Eco-Central Pacific Resort

Business Plan

Name & ID:

Fonmanu, Melanie S11073948
Harshmeetal Harsha s11096220
Navuda Eroni s11074178
Versoni Grace s11100093

Contents
I.

Executive Summary............................................................................................. 2

II.

Business Description............................................................................................ 4

III.

Statement on Sustainability.............................................................................. 5

Environmentally Consciousness.............................................................................. 5
Economically Sustainable........................................................................................ 6
Socially Sustainable................................................................................................ 7
IV.

Marketing.......................................................................................................... 7

MARKET NICHE AND MARKET SHARE......................................................................7

COMPETITIVE ANALYSIS........................................................................................... 9
PRICING POLICY....................................................................................................... 9
Premium pricing................................................................................................... 9
Bundle pricing...................................................................................................... 9
MARKET STRATEGY................................................................................................ 10
V. Operations............................................................................................................ 11
Zoning................................................................................................................... 11
Tax......................................................................................................................... 12
Facilities & Equipment........................................................................................... 12
Proximity to suppliers............................................................................................ 12
Access to transportation........................................................................................ 13
VI. Sustainable Development Measures of Performance...........................................14
Efficient Water Consumption.................................................................................14
Reduce Energy Consumption................................................................................ 15
Waste Reduction.................................................................................................... 16
Reduce Carbon Footprint....................................................................................... 16
Biodiversity Hotel....................................................................................................... 17
VI. Management....................................................................................................... 18
VIII. Financial Plan..................................................................................................... 20
Table A1.2.............................................................................................................. 21
Table A1.3.............................................................................................................. 21
Table A1.4.............................................................................................................. 21
Scenario Analysis.................................................................................................. 25
Financing plan....................................................................................................... 26
IX. Critical Risks Segment......................................................................................... 26

Price cutting by competitors..................................................................................26

Marketing.............................................................................................................. 26
Any potential unfavorable-industry wide trends....................................................27
Damage due to Natural Disaster...........................................................................27
Physical, regulatory or reputational risks due to climate change..........................27
Design or manufacturing costs in excess of estimates..........................................27
Sales projections not achieved..............................................................................28
Hotel development schedule not met...................................................................28
Power.................................................................................................................... 28
Water..................................................................................................................... 29
Transportation....................................................................................................... 29
Supplier Disruption................................................................................................ 29
Political Instability................................................................................................. 29
Harvest Strategy...................................................................................................... 30
Management Change............................................................................................ 30
Hotel Going Public............................................................................................... 30
Selling the Business.............................................................................................. 30
Management Buyout............................................................................................. 31
XII. Milestone Schedule............................................................................................. 33
Bibliography............................................................................................................. 34

I.

Executive Summary

A 5 star hotel offering a Fiji Green Eco experience, Eco-Central Pacific Resort will be owned by
the Fonmanu, Navuda, Harshmeetal and Versoni Partnership. The resort venture is anticipated to
operate by 2017 and will be located in the heart of the Sabeto Mountains in Nadi amidst the
green and lush rainforest.
This new hotel venture is anticipating to bring into Fijis tourism industry a new green adult
exclusive experience that no other hotel of a 5star status offers within the country. Market
offerings will include luxurious 5star packages incorporated with a totally green and rainforest
experience up in the mountains. With a selective marketing strategy, Eco-Central Pacific Resort
intends to attract those of the wealthy and upper-class societies who are our target market that are
looking for an exclusive green experience.
With an initial investment of $69,998,040, resort sales are forecasted to be a figure of
$40,551,500 in the first year which will increase by $12,981,716 by the third year. Annual net
income is anticipated to rise to $18,469,589 in three years. In addition to this, scenario analysis
of the business illustrates a positive net income can be achieved if sales volume do no drop more
than 25% of the forecasted figure. Overall, the Eco-Central Pacific Resort is a feasible and
profitable project to invest in, as given the marketing initiatives and revenue and financial
figures.

Annual Sales
Annual Net Income
Return on Equity

Financial Highlights by end of 2019

$53,553,216
$18,469.589
14.6%

II.

Business Description

The business name Eco-Central Pacific Resort was chosen because it signifies the direction to a
sophisticated long-term worth of our property with an environmentally-friendly properties whose
managers are keen to organize programs that save water, save energy and decrease solid waste
while saving moneyto help PROTECT OUR ONE AND ONLY EARTH. It also aims to
maintaining staff and repeat customers lasting as management evidently cares for their vigor and
well-being, (Green Hotels Assosciation, 2015).
The Hotel and Tourism Industry in Fiji is one that has markedly developed over the past 20years.
A hefty share of the industry is motivated by the private sector. Tourism underwrites roughly
17.0 percent to GD providing direct and indirect jobs to approximately 40,000 people. In 2012, it
was projected that gross incomes from the tourism industry was $1.3bn, which is around 17.8
percent of GDP. There are presently 6889 hotel lodgings countrywide to accommodate for
tourists of which 70% are occupied, (Investment Fiji, 2015).
Tourist influxes into the country is promising with tourist arrivals accumulating progressively
over the recent years with an upsurge of 366,520 tourist entrances from year 2000(294,070) to
2012(660,590). Tourism Fiji is looking towards the north to the mounting Asian states for
upcoming development forecasts, namely China, South Korea and Taiwan. Moving onward,
Tourism Fiji also devising to rebrand with the motto Fiji, where contentment finds you to
substitute the nations existing Fiji Me crusade. With government assistance The Tourism
industry is set to bring in a target of 1 million visitors by 2016.
The Fiji tourism schemes involved natural & cultural, cruising, water sports & resort activities,
yachting, surfing, diving, wedding & honeymoon, shopping, sports and community village tours.
Openings available in the Tourism sector are: Agro Tourism, Spa Tourism, Health Tourism,
Sport Tourism, Nautical Tourism, Retirement Resort Village, Integrated Resort, and Resorts &
Villas, (Investment Fiji, 2015).
At Eco- Central we will provide a variety of services that will be tailored to suit and satisfy the
hotelier(s) trip making it intimate, worthwhile, fun, relaxing, memorable and enjoyable with the
inclusion of our luxurious spas gourmet restaurant, green activities, and friendly services.

