trends in Hospitality and Tourism worldwide and how it effect the hotel trends in San diego

H70.3

Integrated Business Planning and Performance

H7020

Alphy Johnson

Glion Institute of Higher Education

2 May, 2018

_________________________________________________________

Hotel Resort

Business Plan

__________________________________________________________

Business name: Orient Hotel

Address: Friars Road Town

Town, County Postal Code: San Diego, 92108

Telephone: 619-290-0262

Fax: (858) 712-8727

Email: [email protected]

Competitive Analysis…………………………………………………………………….12

This is what is required to open a business in San Diego: (Governor’s Office of Business and Economic Development, 2018)

Building and Construction Permits - Applies to: City

Business License - Business Tax Certificate Applies to: City

Fire Safety Regulations Applies to: City

Land Use, Zoning, & Sign Permits Applies to: City

Minimum Wage Program Applies to: City

The minimum wage is $11.50 per hour (City of San Diego, 2018)

Police Permits/Licenses Applies to: City

Environmental Health Permits Applies to: County

Fictitious Business Name - Doing Business as Statement Applies to: County This is required when the business name is vague, if it contains additional owners or if the business activity cannot be identified by looking at the name of the business

Discrimination Law Applies to: State

Occupational Safety and Health Information Applies to: State

Businesses with employees must prepare an Injury and Illness Prevention Plan.

Registration Form for Employers Applies to: State

State Income Tax Information Applies to: State

Wage/Hour Laws Applies to: State

Workers' Compensation Information Applies to: State

Employer Identification Number (EIN or SSN) Applies to: Federal

Proof of Residency Requirement Applies to: Federal

Technology Environment

The hotel will invest in translating its website as it “recreates the feeling of being at home” for the guest and it will “reduce complaints from guests who struggle to access services” (smartling, 2014). This shows that if the hotel develops its website so that it can translate, the guest will have a positive experience before they come to the hotel. According to BBC (2017) Danny Manu developed instant translation headphones “Danny's product is called Clik and he bills it as the world's first truly wireless earbuds with live translation. The idea is that you speak in one language and another person hears what you say in their own tongue.” This shows that translation technology is being developed and the hotel can use this technology for non-Chinese speakers to understand the Chinese guests better.

Trends and Outlook

According to Weisberg (2018) “The Tourism Authority will spend $20 million on advertising throughout the year, about $3 million more than last year, Terzi said. Included is the China campaign, plus additional allocations for Balboa Park and marketing in Los Angeles. This shows that San Diego is trying to attract Chinese tourists by having campaigns and promoting Balboa park. A long-term trend in San Diego is that “it has a low unemployment rate of 3.3% and San Diego is aiming for a 3% GDP growth for the next 10 years.” (Showley, 2017). This shows that San Diego has a low unemployment rate which suggests that the hotel should motivate employees and keep them in the company for a long time. In terms of GDP growth, the hotel can contribute to the economy by raising room rates so that people can spend more money. A threat to the hotel is earthquakes, as San Diego is located on the San Andreas fault line.

Competitive Analysis

Strengths & Weaknesses

Orient Hotel is an independent 4-star business hotel located in Mission Valley. The main advantage of our hotel attracts Asian tourists. We wanted to make the market segment contentedly narrow, to be unique in this for our guests. It did not affect the quality of the services provided, but rather increased the uniqueness of our service. To avoid problems with payment, we provide our guests with the opportunity to pay by Alipay. Since the hotel is located next to the Fashion Valley, we want to attract shoppers. And for us, it is a plus, since taxes luxury brand is very high for example in China. Our hotel is profitable to sell vouchers for luxury brand for our Asian guests. In addition, we cooperate with the airline, which advertises our hotel in their airplanes. One of the factors of visual impact on our potential guests.

Each business has competitors, around our hotel there are many hotels that belong to well-known brands. Naturally, it is very difficult for us to compete with large chains of hotels because for example, it is impossible to do a loyalty program for us since we are located only in San Diego. Despite this, our hotel provides special rates and offers for the military and business travelers.

Opportunities & Threats

As Asians like high technologies, our hotel provides various opportunities. We have a website where you can do online check-in / out and find all the information about the hotel. Moreover, our hotel uses a power saving system, so as soon as the guest leaves the room, all the lights are turned off. Furthermore, at the moment the most popular way of reservation a hotel is booking through an operator. Our hotel also cooperates with some operators, we provide guests with the ability to make reservations online.

