Golden Valley Resort Lodge

Executive Summary
The Golden Valley Resort Lodge is located three blocks from Hunza Lake, mid-mountain
at Hunza Valley Resort and on the free shuttle system. Located in the
recently expanded area, Silver Golden Lodge will offer customers 12 two-bedroom units
with underground parking, fully-equipped kitchens, laundry facilities and stone
fireplaces. Golden Lodge also will offer a common-area outdoor hot tub as well as a on-
site store and on-site front desk service.

Each year, over 150,000 tourist and nature lovers visit the Golden Valley Resort area.
On average, visitors spend over 10 million, annually, for lodging, food, and recreational
activities at Golden Valley Resort.  

Zohaib-Ur-Rahman and Irfan Ullah, co-owners of the Golden Lodge, will operate the
lodge as a ski resort during the months of November to April.  During the Spring and
Summer months (May to August), the Golden Lodge will operate as a summer resort.
The lodge will be closed during the months of September and October.
When is the best time to visit Hunza?

Hunza Golden Lodge is open from March to November.

Key times to visit Hunza are:

 April & May: Apricot Blossom in bloom

 October & November: Hunza Autumn colors

 June, July & August: The warmest months and best for trekking / camping

Average Daytime Temperatures

Summer: (May-August): 18°C to 35°C

Autumn: (October-November): 9°C to 22°C
Winter (December–February): -10°C to 10°C
Spring (March–April): 8°C to 16°C

How do I get to Hunza Golden Lodge?

 Daily scenic PIA flights to Gilgit Airport (55 minutes) followed by a 2 hour drive to
Karimabad along the Karakoram Highway.

 Road from Islamabad via the scenic Karakoram Highway. The drive takes 20 hours plus
from Islamabad. We recommend that this amazing journey is completed in two stages.

Is Hunza Golden Lodge a heritage hotel?

No – Hunza Golden Lodge is a small hotel whose interiors and architecture reflects the local
heritage, culture and architectural styles. The hotel is within close proximity to the historical
Baltit Fort and Altit Fort. Our extensive range of activities and excursions are all aimed at
immersing you in the culture and history of Hunza.
Objectives
The objectives of the Golden Lodge for the first three years of operation include:

 Exceeding customer's expectations for luxury apres ski accommodations.

 Maintaining an 90% occupancy rate during the peak periods.
 Assembling an experienced and effective staff.

Mission
The mission of Golden Lodge is to become the number one lodge of choice with visitors to
Hunza Valley Resort.

Rooms Of Golden Lodge

Product / Services
Transport Facility
We also offer the transport facility to our beloved customers and guests. And also provide them
the Jeeps and Busses for travels and enjoys the beautiful view and weather of Hunza.
 We can arrange your transport & airport transfer for you during your stay. We use local drivers
who have local knowledge for our day trips or longer excursions. Transport is usually in jeeps or
4WDs

Camp Facility
The Golden Lodge will also offers the camping facility to their guests, and provide them every
things related to camping.

 The Golden Lodge also give laundry facilities and stone fireplaces. Golden Lodge will offer a
common-area outdoor hot tub as well as the following services on-site
  Food store
 Ski rental/clothing shop
 Front desk service

We provide a range of activities that includes guided tours to all the historical sites in Hunza and
the surrounding areas of Gilgit-Baltistan.

What activities are there to do at Hunza Golden Lodge?

At Hunza Golden lodge our number one objective is to provide you with the experience of a life
time! And that means providing you not only with incredible accommodation and service but
also with a range of activities and experiences that encapsulate the best of the history, culture and
natural beauty of the area you are visiting.

 We have spent many long hours planning and devising some of the best excursions and
activities there is to offer ensuring that there is something that will interest each and every one of
our guests.

Our rates include:

 Welcome drinks
 Buffet breakfast
 Daily provision of fruit basket
 Wi-Fi access
 Spouse stays on a complimentary basis, inclusive of buffet breakfast

They do not include snacks, dinner, all beverages, activities, laundry, telephone calls, transport
or airport transfers.

 Can children stay for free at Hunza Golden Lodge along with parents?

