Business plan for Genet Hotel

Contents
General Profile Of the project..........................................................................................................4

1. Executive Summary.....................................................................................................................5

1.1Introduction...........................................................................................................................5

1.2 The Project.............................................................................................................................5

1.3 Our Services...........................................................................................................................6

1.4 The Market.............................................................................................................................6

1.5 Financial Considerations........................................................................................................7

1.6 Source of Finance...................................................................................................................7

1.7 Objectives...............................................................................................................................8

1.8 Mission...................................................................................................................................8

1.9 Keys to Success......................................................................................................................9

2. Company Summary...................................................................................................................10

2.1 Company Ownership............................................................................................................10

2.2 Company History.................................................................................................................10

2.3 Market Analysis Summary...................................................................................................10

2.4 Market Segmentation...........................................................................................................11

2.5 Target Market Segment Strategy.........................................................................................12

Market Needs.........................................................................................................................12

2.6 Service Business Analysis...................................................................................................12

Competition and Buying Patterns..............................................................................................13

3. Layout Structure........................................................................................................................13

4. CAPACITY PLANNING..........................................................................................................19

5. Strategy and Implementation Summary....................................................................................20

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 Business plan for Genet Hotel

5.1 Process / Steeps....................................................................................................................20

5.2 Competitive Edge.................................................................................................................21

5.3 Sales Strategy.......................................................................................................................21

5.4 Sales Forecast.......................................................................................................................22

6. Management Summary..............................................................................................................22

Personnel Plan........................................................................................................................23

7. Total Project Cost......................................................................................................................23

8. Financial Analysis.....................................................................................................................26

8.1 Break-even Analysis............................................................................................................26

8.2 Projected Profit and Loss.....................................................................................................26

8.3 Projected Cash Flow............................................................................................................27

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 Business plan for Genet Hotel

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 Business plan for Genet Hotel

General Profile Of the project

1. The Promoter: W/ro Genet Tesfaye

 Nationality :- Ethiopian
 Address: Oromia Region, West Guji Zone, Guanguwa town
 Cell Phone: 09 11 86 31 85

2. The Project
 Location: Oromia Region, West Guji Zone, Guanguwa town
 Type of the project: Hotel
 Legality: Legal form of business
 Status of the project: up grading
 Total investment capital: 5,737,100 Birr
 Sources of finances: 65.2% (3,737,100) of the total investment
capital is from owner equity & the rest 34.8% (2,000,000) is from
Bank loan.
 Project output: Service
 Employment opportunity created: 5-7 permanent and 25-35
seasonal employees
 Licensing agency : Representatives of Ministry of trade

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1. Executive Summary

1.1Introduction
The long-term goal of W/ro Genet Tesfaye Standardized Hotel business is to provide all hotel
service, Bed and other super market to the customers and is to become the best choice on Abaya
Wereda, Ganguwa town for temporary pension by creating a differentiated experience
capitalizing on personal service, and its unique location in one of the most attractive parts of the
Ganguwa town. We plan to be more than a great bed and other business center. We plan to
create an environment of pampered luxury that surpasses the standard fare for customers.
Expanding our exposure via the Internet and introducing the surrounding community to people
that have not yet discovered this year-round paradise will allow us to maintain a higher than
average occupancy rate and above average profits.

1.2 The Project

Genet Hotel Business aimed to offer different services for the local community and nearby
societies. After possession and a brief period of becoming established, the business center will
diverse into other ventures to ensure a steady flow of patrons (tourists and locals) through its
doors.

1.3 Our Services

Genet Hotel Business Center will be originally started its business at the start of 2015 E.C and
is believed to have been one of the standardized hotel business in Abaya Woreda, Ganguwa
town, ,which is located at 365 km to the south direction from Addis Abeba to Moyale highways.
The building the rental building have a number of restorations, bed room, super market and
general hotel services. It have 18 rental bed room, 2 rental shop room, Banquent & conference
room, Restaurant & bar, Cottages area, kids and board game area and one general hotel service
delivering room units with owner-occupancy in an unused room.