When a guest chooses a hotel, he first looks at the location and the quality of the services provided. Therefore, for the hotel, the main threat is political and economic turbulence, because this threat reduces the flow of visitors. It is also very important to conduct research on the tastes of consumers, especially to attract Asian tourists. They are following the novelties faster than everyone else in the world. Moreover, the threat of any hotel is competitors. Below you can see our potential competitors.

San Diego Marriott Mission Valley: The hotel belongs to the Marriott. Guests will need only 16 minutes to reach the airport. The hotel offers a large number of different types of rooms. Each room is decorated in beige tones, so as not to tire the eyes of visitors too bright colors. Also, each room has a balcony, which gives guests the opportunity to enjoy the area without leaving the room. The restaurant serves American and Spanish cuisine. For guests who have a Membership Card provides M Club Lounge, it only exists in San Diego hotels. This service includes a visit to a special floor, which provides a 24-hour Concierge service and free snacks and drinks. Also, this location of the hotel is well suited for fans of sports events, because there is SDCCU Stadium nearby (Marriott International, 2018).

SpringHill Suites by Marriott San Diego Mission Valley: This is a wonderful 3-star hotel that it is part of the Marriott chain. It already indicates a high standard of quality and services. Marriott works in the global market and quite strongly captured the online booking. Also, the chain has profitable partnerships with other hotels. One of the main disadvantages of the network is a large staff turnover since the requirements for employees are very strict, not everyone can meet the requirements. The hotel has an excellent location, it attracts a wide variety of tourists to this hotel from large families to business partners. There is also a large outdoor pool and a complimentary breakfast is provided each morning. The hotel is suitable for conferences and business meetings, as it has an art meeting room (with best audiovisual equipment). Since the hotel belongs to the chain of the big brand, it has various discount programs and there are special rates and offers for the Government and Military (Marriott International, 2018).

DoubleTree by Hilton Hotel San Diego - Mission Valley: The hotel is part of the Hilton Worldwide. It also made a renovation, so the rooms are completely renewed in design and technology. The hotel has two restaurants and one lounge. Also, for fans of water procedures, there is a swimming pool with hydromassage, surrounded by tropical palm trees (DoubletreeTree by Hilton, 2018).

Hilton San Diego Mission Valley: It is a 4-star hotel, that it was renovated in 2015. On the territory of the hotel, there is a lounge for guests, restaurant and bar Polanco with Latin cuisine. A 24-hour business center and a conference hall for 750 people, which attracts business travelers here. One of the disadvantages of this hotel is the location next to the freeway, which makes the noise to guests (Hilton, 2018).

Sheraton Mission Valley San Diego Hotel: The hotel is part of the international Sheraton hotel chain. The network is also a part of Starwood Hotels and Resorts Worldwide. The hotel chain presents the best technological innovations for the guests. The disadvantage is a separate fee for parking and Wi-Fi, which is not always comfortable for guests. Since the network has a large number of resorts, it is very difficult to support and monitor the quality of services in every hotel. This hotel has an excellent location, from the windows of rooms offers an amazing view of the Mission Valley. Guests of the hotel can visit the beach and explore the historic town. Also, the hotel welcomes guests with animals, especially for your pet, there is the Sheraton Sweet Sleeper Dog Beds. For regular guests of the chain (Sheraton Club), there is a service and accommodation on the upper floors (Sheraton Mission Valley San Diego Hotel, 2018).

Homewood Suites by Hilton San Diego Mission Valley/Zoo: It is a very popular place for visitors to San Diego. Near the hotel, there are two large shopping centers, which attracts fans of shopping. The hotel staff speaks English and Spanish. The hotel is part of the chain of Hilton Hotels & Resorts. One of the advantages of the network is effective schemes for retaining clients, as well as a high level of service, using high technologies. The big problem for the chain is the dependence on the US market since most of the hotels are located in this area (Homewoodsuites3, 2018).

Extended Stay America San Diego- Fashion Valley: The hotel belongs to the chain of hotels Extended Stay America. This chain has 629 hotels in the United States and Canada. Each room is equipped with a kitchen. Weekly cleaning is free of charge, daily cleaning is done for a fee. The hotel provides free calls to all local numbers (Extendedstayamerica, 2018).

Strategy and Implementation

To develop and maintain a competitive hotel, a hotel needs to be attentive to the needs of its guests and its strategies need to be molded around the specific and varied desires of these travelers. Strategy were first used and deployed in battlefields during the Greek times, but since then have found themselves to be the bedrock of any organization. In the case for our hotel, all the strategies have been formulated with the singular outcome of satisfying the needs of our guests.

