Company Description
Blue Ridge Hotel will be a large-scale hotel located at Avery County, in the town of Newland, North Carolina. The creation of the Hotel targets the year-round tourism experienced in the area; it targets to offer accommodation and other hospitality services to local, regional, national, and international tourists and travelers visiting the Blue Ridge Mountains. Currently, the Blue Ridge Mountains lack an adequate supply of hospitality services to accommodate the high numbers of tourists visiting the region frequently. The region has only a few vacation homes and small hotels. Therefore, the strategic location of the Hotel will be convenient for customers who will have direct access to the Blue Ridge Mountains. Aside from providing a place for tourists to stay, the Hotel will be located approximately 10 minutes from the Blue Ridge Parkway, 20 minutes from Banner Elk, and 30 minutes from the popular college town of Boone, North Carolina, making it a centrally-placed hotel that can serve the diverse guests visiting the town. Blue Ridge Hotel will have about 250 hotel rooms strategically placed to facilitate convenient movement to all popular locations around the Blue Ridge Mountains. Visitors will enjoy free internet, room service, a gym, spa, indoor pool, outdoor patio, and small trails on the premise. Differentiating the type of business service offered from that of any existing competition will help ensure the success of the business as it attracts frequent travelers who require a high level of personal service.
Compared to other hotels in the region, Blue Ridge Mountains will be more strategically positioned, giving it a competitive advantage in the region’s hospitality market. The Hotel intends to extend superior and extensive services, which will give it an edge over its competition. Furthermore, the Hotel’s employees, who are the organization’s most important asset, will contribute to its success. Unlike its competitors, Blue Ridge Mountains has a comprehensive and competent management team that will ensure that each guest experiences state-of-the-art hospitality services during their stay. The team will ensure that every business matter has been attended to and find solutions to any problems. The management team will ensure that the Hotel is fully equipped with qualified personnel, which will include maintenance personnel, a tech team, cooks and servers, lifeguards, personal trainers, and cleaning staff, among others. To ensure business continuity and sustainability, a finance team will also be hired to analyze the Hotel’s budgets and expenses. In addition, a marketing team that will be capped with the responsibility to oversee sales, marketing, and the Hotel’s social media activity, will also be set up.
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Mission Statement
Blue Ridge Hotel’s mission will be to allow customers to experience the beauty of the Blue Ridge Mountains and the surrounding local areas by providing its guests with the highest quality of service in an ambient environment; Blue Ridges Hotel will commit itself to share its “southern hospitality” with all guests that check into the Hotel. The Hotel will also value the surrounding community, strive to build a positive relationship by ensuring that it creates many jobs for the local people (Chi, 2019). The Hotel will always strive to respect and protect the environment. Furthermore, Blue Ridge Hotel will also strive to create value for its owners and investors while adhering to the set brand value and organizational culture of loyalty, caring, and teamwork.
Company Goals and Objectives
Blue Ridge Hotel looks forward to a successful future due to its competent staff, strategic location, high quality services, and the potential of the targeted market segments. A pre-market research shows the existence of a gap for a hotel in the Blue Ridge Mountains region. Moreover, the planned management team will be flexible, progressive, and energetic- elements that will stimulate the envisioned success (Chi, 2019). The main objectives of Blue Ridge Hotel include:
Business Objectives
To establish a high-quality hotel facility to service tourists and travelers visiting the Blue Ridge Mountain regions.
Financial Objectives
To establish a profit margin that will ensure above median wage rates for its employees.
To establish a profit margin that will benefit owners and investors while facilitating growth (Chi, 2019).
Marketing Objectives
To establish marketing reach
To increase name recognition for the Blue Ridge Hotel brand
To create online presence through online reservation systems.
Target Market
Blue Ridge Hotel will target multiple consumer groups, including families, singles, couples, and groups that wish to travel together. The multiple hotel rooms and other amenities will help in servicing tourist and other travelers. The key clients are expected to originate from both international and domestic markets from North America (United States & Canada), Latin America, and Europe. Blue Ridge Hotel intends to achieve growth by relying on customer loyalty and repeat business. Due to the relatively higher quality of services when compared to its competitors, Blue Ridge Hotel expects to develop a loyal customer base that will help in marketing it through referrals.
