`

Pineapp
le
Resort
This document contains business plan for Pineapple Resort,
which includes mission statement, executive summary,
strategies, financials, mortgage proposals, graphics and
images, and closing statements.

Business
Plan

Table of Contents
Pineapple Resort Organizational Chart
Organization Chart
Team Roles

Pineapple Resort Background History

Mission Statement

Executive Summary

Descriptions of Products and Services

Operations and Management 5

SWOT Analysis
Team Strategy

5
6

Fall 2012 (Year 0) Strategy

Spring 2013 (Year 1) Strategy 7

Mortgage Proposals

First Mortgage Request

Second Mortgage Request

Pineapple Resort Franchising Decision

Year One Financials

10

Pineapple Resort Quarterly Financial Pie Charts

Quarter 1 15
Quarter 2 15
Quarter 3 16
Quarter 4 16
Charts

17

Hotel Status Based on Occupancy Percentage

Hotel Status Based on Income After Taxes 18
Action Plan19
Closing

20

17

15

Pineapple Resort Organizational Chart

Team Roles
Organizer-Sakura Shu
Keeps meeting focused and in order, does his/her best to get through the
agenda (agenda for the meetings).
Encourager- Jared Ross
Brings good- humored appreciation to proceedings, able to defuse tensions
and revive flagging morale.
Facilitator- Sakura Shu
Ensures that the quieter members of the group are heard and everyones
contribution acknowledged.
Recorder- Yong Park
Keeps a note of decisions (especially decision as to who will do what before
the next meeting) ensures that everyone is aware of them.
Time-Keeper and Progress Chaser- Chenee Stone
Keeps an eye on the calendar and ensures that everyone is aware of the
state of play.
Coordinator- Shaniqa Roane

Sees the big picture (the strategic overview) with an eye of gaps and
overlaps, and presents this to the team.
Lookout- Raihan Taleb
Visualizes future scenarios, is alert to issues that may be looming over the
horizon keeps everyone informed.

Mission Statement
The mission of Pineapple Resort is to provide a superior hospitality experience
that makes our guests feel at home; every one of us is responsible for ensuring
guests maximum satisfaction by delivering exceptional quality service. We will
create a positive work environment for all our employees. By continually striving
to exceed expectations, we will achieve the results needed to satisfy our guests,
employees, and investors. Our company will also adhere to the principles of
sustainability and environmental responsibility.

Executive Summary
Pineapple Resort is a 250 room hotel specializing provide exceptional hospitality
service to business and leisure guests. Our objective is to create an exceptional,
friendly, and relaxing environment for all guests staying in our hotel. Moderately
priced between the high end hotel properties and traditional motel strips, the
Pineapple Resort falls into an affordability niche that is unique on its own in
Myrtle Beach, South Carolina.
Combined with an in-house restaurant, a hotel shop, quick check-in/check-out, we
are currently seeking investment funds to renovate our guest rooms, conference
rooms, business services, in-room mini-bars, and leisure club. With the new
amenities we are adding into our hotel, the Pineapple Resort will build the
fundamentals of a highly profitable hotel venture.
Pineapple Resorts owners have extensive hospitality backgrounds that will
ensure the running a success operation. Each of our partners is specialized in
specific areas within the hotel. Together as a team, we will ensure all aspects of
the hotel are managed appropriately. It is our ultimate goal to differentiate the
type of services offered at our hotel from our competitions, which will assist in
3

building our reputation and attract frequent business and leisure travelers who
require a higher level of personal service and recognition that they cannot receive
at our competing hotels.