Customer segments/target markets and Marketing Strategies:

· Leisure travelers (Domestic): San diego is one of the most visited cities in USA. Excellent weather, Beaches, Attractions such as Zoo and Sea world are just some of the features that lure a citizen of the United states to this city. Therefore, for our domestic travelers, our approach would be more personal. Right after they have made a booking, we would contact them to find out what attraction they would prefer, would they be travelling with children and if yes then would they prefer to go to the sea world or the zoo. We would provide them with an itinerary to know their demands.

· Leisure travelers (International): We would be particularly targeting the Chinese market as our international leisure travelers. We would be collaborating with China’s Hainan airlines and running out advertisements in their domestic as well as international flights, to attract these travelers. Since the Chinese traveler indulges in heavy shopping due to lower tax rates, we would be offering them packages that would include special discounts and gift cards of brands popular within the Chinese travelers such as Uniqlo and Zara (Shepard, 2016). These brands are popular within the young consumers and travelers of china. Apart from the shopping packages we would also be offering them sightseeing tours of the Zoo, Sea world, Balboa park because sightseeing and dining have been placed ahead of retail by majority of travelers. (Hancock, 2017)

· Business travelers: To attract our business segment travelers we would have breakfast on the go, early check-in and departure, flexible rates, Wi-Fi, shuttle service to and from airport, Fitness center, dry cleaning and most importantly loyalty programs to earn their trust. We would also provide two 30 seaters meeting rooms and a larger banquet cum conference hall which could accommodate up to 200 Pax. As in with our leisure travelers where our approach would be more personalized, we would follow more of a professional suit for our business travelers. Business travelers would be on the rise in san Diego due to the newly constructed convention theatre and civic theatre, where conferences would be held throughout the year.

· Tour groups: Would also form a partnership with Chinese travel agencies such as China international service ltd. with the aim to attract tour groups. Chinese travelers do most of their booking through online travel agencies, their we would have to create appropriate advertising techniques, our collaboration with Hainan airlines, one of those techniques.

Positioning and product strategy:

We would be positioning our hotel in the upper midscale category since our main competitors belong to the same category. To compete with other hotels such as Sheraton mission valley, Marriott double tree mission valley, our aim would be to provide the same services and products for a lesser price, therefore opting for the same for less strategy. Our leisure segments guests can be further divided into domestic and international, so to attract the domestic traveler the product we would be offering packages that would include sightseeing tours of san diego and attractions, such as the zoo and sea world and for the international travelers, especially from china, we would offer them shopping packages for shops in fashion valley which would consist of gift cards and discounts. As for the corporate travelers, we would be offering all the products a business person would require. We would have breakfast on the go, early check-in, and departure, flexible rates, wifi, shuttle service to and from airport, Fitness center, dry cleaning and loyalty programs earn their trust. Also, we would form corporate accounts with the company itself, so they can pay directly for their employees at special discounted rates. Overall, to be an upper mid-scale hotel, we would consist of 250 rooms, a Chinese restaurant, 2 meeting rooms (30 seats each), a banquet/conference hall (100 Pax) lobby bar, Mini-bar in room, In-room dining and a safe and a SPA.

Distribution Strategy:

We have selected carefully which channels we are going to use for our distribution. They are as follows:

Table 1

Table 1 represents how our hotel are going to distribute the 250 rooms at our disposal through the various channels. We have selected 125 rooms for corporate contract because that’s the highest number of business/corporate rooms we can sell at once to a buyer(company). The same goes for tour, large & small groups as we classify them as leisure and the promotion and qualified which we classify in the business segment.

Pricing Strategy:

Rooms

We would be following the competitor-based pricing for our products and services. We would conduct a complete assessment of competitors pricing strategy, such as the rates they apply to every room type, amenities, F&B services, their refundable and non-refundable terms. Depending on the demand and supply and the seasonality we would then sell our products and services based on dynamic pricing. Also, we would be accepting Alipay as means of payment.

Food and beverage:

Service and Supply Strategy

Our service quality would be maintained through us emphasizing on the staffing standards. We would have highly skill staff at our disposal because we would create an internal talent pool and focus on employee empowerment. We are going to opt for the fully focused service strategy because we are focusing on a selected market, Chinese travelers and business travelers and we would be providing them with the services they desire.

Human capital strategy:

As mentioned in our service strategy, focusing on employee’s skill set and improving it would be our way to move forward and to keep our clients happy. Therefore, we would be creating an internal talent pool. Ways of developing a talent pool:

1.) Review your organizational strategy- for identifying the competencies.

2.) Assess the company’s talent to identify skill gaps.

