Report on Business Activities in Hotel

HOSPITALITY
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
CHAPTER 2 ...................................................................................................................................1
Development plan...................................................................................................................1
CHAPTER 3....................................................................................................................................2
CHAPTER 3: FEASIBILITY PLAN..............................................................................................2
Inventory schedule (FIFO).....................................................................................................2
Depreciation Schedule............................................................................................................4
Forecasted Cash flow statement.............................................................................................4
Forecasted Income statement.................................................................................................5
Forecasted financial position..................................................................................................7
CHAPTER 4 .................................................................................................................................18
Suitability of new product and service.................................................................................18
SWOT ANALYSIS..............................................................................................................19
CHAPTER 5 .................................................................................................................................21
PESTLE analysis on development of product and services.................................................21
CONCLUSION..............................................................................................................................21
REFERENCES..............................................................................................................................22

INTRODUCTION
The term hospitality management plays vital role in order to provide the best
accommodation services to individual. The main aim is to provide improved hospitality services
to the guest. This is one of most established industry in the world. The present report will outline
the activities of the business activities in relation to hotels, which are providing its services to
travellers and backpackers in manner as budget oriented, sociable accommodation in which guest
can rent the bad for the specific period (Akroush and et.al., 2016). In addition to this, their
product of services as smart hostel and it's providing the shared accommodation to the random
travellers. In this the innovative approach about this is to offer concept like share
accommodation. The main aim is to provide modern services so that It will remain competitive
in the market. They are offering services as self check in system thus, it is helpful in order to
have increment in customer satisfaction. In this the customers are need to be targetted between
the age of 18 to 35, it is specially for student from school and universities. The services are
providing in the attractive packages so that they stay in hotel for the longer time. The present
report will be inclusive of activities as are development plan, porters five forces and SWOT and
PESTLE analysis.
CHAPTER 2
Development plan
This is need to be taken in order to bring changes in the features of the product and
services of the firm. The strategy is something which define how things are need to get done. A
good strategy will be helpful to develop the existing barriers in the firms and will be helpful in
relation to meet out the vision, mission and aims. This is helpful in order to taking advantage of
resources and emerging the opportunities so that things can be done effectively. There are
various kinds of strategy is need to be carried out so that function of the firm can be run in
effective manner. The smart hostel is using the product differentiation strategy so that individual
to the firm can get attracted towards the working of enterprise.
1. Product differentiation strategy- It is the kind of marketing process which works as to produce
those products which have some unique identity in the market. This will be helpful in relation to
capture the long term market share. With the help of this kind of technique the firm is able to
earn the large amount of profitability and productivity. The Smart hostel is providing the hare
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accommodation services to the backpackers and travellers, it is one of the attractive feature about
their services in the market.
CHAPTER 3
CHAPTER 3: FEASIBILITY PLAN
To initiate the hospitality activity there will be initial need of funds which will be helpful
in meeting the operational requirements. Therefore, there can be adequate development of plans
policies which will be fruitful to Smart Hostel as to have unique development of business
activities. Moreover, the professionals at Smart Hostel have planned to initiate the business plan
with £350 million. Therefore, it has been analysed here that the business must make adequate
increment in the plans and policies which will be helpful as per improving the operational
activities. Moreover, the following reports are based on forecasted and it has been assumed that
the business will have appropriate gains (Financial feasibility, 2018). Similarly, there has been
adequate gains and profits which in turn helps in improving the operational feasibility as well as
business efficiency. Thus, it has been assumed here that the business will have appropriate gains
as per the balancing the costs in a most effective manner.
Inventory schedule (FIFO)
INVENTORY SCHEDULE (FIFO)
Year 1
Initial Balance Acquisition Consumption Final Balance
Qty Cost Qty Cost Qty Cost Qty Cost
Beg-
packer'
s 1,500 £98.00 980 £100.00 820 £105.00 1,340 £103.00
Single-
bed
room 2,000 £105.00 1,050 £110.00 950 £115.00 1,900 £110.00
Double
-bed
room 2,200 £220.00 1,150 £225.00 1,020 £228.50 2,070 £223.50
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restaur
ant 1,800 £250.00 780 £255.00 750 £260.00 1,770 £255.00
bunk
bed 1,000 £280.00 420 £290.00 400 £300.00 980 £290.00
£325.00 £880.00 £903.50 8,060 £878.50
Year 2
Initial Balance Acquisition Consumption Final Balance
Qty Cost Qty Cost Qty Cost Qty Cost
Beg-
packer'
s 1,500 £100.00 1,120 £115.00 920 £120.00 1,300 £105.00
Single-
bed
room 2,000 £110.00 1,500 £120.00 1,150 £125.00 1,650 £115.00
Double
-bed
room 2,200 £268.50 1,820 £280.00 1,650 £295.00 2,030 £283.50
restaur
ant 1,800 £320.50 1,320 £330.00 1,250 £335.00 1,730 £325.50
bunk
bed 1,000 £360.50 976 £380.00 870 £395.00 894 £375.50
£1,159.5
0
£1,225.0
0
£1,270.0
0 7,604
£1,204.5
0
Year 3
Initial Balance Acquisition Consumption Final Balance
Qty Cost Qty Cost Qty Cost Qty Cost
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Beg-
packer'
s 1,500 £120.00 1,320 £125.00 1,260 £130.00 1,440 £125.00
Single-
bed
room 2,000 £145.00 1,680 £165.00 1,480 £170.00 1,800 £150.00
Double
-bed
room 2,200 £320.00 1,980 £325.00 1,490 £330.00 1,710 £325.00
restaur
ant 1,800 £330.50 1,460 £348.00 1,350 £350.00 1,690 £332.50
bunk
bed 1,000 £395.00 945 £410.00 932 £420.00 987 £405.00
£1,310.5
0
£1,373.0
0
£1,400.0
0 7,627
£1,337.5
0
Depreciation Schedule
DEPRECIATION SCHEDULE
Year 1 Year 2 Year 3 Year 4 Year 5
Gross Asset £50,000.00 £65,000.00 £78,000.00 £86,000.00 £95,000.00
Depreciation of the Year £15,000.00 £16,500.00 £18,000.00 £22,300.00 £23,200.00
Accumulated Depreciation £1,500.00 £1,200.00 £1,400.00 £2,100.00 £2,200.00
Net Asset Value £33,500.00 £47,300.00 £58,600.00 £61,600.00 £69,600.00
LOAN SCHEDULE
Year 1 Year 2 Year 3 Year 4 Year 5
Initial Loan Balance £12,500,000 £14,850,000 £18,650,000 £20,250,000 £23,560,000
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