The Hospitality business is a dynamic growth-oriented business in any economy. As economy grows so is the demand for lodging and leisure facility grows. In USA this business grows at a rate of 14% to 20% per year.
The Entrepreneurs has spent full time past more then 5 years to prepare for this venture. They have owned, operated, and managed both so-called brand and non-brand lodging facility. They have improved facility. They have thoroughly researched the various tier of lodging facility, customer base, customer satisfaction factors, and customer amenities. In addition they have vast experience in real estate development mode, methodology and cost, material procurement source and cost, maintenance and operational manpower source and cost. The Entrepreneurs are now confident to develop their own facility from scratch to finish serving a niche segment of the lodging and hospitality market.
Net earning in this business is traditionally 2.5 to 3.5 times more then other real estate business namely Single family housing, Multifamily housing, Apartment, Condos, and Commercial buildings.
This business has almost no credit sales. This is a 95% service business. The business requires very minimum products to purchase and stock. The business invests 90% in tangible, non-perishable items. Only about 10% of the investment is utilized for operating the business.
Facility development cost, which constitutes the major investment in this business, can be reduced to over 40% by intelligent design, size optimization, and in-house construction management, and material procurement compared to conventional market rate.
The lodging industry need modest investment, is real estate based, customer service oriented venture delivering long-term secure and steady return on investment. A return on investment of 20% to 30% per year is attainable.
Foreign investors qualify for permanent residency [and eventually citizenship] in USA.
This start-up company aim to build, manage, and operate new lodging and hospitality facility. The business philosophy is oriented around delivering highest value and service to the customers.
Unit Model Facility in a particular site has been analyzed. This model facility describes what can be made with a budget of one million dollars as a reference point. Most facilities size will be many times more then this model facility reducing the construction, operation, and management cost. Development cost and operational and management cost has been estimated. More then 20% return on investment is expected.
The Entrepreneurs plan to build several facilities in the coming years investing several 100 million dollars.
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