Executive Summary

Our goals and objectives are to ensure that we run a professional, profitable
and ethical business, building relationships with customers, suppliers and
investors. Some of our main objectives are to focus on providing complete
satisfaction to clients in terms of facilities and service standards, food and
beverage and related products, at a fair price, to ensure a safe, secure and
healthy environment for our guests, employees, local community and nature,
to develop the brand in unique and exclusive destinations by utilizing the
natural resources available and the latest innovations, to form strong alliances
with exclusive organizations and prestigious brands by ensuring a long-term
profitability. Our mission is to be the preeminent global hospitality company the first choice of guests, team members, and owners alike. Some success
factors of our hotel business are location and opportunity, technology, well
defined and consistent strategy, short and rapid decision making plans,
hospitality mindset, corporate culture, expertise and network, strategic alliance
and connection with customers.

1 | Page

Company
Summary
Company Ownership
The Bliss is formed by the partnership
among Anika Naz Choudhury, Mahabub Khan,
Kazi Samina Afroz, Md.Imtiaz Hossain Imti
and Hia Nawshad.

Start-up Summary
Start-up Expenses
Expenses

Tk. in 000

Raw Materials
Stores and Spares

71,500
0

Wages & Salary

8,700

Depreciation
Rent, Tax, Power-fuel
Repair & maintenance

35,000
85,700
3,300

Advertising , Insurance

12,011

Admin. Expense

61,100

Others
Total start-up expenses

21,989
2,99,300

Start-up Assets
Assets

Tk. in 000

Friends and family (cash asset)

Long-term assets
Other current assets
Total assets
Total requirements

5,000
6,24,000
10,000
6,39,000
9,38,300

2 | Page

Company Location and

Facilities
Location
Jubilee Road (near to the Shah Amanat
International Airport), Chittagong,
Bangladesh.

Location facilities
The Bliss is located near to the Shah
Amanat International Airport on jubilee
road which is the heart of the Chittagong
city. So the hotel is easily accessible from
the city airport by walking (about 15-20
min journey times) or by a taxi (5-10 min).

3 | Page

4 | Page

Services
Service description
Our products and services include:

drinks on

Transport
ation
(from the

fitness

airport to

the hotel)
Free car

parking
Conferenc
e and
Banquet

facility
Luggage

room
24 hours

restaurant
24 hours

and dry

room
Swimmin

g pool
Jacuzzi
High
security

welcome

system
Central
water
heating

system
Central
air

cleaning
Complem
entary

treatment
Mini Bar
Indoor
games

on Centre
24 hours
Laundry

facility
Spa and
massage

room
service
Informati

arrival
24 hours

conditioni

ng system
Portable
fire
5 | Page

extinguish

newspape

er
Cash

r
Tour

guide
Car rental

t shop
Departme

service
Salon
The Bliss

ntal store
Capsule

Kids Club
150 inch
Big

lift
Currency
exchange

TV

center
Locker

Projection

facility
Complem

Kit
Prayer

entary

room
Doctor on

machine

(ATM)
Handicraf

Screen

call

In room facilities:

In room

Plasma

safe
Intercom

television
Micro

service
Refrigerat

oven
Bathroom

or

telephone

Competitive Comparison
According to the current data, there is no
Five Star Hotel in Chittagong. Rather there
are only a few numbers of Four Star Hotels
available for the elite people. A short

6 | Page

description of these hotels is like the

following:
1. Peninsula Hotel, Chittagong-is regarded
as one of the best business hotels in
Chittagong, Bangladesh. This four star
hotel is recently constructed and is
facilitated

with all the modern and

technologically advanced amenities.