3.) Buy, build, and borrow to bridge the gap.

4.) Create activities to help develop the skills of employees.

5.) Monitor progress.

Overall Business Unit Strategy:

As our business level strategy, our hotel would opt for the focused differentiation strategy. We would choose this strategy because we are targeting the Chinese market and corporate travelers as two of our main targets. In focus differentiation a small market niche is targeted through a selected set of services and products. Our services such as Shopping packages, loyalty programs, Multi-lingual staff, to name a few should help us in pursuing these travelers to stay with us. Also, we believe factors such as: Chinese ownership, San diego city council to lure Chinese visitors in San diego (Weisber, 2018), Chinese travelers heavy indulgence in shopping (China's addiction to luxury goods, 2014) would prove to be beneficial to our hotel in attracting the Chinese market. The main threat or risk of choosing this strategy is the change in consumer taste. That can be the consumer opting for another hotel or a city. Another threat is that more successful hotels could also adopt this strategy and try to snatch away our market share.

Operations forms the most important segment of the hotel, because during operations consists of a traveler checking into his rom and operating the hotel facilities. Therefore, it is important for us a hotel to provide those services for which the guest has demanded or Paid for without fail.

Production

· Rooms: Each guestroom comes with minimal but a distinctive Chinese touch such as Chinese tea cups and Pots, slippers. Our premium rooms offer plush linen, Exotic bath amenities and Chinese bath robes. In addition to that, all rooms have the following:

1.) Fully stocked minibar

2.) Complimentary coffee and tea.

3.) Electric kettle.

4.) Complimentary water.

5.) LCD TV in bedroom and for the premium rooms in the living area.

6.) DVD and blu-ray player.

7.) Complimentary wifi.

8.) International adaptor.

9.) Movies on demand.

As for the services:

1.) Nightly turndown service.

2.) Daily newspaper of choice (complimentary)

3.) Bathrobes and slippers. (also available in children sizes)

4.) Room service.

· Food and beverage:

1.) Room service- Timings for the room service are as follows: Breakfast; 7:00 Am to 10:30 Am. Lunch; 12:00 pm to 2:30 pm. Dinner: 6:00 pm to 10: pm, Snacks; 11:00 am to 10:00 pm.

2.) Chinese restaurant on ground floor- Our Chinese restaurant, named the Emperor, is a top of the notch Chinese restaurant, serving exquisite food to our in-house guests and walk-ins. It is a 125 seats restaurant with an adjoining 50 seat bar lounge. The bar lounge area is big enough to host breakfast in the morning and if there are more people to accommodate, which happens most of the time then our Chinese restaurant comes into use. At the helm is the executive chef who we handpicked from china. Chinese restaurant. Head chef during Breakfast hours is someone different. Timings are as follows:

· Concierge: Our concierge is located on the ground floor. Any news related to the city san diego can be availed here. This includes tickets to the Zoo, Sea world, Football and baseball matches etc. We have also hired mandarin speaking personnel for the concierge to help are non-English speaking travelers from china. Concierge opening hours; 7 am to 7 pm, all week.

Personnel

To fill up the different jobs on premises, we have different type of labour. Skilled workers are mostly required in the F&B department and the service department. Presenting the menu, Knowledge of wine and the food being prepared is just as hard as the preparation. As for the professional labours, the management team, consisting of lower level managers such as floor manager or security manager form the professional workers. Lastly, House cleaners, maids, Restaurant runners, bell boys, Cleaning and sweeping staff, are what we refer to as unskilled because the work they perform is not taught in any school. No matter the skill they possess, each job in a hotel is important because everything is correlated and the only person who matters is the guest. To find new employees, we use the same method we use to find customers, we investigate several channels. Our main source of recruiting is placing an advertisement in the local newspaper. Respondent to the add. Is then called upon for an interview. Online platforms such as monster.com, Linked.in, Glassdoor, provide us with the details of the applicant, and if he or she matches our requirements then they are also called upon for an interview. Other channels that help us find employees is word of mouth, generally from someone who has been working with us, as there is already a level of trust. Since, we have started developing a talent pool of our own, recruitment or promotion would be within the hotel itself. The quality of our existing staff is commendable and as we already mentioned, we would be creating an internal talent pool, which would consist of vigorous training methods, aimed at empowering our employees.

