Budget Hotel 1

© 2014 Container Hotel by CCB Construction Sdn Bhd. All Rights Reserved.

Developed by CCB Construction Sdn. Bhd. Contributors: Tan Wei Yew Tan Shin Min Tan Thomson Tan Kah Ban Ch’ng Chun Khai

Table of Contents

Table of Contents. I

List of Figures. IV

List of Tables. V

Chapter 1:                Introduction.. 1

1.1         Executive Summary. 1

1.2         Purpose. 3

1.3         Company Background. 5

1.4         Partnership Background. 6

1.5         Business Background. 9

1.5.1     Start-up Summary. 11

1.5.2     Mission. 12

1.5.3     Vision. 12

1.5.4     Slogan. 12

1.5.5     Values. 12

1.5.6     Objectives. 12

1.5.7     Core Values. 12

1.5.8     Company Logo. 13

1.5.9     Business Card Design. 13

1.5.10     Location. 14

1.5.11     Facts and Figures. 14

1.6         Internal Analysis. 15

1.6.1     Strengths. 15

1.6.2     Weakness. 16

1.7         External Analysis. 17

1.7.1     Opportunities. 17

1.7.2     Thread. 17

1.8         Industry Analysis. 18

1.8.1     Ferringhi Heritage Budget Hotel 18

1.8.2     Roomies Penang Guesthouse. 19

1.8.3     Senja Motel 20

1.8.4     Overview of Competitors. 22

Chapter 2:                Administration Plan.. 23

2.1         Organization Chart 23

2.2         List of Administration Personnel 23

2.3         Schedule of Task and Responsibilities. 24

2.4         Schedule of Remuneration. 24

2.5         List of Hotel Equipment, Furniture and Stationary. 25

2.6         Administration Budget 26

Chapter 3:                Marketing Plan.. 27

3.1         Market Analysis. 27

3.1.1     Business Opportunity. 27

3.2         Target Market 30

3.2.1     Economic Value for Business Tourism.. 31

3.3         Market Size. 31

3.4         Competition. 33

3.4.1     Other Direct Competition. 33

3.4.2     Indirect Competition. 34

3.4.3     Competitor Analysis. 35

3.5         Market Share. 36

3.6         Sale Forecast 38

3.6.1     Market Penetration. 38

3.6.2     Revenue of Sales. 39

3.6.3     Forecast Monthly Revenue. 39

3.7         Marketing Strategy. 42

3.7.1     Promotion. 42

3.7.2     Price. 43

3.7.3     Place. 43

3.7.4     Product 44

3.7.5     People. 46

3.7.6     Joint Venture. 46

3.8         Marketing Budget 46

Chapter 4:                Operational Plan.. 47

4.1         Operations Objectives. 47

4.2         Operations Process. 48

4.3         Capacity Planning. 49

4.4         List of Equipment 49

4.5         List of Machinery. 50

4.6         Operation Budget 50

4.7         Layout Plan. 51

4.8         Risk Assessment 52

4.8.1     Risk of Loss. 52

4.8.2     Competitive Risk. 52

Chapter 5:                Financial Plan.. 53

5.1         Financial Budget 53

5.2         Depreciation of Assets. 54

5.3         Cash Flow Statement 56

5.3.1     Summary. 59

5.4         Income Statement 60

5.5         Balance Sheet 61

Chapter 6:                Conclusion.. 62

References. 63

Appendices. 65

List of Figures

Figure 1.1: CCB Construction Sdn Bhd company logo. 5

Figure 1.2: Partnership Individuals and Positions. 6

Figure 1.3: Shareholders distribution. 6

Figure 1.4: Distribution of start-up capital 11

Figure 1.5: Logo design of Container Hotel 13

Figure 1.6: Business card design for Container Hotel. 13

Figure 1.7: External view of Ferringhi Heritage Budget Hotel 18

Figure 1.8: External view of Roomies Penang Guesthouse. 19

Figure 1.9: External view of Senja Motel 20

Figure 2.1: Organization chart of Container Hotel 23

Figure 3.1:Tune Hotel in Penang. 33

Figure 3.2: New Rope Walk Hotel in Penang. 33

Figure 3.3: External view of Hard Rock Hotel, Penang. 34

Figure 3.4: External view of Eastern and Oriental Hotel, Penang. 34

Figure 3.5: The percentage of the market share before the company involvement 36

Figure 3.6: The percentage of the market share after the company involvement 37

Figure 3.7: Market penetration between competitors. 38

Figure 3.8: Forecast Revenue For First Three Year 42

Figure 3.9: Outgoing type of room in Container Hotel 44

Figure 3.10: Conservative type of room in Container Hotel 45

Figure 3.11: Adventure type of room in Container Hotel 45

Figure 4.1: Layout plan of Container Hotel 51

Figure 5.1: Cash flow statement for three years. 59

List of Tables