2. Agrabad Hotel, Chittagong- is a business
oriented 7 - story building offering
accommodation that suits the requirement
of both the Business and Leisure travelers
alike. The warmth and hospitality offered
by the staffs will surely make your stay
enjoyable and efficient.
3. Hotel Tower Inn International Ltd,
Chittagong- is spectacularly designed and
added

with

courteous,

traditional

attractive

hospitality

and

of

personalized

service.
The

first

and

foremost

significant

advantage for The Bliss hotel is its

location. Being located near to the Shah
Amanat International Airport, The Bliss
is uniquely positioned in the center of the
Chittagong city.
The second competitive edge of The
Bliss is the service; one of the major and
notable plus points for the hotel. We will
provide our level best services to our
customers before they emerge, which will

7 | Page

help us to get a jump on the competition by

creating a link in customers` minds
between a need and the fulfillment of the
need through our services.
The third competitive superiority of our
hotel is the well security system. It will
help our respectable customers feeling safe
and peace.
The Bliss has a highly qualified,
experienced and well-skilled management
team which is another competitive benefit
for our hotel.

Technology

Metal

detector
Access
control

system
Indoor
Omni

ceiling

antenna
Wi-Fi
Office
alarm

system
CCTV
Out
CCTV

Future products and

services
3D
experi
ence
in

Cinepl

ex
Tennis
court
Limou
sine

8 | Page

car

Water

servic

park
Mve

e
Cateri

npick

ng

Ice

servic

Cream

parlor

Market Analysis
Summary
Market Segmentation
Market Segmentation allows us to target and
market to a variety of customer groups with
different behavior with an offer that matches their
needs and budget level. Our hotel mainly aims at
the demographic segment of the economy.

Target Market Segment

Strategy
A target market is identified once a company
evaluates all possible market segments and
determines

which

would be

the

most

appropriate, and therefore profitable.

Our primary targets are professionals
from various industries to this area
Local firms will be targeted for day use of
conference facilities, room nights for visiting
executives and long stay professional guests.
We have segmented our target market into
three categories: commercial, group meeting,
and leisure.

9 | Page

The

Commercial

Segment:

The

commercial segment consists of individuals

who travel to a market to conduct business.
The length of stay for commercial guests
ranges from one to three days. Commercial
demands remain constant throughout the year
although it may decline slightly in the holiday
period. An influence on commercial lodging
demand is economic and demographic trends;
changes in FIRE (financial, insurance, and
real estate), service, wholesale trade, and total
employment; occupied office space; and air
passenger counts provide the most direct
correlations.
The Group Meeting Segment: Corporate
groups and those described as SMERFE
(social, military, ethnic, religious, fraternal,
and educational) make up the bulk of meeting
and group demand, which consists of
seminars,

training,

conventions,

trade

association shows, and similar gatherings of

ten or more people. Occupancy of this group
is relatively high during winter. This group
usually looks for hotels with extensive
meeting space, business technology, food and
beverage outlets, and the miscellaneous
components required to host meetings and
banquets. Corporate groups can boost a
hotels profit in two ways. First, during times
of national economic prosperity, corporate
accounts tend to exhibit limited price
sensitivity and book in large blocks, leading
to higher margins. Second, corporate groups

10 | P a g e

often sponsor banquets and other events that

generate revenue for the host hotel.
The Leisure Segment: Unlike

the

weekday prominence of commercial and

meeting and group demand, the leisure
market segment tends to fill rooms on
Thursday and Friday nights. Leisure travelers
also book weekday stays during holiday
periods,

when

commercial

demand

is

traditionally low.
The market segmentation will help us identify
the trends of our business:
Total Revenue per room, Total Revenue
per client
Day of Weeks stays
Length of Stay
Cancellation %
Market Needs
Since our hotel mainly aims at local and
international business traveler and corporate
clients, we fulfill their market needs by providing
banquet hall, reliable high standard services, prebooking

facilities,

last

minute

booking,

availability of large number of rooms (this is

mainly convenient for the group segment as they
tend to book room in large numbers), and any
other requirements with full satisfaction.
Market Trends
Studying market trends will help us identify
opportunities and threats that may affect our
profitability. Relevant trends include the growth
in

demand

for overnight

accommodations,

changes in travelers lodging needs, and new,

innovative properties that are opening in the

11 | P a g e

country. As Bangladesh is a fast growing

economy,

rising

multinational

number

companies

of

local

are

and

emerging.