Creating a "home away from home" which is often more beautiful and palatial than where they
are traveling from will ensure many return customers. The riches of surrounding town which are

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Dilla, Wonago, Bule Hora, Hawassa, Shashamane, and others have always drawn a significant
number of tourists to the Oromya regional state West Guji zone Abaya woreda of recreational
center including Walame hot-spring, Samaro and Doko Chare incent artistries, the SNNP Gedeo
traditional living style and Konso tracing . In addition to providing information about such
locations, we plan to collaborate with tour agencies and businesses throughout the area by
offering packages and special rates.

As the bed, business center and hotel room becomes established through the peak season, we
plan to expand our services to the residents of Wenago and surrounding community in time for
the off-season. The adjoining rooms open creating a large area, ideal for formal or informal
gatherings (i.e. wedding receptions, office parties, Christmas parties, etc.).

1.4 The Market

Genet hotel business, along with other medium business center on Abaya Woreda Ganguwa
town, has been a substantial part of the island tourism. Business center constitute the largest
percentage of source of income for the municipalities on the Ganguwa town in terms of units but
still the demand of the local customers as well as others who are coming from abroad are
unsatisfied.

A modest projection for increased unit rental is 30% per year. Competitors on the Ganguwa town
have averaged 30% + rental increases over the past two years, and the project is forecasting 50%
increases for the next two years before hitting full capacity. This projection is without any
significant increase in advertising or exposure, but is based on the general average increase in
tourism flow and level of urbanization.

Our two major customer segments are local customers and other merchants who come from
nearby towns. This includes Dilla, Wonago, Y/Cafee, Cichuu, Hase Haro and other customers
from all of Abaya woreda kebeles. Subscriptions to various Web services will provide
international exposure to potential customers for nominal annual fees.

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1.5 Financial Considerations

Genet hotel business will be acquired via a small business administration (SBA) loan and
equity finance.

1.6 Source of Finance

The intention of this project is to using financial sources of the owner and some from bank loan.
The source of fund is assumed to be 65.2 %( 3,737,100) birr from the owner and the remaining
34.8% (2,000,000) birr from bank loan.

We estimate average monthly fixed costs to be at approximately 250,000 Birr for expenses plus
interest payments. Peak and off-season will have significant impact on the monthly earnings. For

the first year, on-season revenues will offset off-season losses. As Genet hotel business centers
builds its market position among the local patrons, we anticipate that off-season revenues will be
enough to break even during that season.

1.7 Objectives

1. Open the Genet standardized hotel as a "turnkey operation" at the first phase, and new
rooms under an increased rental rate after possession.
2. Demonstrate a minimum of 65% occupancy averaged throughout Year 1.
3. Increase exposure and market using Internet technology and direct advertising to the
customers in general and for the local youths in particular.
4. Through incentives and increased exposure on the Internet, we hope to increase off-
season occupancy by 30% the first year.
5. Increase off-season use by divesting into other uses for property (cater parties,
receptions, weddings, etc.).

1.8 Mission

The mission of Genet hotel business is to become the best choice in Abaya woreda Ganguwa
town for temporary rest room by expanding our exposure via the Internet (with multiple
networks and links), and introducing the woreda to areas that have not yet discovered this year-

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round paradise. We plan to be more than a great bed and breakfast. We plan to create an
environment of pampered luxury that surpasses the standard fare for customer.

The Pension house guest will have every need met to ensure his/her comfort. For special
occasions, catered meals, chilled wine, etc. can be provided for an additional stipend. During the
weekends, guests will return to the bed and breakfast in the evening and find cheese, fruit, and
wine for snacking before turning in.

As the bed and hotel service becomes established through the peak season, we plan to expand
our services to the residents of Ganguwa and Dilla in time for the off-season. The outdoors, with
its access to the beach, a beautiful, tropical front yard, and a private deck, opens several
additional opportunities. With the capability for a catered reception inside, Coach House will
make the event smooth and easy for the guests. Immediate family or selected members of the
wedding party would be able to stay at the pension comp, while other party members will be
referred to neighboring Inns (Small and Medium Hotel) which are found in the town. This
collaborative practice is not new to Ganguwa, but Coach House will be a new member in the
exchange.

