MNG00314: Venture Proposal for Sheraton Grand Sydney Hyde Park Hotel

This project is a comprehensive venture proposal for the Sheraton Grand Sydney Hyde Park Hotel, focusing on innovation and investment. It begins with an executive summary highlighting the need for increased security through CCTV camera installation in renovated rooms. The proposal outlines the hotel's current operations, management structure, and legal framework, emphasizing divisional organizational structure and relevant legal parameters. It includes an operations management section detailing renovation plans, marketing strategies targeting business travelers and families, and a competitor analysis. The financial analysis covers key risks and challenges, presenting the financial parameters for the venture, along with a detailed marketing strategy including the use of social media and mobile apps to reach the target audience. The project also discusses the competitor market and strategies to distinguish the venue from its competitors, concluding with references and a bibliography.

Running head: MANAGEMENT
Venture proposal for Sheraton Grand Sydney Hyde Park
Name of the student:
Name of the university:
Author note:

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Executive summary
Sheraton Grand Sydney Hotel Hyde Park is one of biggest hotels under Mariott
Group. This is in terms of the revenue, which is achieved through the rooms, which are filled
with modern day amenities. This report develops a marketing plan for the venture Hyde Park
hotel rooms, where it has been proposed that CCTV cameras is to be installed for the security
of the guests. The plans, programs and policies would be shared through social media for
expanding the customer base. Budget acts as an agent in terms of enhancing the awareness
towards the need for additional resources. Risk assessment has been done for reflecting on
the challenges, which obstructs the process of venture planning.

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Table of contents
Introduction................................................................................................................................3
Description of the entrepreneurial venture.................................................................................3
Management...............................................................................................................................4
Legal structure........................................................................................................................4
Operations management.............................................................................................................6
Marketing...................................................................................................................................8
Target Audience.....................................................................................................................8
Communication strategy........................................................................................................9
Competitor analysis....................................................................................................................9
Analysis of the competitor market.........................................................................................9
Distinguishing the venue from the competitors...................................................................10
Financial analysis.....................................................................................................................10
Key risks and challenges..........................................................................................................12
References................................................................................................................................14
Bibliography.............................................................................................................................16

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Introduction
Venture proposal is a means for assessing the scope and arena in which the business
would be implied. In this context, the main themes are maximizing the use of the revenue of
an underutilized space in the hotels or increasing the revenue and design of the food and
beverage outlets. This is done through the means of causing the advent of innovation, which
are of four types- invention, duplication, extension and synthesis (Akbar and Tracogna 2018).
This assignment conducts an assessment of whether Sheraton Grande Sydney Hyde
Park is appropriate for extending the scope and arena of the business of the Marriott group.
The focus would be on management and marketing strategies adopted by the hotel for
achieving higher competitive advantage. Financial analysis is one of the other components,
which attains a crucial position in the assignment. Identification of the key risks and
challenges is beneficial in terms of measuring the approach towards fulfilling the needs,
demands and requirements of the clients and the customers.
Description of the entrepreneurial venture
Situated opposite to Hyde Park, Sheraton Grand Sydney Hyde Park offers
mesmerizing view and experience to the clients and the customers of St. Mary’s Cathedral
and Middle harbour. The site is a hub for the brands to increase their revenue and profit
margin. As a matter of specification, the hotel provides quality accommodation facilities,
which includes 17 flexible function rooms, rooftop health club, indoor heated pool and spa
(Marriott.com 2019). The customers’ rating are high, which indicates positive word of mouth
advertising. Mention can be made of the Sheraton Club Lounge, which enhances the
accessibility issues for the clients and the customers in terms of catering to the basic
entertainment needs.