Customers from such companies towards which

we have set out target market, have high buying
power and they are less price sensitive and expect
high quality service.

Market Growth

Source: Bangladesh Economic Review 2010

Market Analysis
As per information collected from Bangladesh
Development

Bank

Limited

(BDBL),

the

Commercial segment constitutes 60%, Meeting

segment 10% and the leisure segment 30%.The
summarized information are presented in the
following

table:-

Tk. in Cr
12 | P a g e

Potential
Customers

Growth %

2012

2013

2014

2015

2016

The
Commercial
Segment

5.25%

36.65

38.57

40.59

42.72

44.83

The Meeting
Segment

5.34%

6.11

6.43

6.77

7.13

7.51

The Leisure
Segment

11%

18.32

20.33

22.57

25.05

27.80

21.6%

61.08

65.30

69.93

74.90

80.14

Total

It is also gathered that out of the total demand for

Five Star hotel market share for Dhaka is 50%
and that of Chittagong city is 35%.

Main Competitors
Although Chittagong lacks proper 5 star hotels,
our competitors include:
1) Peninsula Hotel
2) Agrabad Hotel
3) Tower Inn International Ltd.

Strategy and
Implementation Summary
Our business plan`s Strategy and Implementation
Summary emphasizes what makes our business
concept compelling and how we will attract and
maintain a client/customer base.
Firstly, our strategic position informs an investor
that it will always be focused for the purpose of
our business plan.

13 | P a g e

Secondly, our Strategy and Implementation

Summary will always focus on being the absolute
best at what it does within its target market.
Thirdly, the plan would emphasize building a
long-lasting relationship with customers and even
having them become dependent on the company
for its specific services.
Finally, this summary says that our company will
always keep the promises that it has made, by
performing at that level of service
We ensure that our Strategy and Implementation
Summary's claims are valid and it is a critical
element of our business plan.

Marketing Strategy
As a service organization it is important that
marketing strategies be deployed to improve its
own ability to compete with other hotels, gain a
competitive advantage and thus retain a greater
number of customers.

First and foremost strategy is to obtain

customers through offering high quality

service of a five star hotel.

To create and sustain value for guests that

competitors find difficult to imitate.

Manage guests demand for products and
services in an attempt to change demand
(for example, charging higher room rates
in peak periods, offering special discount
in periods of low demand and using a
reservations system.

14 | P a g e

In a situation of under-demand, or
oversupply, we might offer different and
alternative

services,

including

complimentary and convenience services

(such as meals included in room rates, or
valet

parking).

We

could

increase

advertising, offer discounts or lower

prices,

or

follow

segments

whose

demands change according to season. We

could also initiate marketing programs
targeted at particular segments, or use idle
employees as walking advertisements,
or

market

services

under

exchange

agreements.
Manage the hotels ability to supply
products and services in response to guest
demand (for example, turning double
rooms into family rooms and hiring extra

staff during periods of high demand.

During periods of high demand we intend
to hire temporary staff and equipment,
add temporary facilities, or use equipment
and staff only where most urgently
needed. We also intend to increase the
number of staff, let staff work longer
hours (overtime), or multi-skill staff to
enable them to perform a wider variety of

tasks.
While building our social media team, we
intend to include person from every
department:

management,

marketing,

product development, customer service,

etc. Employees can take brand message,
localize it, and put their personality

15 | P a g e

behind it. For branding, we an attractive

logo of our hotel.

