Business Plan FUSION HOTEL
Business Plan FUSION HOTEL
Business Plan FUSION HOTEL
2022- 2027
Contact
The Directors
P.O. Box 21040
Kampala Wavah
Road, Munyonyo
Tel 07529333 905 or 0782199639
Table of Contents
1. Executive Summary
Introduction
Brief on the applicant
Legal status
Directors/Promoters
Past Financial performance
2. Market Analysis
The product or services
Industry Analysis
Demand Analysis
Prices
Competition Analysis
Marketing, Sales and Distribution
3. Technical Aspects
Location
Existing infrastructure and Assets
Projected volume of production
Production process
Raw materials and labour availability
4. Implementation
Implementation time table
6. Financial Aspects
Total project investment costs
Source of financing
Working capital
Projected Profit and Loss
Projected Cash Flow
7. Risk Analysis
Market and Economic
Political
Financial
Other risks if any
8. SWOT Analysis
1. EXECUTIVE SUMMARY
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1.1 Introduction
As a business and a 4-Star Hotel, attaining a permanent place in the local and
market place is our primary goal. We wish to acquire national and international
repute as an exclusive destination within the next 5 years.We see it as our main mission to
provide high quality accommodation, associated amenities and services at justified prices to our
targeted clients.
Our spa will offer extraordinary wide range of sauna, steam baths and medical therapies,
executed by high end professionals.All our services will be offered in a unique fashion, but
mostimportantly, thebasic business objective will be reflected in everything that we do, which
is, to contribute to the enrichment of the quality of lives of theclients that visit Fusion Hotel and
Spa Limited (FHSL).
Due to the development, hotel management and experience of the Directors, the hotel will be
able to create a high satisfaction level for our clientsand visitors, businesstravellers and the local
economy. Our hotel rooms and facilities including our extraordinary Spa&Health Club will
meet the highest standards of the industry and will enable us to offer a high quality product mix
in a prime location of Kampala City.
Given the wide market and the fact that there is high aggregate demand for quality hotel
services, FHSL will be established.The purpose of this plan is to provide strategic direction to
the promoters, financial partners and other stakeholders towards an efficient and effective
financing, implementation and management of the hotel. It is designed to provide guidance to
the company over a five (5) year period 2022 - 2027.
1.4 Directors/Promoters
The shareholders of the company are all Ugandan businesspersons of good repute. These are:
Ssemwogerere Robert owning 30% shares, Nampijja Theresa 20%, Kato Joseph 10%, Mukiibi
Lawrence 10%, Luyima Michael 10%, Mutyaba Adrian 10% and Ssemakula Mathew 10%.
2. MARKET ANALYSIS
According to Uganda Hospitality Institute, Uganda has over 3,000 hotel establishments with
over 20,000and30,000roomsandbedsrespectively.Thenationalaverageroomrateisslightly over
UGX 30,000 ($12) and the annual revenue contribution is over UGX 40 billion ($16M). The
national average room occupancy is approximately 28% with central regional (Kampala, Jinja
and Entebbe) at approximately 50%.The average room and bed occupancy range between 30 -
40%.
The sector employs over 16,000 persons both men and women.The hotel ownership structure is
approximately 90% owned by the private sector as opposed to 10% public aided. Out of these,
68% is owned by domestic private players. The major hotels are Serena, Sheraton, Hotel
Africana, while others are owned by a few individuals and are managed through hotel chains
including the Ruperelia Group, Imperial Group, Marasa Holdings and Geo-Lodges among
others.
Recreation: FHSL will offer several recreational facilities on the grounds. Facilities available
will include pool and sauna/whirlpool and access to activities in the surrounding area and
other amenities as can be expected of the location. Amenities available within the immediate
area include: walking, hiking, bicycling, parasailing, boating and other water sports, tours of
the city, and many more.
Conference facilities: The hotel will have 5 conference areas/rooms which can be used
throughout the year for meetings, seminars, parties, and corporate gatherings. Seating in our
largest area will accommodate up to 600 persons seated at tables, 1,000 in chairs.
Equipment such as overhead projectors, telephone, fax, copiers, and services such
as securitywill be provided.
In conclusion, the hotel sub-sector labor market in Uganda is generally unique and its analysis
and improvement must utilize a multi sector – multilayer approach. From the labor market in
the local township through to national and cross boarder levels. Any delay in the improvement
of Uganda’s hotel sector labor market will hamper the overall sector yield and directly affects
Uganda’s image. Losses of all kind are also being registered at enterprise level because of
human resource problems.
Others are economic and demographic analysis, population and retail sales, employees’
characteristics, major businesses and industry, highway traffic and airport arrivals, service
availability. Number of rooms, food and beverage facilities, meeting facilities, recreational
and retail amenities, physical condition andfunctionality to mention but less.
We will have to embrace competition in the hotel industry which is healthy for market. In a
competitive marketplace, up-to-date information can make a difference between keeping pace,
getting ahead, or being left behind. We shall also use a smart intelligence operation as an early-
warning system for disruptive changes in the competitive landscape, or a rival’s new product or
pricing strategy or the entrance of an unexpected player into the market.