Description of Products and Services

Here at the luxurious Pineapple Resort, we offer state of the art products and
services. We provide a great lunch, dinner, and dessert menus with our vendors
supplying local and fresh ingredients. Some starter menu items include Seafood
Pancakes, Avocado Pear with Shrimp, Smoked Scotch Salmon, and Tortellini
AllaCarbonara. We also provide a very diverse beverage menu which includes
draught and bottled beers, house and varietal wines, sherries, liquors, cocktails,
and soft drinks.
At the Pineapple Resort hotel we want to provide guests with the best experience
possible. Therefore we spend several weeks training our staff members to serve
and go beyond most expectations. We hire the best candidates for our staff
positions and we make sure that we always have enough staff members around
the clock to fulfill any needs a guest may inquire.
Our advertising is based on a direct sales force, and posters. We have chosen
these methods based on our target market because these specific types of
advertising appeals best to families, business, but most leisure travelers. We also
understand the importance of the Green Initiative towards the environment, and
so we have implemented waste reduction and recycling, water usage reduction
for gardens, landscaping, flow control devices, and energy usage reduction for
lighting, solar gain, and heat loss in bedrooms. We have refurbished over 100 of
our bedrooms and will continue until all renovations are complete. We have also
4

refurbished our full service in house restaurant for 100% guest satisfaction and
convenience.
For guest comfort we provide quality soaps and shampoos, hairdryer, laundry/dry
cleaning service, voice mail/message service, complimentary shoeshine, safety
deposit box available, and international direct dial telephone which are all
complimentary. Our in room entertainment consists of cable/satellite TV with pay
per view movie channel and games, on-line hotel information and guest account
status. In addition to these amenities we also provide concierge, and room lounge
services so that just about every guest need can be fulfilled in house.
At the Pineapple Resort we offer extra facilities to maximize the guest experience
at our hotel. We provide fee Wi-Fi, a hotel shop, quick check in/out, and an extra
parking area. We are working very diligently to provide room mini-bars, business
services, a leisure club, and conference/function rooms.

Operations and Management

Since the management of the Pineapple Resort knows how vital hotel operation
management is, we strive for the success of the hotel operation through rigorous
evaluation, extensive training, and advanced technological implementation. To
successfully operate the Pineapple Resort, the management will:
Prepare extensive policy and procedures manual and make sure they are
utilized by the management and the employees
Ensure the direction of the management through the ongoing general
manager and key department head meeting
Perform continuous employee training and evaluation to monitor
Provide safe and pleasant work environment possible for the employees
5

Assign staffs efficiently and analyze payroll daily

Prepare annual strategic business plan including marketing plans, budget
and cash projections, and capital improvement plans
Plan and carefully monitor meaningful cost controls such as energy costs
Set up the structured rates using yield management and check them daily
through records and reflect the market conditions as needed
Establish preventive maintenance programs such as regular Inspection
system on major equipment

SWOT Analysis

Strength

Location
High Tourist Attraction
Price efficient for all markets
Recreational environment
Great nightlife
Ideal for retirement vacations
High staff moral
Low staff turnover ratio

Weakness

Very slow off seasons

Maintenance of exterior of facility
Location
No conference room
Low capital
High renovation cost

Opportunities

Tours
Conferences
Conventions
Package deals for groups
Weddings/Events

Extreme weather concerns

Maintenance of exterior of facility
Competition during peak season
Competition with hotels with brand names

Threat

Fall 2012 Strategy

Our hotel, the Pineapple Resort, was very successful in last semester in
terms of reaching our goal of exceeding 18% occupancy and becoming the hotel
with the highest revenue. The Pineapple was in last place the first week and
gradually move its place to first by the third week. This was resulted by the
variety of ideas our teammates had pitched in and the belief that we can surpass
the struggling of being in last week in the beginning.
Our strategy for week one is to input room rates that are reasonable based
on the location and the description of the hotel. However, this did not work out
7

due the other teams lower rate. Therefore, our team must follow the prices given
by other teams. This became a huge disadvantage for us because we had to
attract customers with lower rates, which is always dangerous since we didnt
have any true value that attracts customers.
The shift from last place to second to last in week two boosted our
confidence quite a bit. The placement of other hotels made our team realize that
anything is possible. As long as we continue to work hard and be careful with all
our decisions, we would be able to generate higher revenue. Our decision of
making major renovations within the hotel is another factor. It is our teams goal
to make sure that the Pineapple Resort is not just an ordinary seaside hotel.
However, the decision of major renovation would require a second mortgage.
Our occupancy percentage had changed from 3.9% in week one to 20% in
week four. Not only did we surpass our goal to reach 18%, but we were also able
to surpass it by 2%. One of the positive facts that is shown in our table is not we
were able to generate roughly 40% of our total revenue from food and beverage.
This proves that our decision in terms of menu and vendor are appropriate for our
target markets. We also would like to generate more revenue from food and
beverage because we want to keep our guests dining in house.

