Dreschler Hotel Consultation

I have reviewed the trend analysis for the Dreschler Hotel and competing hotels and find that in comparison to the competing market, Dreschler is soundly indoors the numbers on average out. Occupancy tar suffer as comp bed with interchangeable hotels appears to be al almost par with an average of 99. 3 index for the travel six month period of 2005. This is stating that on average Dreschler is almost at the same rate of occupancy as a nonher(prenominal) competing hotels. The average cursory room rate comes out to a 100. 8 index which is stating that the rate being charged daily is at or above what other(a) hotels in this competing industry ar charging.The same with the revenue per available board, the 6 month average comes out to an index of 99. 9 compared with worry hotels. In review of this trend analysis, I believe the occupancy rate tin can be improved during the summer months because of the location and activities every last(predicate)ow fored by this lodging facil ity. But, later reviewing Santa Cruz County for the year 2005, average occupancy rate for hotels was at 64. 7% and for the unscathed state of Arizona the annual average was only 65. 8%. Dreschler appears to be on the upper end of these averages at 72. 6% average for the tolerate 6 months of the year.This figure could obviously be laster or raze because of the figures for the first 6 months of the year. Based on the figures of having approximately 8 live on average per day available out of 30 is not all(prenominal) told that bad, nor is it good. When the ADR is at $103. 71 on average for Dreschler while the average ADR statewide is only $90. 39, it could be possible to draw out discounts during slower seasons in order to fill the populate. Another option would be to offer specials to with contact businesses such as wine tasting events, art and museum events, cultural events, sibilation watching events, and even biking or hiking outings.Potential Improvements Dreschler has quite a topographic point to offer as far as amenities in self-coloured and the come of rooms available. I would start with making changes in the rooms, amount of rooms, and types of rooms. For starters, let us cut back on the amount of rooms that are sharing rears and create more privacy for the guest. I would check up on that all rooms and suites have their own lavoratory at minimum. Single rooms with only bedroom setting and sitting nook should have a bathroom with toilet, sink, and shower. There should be a choice of which type of private room a guest would want by changing up the beds.Offer some with two twins, or single twin and hide-a-bed sofa and of course the queen. Next room style would be more like a mini apartment suite. This would have a sitting plain separate from the bedroom and bathroom. Also offer the choices of bed set-ups in the larger suites such as double twins, queen, and king. The bathroom would be the same as with the single rooms as well. There h as to be a sumptuous suite of some sort, a couple would be good like a Honeymoon suite or an Executive suite, or peradventure both. The honeymoon suite would be approximately 800 square feet of luxury.The bedroom would be separate from the sitting room, breakfast nook just inside the balcony doors the bathroom would be private with a bath as well as the toilet, sink, and shower. I would probably suggest this room be on the mho floor with a balcony overlooking the garden and possible put a Jacuzzi on this deck. The Executive suite would be geared for business staff office that may be in town or nearby for a convention or meeting of some sort. This room would offer two separate sleeping quarters, sitting stadium, breakfast nook, full bathroom with toilet, sink, and shower, and a deck as well, that overlooks the garden area.All rooms will be equipped with satellite television, a sound system that is controlled by the guest, scare clocks, Wi-Fi connection, and air conditioning. Ot her amenities will include coffee, tea, and hot cocoa in rooms with mini fridges, microwaves, a desk area, literature regarding the history of the contact area, community features, events, and activities, and of course for the bathroom we would offer a hair dryer, iron out board that folds up in the wall, and hand lotions, soaps, and shampoos. Other areas of the boldness could be opened up more for private sitting time or just admiring the beauty surrounding the lodge.Breakfast is served at the door of all rooms by 7 a. m. every morning, and consists of cheeses, fresh fruits, juices, yogurts, and fresh adust pastries. I would like to see a public dining area in the garden for those who wish to dine on their morning pastry dough and coffee in the comfort of the morning sun. Funding Options There are several funding options available since we have no working capital. We could go public and offer shares to raise money to invest into the modifications, but the task with this is t hat as a business owner you will not get to keep 100% of the profits you will be paying your shareholders a dividend.Equity investors will require a percentage of self-control as well as the furnish on their investment. This can also stray up being costly down the road. Another option is to gather a loan, but most wreaking institutes will only lend 60%-70% of the requested amount leaving the borrower having to raise the other 30%-40% in equity. This may not be a bad cud if the equity investor does not demand a large portion of ownership and is patient on returns. Another option is a 7(a) loan since they are the simplest and most common loan type from the Small Business Association.The backing of a 7(a) loan can be guaranteed for a vicissitude of world(a) business purposes such as working capital, machinery and equipment, furniture and fixtures, and debt refinancing (under special conditions). add maturity is up to 10 years for working capital and mostly up to 25 years for fixed assets (http//www. sba. gov). These types of loans are easily obtained since numerous banks in America participate in SBAs program and anatomical structure the loans according the requirements of this program.The SBA shares the risk with the bank if the borrower defaults. The eligibility requirements are fairly broad to deem the most diverse variety of small business financing need (http//www. sba. gov). To Convert or Not to Convert A couple of benefits to converting this situation to either a timeshare, condominium, or entangled-use property would be a) the immediate silver flow available up front from the rooms being purchased by timeshare holders and b) thitherfore the owner does not have to wait for the project to stupefy a return on investment.Timeshare would be nice in that all rooms would hopefully be sold and utilized throughout the year. The continuance of time that someone holds a share for can be up to 30 years. The condominium aspect is slightly different in that the investor does not actually use the room but hopes to make an return on his investment in that room. This can pose a problem if there is not much activity in that investors room. A mixed use set-up would probably be the most beneficial of the three since it would offer the owner a diverse source of income from a variety of shops and businesses within the hotel.Although, I do not see this being a surmisal here since this is a bed and breakfast establishment with over 90 shops within walking distance. You also have the issues of trying to attract high quality brand name partners to work with you, and selling the idea to other investors and possibly lending institutions could pose a real problem if you do not have a complete understanding of the market demands.I think that keeping this bed and breakfast as is would be the most beneficial but the modifications and room upgrades need to be more reconciling to a variety of guests in order to achieve the higher revenues possi ble. current Name Coming up with a new name for the establishment can be a challenge since I am suggesting the modifications that I am. There is no significant one type of person that I am trying to attract to this establishment, but more of a variety in order to fill all the rooms on a regular basis.I would like to offer up the name of Santa Cruz rustic Inn since this is in the heart of Santa Cruz County and offers up the scenic picturesque sphere side that it does. All of the features of this establishment speak country to me. The bird watching, hiking, internal beauty of the landscape surrounding the inn, the state parks, proximity of the Santa Cruz river, and just the all around peaceful feeling one has when here. I would like to offer a bed and breakfast that makes all who stay desire to return because of the comfort and relaxation that they feel while visiting this fine establishment.Referencehttp//www.tubaccountryinn.com/accommodations.html