Business Proposal: HOTS Hotel Expansion into the New Zealand Market

This presentation outlines the HOTS Hotel's investment proposal for expansion into the New Zealand market. The document begins with an overview of the hotel's current operations in Singapore, highlighting the revenue per available room and the need for financial assistance to facilitate expansion. The proposal analyzes the potential of the New Zealand market, emphasizing its growing popularity and the shortage of hotel rooms, especially during peak seasons. It presents the hotel's current occupancy rate and revenue per room, followed by the importance of investment for business growth, including increased revenue and marketing opportunities. The presentation concludes by summarizing the benefits of the investment, emphasizing the high return potential due to market demand and the hotel's experienced management. References to academic journals are also included to support the analysis. This presentation is a valuable resource for students and professionals in entrepreneurship and business development.

ENTREPRENEUR
SHIP IN
CONTEXT
Subject code HAT201A

INTRODUCTION
•The hotel industry is an
attractive industry due to
the rate of return it gives.
•The HOTS hotel is located
in Singapore city.
•However, the management
wants to expand the
business to New Zealand.
•This requires investment
for which this presentation
makes a proposal.

OVERVIEW OF THE HOTEL
AND FUTURE LOCATION
•Currently the company is
operating in Singapore
where the revenue per
available room is $3333.
•This does not require in
kinds of financial
assistance.
•However, the growth
strategies of the company
to expand to New Zealand
and Australia.
•Financial assistance is thus
required so that new hotel
can be built in the chosen
areas.

KEY POTENTIALITY OF THE
CHOSEN AREA- NEW ZEALAND
•New Zealand is
becoming one of most
visited countries in the
world.
•The ministry of
business, innovation and
employment, the hotel
industry would grow in
the future.
•There exist shortage in
supply which becomes
more prominent during
the peak season.
•The country has come
up as the fifth most
beautiful places in the
world.
Strength of
the hotel to
make use of
the
opportunity of
New Zealand
market
Intention to
grow
Hardworking
staffs
Ambitious
Management
Experimental
attitude
towards
providing
better
experiences

CURRENT
PERFORMANCES
•Currently the hotel is
operating at 30%
occupancy rate.
•Per day room rent is
around $1000 per room.
•This allows the company
to earn a revenue of
$3333.
Operates
at 30%
occupanc
y rate.
$1000
per day
per room
rent.
The
revenue
is not
impressi
ve .

PROSPECTIVE GROWTH
STRATEGIES
Increase the
occupancy
ratio
Hotel chains
in New
Zealand
would allow
the company
to enjoy
more
demand
Increased
scale would
allow the
managemen
t to increase
profit.
Introduce a
different
team for the
marketing
and
feedback
collection
purpose

IMPORTANCE OF
INVESTMENT
•The investment is
important for the HOTS
hotel in order to expand
the business.
•The number of room will
increase and hence the
revenue of the hotel
•The hotel can also
invest on the marketing
of the business which in
turn would increase the
return of the investors.
Investment
Scaled up
operation
Higher
revenue
and
proportio
nately
reduced
cost

FUTURE SCOPE AND STRATEGIES
AFTER INVESTMENT
Year Reve
nue
Cost Profit
2018 1.9
Million
USD
0.6
Million
USD
1.3
Million
USD
2019 2.1
Million
USD
0.8
Million
USD
1.3
Million
USD
2020 2.7
Million
USD
1.2
Million
USD
1.5
Million
USD
2021 2.9
Million
USD
1.2
Million
USD
1.7
Million
USD
2022 3.1
Million
USD
1.3
Million
USD
1.8
Million
USD 2016 2018 2020 2022 2024
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
1.8
2
Profit (IN million USD)

WHY THE INVESTMENT DECISION
WOULD BE PROFITABLE
• Investment would
increase the scale
• Room occupancy
would increase from
30% to 80%.
• Allow the company to
increase productivity
Value Generation
• The cost would reduce
• The rent of room
would be $2000.
• Allow the company to
take advantages of
the opportunities in
terms of high demand.
Efficiency • Revenue would
increase and the cost
would decrease.
• Marketing would allow
the company to boost
demand further
Higher return to
the company and
the investors

SUMMARY
 Therefore, an investment in the HOTS
hotel would be beneficial for both the
hotel management and for the
investors.
 The higher return is confirmed as there
is an excess demand in the market of
New Zealand.
 The existing productivity of the hotel
staffs and management would ensure a
stable future performances.

REFERENCES
Aluri, A., Slevitch, L., & Larzelere, R. (2015). The
effectiveness of embedded social media on hotel websites
and the importance of social interactions and return on
engagement. International Journal of Contemporary
Hospitality Management, 27(4), 670-689.
Davidson, L., & Sahli, M. (2015). Foreign direct investment in
tourism, poverty alleviation, and sustainable
development: a review of the Gambian hotel
sector. Journal of Sustainable Tourism, 23(2), 167-187.
Santos, M., Brochado, A., & Esperança, J. (2016). Foreign
direct investment patterns of global hotel chains. Journal
of Business Research, 69(11), 5235-5240.
Mohsin, A., & Lengler, J. (2015). Service experience through
the eyes of budget hotel guests: do factors of importance
influence performance dimensions?. Journal of Hospitality
and Tourism Management, 23, 23-34.

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