Australian Financial Information Interpretation
Financial Planning Hotel
Project 1
STUDENT NAME: MALI, PATRICIA NICOLE A.
BATCH: 3-YA-1
TEACHER: ARVEEH AVILES
eVersity
Case Study: The Azure Retreat - A Boutique Hotel Venture in Brisbane
Background:
Nestled in the vibrant heart of Brisbane, "The Azure Retreat" is the brainchild of entrepreneurs Amelia Richardson and Raj Patel. Both Amelia and Raj have
travelled extensively and recognized a gap in the Brisbane hospitality market for a boutique hotel that seamlessly marries traditional architecture with modern
luxuries.
Vision:
"The Azure Retreat" aims to be a sanctuary in the city, offering guests a serene escape from the hustle and bustle without compromising on accessibility to
Brisbane's myriad attractions. The hotel's design takes inspiration from Queensland's colonial past, integrating it with contemporary aesthetics to appeal to both
the nostalgic and the modern traveller.
Facilities & Amenities:
1. Rooms: A total of 50 rooms, divided into:
Standard Rooms: 30
Deluxe Suites: 15
Presidential Suite: 5
2. Dining:
"Lagoon Bistro": A gourmet restaurant with a seating capacity of 80, aiming to offer a fusion of Australian and international cuisines.
"Skyline Bliss": A rooftop bar offering panoramic views of the city, catering to around 50 patrons.
3. Wellness:
"Sapphire Spa": A wellness spa with services ranging from massages to holistic treatments.
Fitness Centre: Equipped with modern gym equipment.
4. Others:
A conference room for business meetings and small events.
An outdoor pool.
A gift shop stocking local artisan crafts and products.
Target Audience:
While the hotel aspires to cater to a wide range of guests, the primary target audience includes:
International tourists.
Business travellers.
Local residents looking for staycations or special dining experiences.
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Financial Data:
Initial Investment: $5 Million (This includes property acquisition, construction, and initial marketing campaigns).
Expected Room Rates:
Standard: $150/night
Deluxe: $250/night
Presidential: $500/night
Dining:
Expected average spending in the "Lagoon Bistro": $50/person
"Skyline Bliss" average bill: $40/person
Spa & Wellness:
Average treatment cost: $100
Other revenues include conference room bookings, poolside events, and gift shop sales.
Challenges & Considerations:
1. Brisbane has a competitive hotel market with several established chains.
2. Seasonal fluctuations: Brisbane sees a tourist influx mainly during events and the holiday season.
3. Maintaining a balance between the hotel's vintage appeal and modern amenities.
4. Ensuring top-notch service quality to generate positive word-of-mouth and repeat bookings.
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BUDGET ALLOCATION SPREADSHEET TEMPLATE
Department Allocated Budget (AUD) Actual Expenses (AUD) Variance (AUD) Notes/Comments
1,500,000 1,450,000 50,000 High-quality furniture
& equipment needed
for rooms and
Procurement amenities.
1,200,000 1,250,000 -50,000 Salaries for all staff,
including training costs
to enhance service
Staffing quality.
700,000 600,000 100,000 Initial campaigns were
less expensive than
anticipated, allowing
for potential
Marketing reallocation.
200,000 200,000 0 Fixed lease costs for the
Rent & Leases property's premises.
300,000 350,000 -50,000 Higher than expected
maintenance costs for
Maintenance initial setup.
400,000 420,000 -20,000 Additional inventory
needed for kitchen and
Supplies spa operations.
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100,000 90,000 10,000 Utilities remain slightly
Other Expenses under budget.
Total 5,000,000 4,460,000 540,000
This template was provided by eVersity for the purpose of this project. All entries and content are the responsibility of the student.
ONE-YEAR FINANCIAL FORECAST TEMPLATE
Month Estimated Revenue (AUD) Estimated Expenses (AUD) Projected Profit/Loss (AUD)
January 531,000 400,000 131,000
February 476,000 400,000 76,000
March 279,000 400,000 -121,000
April 270,000 400,000 -130,000
May 279,000 400,000 -121,000
June 270,000 400,000 -130,000
July 279,000 400,000 -121,000
August 279,000 400,000 -121,000
September 279,000 400,000 -121,000
October 270,000 400,000 -130,000
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November 279,000 400,000 -121,000
December 531,000 400,000 131,000
This template was provided by eVersity for the purpose of this project. All entries and content are the responsibility of the student.
POTENTIAL RISKS AND MITIGATION STRATEGIES TEMPLATE
Probability Responsible
Identified Risk (High/Medium/Low) Potential Impact (AUD) Mitigation Strategy Person/Department
Invest in robust
Cost of breach and cybersecurity measures
recovery up to 50,000 and regular employee
Cybersecurity breaches Medium AUD training. IT Manager
Medium Revenue decrease of 30% Introduce special Marketing Manager
promotions and
Decrease in tourist packages to attract local
arrivals guests.