III.

Statement on Sustainability

Sustainability involves the use of natural resources with a mindset of preserving them for our
generations without totally exploiting them. As a hotel, it is important that we consider
sustainability in our policies and mission statements as it provides us with a direction on how we
are to go about with operations. According to the United Nations Report Our Common Future,
Sustainable Development is the development that meets the needs of the present without
compromising the ability of future generations to meet their needs. With this definition in
mind, our hotel must carry out its operations in such ways that are consistent with this statement.
In going about our business, Central Pacific Hotel will be guided by the following sustainability
principles:

Environmentally Consciousness
We are committed to carrying out measures that are environmentally sustainable in our
operations to reduce the impact on our depleting resources. In our efforts to practice
environmental sustainable development we will focus on reducing our energy consumption by
installing energy saving light bulbs, energy efficient refrigeration and solar energy consumption.
These measures will assist us in contributing to the saving of our energy resources.
Furthermore we are also committed to the efficient consumption of water at the lowest levels. By
installing low flow showers and taps and practicing rainwater harvesting, we are dedicated to
using water efficiently and saving water in our day to day activities. Commitment to reducing
carbon footprint is also a principle we will strive for, as incentives will be provided for guest
who are able to reduce their carbon footprint through the monitoring of carbon footprint by use
of carbon footprint calculators installed in rooms.
Waste reduction is another avenue we will pursue in the Hotel. Through the use of
biodegradable plastics, practicing of reuse and recycling and the installment of environment
friendly biolytic degradable sewerage system to process raw sewer discharge from the
Hotel, makes the waste harmless as it leaves the hotel and thus not having an impact on the
environment.

Our venture is to be the first 5 Star Eco Hotel in the country and we are committed to being
a Green Hotel that will practice sustainable development throughout. In our operations we
will set aside a 5 acre land specifically for the purpose of supplying our restaurants with
fresh and healthy produce. Not only are we saving money, but also reducing carbon
footprint (no transportation, thus no emission), reducing our dependency on outside
suppliers and at the same time efficiently making use of available resource.

Economically Sustainable
The Hotel is also keen to be economically sustainable in whatever ways it can. Majority of
the materials for the construction of our Hotel will be sourced from local suppliers and staff
members will all be sought locally excluding the top level managers and few other
positions. This allows for revenue earned money to circulate within our economy and not be
lost to leakages. Furniture and equipment used are all locally made products and we will
also encourage our guests to purchase Fiji Made products that are to be displayed in our
retail shops. Furthermore through our timely bus shuttle schedules to the airport and around
Nadi, we encourage our guests to make use of this service and not hire vehicles as this
would be economically efficient. Also we set aside activities for our staff such as sports and
bilibili races to involve them in and also free medical care. This has proven to be effective
as healthy workers are proven to be productive members of society. By practicing all these
we are able to earn for ourselves and at the same time contribute sustainably to the welfare
of the economy and other key stakeholders.

Socially Sustainable
Our aim for this venture is to also be Socially Sustainable in whatever services we provide.
Social sustainability implies a system of organization that alleviates poverty. In our efforts to
raise money through our business operations we will also look to employ people from nearby
villages and areas. Particularly youths and young people are one of our targets. By providing
them with employment, they are able to support their families and impart whatever knowledge
they have learnt to the members of community and shy away from unproductive lifestyle and
crime. On a personal level, we are committed to educating all employees of Central Pacific Hotel
about this rising issue of Sustainable Development. We will train them to exercise sustainability
at all levels of operation e.g. educating staff to turn off fans in unoccupied rooms or where they
see there is an opportunity to save energy. Not only are we limiting this to the confines of the

Hotel, but we emphasis that they go to their respective families and communities and educate
them about living sustainably. This will bring about great awareness on this issue and allow them
to appreciate the impacts our actions today can have on us and the future generations.
Finally our Hotel is dedicated to giving back to society. We see that Corporate Social
Responsibility is vital for our existence. In doing so, we are looking at assisting youths of nearby
villages with sports facilities and equipments, mainly rugby gear and sponsoring charity events
around Nadi. In practicing CSR; we believe that our business can have an impact on the lives of
people not so privileged with benefits many may enjoy. By doing this we portray a good picture
of our venture and is a positive indication to our key stakeholder the customers.

IV.

Marketing

Eco Central Pacific Hotel is willing to start with a big bang in the market. And we are located in
the beautiful and untouched land of Sabeto, Nadi.

MARKET NICHE AND MARKET SHARE

Before starting up with the construction activities, general survey will be done in societies and
with respective tourists. A list of questionnaire will be distributed to people and it will state what
types of services they expect from the new venture, whereas personal interviews will also be
carried out to see how people respond to questions and what they call a luxury and divine
service. Some questions that can be asked could be these:

As an individual where would you willingly want to spend your holidays?

