And this one is ambushing the investor at the very beginning of the project - interaction with public authorities. First difficulties are waiting for the investor at the stage of selecting a land site. The land issue has not been finally settled in Ukraine yet. During first ten years the privatization processes were not supported by land sales which caused a disputable legal situation when an investor cannot be sure that the chosen land site will belong to him/her. Buying and re-constructing existing buildings can be an attractive option in this case but its advisable to keep in mind that more than 60 of materials and equipment for hotel re-construction should be imported from abroad. Because of high customs duties the materials are 40 more expensive than average in Europe. Additionally, most of the re-construction projects include the obligation to preserve the original front of the building which again brings the cost approximately 25 higher.
New 170 million Cortex development to add hotel
Businessmen often do not research because of expenses or underestimation of its importance. For example, the festival hotel market in the capital city is characterized by high saturation but at the same time potential consuming power of the market is much stronger. According to experts, its necessary to build at least 40 new hotels of different class to meet the demand in kiev. Adding six more 5-star hotels will make essay it possible to meet the demand for first class hotels. The demand for business class hotel rooms is much higher the market could accept more than 20 3-star and 4-star hotels. The same applies for the famous tourist centers of Ukraine odessa and Yalta could ensure crowding of high class hotels due to their tourist attractiveness. In other regions the market is also far from being saturated but building 5-star and 4-star hotels there might not be reasonable. A 3-star hotel could be the most adequate option there as the consumer of the hotel services at a regional level is determined by the domestic tourist flows which would not accept high accommodation costs. Though remaining specific, the above listed challenges in general could be overcome by employing international business development standards, market researches, business planning and long-term investment prospects as any national peculiarity can be adequately responded by a thoroughly considered action. Unfortunately, an investor can start solving all these issues only after the main obstacle has been passed.
The issue of low-quality service is quite frequently addressed in the ukrainian hotel sector and owes its topicality to the steadfastness of the old soviet general approach and the absence of a new European skill policy as such. Thus a worthy investor decision will include not only financial investments but also investments in forms of service standards and personnel training policies. Franchising looks the most attractive hotel sector development strategy in this situation. It presumes implementation of an internationally known brand with settled conceptions of a famous company. Such decision will definitely be successful as it is based on a number of advantages: personnel training, style building, corporate rules, qualified management and development according to international standards, as well as attracting additional customers through the famous brand. As most hotels experience problems with high level management, the experts of such level in the hotel business have no right to make mistakes, as even a minor incompetence of management can cause unpredictable consequences. When looking for a hotel business basis, it is necessary to research and assess the market of this industry.
Lower rates of building of new hotels made it possible to implement too high prices (higher by 30-50 compared to west European capitals hotel markets though room conditions and quality of services in many of them are under generally accepted international standards. To justify high prices for rooms hotel owners use a traditional technique for developing countries overrating. The hotel owners admit that prices depend on the demand-to-supply ratio. Thats why, taking into account the shortage of hotels of all categories in kiev, the prices could be type accepted as economically grounded, especially because the market tolerates them so far and there is no serious competition in either of the business segments. Thus the hotels often build their development policies not on service quality improvement but on further rising of prices. 300 per night is enough to enjoy the blue danube from a window. Hilton, a 5-star hotel in Budapest. It will be even cheaper if you book in advance. The five-star hotel in kiev can hardly provide its customers proposal with a similar view but staying in it will be more expensive per night.
According to data of the national tourism Agency there are 1064 certified hotels in Ukraine 5 of which are five-star hotels: 2 of which are in Dnipropetrovsk, 1 in kiev, in Donetsk and Odessa. The rest of them are: 29 4-star hotels, 74 3-star hotels, 43 2-star hotels, 41 1-star hotel. The major part of the 4-star hotels is in Odessa 9 of them, 6 in kiev, 4 in Dnepropetrovsk region, 4 in lviv region, 3 in Crimea and one in each of Donetsk, zakarpatska, poltavska regions. The situation arisen in this sector made the tycoons of the national hotel business take paradoxical decisions instead of taking measures to re-construct buildings and improve personnels qualifications they just perform minor decorations and raise prices making an amazed tourist pay european prices for the. Currently, there are only two four/five-star hotels in the capital city that offer rooms for more than 250 per day and meet the western standards. Besides the radisson sas hotel represented by an international operator, thirteen new minor business class hotels have been built for the last two years, including one 3-star hotel and six 2-star ones. At the same time, the number of tourists and visitors coming to the country increases every year, so the shortage of economy class rooms will also keep growing.
Small, business Plan, sample
The number of customers staying in paperless hotels is directly determined by the volumes of domestic and foreign tourism. At the same time development of the tourist business is orientated summary on the tendencies in the hotel sector. The volume of business tourism in the country increases every year due to the growth of the investment attraction of the ukrainian economy. Additionally dependence on the human factor makes this sector extremely sensitive to public opinion and reputation. A single case of poor servicing can result in losing customers.
Thats why major hotel chains consider a strict control over proper quality standards to be one of their basic aims. Odessa, a 4-star hotel in the city of Odessa, can illustrate unreasoned investment with the expectation of attracting a famous hotel operator. At the very moment when the hotel had been built and was about to start functioning as a 5-star hotel within the world known Kempinski chain, it was discovered that low-quality construction works did not meet the kempinski service level requirements. After that operator had left the project hotel was demoted to the 4-star category. The market of hotel services also acquires additional, absolutely unexpected properties in the ukrainian business environment.