Organizational and Management Structure
Blue Ridge Hotel will take the structure of a limited liability company- this is a hybrid of partnership and corporation. The members of the limited liability company will employ a manager to oversee the operations of the Hotel on their behalf. The structure is preferred due to its simplicity and its flexibility. Moreover, Blue Ridge Hotel owners will be protected from business operations and only risk their investments. The Hotel will be headed by a general manager, who will oversee the activities of the organization’s six divisions, namely finance, front office, human resources, food and beverage, sales, and logistics. The general manager will be assisted by an assistant manager. Each division will be headed by departmental manager. The structure of Blue Ridge Hotel top management is as shown below:
Financial Director: Oversee functions related to recording financial transactions, preparation of financial statements, and cost accounting and control.
Front Office Manager: Responsible for the management of customer service, including front desk service, reservation, and housekeeping service, among others.
Human Resource Manager: Oversee employee recruitment, staff training, promotion of employees, disciplinary decisions, and the day-to-day performance of staff members.
Food & Beverage Director: Oversee all dining rooms, restaurant, bars, kitchen, and clean up services, among other kitchen and restaurant responsibilities.
Sales Manager: Responsible for the sale of hospital facilities and services to potential consumers.
Logistics Manager: Responsible for tracking daily supplies, procuring new appliances, and ensuring the security of the hotel facilities.
Marketing Research
Industry
Blue Ridge Hotel will enter the hospitality industry, which is currently experiencing exponential growth. The US gross books increased from $116 billion to 185 billion between 2009 and 2017. The industry, particularly hotels, has consistently remained one of the top sources of employment, providing millions of jobs. Moreover, economically, the hotel and lodging industry contributes $590 billion to United State’s gross domestic product. In 2015, hotels received approximately 1.1 billion guests annually, contributing a sales of $245 billion to the $1.1 trillion of U.S sales. Based on recent trends, the hotel industry is expected to increase its sales significantly. With the high level of connectivity with the rest of the world, the hotel industry, irrespective of whether it is in a small town or a big city, drives hundreds of billions of dollars in economic activities, provide employment opportunities, and reinvest back in the community. The town of Newland, North Carolina, has recently experienced growth in visitor numbers, with the trend expected to continue due to the increased preference for domestic travel, close-to-home destinations, and highway travels. The upsurge in the number of tourists, which is as a result of local, state, national, and international guests, has raised the demand for hotels in the region. Currently, the size of the market in around the Blue Ridge Mountains ranges between 60-90% occupancy rate throughout the year. Therefore, if Blue Ridge Hotel successfully explores the existing gap in the hotel industry and capture a portion of Newland’s hotel market, it will generate profit and growth.
Detailed Description of Customers
A summary of Blue Ridge Hotel customers is provided below:
Families: Blue Ridge Hotel will offer family rooms that will accommodate 4-6 people comfortably, with 2-3 queen- or full-size beds, one full bathroom, kitchenette, and TV. The Hotel will also accommodate larger families, with the available adjoining rooms.
Singles: The Hotel also offers smaller rooms for singles, with a full-size bed, one full bathroom, a kitchenette, and a TV.
Couples: For couples, Blue Ridge Hotel offers rooms with one queen size bed, full bathroom, kitchenette, and TV. Besides, honeymoon suites are available for newly engaged couples.
Blue Ridge Hotel also offers countable group houses on the premise with ten bunk beds, a kitchen, three full bathrooms, and two TV, to services the youth groups, school groups, large families, and other group travelers on retreat or gathering.
Company Advantages
Blue Ridge Hotel has multiple advantages over its competitors. These key advantages include:
The hotel will be strategically positioned, enabling its guests to access all the major tourist sites in Newlands.
The hotel will assemble competent personnel to provide its diverse hospitality services. With qualified maintenance personnel, a tech team, cooks and servers, lifeguards, personal trainers, and cleaning staff, among others, the organization will have an advantage over its competitors, particularly when it comes to the quality of service.
The hotel will utilize a high-quality real-time financial and reservation system, which will result in superior customer service and experience.
The hotel will embrace the current ecological guidelines to reduces its carbon footprint and other effects to the environment, and thus ensuring a good relationship with the community and the potential customers.