For front desk, we plan to cover 21 shifts per weeks- which includes, daytime, evenings, and night audit for each day of the week. During peak hours, depending on the target market, we would have 10 fulltime workers and 10-part time or 12 full time workers and 8-part time workers at the front desk. These workers would be front office managers, assistant managers, Floor supervisor (lobby). A manager could also drop in help the front desk during heavy check-ins. For housekeeping we would have 30 room attendants. Our aim is to clean 40 rooms per day at 25 minutes per room. 3 laundry people for the on-site laundry. For cleaning we will have 8 utility persons, whose job would be to clean the public areas. 4 maintenance workers and 4 repair tech. Moving on to the F&B, we would have 2 restaurant managers who would handle the entirety of the duties, which includes opening and closing of restaurant, open cash register, deal with suppliers, purchase food and beverages, train and manage the staff, keep a track of the inventory and most importantly develop and implement a marketing strategy. Above all he should display good leadership skills. We would have 1 bar manager and 1 bartender for the bar. For the chef’s in our kitchen, we would have 1 executive chef and 2 sous chef, 1 pastry chef and 3 cooks. As for the chefs, the sous chef and the pastry chef would be working under the executive chef. We will have 2 full time and I part time cooks. Of the two full time cooks, one would work mornings while the other would work evenings and the part time cook would help during peak hours. Other tasks of the full-time cooks would be take care of food preparation. All the staff members would receive salaries, with bonuses included after a period of 18 months.

Inventory

We would be creating a store department in our hotel. We would be storing it with dry goods such as Pasta, wheat, flour, jam’s, Dry fruits, bread, vegetables such as onion and potato, etc. (other dry items). The bar manager would oversee the liquors and for the storage of meat products we will have a deep storage and that would be handled by one of the sous chef. In the kitchen we would also have a walk in, in which we can store sauces, soups and salads.

Suppliers

We would be purchasing our supplies from Specialty produce in San diego. Their address is 1929 Hancock St#150, San diego, CA 92110, USA. We will send the payment to their bank account and hereby receiving the confirmation of payment they will deliver the goods. Specialty produce is a reputed brand amongst the san diego community and have proven to be reliable host to their customers. So also, we would not be concerned with any problem regarding delivery.

Financial Plan

In 2017, there were 35 million visitors to San Diego, of which more than 17.6 million stayed overnight and more than 17.4 million were day visitors (San Diego, 2017).

The tourism is second largest export industry of the city and results in 1 in 8 of the local jobs. The city already has developed state of the art hotel rooms and many different entertainment options in order to attract the tourists and is known as the paradise for the vacationers. Since the city is already a major tourism destination, it will feasible to develop a 4 star hotel in order to attract Chinese and MICE segment as US$ 3 million is planned to be approved by the City Council in order to further boost the tourism industry by attracting Chinese tourists (WTOF, 2017).

As our main marketing target is Chinese shopper and tourist, as well as Chinese MICE guest, we are going to have at least one Chinese speak staff in every front-line department in every shift, then Chinese guest do not have to speak English to get the service they need, this is going to benefits a lot to our guest, especially for older travelers who cannot speak English. Therefore, Chinese guest could have better stay experience in Orient hotel than other hotel in San Diego. Furthermore, our hotel going to gain more revenue because there is no language barrier between customer and staff. For example, a non-English speaking Chinese guest want to order a room service, without Chinese speaking staff, both the guest and staff will meet a serious problem when they ordering the food. However, in Orient hotel, the situation is different, our room service department is going to have at least one Chinese speaking staff on duty in every shift, which make the ordering process much easier in full Chinese speak conversation.

The marketing plan we have is mainly focus on Chinese market, so that we are going to advertising on Chinese website for example the biggest searcher engine, baidu.com and the biggest OTA, Ctrip.com. In addition, we are going to put our advertainment on the social media in China on WeChat and Weibo and most importantly we are going to increase the advertainment delivery volume before the Chinese holiday especially before the Spring Festival and National day which is two main holidays for Chinese to travel around.

The MICE segment is the most looked after and attractive segment in the hotel industry. This is an extremely competitive business segment especially with relation to the major group segments as it brings in more revenue for the hotel industry than the individual business, leisure and FIT tourism (Figuera, 2018). Since the Chinese flights fly non-stop from Beijing to San Diego, the risk is less in every case. If more investment is made, the Chinese will be more attracted to come to San Diego rather than just a day trip to the city (McCallister, 2017). According to a report, in 2016, there were almost 122,000 Chinese visitors in the city, which marks a 15% rise as compared to 2015 and the main purpose is to make San Diego the largest overseas market for Chinese tourists in next 5 years (Tok, 2018).

Project Funding Summary

Our hotel will be fully owned by HNA group which means the HNA group will provide 25.11million of fund to our hotel, also we will loan 16.25milliom from bank as part of our fund.

