Hotel Project - Located in Beijing - China
Hotel Project - Located in Beijing - China
General concept, the idea
Beijing has won the bid to host the 2008 Summer Olympic Games and is embarked on an impressive program of construction and investment in preparation for the Games. Town planners in the Beijing Municipal Government are already busy at the drawing boards. The city is going to need more hotels to host not only the Olympics but also the hordes of business visitors expected over the next few years. While many will be going to Beijing in some connection with the Olympics, the main springboard for growth will be business. Over the next two decades, China will become the world's largest global economy.
Hotel "Miracle" is a project initiated at the time Beijing won the bid to host the 2008 Summer Olympic Games. This Project is set on 3 star level and leisure facilities and concerns the construction of a small hotel with 90 guest rooms including 60 double rooms and 30 single rooms, conference facilities for 50 people, three restaurants of international cuisine and associated leisure facilities that will appeal to a broad customer base. Also included in this Project is the construction of a swimming pool, fitness club and Spa salon.
Project particulars
• Location factor: The hotel is located in the north-eastern part of the city, between the third ring road and fourth ring road, 2 kilometers from the central business district, 5 kilometers from Tian An Men square, 6 kilometers from Wanfujing Street which is main shopping district in Beijing, and 14 kilometers from the Olympic Village. Public transports such as bus, underground are just 2 minutes away from the hotel site.
• Construction: there will be 6 levels: Basement, ground floor, and floors 1-4.
In the basement, there will be a swimming pool, spa salon, sauna and a playing room with billiard, table tennis, darts.
On the ground floor, there will be the reception, lobby bar and one restaurant.
On floor 1, there will have two restaurants, 1 conference room and business center including internet service.
On floors 2-4, there will be 30 guest rooms on each floor, including 20 double rooms, 10 single rooms, and a staff room.
Each guest room will be ...
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• Construction: there will be 6 levels: Basement, ground floor, and floors 1-4.
In the basement, there will be a swimming pool, spa salon, sauna and a playing room with billiard, table tennis, darts.
On the ground floor, there will be the reception, lobby bar and one restaurant.
On floor 1, there will have two restaurants, 1 conference room and business center including internet service.
On floors 2-4, there will be 30 guest rooms on each floor, including 20 double rooms, 10 single rooms, and a staff room.
Each guest room will be about 30 square meters including its own bath and mini bar. Each room will also include TV, internet cable, furniture, central air conditioning, a little refrigerator, phone and a safe.
• Hotel restaurant: There will be one Chinese cuisine, one Thai cuisine and one French cuisine restaurant.
• Landscaping: The ratio of green area is up to 30%.
• Traffic: The Project site, which is just 28 kilometers from Beijing International Airport, is close to public transport.
• Compatibility with local surroundings: There is a neighboring plot of land with a very nice garden, a modern shopping center, and a few office buildings around. Within the vicinity, there are also two five star hotels, three four star hotels and few hostels.
• Source and Volume of business: Beijing, the capital of China has 13 millions citizens. According to statistics in year 2003, there are 200 3-stars and above hotels with a total number of bed space of 170,000. According to the estimate of Beijing Olympic Committee, Beijing will require at least 300 3-star and above hotels, with the total number of bed space of 260,000 by year 2008.
Marketing strategy
The Project is targeted at customers and business travellers who cannot afford four or five star hotel price.
Marketing strategic plan will include:
• advertising on TV
• contacting companies which have their offices within the vicinity and signing long-term discount agreement with them
• promotion banners on the adjacent roads
• organizing special events
The marketing and selling points are
• with online booking
• permanent cold and warm water
• fixed and mobile telephone service
• cable TV for more than 50 international TV stations, and radio
• uninterrupted internet - mobile internet service
• Free newspaper
• Ten minutes from a city hospital
• Public transport pass in front of the hotel
• A nice garden behind the hotel
• Postal service and travel agent
• Fitness club, swimming pool and spa salon
Customer demography
Of the customers, it is estimated that
• 10% will be people who will book two weeks in advance
• 10% will be by word-of-mouth
• 20% repeat customers, staying on an average of 5 nights for each visit
• 25% week-end visitors from other parts of the country
• 30% will be customers on business from companies which enjoy long-term discount
• 40% referred from travel agencies
Market characteristics
• Location: The location is fantastic, because the premises are located in the north-east of the city. It is the central business district, a prime location of the new hotels in the eastern stretch of the third ring road, and which is already the location for many renowned hotels, the China World, the Great Wall Sheraton, the Hilton and the Kempinski.
• Impact of tourism: Chinese people themselves are travelling more. If we just look at the increase in air travel within China over the past 20 years, there are 134 million airport passenger movements, we can appreciate the scale of the opportunity. Increase in movements in big cities including Beijing is exceptionally remarkable.
• Economic stability: The Beijing Olympics, China's entry into the World Trade Organisation(WTO), the fact that the country's exceptional economic performance is a rare bright spot on the global economic stage and a huge potential market for hotel investors.
Conclusion
The Project is the direct product of the demand of additional bed spaces during the 2008 Olympics, and the gradual increase in international and local air travel due to accession of China into WTO, and the increase in general economic and financial situation in China.
The construction of the Project will take 2 years. Training and other preparation works will take half-a-year. The Project will therefore be in full operation by the later half of year 2007, just in time for the boom brought by the Olympics.
It is estimated by the management of the Project that the occupancy rate will be about 60% for the first year, rising to 100% during the Olympics, and gradually recovering to the normal 85%.
The Project will repay itself in 6 years of operation.
Bibliography
* Jack D. Ninemeier, Food and Beverage Management, Third Edition, Educational Institute, Michigan.
* S.Medlik, Profile of the Hotel and Catering Industry, Second Edition, Heinemann, London
* www.beijing-2008.org
* www.china-hiking.com/chinastatus/information.htm
* All the information used in this document are official information and can be easily checked on www.stats.gov.cn.