Free «Facilities Planning for Hospitality Tourism and Events» Essay Sample


A feasibility study is exceedingly crucial to any entrepreneurship venture because it helps in determining the viability of any prospective project and justifies its undertaking. The project aims to construct hotel building that will be located within the busy shopping center of Tsim Sha Tsui. This location is strategic since it has few hotels since most of them are located at the busy shopping centers. The site is accessible by both road and rail. Simple Hotel will specialize in accommodation, food and beverage service as well as recreational services. It will target the middle class residents and non-residents. Potential clients will be business travelers, holiday makers and adventure tourists. The objective of the paper is to design at the hotel by analyzing the potentials of an area supporting a sustainable business (Veal, 2006).


The management plans to significantly expand into accommodation market for the purposes of improving its profit margins, as well as increase its local market share. It seeks to decrease its costs and expand its services by increasing its rooms and target the many tourists who visit the town.



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It strives to offer the finest quality rooms’ design, cost estimates, site preparation, and alterations to clients needs. It seeks to maintain highest standards of service in the hotel industry. The Hotel seeks to exceed its guests’ expectations at all times through consistently providing quality products and excellent services, which are the true cornerstones of genuine hospitality. It aims to be the most innovative and dynamic organization always targeting to improve itself in every way. Ultimately, the hotel seeks to safeguard and protect owners’ investment for the purposes of constantly improving to win worlds recognition as Tsim Sha Tsui’s premier hotel. 

Keys to Success

At the moment, the local and international tourism industry is booming. For the purposes of attaining dependable position in this environment, Simple Hotel will concentrate on the following tasks.

  1. Secure local markets and international market for accommodation, meetings and conferences over the next four years.
  2. Expand its customer base through expansion to other geographic areas with a goal of retaining sufficient level of profitability.

Market Analysis

At the moment, the Tsim Sha Tsui area is booming with the overall growth over the past four years averaging to approximately 7.8%, which is expected to continue over the next three years. This constitutes a suitable and attractive market for hotel business. It will concentrate on the customers, who will provide the hotel with  the greatest margin, that is, those clients visiting the area for the first time and from emerging markets. Of all hotel industry’s clients, this is the fastest growing segment. The category will serve to include the special facilities and restaurant segments, along with other potential clients.

Market Segmentation

Currently, the potential lists of clients include all the various businesses in the Tsim Sha Tsui area, as well as visitors. According to Tsim Sha Tsui Business Association, there are approximately 7,000 firms of all sizes and types in the surrounding area. The hotel will mostly concentrate on clients, who can provide it with the greatest profit margin. This is because this is the fastest growing segment.

Target Market Segment Strategy

Since accommodation has the highest profit margin, most of the hotel’s marketing and servicing will be focused towards these customers. Usually, these clients book rooms for longer durations, which are mostly of executive class. In addition they tend to be more sensitive on quality, which is one of the aforementioned missions of the hotel. Therefore, the management plans to accommodate such clients through an expeditious and well established program, strict supply management and cost accounting, and comprehensive and intensive services.  

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This report will make use of secondary data because there is no primary data that is relevant to this report and conducting a full research will be costly and time consuming considering the scope of the study. The information required is essential for the development of a luxury hotel. Secondary data from various studies and literature reviews from various sources will help understand the concept, design and planning in the hospitality industry. The report will describe the three levels of the product as far as Simple hotel is concerned. During the study, reliability and validity of the sources used will be ascertained before the information is obtained to support the report (Fogg, 1999).

Design and Concept

Simple Hotel will adopt a 3-star green lifestyle hotel. Its design will offer basic amenities at middle-class budget rate and basic rooming houses. The hotel building will offer standardized services that provide the client with the value of money. The structure will adopt a professionally developed interior design that will be based on a specified them. The restaurant will be at the ground floor and next to the reception. It will have modern facilities that ensure client relaxation. The management offices will be located behind the reception while the kitchen will be next to the restaurant. The rooms will start from the first floor all the way to the third floor. There will be a rooftop swimming pool that allows customers to experience the heaven beauty. The swimming pool will be design to represent the shape of the hotel. The planning stage will bring together experts, logistics and finances require for the purposes of achieving success (Strategic Plan, 2010).

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Historically, trends offer a positive outlook for the economic conditions in the subject market area. Review of the market area demographic and economic trends provide positive indication of the relative health of the proposed area. The population growth that the area experiences are a positive indication for the development since there is potential of additional demands for rooms and meeting rooms following the increase in the population (Richard et. al., 2012).

Levels of a Product

The hotel’s core products will include customer satisfaction, convenience and enjoyment. This level of products is characterized by the intangibility and the main purpose of the hotel. The hotels tangible products will be food and beverages, accommodation facilities, entertainment and recreational facilities. This level of the product is characterized by quality and quantity. The augmented product of the hotel will be maintenance of facilities, cleaning of swimming pool, entertainment functions such as live bands and concierge services. These three levels of hotel product will characterize is service culture. Their proper management will ensure customer satisfaction due to the quality of services. The product was selected because many people visit the subject area because of its numerous attractions (PKFA, 2010).

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The tour and travel demand segment are approximated to account for sixty-five percent of the competitive market for night room demand. Leisure demands consist of couples, families, social groups and persons seeking weekends ‘get-away’. This includes persons seeking to experience unique and different atmosphere distinct to their normal routine. Usually related to vacationing, leisure demands encompass anything from visiting relatives/friends to extended vacationer. Studies have established that people aged between 25 and 34 find more pleasure in trips compared to any other age group. The continued growth in the mature market will expand the market for leisure for travelers. Majority of leisure travels takes place during the summer and on weekends. However, this demand is likely to main stronger during the winter and fall during the weekends in the same season. Although the entire market is too price sensitive for a Simple hotel, there is an upper end segment, which is likely to respond suitably to a high quality hotel in the proposed location (Nykiel, 2007).

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Group Demand Segment

The group segment demand account approximately for twenty percent of the competitive market. The level of commercial meeting demands, in the commercial segment, can be attributed to the growth in industrial and commercial development within the area and the potential weekly, annual, and quarterly meetings and training sessions following the expansion of commercial base. Group demand is often more rate sensitive compared to the commercial segment since they are more willing to book more rooms for a lower rate. Compared to commercial, individual segment, this segment is more likely to stay in double occupancy, which is more advantageous (Hassanien, 2007).


Economic indicators of the proposed Simple Hotel showed a positive outlook for economic development in the region, as well as historical attractions, considering historical tourism attraction for the market, can provide sufficient attraction for travel groups and higher level tour, given proper marketing and packaging. Hotel will emerge as a major competitor in the field of hospitality. This will only be achieved if proper planning and effective concept design are adopted. Effective management of the three levels of the product will enhance its competitiveness. Hotel will emerge as a preferred hotel due to its high-class services and world-class facilities (Bhasin, 2011).


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