Tourists will want to explore the riches of Ethiopian County (Bonaventure Cemetery, River
Street, Worms Low, Ethiopian's historic district, market square, the marinas, and Natural hot
spraining to name a few). In addition to providing information about such locations, we plan to
collaborate with tour agencies and businesses throughout the area by offering packages and
special rates with in-kind incentives for the cooperating merchants, including tours originating
from the Coach House.

Amenities (Additional Shopping Center) that go beyond the typical Bed and Breakfast will
include:

 A complimentary music CD for each room that the guest may keep (copy included in
packet).
 An extensive video and audio library for guest use.
 Starbucks coffee.

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 A variety of herbal teas.

 Daily fresh-baked muffins and fresh fruit.
 Links to other businesses and services in the town and also the country as a whole.

1.9 Keys to Success

In order to succeed, the new management will strive to achieve the following goals:

 Position Coach House Bed and general hotel service as the best Bed and all hotel service
on Abaya woreda Ganguwa town among the numerous tourists.
 Build strong market position among the local patrons
 Maintain sound financial management of the venture.

2. Company Summary

Genet hotel business is an established Bed &other hotel service, and will have been in operation
in the coming years after aqua ration of fully license from concerning bodies for further
expansion. After possession and a brief period of becoming established, Coach House will
diverse into other ventures to ensure a steady flow of patrons (tourists and locals) through its
doors.

2.1 Company Ownership

Genet hotel business will be a sole business, which is owned by W/ro Genet Tesfaye. W/ro
Genet began her business at the age of 20 working in a quick-service food service operation and
earned her way through local knowledge as a server and bartender. After her earning knowledge,
she worked for a server in her father Pension which is located in SNNP region Gedeo zone
Y/Ceffe town.

With the highest turnover of help for startup pension, we will rely on family to fill in where
required until we are off the ground and marketing a profit.

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2.2 Company History

Genet hotel business will have been originally built in 2015 E.C and is believed to have been
one of most train stations on Abaya Woreda Ganguwa town, linking the town with other nearby
town like Dilla, Hawassa, Wonago, Y/Cefe & Bule Hora to name some.

2.3 Market Analysis Summary

Genet hotel business will focus on quality, luxurious, yet affordable, lodging for vacationers
interested in exploring Abaya woreda and the surrounding coastal regions Ethiopia, south of
Ethiopia. This area is a sleeping giant on the verge of awakening.

Our most important groups of potential customers are those who traditionally choose the bed and
breakfast climate to the more traditional and sterile surroundings of hotels. Creating a "home
away from home" which is often more beautiful and palatial than where they are traveling from
will ensure many return customers.

2.4 Market Segmentation

Our two major customer segments are tourists from the north who traditionally prefer the cozy
environment of Bed and hotel service, and local patrons who need the facilities for various
events.

A modest projection for increased unit rental is 30% per year. Competitors on the town have
averaged 35% + rental increases over the next coming three years, and the Abaya small and
medium hotel is forecasting 50% increases for the next two years before maxing out at full
capacity. This projection is without any significant increase in advertising or exposure, but is
based on the general average increase in tourism.

Table 1: Market forecast

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Market Analysis
2016 2017 2018 2019 2020
Potential Growth CAGR
Customers
Local Patrons 20% 100,000 120,000 144,000 172,800 207,360 20.00%
Tourists 5% 5,000 5,250 5,513 5,789 6,078 5.00%
Total 19.40% 105,000 125,250 149,513 178,589 213,438 19.40%

2.5 Target Market Segment Strategy

We see that Abaya woreda, in general, is under exposed as a winter vacation destination. We
plan to aggressively pursue guests from the north while introducing southern part of Ethiopia to
this under-tapped market population. We also plan to use the pension for local patrons by
opening it for catered parties, receptions, etc.

Subscriptions to various Web services will provide international exposure for nominal annual
fees. Committing to staying in the building to book reservations and opening the pension to
diverse groups of people will also increase bookings.

Market Needs

Similar to tourists who choose to stay in coastal hotels, customers who patronize pension seek
relaxation, fun and stress management while on vacation. However, this type of customer also
prefers comfortable accommodations in a cozy, family environment. These patrons are more
social, they love meeting new people while at the same time require enough privacy to enjoy
their vacation. Coach House has all the necessary facilities to attract such customers.