There are two important reasons why HNA group invest us, first, HNA as a Chinese company are very interested in investing and purchasing foreign hotels, they purchased Carlson Hotels in 2016, and puts $1.4 billion stake in hilton spinoff up for sale, therefore, we offer an opportunity for the HNA to invest more in US. According to US Immigration and Naturalization Service, the company that invest more than 1millon dollars could apply for commercial visa for longer stay time. Second, HNA, as the biggest a shipping and transport company in China, is shipping over $5 billion product to US in 2017. San Diego as one of the biggest and busiest port in US have a lot of business to be done for HNA. Therefore, we are offering discount rate for their employee as well as their family.

Assumptions and Risk Analysis

The main idea is to develop a 4 star hotel in San Diego that will primarily attract Chinese tourists and MICE segment. This hotel will provide accommodation, convention centre, gymnasium, wedding hall, swimming pool and food services to the guests with capacity of 250 rooms.

Based on the assumption there are 250 rooms and suites and we are expecting occupancy rate is reach 75% in the next 5 years when it is expected that Chinese travelers rates will rise in the San Diego tourism industry. These tentative occupancy expectative levels are based on the historic trends of the 4 star hotel in San Diego. The major risk that is involved here is that the number of projects in the pipeline in the hotel industry in San Diego is increasing and there is always a risk of cluttering, market saturation and over-building of the projects despite the fact that this is not a major concern at the moment. Hence, for the next one decade, the hotel industry of San Diego is highly attractive.

References:

California Labor Code (2018) retrieved from: http://leginfo.legislature.ca.gov/faces/codes_displayText.xhtml?lawCode=LAB&division=2.&title=&part=2.&chapter=1.&article=

Cellan-Jones R. (2017) CES 2017: Danny’s amazing earbud adventure retrieved from http://www.bbc.com/news/technology-38514399

CIC Research Inc. (2018) Overseas and Mexican Visitors to California. Retrieved from: https://industry.visitcalifornia.com/Research/Report/2016-Overseas-and-Mexican-Visitors-to-California

City of San Diego. (2018). Minimum Wage Program. Office of the City Treasurer. Retrieved from: https://www.sandiego.gov/treasurer/minimum-wage-program

City of San Diego. (2018). Retrieved from: https://www.sandiego.gov/mayor

https://www.local30sandiego.org/

Kwok, L. (2014). To love or to hate Chinese tourists. Retrieved from: http://exclusive.multibriefs.com/content/to-love-or-to-hate-chinese-tourists/travel-hospitality-event-management

Showley, R. (2017) Economists, CEOs look ahead to 2018: The indicator they'll track most The San Diego Union Tribune. Retrieved from: http://www.sandiegouniontribune.com/business/economy/sd-fi-econometer31dec-20171231-story.html

Smartling (2014). Breaking Down the Language Barrier with Hospitality Translation retrieved from: https://www.smartling.com/blog/breaking-down-the-language-barrier-with-hospitality-translation/

State of California Department of Industrial Relations (2018). Retrieved from: http://www.dir.ca.gov/dlse/dlse.html

Tourism Economics (2016) An Analysis of the San Diego Tourism Marketing District Benefits to Hotels Retrieved from: https://www.sandiego.gov/sites/default/files/tmd_tourismeconomics072916.pdf

Weisberg, L. (2018) San Diego spending $1M to lure Chinese visitors The San Diego Union Tribune. Retrieved from: http://www.sandiegouniontribune.com/business/tourism/sd-tourism-china-20180206-story.html

Doubletree3.hilton.com. (2018). Mission Valley Hotels - DoubleTree Hotel San Diego. Retrieved from: http://doubletree3.hilton.com/en/hotels/california/doubletree-by-hilton-hotel-san-diego-mission-valley-SDGO-DT/index.html

Extendedstayamerica.com. (2018). San Diego - Fashion Valley Hotel | Extended Stay America. Retrieved from: https://www.extendedstayamerica.com/hotels/ca/san-diego/fashion-valley

Hilton.com. (2018). Hilton San Diego Mission Valley Hotel. Retrieved from: http://www3.hilton.com/en/hotels/california/hilton-san-diego-mission-valley-SANMVHF/index.html

Homewoodsuites3.hilton.com. (2018). Homewood Suites San Diego Mission Valley - Zoo Hotel. Retrieved from: http://homewoodsuites3.hilton.com/en/hotels/california/homewood-suites-by-hilton-san-diego-mission-valley-zoo-SANMZHW/index.html

