Jan-March 34 14.98% 3

April-June 95 41.85% 1

July-September 18 7.93%

October-December 80 35.24% 2

Total 227 100.00%

Rate a Customer is Expected to Visit per Year

No. of Respondents

% Rank

1x 50 25.00% 3

2x 66 33.00% 1

3x 59 29.50% 2

4x 22 11.00%

Others

5x 3 1.50%

Total 200 100%


No. of Respondents

% Rank

Spa 126 29.58% 1

Sauna 105 24.65% 2

Swimming pool 99 23.24% 3

Bath house 90 21.13%

Others:

Jacuzzi 3 0.70%

Body Massage 3 0.70%

Total 426 100%


No. of Respondents

% Rank

Restaurant 172 28.43% 1

Butterfly Garden 58 9.59%

Mini Bar 117 19.34% 3

Mini Zoo 31 5.12%

Picnic Huts 95 15.70%

Camping sites 132 21.82% 2

Total 605 100%

Amount Customers are Willing to Spend in Restaurant

No. of Respondents

% Rank

Below 300 24 13.95%

300-499 31 18.02%

500-999 31 18.02%

1000-1499 40 23.26%

1500 and above 46 26.74% 1

Total 172 100%


No. of Respondents

% Rank

Below 300 25 21.37%

300-499 18 15.38%

500-999 31 26.50% 1

1000-1499 15 12.82%

1500 and above 28 23.93%

Total 117 100%

Willingness to Stay in the Resort's Hotel

No. of Respondents

% Rank

Yes 185 92.50% 1

No 15 7.50%

Total 200 100%

Budgeted Amount Customers are Willing to Spend

No. of Respondents

% Rank

Below 300 15 7.69% 300-499 15 7.69% 500-999 35 18.46% 1000-1499 29 15.38% 1500 and above 96 50.77% 1

Total 190 100%

Other Features Costumers are Expecting to See in the Resort

No. of Respondents

% Rank

Skydiving 1 0.50% Parks/Garden 6 3.00% 2

Falls 9 4.50% 1

Cave 1 0.50% Souveneir Shop 6 3.00% 2

Top of the mountain building 1 0.50% Internet Café/Wifi Zone 5 2.50% 3

Stargazing Activity 1 0.50% Rizal Monument/ Statues of Superheroes 2 1.00% Dancing Fountain 1 0.50% Fish Pond 1 0.50% View Deck 2 1.00%

Hot Spring 6 3.00% Function Hall 1 0.50% Sports Area 4 2.00% Welcome Tribal Dance 1 0.50% Fish Spa 1 0.50% Undecided/None 151 75.50% Total 200 100%

Viability of the Resort to the Public No. of

Respondents % Rank

Yes 191 95.50% 1

No 6 3.00%

Undecided 3 1.50%

Total 200 100%

AAPPPPEENNDDIIXX FF

PROVINCE OF ILOCOS NORTE LAOAG CITY

I HEREBY CERTIFY THAT THE FOLLOWING ESTIMATES ABOUT THE PROJECT INVESTMENT

OF LES CHATEAUX MOUNTAIN RESORTS AND ADVENTURES ARE TRUE AND CORRECT BASED ON

MY EXPERTISE AND PROFESSIONAL JUDGEMENT.

Description m2

required Construction

Rate/ m2

Total Cost

Function Hall, Grand Lobby, Restaurant, Bar and Souvenir Shop (First Floor)

1,876 1,750 3,283,000


20 Hotel Rooms (Sencond Floor) 1,420 2,000 2,840,000

2 Gazebos 290 850 246,500

Spa 134 500 67,000

8 Cottages 120 250 30,000


2,840 2,000 5,680,000


2,840 2,200 6,248,000

Total Building/Covered Area 19,461,800

JAMES RODERICK MANUEL

ARCHIRECT

les chateaux feasibility study (1).pdf

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