Condo-Hotel, San Juan, Puerto Rico
Condo Hotel: San Juan, Puerto RicoStudent’sName
Condo Hotel: San Juan, Puerto Rico
In our previous plans, we have talked about our condo hotel, located in San Juan, Puerto Rico. In this assignment we are asked to go deeper in the organizational part of our condo hotel, discussing about how the hotel is constructed, what is our hotel’s target market, and a budget plan specifically made to turn our condo hotel into the hottest, most known and wanted condo in the Island.
1. Background on the organization.
It is important to highlight the organizational processes when it comes to accomplishing the organizational plans we have discussed in our previous business plans. The only way to really accomplish our objectives is to deciding tasks, and specify who has to do what (Struts &Wortman, 2005). This is the only way to possibly and successfully run a place as big as a hotel. Although our condo is not designed to cater to a huge amount of people, we have to do our best effort, as we intend to cater only to VIPs who could be in any other place. This is way we decided, taking the model seen in the book “Hotel and Lodging Management: An Introduction”, by Stutts and Wortman, tweak it in some places and develop an organizational chart, in order to clarify our organization.
2. How many square feet, number of bedrooms and bathrooms and amenities?
Our condo hotel has twenty rooms, each room occupying a whole floor of the building. As we said before, there will be two private key-operated elevators, to take the residents to their rooms. Each unit will be 4,000 sq. ft. approximately. The units will have 3 bedrooms, each one equipped with their own bathroom;the kitchen area, fully equipped with hi-tech appliances; and each unit sports an 180° view of the waterfront.
3. Places: What is nearby; beaches, restaurants, etc?
Our hotel will be located on the Ashford Avenue, an exclusive avenue of the Island’s capital. Ashford Av. Could is compared with Los Angeles’ Rodeo Drive, because of its exclusive stores; restaurants and cultural attractions. Condado District, hosts many places worth seeing and visiting, that is why we expect to supply our proprietors with a brochure on all the possible activities nearby. However, we will name a few, to make our prospective buyers have an idea of what they might expect. Concerning stores, from the most exclusive designers to regular clothing stores. The restaurants in the avenue are excellent to cater to our proprietors’ tastes, as many of them are able to provide them with the exclusivity they are looking for. On the beaches, Condado beach is one option, although we would not recommend our proprietors to go to it. Since it is not a private beach, it is possible that it would not suit the needs of our clients, who might want something more private and with fewer people.
4. Target Market
As we have stated before, our hotel’s goal is to attract wealthy businesspeople who are enticed by the new Puerto Rico’s investment incentives. In this way, although we do not discard any other prospective buyer, we are focusing on capitalizing the Island’s incentives and turn them into our favor by turning our hotel into a trendy, but secluded place for these businesspeople to live while on the island.
Regarding our marketing plan, in a previous plan, we stated that we counted with $700,000 to cover marketing expenses. On the 5% dedicated to maintaining our position, since we are in a planning phase, we consider better to invest that money in growing and gaining a market share. This would give that section a 15% of our budget.
1st to 4th month: We consider important to strengthen our position in the hotel market. We have talked about the importance of taking advantage of the tax benefits the Island is implementing. That is why we need to swiftly sweep the competition and gaining a bigger market share. To do that, we must aggressively market our hotel as the best solution for those businesspeople who might come. Using PR and a strong web presence, we consider it possible. Also, we consider that in order for people to associate our name with cleanliness and efficiency, we are going to organize a cleanup in the beaches surrounding Condado area. Budget: $250,000
5thto 9th month: Our condo hotel has a lobby on which we intend placing stores and restaurants to cater to their proprietors’ most immediate needs. In these months, we consider important to actively attract people willing to set up businesses in our hotel. We expect that our position and the attractive of the condo, as a green and different hotel, would attract potential investors and people willing to set up their stores and possibly two restaurants in our lobby. To do this, we intend to approach the Puerto Rico’s commerce chamber, in have a meeting with different and important business people of the island to assess ourselves in the subject. We expect they give us pointers on how to proceed. Budget: $200,000
9th to 12th Month: Maintaining our projected advantage over our competitors. What happens with our hotel is that it has no direct competitors. We have talked about the potential competitors our hotel faces, but none of them are really for the same market share. We cater to wealthy people, but the other hotels cater for wealthier people. This means that those who can afford our hotel, probably cannot afford our competitors’. This, of course, does not make us a second-class hotel. This positions us in a total different niche that could even attract the wealthiest people in the planet. However, we should aggressively campaign our hotel, and participate in green energy campaigns around the city to market our image as a green solution that people should know and like. We aim to become a referent on green hotels in the world if possible. Budget $250,000
5. Summary of the Marketing Plan
Our marketing strategy is oriented toward offer an array of services associated with the Green energy, and ecological solutions. We do not offer simply a place to stay and conducting business while taking advantage of the tax benefits of the Island. We offer the experience of inhabiting a place with an 180° view to the beach that is energy-efficient and caters even to the smallest needs that the proprietors could have. We understand that we do not offer a cheap service, but what we offer cannot come for cheap, since we offer quality, design, and efficiency. If we succeed in communicating this, we will surely be able to instate our brand as one of the top choices regarding accommodation in the island. In the same way, we consider that our workers and providers should understand and be part of the brand, since the only way to truly convey the meaning of making a living in a place, is to believe that there is not a better place than this one. Our final goal is to grow, not only to sell the twenty units. We aim to grow with our community, as well as with our residents, in order to understand them, and be able to anticipate their needs and fulfilling them. On the other hand, we have a commitment to the environment, and we consider that protecting and taking care of it is one of the main goals of our condo hotel. That is way we intend to participate in the Island’s efforts to clean and recycle, in order to reduce the waste that eventually goes to the seas
Stutts, A., &Wortman, J. (2005). 2: Organizational Structure. In Hotel and lodging management: An introduction (2nd ed.). New York: John Wiley and Sons.