2.6 Service Business Analysis

Genet hotel business, along with other short-term lodging on Ganguwa town, has been a
substantial part of the inland tourism. Of the short-term lodgings on Abaya, others are
categorized as Inns, and only two as Bed & Breakfast, including our project, Genet hotel
business. Hotels constitute the largest percentage of rental properties on the Ganguwa town in

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terms of units. However, the average Bed & hotel service is not typically interested in the hotel
climate. That and the comparison of rates, which are substantially higher in the hotel industry, do
not put such facilities in the category of competitor.

Competition and Buying Patterns

The hotel business offers a unique lodging environment, which caters to an ever-increasing
group of travelers. Bed & other hotel service create a climate of home, where guests become
temporary members of a larger family. The Bed & hotel room opens itself to guests, allowing
them to participate and share in the richness of a community, while still allowing whatever
degree of privacy is preferred. Meals can be shared with the inn keepers and other travelers
allowing new relationships to be created and old ones enriched. Or, meals can be taken in the
privacy of the guest's room.

A variety of settings available in the pension are situated to enable individuals or small groups to
locate the perfect setting for whatever mood or activity one is pursuing (reading, watching
television, games, etc.). In the pension, a guest is a guest in one's home, not a customer. It
becomes a place to return to: at the end of a day, or during the next vacation (like going home).

At the Genet hotel business, guests will have the right mix of membership and privacy. Being
dutiful without being intrusive is a delicate balance and one that owners have mastered in their
various walks of life.

3. Layout Structure
The following are the proposed layout required for the Hotel and Resort:

Hotel

A. Rooms & Suites

The hotel will be of stylish, comfortable, and well-furnished and air -conditioned rooms with
contemporary luxury and gracious service.

B. Banquet and Conference

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The Hotel will have a banquet hall with a capacity of 500 and 800 for parties,
banquet hall also be used for exhibitions/events. The banquet halls very essential for the
hotel and will be done in a western concept. There will be one conferencing hall for business
meeting, conference and gathering etc. The hall will be equipped with all the modern
conferencing aids.

C. Restaurant and Bar

The hotel will be having 2 separate houses of restaurant, a Lounge Bar and a coffee
shop, which will be offering a choice of continental and variety of food from Ethiopian
culture, with live piano music, and one open restaurant with the above amenities for
the outside visitors.

The bar will be well stocked with best of spirit and wine where guests can spend
their time with gossiping watching television.

D. Other Facilities in hotel

Travel Desk

The hotel will also have a Travel Desk, which will help visitors to gather
information and sketch tour for visiting the tourist place.

Pick up Facility

The hotel will also having a Pick up facility, the company will be buying vehicles to pick
the guests from the suitable place.

Business Center

The business center is equipped with the latest office automation equipment to provide
secretarial services and allied services like courier services, E-mail services, and
Telecommunication services and other support services.

Resort Complex

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Cottages

The Resort will be having good houses of cottages with a refreshing mix of style and
spacious elegance, our guest rooms and suites will be offering peace and tranquility
as well as the comforts of modern day living.

Kids Arena and Board Games

The Hotel Complex will be having a separate area for the kids; Kids Arena for children to
have fun and play all the time while visiting the Resort.

The Resort will be having an area for board games, which will provide additional options for the
guests to spend excellence time in the Resort.

Banquet and Conference

The Resort will be having a banquet hall with a capacities of 120 for parties,
banquet hall also be used for exhibitions/events. The banquet hall is very essential
for the Resort and will be done in a western concept. There will be one conferencing hall
for business meeting, conference and gathering etc. The hall will be equipped with all the
modern conferencing aids.

Hotel Bar

The hotel will be having a Music Lounge & Weekend Disco which will be
Equipped with the latest sound & a Light system, the disco is for those who are young at
heart. The zeal to dance & enjoy is a welcome thought. A disco night on every weekend
will be arranged.

4. CAPACITY PLANNING
Following are the Capacities of the hotel

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HOTEL No
Types of Rooms
Standard 10
Deluxe 8
Suite 4
Villas 6
Banquet Hall 1
Restaurant 2
Hotel Bar 1
Coffee Shop 1
Kids Arena 1
Administrative Office 1
Laundry 1
Staff Quarters 1

5. Strategy and Implementation Summary

5.1 Process / Steeps

Following are the necessary steps required to construct W/ro Genet Tesfaye’s hotel business.