 Children under the age of two, sharing a room with their parents are accommodated free.
 Children aged between two to twelve, sharing a room with their parents, are charged at
50% of the adult rate.
 If any child under 12 who requires his or her own room, will be charged at 75% of the
adult rate.

.Is it safe as a foreigner or should I dress up as a local?

Yes it is safe to walk around as a foreigner. Gilgit-Baltistan is one of Pakistan’s safest and
friendliest areas. The local communities are familiar with the concept of tourism and foreign
tourists, particularly in Gilgit and Hunza.  Women should always carry a head scarf in case it is
needed when visiting a mosque or other religious monuments.
Market Analysis Summary
Golden hotel development and operation in the Golden Valley Resort area has been very
profitable and successful due to the economic upturn experienced in the early and mid 90's.
Time-share / resort hotel development and investments into ski resorts nationwide are currently
going strong. In the past two years, sales of time-shares in the Golden Valley Resort area have
increased by over 35 percent. There are forty condominiums, lodges, inns and hotels within two
miles of the resort. Each year, room occupancy is close to 100% during the peak skiing season.
New construction is planned in the spring.

Product
We provide good services to our beloved guest and customers. We started Golden Lodge for
provide for our guest something new. We provide them beautiful environment, feel like they
were in their own homes. We also provide a luxury rooms, comfortable beds, fully heated facility
in winter and complete air conditioned in summer. We also provide hot tub facility. There is lot
of competitors’ in the market so we provide all the facilities to compete them.

Prices
We set our prices were also very low and cheap as compared to our competitors.

Single bedroom 5000rs for 24 hours. Double bedroom 7000rs. We also provide mattresses free
for children’s. We also offer discount for some special occasion like eid and new year. We also
offer a discount for complete family who want more then one room. We also offer discount to
our guest in winter season.

Promotion
We promote and tell to our customers or guests about our hotel and new innovation in our
business through advertisement, bill boards, we also advertise our business on social media and
internet.

Place
We select one of the best place for our business. In Hunza where the Golden Lodge is one of the
best and beautiful place.
Packaging
 Market Segmentation
Our customers can be broadly divided into two groups:

 Skiers: The Golden Valley Resort area is quickly becoming one of the best ski
resorts in the Hunza. The resort is located from Airport and is easily accessible.

 Summer Visitors: During the summer months, the Golden Valley Resort
area is a beautiful wilderness retreat with over 50 hiking trails and other outdoor
recreational activities.

Strategy and Implementation Summary

Golden Lodge will aggressively market to both winter and summer visitors of the Hunza Valley
Resort area.  The Hunza Valley Resort has activities occuring year round.  During the winter
there is skiing but in the summer months, the resort has hot trips, white water adventures, day
hikes into Hunza Valley, and other recreational activities that take advantage of valley's
spectacular beauty.
There are only thirteen lodges and inns in the Hunza Valley Resort.  These facilities represent
only 580 room units of the total of 4,000 room units in the resort area.

Our customers are looking for a different lodging experience that cannot be found in any of the
area's apartment complexes or hotels.  We will offer our customers a comfortable, environment
that will assure return visits to the Golden Lodge.

The lodge will cost a little more but we will offer our customers all the services they need to
make their stay memorable. We will offer a food shop that will be able to take special orders
daily.  There will be a ski rental shop where customers can outfit themselves and purchase ski
passes.  Each evening, guests can gather in the lodge's main room where there is a large
fireplace, drinks and light music.

Competitive Edge
The competitive edge of Golden Lodge is the service, first and foremost. Zohaib-Ur -Rahman
and Irhan Ullah, co-owners of the Golden Lodge, have over twenty years experience in
managing ski lodging facilities.

Zohaib is the manager-owner of the Hunza Inn.  He has owned the inn for ten years.

Irfan recently was the manager of the Village Resort Hotel. He held that position for the last five
years.  Before this position, Irfan was the manager of The Deans, apartments in Hunza Lake
Village.

Another significant advantage for the Golden Lodge is its location.  Being located in the recently
opened Hill area, Golden Lodge is uniquely positioned to be centrally located to both Lakes
Village (.5 miles) and the Hunza Valley Resort ski area (.5 miles).

