BHFM605 Financial Management for Tourism and Hospitality

BHFM605 Financial Management for Tourism and Hospitality

BHFM605 Financial Management for Tourism and Hospitality



The hotel owner is preparing the business plan for the new Gondola Hotel and he seeks yourexpert insights on preparation of the business plan. You are required to write a Report based onthe insights taken from the case study. The Report should address the points below with a focuson the profitability impacts, consistent with the spreadsheet required in section B.
Important: you are not required to answer each specific question in order but rather to includeresponses from which the owner will elicit key information for his Business Plan.
a. Advantages of operating a hotel in such a location
b. Disadvantages or challenges of operating a hotel in such a location
c. How could these challenges be potentially overcome?
d. What recommendations would you give to the designer of the hotel to enhance theproductivity, yield and profitability of the hotel once it is open?
e. Which 5 hotels would you include in the primary Competitive Set for the Gondola hoteland why?
f. Recommended target market mix
g. What tactics would you use to drive Room yield for the hotel that results in enhancedprofitability?
h. What specific revenue sources would you include within “Other Revenue” on the Profitand Loss?
i. Other than from hotel guests, what other sources of revenue could there be and howwould you attract that business into the hotel?
j. How would the operation of the Gondola business impact on the Gondola Hotel andvice versa?

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