 Feasibility Study- Completed

 Market and financial analysis and projections – Completed
 Completion of lease of Hotel - It is completed
 Financial Closures by Banks or Investors- Started
 Finalization of the Layout - Started
 Building renovation & Total decorations -Completed
 Purchase of all hotel equipments (Furniture & fixtures) – In progress
 Completion purchase of auxiliary & ancillary buildings, mechanical utilities,
electrical services and system.
 Approach and Internal Roads
 Employee Hiring Process

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 Marketing

We commit to creating the best on Abaya woreda Ganguwa town from the beginning. As a
furnished (turnkey) operation, we will be able to invest more time and money into the finer
things (the extra amenities that go above and beyond those associated with the other Inns on the
Abaya). In most resort areas, parking is a problem. Genet hotel business has off-street parking
that will accommodate all guests. These are the extras that people remember, and separate an
exceptional lodging from one that is merely okay.

With the right exposure, we believe that an un-tapped market of vacationers can be enticed to
Ganguwa town and the Genet hotel business. The World Res partner network allows real-time
reservations on today's most popular websites, including AOL, Yahoo!, and Lycos. In addition,
World Res has developed exclusive relationships with destination and special activity websites
and call centers. World Res provides a free connection to the SABRE travel agent system,
providing access to over 100,000 agents worldwide, as well as to users of Travelocity, one of the
most popular online travel sites.

All of this visibility is free, with the exception of a five to ten percent transaction fee for any
booking made directly via the service and online; much less expensive, yet more comprehensive
than traditional advertising. However, not all pensions are computer-friendly. Therefore, we will
be placing seasonal specific advertisements in regional newspapers and major city magazines.

5.2 Competitive Edge

We start with a critical competitive edge: there is no competitor we know of that can offer the
convenience and luxury one will find at the Coach House. We have traveled the country and stayed in
many pension. We know how to create the climate that others seek when shopping for Bed & Breakfast
lodging.

5.3 Sales Strategy

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Coach House will sell its rooms directly to repeat customers, as well as via traditional travel
agents and through the Phone & internet. All reservations will be handled by the owner, W/ro
Genet. Repeat customers will have the privilege of priority reservations during the high season.
As mentioned above, the new owners will also list Coach House on www.worldres.com, which
will make it available to millions of international tourists.

5.4 Sales Forecast

Our sales forecast is based on the historical industry trend of other Hotel and the following rates
and occupancy assumptions:

Table 2: Sale forecast

Amount in Daily sale Monthly sale Yearly Sale( Birr) Remark

number
Bed 18 300x15= 4,500 4,500 X 28 = 126,000 x12= In average 15 bad
126,000 1,512,000 daily & 28 day in
ave. per month
Meal Sale 7,000 7,000x28 =196,000 196,000x12=2,352,000 On Average

Sale form bar 5,000 5,000X28= 84,000 x 12=1,680,000 On Average

service 140,000

Super Market 2 10,000 120,000

Revenue from other 100,000 1,200,000

room rental
Total Sale Forecast 6,864,000

Note:

 The trend of sale forecast is increasing through the year by 10%

 The CGS for the first year is Br. 3,870,000 and this cost increase by 5% each year. The
detail is attached as annex.

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6. Management Summary

The Coach House will operate as an owner-occupied business. Salary for the first year of
operation is indicated on the Personnel table. This salary, though low, is reasonable considering
that major living expenses (mortgage, utilities, etc.) will be covered by the business.

General
Manager

Human
Resource

Operation Director Finance Director Business

Director

Maintenance &
Housekeeping
Information Sales mg’r Marketer

Personnel Plan

As mentioned above, the coach will reside on the property while performing necessary day-to-
day management tasks. The general manager of the business, W/ro Genet will assign individual
to coach the project since she will reside off of the property, her total planned compensation is
outlined as follows.