Table 1.1: Partner's Information - Tan Wei Yew.. 7

Table 1.2: Partner's Information - Tan Thomson. 7

Table 1.3: Partner's Information - Tan Shin Min. 8

Table 1.4: Partner's Information - Tan Kah Ban. 8

Table 1.5: Partner's Information - Ch'ng Chun Khai 9

Table 1.6: Summary of Company Background. 10

Table 1.7: Company's shareholders contribution. 11

Table 1.8: Comparison between competitors. 22

Table 2.1: List of Administration Personnel 23

Table 2.2: Task and responsibilities of personnel 24

Table 2.3: Schedule of remuneration (Monthly) 24

Table 2.4: Schedule of remuneration (Yearly) 24

Table 2.5: List of hotel equipment, furniture and stationary. 25

Table 2.6: Administration budget of Container Hotel 26

Table 3.1: International Business Tourism Arrival To Malaysia 2003 – 2011. 30

Table 3.2: Number of foreign visitor in 2013. 30

Table 3.3: Competitor Analysis. 35

Table 3.4: The percentage of the market share before the company involvement 36

Table 3.5: The percentage of the market share after the company involvement 37

Table 3.6: Market penetration between competitor 38

Table 3.7: Revenue of sales. 39

Table 3.8: Forecast monthly revenue, first year 39

Table 3.9: Forecast monthly revenue, second year 40

Table 3.10: Forecast monthly revenue, third year 41

Table 3.11: Type and rate of room in Container Hotel 43

Table 3.12: Marketing Budget 46

Table 4.1: List of Equipment 49

Table 4.2: List of Machinery. 50

Table 4.3: Operation budget of Container Hotel 50

Table 5.1: Depreciation of Building. 54

Table 5.2: Depreciation of hotel equipment, furniture and fixture. 54

Table 5.3: Depreciation of hotel renovation. 55

Table 5.4: Depreciation of office equipment and furniture. 55

Table 5.5: Income statement of Container Hotel 60

 

Chapter 1:                        Introduction

1.1         Executive Summary

Nowadays, everyone is travelling around the world either for business or travel purposes. The market trend of hotel accommodation is currently towards budgetary and provides basic services to the customers, since there are a large number of customers who always seek for budget accommodation during their travel or outstation.

However, the budget accommodation is always not up to the satisfaction of customers, which is always with poor services and the customer having bad experiences when stay into the hotel. Moreover, the customers nowadays prefer new and creative buildings over the traditional facilities. In order to satisfy the customer’s preferences, a new concept of budget hotel should be construction.

The purpose of this business plan is to construct a green and sustainable hotel, name “Container Hotel” by using recycled materials such as containers and concrete sewer pipe. The concept of the development is to build an unique and affordable pricing hotel which will increase the attractiveness to the customer. The idea of this development is developed by CCB Construction Sdn. Bhd. and the main office and hotel will be in BatuFerringhi, Penang, Malaysia. Our hotel and main office will be strategically located at Jalan Sungai 1, KampungBatuFeringgi, 11100 Ayer Itam, Pulau Pinang, Malaysia

There are total 5 owners in the company are investing in the project, where one of them contribute the land and the rest contribute RM 120,000 each person and total up to RM 600,000 in total.

The purpose of building a Container Hotel in BatuFerringhi is because of its potential as there are always a lot of travelers either family outgoing or backpackers visit the place. In this business plan, a detailed marketing analysis in the current market and comparison with the competitors surrounding the area has been carried out. Moreover, operational plan and financial plan for the business also covered under this business plan. As the Container Hotel is an eco-friendly hotel, we are committed to a sustainable nature, future and following all the rules and regulations in Malaysia.

The Container Hotel is targeted to be the preeminent budget hotel which could be the first choice for travelers and backpackers. Lastly, the Container Hotel will ensured that the customers stay into the hotel are able to enjoy the twice comfort and value with the half price they paid.