And whom you want to spend time with?

What type of environment or atmosphere you want to spend your time?

And what do you expect the services to be like when you hear the word FIVE STAR?

In relation to the interviews and questionnaires distributed, the response from the people were
that: they want an exotic place for their stay at a hotel where services are provided at their best
level with exclusive room service, customers have really high expectations and most locals, they
get disappointed as they are not treated fairly, their complaint is that in many hotels they have
been to, the workers attend to tourists first and later attend locals, their argument is that they pay
the same fee charged as the rest of the visitors so they should be equally treated among them. It

was also noted that mainly people want to spend their time with the loved ones such as a couple.
The decision will be made on consumer preferences for a happy and satisfied customer.
The market share will be planned and allocated and price attributions will be made to convert
insights into action. Travelling and leisure activities are planned accordingly as the hotel will
have two helicopters as the resort is located up in the hills in Sabeto, Nadi. One helicopter is for
sightseeing and the other is for emergency cases. Mini buses will also be accommodated for
people who prefer bus rides, in addition we will have a limousine for business expertise from
overseas or high rank business professionals.
Eco-friendly environment for the customers available at all times on the natures peak. The
activities available for tourists at close proximity are:
Zip linings in the hills
A tour to the garden of the Sleeping giants
Mud bath
waterfalls
hiking and trekking
cultural centre
river kayaking
horse riding
hot springs
picnics
range rovers for hire
paintball and fishing

COMPETITIVE ANALYSIS
As a new venture in the market our competitions are not industrialised resorts but rather a
venture that has care and concerns about the nature and focus on exploring the beautiful
environment of a clean atmosphere. The pricing leadership is determined by the lush luxury
services and the quality leadership is obtained by the nature itself. And throughout so many years
hotel owners are focusing on making profits and hardly anyone tries to practice sustainability at
the same time. Few years back, Outrigger on the Lagoon practiced going green, and they

distributed bio-degradable bags to people in society and other relevant places. This awareness
was a successful one as Outrigger is one of the renowned hotels in Fiji. But our main focus is to
adapt to techniques that could save the future generation, to be more aware of climate change
and its consequences and do our best to be eco-friendly in terms of our services, resources and
facilities provided.

PRICING POLICY
85 Guestrooms & 15 luxury suites
20 upper scale

$2000

20 upscale

$1500

40 mid scales

$950

15 luxury suites

$3000

The best suitable pricing strategy for Eco- Central Resort is the premium pricing and the bundle
pricing.
Premium pricing- a high price is set that reflects the exclusiveness of the Resorts products;
this is due to the quality and efficiency available for the customers.
Bundle pricing- the resort offers bundles of products at a reduced price. A weekly package
and weekend package is offered for a stay in the Resort which become more flexible for
customers to spend their money.

MARKET STRATEGY
Nadi International airport is a getaway for tourism industry in Fiji. The table below shows the
visitor arrivals in Fiji in 2013 and 2014 (fiji visitors bureau statistics, 2013-2014):
VISITOR ARRIVALS, AVERAGE LENGTH OF STAY & EARNINGS
2013
Visitor arrivals (numbers)
657,706
Visitor
departure 647,234
(numbers)

2014
513,110
507,800

Average

length

(days)
Total visitor days
Earnings from

of

stay 9.5

6142,939
tourism 1318.2

9.46
4865,700
1035.7

(FJD millions)
The 2014 tourists list ignores the month of October, November and December. So it can be noted
that the tourism industry is lucrative in our country. We targeting tourists level to be at its
increasing so Fijis economy could grow.
ADVERTISING PLAN
Eco Central Pacific Hotel will create a cost-effective campaign focused on publicity and direct
marketing.
Before lodging the official business, it would be favourable as to advertise on radio and TV
(social media plans). This will be a competitive factor and the general public will be informed
about the resort and can do further research on our website for the services provided. Our
website would be www.ecocentralpacific.com.fj. The hotel business mainly focuses on the
wealthy:
Honeymooners
Locals who are newly wedded and are celebrating anniversaries
And we also accommodate business groups who come for business purposes and have
business reunion.
Some potential advantage the resort has over its main competitors are:
-

200acres of lush untouched rainforest

An exclusively adults getaway

Resort & spa

Restaurant (100 sits) with world-renown chefs

3 hummer jeeps for bumpy ride in the hills

Ballroom dance will be on Friday, Saturday and Sunday nights. (For couples and adults
and it is also available for someone to hire for a night for their private functions and
dances with friends and families)

We will practice guest loyalty programmes (managed by Hilton hotel that makes dream a reality)
guests will be rewarded or use Honours points for upgrades and purchase premium rooms with
points

V. Operations
Strategically located in the Sabeto mountain range in Nadi, the hotel site will overlook over 100
freehold acres of lush tropical rainforest. Nestled within the peaceful, private and tranquil
mountain side, the hotel site is 1.8 kilometres from the main Queens Highway and 14km from
the Nadi International Airport which is approximately an 18 to 20minute drive.
Supplementary to the estate is the antique and natural heritage of the garden of the sleeping
Giant which will be of one the hotels locational attractions. The sleeping garden is known for
its 30- 40 species of rare orchids and other flora unique to Fiji. It is also a sanctuary to some of
the countrys endangered species of fauna. Additional locational benefits are tourist attractions
such as mud pools and hot springs that are in close proximity to the hotel site.