Spring 2013 Strategy

Our semester this spring is to surpass the 50% occupancy and complete
major renovations. To increase occupancy level, we are planning to focus more on
8

marketing our hotel using variety of campaign strategies. We also will

strategically reduce our expenses by controlling our labor and food and beverage
costs.
To complete the major renovation, we need another mortgage. At this point,
we would like to requests a second mortgage with the amount of $5,000,000 for
major renovation within the hotel. The major renovations include rooms, business
center, conference center, and extra facilities. We have provided charts and
graphs to indicate how the mortgage will be distributed for our renovations.
The result of these major renovations is a huge improvement of our hotel
appearance. The objective of these renovations is to distinguish our hotel from
our competitors. We hope that by proving better facilities, experience and service,
we will be able to attract more guests, increase occupancy level, generate more
revenue, improve our profit margins, and return your investments.
After speaking with our guest speakers, we have made many adjustments in terms
of our strategies for the current year.
Vira Safai
Analysis Our Numbers
Understanding Our Revenue
Focus on Staff and Guest Satisfaction
Michael Anderson
Focus on Marketing
Direct Sales Force
Business Press
Sam Malhotra
Increase Conference Room Rate Per Guest
Room Rate Adjustment to Fit Off-Peak Seasons

Mortgage Proposals
We have requested two mortgages for major renovation in the hotel.
First Mortgage Request
Type of
Level Price Per Number of
Time of
Cost
Percent
Renovation
Unit
Units
Renovation
Rooms
3 $17,325.00
195
2 weeks $3,378,375. 67.57%
00
1.16%
Business
N/A $57,750.00
1
6 weeks $57,750.00
Service
Leisure Club
N/A $825,000.0
1
18 weeks $825,000.0 16.50%
0
0
Conference
N/A $500,000.0
1
20 weeks $500,000.0 10.00%
Room
0
0
2.06%
Mini Bar
N/A
$411.54
250
3 weeks $102,885.0
0
0.99%
Hotel Shop
N/A $49,500.00
1
8 weeks $49,500.00
1.73%
Other
N/A $86,490.00
N/A
N/A $86,490.00
Expenses
Total

$5,000,000. 100.00%
00

Second Mortgage Request

Renovation
Leisure Club
Conference Room
Others
Total

Capital Cost
$838,093.74
$501,875.00
$660,031.26
$2,000,000.00

10

Percentage
42%
25%
33%
100%

Pineapple Resort Franchising Decision

After weeks of discussions and analysis, we have decided to franchise with Hilton Hotels
& Resorts. Hilton Hotels & Resorts is one of Hiltons full service brands and also one of
the flagship brands of Hilton Worldwide. In search of the perfect brand to franchise, we
are trying to find hotel brands with similar concepts and goals as we do. Hilton Hotels &
Resorts places emphasis on both business and leisure travelers. Majority of its franchises
are located in major cities and vacation spots, fitting our concept perfectly.
Since Pineapple Resort is in the process renovating the hotel which includes the addition
of conference center, business center, hotel shop, and leisure club, Hilton Hotels &
Resorts concept is the one that is most similar to our targeted goals.
Some of the benefits of us franchising with Hilton Hotels & Resorts include:
Better training for employees
Established business model
Increased capital opportunities
Low capital overlay
Brand recognition