Sales Forecast
TK in CR
Room Rent
Restaurant
Fax & phone
Total Sales

36.73
23.76
0.59
61.08

Raw Materials
Wages & Salaries
Depreciation
Others
Subtotal Direct Cost of Sales

40.06
25.92
0.66
66.64

43.41
28.08
0.70
72.19

7.15
0.87
3.50
12.3
23.82

Pricing Strategy
In service industry, especially in the commercial
sections of the hotel industry, it is necessary to be
more market orientated. Therefore, in this
industry, price itself is a market driven factor and
it will affect future demand and eventually price

16 | P a g e

7.80
0.96
3.15
14.08
25.99

8.45
1.06
2.83
15.81
28.15

can be used as a promotional aid for enticing new

customers into the market or attracting them
away from competitor. Minimum prices or value
for money can be used as a sales image of the
services if suitable. As has been previously
indicated, price, especially in areas where quality
is difficult for consumers to assess in advance of
purchase, is often regarded as an indicator for
quality. In this circumstance, prestige or highprice policies may be more successful than value
for money. If price is seen as an indicator of
quality expected, it is essential to fulfill the
expectations of the customer, especially to
provide excellent services. The Bliss is actually
in the category of luxury class, where services
have traditionally been distinguishing, like
famous features of the hotel. Customers with
high income are attracted by the comfort and
status of such establishment so price must be
used to reinforce this image rather than as a
competitive device.
A smart pricing strategy is the best way to
increase revenue. So we have tried our level best
to set the price in a way that will attract our
potential customers, and in the same time it will
also increase the revenue.

Item

Unit

Quantity

Service Charge
in Tk.
(per day)

Regular Room

Nos.

100

12,000

Deluxe Room

Nos.

75

15,500

Super Deluxe Room

Nos.

50

17,500

17 | P a g e

Royal Suite

Nos.

15

25,000

President Suite

Nos.

60,000

Restaurant

Person daily

300

4,000

Fax & Phone

Person daily

300

100

Promotional Strategy
We create promotions according to consumer
needs across all platforms-from hotel marketing
on the web to traditional hotel advertising outlets.
The hotel avails customer attraction due to its
location near the airport which saves time for
travel and gives customers best facilities. Since
Chittagong is the port city, the second most
commercially active city our special focus is on
business travellers and guests. We intend to reach
them through the following ways.

Promotions

in

business

publications,

advertisements in chambers of commerce

(example: MCCI, International chambers

of commerce, BGCCI, BGMEA.

Promotion on Web: The hotels web page
consists all relevant informations and
online booking service. We also focus on
social networking websites to target

identified market segments.

Promote through travel websites- through
which many international customers are
attracted, price comparison websiteswhich distinguish hotels through price
ranging and regional international tourist
websites. We make sure of strong web
presence hence the hotels web page
18 | P a g e

includes vital information about our hotel

along with images and links to local

attractions and events.

Web address of the hotel is included on

business cards and in current advertising.

Sponsorship focusing on corporate trade
fairs. Example: Garments expo, paper
seminar

or

jute

seminar

where

international companies look for local

sellers.
One of the more effective ways to
advertise hotels discounted rate specials
is through travel agents and travel clubs.
This can be a particularly effective

promotion.
Promotion through outlets in Dhaka and
Chittagong airport which provide hotels
information,

allows

bookings

and

arranges for transport attracts many

customers.

Sales Strategy
Business guests are fewer prices sensitive hence
there is greater focus on quality of service.

Membership: The hotel offers special

discounts, reduced rate for facilities,
priority booking, and use of lounge in
Chittagong airport. Usage over a year,
customers can avail special platinum
membership

which

includes

more

discounts and extra/free facilities.

Free amenities: These amenities can

include a free continental breakfast or

19 | P a g e

breakfast buffet to each guest, a free

newspaper left at each guest's door and
even a concierge service that helps guests
get their dry cleaning done and find overthe-counter medication.

Offer discounts on bed and breakfast or

offer free room upgrades to guests
enrolling in the programs or once they
reach a certain number of visits.

Work with the various airlines to include

hotel at a discounted rate when the
traveler books a flight with that airline.
Offer

larger-scale

discounts

to

conventions that use those particular

airlines as well.