Zoning
The acreage sits on an agricultural zoning which has been converted to a Commercial C zoning.
For the holidaymaker resort expansion, a remuneration of $378.00 will have to be paid for the
processing of any application seeking rezoning. From agricultural or rural to commercial an
additional $189.00 is charged upon as an additional payment for the zoning purposes this which
is applicable to the conversion of the land zoning, (Investment Fiji, n.d.).

Tax
The type of tax charged for hoteliers is which is at the rate of 5% and is only pertinent during a
hotel turnover and an extensive variety of tourism-related services and recreational happenings.
Company tax is payable by Fiji resident companies on taxable income derived from all sources
and this 20% given that this venture is being incorporated and carried in Fiji with we, the
shareholders holding a Fiji citizenship.
It can be noted as an assumption from forecasted financial figures that as of the fifth year of
operation, the Resort will be ready to go public and therefore register with the South Pacific

Stock Exchange. And a chargeable tax rate of 18.5% with the entrepreneurs having 40% of the
shareholding structure, (Patel, 2013).

Facilities & Equipment

To handle operations there will be a special digitally controlled storage unit
next to the main complex that will house the resort supplies such as food
and beverage. This storage unit can only be accessed by the operations
manager and kitchen supervisor to lessen any opportunity of theft or abuse
of resort materials. This unit will only be accessed through a digital code and
will have special temperature regulating facilities to ensure the preservation
of supplies and reduce the chances of wastage. In addition to this, there will
be space allocated in the resort backhouse that will store valuable
equipment needed for operations. There will be four office spaces within the
main complex, this is for the general manager, and other operational
managers. This office spaces will each include printer & photocopying
machines.

Proximity to suppliers
As the hotel site will be 1.7km from the main Queens Highway, with frugality and sustainability
in mind, the resort has set aside 10 acres of land for the cultivation of variety of agricultural
produce. Produce that will be nursed include: basil, chili, lemongrass, mint, papaya, bananas and
many added varieties of homegrown yield that will be consumed in the restaurants
However, during the first two years of operation while the resorts garden is still at a premature
stage for harvesting, the resort will be outsourcing the suppliers of vegetables, crops and fruits
from the Sigatoka valley. These include: taro, tapioca, yam, banana, pineapple, watermelon,
lemon, taro leaf, and cabbage to name a few. The other existing produce that is not grown locally
will be bought in by Turners & Growers the countrys international agricultural produce
importer. Delivery will be made twice a week which will be on Monday and Thursday.
40% of the resorts supplies will from the its very own back yard and the other 60% will be from
outside suppliers.

Access to transportation
For convenient purposes, a tourist shuttle will be provided by the resort for welcoming visitors
from the Airport, take guests on scheduled visits to nearby tourist attractions and transport them
to Port Denarau for other outside activities. For guests that will be occupying our luxury suites
there are options of private Range Rover SUVs and limousine pickups or transfers by helicopter.
Departure
Nadi International air-port
Eco-Central Resort- morning
Eco-Central Resort - afternoon

Pick-up
To be confirmed by the visitor
10:45 am
2:45 am

Drop-off
To be confirmed by the visitor
12:45 pm
4:45 pm

Overall, the resort will have 1 shuttle, a private limousine, and three Range Rover SUVs for
those that wish to rent out a vehicle. For guests who would like to explore the untouched terrain
or go on picnics on the mountainside transportation by horseback will be available in support of
our environment sustainability stand for reduction of carbon emissions and also for that authentic
Fiji Green experience. Complementary to this service is the provision of helicopter transfers that
will be provided by Heli Tours Fiji. Outside services of transportation is also permitted with the
added factor of being close to public transportation.

VI. Sustainable Development Measures of Performance

Sustainable Development is an issue which not only is being advocated by government and NonGovernmental Organizations but also businesses and they have come to realize its importance.
Sustainable Development is defined as the development which meets the needs of the present
without compromising the ability of the future generation. It is vital for our Hotel to incorporate
measures which not only brings about profits but also has positive impacts on people and
environment, what the business world may refer to as the Triple Bottom Line.

The following paragraphs will discuss environmentally sustainable measures of performance that
will be undertaken by Eco-Central Pacific Resort to minimize environmental impacts and the
positive impacts it has on other stakeholders. These are some of the sustainable measures and
practices that will be exercised by Central Pacific Hotel:

Efficient Water Consumption

Shower and cisterns account for the highest water consumption, which is why our main savings
measures focus on these points of consumption. Water drips from faucets and sinks on average
add up to 20 gallons per day and is a big waste. Through strict preventative and corrective
maintenance, all installations will be regularly checked properly to see that they are leak and
fault free and to avoid any unnecessary loss of water.
Throughout the hotels low flow shower heads and low flow flush toilets will be set up. They are
perfect for eco conservative hotels because of its low flow of water output. Conventional Shower
heads flow at an average of 5 gallons or more per minute while low flow shower heads flow at
2.5 gallons or less per minute. In the long run this low flow shower heads will be essential in
saving gallons water and money.
In addition, Eco-Central Pacific Resort will also be implementing water free urinals in our
rooms. These water free urinals are efficient and save a lot of water for the hotel. On average
water free urinals are able to save 95,000 gallons of water per year thus a viable choice.
Another approach will be rainwater harvesting, where we will be using a new approach to
collect water direct from the sky. Rainwater harvesting makes use water not letting it to waste as
runoff. This is the use of an upside down umbrella form of equipment that is able to collect water
without contamination which can be used for irrigation purposes, watering of gardens and other
in-house needs.