Sales Strategy
The Golden Lodge's sales strategy is to harness the existing Valley Resort booking system that
has been critical to the success of all of the area's lodges and inns.   Room rates for the lodge will
range from $150  - $250 per night in peak season.  In the off season prices will range from $100
to $175 per night.

Sales Forecast
The following is the sales forecast for three years.
 Marketing Strategy
The Hunza Valley Resort area has its own website and advertising/promotion program
that promotes the area's lodging. Currently, 70% of the area's visitors use the website to identify
lodging and service options.
The Golden Lodge is positioned as a new upscale facility that is focused on the high-income
visitors to Hunza Valley Resort.  The area's lodges and inns receive approximately 80% of their
guests from the Hunza Valley Resort booking system. Since the total number of room units are
few with the area's lodges and inns, these lodging units fill up quickly.
In addition, the Golden Lodge will be highlighted in a promotional piece for Hunza Valley
Resort in the December issue of Ski Magazine.

Management Summary
Irfan Ullah will be the manager of the daily operations of the Golden Lodge.

Personnel Plan
The personnel needed for the Golden Lodge are the following:
 Manager.
 Assistant manager.
 Lodge staff (7).
 Food store staff (3).
 Ski rental/clothing store (3).
 Maintenance staff (3).
 Cleaning staff (4).

Personnel Plan
 Year 1 Year 2 Year 3
Manager $36,000 $39,000 $42,000
Assistant Manager $42,000 $45,000 $48,000
Lodge Staff $110,000 $120,000 $126,000
Food Store Staff $39,000 $43,000 $46,000
Ski Rental/Clothing Store Staff $35,000 $39,000 $42,000
Maintenance Staff $48,000 $52,000 $55,000
Cleaning Staff $72,000 $76,000 $79,000

Total People 9 22 22
Total Payroll $382,000 $414,000 $438,000

Financial Plan
The following is the financial plan for the Silver Bear Lodge.

Break-even Analysis
The monthly break-even point is approximately $52,900.
Break-even Analysis
Monthly Revenue Break-even $52,905
Assumptions:
Average Percent Variable Cost 11%
Estimated Monthly Fixed Cost $46,965

Projected Profit and Loss

The following is the projected profit and loss for three years.

PRO FORMA PROFIT AND LOSS

YEAR 1 YEAR 2 YEAR 3

Sales $741,000 $915,000 $1,022,000

Direct Cost of Sales $83,200 $101,000 $128,000

Other Production Expenses $0 $0 $0

TOTAL COST OF SALES $83,200 $101,000 $128,000

Gross Margin $657,800 $814,000 $894,000

Gross Margin % 88.77% 88.96% 87.48%

Payroll $382,000 $414,000 $438,000

Sales and Marketing and Other Expenses $60000 $80,000 $100,000

Depreciation $14,280 $14,280 $14,280

Leased Equipment $0 $0 $0

Utilities $26,000 $26,000 $26,000

Insurance $24,000 $24,000 $24,000

$0 $0 $0
Lease
Payroll Taxes $57,300 $62,100 $65,700

Other $0 $0 $0

Total Operating Expenses $563,580 $620,380 $667,980

Profit Before Interest and Taxes $94,220 $193,620 $226,020

EBITDA $108,500 $207,900 $240,300

$33,375 $30,500 $27,500

Interest Expense
$18,254 $48,936 $59,556
Taxes Incurred
$42,592 $114,184 $138,964
Net Profit
5.75% 12.48% 13.60%

Projected Balance Sheet

The following is the projected balance sheet for three years.

PRO FORMA BALANCE SHEET

YEAR 1 YEAR 2 YEAR 3

Assets

Current Assets

Cash $31,437 $118,555 $165,58

4

Other Current Assets $14,000 $32,000 $53,000

TOTAL CURRENT ASSETS $45,437 $150,555 $218,584

Long-term Assets
 Long-term Assets $350,000 $370,000 $430,000

Accumulated Depreciation $14,280 $28,560 $42,840

Total Long-term Assets $335,720 $341,440 $387,160

Total Assets $381,157 $491,995 $605,744

Liabilities and Capital Year 1 Year 2 Year 3

Current Liabilities

Accounts Payable $3,965 $30,619 $35,405

SUBTOTAL CURRENT

LIABILITIES $3,965 $30,619 $35,405

LONG-TERM LIABILITIES $320,000 $290,000 $260,000

TOTAL LIABILITIES $323,965 $320,619 $295,405

PAID-IN CAPITAL $200,000 $200,000 $200,000

Retained Earnings ($185,400) ($142,809) ($28,625)