7. Total Project Cost

A. Start- Up Expenses

Start-Up Expenses Amount

Graphic Logo and Name Creation Br.22,000

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Permits + Lease Deposit 11,200

Contingency 10,000
Outdoor Sign 13,000
Building rent, renovation & total decorations 8 00,000
Pre Opening Expenses 54,800
Total Start-Up Expenses Br.911,000
Start-Up Assets
Artwork Br.8,000
Walk In Cooler 8,000
Commercial Dishwasher with Sink in Table 7,000
Reach in Stainless Steel Freezers (2) 16,000
Stainless Steel Cold Station 20,000
20 quart food processor/blender 900
Ice Maker with Storage Bin 14,000
Stainless Steel Hood with Exhaust 11,000
3 Door Reach In Beverage Cooler w/Glass Door 23,500
Sandwich Prep Reach Ins (2) 5,600
Kitchen Small wares 1,500
Six Burner Restaurant Range (2) 8,600
Chrome Shelving Systems (6) 4,500
Reach In Coolers (4) 7,200
Stainless Steel Work Tables (3) 33,300
Hutch for Stainless Steel Table (2) 16,800
Liquid Fire Protection System 4,000
Stainless Steel 3 bowl sink 4,500
Liquid Fire Protection System 4,000
Stainless Steel 3 bowl sink 3,500
20 wood round / oval tables 40,000
86 bleached wood Café Chairs 20,000
20 track lighting 40,000
Table cloths , napkins 10,000
Art, Décor 22,000
Fireproof Safe 5,000
Cash register + POS System 14,000
Ofc PC 18,200
Total Start-Up Assets 375,500
Total Required Start-Up Costs Br. 1,286,500.00

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B. Labor Cost

Personnel Plan
Required Salary/Month Salary/Year(Birr)
2016 2017 2018
General Manager 1 Owner 0 0 0
Asst. Manager 1 10,000 120,000 126,000.00 129,780.00
Line Cooks 2 2 x 5000= 10,000 120,000 126,000.00 129,780.00
Prep Cooks 2 2 x 5000= 10,000 120,000 126,000.00 129,780.00
Servers / Cashiers 2 2 x 3000= 6,000 72,000 74,160.00 76,384.80
Dishwashers 2 2 x 1000= 2000 24,000 24,720.00 25,461.60
Accountant 1 4,000 48,000 49,440.00 50,923.20
Sales Agent 1 4,000 48,000 49,440.00 50,923.20
Catering Employees 4 4 x 2000= 8,000 96,000 98,880.00 101,846.40
Coach House 2 2 x1,000=2,000 24,000 24,720.00 25,461.60
Cleaners 2 2 x 2000=4,000 48,000 49,440.00 50,923.20
Guardian 2 2 x 2500= 5,000 60,000 61,800.00 63,654.00
Waiters 10 10 240,000 247,200.00 254,616.00
X2000=20,000
Total 42 1,057,800.0 1,089,534.0
1,020,000 0 0

Note: The trend of labor cost is increasing through the year by 5%.

C. Cost of Furniture and Equipment

Description Unit No. of unit Cost/unit(Birr) Total cost

Equipment
1. Television Number 24 20,000.00 (Ave) 480,000.00

2. Phone Number 4 4,000.00 16,000.00

Sub-total 496,000.00
Furniture
1. Bed Number 22 20,000.00 (Ave) 440,000.00

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2. Dressing table Number 20 10,000.00 200,000.00

Sub-total 640,000.00
Total 1,136,000.00

D. Service Cost

Description Total cost/Year (Birr) (Lump Sum)

Maintenance cost for furniture & equipment 32,500.00
Utility expenses 50,000.00
Office supplies 45,000.00
Total 127,500.00

Summary of Investment Cost

Description Amount
Start-Up Costs 1,286,500.00
Furniture & Equipment 1,136,000.00
Labor cost 1,020,000.00
Service cost 127,500.00
Working Capital 2,000,000.00
Sub-total 5,570,000.00
Contingency (3%) 167,100.00
Total 5,737,100.00

8. Financial Analysis

8.1 Break-even Analysis

We estimate average monthly fixed costs to be approximately Birr 250,000 for expenses plus
interest payments. Peak and off-season will have significant impact on the monthly earnings. For
the first year, on-season revenues will offset off-season losses. As the pension builds its market
position among the local patrons, we anticipate that off-season revenues will be enough to break
even during that season. Further, a rate is increasing through the year.