Finally exercising the Green Laundry Grogram, this leaves customers that stay for more than
one day the choice to decide how often they want the hotel to wash their towels. This approach
saves a lot of water and money by not washing hotel towels regularly.

Reduce Energy Consumption

In attempting to reduce the amount of energy consumption, Eco-Central Pacific Resort will
undertake certain practices to save energy. These are:
Use of energy saving light bulbs all throughout the hotel instead of the traditional light bulbs
which provide the same brightness and comfort but at lower cost and lower energy consumption.
Use of motion detectors placed at strategic points or areas that are less frequently used such as
the hallways and outdoor areas around the hotel with timers to detect movement. This provides
light only when needed and saves energy. Also training will be provided to staff to be
environmentally sustainable to turn off lights in unoccupied rooms.
Fitting of hotel rooms with centralized energy and climate control systems to ensure that each
room is always at the right temperature, depending on whether or not the guest is using it. This
reduces energy consumption.
Implement Building Management System (BEMS) that control heating, ventilation and air
conditioning. This is able to reduce energy costs by 10%.
For refrigeration, we will be installing energy star appliances or refrigerating units that are A+
rated because they have the lowest electrical running costs.
Use of renewable solar energy to make use of the available sunny weather within the proposed
hotel site

Waste Reduction
Hotels produce a very wide variety of waste and on a much larger scale. In order to improve the
quantity of waste, Eco-Central Pacific Resort will use more sustainable ways to reduce waste or
to make waste more environmentally friendly. Some of the ways are:
Use of oxo-biodegradable products, these are materials that break down more quickly
because they are manufactured with environmentally-friendly materials.

Less use of plastic bags and more of eco-friendly carry bags

Replacing laundry bottles with biodegradable bags
By using e-invoices for both our suppliers and guests, we reduce paper consumption and waste
Disposing of the Hotels organic waste to be composted for subsequent use as fertilizer in
our hotel organic gardens
Recycling by providing guestroom recycler baskets for newspaper, white paper, glass, aluminum,
cardboard, and plastic
Provide recycling bins both in public areas (i.e., poolside), in the kitchen, and in the back office
(including one at each desk) to make recycling as easy as possible.
Have environment friendly biolytic degradable sewerage system in place to process raw sewer
discharge from the Hotel

Reduce Carbon Footprint

Carbon footprint is the sum of all the greenhouse gases produced in performing an activity, and
serves as a general indicator of an activitys environmental impact. The resort will engage in
practices that will help reduce our carbon footprint. These are:

Having a carbon footprint calculator so that clients can check their carbon footprint
during their stay so they are able to improve on them.

Replacing technologies such as gasoil and BTZ with new and improved measures
implemented to reduce CO2 emissions.

Provide incentives for frequent customers who during their stay are able to reduce their
carbon footprint. This allows them to be determined to reduce their carbon foot print
whenever they visit.

Biodiversity Hotel
Being an eco-hotel our objective is to carry out our business with the utmost respect for the
environment in the designing and management of our facilities. In building Eco-Central Pacific
Resort, factors that will be taken into account are:

Care with clearing to avoid loss of species at the start of construction work.
Creation of a nursery to grow variety of plants
Campaigns carried out to favor the growth of the populations present in the area.

Discussed above are the methods in which our Hotel will be carrying out its operations with the
mindset of sustainable development. By exercising sustainable development in our efforts to earn
revenue, its impact is widespread and will be felt to the community and the environment. Being
environmentally conscious will be beneficial for the hotel as a large proportion of tourists are
nowadays aware of the need to sustain and conserve our environment. This will not only bring
about great revenue for our business but will also provide employment for the local community
which will allow them to provide for their families. Thus the triple bottom line theory will be
apply here addressing the rippling effect that our will bring about.

VI. Management
The Resort will be outsourcing the management segment to the Hilton Resorts and Hotels. This
is where a Hilton Worldwide (HWW) developer will be working closely with our team. The
property general manager (GM) will get a Pre-Opening Kit (POK). This comprises of resources
that will be used by Hilton brand instructors working in coalition with the resorts human
resources manager to train and allocate the GM and crew on brand creativities and platforms like
the Hilton Blue Energy, Orientation, Service Training, and Journey Ambassador, (Hilton Hotels
& Resorts, n.d.).
The outline scheduled for training and management will be as follows:
Day 1:
The Hilton Hotels & Resorts

Day:2
There will be an identification

Day:3
The eminence and content of

team will offer an overall

of an area kind of

hotel structures build, Hilton

Hilton orientation and

configuration, rate placing and

brand websites, the current

acquaint our hotels

to thorough the rate binder.

auxiliary standards and

administrative team to the

Pre-sell endorsements and

prospects in relative to the

Hilton brand culture, brand

stratagems will be enhanced.

Guest loyalty package,

values and essential

This shall be done in

advertising and sales.

sustenance extents during the

assistance with the director

pre and post inaugural.

income administrative changes

Touring the resort and

as a consequent to the resorts

reviewing the competitive

rate & inventory being

setting.

embedded into the Hilton

distribution systems.

