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Asset Management 0

ASSET MANAGEMENT
Asset Management 1

Table of Contents
Executive Summary ........................................................................................................................ 3

Introduction ..................................................................................................................................... 4

Quality and Design ......................................................................................................................... 4

Renovation/refurbishment design and facilities.............................................................................. 5

Start with a foolproof plan .......................................................................................................... 6

Plan with restaurant’s vision and functionality........................................................................... 6

Latest trends ................................................................................................................................ 6

Quality......................................................................................................................................... 6

Economic Viability ......................................................................................................................... 6

Market Statistics.......................................................................................................................... 7

Structure of cost .......................................................................................................................... 7

The Capability of Management .................................................................................................. 7

Environmental sustainability practices ........................................................................................... 8

Reduce food waste ...................................................................................................................... 8

Energy efficient appliances ......................................................................................................... 8

Recycle, Reuse, Reduce .............................................................................................................. 8

Composting ................................................................................................................................. 9

Environment-friendly restaurant with quality food and service ................................................. 9

Financial value and return of the development or refurbishment ................................................... 9


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Return on Investment ................................................................................................................ 10

Return on Asset ......................................................................................................................... 10

Payback period .......................................................................................................................... 10

Net Present Value ..................................................................................................................... 10

FCI ............................................................................................................................................ 11

Stakeholders .................................................................................................................................. 12

Conclusion .................................................................................................................................... 13

References ..................................................................................................................................... 14
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Executive Summary

The resort of Hyatt Regency Perth is opened in 1984. This is located on the foreshore

parklands of Swan River. This is a five-star resort. This resort has four dining venues in which one

of the dining venues of the resort is café restaurant that has not been renovated after 35 years as

this property might be broken down somewhere. The café, restaurant has received many feedbacks

regarding the decoration, etc. For this café restaurant has the policies regarding the renovation and

improving the services. The concept of renovation will bring benefits to the sustainability of

economic and environmental objectives and concepts. This will help to lead the café restaurant to

compare to its competitors. This will bring more benefits to the stakeholders.
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Introduction

Hyatt Regency Perth is an excellent resort located on the foreshore parklands of Swan

River. This is a five-star resort. This resort has the best choice for each individual client and a

range of event coordinators with unique requirements. This resort has four dining venues including

La Strata, Cafe restaurant, plain street bar, and conservatory bar (Laura, 2016). The resort is been

here for 35 years so the property might be broken down somewhere. There is need of renovation

of café restaurant after a long time use and maintain. This restaurant has been overrated by the

feedbacks of guests. There have been a lot of complaints received about design, food, and

decoration in recent years (Georgia, 2017). Many of the stakeholders affected by this renovation

such as customer, investors, etc. The target of the resort is to improve the experience of the guest,

which, is based on the feedbacks, and renovating the café and the further facilities as per the

expectation of the guest that will be covered in the following discussion.

Quality and Design

The resort Hyatt creates an experience and try to put more focus on accommodation as well

as services in order to improve the satisfaction of the customer. The resort has been through the 35

years operation. There is a need to getting new renovation is essential to keep up with current

trends and renew its place. One of the characteristics and activity of a successful industry of cafe

is to constant improvement and proper presentation of qualitative services.

The quality and design exceed the expectation of customers in way of pre-booking to post-

stay. The variety in service of quality and reliability are important. Café will be designed according

to the full range of custom case good products including nightstands, media consoles, headboards,

tables, dressers, vanity bases, and luggage benches.


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This is very important to attract the customers in a café restaurant for the long run. The

design and quality have been modernized and offer good facilities (Levison, 2010). The

stakeholders would love to see the good quality and design of the café restaurant as it has worth,

hence, the renovation petition includes the accuracy. The restaurant should be designed in a manner

that allows a customer to find a better place to enjoyment. The design of the café restaurant consists

of the thermal and indoor quality of air, lighting of the restaurant, acoustic, safety features (Quin,

2018).

Renovation/refurbishment design and facilities

There are many elements to take into consideration in the design of a restaurant. The

concept of the success of a restaurant is “good food, good service, and good atmosphere. The café

restaurant of Hyatt is opened till night that offers an international buffet in the morning. This

restaurant provides services on the weekend as well for dining with a carte menu.

The café restaurant chairs and tables are replaced to a solid wood varnished with dark bright

colors. These changes have great effects on restaurant dining room furniture decoration and

competition with others. A well-decorated environment of Café should be able to improve the

interest of the diners.

The style and size of the chairs and tables are very important for café restaurant of Hyatt.

This is also the best feature to use light and bright tones when matching colors (Lawson, 2018).

The most important thing is to decide the color according to the overall style of the café. Following

are the objectives, sustainability, and concept for the renovation of a restaurant successfully.
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Start with a foolproof plan

Making a plan is the first step for the renovation of the restaurant. The goal of the café

restaurant will be achievable after renovating. The renovation consisted of constructing and

designing to the interior spaces of the restaurant. Renovation of the restaurant is an easy way to

freshen up and re-introduce the initial impression.

