The Sustainable Hotel: Business Plan and LA 2028 Impact Analysis

This report details a business plan for The Sustainable Hotel (TSH), a small-scale hotel in Los Angeles, focusing on its strategic response to the upcoming LA 2028 Olympics. The plan analyzes TSH's current business model, including its products (rooms, restaurant, and additional services), sustainable operational methods, mission, and value proposition. It identifies relevant trends in the American hotel industry, such as the demand for authentic local experiences and sustainable practices. The report explores business opportunities related to the Olympics, including partnerships and guest experiences. It examines the potential impact of the LA 2028 on TSH's value proposition, staffing, operations, and financial management, including a financial statement. Two possible scenarios for responding to increased demand are considered: franchising and property acquisition, with the latter being the chosen strategy, justified by the ability to maintain service standards and control. The plan also includes a financial management strategy to transform the hotel into a listed company.

Running head: BUSINESS PLAN
The Sustainable Hotel-A business plan
Name of the student
Name of the university
Author Note:

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Executive Summary:
Hotel industry is one the booming industries in the world. The industry attracts both international
hotel chains as well as SME hotel chains. The SME hotel chains can generate immense revenue
by providing superior and affordable services to customers. Tourists today are not satisfied with
the material aspects of the hotels like their brand value. They want to experience the authenticity
of the destinations. The hotels like the SME hotel in the study named The Sustainable Hotel can
ensure superior customer experiences by enabling the tourists enjoy the authentic experience of
LA, the USA where it is located. The hotels can take advantages of events like the LA 2028 by
making arrangements for the tourists experience the events and generate high revenue.

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Table of Contents
Introduction:....................................................................................................................................3
The current business- The Sustainable Hotel:.................................................................................3
Preliminary information:.................................................................................................................3
Products:......................................................................................................................................4
Sustainable operational methods:................................................................................................4
Mission and Vision:.........................................................................................................................5
Value proposition of the business:...................................................................................................5
Employment of the current staff:.....................................................................................................5
Relevant trends in the American hotel industry:.............................................................................5
Related business opportunities which may exist till LA2028 and after that:..................................6
Potential impact of LA 2028 on the different areas of operations of TSH:.....................................6
Value proposition:.......................................................................................................................6
Staffing:.......................................................................................................................................6
Operations:...................................................................................................................................7
Guest appearances:......................................................................................................................7
Financial management:................................................................................................................7
Possible scenarios how the business could respond to LA2028 Olympics opportunity:................7
Franchising:.................................................................................................................................7
Acquisition of properties:............................................................................................................7
Chosen scenario:..............................................................................................................................7
Justification to support the choice:..................................................................................................8
References:......................................................................................................................................9

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Introduction:
Entrepreneurial ventures usher several benefits to the market. Dhaliwal (2016) while
mentioning the importance of entrepreneurs and entrepreneurial ventures mentions, ‘The
entrepreneur who is a business leader looks for ideas and puts them into effect in fostering
economic growth and development. Entrepreneurship is one of the most important input in
the economic development of a country.’ Lecuna, Cohen and Chavez (2017) mention that,
entrepreneurs recognize the needs of the customers which are either not met or met partially by
the existing firms. These unmet customer needs act as gap which stimulate the entrepreneurs to
launch new business venture to fill the gap by introducing new products. Thus entrepreneurial
ventures usher new products which meet new needs of the customers and generate more revenue.
As entrepreneurs employ people to operate their businesses, they create employment
opportunities. The entrepreneurial firms pay taxes to the government and lead to increase in
revenue governments earn from corporate taxes. Thus, one can establish that entrepreneurial
ventures usher a host of socioeconomic benefits due to which they are encouraged by both
developed economies and emerging economies. The aim of the paper would be exploring the
business plan of an imaginary existing entrepreneurial hotel firm called The Sustainable Hotel or
TSH which is located in Los Angeles, the United States of America. The hotel is an SME. As per
the American laws, an SME is defined as a business organization employing less than 500
employees (Stats.oecd.org. 2020). The market opportunity which the hotel firm is looking
forward to exploit is The Olympic Games 2028 which would hosted in LA (Olympic.org. 2020).
The paper would mainly revolve around strategies which TSH would take to take advantage of
the LA 2028 and sustain strongly in the market even after the closing of the event.
The current business- The Sustainable Hotel:
Preliminary information:
The Sustainable Hotel is a small scale hotel firm located in Los Angeles. The firm
follows a sole proprietorship format. The firm owns two properties in Los Angeles which
provide superior accommodation and food services. The firm was founded in 2019.