With a first priority, we will sell the biggest share of our services in the central region with
clients mostly from the districts of Kampala, Mukono, Luwero, Wakiso and Masaka and a
lesser exstent countrywide. In this way, marketing costs can be efficiently leveraged and well
managed. After securing the high potential national market, the second stage will be to explore
regional markets from Kenya, Rwanda, South Sudan and DRC.
3. TECHNICAL ASPECTS
3.1 Location
The Hotel will be located at Munyonyo in Kampala, Uganda
The table below shows the implementation timetable of the investments and other activities
especially procurement of key equipments, HR recruitment and launch of operations among
others.
2. Hotel Equipments
2. Vehicles
4. Flexography Machines
8. Machines Installation
Board of Directors
General Manager
Managers will have wide range of duties than other members of staff. The Managing Director
will deal with the finance and staffing issues surrounding the hotel, while General Managers
will have more flexible list of duties, which could include working in any area of the hotel.
Executive Housekeeper will be responsible for the smooth running of the guest rooms. The
Front Office Manager will be responsible for guest reservations while the Restaurant Manager
would be in charge of the foods and drinks provided by the hotel. The Convention Manager
will be employed to coordinate all activities relating to meetings, these will include meeting
with the guests to ensure that the required schedule is correctly planned.
Managers will have a variety of assistants, whose job descriptions will depend on the hotel's
expansion overtime. It shall be the role of the Assistant Managers to employ and arrange the
training of new staff, supervise staff and organize the running of their departments like
ordering of supplies. Managers and Assistant Managers could have a personal assistant and/or
secretary to do secretarial duties.
Administration Staff
Secretaries/ Personal Assistants 12 14,400,000
Cashiers 6 5,400,000
Doormen 4 3,200,000
Waiters/Waitresses 8 4,800,000
Housekeepers 46 13,800,000
Front Desk Clerks 7 4,900,000
Maintenance 48 21,600,000
Others
Porters/Cleaners 24 12,000,000
Total
6. FINANCIAL ASPECTS
8. SWOT ANALYSIS
For the hotel business to prosper a SWOT analysis will be able to position the business to
maximize its strength, leverage on the opportunities that will be available, mitigate the
risks and be well equipped to deal with the threats.
STRENGTH:
Vast experience of Directors who understand how to grow the business
Creative and innovative management crew
A new brand entering the hospitality market
Good location with adequate space available for expansion
Present lowered costs for construction
Positive focus on job skills training/internships/job creation endeavors
Increased unemployment figures will provide optimal opportunity for full staff
WEAKNESS:
Lack of well-developed marketing network
Strong competition from well-established hotels
Finding qualified personnel can be a tedious task
Need for increased staff and marketing skills
Increased risk management issues
OPPORTUNITIES:
Cheap and locally available labor force
Offer excellent value for money
Established Board of Directors with community members
Job creation and skills training brings hope and economic uplift to community
Specific catering for conference needs, complimentary breakfasts and room
service available
THREATS:
Economic downturn due to COVID 19 pandemic
Unfavorable government policies and taxation
Strong competition from well established hotels in the area
9. SOCIO-ECONOMIC ASPECTS
Uganda’s hospitality sector has been steadily growing over the last two decades especially
the Small and Medium scale Enterprises (SMEs). SMEs like FHSL present the greatest
opportunity to generate employment, increase productivity, generate taxes for Government
coffers and stimulate economic growth in the country. The favorable macro-economic
environment has enabled various economic activities to flourish and improved people’s
livelihood country wide, although the COVID 19 disruptions has heavily and negatively
impacted on the sector since 2020.
Government is committed to full opening of the economy starting in January 2022 and
provision of favorable environment to allow the private sector to provide employment
opportunities to Ugandans. The private sector likewise enjoys a healthy dialogue with
Government over policy through umbrella bodies/lobby groups such as Private Sector
Foundation Uganda (PSFU), Uganda Manufacturers Association (UMA), the Uganda
National Chamber of Commerce and Industry (UNCCI), Uganda Tourism Board as well as
Uganda Hotel Owners Association.
9.1 Employment
FHSL will provide direct employment to over 200 workers. Indirectly, the hotel will
contribute incomes to companies supplying raw materials and foodstuffs. Overall, we
anticipate providing direct and indirect employment to thousands of people going forward.
By-Products
By volume the largest proportion of the operational waste is organic by-products from the
hotel. Other waste water will be disposed-off in a suitable manner.
Lastly and most importantly, the plan is designed to guide the company in its business
establishment processes and seeking for investment financing from prospective financial
institutions. Success will however, entirely depend on the consistency, commitment and
objectivity in implementation to the letter by the BOD, Management and all stakeholders.
A prominent businessperson once said: “My job gets difficult in two situations: when the
business goes very badly and when the business does very well. FHSL is positioning itself to
contend with either of the two situations whichever may arise”.