11

Year One Financials

Quarter
1

Quarter
2

Quarte
r3

Quarter
4

2012
Annual
Budget

Current
Year
Budget

Weekday

$
319,375.0
0
$
48,730.00

$
524,125
.00
$
221,100
.00
$
$
$
$
$
745,225
.00

$
402,375.
00
$
90,090.0
0
$
$
$
$
$
492,465.
00

$
1,758,000.
00
$
492,910.0
0
$
$
$
$
$
2,250,910.
00

$
3,041,340.
00

Weekend

$
512,125.0
0
$
132,990.0
0
$
$
$
$
$
645,115.0
0

$
161,172.0
0
$
$
978,000.0
0
$
$
$
1,139,172
.00

$
198,773
.00
$
$
202,980
.00
$
$
$
401,753
.00

$
121,363.
00
$
$
63,240.0
0
$
$
$
184,603.
00

$
572,271.0
0
$
$
1,266,240.
00
$
$
$
1,838,511.
00

$
102,897.0
0
$
$
102,897.
00

$
131,656
.00
$
$
131,65
6.00

$
75,987.0
0
$
$
75,987.0
0

$
366,101.0
0
$
$
366,101.0
0

Revenue
Room Sales

Conference
s
Tours
Events
Other
Total Room
Sales

$
$
$
$
$
368,105.0
0

$
852,734.30
$
$
$
$
$
3,894,074.
30

Food
Revenue
Restaurant

$
90,963.00

Conference
s

$
-

Tours

$
22,020.00

Events
Room
Service
Total Food
Revenue

$
$
$
112,983.0
0

$
990,028.83
$
$
2,190,595.
20
$
$
$
3,180,624.
03

Beverage
Sales
Bar
Mini-bars
Total
Beverage
Revenue

$
55,561.00
$
$
55,561.0
0

12

$
633,354.73
$
$
633,354.73

Total Food &

Beverage
Revenue

$
168,544.
00

$
1,242,06
9.00

$
7,959.00

$
15,139.00

$
$
$
-

$
$
$
-

$
7,959.00

$
15,139.00

$
533,40
9.00

$
260,590.
00

$
19,747.
00
$
$
$
$
19,747.
00

$
11,432.0
0
$
$
$
$
11,432.0
0

$
$
2,204,612.
00

$
$
3,813,978.
76

$
54,277.00

$
93,899.21

$
$
$
-

$
$
$
-

$
54,277.00

$
93,899.21

$
$
4,509,799.
00

$
$
7,801,952.
27
Current
Year
Budget

Other Sales
Telephone
Internet
Shop
Leisure
Club
Total Other
Sales

Total Revenue

$
544,608.
00

$
1,902,32
3.00

$
1,298,3
81.00

$
764,487.
00

Quarter
1

Quarter
2

Quarte
r3

Quarter
4

2012
Annual
Budget

$
160,697
.00
$
60,555.
00
$
221,252
.00

$
73,835.0
0
$
34,489.0
0
$
108,324.
00

$
286,816.0
0
$
124,846.0
0
$
411,662.0
0

$
7,424.00

$
26,248.00

$
45,409.04

$
115,748.
00

$
437,910.0
0

$
757,584.30

Cost of Sales
Rooms COS
F&B COS
Food Cost

$
45,187.00

$
7,097.00

Beverage
Cost

$
25,550.00

$
4,252.00

$
70,737.00

$
11,349.00

$
5,169.00

$
824.00

Total Cost of
Sales

$
75,906.00

$
12,173.00

Gross Profit

$
468,702.
00

$
1,890,15
0.00

$
1,064,2
98.00

$
648,739.
00

$
4,071,88
9.00

$
7,044,367.
97

Front
Office/Unif
ormed
Staff

$
61,814.00

$
62,301.00

$
61,814.
00

$
61,814.0
0

$
247,743.0
0

$
428,595.39

Housekeep
ing

$
108,600.0
0

$
108,600.0
0

$
108,600
.00

$
108,600.
00

$
434,400.0
0

$
751,512.00

Total F & B
Cost of
Sales