The brand offers several district brand instructors to guarantee the Resorts onsite crew obtains
the uppermost level of support and training. One of the first communications our resort will
obtain is an outline to the resorts precise opening team site. Hiltons properties employ the
OnQ system for a day-to-day property management. The hardware will be conveyed to our
resort, entirely encumbered with property management system (PMS) software to look after all
processes and broadcasting.
Hilton also has instructors to train our instructors! After the resort opens, an OnQ expert will
devote some days at the resort with the managing team to strengthen prior training and discourse
issues and concerns, (Hilton Hotels & Resorts, n.d.).
The Property Information Manager (PiM) device will be used to shape and manage the resorts
database. In recommendation, we will offer the Head of Departments contact information in
the PiM to be incorporated in the Hilton Communications Channels.
Moreover the eCommerce specialists will assist in the planning and implementation of a
successful online marketing plan. This embraces the forecasting for search optimization, video
publicizing, and social media observance and communications, (Hilton Hotels & Resorts, n.d.)

VIII. Financial Plan

Eco-Central Pacific Hotel has created a base-case forecasted financial plan for the new hotel
ventures first three years of operation. Inputs for the plan are based on extensive research on the
financial models of successful hotels, expert advice from current established hotel owners and
financial knowledge of the companys finance manager. With the above inputs, the base-case
plan projected is the best current forecast of the operational and financial schemes of Eco-Central
Pacific Hotel.
Below are key figures that the business seeks to achieve by the end of 2019. Sales are projected
to be $40,551,500 in the first year at a minimum occupancy rate of 55%. This is easily attainable
according to market research that have been conducted. During this first year of operations the
business is forecasted to start earning a profit as early as by the 6th month of operation, by which
10,038 rooms are estimated to have been occupied. Of the projected first year sales figures, net
income is projected to be 29% of total revenue. In two years this percentage is predicted to rise
by 5.5% from 29% to 34.5% of total revenues.
Return on equity by the 3rd year is projected to be 14.6 % which is a good figure compared to the
industry average of 10.6% (CSI Market , 2015). In regards to the assets of the business, with the
effective management of our qualified managers in collaboration with the Hilton Hotels
Management Group, return on assets is projected to be an impressive 23.9%.
The advantage of the given model is in its flexibility. This flexibility allows the business to
forecast various operational scenarios. Scenario analysis of the new venture illustrates a positive
net income can be achieved if sales volume do no drop more than 25% or if variable costs
increase by the same percentage.

Table A1.2

Key Figures for 3 yr. model base case (FJD)

Return on Equity

Return on Assets

Summary
Initial equity

Summary
ROA

$48,164

investment
End book value of

$64,879

equity
Annualized net

$15,121,

income
ROE

650
14.6%

Table A1.3

23.9
%
1.649

Assets Turnover

Key Figures for 3 yr. model base case (FJD)

Working Capital Summary

40

Avg. Collection Period

Inv. Days on hand
A/P period
Current Ratio

Table A1.4

187
7
41

Key Figures for 3 yr. model base case (FJD)

Contribution margin Summary

Rev/room occupied

$2,020

VC/room occupied
CM/room occupied

$397
$1,623

Fixed cost per period

Break-even sales (#s)
Actual Sales (#s)

$17,835,590
10,038
20,075

Eco-Central Pacific Hotel

Pro-forma Balance Sheets
for years 2017-2019

Yr. 17

Yr. 18

Yr. 19

$1,000

$1,800

$2,300

$737

$948

$1,156

$2,000

$2,190

$5,380

TOTAL CURRENT ASSETS

$3,737

$4,938

$8,836

Property, Plant, & Equipment

$56,161

$56,161

$56,128

$130

$130

$130

TOTAL NON-CURRENT ASSETS

$56,291

$56,291

$56,258

TOTAL ASSETS

$60,028

$61,229

$65,094

$$ in thousands

Assets
Cash & cash equivalents
Accounts Receivable
Inventory

Intangible Assets

Liabilities
Accrued Distributions
Payables

$0

$0

$0

$100

$153

$215

TOTAL CURRENT LIABILITIES

$100

$153

$215

Retained Earnings

$48,164
$11,764

$45,945
$15,131

$46,409
$18,470

TOTAL LIAB & Equity

$60,028

$61,229

$65,094

Equity
Capital

Scenario Analysis

Financing plan
With a combination of equal contributions worth $17,499,510 by each of the
four main business partners and an equity investment of $52,498,530 by the
value-added investor we aim to seek, the business hopes to successfully
establish the new 5star hotel in 2years. The bulk of this money will be used
over the first 2 years for purchase of materials, construction, hiring and
training of employees, and start-up operation costs. Once cash flows begin to
be positive by the 6th month, Eco-Central will then plan for expansion after
the 3 year period.
With the base case figures and the given pessimistic scenario, Eco Central
has adequate funds to finance operations

IX. Critical Risks Segment

Price cutting by competitors
There are many hotels existing within Nadi area where there is a lot of potential of under cutting
prices due to the competition for customers. For the proposed hotel venture to be successful it is
critical that we adopt the following measures:

Spreading our incoming generating activities e.g. opening our bars to outside public to make
money out of that market opportunity and Cultural Center as a major attraction to address

cultural tourism.
The core business is to provide accommodation for 100 rooms to the highest quality of

service. So the selling point is the high quality of service that we will provide.
Management operational efficiencies to be enhanced to reduce costs but not compromise

quality of service. By reducing costs we are able to match any price cutting by competitors.
We will consider reducing prices to retain our market share

Marketing
Because this is a new venture it will take a lot of advertising and awareness campaigns to ensure
the product is known. If people are not aware of the new Hotel, they will not come to the hotel.
Thus all the investment will go to waste and potential income generation will be lost. Some ways
to mitigate these risks are:

Marketing overseas to encourage more booking and payments online to minimize

changing of hotel bookings when in Fiji.