Plan with restaurant’s vision and functionality

For this, there is a necessary requirement to set up function and vision specialty and the

restaurant’s ambiance matches with the perspectives of the brand. The café restaurant is decorated

with a range of plants all around the restaurant. The plants on the wall will highlight the name of

the restaurant.

Latest trends

The objective of the renovation of the cafe restaurant is to lay emphasis on the need to look

at relevant trends. Analysis of the latest trends and come up with them is necessary. The restaurant

will bring light that is more natural into the restaurant by glassing ceiling and windows.

Quality

The cafe restaurant will improve the quality of the food and many services of the café by

renovating the restaurant with the new concept of serving.

Economic Viability

The renovation of café restaurant is required as more restaurant is coming into this business

and the renovation will help the resort to bring more customers. For this, there is also necessary to

bring and develop some operational strategies for running a restaurant successfully. This is
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possible by using the concept of quantitative methodology. Product served the management of

restaurant, customers, philosophies and personal goals had the highest overall mean response and

corresponded to the most positive influence on the viability of the restaurant. The market of labor

and retirement had the lowest means corresponding to a neutral effect on the success of the

restaurant (Martin, 2012).

The current economic climate of café restaurant of Hyatt is good for the customers. As this

organization will provide a good quality service after the renovation. Following are the economic

viability of café restaurant.

Market Statistics

Statistics of the market will create more options for the café restaurant. As this includes the

styles of the restaurant that are prevalent. This will develop the different concept of offering the

customer of the resort. The statistics of the market helps to present the restaurant with the

uniqueness of the different cuisine and points of price and target the market as well.

Structure of cost

Management of café restaurant have a good idea about the type of food, and determines

the suppliers of the food for the cost structure of the restaurant. Software programs of the café

restaurant will develop the accurately calculate projected food cost.

The Capability of Management

The management of the café restaurant has a set of skill and experience to make the venture

a success. The management of café restaurant has the eye to maintain a high level of satisfaction

of customers. They all have the capabilities to motivate and train staff members. They all have the

knowledge of making the operation of the kitchen to run smoothly.


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Environmental sustainability practices

Today’s customer of the restaurant is willing to spend more if a business uses eco-friendly

practices (Thepkanjana, 2016). For become an environmentally sustainable following are the

practices.

Reduce food waste

For reducing the waste café, the restaurant of Hyatt should rely on the latest technologies.

With the concept of renovation, they can use a digital inventory tool – like Peach Works of

BevSpot. These tools of software send alerts to the smartphone when inventory is nearing

expiration. This will get a real-time look at inventory so you do not over order. This will highlight

the chefs to grab ingredients to ensure they select those that are closest to expiring (Feder, 2017).

Energy efficient appliances

Café restaurant after renovation will cover the concept of reducing energy consumption.

As this concept of café restaurant has a lot of room for improvement. One of the best ways is to

opt for energy efficient appliances. This concept covers the time to upgrade or replace equipment,

as to look for the star logo of energy. These appliances use less energy without impacting

performance (Galvan, 2014).

Recycle, Reuse, Reduce

By recycling materials, reusing containers, and reducing waste concept after renovation

café restaurant can make huge strides towards sustainability. In the structure of renovation of café,

restaurant can swap regular toilet paper and paper towels with chlorine-free recycled paper. Mats

of kitchen should be made from 100% of materials recycled. Café restaurant will cover the policies

regarding recyclable containers and reusable cups (Port, 2016).


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Composting

The concept of renovation of café restaurant covers to reduce food waste and greenhouse

gases. For this management of restaurant just keep a separate can in the kitchen for staff to dispose

of food-based waste. At the end of each day, dump it into an outdoor composite bin.

Environment-friendly restaurant with quality food and service

Going green is a smart move of the café restaurant with the concept of renovation. This

concept will support the organization to attract new customers, satisfy current guests, and improve

the bottom line of the restaurant.

The concept of renovation of café restaurant of Hyatt covers the policies regarding the high

quality of food and services that reduce the impact on the environment as well. The renovation

policies of café will hold a good impact on the services. Good food with quality will be easy for

the customers to success.

Financial value and return of the development or refurbishment

The budget of the refurbishment of the café restaurant is AUD 45000. The location of a

café restaurant is able to attract customers. Variable costs like utilities as a restaurant, likely use

large amounts of gas, water, and electricity requires a little extra cost. The renovation of equipment

of kitchen, running water, and refrigeration requires extensive renovations to create an appropriate

appearance. Workplaces of café restaurants like storage spaces, counters, prep tables, food coolers,

freezers, serving the material and cold food tables are the part of the restaurant. Furniture like

tables, chairs, stools, and booth are part of the renovation (Bailey, 2011).
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Insurance is an essential part of a café restaurant of Hyatt. It is especially for a restaurant

that wants to be fully protected from liabilities. In an atmosphere of kitchen with the risk for

injuries in a busy kitchen full of dangerous equipment (Jersey, 2016).