$
496,191.68
$
215,983.58
$
712,175.26

Other COS
Telephone
COS

$
12,831.
00
$
234,083
.00

Payroll &
Related
Rooms

13

$
170,414.0
0

$
170,901.0
0

$
170,414
.00

$
170,414.
00

$
682,143.0
0

$
1,180,107.
39

F&B

$
84,888.00

$
84,414.00

$
84,414.
00

$
84,888.0
0

$
338,604.0
0

$
585,784.92

Conference
s&
Banquets

$
-

$
-

$
-

$
-

$
-

$
-

$
84,888.00

$
84,414.00

$
84,414.
00

$
84,888.0
0

$
338,604.0
0

$
585,784.92

$
-

$
-

$
-

$
-

$
-

$
-

$
-

$
-

$
-

$
-

$
-

$
-

$
255,302.
00

$
255,315.
00

$
254,82
8.00

$
255,302.
00

$
1,020,747.
00

$
1,765,892.
31

$
468,702.0
0
$
170,414.0
0

$
1,890,150
.00
$
170,901.0
0
$
84,414.00

$
$
213,400.0
0

$
$
1,634,835
.00

$
648,739.
00
$
170,414.
00
$
84,888.0
0
$
$
393,437.
00

Quarter
1

Quarter
2

Quarte
r3

Quarter
4

$
4,071,889.
00
$
682,143.0
0
$
338,604.0
0
$
$
3,051,142.
00
2012
Annual
Budget

$
7,044,367.
97
$
1,180,107.
39

$
84,888.00

$
1,064,2
98.00
$
170,414
.00
$
84,414.
00
$
$
809,470
.00

General
Manager's
Office

$
36,244.00

$
36,244.00

Departmen
t Heads

$
59,568.00

$
59,568.00

$
36,244.
00
$
58,630.
00

$
36,244.0
0
$
59,568.0
0

$
144,976.0
0
$
237,334.0
0

$
95,812.00

$
95,812.00

$
94,874.
00

$
95,812.0
0

$
382,310.0
0

Total
Rooms

Food and
Beverages

Total Food
and
Beverages
Other
Staff Costs
Total Other
Department
s
Total Payroll
& Related

Gross Profit
Less Wages
Gross
Profit
Less
Rooms
Less F&B
Less Other
Total Gross
Profit Less
Wages

$
585,784.92
$
$
5,278,475.
66
Current
Year
Budget

Central
Undistributed
Costs
Payroll and
Related

Total
Payroll and
Related
Expenses

14

$
250,808.48
$
410,587.82
$
661,396.30

Other
Direct
Costs

$
$
1,542.0
0
$
30,286.
00
$
15,275.
00
$
10,097.
00

Uniforms

$
1,468.00

$
1,494.00

Maintenan
ce

$
8,316.00

$
18,986.00

$
15,275.00

$
15,765.00

$
2,771.00

$
6,328.00

$
4,306.00

$
6,994.00

Cleaning
Materials

$
4,014.00

$
7,545.00

Training

$
520.00

$
520.00

Small
Equipment

$
8,359.00

$
15,684.00

Contract
Maintenan
ce

$
19,505.00

$
36,600.00

Refurbishm
ent Costs

$
117,740.0
0

$
-

$
-

$
-

$
-

$
-

$
-

$
-

$
-

$
-

$
-

$
-

$
-

$
-

$
-

Energy
Costs

$
6,426.00

$
7,694.00

$
7,001.00

$
29,637.00

$
51,272.01

Water
Costs

$
1,712.00

$
2,346.00

$
1,999.00

$
8,814.00

$
15,248.22

Waste
Costs

$
1,712.00

$
2,346.00

$
1,999.00

$
8,814.00

$
15,248.22

$
192,124.
00

$
122,302.
00

$
$
8,516.0
0
$
2,757.0
0
$
2,757.0
0
$
156,12
8.00

$
96,371.0
0

$
566,925.0
0

$
980,780.25

$
(74,536.0
0)