Align and partner with established travel agents to maximize reach.
Partnering with established hotel managers of Hilton

Any potential unfavorable-industry wide trends

The tourism industry is subject to seasonal high and lows depending on the weather from source
markets. The hotel will strive for minimum occupancy of 90% and will target tourists escaping
the winter season in the northern hemisphere and the southern hemisphere. This will allow for a
consistent level of occupancy throughout the year.

Damage due to Natural Disaster

This is a major risk that needs to be addressed to avoid down time in case of damages to hotel
and structures.
To mitigate against this, the hotel construction will done to high standards that will withstand
highest cyclone and hurricane ratings reached in Fiji. The site will be subjected to hydrological
study to ensure that the whole site is flood free eliminating any potential damages caused by
flooding. To eliminate the risk of landslides, geotechnical investigation will be conducted within
the hotel site to ensure stability of the landscape that can create some potential damage.

Physical, regulatory or reputational risks due to climate change

There is the threat arising out of fear by potential tourists on effects of climate change resulting
in major catastrophes like inundation by sea water, flooding, landslides and drought.
These physical risks associated with climate change should not be of concern as there is little or
no threat of rising sea level because of the location of our hotel inland away from the coast. The
effects of climate change are not much of a risk in Nadi due to the general stability of climate.
Other effects that may arise out of potential natural disasters are addressed above.

Design or manufacturing costs in excess of estimates

In the preparation of the business proposal, there is the possibility of underestimating associated
costs with the development of the hotel. If this is not done well it will see that initial cost outlays

far exceed what was anticipated and this could result in a mismatch of expenses against the
proposed income.
To mitigate against this risk, proper costing estimates will be undertaken where percentages will
be over and above 20% of estimated cost. This is to cover for any unforeseen contingencies.

Sales projections not achieved

One of the major threats to any business venture is the over rating of sales and potential income
and when this happens it will downgrade the value of the business proposal threatening the
viability of the project.
To mitigate against this, the income projections will be discounted by 20% in anticipation of
reduced income generated from sales.

Hotel development schedule not met

The problem faced by many development proposals is non conformance with development
timelines. When this is not met the intended income stream will not be realized and therefore
anticipated cash-flow will eventuate.
During construction, strict adherence to construction timelines will be observed. The use of Gantt
Charts from the outset for important activities which will be used for Key Performance
Indicators (KPIs) for the construction teams to ensure compliance with set deadlines. The
Project Manager will be tasked to ensure full compliance and in the event there is slippage, all
effort will be taken to rectify and keep within stipulated timeframes to ensure the hotel is
operational by the designated date.

Power
Fiji is at times affected by irregular supply of power and as such depending on the capacity of the
solar energy available; the hotel will also have a backup generator for this purpose.

Water
Water is an essential commodity that will be in high demand. In case of water disruption, the
hotel will have backup water tanks for use if required. This will be from system based water
supply and also through harvest of rainwater.

Transportation
The transportation and shuttling of tourists from entry point (airport) to the hotel and hotel to
specified destinations is critical for the operation of the hotel to ensure better coverage for its
guests. If this is not addressed adequately there is the possibility of losing potential customers to
competitors.
Therefore for this purpose there is a designated Transportation Manager to ensure the best
service is available for guests.

Supplier Disruption
The continuous supply of vegetable and food produce to the hotel may at times be affected due to
unforeseen reasons. This may prove fatal for the hotel in terms of providing for our guests
including our salad bar that is one of the main features of our restaurant.
Thus to mitigate for this risk, there is a five acre land set aside for the planting and harvesting of
our crops and vegetables to standby for any disruption from our suppliers.

Political Instability
The political stability of an economy is very much an important factor that may impact the
business operation of any venture. Analysis of the political status of any country is vital before
engaging in any venture operation, non conformance to this could have dreadful effects on the
business and cost the business a lot of money.
For Eco-Central Pacific Resort being set up in Fiji is not much of a big risk. Considering the past
9 years that the current government has been in control, the economic stability of the country has

been well consistent and there are no beckoning signs of it changing. Also with the, elections
completed and our current government in control for the next 4 years, there is guarantee that
political relations will be safe and the affairs of the Tourism and Hotel industry will be well
looked after.

Harvest Strategy
Planning for a harvest strategy is just as important as earning revenue for the business. This
provides the business with alternatives to fall back on should the business be in a downward
situation where it would be sensible to undertake certain actions. Having a harvest strategy in
place is not only safe but is the wisest decision to carry should the need arise. Should the
business be in a situation of harvest strategy decision making; the following options are
available:

Management Change
If Eco-Central Pacific Hotel encounters any troubles with its staff members specifically the top
management or any unexpected events arise out from the top managers such as death or sudden
departure, we will seek the services of Hilton Group Company to replace our outgoing members
with new ones. The final decision of which personnel to employ will rest with the Board who
will analyze the suggestions provided by Hilton Group and pick the candidate with best
qualification and relevant experience to continue leading our Hotel to greater heights.

Hotel Going Public

Central Pacific Hotel is a Partnership Business comprising of four (4) members who have an
equal share in the business. Should the hotel experience increasing to stagnant growth rate or be
faced with conditions where competition tightens up or innovations start to increase by
competitors, we will consider going public. We will start issuing Initial Public Offerings
(IPOs) in order to raise capital with the hope of expanding further and creating more value to
our service. Even though this option leaves us with less control over our business, it is much
more sensible as it will increase our capital base and as opposed to the gravity of the situation we
will end up in if we continue to operate on our own. Which is, worst case scenario very little or
no returns at all in the future.