The hotel, despite being located in a rural area, will have a modern design while maintaining the surrounding natural sceneries. Therefore, unlike its competitors, Blue Ridge Mountains will provide competitors with both modern and natural settings, something that is preferred among tourists and in family vacations.
The hotel will have a strong marketing campaign that will incorporate partnership with local businesses, and social media to reach out to its potential customers. The combination of the localized marketing campaign and a strong online presence will ensure a superior market presence compared to its competitors.
The hotel will have a 3-star rating in international hotel rating systems. The hotel will be ranked among the best in the region, and thus appealing more to consumers.
The hotel will also install a state-of-the-art security that ensures direct contact with the local law enforcement department, and thus the security of the guests.
In addition to the above advantages, Blue Ridge Hotel will forge strategic alliances with major travel agents and hotel associations, both nationally and international. Upon branding itself as a 3-star hotel, Blue Ridge Hotel will be inspected and listed by the aforementioned travel agents and hotel association. Additionally, the hotel will ensure the continuous development of association with travel, business, and tourist organization to improve its reputation among its potential consumers.
Competition Analysis
Although there are no outright competitors with a more strategic location than Blue Ridge Hotel, there are other hotels that have a significant influence on Newland’s hotel industry. As outlined earlier, Blue Ridge Hotel will be among the few hotels that offer 3-star quality hotel services. While there are some good hotels around the Blue Ridge Mountains region, most of them are situated outside the town of Newland, North Carolina. Most of these hotels are located in Asheville, North Carolina, and thus not strategically positioned for convenient access to the major locations. Some of the popular hotels include Glo Best, Cambria Hotel, and Princess Anne Hotel & Breakfast, among others. Aside from these hotels, Blue Ridge Hotel also experiences still competition from motels, condo, and cabins located around the Blue Ridge Mountain region.
Regulations
There are multiple federal, state, and local regulatory and administrative agencies that oversee the operation of hotels in the hospitality industry. Be that as it may, the American Hotel & Lodging Association (AHLA) is the sole national association that offers strategic advocacy, communication support, and educational resources to the hotel industry (Barth et al., 2006). Federal agencies, such as the Internal Revenue Service (IRS) will oversee the hotel’s responsibility to pay tax to the government. On the other hand, the Occupational Safety and Health Administration (OSHA), will ensure that Blue Ridge Hotel’s employees work in a safe and healthful condition. Other federal agencies, such as the Environmental Protection Agency (EPA) and Food and Drug Administration (FDA) will also impact Blue Ridge Hotel’s operation. In the state level, regulations set up by the Alcoholic Beverage Commission and the Employment Security Agency will also affect the operation of the organization (Barth et al., 2006). At the local level, regulations primarily focus on health and sanitation, and building and zoning.
In the recent years, protection of guests has become vital for the successful operation of hotels. Unlike in the traditional setup, most guest book their hotel rooms using online reservation system. While the adoption of technology has been beneficial to the hotel industry, these innovations have come with a significant upsurge in the number of deceptive websites and marketing practices developed to trick and defraud customers. While there are not direct regulations to protect hotel customers, Blue Ridge Hotel will dedicate towards promoting awareness to ensure that these customers are well-informed about the potential threat they face. For the operation of the hotel to be declared legal, it will have to adhere to the regulations set up by other U.S government agencies, such as the Federal Trade Commission, the Center for Disease Control and Prevention (CDC), and the Department of Commerce, among other.
As an organization, Blue Ridge Hotel targets to explore the gap that exists in hotel industry around the Blue Ridge Mountain Region. With a consistent growth experienced within the industry over the past decade, and a promising target market, the hotel is expected to benefits both the owners and the surrounding community. Based on the market research, there is no stiff competition in Newland, North Carolina. Besides, Blue Ridge Hotel has multiple advantages over its competitors. Therefore, through the comprehensive and high quality services, along with the competent management team, Blue Ridge Hotel is expected to effectively exploit the current gap in the market and achieve growth. Throughout its operation, the organization will always adhere to the industry’s regulations in its pursuit for its business goals and objectives.
References
Barth, S. C., & Hayes, D. K. (2006). Hospitality law: managing legal issues in the hospitality industry . John Wiley & Sons.
Chi, L. Y. (2019). Business Plan Daydream Hotel (Doctoral dissertation, President Un