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Products:
The hotel provides budget accommodation services and mainly serves the middle class
customers. The product umbrella of the hotel consists of rooms, restaurant and bars and
additional facilities. The hotel provides small and large sized rooms at affordable budgets for 1 to
5 people. The rooms have all the modern facilities like air conditions, room services and wifi.
The restaurant and bar services of The Sustainable Hotel offer dishes from different
countries. The restaurant of TSH keeping the high ethnic population in the US in consideration,
offer dishes from several countries like China, India, Japan, Thai, Mexican and European,
besides American dishes (Census.gov. 2020). The bars would serve liquor of different countries
like France and Portugal.
The additional services which The Sustainable Hotel would provide to its guests would
aim to create more value to them. The additional services would consist of swimming pull,
gymnasium, parks, baby sitter services, laundry, local sightseeing services, guest pick and drop
services and foreign exchange services.
Sustainable operational methods:
The hotel upholds its name in different aspects of its operations including accommodation to
human resources planning. The hotel in order to make the dishes, procures raw materials like
cream, vegetables and raw meat from local firms. Thus, the hotel contributes to to revenue
generation in the local supply chains. The firm obviously acquires certain exotic spices which
have to be imported from other nations, from international retail chains to maintain tastes in its
dishes. The firm employs personnel and thus, creates employment opportunities. Thus, in short
the firm encourages socio-economic development in the local communities in LA. The
Sustainable Hotel recycles its wastes and reuses portions of its wastes to the feasible extent. The
firm recycles wastes biodegradable wastes by sending them into a local bio-fertilizer plant to be
converted in fertilizers and used in agriculture. As far as the financial operations are concerned,
the company has earned a net profit after tax of $ 12159200. The firms aims to higher revenue
and net profits in the coming years as shown in the financial statements attached.

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Mission and Vision:
The mission of The Sustainable Hotel is to generate higher profits by providing superior
accommodation and food services to customers. The firm also aims to operate in sustainable
ways to create value for the environment and the society at large.
The vision of TSH is to emerge as the leading hotel chain in LA and then finally expand
into the other American markets like New York City. The firm in the long run envisions listing
itself on the NYSE and transforming into a listed company to support its growing business needs.
TSH at all stages of operations aims to exhibit high levels of corporate governance in order to
create value for its stakeholders, both internal and external.
Value proposition of the business:
The Sustainable Hotel creates value for its stakeholders by by providing superior
accommodation and food services. The firm aims to create value by operating in sustainable
ways. It also aims to exhibit high levels of corporate governance by complying with ethics and
laws.
Employment of the current staff:
The Sustainable Hotel employs staff in its front office departments and back office
departments. The front office departments include the reception, the room services and F&B
services. The back office departments include the finance department, the marketing department,
the HR department, the IT department, the admin department and the procurement department.
The firm at present employs around 50 employees in all these departments. The firm would
employ more staff members to support its increasing business needs.
Relevant trends in the American hotel industry:
The American hotel industry is experiencing several trends which are having deep impacs
on the hotels. First of all, the customers today want to experience the stay not in the hotel but
also in the local destinations. They want to experience to aspects of the destinations like ther
authentic culture, dishes and lifestyle of the local population (Paulauskaite et al. 2017). The
second trend which is impacting the hotel industry is that the tourists expect the hotels to operate

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in more environmentally sustainable ways (Fromm 2020). The third trend which is impacting the
hotel industry that consumers are using technology to avail hotel services to increasing extent.
The customers today prefer making online payments to pay for the hotel and accommodation
services (Sun 2017). These trends are compelling the existing hotels like TSH to modify their
modes of operations to ensure higher level of customer satisfaction and generate higher revenue.
Related business opportunities which may exist till LA2028 and after that:
The business opportunities which would exist till LA 2028 and after that as per the
emerging trends recognized above would be creation superior customer experiences and
developing it further. The firm during the commencement of LA 2028 should enter partnerships
with transportation firm providing cab and bus services. The firm would enable the guests who
would be staying during the Olympics to travel to the venues in cabs or buses to experience the
games. Similarly, hotel would install large screen televisions in the hall and lobbies to watch the
guests watch the games. TSH post closing of the Olympics 2028 would arrange for conducting
local tours to the Hollywood studios, for which Los Angeles is famous.
Potential impact of LA 2028 on the different areas of operations of TSH:
Value proposition:
The LA 2028 would enable TSH to create more value for the community. This is because
during the event, TSH would be able to serve more guests and generate more revenue. It would
have to procure more raw materials. This way the firm would be able to create more revenue
generation for the local suppliers. Similarly, the firm would have to acquire more staff to support
the increasing operational needs during LA 2028. Thus, TSH would be able to generate more
employment opportunities. Thus, the LA 2028 would enable the firm create more value for its
stakeholders like suppliers and employees.
Staffing:
The firm during the LA 2028 would be able to employ more employees to serve its
increasing number of guests. Thus, it would be able to create more employment opportunities.
Moreover, owing to serving more guests, the firm would be able to generate more revenue. It
would also a result be able to pay more salaries and incentives to the employees.