Marriott International. (2018). San Diego Marriott Mission Valley. Retrieved from: http://www.marriott.com/hotels/travel/sanmv-san-diego-marriott-mission-valley/

Marriott International. (2018). SpringHill Suites San Diego Mission Valley. Retrieved from: http://www.marriott.com/hotels/hotel-deals/sansm-springhill-suites-san-diego-mission-valley/

Sheraton Mission Valley San Diego Hotel | Official Website | Best Rates, Guaranteed. (2018). San Diego, CA Hotels | Sheraton Mission Valley San Diego Hotel. Retrieved from: http://www.sheratonmissionvalley.com/

China's addiction to luxury goods. (2014, april 30). Retrieved from The economist: ttps://www.economist.com/blogs/economist-explains/2014/04/economist-explains-17 Hancock, T. (2017, August 2). Shopping no longer the priority for Chinese tourists. Retrieved from Financial times: https://www.ft.com/content/f34c4116-710e-11e7-aca6-c6bd07df1a3c Industry Research San diego. (n.d.). Retrieved from Sandiego.com: https://www.sandiego.org/about/industry-research.aspx Shepard, W. (2016, August 17). The Most Popular Brands For China's Young Consumers. Retrieved from Forbes: https://www.forbes.com/sites/wadeshepard/2016/08/17/and-the-top-brands-for-chinas-young-consumers-are/#2535cc743317 Weisber, L. (2018, February 7). San diego spending $1m to lure chinese visitors. Retrieved from http://www.sandiegouniontribune.com/business/tourism/sd-tourism-china-20180206-story.html: http://www.sandiegouniontribune.com/business/tourism/sd-tourism-china-20180206-story.html

Figuera, A. (2018, Mar 16). Top 100 MICE Hotels in the US. Retrieved May 02, 2018, from Trip Savvy: https://www.tripsavvy.com/top-mice-hotels-in-the-us-3252332

McCallister, T. (2017, Apr 20). Visitors from China and LA Key to Boosting San Diego Tourism, Committee Finds. Retrieved May 02, 2018, from Times of San Diego: https://timesofsandiego.com/life/2017/04/20/visitors-from-china-and-la-key-to-boosting-san-diego-tourism-committee-finds/

San Diego. (2017). Retrieved May 02, 2018, from San Diego Tourism Fast Facts: file:///C:/Users/kk/Downloads/SDTA%20FastFacts2017%20updated%20web.pdf

Tok, A. (2018, Mar 05). San Diego Is Turning to Tijuana to Get More Chinese Tourists. Retrieved May 02, 2018, from Skift: https://skift.com/2018/03/25/san-diego-is-turning-to-tijuana-to-get-more-chinese-tourists/

WTOF. (2017, May 03). Retrieved May 02, 2018, from Tourists from LA, China Boost San Diego Tourism: http://en.wtcf.org.cn/GlobalNews/2017050313262.html

Appendices:

CAPEX

The best case

Room rate

Balance sheet

Income statement

Cash flow

The worst case

Room rate

Balance sheet

Income Statement

Cash flow

number of times interest earned 42736 42767 42795 42826 42856 42887 42917 42948 42979 43009 43040 43070 43101 43132 43160 43191 43221 43252 43282 43313 43344 43374 43405 43435 5.7038964308024829 0 7.2173211152860643 0 10.06655033246015 0 9.6218754042091952 0 10.169287465402583 0 10.719939919092669 0 13.091802903090684 0 12.477817506669176 0 11.161214860232693 0 10.732136233478057 0 9.8772032635624942 0 10.520690717487826 0 10.394739974581576 0 9.9307010132566962 0 11.080502394740765 0 12.181606008243378 0 10.388105390590404 0 12.291309811806792 0 13.616415666455083 0 13.417857228899029 0 11.828868662757792 0 11.586499482401022 0 11.552917680833882 0 12.340512232324077 0

current Ratio 42736 42767 42795 42826 42856 42887 42917 42948 42979 43009 43040 43070 43101 43132 43160 43191 43221 43252 43282 43313 43344 43374 43405 43435 7.3129526014923742 6.8052322824473093 7.3492039496986914 6.1935477403436545 6.7105093843746335 8.3414879975576799 8.6225073141551807 9.0339627607921322 8.3882831232368904 9.4503842542851153 10.274651301010872 12.95997588334906 12.52454878809246 12.755644133909636 15.511736020092176 14.560313109792084 15.18687694366221 18.623762214883982 17.037698218918287 17.272535238008192 22.342330389922697 24.169468549475784 24.414456227628122 28.874943126578355