Selling the Business

We may also consider selling our business to interested buyers as en exit strategy if the need
arises. In doing this we will build our hotel business and create the maximum value by marketing
our brand-name and providing services at the highest quality, this portrays a good image of the
business as a whole in the long term. By doing all these, interested buyers are able to see
potential in our venture and would offer prices favorable for us.

Management Buyout
This is another avenue we may look into due to the fact that this is a Partnership comprising 4
people, which are Grace Versoni, Melanie Fonmanu, Harsha Harshmeetal, and Eroni Navuda. If
on a future occasion certain partners want out of the business and others are not interested but
wish to continue with the venture, this option of Management Buyout allows the outgoing
partners to sell their share of the business to existing partners of other employees. There is gain
in selling part of the business to existing partners for the outgoing partners and there is also
expansion of control of the business for the remaining partners. This proves as a win-win
situation for both parties.

XII. Milestone Schedule

MILESTONE

POSITION

Milestone 1
Conduct an EIA

Attain Business License

15

-10

10

Start

Milestone 2

Construction of Access Road

Activity

Jan-Mar

Milestone 3

Hilton Application Processing

Month

Mar

Milestone 4

-15 e warehouse
Clearing & Preparation of Land +construction of storag

25

April-May

Milestone 5

Landscaping & Preparation of garden

Project Start

May-June

Milestone 6

July-Aug
Milestone 8

Milestone 7

Construction of main complex begins

Purchasing of building materials

15

-15

15

Sept

-20
20

3rd

2nd

1st

Oct-Dec

July-Sept

May-June

April

Jan-Mar

Milestone 12

Milestone 11

Milestone 10

Milestone 10

Milestone 9

Grand Opening Launch

Training of personnel

Marketing & Recruitment

Construction of pool and other outdoor amenities +interior design of hotel

Construction of main complex completed

Oct-Dec

-15

4th

Jan 1st

15

1st

4th

3rd

2nd

1st

Quarter

PROJECTDETAILS
Year
1

Bibliography
Anon.,
2013-2014.
fiji
visitors
bureau
statistics.
[Online]
Available at: www.fijivistorsbureau.com
Anon.,
n.d.
business
plan.
[Online]
Available at: www.marketingplan.com
Basiago, A., 1999. Economic, social, and environmental sustainability in
development theory and urban planning practice. The Environmentalist, pp. 145161.
Campanelli, A. J., 2009. Risks and Rewards for Building Sustainable Hotels, s.l.:
Deloitte Financial Advisory Services LLP.
Cater, E., 1991. Sustainable Tourism in the Third World: Problems and Prospects,
December: s.n.
CSI
Market
,
2015.
Management
Effectiveness.
[Online]
Available at: http://csimarket.com/Industry/industry_ManagementEffectiveness.php?
ind=906
[Accessed 31 January 2015].
Dr.Sonya Graci, J. K., 2010. How to Increase Your Bottom Line By Going Green.
[Online]
Available
at:
http://green.hotelscombined.com/Gyh-Best-Practices.php
[Accessed 27 January 2015].
Green Hotels Assosciation, 2015. Why should hotel be green?. [Online]
Available
at:
http://www.greenhotels.com/
[Accessed 30 January 2015].
Hilton Hotels & Resorts, n.d. Becoming a Hilton Hotel- Hilton Worldwide. [Online]
Available
at:
http://www.hiltonworldwide.com/assets/pdfs/brands/Hilton_BecomingAHilton.pdf
[Accessed 13 January 2015].
Howard H. Frederick, D. F. K. R. M. H., 2006. ENTREPRENEURSHIP: Theory, Process,
Practice. 1st Asia Pacific Edition ed. Melbourne: Nelson Australia Pty. Ltd .
Investment
Fiji,
2015.
Tourism
sector.
[Online]
Available at: http://www.investmentfiji.org.fj/pages.cfm/for-investors/sector-industryprofiles/tourism-sector.html
[Accessed 30 January 2015].
Investment Fiji, n.d. Department of Town and County Planning. [Online]
Available at: http://www.investmentfiji.org.fj/resources/uploads/embeds/file/DTCP
%20Rezoning%20Applications%20Checklist.pdf
[Accessed 26 January 2015].
Ivanova, M. G., 2011. Stakeholder Model of Hotel Chains: A Conceptual Framework,
Varna, Bulgaria: University of Economics.
Patel,
P.,
2013.
FijiTax
Payable.
[Online]
Available
at:
http://www.knowyourcountry.com/fiji3.html
[Accessed 22 January 2015].
Rockys' Boutique Resort, 2015. Care for the environment. [Online]
Available
at:
http://www.rockyresort.com/environmentally-friendly.php
[Accessed 26 January 2015].
Slaper, T. F., 2011. The Triple Bottom Line: What Is It and How Does It Work?.
[Online]
Available
at:
http://www.ibrc.indiana.edu/ibr/2011/spring/article2.html
[Accessed 25 January 2015].

Stewards, G., 2014. Go Green Hotels: Green Ideas for Hotels and Resorts, s.l.: s.n.
USA Today, 2015. What is the Difference Between a 4-Star & a 5-Star Hotel?.
[Online]
Available at: http://traveltips.usatoday.com/difference-between-4star-5star-hotel100879.html
[Accessed 30 January 2015].
Zein, K., 2008. Best Environmental Practices for the Hotel Industry, Laussane,
Switzerland: Sustainable Business Associates.