Dreschler Hotel Consultation

I benefit up reviewed the prune analysis for the Dreschler Hotel and competing hotels and find that in equation to the competing market, Dreschler is wellspring within the numbers on median(a). Occupancy treasure as compargond with same hotels appears to be al al most(prenominal) par with an modal(a) of 99. 3 index for the pass away sise month period of 2005. This is stating that on turn- stride Dreschler is almost at the same rate of occupancy as other competing hotels. The norm daily room rate comes issue to a 100. 8 index which is stating that the rate being charged daily is at or above what other hotels in this competing industry are charging.The same with the taxation per available room, the 6 month norm comes out to an index of 99. 9 compared with deficiency well hotels. In review of this tr reverse analysis, I believe the occupancy rate potbelly be improved during the summer months because of the lieu and activities reared by this lodging facility. But, after reviewing Santa Cruz County for the socio-economic class 2005, modal(a) occupancy rate for hotels was at 64. 7% and for the whole state of azimuth the annual average was alto bilkher 65. 8%. Dreschler appears to be on the upper end of these averages at 72. 6% average for the last 6 months of the year.This figure could obviously be higher(prenominal) or lower because of the figures for the starting signal 6 months of the year. Based on the figures of having rough 8 rooms on average per day available out of 30 is not totally that no-good, nor is it sober. When the ADR is at $103. 71 on average for Dreschler while the average ADR statewide is only $90. 39, it could be realistic to continue discounts during slower seasons in edict to study the rooms. Another survival would be to offer specials to with surround pedigreees such as wine tasting events, art and museum events, heathenish events, raspberry watching events, and even biking or hiking outings.Potential Im provements Dreschler has quite a spell to offer as far as conveniences in whole and the aggregate of rooms available. I would start with make changes in the rooms, total of rooms, and signs of rooms. For starters, let us cut back on the amount of rooms that are sharing tricks and cook more(prenominal) privacy for the customer. I would jibe that all rooms and roomss lease their get lavoratory at miniskirtmum. Single rooms with only canroom setting and session recess should have a bathroom with toilet, sink, and shower. there should be a choice of which eccentric of hotshot room a guest would want by changing up the beds.Offer several(prenominal)(prenominal) with two twins, or single twin and hide-a-bed sofa and of form the queen. Next room style would be more handle a mini apartment suite. This would have a sitting area fracture from the bedroom and bathroom. as well as offer the choices of bed set-ups in the large suites such as double twins, queen, and k ing. The bathroom would be the same as with the single rooms as well. on that point has to be a deluxe suite of some sort, a couple would be good like a H superstarymoon suite or an Executive suite, or maybe both. The honeymoon suite would be near 800 square feet of luxury.The bedroom would be separate from the sitting room, breakfast nook merely inside the balcony doors the bathroom would be nonpublic with a bath as well as the toilet, sink, and shower. I would probably conjure this room be on the second floor with a balcony overlooking the tend and possible put a Jacuzzi on this be. The Executive suite would be deposit for business personnel that may be in town or close for a convention or skirmish of some sort. This room would offer two separate sleeping quarters, sitting area, breakfast nook, full bathroom with toilet, sink, and shower, and a deck as well, that overlooks the garden area. all rooms leave alone be equipped with major planet television, a sound syste m that is controlled by the guest, alarm clocks, Wi-Fi connection, and air conditioning. Other amenities will include coffee, tea, and hot burnt umber in rooms with mini fridges, microwaves, a desk area, literature regarding the history of the surrounding area, conjunction features, events, and activities, and of course for the bathroom we would offer a hair dryer, ironing board that folds up in the wall, and hand lotions, soaps, and shampoos. Other areas of the governing 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 dayspring, and consists of cheeses, pert fruits, juices, yogurts, and fresh baked pastries. I would like to see a public eat 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 abstract money to invest into the modifications, scarce the job with this is that as a business proprietor you will not get to keep 100% of the profits you will be paying your shareholders a dividend. uprightness investors will require a role of willpower as well as the return on their investment. This can also wind up being expensive down the road. Another option is to commence a bring, but most modify 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 deal if the equity investor does not study 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 microscopical Business Association.The financing of a 7(a) loan can be guaranteed for a potpourri of general business purposes such as working capital, machinery and equipment, furniture and fixtures, and debt re financing (under special conditions). contribute maturity is up to 10 geezerhood for working capital and generally up to 25 years for fixed assets (http//www. sba. gov). These types of loans are easily obtained since many avows in the States participate in SBAs schedule and 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 accommodate the most diverse salmagundi of itsy-bitsy business financing needs (http//www. sba. gov). To exchange or Not to Convert A couple of benefits to converting this property to either a timeshare, condominium, or blend-use property would be a) the straightaway cash flow available up front from the rooms being purchased by timeshare holders and b) therefore the owner does not have to wait for the project to generate a return on investment.Timeshare would be ok in that all rooms would hopefully be sold and utilized end-to-end the year. The length of time that someone holds a share for can be up to 30 years. The condominium aspect is meagerly different in that the investor does not in reality use the room but hopes to make an return on his investment in that room. This can pose a fuss if there is not much action mechanism in that investors room. A mixed use set-up would probably be the most proficient 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 possibility here since this is a bed and breakfast arrangement with over 90 shops within walking distance. You also have the issues of stressful to attract high shade brand name partners to work with you, and selling the idea to other investors and possibly loaning 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 bene ficial but the modifications and room upgrades need to be more accommodating to a variety of guests in order to achieve the higher revenues possible. New Name Coming up with a new name for the establishment can be a gainsay 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 Country social club since this is in the heart of Santa Cruz County and offers up the scenic picturesque country side that it does. All of the features of this establishment speak country to me. The bird watching, hiking, natural 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 assay desire to return because of the comfort and residu e that they feel while visiting this fine establishment.Referencehttp//www.tubaccountryinn.com/accommodations.html