Quick ratio 42736 42767 42795 42826 42856 42887 42917 42948 42979 43009 43040 43070 43101 43132 43160 43191 43221 43252 43282 43313 43344 43374 43405 43435 6.2576667007979436 5.9040453967892255 6.5226820180425502 5.5085811641439486 6.0663785994159252 7.6273625789239698 8.0017665655977055 8.4649638148626796 7.6929591422428771 8.753209450600826 9.5827055495577849 12.154083196019306 11.814983960653304 12.08489821414091 14.758394243053091 13.922546110630908 14.56525226851938 17.914289009381164 16.447490241431179 16.719958913057951 21.661285039793878 23.470914521386227 23.745601290559009 28.122425060030551

Interest Coverage Ratio 42736 42767 42795 42826 42856 42887 42917 42948 42979 43009 43040 43070 43101 43132 43160 43191 43221 43252 43282 43313 43344 43374 43405 43435 2.216397911876923 3.5681261908827642 6.114907630863585 5.6998660511230232 6.186825566433753 6.6740152314219099 8.7953988643457439 8.23741380860214 7.0180922675647768 6.6329868654147504 5.8642934791654913 6.426472363932934 6.3066732477858531 5.8854277890547397 6.9072976300308122 7.8816235666425225 6.2756672956636637 7.9662962737310012 9.1445911744391069 8.9569123183962187 7.5296056496141848 7.3151195794309682 7.2788971448524009 7.9793015250086778

number of times interest earned

42736 42767 42795 42826 42856 42887 42917 42948 42979 43009 43040 43070 43101 43132 43160 43191 43221 43252 43282 43313 43344 43374 43405 43435 2.5684029661870986 0 4.0202401128783034 0 6.5382865260701895 0 6.1307319046569555 0 6.6180410255676598 0 6.9990142260265262 0 9.0364183817248307 0 8.5484225871422801 0 7.3368768061760026 0 6.86691719147968 0 6.0144864168608034 0 6.7310605444659108 0 6.6395783760242129 0 6.1552191257519491 0 7.2360311174315886 0 8.280859686958836 0 6.5468481378815433 0 8.3938117340735179 0 9.4565470063474066 0 9.3646917364383135 0 7.7903130929237596 0 7.4233192609381353 0 8.0074210047255061 0 9.1200381019837913 0

Quick ratio 42736 42767 42795 42826 42856 42887 42917 42948 42979 43009 43040 43070 43101 43132 43160 43191 43221 43252 43282 43313 43344 43374 43405 43435 6.6014482396197289 6.6798191647250329 6.7547373376224922 4.5207389285956667 4.6780199900529542 5.8545291975082598 5.8933648272531682 6.0631867919234876 3.4468583379139575 4.0923340036400111 4.4868796928629768 6.0773124531436773 5.8334795914946582 5.9282910135554152 7.8062307577449737 7.3622094831134026 7.7493703959190707 10.284571541249449 9.2707472936109276 9.5496384005384094 13.259939497072887 14.638737580593059 14.388527463692524 17.075014020014979

Interest Coverage Ratio 42736 42767 42795 42826 42856 42887 42917 42948 42979 43009 43040 43070 43101 43132 43160 43191 43221 43252 43282 43313 43344 43374 43405 43435 -0.59705002560000009 0.70877088475883765 2.9555952780198202 2.5745746409704293 3.0070960950485652 3.3399385867821101 5.1587593226137765 4.7174660620397795 3.5920962885868399 3.1677521081611939 2.3989571493183721 3.0303915873825904 2.942591207274905 2.5014472709479865 3.4623235531405934 4.3871903205654714 2.8327663164289709 4.4757740508321513 5.4136511017628512 5.3282843077667552 3.9117444205731751 3.5814444385 548279 4.0989771345905623 5.0919835969229412

current Ratio 42736 42767 42795 42826 42856 42887 42917 42948 42979 43009 43040 43070 43101 43132 43160 43191 43221 43252 43282 43313 43344 43374 43405 43435 7.9082713591502651 8.0818162394581368 8.0278742132045551 5.4829743168708767 5.5606603734542839 6.8728155844448677 6.7261251174118364 6.8014599230819544 4.4141571101458084 5.0653148130530168 5.4521320556801047 7.2800193856366393 6.839583371602628 6.8644880174909533 8.9105423768148899 8.2320295956159359 8.589101958930323 11.292566706904635 10.048304202029108 10.259890264727598 14.199213992060214 15.614472516343353 15.278582126399634 18.056824989985309

1