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Operations:
The operations would be able to generate revenue through its operations by serving
guests both from within the US and foreign countries. This would enable the firm to generate
more foreign revenue.
Guest appearances:
The Sustainable Hotel may arrange for hiring a famous sports personality to market its
accommodation during LA 2028. This would enable it attract more consumers during the event.
Financial management:
The Sustainable Hotel would aim to transform itself into a listed company prior to LA
2028. This financial management strategy would enable the firm to generate capital by issuing
shares in the share market to support its operations during and after LA 2028.
Financial statements attached.
Possible scenarios how the business could respond to LA2028 Olympics opportunity:
The two possible scenarios in which the firm could respond to the increasing numbers of
customers which it would receive during the event are as follows:
Franchising:
The firm can entire into franchisee contract with owners of hotel and accommodation
properties. This would enable it to use their properties under its own brand name to serve
customers during the event (Krupskyi et al. 2017).
Acquisition of properties:
The Sustainable Hotel would acquire its own properties under its own brand name. These
newly acquired properties would accommodate the increasing numbers of guests the hotel would
receive during the LA 2028.
Chosen scenario:
The chosen scenario would be acquiring properties under the brand name of TSH.

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Justification to support the choice:
The acquisition of properties is more justified compared to as it would enable the
company keep control on its standard of services. This would ensure superior services to the
guests and more revenue generation (Lu 2019).

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References:
Census.gov. 2020. Census.Gov. [online] Available at:
<https://www.census.gov/quickfacts/fact/table/US/PST045218> [Accessed 26 March 2020].
Dhaliwal, A., 2016. Role of entrepreneurship in economic development. International Journal of
scientific research and management, 4(6), pp.4262-4269.
Fromm, J., 2020. Forbes.Com. [online] Forbes.com. Available at:
<https://www.forbes.com/sites/jefffromm/2020/02/06/how-modern-consumers-are-redefining-
the-hospitality-industry/#3563b7fa7745> [Accessed 26 March 2020].
Krupskyi, O.P., Stukalo, N., Krasnikova, N. and Falko, Y., 2017. Franchising model for
expansion of the international travel business. Problems and Perspectives in Management, 15(4).
Lecuna, A., Cohen, B. and Chavez, R., 2017. Characteristics of high-growth entrepreneurs in
Latin America. International Entrepreneurship and Management Journal, 13(1), pp.141-159.
Lu, T.L., 2019. Opportunities of Artificial Intelligence in Hospitality Industry for Innovative
Customer Services. Case: Hotels in Ho Chi Minh City, Vietnam.
Olympic.org. 2020. Olympic.Org. [online] Available at: <https://www.olympic.org/la-2028>
[Accessed 26 March 2020].
Paulauskaite, D., Powell, R., Coca‐Stefaniak, J.A. and Morrison, A.M., 2017. Living like a local:
Authentic tourism experiences and the sharing economy. International Journal of Tourism
Research, 19(6), pp.619-628.
Statista.com. 2020. Statista.Com. [online] Available at:
<https://www.statista.com/statistics/208133/us-hotel-revenue-per-available-room-by-month/>
[Accessed 26 March 2020].
Stats.oecd.org. 2020. Stats.Oecd.Org. [online] Available at:
<https://stats.oecd.org/glossary/detail.asp?ID=3123> [Accessed 27 March 2020].

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Sun, J., 2017, February. Study on the Framework Construction and Constructive Approaches of
Smart Tourism Service System in Liaoning Province. In 2016 2nd International Conference on
Education, Social Science, Management and Sports (ICESSMS 2016). Atlantis Press.