The business is a Hotel & Wedding Venue in Norwich, Norfolk. It is currently already established as a very successful business, and the freehold of the site is up for sale, so all investments will be used for a deposit for a site & business which hold a value no matter what. The hotel is a 21 bedroom hotel with a restaurant and bar. In the extensive 30 acre grounds the hotel also has a permanent marquee catering for 300 people for a sitting meal or 600 for a buffet event.
The business has a strong events turnover including many bookings for 2016. The events include weddings, birthdays. christening, wakes, anniversaries, and many more.
As the company is already running under management I have 3 years worth of accounts and trading history. Which has brought to my attention areas of the business that could be improved. A few example are the service for the bar and restaurant which could be developed into a more substantial part of the business, the weddings can be taken more in house incorporating the whole wedding package from events planners to table designs, to cars and dresses. There is also massive potential for the 30 acres land to be utilised in many other ways as only approx 12 acres is being used up for the hotel and weddings. A few ideas that i've been looking at are a garden nursery, a football pitch for all local teams and schools. Then there is also potential to apply for planning permission to create dwellings to be rented/sold.
My background comes from the bar/restaurant industry and have done extensive research in hotels and weddings. From the age of 18 me and a business partner bought a public house in Eltham, of which I still own, and it is running very succesful and profitable. I run everything from the day to day running to the accounts and business side. After my years in the hospitality industry i have acquired some very good contacts for the drinks and food which could help with securing a higher GP% in the new business, these contact include Heineken, Cockburn & Campbell wines, Hills Prospect and Bookers cash & carry.
Plans for the Business
My plan for the business is to expand and improve the already substantial business that is currently running. It is run as a hotel with the addition of hire for events, they open the bar/restaurant for public but they don’t push this side of the business.
To start with the already existing business I will spend the first few months to review the current staffing, experience all the roles at the hotel and work to improve efficiency and cots within the hotel. This way I can work out what staff contribute to the work force and who doesn’t, making sure that all staff are working to their full potential.
Whilst I am working with the chefs we will brain storm ideas for the new bar menu that will allow customers to come eat out at an affordable price in the bar/lounge area, while still offering the fine dining for special occasions in the restaurant. The bar menu will consist a happy medium between fine dining and pub grub.
Once the we have established the new bar menu & staffing issues (if they exist) I will then start the expansion to the opening of the shopping centre unit. The shopping centre unit will be the base for the wedding/event planners while also housing the florist. With the potential of placing a dress shop with in.
From the start I will be bringing in 2 gardeners I know well to be setting up the nursery and start planting & growing the plants. Once we have a substantial supply of plants and flowers we will use this to supply our florist and of course to sell from the nursery itself. In doing this we will be able to increase our profit margins for the florist and nursery. From there to increase our profits again we can use in house florist to complete our floral displays for the hotel and the events, allowing us to cancel out hiring contractors for such occasions.
During this time, I will be enlisting the help of the manager to create an events schedule for the marquee to produce a once a month or twice a month events, which will include invest such as comedy nights, champagne evenings, tribute acts, special event for occasions like mother’s day, father’s day, Easter, summer parties, Halloween, Christmas & new year’s etc.
Promotional Events
We will be hosting a welcome party to celebrate the takeover and the new ownership, there will be an invite for all the local community and f course all investors are invited. In holding this party there will be all the information needed to show what the plans for the hotel are and making an emphasis on the new bar menu in the hope to receive a regular clientele as well as the passing trade for the rooms.
To promote the business, I will be running wedding fayres to promote the weddings. In this we will include setting up stalls for wedding cake businesses, are in house florist, chauffeur services, wedding makers/fitters, suit fitters/makers, music companies to supply the live acts/dj’s, our wedding planners and chefs will be there to answer any questions regarding the planning costs, food costs, and food services that are on offer and of course I will be there to answer any questions regarding the hire of the hotel rooms and function rooms. These fayres will provide all the services a customer will need for their wedding and we will be able to answer any questions they need answering. The plan will be to start with just 4 wedding specific fayres per year, then to increase to more if desired/needed.
Expansions Plans
Once we have successfully set-up all the joint businesses & have ensured that the service provided is to a high standard, I will set my attention to sourcing another site of similar style, in the hope to replicate the current format and idea to the new business. Any new acquisition will be freeholds only and will be funded again by a mortgage with the deposit coming from the build-up of cash within the company.
From here we will keep on expanding the business replicating the current model in all the new hotels. Also considered in the business will be city hotels as well as country hotels.
Year 1
Tunrover - 1292036
EBITDA - 390027
Year 2
Turnover - 1049121
EBITDA - 512703
Year 3
Tunrover - 1758729
EBITDA - 603003
Year 4
Tunrover - 1863172
EBITDA - 642419
Year 5
Tunrover - 1961019
EBITDA - 684450