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In this context, the business venture which is considered is that of Hyde Park, where
the colour of the rooms have been changed. The colour scheme relates to subtle celadon
green and grey tones blended with stained, natural oak timber furniture and lush fabric
upholstery. All total, there are 558 spacious fully furbished guest rooms, which includes 48
suites (Marriott.com 2019).
Management
Legal structure
Fig: Organizational structure of Sheraton Grand Sydney Hyde Park
(Source: Marriott.com 2019)
Management of hotel includes managing the performance of the staffs, monitoring the
operations, upkeep of the facilities provided to the clients and the customers, marketing
management, revenue management, sales management, financial accounting, purchasing and

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others. As a matter of specification, divisional organizational structure is practiced in the
workplace of Sheraton Grand Sydney Hyde Park. Various departments are entrusted with the
responsibility to management the operations. Within this, Wikhamn (2019) is of the view the
legal parameter is a strong one, which enhances the efficiency. Specific mention can be made
of the Federal security laws, which includes RevPAR, profit margin, emerging trends,
lodging properties, potential investment, share repurchases, dividends, mergers and
acquisitions and others.
Business
structure
Pty Ltd
company
Sole trader Partnership Trust
Legal
paperwork and
rules
 X  
Expense of
maintenance
X   
Personal
liability
protection
 X  X
Tax benefits X X  
Business
registration
   
Table 1: Advantages and disadvantages of legal structures
(Source: Birinci, Berezina and Cobanoglu 2018)
Hyde Park is a government authorized property of Mariott Group. Governmental
supervision is assistance for the hotel staffs in terms of enhancing the legal parameter.

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Specific mention can be made of the liability and debts. Risk assessment strategies are
fruitful for dealing with the reimbursement revenue costs, merger related costs and charges,
data security incident costs, gains and losses on dispositions claimed on the joint ventures.
Registration adds authenticity to the business plans, programs and policies. Reporting of the
GAAP measures is assistance for conducting audits and reviews. According to Warren,
Becken and Coghlan (2018), expanding the capital share through sponsorships and
exhibitions would be apt for improving on the profit margin.
Cost of Pty Ltd Reporting requirements Registration
Venue registration Annual tax, GAAP Australian Securities and
Investment Commission
Project number - Australian Business Number
(ABN)
Goods and Service Tax
(GST)
Budget Annual turnover
Table: Australian Securities and Investment Commission
(Source: Asic.gov.au 2019)
Operations management
The operations of Sheraton Grand, Sydney are divided into five parameters, which are
luxury, lifestyle, convention hotels, collection hotels and resorts. The Operations managers
delivers the instructions to the staffs for catering to the specific needs, demands and
requirements of the guests in terms of lodging, fooding and others (Marriott.com 2019).
Recreational facilities like spa, rooftop pool are also provided for influencing the purchasing
power and decisions of the guests. According to the reports of 2015, the renovation costs are
as follows:

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Guest rooms 18points
Bathroom 15.9 points
Intent for recommendation 9.0 points
RevPAR index 7.2 points
Franchisee alignment comprises of the aspects of brand positioning, which needs
improvement in the operations. This can be done through the means of strategizing the
designs strategy. Acquisition of the change management strategies would be fruitful in terms
of communicating with the clients and the customers. In this context, evolution of the brand
identity is needed for attaching proper placement to the renovation of the Hyde Park.
Renovation expenditure parameters includes facilities of the guest rooms and public space
(Marriott.com 2019). This is an opportunity for Grand Sheraton in terms of altering the
scenario of Hyde Park. In this stage, one of the issues is the declining standards of the design
strategy. Cost and inflexibility can add to the complexities of implementing the renovation
programs.
The example of night stay can be taken for enhancing the awareness about the
extensions, which have been applied in the rooms of the Hotel. Typical evidence of this lies
in the 5% increase. Re-evaluation of the overhauled design standards is needed for assessing
their effectiveness towards expanding the customer base. One of the effective strategies in
this context is elimination of the older properties. Investments from the owners is assistance
in terms of adding additional facilities into the guest rooms (Marriott.com 2019). For
example, CCTV cameras can be installed in the rooms for enhancing the security of the
guests during their stay, especially the night time. The intercoms in the rooms needs to be

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checked for detecting whether there is any defect. Therefore, maintenance costs prior
evaluation at the stage of planning for the renovation.
Marketing
Target Audience
The proposed renovation in the guest rooms targets mainly the business travellers
and families. Along with this, the target audience also includes the guests, who are tech
savvy. This is because the information about the renovation programs would be disseminated
through website notification and social media.
Fig: Target market analysis for Sheraton Grand Sydney Hyde Park
(Source: Marriott.com 2019)
As Australia is a business hub, the number of guests would be more, indicating the
need for more amenities and facilities. These customers are fluent with the usage of the social
media, so the number of visitors would be more, indicating upgraded brand loyalty. These
businesspersons belong to aristocratic society, which reflected the possession of cars, which
would probably bring. Therefore, along with the room facilities, the parking facilities are to
be improvised. As the Hotel possesses electric car parking facilities, the staffs need to make
the guests aware about the specific mechanisms.