During the assessing of this investment project two scenarios of implementation were used: pessimistic and optimistic. The distinction among scenarios is concluded in offering of different occupancy of hotel rooms, and accordingly, the calculations were performed under the new indicators. Thus, the average annual occupancy at the pessimistic forecast amounts to at the optimistic * of maximum possible. During the process of project estimation its accordance to the different criteria of acceptability was verified and also the analysis of its basic parameters and variants was performed. The hotel industry is one of the most attractive markets in Ukraine to make an investment. Having survived the acute crisis of the nineties caused by structural, political and economic changes in the countrys economy the industry is currently characterized by a high level of business activity.
Unsurprisingly the current situation in the hotel business market is highly interesting for potential investors: ever-increasing demand is accompanied by supply deficit. The inflow of tourists increases by 15-20 every year according to the promotion of new style ukraine in the world as well as its accentuated European devotion. The occupation rate of hotels is unbelievable,. Radisson sas, a 4-star hotel in kiev built in autumn 2005, has exceeded all expectations bringing its occupation rate to 82 within the first weeks following its opening. However, the general average level of utilized capacity of the hotel sector in the country is relatively low 31 in Ukraine and 56 in kiev. These contradictory data give grounds for assuming that the hotel business sector in Ukraine is far from being transparent and has to be thoroughly studied and analysed. First of all, the hotel sector is a completely customer orientated sector which directly depends on tourist industry and business activity in the country. The hotel business and tourism develop in interaction which clearly displays itself in promoting each other as well as depending on each other.
Pueblo baseball stadium: City wants business plan from
Are served in café. Due to the daddy construction and competent planning the house consumes very little energy for hitting and in the autonomous version can be completely energy independent. In 2013 Sochi was visited by * mln people, and in 2014 through the Olympiad and implementation of deferred demand the increasing of tourist flow is expected. It can lead to straightening of competition among hotel operators. Approximately * means of accommodation with total number of rooms about * thsd were constructed by the Olympiad. Herewith * hotels and sanatoriums are diary classified thsd of rooms) in the city. Thus, through the Olympiad the total number of rooms of Sochi was replenished by more than 60, which is a significant growth for such short period. Twenty developed and reconstructed by the Olympiad hotels belong to categories of 4* and 5 herewith * of them is under the management of international hotel operators.
A full set of necessary services included: a large bed, complete bathroom, living room, kitchen block, the work area. There is, as assumed, a hairdryer, tv-set, mini-bar, conditioner, smoke detector wi fi, etc. Block-reception is combined with the household unit. The total area is approximately *. The front desk with a waiting area is situated in resume the block. The household part is the storage of clean linen and detergents as well as the premises for personnel. The placement of café with not large end-cooking kitchen is possible as an application or in case of absence on the adjacent territory. Only the light appetizers, packaged salads, coffee/tea, sandwiches etc.
Krasnodar Krai are the industrial, construction, fuel and energy complexes, field of information and communication technologies as well as agriculture, transport, tourist, resort and recreation complexes. The last three directions (agriculture, transport, tourist, resort and recreation complexes) are appropriate for the social and economic development of Russia and determine the especial status of Krasnodar Krai and country economy. The natural and climatic conditions of the region which are unique for Russia, presence of advanced medical facilities and technologies, historical sights create the potential for development of highly-efficient, competitive tourist and recreational complex of international level which forms the positive image of the country. Krasnodar Krai is the warmest region in Russia; the average time length when the sun weather is obtaining in the daytime on the territory of region is 2 300 hours per year; through a combination of favorable climatic conditions and presence of deposits of mineral waters. The leading industries by attracted investments are transport and communications, agricultural, sanatorium and tourist complexes which determine the priorities of regional economy. Components of the hotel: houses-cottages. Inside area is * sq m (corresponds to the category of 3 stars).
«Futteralhaus» are the mobile compact energy efficient and environmentally friendly houses. They are made lined from natural materials and available for year-round living of family consisting of 1-6 members. Ecological friendless of construction means the usage of natural and simply materials only which are available for secondary processing. Uniqueness of project economy. The cost of one cottage amounts to 22 thsd eur, which is lower in 14 times then the cost price of construction of one hotel room in this region. Indicators of project efficiency (as a result of performed calculations with accounting of 2 scenarios). Indicators of Project Efficiency, optimistic Scenario, pessimistic Scenario. Npv (thsd rub) 21,925 5,689, irr.65.32,.63.16, pBP (years).39.26, dpbp (years).56.21, excerpts from Research: The project uniqueness will mean the same distance from Sochi, krasnaya poliana and Olimpic cluster in Imeretinka (the territory with highly developed infrastructure). In the Adler district the sanatorium sphere of service is developed.
Director of Business development, Asia
Adaptation of this business plan is possible for similar project around the world. Project Description, project Idea: construction of eco-hotel (complex) on the territory of Krasnodar Krai (Sochi forest array. The construction is carried out by the unique revelation technology with application of ecological buildings (houses cottages). Project Target Audience: people for which the environmental friendliness and simplicity of residential premises have a priority; young families; people wanted to rest near the beach and native environmental (forest) simultaneously; fishermen and tourists; youth companies; sports teams (ski and snowboard) for period of november-April. Key project idea: the opportunity of leaving in the environmental zone, among forest array, in secluded cottages where the sea view is opened from windows of each of them. Residential buildings of the complex: houses-cottages of «Futteralhaus» company (Germany) production. Amount of houses on lot.