Seasonal weather Medium Revenue decrease of 25% Develop indoor activities Operations Manager
disruptions and events to attract
guests year-round.
Increased competition in Medium Revenue decrease of 15% Enhance unique selling Marketing Manager
the local market propositions through
branding and customer
service.
Regulatory changes (e.g., Low Compliance costs of 10% Stay updated on Compliance Officer
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health and safety) regulations and invest in
compliance training.
Negative online Medium Revenue decrease of 20% Implement a proactive Guest Relations Manager
reviews/poor reputation guest feedback system
and improve service
quality.
Supply chain disruptions Medium Increase in operational Identify multiple suppliers Procurement Manager
costs of 15% for key materials and
maintain inventory
buffers.
Staffing shortages/high High Increased costs of hiring Enhance employee HR Manager
turnover and training engagement programs
and recruitment
strategies.
This template was provided by eVersity for the purpose of this project. All entries and content are the responsibility of the student.
Presentation Slide Deck Guide
(Note: This is a conceptual template)
Slide 1: Title Slide
Project Name
Date
Student Name/Group Names
Slide 2: Introduction
Brief about the boutique hotel
Importance of financial planning
Slide 3: Budget Allocation Overview
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Highlights from the budget allocation spreadsheet
Slide 4: Financial Forecast
Key points from the one-year financial forecast
Slide 5: Identified Risks & Mitigation
Top 3-5 risks and strategies
Slide 6: Conclusion & Key Takeaways
Summarize the financial plan and its significance
Slide 7: Questions & Discussions
Slide 1: Title Slide
Project Name - Financial Planning for The Azure Retreat
Date - 10/5/2024
Student Name/Group Names - Patricia Nicole Mali
Slide 2: Introduction
Brief about the boutique hotel - Overview of The Azure Retreat’s mission and vision, Unique offerings and target market (e.g., luxury travelers, wellness
seekers), Location benefits and competitive landscape
Importance of financial planning - Ensures sustainable growth and profitability, Helps anticipate challenges and manage resources effectively, Facilitates
investment in expansions and upgrades
Slide 3: Budget Allocation Overview
Highlights from the budget allocation spreadsheet - Pie chart illustrating percentage allocations for key departments (e.g., Operations, Marketing,
Housekeeping), Discussion of major expense categories (e.g., fixed vs. variable costs), Summary of expected revenue channels (e.g., room bookings,
events, food and beverage sales)
Slide 4: Financial Forecast
Key points from the one-year financial forecast - Projected revenue overview (monthly breakdown), Expected cost of goods sold (COGS) and operational
costs, Anticipated net profit and growth rate projections, Graph showing monthly performance trends
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Slide 5: Identified Risks & Mitigation
Top 3-5 risks and strategies -
1. Market Competition: Regular market analysis and adaptability in pricing strategies.
2. Economic Downturn: Developing a diverse revenue stream, including off-season promotions.
3. Operational Issues: Implementing staff training and maintenance schedules to ensure service quality.
4. Regulatory Changes: Keeping updated with local regulations and compliance requirements.
5. Health & Safety Risks: Improving health policies and guest communication to ensure safety during events.
Slide 6: Conclusion & Key Takeaways
Summarize the financial plan and its significance
- Recap of budget allocation and its alignment with business goals
- Importance of a proactive approach to financial planning
- Emphasize the hotel’s capacity for adaptation and resilience
- Highlight the expected positive outcomes on growth and guest experience
Slide 7: Questions & Discussions
RECORD-KEEPING TEMPLATE
Transaction Type Document Reference
Date (DD/MM/YYYY) (Income/Expense) Amount (AUD) Description Department (e.g., Invoice #)
Income 500 Room booking for Mr. Front Office INV-00123
01/11/2023 Smith
Expense 250 Food supplies for Food & Beverage REC-00145
02/11/2023 restaurant
Income 300 Conference room Events/Meetings INV-00124
03/11/2023 rental
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04/11/2023 Expense 180 Cleaning supplies Housekeeping REC-00146
Income 400 Bar sales from hotel Food & Beverage REC-00147
05/11/2023 guests
Expense 220 Maintenance for HVAC Maintenance INV-00125
06/11/2023 system
Income 150 Spa treatment for Spa INV-00126
07/11/2023 guest
Expense 300 Monthly internet IT REC-00148
08/11/2023 invoice
This template was provided by eVersity for the purpose of this project. All entries and content are the responsibility of the student.
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