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If the case of the families is taken, the expenses behind CCTV cameras plays an
important role. In this context, mention can be made of complimentary milk services along
with tea and coffee, which would be advantageous for the families coming to spend vacation
in the threshold of Sydney, Australia.
Communication strategy
Adopting the means of social media would assist Sheraton Grand Sydney Hyde Park
Hotel to disseminate the information of renovation programs to the clients and the customers.
Specific mention can be made of Facebook, Twitter and Snapchat, which would assist in
improvising on the customer relationship management. Google AdWords and Search Ads
would simplify the process of keyword search, addressing the specific concerns of the guests
regarding availing the room services. Along with this, mobile apps would also be a part of the
communication strategy of Sheraton Grand Sydney Hyde Park Hotel in terms of easing the
accessibility issues. App media would be a latest attraction in terms of promoting the brand in
the local as well as international markets.
Competitor analysis
Analysis of the competitor market
The accommodation aspect is strong for Sydney. This includes the increased demands
for rooms. Absorption of the supplies add value to the domestic and international market
operations. Continuity in the limitations of new supply, renovations in the rooms have all
total there are 53227 rooms in the pipeline, which are lined up till the 2028. For this, 305
projects have been planned. The accommodation sector encountered a growth in the Average
Daily Rate (ADR) and RevPAR (Tourisminvestment.com.au 2019). In case of 2018, the
supply of rooms grew by 2.0% and the 1.8% for the demands. This increase projected a
decline in the overall occupancies by -0.2%. In terms of RevPAR, Sydney and Melbourne
topped the list. Mention can be made of the Gold Coast, which encountered highest growth
rate.

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Queensland is considered to be the most active in the parameters of hotel investments.
The market is stable with productive investments of $491 million, which are made on counter
cyclical plays with focus on improving the accommodation fundamentals in Brisbane and the
pre-existing trade practices in the leisurely accommodation facilities
(Tourisminvestment.com.au 2019). On the other hand, volumes in the sales advertisements
were solid in case of New South Wales and Victoria. Northern Territory witnessed single
investments with Delaware taking the acquisition of Darwin casino.
The main competitors of Marriott Group are Courtyard, Crowne Plaza, Hyatt, Orien
Express, Sheraton and others.
Distinguishing the venue from the competitors
Top line guest experience and a premium location are the aspects, which makes
Sheraton Grand Hotel Sydney Hyde Park from the competitors. Located at the heart of the
city, the guests get a mesmerizing view of the scenic beauty. The first impression of the Hyde
Park Hotel is indeed grand. Availability of homely taste in the cuisines and beverages
expands the customer base. One of the interesting facts is the close proximity to the Opera
House, enhancing the brand loyalty of the Hotel (Tourisminvestment.com.au 2019). Along
with this, mention can be made of the renovation in the guest rooms, which comprises of the
added luxuries like that of smart black marble bathrooms. As Wi-Fi is free, therefore
installation of the CCTV cameras would be a planned and reasoned approach towards
enhancing the standards and quality of the hospitality services.
Financial analysis
Financial parameters of Sheraton Grand Hotel Sydney Hyde park comprises of debt,
equity, venture, capital, private placements, IPO’s, crowd funding and investors. Luxury in
the Marriott Groups hotels is perceived from the accommodation pipelines (Marriott.com
2019). The numerical values for this is as follows:

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Marriott International 568
Accor Group 342
IHG 271
Hyatt 181
Four seasons 132
Shangri-la 104
Hilton 103
Kempinski 81
IHCL 77
Banyan Tree 67
Training the front line employees would be one of the primary activities for causing
the advent of renovation in the rooms of the Hotel. The top level managers are to supervise
the performance of the managers in terms of providing the services according to the plans and
programs. One of the main aspects in this context is record keeping practices for the
transactions conducted. Financial reporting needs to include GAAP, data interpretation and
strategic planning. Karakaş, Bilgin and Yildiz (2019) opines that the department manager is
to be entrusted with the responsibility of managing and controlling the transactions of the
functional unit.
One of the areas of parameters in this context is that of revenue management, which
comprises of the strategies to maximizing profits. Return on investment can be calculated for
the venture, that is, through the consideration of return benefits and investment costs. This
approach would be assistance for the hotel staffs in terms of determining the prices of the
facilities. Along with this, Romero and Tejada (2019) argues that budget is also crucial for