$
1,416,721
.00

$
558,468
.00

$
201,254.
00

$
2,101,907.
00

$
3,636,299.
11

Property
Taxes &
Insurance

$
101,998.0
0

$
101,998.0
0

Depreciatio
n

$
92,902.00

$
91,746.00

$
60,393.0
0
$
89,476.0
0

$
366,387.0
0
$
364,727.0
0

Bank
Charges

$
4,306.00

$
6,994.00

$
101,998
.00
$
90,603.
00
$
7,357.0
0

$
5,464.00

$
24,121.00

Sales &
Marketing
(Ads)
Printing/St
ationery/m
enus
Credit
Card
Commissio
ns

Market
Research &
Consulting
Costs
EMS
Spending

Total Direct
Costs

Income
Before Fixed
Charges

$
7,357.0
0
$
9,838.0
0
$
520.00
$
20,155.
00
$
47,028.
00

$
1,488.00

$
5,992.00

$
10,366.16

$
71,748.00

$
124,124.04

$
61,590.00

$
106,550.70

$
3,720.00

$
22,916.00

$
39,644.68

$
5,464.00

$
24,121.00

$
41,729.33

$
5,606.00

$
27,003.00

$
46,715.19

$
520.00
$
11,743.0
0
$
27,396.0
0

$
2,080.00

$
3,598.40

$
55,941.00

$
96,777.93

$
14,160.0
0
$
15,275.0
0

$
130,529.0
0
$
117,740.0
0

$
225,815.17
$
203,690.20

Fixed Costs

15

$
633,849.51
$
630,977.71
$
41,729.33

Quarter
1

Quarter
2

Quarte
r3

Quarter
4

2012
Annual
Budget

Current
Year
Budget

$
7,059.00

$
30,040.00

$
51,969.20

$
162,392.
00

$
785,275.0
0

$
1,358,525.
75

$
7,962.00

$
7,660.00

Total Fixed
Costs

$
207,168.
00

$
208,398.
00

$
7,359.0
0
$
207,31
7.00

Gross
Operating
Profit

$
(281,704.
00)

$
1,208,323
.00

$
351,151
.00

$
38,862.0
0

$
1,316,632.
00

$
2,277,773.
36

$
-

$
-

$
-

$
-

$
-

$
-

$
(281,704.
00)

$
1,208,323
.00

$
351,151
.00

$
38,862.0
0

$
1,316,632.
00

$
2,277,773.
36

$
(281,704.
00)

$
1,208,323
.00

$
351,151
.00

$
38,862.0
0

$
1,316,632.
00

$
2,277,773.
36

Interest
Expense

Other
Income

Income
Before Tax

Business
Tax
Income After
Tax

16

Pineapple Resort Quarterly Financial Pie Charts

Q1 Revenue
10% 1%
21%
68%

Rooms
Food
Beverage
Other

Q2 Revenue
5% 1%
34%
60%

17

Rooms
Food
Beverage
Other

Q3 Revenue
10% 2%
31%

57%

Rooms
Food
Beverage
Other

Q4 Revenue
10% 1%
24%
64%

18

Rooms
Food
Beverage
Others

Hotel Status Based on Room Occupancy

70
60
50
40
Percent Occupancy

30
20
10
0
Last Year

Q1

19

Q2

Q3

Hotel Status Based on Income After Taxes

1500000

1000000

500000

Income After Taxes

0
Last Year

-500000

-1000000

-1500000

20

Q1

Q2

Q3

Action Plan
Our Year One Goal:

Effectively position our hotel to be successful in the marketplace

Maximize sales and profits
Achieve both AAA Diamond Ratings and Mobile Star rating
Establish a franchise agreement with a major hotel company
In order to fulfill these 4 strategies we will do the following:

21

Closing
Overall, working with HOTS was an up and down experience. As a group, we have
evolved so much from where we started to today. We the group was very formed, most of
us were quiet shy in terms of communicating our thoughts to each other. We were
waiting the leaders to emerge within the group and lead us through the process of this
simulation. And eventually our group was changed into a team. Unlike most other teams
within the class, we make your decisions very quickly; we have the general idea of just
make the decision and go with it with no second thought or doubting ourselves. We
realized that in order to succeed in HOTS, we have to work as a team with one final goal.
Things we learned include:
Communicate effectively
Have Fun
Be open-minded
Adjust accordingly
Be creative
Use work experience
Take chances
Its ok to fail
Voice your opinion
22

 Educated decisions

23