La Mansion

A Boutique Hotel

Business Plan Done

By
Rohit Sopori (F.Y M.M.S)
Roll No-51
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 Executive summary
“La mansion” a boutique hotel coming up in Hinejawadi Pune, is a state of art
business hotel which gives an exotic experience to its customers. Equipped with
ultramodern facilities like 24 hr coffee shop, Virtual Concierge, Free Internet usage
up to 25 mb, Video conferencing/ Intercom, Convention Center with an
accommodating capacity of 250 pax, Executive Lounge and a fitness center, La
mansion will be one of its kind in Hinejawadi. La mansion will be a 50 room
property (42-Regular Villas and 8- Grand Villas) which will be centrally located in
“IT Park” and very much accessible by travelers coming from Mumbai. The total
area of the hotel will be 15000 sq ft (Regular Villas-200 sq ft and Grand Villas-400
sq ft). The uniqueness of this hotel lies in its room interiors. Every room is based
on a theme representing a classic mixture of different cultures and its regions. We
at La mansion always endeavor towards making your stay a memorable one and
for this very reason we present to you “La mansions Grand Villas” which are
designed as cottages in the middle of landscaping. Some other facilities provided to
our guest include

• WI-FI

• LUMOSINE SERVICE

• LAUNDRY SERVICE

• ONE WAY OFFICE PICK UP/DROP(COMPLEMENTARY)

• ONE MULTI CUISINE RESTAUTANTS

• SWIMMING POOL

• MINI GOLF COURSE

• PICK UP FROM MUMBAI/PUNE AIRPORT

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 The total project cost is expected to be Rs 80 cr (50 cr-Owners capital, 40 cr
loan from bank against land and building as security)

Location
Hinejawadi located in the outskirts of Pune is the next upcoming IT hub of India.
Approximately 80 thousand people work in more than 30 companies (And many
more coming in with Phase-3 getting developed) with in Hinejawadi. The location
is quite often blooming with overseas delegates who are in search for a place
where they can relax after work and can actually experience there stay rather than
just staying. Also I would like to stress upon the point of contact i.e. any guest
coming from Mumbai via express way( A faster medium to reach Pune) will
directly enter Hinjewadi first. This Location is also preferred because of low initial
investment as compared to any other part of Pune city. Also hotel can earn good
revenue from corporate seminars and functions thus making it the most preferred
location.

MISSION: It will be our constant effort to be class apart with in our class so as to
redefine the meaning of Hospitality.

MARKETING PLAN: As Pune is destined to be the next IT hub of India, the

demand for good business hotels is constantly felt. With major players like “Taj”
and “Orchid group” already present and “Marriott” as well as “Hyatt” preparing to
enter the market, the market looks lucrative still competitive. With majority of the
players entering the market with an established brand name as well as global
presence, it will be difficult but not impossible to create brand awareness. Some of
the hotels with their strategic location are given below.
WITH IN OUTSIDE POTENTIAL
NAME TYPE NUMBER BOUTIQUE
HINJEWADI HINJEWADI COMPETITOR

2( OPENING
MARRIOTT CHAIN 1 3 YES NO
SHORTLY)

1(OPENING
HYATT CHAIN 0 1 NO NO
SHORTLY)

TAJ CHAIN 0 1 1 NO NO

ORCHID
CHAIN 0 1 1 NO NO
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GROUP
 LEMON
CHAIN 1 1 2 YES NO
TREE

ST LAUNS CHAIN 1 1 2 YES NO

SAYAJI CHAIN 1 0 1 YES NO

GORDON STAND
1 0 1 NO YES
HOUSE ALONE

UPDATES TILL 2010

Chain- Multi location Stand Alone-One location

From the above table it is clear that the competition is intense but still the market is
open in Hinjawadi because out of the four players operating there, two are
relatively new (Marriott and Sayaji) which are just one year old therefore denting
their market share would require proper positioning of “La mansion”.

La mansion-Positioning
La mansion will be positioned as a small sized business hotel but will compete
with medium and large scale hotels directly. Because of its unique interiors it will
be marketed as a place not only for corporate but also for food lovers who want to
experience the true meaning of Hospitality.

Some of the unique selling points (USP’s)

• One multi cuisine restaurant with ambience show casing a mixture of
different regions from around the world(every table will have a different
appeal and the set up will be done according to the food ordered)
• Aloha-the lounge will be dedicated to all true music lovers with live karaoke
being played on weekends and weekdays representing different musical
combinations like Classic rock, soft metal, country, Jazz and Gazals.
• Free WI-FI Connectivity for in house guest
• Mini golf course

Market Penetration/Marketing Strategies:

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• Tie up with travel agents/Booking sites (Travel Guru/Makemytrip etc)

 • Tie up with Hotels in Mumbai on commission basis (with no presence in or
around Pune)
• Advertising the product (La Mansion) via Print and Audio Media
• Grand Opening with a Concert
• Initial Complementary Stays for Corporate Houses

Point of Focus:
With the Average room rate (ARR) in and around Pune closing up to Rs. 5500/-
La Mansion target for the initial year will be to achieve at least a 40% occupancy
with an average room rate (ARR) of Rs. 5000/-

SWOT Analysis:

Strength Weakness
1) Integrated Teamwork 1) Stand alone Property with a brand
2) Professionals from the Industry to be built
3) Uniqueness of the Hotel & some
of the facilities provided
Opportunities Threats
1) A lot of Potential Market is left 1) Highly Competitive Environment
untapped 2) Major global players present in
2) Many New companies coming in the market
who can in turn be potential
customers

Financial Details with targeted BEP:

• Total cost of the Project: 80 Crores

• Expected Revenues from rooms: Rs. 3, 60, 00,000 in the opening year
• Expected Revenues from Restaurants through walk-ins and in-house orders:
Rs. 36, 00,000(opening year)
• Total Revenue by the end of first year: Rs 3, 96, 00,000
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• Overheads and other expenses (20% of revenue):79, 20,000

 • Net profit after deductions: 3, 16, 80,000(By the end of first year)
• With a constant 10% growth projected every year and expenses ‘kept at 20%
the B.E.P will be achieved in the next 14 years but it will be our constant
effort to bring down the expenses to 18% so as to achieve the B.E.P early.
Break up of Net profit
1. First Year-Rs 3,16, 80, 000
2. Second Year-Rs 3, 48, 48, 000
3. Third Year-Rs 3, 83, 32, 800
4. Forth Year-Rs 4,21, 66,080
5. Firth Year-Rs 4, 63, 82, 688
6. Sixth Year-Rs 5,10, 20, 956.8
7. Seventh Year-Rs 5, 61, 23, 052.48
8. Eighth Year-Rs 6, 17, 35, 357.728
9. Ninth Year-Rs 6,79, 08, 893.5008
10. Tenth Year-Rs 7, 46, 99, 782.85088
11. Eleventh Year-Rs 8, 21, 69, 761.135968
12. Twelfth Year-Rs 9, 03, 86, 737.2495648
13. Thirteenth Year-Rs 9, 94, 25, 410.97452128
14. Fourteenth Year- B.E.P Achieved
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