Objective

Adler Beach Resort will create an exciting adventure oriented 40-room boutique-style hotel, specializing in an activity oriented concept combined with a getaway atmosphere to provide relaxation, personal beauty and recreation in the Puerto Galera / Mindoro area

Adler Beach Resort desires to acquire a $750,000 investment for construction of the resort in return for a 66% equity position. In addition we seek US$250,000 first year operating expenses as a loan to the proposed Adler Beach Resort Corporation for a total investment of US$1,000,000.

Ideal Property Location

The property is located at the Sans Souci Beach Resort & Estates in Munting Buhangin Beach, Abra de Ilog, Mindoro Occidental, Philippines. The waters around Puerto Galera teem with exotic and colorful marine life and it is a year-round world known diving destination.

The road connecting the municipality of Abra de Ilog and Puerto Galera is a priority development project of the Philippine Government. A pilot road is under construction from Abra de Ilog pier and has reached Munting Buhangin Beach all but 500 meters distance to the west. The Developer expects direct road connection within the next three months.

Travel time to the site from Manila via Batangas by land/sea is an average of three to four hours and via Mamburao by air/land 1.5 hours.

The shoreline along the 18 hectares property consists of rock formations inter linked with four sand coves along 650 meters of beach frontage with beautiful corals and a natural enclosed sea water pool. The property is elevated in an amphitheater like setting sloping upwards towards the mountain ensuring ocean views from virtually every location within the property.

The residential section, located along the hillsides, will provide additional income for the commercial establishments along the beach. The local government is highly supportive in establishing a tourism industry in this municipality and has already approved all necessary permits for resort operation.

The immediate neighborhood features untouched and remote surroundings with an ideal setup for eco-tourism. The proposed Adventure Shop can offer hiking, horseback riding, mountain biking, river climbing, waterfalls tours, jungle treks and caving. A dive shop with accompanying fast dive boat can easily reach the world famous Apo Reef off the shoreline of Sablayan 150 km to the south and Anilao in Batangas. Water activities can include ocean kayaking, wind surfing and sailing.

Besides local Filipinos the area also is home to the native Mangyan tribes. Their beautiful handicrafts provide souvenirs for tourists and a study of different folklore.

Mission Statement

Adler Beach Resort will be recognized in its market as the best and most innovative vacation-based entertainment company by our: Customers, Employees, Community, Environment and Shareholders. Our motto is "Get more than you expect"

Resort Concept

Background: Vacationers all over the world are constantly looking for new, exotic places to rest from the monotony of everyday life. Adler Beach Resort will focus on competitive rates with high-quality lodging, service, a tranquilizing atmosphere, an offer for thrilling adventure and an exciting Kid's Club. Critical issues for success are cash flow, identifying projects, bidding procedures, cost control, project management and marketing.

Design: The facility is to be a deluxe, low rise, convention/resort hotel with 36 rooms and four Suites in American South West design. The complex should be designed to accommodate foreign and local vacationers, and smaller convention groups.

Description: The Resort is designed to attract the high-end leisure traveler. It is situated amid towering coconut palms, pungent Ginger plants, flowering Hibiscus, tangles of Bougainvillea's and other ornamental palms in an affluent botanical mix. The restaurant is positioned beside a water cascade with natural boulders and wild, exotic plants leading to the free form swimming pool that seems to overflow towards the sea. Stone paths defined by natural boulder, sand and plants lead to the Dive Shop.

Human Relation: We will employ Guest Coordinators to make you feel at home and part of the Resort family. They will coordinate the guest activities and see to it that everything works the way it should. They are, as all our other staff, trained to be experts in Human Relation.

Ecology as central theme: The modern tourist around the world is searching for places, that completely let them forget about city-life and enjoy their stay with the knowledge of all environmental concerns of a hotel operation being properly addressed. The developers environmental mission is to develop and support an economically sustainable eco-tourism enterprise that contributes to conservation and serves as models for other preservation initiatives.