Return on Investment

Return on Investment = Net Income / Investment Amount = 769000/3670000 = 20.95%

Return on Asset

Return on Asset = Net Income / Total Assets = 769000/7643000 = 10.06%

Payback period

Calculation Of Payback period

Cash Cash Cash


Years Outflow Inflow flows CF
0 -45000 -45,000 -45,000
1 11000 11,000 -34,000
2 11000 11,000 -23,000
3 11000 11,000 -12,000
4 11000 11,000 -1,000
5 11000 11,000 10,000
6 11000 11,000 21,000
7 11000 11,000 32,000
8 11000 11,000 43,000
9 11000 11,000 54,000
10 11000 11,000 65,000
4.09
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Net Present Value

Calculation of Net Present Value


Cash Inflow Cash Outflow
Years Cash Outflow Cash Inflow Factors PV PV
0 -45,000 1.000 -45,000
1 11,000 0.833 9,167
2 11,000 0.694 7,639
3 11,000 0.579 6,366
4 11,000 0.482 5,305
5 11,000 0.402 4,421
6 11,000 0.335 3,684
7 11,000 0.279 3,070
8 11,000 0.233 2,558
9 11,000 0.194 2,132
10 11,000 0.162 1,777
Total 46,117 -45,000
NPV= Total Cash Inflow PV -Total cash outflow
PV 1,117

FCI

FCI = Investment / Replacement Value = 45000/900000 = 5.00%

There is the risk involved in the renovation of the café restaurant. This organization can

lose the customers in large number. To avoid this kind of uncertainty organization should introduce

the customers with the concept of the renovation and can take the feedback regarding the

renovation and update the restaurant according to them very soon. Café, restaurant of Hyatt can

bring more policies and extra features to attract the customers. The renovation in a modern way

will bring the customers at large number, as this will hold the attracting features.
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Stakeholders

Owners, investors, operation managers, employees, and customers are the stakeholders that

will be affected by the renovation. As the current structure of café, restaurant of Hyatt is not able

to bring the customers in large number. This also shows the lower ratio of profit sharing.

Renovation will increase the number of customers. This will increase the profit in number.

The business of café restaurant will be manageable after the renovation as there is no need

for the lease or franchised. The concept of the renovation will lead the feedbacks in a positive

manner.

The concept of the renovation will give a great chance to stakeholders to compete with the

competitor in town. The competitor of Hyatt restaurant is The Furama. After passing the series of

renovation the café restaurant will get a good number of customers, compare to its competitors.

This restaurant has already received the third best food experience towards the industry of

hotel. The concept of the renovation will lead the good future with the next level of success. This

renovation will provide the new environment of work. This concept is very essential to get into

different kind of services as well as higher demand.

The operation managers of Hyatt will lead the charge of the renovation. This renovation

covers the concept of movement of staff to other venues. The investors would like to get the worth

of the renovation. This concept of renovation will have a new dining experience for the clients.

This concept will also meet the expectation of the clients.


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Conclusion

The concept of the renovation for discussing the community economy of café restaurant.

It will provide a common ground for people to share experiences, spark discussions, frustrations,

and conversations. The project of renovation will provide a more sustainable food system. This

concept of renovation will lead the high-quality updating services with compare to its competitors.

This concept will present the food with many categories to its customers. This is the level of

economic activity with the inclusive of food system. The static and dynamic map of financial value

and environmental factors will lead to the bright future of the café restaurant of the Hyatt

restaurant.
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References

Bailey, G. (2011). Relations of Investors. Hyatt Resort, 03-23.

Feder, L. (2017). Food And Beverage. Industry of Hotel, 8-24.

Galvan, R. (2014). Energy Efficiency of Hyatt. Efficiency, 9-50.

Georgia, C. (2017). Restaurant Under Renovation. Renovation, 1-25.

Jersey, P. (2016). Value By Finance. Refurbishment of Cafer restaurant, 02-39.

Laura, A. (2016). Hyatt Regency. Resort of Perth, 69-72.

Lawson, V. (2018, 05 02). The Stories of Hotel. Retrieved from Revitalized of Cafe :

https://medium.com/the-hotels-network/perths-new-esplanade-hotel-set-to-be-revitalized-

and-re-positioned-ad686c0ffaf5

Levison, M. (2010). Quality And Design. Morden Aesthetic, 2-5.

Martin, S. (2012). Hotel Corporation. Hyatt Hotel Corporation, 1-3.

Port, H. (2016). Refurbishment. Hayat Regency, 6-16.

Quin, A. (2018). Transformation. Hyatt, 1-2.

Sheppard, S. (2016). Hyatt Hotel Corporation. Investors Of Hyatt, 17-20.

Thepkanjana, P. (2016, 11 04). Hyatt Environment Sustainbility. Retrieved from Digital Initiative:

https://rctom.hbs.org/submission/hyatt-environmental-sustainability-in-hospitality-

industry/