1.2         Purpose

The purposes of our business plan are as follows:

a)      Maintaining Focus

A business plan contains all of our product information, manpower and financial estimates and our plans for the future. As we look to grow our business, we should refer to our business plan, according to the Small Business Administration. When we decide to make some changes to our business, those changes should be reflected in our business plan. When we make any updates on our business plan, we get to see how our proposed changes will affect our entire business. The purpose of business plan will remind us of why we start the business at first, what original goals were and how business changes will affect our original vision.

b)     Securing Financing

When we start and carry on our business, we need to constantly concern with the financing of our business. The financing of a business concerns with the start-up costs and then continue with the business expansion. When we look for outside financing, one of the first things the investor will want to see is our business plan. Any of the private investors, bankers or any lending institution will want to see how we plan to run our proposed business, what is the expenses and revenue projections are and whether the plans for the future is attainable or not. All these questions could be answer by a well-written and thorough business plan.

c)      Fuelling Ambitions

Starting our own business can seem like a daunting task if we have never done it before. When we spend time to outline our business in detail, we will understand what it will take to get our dream off the ground. A business plan can help us to map out the growth of our company and give us confidence when we need it.

d)     Enlightening Executives

As our business grows, we will need to consider adding more executives to our team which can help to move our company to the right direction. A business plan will help executive talent see our business vision and determine whether our company is a worthwhile investment of time and resources.

1.3         Company Background

Figure 1.1: CCB Construction SdnBhd company logo

The Container Hotel is a proposed development by CCB Construction Sdn. Bhd., which is an established property development company in Malaysia. We are focusing on three core businesses in Engineering and Construction, Infrastructure Concessions and Property Development. CCB Construction SdnBhd well known with experience in the construction and civil engineering sector to offer supreme value and excellence that is demanded by the market. As the corporation grows, so comes its vision and ability to take on the challenges put forth by market requirements, and with it, the pursuit of design innovation, quality and excellent services through the usage of superior materials and fine workmanship. With a dedicated and strong team of professionals, CCB Construction SdnBhd has been growing from strength to strength, earning a reputable position in Malaysia’s construction sector.

Over the course of corporate history, it has accumulated the know-how in the designing and building of different architectures, from commercial plazas, industrial lots, luxury condominiums and gated residences, low and medium cost high rise apartments, landed properties and hotel resorts.

For more information, please log on to:

http://www.ccbconstruction.com.my/containerhotel

1.4         Partnership Background

Container Hotel is a business that registered by partnership where there are five owners of the enterprise as Tan Wei Yew, Tan Thomson, Tan Shin Min, Tan Kah Ban and Ch’ng Chun Khai with 40% for Tan Wei Yew and the rest are sharing the balance 60% of company share.

Figure 1.2: Partnership Individuals and Positions

Figure 1.3: Shareholders distribution

According to Figure 1.3 shown, Tan Wei Yew (Chief Executive Officer) holding the major percentage of shares. This is because of his contribution by giving out his own land for business and thus 40% is given to him. The decision is made after discussed among the shareholders. Besides, the balance of 60% shares are equally divided and given to the rest of four shareholders and each shareholder take 15% over the total shares. Table 1.1 until Table 1.5 show the information of each partners involved.

Table 1.1: Partner's Information - Tan Wei Yew

	Name	Tan Wei Yew
	Position	Chief Executive Officer
	I/C No.	820613-01-6703
	Gender	Male
	Contact No.	016-7747 668
Academic Background		MSc Business Process Management (RMIT University, Australia) BSc (Hons) Quantity Surveying (Sheffield Hallam University, UK)
Field Experiences		2009 - 2012 Business Consultant (SC Lee Business Consultant Sdn. Bhd.) 2007 – 2009 Quantity Surveyor (PsyconSdn. Bhd.)

Table 1.2: Partner's Information - Tan Thomson

	Name	Tan Thomson
	Position	Administration & Human Resource Manager
	I/C No.	820428-04-5741
	Gender	Male
	Contact No.	016-6524 568
Academic Background		MSc Human Resource Development (Sheffield Hallam University, UK) BSc (Hons) Business Administration Management (Sheffield Hallam University, UK)
Field Experiences		2007 - 2012 Human Resource Assistant Manager (G-Pro Sdn. Bhd.) 2005 – 2007 Business Executive (Green Tech Sdn. Bhd.)

Table 1.3: Partner's Information - Tan Shin Min

	Name	Tan Shin Min
	Position	Marketing Manager
	I/C No.	820921-07-5744
	Gender	Male
	Contact No.	019-4834 710
Academic Background		MSc International Marketing (Liverpool John Moores University, UK) BSc (Hons) Business with Marketing (Liverpool John Moores University, UK)
Field Experiences		2006 - 2012 Marketing Manager (JS ConsultantSdn. Bhd.) 2004– 2006Marketing Executive (Texas DevelopmentSdn. Bhd.)

Table 1.4: Partner's Information - Tan Kah Ban

	Name	Tan Kah Ban
	Position	Financial Manager
	I/C No.	820118-05-5361
	Gender	Male
	Contact No.	019-7841 610
Academic Background		MSc Financial Investment (SheffiedHallamUniverysity, UK) BSc (Hons) Business with Financial Investment (SheffiedHallamUniverysity, UK)
Field Experiences		2008 - 2012 Financial Analyst (Joshua Tan Association) 2004 – 2008 Accountant (Texas Development Sdn. Bhd.)