Rooms: All our rooms will have a king sized beds to provide maximum sleep comfort. Guest decide on check-in what time of the day they prefer to have their room made up and specify other room preferences.

Services: The Sans Souci Beach Resort will provide inspiring activities and personal improvement opportunities besides high standard operational services. Food service will be extended to the rooms, the beach with cold drinks and snacks or even for a private beach lunch or dinner.
We will offer stimulating tours into the surrounding countryside through our Adventure Shop. A rock-climbing wall will test physical abilities. A nature trail within the resort, including orchid garden, and a variety of plants and fauna is geared for the less adventurous.
Enjoy refreshing massages in our Spa after working out in the gym. A beauty parlor with innovative treatments (i.e. stone scrub in a clear running river) is geared for the guests that like to get pampered.
At night the guest will be treated by entertainment in our small theater or can participate in interactive plays, language classes and self-improvement workshops or karaoke/sing-along events. Or just sit amid lit torches in the mild evening breeze and enjoy the regular beach fires and picnics.

Commercial aspect of amenities: The Developer plans to lease various components of the activities like Dive Shop, Adventure Shop, Spa and Beauty Parlor, Souvenir Shop to independent contractors on a base plus percentage basis to minimize operating expenses and ensure a wide and complete offering.

Company Ownership and Management

Acceptable terms of a joint venture are Joint Venture Corporation, lease of property (foreign company wishing to operate a corporation with 100% ownership) or other acceptable agreement. The ideal joint venture partner would be an existing hotel company ideally with hotel operation in Manila. Should Adler Beach Resort attract non-industry investors a hotel management company will operate it. Matthias and Elizabeth Hanika, the owners and developers of Sans Souci beach Resort & Estates will help in the construction and development of the resort and maintain an active function as consultants into the unique concepts presented in this business plan. We propose to have the resort presented to selected Hotel and Restaurant Management Schools as training ground for their students. This will increase personnel available and goodwill in the community.

Philippine Tourism Industry: The Philippines is at the center of global travel and tourism growth and Development. Tourism contributes to the country's GDP, generates jobs and attracts investments to the Philippines. The tourism industry enjoyed a good year 2003. Although less than the figures from 2002, it still was a remarkable achievement considering they were realized after severe drops from the start of the year until August.

Arrivals from China continued to increase significantly. Overall the US market remained the major generator of tourists. Other markets that contributed significant shares included Japan, South Korea, Hong Kong, Taiwan, Australia, Singapore, Canada, United Kingdom, Germany and Malaysia.

The Department of Tourism also continues to intensify its campaign to generate interest among Filipinos. The Volunteer 12 program aims at attracting visitors abroad by tapping Filipinos as tourism volunteers. Under this program, all Filipinos are enjoined to invite their relatives and foreign friends abroad to visit the country. It offers cash prizes and other incentives to volunteers.

Moreover, the Philippines enjoy the highest repeat visitors in Asia, showing that the tourism sector can survive external threats and competition in the region.

The number of hotels has increased last years. Optimism about the
Domestic economy, the lack of viable accommodations alternative, abundance of competent potential hotel workers and professionals, and the relative ease in getting required inputs encourage entry into the industry.
Opportunities for hoteliers also arise from the country's strategic location. The Philippines is situated in the center of Asia, home of the fastest-growing economies in the world. Moreover, government, industry association and trade union cooperation provides the industry with a strong support system.

Recommendations to enhance the hotel industry's competitiveness include the promotion of sustainable tourism. Natural sites should be protected and strict provisions added to prevent pollution and to control the use of energy and natural resources. Existing cultural practices in such areas, which are helpful to safeguarding the sites, should be upheld. Eco-tourism should be promoted.

