Business Plan of Rose Gardens Guest House
Executive Summary
Introduction
The long term goal of Rose Gardens Guest House is to become the most popular choice in Bloemfontein for temporary lodging, by creating a differentiated experience and capitalizing on personal service. We will differentiate the Guest House by creating an environment of pampered luxury at a very competitive tariff. Expanding our exposure via the Internet will allow us to attract a wider network of customers.
The company
The Rose Gardens Bed and Breakfast will be a partnership, equally owned by Johan Rosevenor and Graig Marsh. Mr. Rosevenor will reside on the property to manage and maintain the business.
Our Services
Rose Gardens will fulfil the needs of the many business travellers looking for an exclusive and relaxing guest house. Each room has been fitted with a coffee bar, air conditioning, Wi-Fi and DSTV.
Creating a cosy, visually attractive environment, Rose Gardens Guest House will attract many returning customers.
The Market
Our two major customer segments are business travellers and tourists going to or coming from Cape Town, looking for overnight accommodation.
A modest projection for increased unit rental is 30% per year. Competitors in the Bloemfontein area have averaged 30% + rental increases over the past three years, and the Bloemfontein Hotel is forecasting 50% increases for the next two years before hitting full capacity. This projection is without any significant increase in advertising or exposure, but is based on the general average increase in tourism.
Financial Considerations
We estimate average monthly fixed costs to be at R18 000. Peak and off-season will have a significant impact on the monthly earnings, and for the first year, peak season revenues will offset off-season losses. As Rose Gardens Guest House gains market share in the Bloemfontein hospitality sector, we anticipate that off-season revenues will be enough to break even during that season.
Objectives
- To increase exposure and market share by registering on Internet Websites that promote tourism, such as Wheretostay.co.za
- Through direct advertising and incentives, we hope to increase off-season occupancy by 30% in the first year.
- Increase off-season use by divesting into other service offerings such as conferencing, weddings and other events.
Mission
The mission of Rose Gardens is to become the best value for money Guest House in Bloemfontein by offering extended services at affordable prices. We plan to create an environment that oozes luxury, style and a pampered feel. The Rose Gardens guest will have every need met to ensure his/her comfort. Special occasions, catered meals, chilled wines and other add-on’s, will be available at an additional fee.
Amenities that go beyond the typical guest house will include:
- A coffee bar in the room, containing ground coffee, a variety of teas, biscuits and rusks.
- Wi-Fi in all the rooms
- Daily fresh-baked muffins and fresh fruit
- Rose Gardens will offer a shuttle service to nearby attractions.
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