Table 1.5: Partner's Information - Ch'ng Chun Khai

	Name	Ch’ng Chun Khai
	Position	Operation Manager
	I/C No.	820419-03-5703
	Gender	Male
	Contact No.	016-5417 680
Academic Background		MSc International Hospitality Management (SheffiedHallamUniverysity, UK) BSc (Hons) International Hotel Management (SheffiedHallamUniverysity, UK)
Field Experiences		2005 – 2012 Hotel Service Supervisor (Hilton International Hotel)

1.5         Business Background

The Container Hotel is a budget hotel that is scheduled to begin operations on January 1, 2015. Container Hotel will provide high quality accommodation with lower price the customer paid for both tourist and business customers alike. Accommodation at Container Hotel will consists of 16 comfortably and unique furnished rooms, ranged from single bed to queen-sized beds according to different types of room chosen by the customers. Food services will be served according to the customers’ preference and extra charge will be applied.The region in and around the hotel has a beautiful scenery, numerous places of interest and activities. Guests will have more opportunities to enjoy themselves in this area that is well suited for getaway holidays. Table 1.6 show a summary of the business background.

Table 1.6: Summary of Company Background

Company Name	CCB Construction Sdn. Bhd.
Business Address	Jalan Sungai 1, KampungBatuFeringgi, 11100 Ayer Itam, Pulau Pinang, Malaysia
Telephone Number	604-667 5477 (Line 1)604-667 5488 (Line 2)
Facsimile	604-668 5477
E-mail	enquiry_containerhotel@ccbconstruction.com.my
Social Fans Page	www.facebook.com/ContainerHotelMy
Form of Business	Partnership
Registration Date	13th June 2007
Commencement Date	1st June 2014
Capital Sources	Partnership
No. of Partners	5
Bank Account	Current Account
Bank Account No.	4-5417787-18
Business Registration	455978-X
Financial Auditor	Ernst & Young
Equity Contribution	1.      Tan Wei Yew	(Land owner at 40%)
	2.      Tan Shin Min	(RM 150,000 at 15%)
	3.      Tan Thomson	(RM 150,000 at 15%)
	4.      Tan Kah Ban	(RM 150,000 at 15%)
	5.      Ch’ng Chun Khai	(RM 150,000 at 15%)

1.5.1             Start-up Summary

The primary cost to establish the Container Hotel and expenses estimated at RM 600,000.00. Financing of the business is 100% come from the partners’ capital at the amount of RM 600,000.00 and the land will be contributed by Tan Wei Yew which is the Chief Executive Officer of the company. The following Table 1.7illustrate the company’s shareholders and their contributions.

Table 1.7: Company's shareholders contribution

Name	Contribution (RM)
Tan Wei Yew (Landowner)	Land
Tan Thomson	150,000.00
Tan Shin Min	150,000.00
Tan Kah Ban	150,000.00
Ch’ng Chun Khai	150,000.00
Total	600,000.00

In addition, the distribution of start-up capital is also shown in Figure 1.4.

Figure 1.4: Distribution of start-up capital

1.5.2             Mission

To delight our guests every time by creating engaging experiences straight from our heart.

1.5.3             Vision

To be the preeminent budget hotel – the first choice for travellers and backpackers.

1.5.4             Slogan

Twice the comfort, twice the value with the half price you paid.

1.5.5             Values

We are an eco-friendly company. We are committed to a sustainable nature, future. We are going to follow rules and regulations in Malaysia.

1.5.6             Objectives

To attract a lot of potential customers from local and foreign country (because it’s the best value hotel available in terms of money paid).

1.5.7             Core Values

“Joy, Care and Innovation”

The three core values that define Container Hotel’s way of working are: Joy, Care and Innovation. Our values reflect how we treat each other, our customers and our business partners. We seek employees who share there values and believe in our way of working.

1.5.8             Company Logo

Figure 1.5: Logo design of Container Hotel

As shown in Figure 1.5, our logo is design with a green container and a letter of “C” which represent our business, Container Hotel. The purpose to design the letter in orange colour is because of it radiates warmth and happiness, combining the physical energy and stimulation of red with the cheerfulness of yellow. The colour psychology of orange is optimistic and uplifting, rejuvenating our spirit. In addition, it also relates to adventurous, the risk-taker and sociable which is the most likely to describe our customer, backpacker. Besides, the green container in our logo best represents the concept of our business, which is using the recycle container as accommodation for the customers.

1.5.9            

Figure 1.6: Business card design for Container Hotel.