Special discounts will be given to the first

five families booking at the hotel.

Strategic Alliance
Strategic alliances with

Partner hotels- this allows customers to

enjoy discounts and free facilities at the
hotel and also at alliance hotels.
Credit cards companies such as American
express (Amex) customers booking or
paying through credit cards of this bank
will be benefitted with discounts.
Airlines Company such as Regent and
Bangkok airways- special discounted
rates will be given to customers
travelling
through
these
airline
companies.

20 | P a g e

Management
Summary
The management summary of our business plan
will mainly discuss about the organizational
structure, management team and personnel plan
of the hotel. It reflects the process of guiding our
employees and evaluating their performance
through a well skilled management team.

Organizational Structure
In our organizational structure, we have included
all our heads of departments and employees
working under them. This chart shows a
complete scenario of the chain of command of
The Bliss. This chart is shown in the appendix
of the report.

Management Team
Though our management team is divided into
five categories, every department is interrelated
with each other.

Finance Department: In order to set and

approve all financial budgets for staff
planning, provision of new equipment and
the main establishment supplies Anika
Naz Choudhury and Mahabub Khan are
in charge of finance department.

Sales and Marketing Department: Kazi

Samina Afroz and Md.Imtiaz Hossain
Imti, from the sales and marketing
department are responsible for promoting
the name of the hotel and services and to
generate business.

21 | P a g e

Human Resource Department: Hia

Nawshad and Mahabub Khan are the head
of the human department.

Housekeeping Department: Anika Naz

Choudhury and Kazi Samina Afroz are in
charge of housekeeping department.

Food and Liquor Department: As the

manager of the food and liquor
department, Md. Imtiaz Hossain and Hia
Nawshad are responsible for running all
the hotel`s food and liquor outlets such as
the caf, coffee shops, restaurant, bars and
fine dining room.

Personnel Plan
Tk. in absolute Figure
Personnel

Person

Year 1

Year 2

Year 3

12,96,000

19,00,000

20,90,880

Chief

Payroll Supervisor

7,68,000

8,44,000

9,29,280

Credit manager

5,76,000

6,33,600

2,61,360

Reservation Manager

7,68,000

8,44,800

9,29,280

Director of sales

9,28,000

10,21,000

11,22,880

Sales manager

4,80,000

5,28,000

5,80,800

Catering sales manager

5,76,000

6,33,600

6,96,960

Employee management

5,76,000

6,33,000

6,96,960

Liability Claims manager

5,76,000

6,33,000

6,96,960

Property maintenance
manager

5,76,000

6,33,000

6,96,960

/ Staff accountant

22 | P a g e

Garage manager

1,92,000

2,11,200

2,32,320

Health Spa manager

6,91,200

7,60,320

8,36,352

Caf manager

3,84,000

4,22,400

4,64,640

Room service manager

10,11,200

10,00,320

11,00,352

Executive Chef

15,36,000

16,89,600

18,58,560

Beverage Manager

4,80,000

5,28,000

5,80,800

Purchasing Agent

5,21,600

10,13,760

11,15,136

Security manager

5,76,000

6,33,600

6,96,960

Building Superintendent

5,76,000

6,33,600

6,96,960

1,39,20,000 1,52,00,000

1,67,20,000

Total Payroll

Financial Plan
Project Cost
The total cost of the project has been estimated at
Tk. 65.97 cr. including a net working capital 45
lakh. The total working capital requirement has
been assessed at Tk. 1.45 cr. The summarized
project cost is presented below:
Items

Taka in CR

Land

1.50

Building

28.80

Furniture & Fixture

14.45

Vehicle / Transport

5.00

Consultant Fee

0.50

Pre-operating Expenses

1.65

23 | P a g e

Cost of installation

0.50

Machinery & equipment

10.00

Total Fixed Cost

62.40

Net working capital

0.45

Cost escalation
Total Cost of the Project

3.12
65.97

Means of Finance
The aforesaid cost is proposed to be financed as
under:
a) Bank loan (BDBL):
Long term Loan

39.58

b) Equity:
Sponsors equity: (Owners will arrange fund in

28.69

equal proportion)
Total Loan & equity (a+b):

68.27

Start-up Funding
Table: Profit and Loss
Tk.in Cr.