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 Business plan for Genet Hotel

8.2 Projected Profit and Loss

As mentioned above, earnings are subject to seasonal fluctuations. The new ownership will,
however, strengthen pension market position among the local community who will patronize the
establishment during the low season, and thus offset the negative impact of the season.

(The forecasted financial statement is attached as annex)

8.3 Projected Cash Flow

The table attached as annex outlines the projected cash flow and shows that the business will
have enough cash reserves to cover the off-season's low sales. These projections are realistic in
terms of the historical market of Abaya woreda, Ganguwa town and operations, based on current
pricing research and the addition of a second rental unit.

(The forecasted financial statement is attached as annex)

Annex 1, Projected Operating Expenses Genet Hotel

ANNUAL EXPENSE DETAIL
Year 2016 Year 2017 Year 2018
Operating expenses :
Sales and Marketing :
Salaries Br 840,000 Br. 882,000 Br. 926,100
Benefits 97,500 104,325 109,541
Telephone 1,200 1,236 1,298
Supplies 2,400 2,472 2,596
Travel 6,000 6,180 6,489
Print Advertising 10,800 11,448 12,364
Internet Advertising 24,000 25,440 27,475
Public Relations 9,600 10,176 10,990
Direct Advertising 20,400 21,624 23,354
Professional services 1,800 1,854 1,947
Miscellaneous expenses 3,000 3,090 3,245
Public Relationships 25,000 27,500 30,250
Total Sales and Marketing 1,041,700 1,097,345 1,155,649
General and Administrative:
Salaries Br. 180,000 Br.189,000 Br. 198,450
Benefits 130,000 139,100 146,055
Rent , Renovation & Decoration 700,000 800,000 900,000
Insurance 6,000 6,000 6,000
Utilities 12,000 13,200 14,520
Telephone 1,200 1,320 1,452
Supplies 900 990 1,089
Travel 2,400 2,640 2,904
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 Business plan for Genet Hotel

Professional services 2,400 2,472 2,596

Depreciation 12,000 13,200 14,520
Miscellaneous expenses 2,400 2,472 2,596
Total General & Administrative 1,049,300 1,170,394 1,290,182
Total Operating Expenses : Br.2,091,000 Br. 2,267,739 Br. 2,445,831

Annex 2, Projected Financial Statements Genet Hotel

Statement of Projected Result of Operations (Profit /Loss)
For each of the three years ending
Year 2016 Year 2017 Year 2018
Revenue :
Bed Rooms Br. 1,512,000 Br.1,663,200 Br.1,829,520
Super Market Rooms 120,000 132,000 145,000
Other Facilities 1,200,000 1,320,000 1,452,000
Meal sales 2,352,000 2,587,200 2,845,920
Bar Sales 1,680,000 1,848,000 2,032,800
Total Sales 6,864,000 7,550,400 8,305,440
Cost of Sales 3,870,000 4,032,800 4,235,975
Gross margin 2,976,000 3,517,600 4,069,465
As (%) of Gross sales 75% 76% 77%
Operating expenses :
Sales & Marketing Br. 1,041,700 Br. 1,097,345 Br. 1,155,649
Administrative exp. 1,049,300 1,170,394 1,290,182
Total Operating expenses Br.2,091,000 Br. 2,267,739 Br. 2,445,831
Income from operations 885,000 1,249,861 1,623,634
Earnings before interest Br. 885,000 Br. 1,249,861 Br. 1,623,634
and taxes (EBIT)
Interest expense (income) :
Interest expense (@ 13.5%) Br.270,000 Br.191,127 Br.101,606
Net income before taxes 615,000 1,058,734 1,522,028
Taxes (exoneration)
Taxes (@ 35%) 197,250 352,556.90 514,709.80
Net Income Br 417,750 Br. 706,177.10 Br. 1,007,318.20