EARNINGS $42,592 $114,184 $138,964

TOTAL CAPITAL $57,192 $171,376 $310,340

TOTAL LIABILITIES

AND CAPITAL $381,157 $491,995 $605,744

Net Worth $57,192 $171,376 $310,340

PROJECTED CASH FLOW

 THE FOLLOWING IS THE PROJECTED CASH FLOW FOR THREE YEARS.

PRO FORMA CASH FLOW

YEAR 1 YEAR 2 YEAR 3

Cash Received

Cash from Operations

Cash Sales $741,000 $915,000 $1,022,000

SUBTOTAL CASH

FROM OPERATIONS $741,000 $915,000 $1,022,000

Expenditures Year 1 Year 2 Year 3

Expenditures from Operations

Cash Spending $382,000 $414,000 $438,000

Bill Payments $298,163 $345,882 $425,971

SUBTOTAL SPENT ON OPERATIONS $680,163 $759,882 $863,971

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out $0 $0 $0

Principal Repayment of Current Borrowing $0 $0 $0

Other Liabilities Principal Repayment $0 $0 $0

Long-term Liabilities Principal Repayment $30,000 $30,000 $30,000

Purchase Other Current Assets $14,000 $18,000 $21,000

Purchase Long-term Assets $0 $20,000 $60,000

Dividends $0 $0 $0

SUBTOTAL CASH SPENT $724,163 $827,882 $974,971

Net Cash Flow $16,837 $87,118 $47,029

Cash Balance $31,437 $118,555 $165,584

RATIO ANALYSIS

Year1 Year2 Year3 IndustryProfile

Sales Growth 0.00% 23.48% 11.69% 5.90%

Percent of Total Assets

Other Current

Assets 3.67% 6.50% 8.75% 26.00%

Total Current

Assets 11.92% 30.60% 36.09% 32.00%

Long-term

Assets 88.08% 69.40% 63.91% 68.00%

TOTAL ASSETS 100.00% 100.00% 100.00% 100.00%

Current Liabilities 1.04% 6.22% 5.84% 19.40%

Long-term

Liabilities 83.95% 58.94% 42.92% 34.60%

Total Liabilities 85.00% 65.17% 48.77% 54.00%

NET WORTH 15.00% 34.83% 51.23% 46.00%

Percent of Sales

Sales 100.00% 100.00% 100.00% 100.00%

Gross Margin 88.77% 88.96% 87.48% 0.00%

Selling, General

& Administrative

Expenses 83.02% 76.48% 73.88% 75.10%

Advertising

Expenses 8.10% 8.74% 9.78% 1.90%

Profit Before

Interest & Taxes 12.72% 21.16% 22.12% 2.50%

Current 11.46 4.92 6.17 1.45

Quick 11.46 4.92 6.17 1.05

Total Debt

Total Assets 85.00% 65.17% 48.77% 54.00%

Pre-tax Return

Net Worth 106.39% 95.18% 63.97% 1.70%

Pre-tax Return

on Assets 15.96% 33.15% 32.77% 3.70%

Additional Ratios Year 1 Year 2 Year 3

Net Profit Margin 5.75% 12.48% 13.60%

Return on Equity 74.47% 66.63% 44.78%

Accounts Payable Turnover 76.19 12.17 12.17

Payment Days 27 17 28

Total Asset Turnover 1.94 1.86 1.69

Debt to Net Worth 5.66 1.87 0.95

Current Liab. to Liab. 0.01 0.10 0.12

Net Working Capital $41,472 $119,936 $183,180

Interest Coverage 2.82 6.35 8.22

Additional Ratios

Assets to Sales 0.51 0.54 0.59

Current Debt/Total Assets 1% 6% 6%

Acid Test 11.46 4.92 6.17

Sales/Net Worth 12.96 5.34 3.29