Sales
Direct Cost of Sales
Other Cost of Sales
Gross Margin
Expenses
Raw Materials
Stores and Spares
Depreciation
Rent
Utilities
Insurance
Payroll Taxes
Other

Year 1
97.96
38.13
6.78
66.61

Year 2
106.87
41.58
10.66
75.95

Ye
115
45
11
82

11.44
0
5.60
0
13.71
6.21
0.87
9.54

12.48
.80
5.04
0
14.96
5.60
0.96
10.40

13

24 | P a g e

16
4
1
11

Total Operating Expenses

47.37

50.24

52

Profit Before Interest and Taxes

Interest Expense
Net Profit Before Tax
Taxes Incurred (40%)
Net Profit
Net Profit/Sales

66.61
4.06
62.55
25.02
37.53
38%

75.95
3.66
72.29
28.91
43.38
41%

82
3
79
31
47
4

Break Even Point: 49% of Capacity

utilization (1st year of operation)

Table: Pro forma balance sheet

T
k.in Cr.
Assets
Non-cash Assets from Start-up
Cash Requirements from Start-up
Additional Cash Raised
Cash Balance on Starting Date
Total Assets

Year
62.4
0.4
3.1
2.0
67.9

Liabilities and Capital Liabilities

Current Borrowing
Long-term Liabilities
Accounts Payable (Outstanding Bills)
Other Current Liabilities (interest-free)
Total Liabilities

1.0
39.5
.1

40.6

25 | P a g e

Capital
Planned Investment
Owner
Investor
Additional Investment Requirement (owner)
Total Planned Investment
Total Capital
Total Capital and Liabilities

25.6

1.5
27.2
27.2
67.9

Sales/Service Estimate
Item:

1st year

2nd year

3rd year

Revenue
at full
capacity

178.11
55

178.11
60

178.11
65

97.96

106.87

115.77

Capacity
utilization (%)
Total sales/service revenue

Assumption:
1. Operation Time: 24 hrs. per day and 360

working days in a year

2. Sales/Service Revenue
Item

Unit

Quantity

Service
Charge in Tk.
(per day)

Total
(per

Regular Room

Nos.

100

12,000

12,00,000

Deluxe Room

Nos.

75

15,500

11,62,500

Super Deluxe Room

Nos.

50

17,500

8,75,000

26 | P a g e

Royal Suite

Nos.

15

25,000

3,75,000

President Suite

Nos.

60,000

4,80,000

Restaurant

Person daily

300

4,000

12,00,000

Fax & Phone

Person daily

300

100

30000

Total

49,47,50

Total in 360
working days

178,11,0

Conclusion
A business plan is not just a lengthy document
that helps to obtain financing. It's truly a
thorough examination of whether the business
idea is workable. Preparing a business plan in the
early stages of developing the business can save a
great deal of time, money and distress by
showing where the weaknesses in the idea lie
and giving a chance to correct them before
making any serious mistake.

For example, in the process of putting together

our hotel business plan, we have discovered that
we haven't really thought enough about our
marketing budget or we haven't done enough

27 | P a g e

research on government regulations that will

affect our business. In putting together our plan,
we are being forced to examine the business from
the viewpoint of the skeptical potential investor
and the skeptical potential consumer, not just
from

the

perspective

of

the

enthusiastic

entrepreneur.

There's no question that putting together a good

business plan takes a tremendous amount of
work. But, we have tried our level best to make
our business plan a perfect one, so that it may
reflect our hotel The Bliss to our customers and
clients. We hopefully believe that our services
will fulfill customers needs and demands and it
will help us to compete in the business world by
being their first choice in the hotel industries.

28 | P a g e