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Genet Hotel
Annex 3, Projected Balance Sheet
For each of the three years ending
Year 1 Year 2 Year 3
Assets
Current Assets
Cash Br. 63,000 Br. 66,150 Br. 71,111
Accounts Receivable 25,000 26,250 28,219
Inventory 14,000 14,700 15,803
Other Current Assets 129,500 135,975 146,173
Total Current Assets 231,500 243,075 261,306
Long Term Assets
Long Term Assets 144,500 151,725 163,104
Accumulated Depreciation 0 0 0
Total Long Term Assets 268,500 281,925 303,069
Total Assets 500,000 525,000 564,375
Liabilities and Capital
Current Liabilities
Accounts Payable 29,000 30,450 32,734
Current Borrowing 1,500 1,575 1,693
Other Current Liabilities 28,500 29,925 32,169
Subtotal Current Liabilities 59,000 66,596 0
Long Term Liabilities 189,000 198,450 213,334
Total Liabilities 277,000 290,850 312,664
Paid In / Invested Capital 223,000 234,150 251,711

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Retained Earnings
Total Capital 223,000 234,150 251,711
Total Liabilities and Capital 500,000 525,000 564,375
Net Worth Br. 223,000 Br. 234,150 Br. 251,711

Genet Hotel
Annex 4,Pro Forma Cash Flow
For each of the three years ending
Year 1 Year 2 Year 3
Cash Received
Cash from Operations Br. 148,101 Br. 30,995 Br.11,402
Cash Sales 1,028,422 1,161,443 1,235,835
Cash from Receivables 0 0 0
Subtotal Cash from Operations 1,176,523 1,192,438 1,247,237
Additional Cash Received 0 0 0
Expenditure
Expenditures from Operations Br. 765,113 Br. 414,176 Br.426,602
Cash Spent 710,176 731,481 753,426
Bill paid
Subtotal Spent on Operations Br. 1,475,289 Br. 1,145,658 Br. 1,180,028
Additional Cash Spent
Sales Tax
Loan Payment (Principal) Br. 666,667 Br. 666,667 Br. 666,667
Subtotal Additional Cash Spent 33,240 35,378 37,654
Subtotal Expenditures 1,508,529 1,181,036 1,217,681
Net Cash Flow 30,994 11,402 29,556
Cash Balance Br. 30,994 Br. 42,397 Br. 71,953

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Genet Hotel
Annex 4,Pro of Ratio Analysis
For each of the three years ending
Ratio Analysis Year 1 Year 2 Year 3 Industry Profile
Financial Ratios
Quick Ratio 1.49 1.49 1.49 1.06
Current Ratio 3.92 3.92 3.92 1.46
Current Liabilities to Net 0.26 0.26 0.26 0.40
Worth
Current Liabilities to 4.21 4.21 4.21 5.85
Inventory
Total Liabilities to Net Worth 1.24 1.24 1.24 1.24
Fixed Assets to Net Worth 1.20 1.20 1.20 1.11
Collection Period
Inventory Turnover 28.7 28.2 27.0 29.44
Assets to Sales 48.6% 45.2% 45.7% 49.1%
Working Capital to Sales 16.8% 15.6% 15.8% 14.0%
Accounts Payable to Sales 2.8% 2.6% 2.6% 2.8%
Return on Sales 0.1% 5.0% 7.5% 1.0%
Return on Assets 0.2% 11.1% 16.4% 2.1%
Return on Equity 0.6% 25.0% 36.7% 4.7%
Interest Coverage 0.8 7.6 15.5 1.66
Income Statement
Gross Sales 100.0% 100.0% 100.0% 100.0%
Gross Profit 60.9% 64.3% 65.5% 56.0%
Operating Income 0.1% 5.0% 7.5% 2.1%
Net Profit After Tax

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Balance Sheet
Cash 12.6% 12.6% 12.6% 12.6%
Accounts Receivable 5.0% 5.0% 5.0% 5.0%
Inventory 2.8% 2.8% 2.8% 3.0%
Total Current Assets 46.3% 46.3% 46.3% 49.5%
Total Fixed Assets 28.9% 28.9% 28.9% 25.7%
Other Non-Current Assets 24.8% 24.8% 24.8% 24.8%
Total Assets 100.0% 100.0% 100.0% 100.0%
Accounts Payable 5.8% 5.8% 5.8% 5.8%
Total Current Liabilities 0.0% 0.0% 0.0% 17.6%
Total Long Term Liabilities 37.8% 37.8% 37.8% 37.8%
Net Worth 44.6% 44.6% 44.6% 44.6%

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