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assessing the financial resources needed for causing the advent of renovations in the Sheraton
Grand Sydney Hyde Park Hotel rooms.
Criteria Estimated expense AUS$
Market research 60
Social media marketing 220
Marketing platform 50
Software usage 30
Recruitment (full time) 50
Recruitment (Freelance) 150
Recruitment (Part time) 100
Total 660
Key risks and challenges
According to the Tourism 2020, 6000 to 20000 additional rooms would be needed in
the capital cities of Gold Coast and tropical North Queensland. This is in terms of fulfilling
the increasing accommodation of the overnight visitor expenditure. The cost is estimated to
increase between $115 and $140 billion (Tourisminvestment.com.au 2019). As the
investments are solid, the innovation projects of the hotels is to be traversed according to the
recently acquired planning systems. Unless and until the architectural planning is conducted
and approval is gained, the risks of illegal scandals and issues hovers over the hotel. Along
with this, adherence to the tax obligations in RevPar is needed for escalating the revenue
scales and the profit margin in the parameters of accommodation.
Site holding costs are to be followed for proper maintenance of the venture that is the
Hyde Park. Meetings with the government would be essential in terms of gaining an insight

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into the current acquisition rates. The estimated holding costs in Sydney is $1.3 million,
which comprises of land prices and regulations (Tourisminvestment.com.au 2019). Apart
from this, competitors like Courtyard, Crowne Plaza, Hyatt, Orien Express, Sheraton and
others can impose high competition on Sheraton Grand in terms of providing quality
accommodation services. This step would act as a challenge if strategic planning is not
conducted. Specific mention can be made of the quality controls, which can avert customer
turnovers.

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References
Akbar, Y.H. and Tracogna, A., 2018. The sharing economy and the future of the hotel
industry: Transaction cost theory and platform economics. International Journal of
Hospitality Management, 71, pp.91-101.
Asic.gov.au 2019. About us. Available at: https://asic.gov.au/ [Accessed on 12th September
2019]
Birinci, H., Berezina, K. and Cobanoglu, C., 2018. Comparing customer perceptions of hotel
and peer-to-peer accommodation advantages and disadvantages. International Journal of
Contemporary Hospitality Management, 30(2), pp.1190-1210.
Karakaş, A., Bilgin, Y., & Yildiz, M. R. (2019). Impact of Managers’ Innovation Perception
on Innovation Activities and Innovation Strategies in Hotel Businesses. In Eurasian
Economic Perspectives (pp. 55-70). Springer, Cham.
Marriott.com 2019. About us. Available at:
https://www.marriott.com/hotels/fact-sheet/travel/sydsi-sheraton-grand-sydney-hyde-park/
[Accessed on 12th September 2019]
Romero, I. and Tejada, P., 2019. Tourism intermediaries and innovation in the hotel industry.
Current Issues in Tourism, pp.1-13.
Tourisminvestment.com.au 2019. Hotel industry trends. Available at:
http://www.tourisminvestment.com.au/en/research-insights/hotel-performance.html
[Accessed on 12th September 2019]
Warren, C., Becken, S. and Coghlan, A., 2018. Sustainability-oriented Service Innovation:
fourteen-year longitudinal case study of a tourist accommodation provider. Journal of
Sustainable Tourism, 26(10), pp.1784-1803.

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Wikhamn, W., 2019. Innovation, sustainable HRM and customer satisfaction. International
Journal of Hospitality Management, 76, pp.102-110.

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Bibliography
Hernández-Perlines, F., Ariza-Montes, A., Han, H. and Law, R., 2019. Innovative capacity,
quality certification and performance in the hotel sector. International Journal of Hospitality
Management, 82, pp.220-230.
Manning, C., deRoos, J., O'Neill, J.W., Bloom, B.A., Agarwal, A. and Roulac, S., 2018.
Hotel/lodging real estate industry trends and innovations. Journal of Real Estate Literature,
26(1), pp.13-41.