Beacon International College
Course: Pearson BTEC Level 5 HND in Hospitality Management
Unit: Finance in the Hospitality Industry
Assignment No: 1
Name: Yau Chiu Wai(Sam)
1. Identify and review the possible sources of funding that can be used for SEAFRONT hotel new business venture. Explore variety of options, discuss the advantage and disadvantages to assist you to derive the best possible approach.
For building guest houses for SEAFRONT hotel, there are several possible sources of funding that can be used for the hotel new business venture.
Bank loans is one of the possible sources of funding for SEAFRONT hotel to build guest houses. However, ...view middle of the document...
However, personal saving is more dangerous than bank loans because the owner may lose his money more easily if the business fails.
Another possible source of funding is capital from investors. In order to get more money to do and extend the businesses, many companies are enthusiastic to promote themselves and their high-return projects. Thus, SEAFRONT hotel can also promote its new business's attraction to attract more people. If other people are interested in the project, they may invest in that and hotel can get more capital for the new business. Compared with bank loans and personal saving, capital from others' investment will be more cheap and safe because the investors will share the risk and loss with hotel. (Pass 1.1)
2. Evaluate possible ways of how income generation can be done when the guest house business is established. Suggest how income can be generated using the assets already invested for the guest house when there is no occupancy. Propose optimizing the asset resources in order to meet projected revenue.
After establishing the guest house business, in order to make profit and meet the projected revenue, the first thing to do is to promote the guest houses in order to attract more hotel guests and new customers to come to hotel and guest houses. The hotel can promote its guest houses through leaflets, advertisement on television and newspaper, and through selling to the guests verbally by hotel staff. Hotel can design a leaflet with some pictures of guest house and information about the guest houses such as services provided, facilities and the environment in and around the guest houses. The leaflet and advertisement must show all the attraction and advantage of the guest houses. Also, hotel staff can help promotion through introducing the guest houses in detail and telling the benefits the customers will get from it.
Only promoting is not enough. Besides promotion for attracting people, guest houses can provide more service for guests to choose. For example, some guests like to be able to cook by their own, then the guest house can provide a guest-kitchen with dining area for guest to cook by themselves. Some guests require for their own private swimming pool, so there are some small and private swimming pools for guests to enjoy swimming even though they do not book any rooms in guest houses. Except kitchen and swimming pools, there are also other services provided such as Internet service and repast service.
In addition to swimming pools and kitchen, there is a rest room with some computers and bookshelves available at the ground floor for the guests to use computers and read books. There are some tables without computer available for guests to read books or do other things. The guests can also choose to borrow books in there, of course they will be charged for a little bit money if they borrow the books. Moreover, we have free WiFi hotspot available and offer laundry and breakfast services for guest upon...