Competitive Advantage of Adler Beach Resort

· A successful industry player will lead the business management of the Resort.
· The owner, manager and employees like people and willingly meet customer demands.
· Adler Beach Resort meets unsatisfied market demands and charges rates equal with the quality of facilities and services offered.
· The owner's attitudes and financing permit a 2-5 year development period to work out problems in operation, evaluate the market and become established.
· After preliminary development, the business generates enough income to provide for further improvement or expansion as well as a satisfactory return to the owner.
· Financial reserves and insurance are sufficient to meet unexpected problems or needs.
· Advertising and promotion are effectively used.
· Adler Beach Resort is concerned with environmental quality and the appearance of the property. Site use is in harmony with nature.
· Adler Beach Resort continuously tries to improve management skills and keeps up with business trends and the changing recreation market.
· Strengths of Adler Beach Resort includes Matthias Hanika's broad base of experience in managing different types of companies. He has extensive development experience and a track record of hiring the right people and training them. Mr. Hanika understands the service sector business, has traveled extensively frequenting numerous lodging establishments, and has gained invaluable experience in organizational management.
· Currently, a mid-size "boutique" resort niche is vacant in the Puerto Galera market, that provides for privacy and serenity not available in this area.

Industry's Keys to success the Resort adheres to

· A property designed for the targeted guest
· Frequent Guest Award Program
· Controlled overhead and operational costs
· Regular and ongoing guest feedback
· Latest technology/software capacity
· Weekend entertainment
· Unique, timeless and comfortable environment
· Dedicated management and associate support staff

Market Analysis

Economic Environment: Domestically the Philippines has developed a broad based middle and upper class clientele in the past boom years leading more people to be able and willing to spend money and to get away for some time. Internationally the Philippines is starting to be considered an attractive destination with low prices, hospitality and the beautiful surrounding that the 7,000 island have to offer. The awareness about this unique country and its culture is steadily increasing.

 

Geographical/Competitive Environment: Puerto Galera began to prosper in the 1970s, becoming a desirable resort area. A natural port covering about 23 hectares, it is endowed with a treasure of botanical and geological specimens for which it is known. Mindoro is considered the best accessible tourist destination south of Luzon Island and is highly known among tourists and offers an affordable alternative to a flyaway destination like Boracay.

 

Legal/Political Environment: All legal requirements, zoning and documentations for Adler Beach Resort have been obtained already. Insurance needs shall be met and the facility will obtain all the necessary building permits before construction. The local government is highly supportive of the project.

 

Technology Environment: Adler Beach Resort will watch its expenses closely by using the existing software packages available in the hotel industry to control costs, reduce cash management, and maximizing revenue.

Competitive Environment

Puerto Galera has numerous small family operated resorts that cater to local tourist and low budget traveling tourists mainly at Talipanan Beach, White Beach and Sabang with room rate ranging from US$5 to US$30. Noteworthy and comparable with the proposed Adler Beach Resort are:
The Coco Beach Club, an AA resort, is situated on ten hectares with 80 bungalows and facilities all made in natural materials. Rates are from US$38 to US$68. Web site: cocobeach.com.
The Atlantis Beach Resort and Dive Centers was quoted as one of the most outstanding resorts with it's award winning design. All 32 rooms (one bedroom apartments) have air-conditioning, a well stocked mini-bar, Cable TV and hot shower. From US$55 to US$105. Web site atlantishotel.com
The Mabuhay Dive Resort Puerto Galera, Sabang, Mindoro, Philippines was newly built in 2002. Tropical setting with coconut trees, banana- and mango trees on 6000 square meters. 40 rooms AC, Cable TV, Intercom, marbled bathroom with hot showers, toilet, sofa and balcony in every room. Web site mabuhay-dive-resort.com

Market Research

Adler Beach Resort will identify its target market as clearly and concisely as possible. This allows us to identify the target market's information needs, where they get their information and when they look for it. The marketing strategy will focus on informal channels that include friends, family members, relatives, repeat visitors, and word of mouth taking advantage of precipitating events, fostering word-of-mouth recommendations, and creating satisfaction through interacting with the future or present guests.

Strategy and Implementation

Adler Beach Resort will need to be aggressive in attracting new guests by creating awareness. Our target market can generally be described as singles, couples, families with children, single parents, family groups, group tours, corporate and government outings. They are all from the middle- and upper-income bracket, adventurous, nature lovers, health conscious individuals and people seeking personal development. Special attention will be given to new and returning visitors traveling to Puerto Galera, Divers and groups from neighboring Asian countries.

