Sample Business Plan on Resort or Condominium Business Plan
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Executive Summary
The Isle of Palms is a new resort and condominium complex being constructed on XYZ, the most developed island of the ABC and DEF Islands group of Caribbean islands in the British West Indies. Lying southeast of the Bahamas and northwest of the Dominican Republic, the ABC and DEF Islands are easily accessible by those in the Eastern United States. About 175,000 tourists take advantage of that accessibility each year.
When construction is finished there will be 78 residential and 15 commercial units on 3.5 acres. The entire area is becoming better known and more popular, in part because of the privacy that tourists and guests can find there. Increased demand for available accommodations is evident in the increase in room rates that hotels and other resorts have imposed in the past year. Budget accommodations have increased 20 percent; more luxurious accommodations have increased as much as 34 percent in a single year. Hotel operators typically use yield management pricing quite well; hotel room rate trends can be used as a leading indicator of general tourist trends in the local area.
The Isle of Palms was granted a loan for land purchase in 2005 and now seeks a construction loan to begin work on the resort. Without any active marketing efforts to date, so far 19 of the 78 total units scheduled to be constructed have been sold in the closing months of 2006 and the first two months of 2007. Current demand is significant and increasing, and it is an attractive time to begin construction on the The Isle of Palms Resort and Condominiums to make units available not only for pre-construction sale, but also for physical possession.
Company Description
XYZ Consulting in Fort TTT, STATE is the company overseeing and conducting the construction, unit sales and operation of the finished The Isle of Palms Resort and Condominiums complex in the ABC and DEF Islands. The complex will be located on 3.5 acres of land on the most developed of the 40 islands and cays of the ABC and DEF Islands.
Products and Services
The Isle of Palms is the name of the resort that will be constructed on land that was purchased by the organization in 2005. There will be 78 residential units and 15 commercial units when the project is completed; to date we have sold 19 of those units through pre-construction sales in only four months’ time. We anticipate full sell-out to require 2.5 years, approximately the same length of time that will be required for full completion of the construction project.
Floor plans for all unit types can be seen online at YOUR-WEB-SITE, The Isle of Palms’s website. Each residential unit is designed to maximize the view from the hillside on which The Isle of Palms will be located. Each unit has a direct view of the ocean in the “public areas” of the condominium, with functional and private areas being retained at the back of the unit. All units are the same length, but the larger and more expensive units are wider and provide a more expansive view of the ocean. Prices are $350 per square foot. The basis of the unit price combined with the visible difference being in the width of the unit provides a direct visual point of reference for potential buyers that enables them to directly associate higher price with greater benefit.
With its attention to tourism and promoting greater tourism, there are many activities on and around Provo to engage visitors to the ABC and DEF Islands and The Isle of Palms. There are activities in “water sports, hiking, walking, running, golfing, sight seeing, dining and of course, shopping” (Development Profile, 2006), as well as other activities including “Deep sea fishing, para-sailing, sailing, snorkeling, and some of the best diving in the world” (Development Profile, 2006) at Turtle Cove, which is within walking distance of the entrance to The Isle of Palms.
On the grounds of the resort, “Lush roof-top gardens, soothing waterfalls and spacious balconies and terraces provide property enhancements that are luxurious and comfortable, reflecting a beautiful design that pampers residents with its refined tropical ambiance” (Development Profile, 2006). The bottom line for owners and visitors is that there is (with more planned in the future) an array of activities attractive to tourists within easy access of the resort. The active family will be able to take advantage of some of the adventuresome activities while also having the option of simply relaxing on expanses of white powder sand and being cooled by continuous tropical trade winds.
Marketing Plan
Other properties in the area will be described in the “Competitive Environment” section below; here only The Isle of Palms is of interest. The marketing mix for any product consists of the “four Ps,” which are product, price, place and promotion. Management of each “P” of the marketing mix is required for maximum effectiveness in marketing. The plan for managing those categories of the marketing plan for The Isle of Palms are as follows.
Product
As stated, the residential units all will have a view of the ocean. The units are long and narrow to ensure that every unit has a view, and the design “stacks” units up the hill on the The Isle of Palms property so that each unit gains the most advantageous view possible. Unit interiors will be luxurious and quite comfortable for all guests and residents, regardless of background or expectations.
There will be shops and other commercial services in the commercial units of the main building. Three buildings – AAA, BBB, and CCC will support rooftop gardens rising above the lower residential buildings and the commercial center that will be situated below them. Residents and guests will have available to them any type of physical environment they desire at any time.
Price
As stated, the selling price of a residential unit is $350 per square foot. This represents a high midrange when compared to other properties in the area, many of