Geographically the target market includes domestic tourists from the bustling metropolis of Manila that is within a three-hour drive of the property. Internationally we will target European tourists, American tourists (Balikbayan) and Asian tourists including Australia.

 

Specific Target Markets

1.) Divers all desire to experience the beauty of nature, something new and different and to be in a natural place and hope to develop new skills. Half of the international dive visitors to the Philippines stay in another country during their overseas trip (most commonly neighboring SE Asia countries).

2.) Pampadours are people that like to get pampered and are predominantly female with a peak in the 45 to 64 year age bracket and mainly travel in couples, with the partner possibly being an activity oriented traveler.

3.) Compatriots have children and predominantly range in age from 25 to 44 years, 61% of Compatriots are female. Compatriots are the largest segments and the most family orientated segment. Most have children under 15, and their holiday activities are primarily driven by their children needs.

4.) True Traveler are mostly under the age of 45, are unlikely to have children and are the segment most likely to travel by themselves. They enjoy the most holidays of each segment. True Travelers are more likely to take a holiday for three weeks or longer. Rock climbing, roping, white water rafting the True Traveler seeks high-risk, adventurous physical challenges on their holiday.

5.) Asian Group Tours have witnessed sharp increase in recent years due to the liberalization of overseas trips in countries like Korea and China. They mostly travel to neighboring Asian countries followed by the Americas, Europe, Oceania and Africa.

6. Domestic Groups: Adler Beach Resort will aim to attract the business guests and their partners needing to hold planning or strategy sessions away from the office in a new and comfortable surrounding to even out revenues throughout the week

 

Positioning and Product Strategy: Adler Beach Resort will be positioned as a new, beautifully landscaped, nature filled, unique atmosphere hotel where both active and inactive tourists can find a niche. With its Kid's Club and Adventure Shop it will fit a family getaway market niche. A full range of referral services (i.e. restaurant recommendations, shopping, taxis, area attractions) will be made available.

 

Distribution Strategy: Adler Beach Resort will maintain a front office staff member throughout the night so guests are able to get answers for any question or service when they need it. Housekeeping will be flexible to accommodate the wishes of the guest. Clients will be able to contact Adler Beach Resort by telephone, fax, and e-mail.

 

Pricing Strategy: Season Rates (November through April): Regular Rooms $79.00, Suites $99.00 Off Season Rates (May through October): Regular Rooms $69.00, Suites $89.00 (Includes Continental Breakfast, nightly chocolate on cushion and welcome fruit basket, use of pool, and exercise equipment room.)

 

Service and Support Philosophy: Adler Beach Resort's goal exceeds every service expectation of its operation. Our guests can expect quality service and a total quality management philosophy throughout all levels of the staff. Filipino hotel employees are reputed to possess the following characteristics, which give local hotels an advantage over their regional competitors: they are resourceful, easy to train, and can speak English. Friendly by nature, Filipinos have a special way of making strangers feel welcome. Hospitality in the Philippines is both a tradition and an art. Moreover with the Adler Beach Resort's in-house training programs, also available to HRM students, employees' skills and talent are further complemented. Moreover, employee performance is monitored and regularly evaluated using set working standards and performance criteria

 

Promotion Strategy

Promotion strategies will vary depending on the target market segments. Our efforts are designed to create awareness and build referrals. A cost-effective campaign-focused on Internet marketing, publicity, our frequent guest reward program, and advertising-is being proposed.

 

Evaluation and Control Strategies

Objectives have been established for Adler beach Resort so that actual performance can be measured. Each subsequent year new objectives will be set for these benchmarks and actual performance will be measured against them. If actual performance falls short of objectives, investigation will be made into the cause, and plans will be adjusted accordingly. We will keep track of the source of all new guests ("Where did you hear of us?") to measure the effectiveness of each type of promotion. Customer satisfaction is most directly reflected in the year-to-year customer retention percentage.

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