SEVEN ELMS RESORT
65000 Windy Lane Dr.
Traverse City, Michigan 49865
The Seven Elms Resort outlines how it will provide quality hospitality services, cost-effectively, in a popular northern U.S. lake resort environment. This plan successfully raised capital for property acquisition, renovation, and company start-up related costs.
- EXECUTIVE SUMMARY
- COMPANY SUMMARY
- HOTEL & LOUNGE OVERVIEW
- MARKET ANALYSIS
- COMPETITIVE ENVIRONMENT
- STRATEGY & IMPLEMENTATION
- PROMOTION STRATEGY
- FINANCIAL PLAN
- RESUME
Executive Summary
We seek funds for the acquisition and renovation of Seven Elms Resort, an adult-marketed, 17-room "boutique style" hotel specializing in a couples' "getaway" to provide relaxation and recreation in Benzie County, a popular tourism spot located next to the state of Michigan's Lake Michigan. Moderately priced between the high-line hotel properties and the older motel strips, Seven Elms Resort shall fill an affordability niche not presently available in Benzie County.
Combined with an on-site lounge, grill, poolside beverage service, and morning continental breakfast bar, we are seeking investment funds to renovate the hotel building, build-out a piano bar/lounge area with dance floor, and construct an outdoor pool adjacent to the indoor pool. With this refurbishment and other new amenities, Seven Elms Resort will form the basis of a highly profitable hotel venture. We are seeking funds to develop and expand the business in a phased approach, as highlighted within this document.
Seven Elms Resort's owner, Steve M. Blackburn, has an extensive business background, including over 14 years of experience developing a variety of businesses. Mr. Blackburn received his B.A. in Business Economics, and currently is an M.B.A. candidate at the University of Michigan. Desiring to return to his own business, he wishes to establish Seven Elms Resort, Inc. in 1999.
The foundation for the plan is a combination of primary and secondary research, upon which the marketing strategies are built. Discussions and interviews were held with a variety of individuals involved with other similar businesses to develop the proforma data, review the market potential, and competitive situation.
Renovation in the Prairie Style period, our hotel's design elements and furniture will reflect this "organic" approach and provide an overall comfortable experience. Seven Elms Resort shall specialize in meeting an individual or couple's needs. As growth warrants, the 10-acre site would allow for future expansion of the lodging portion of the resort (Phase II).
Business Plan Purpose
Introduction
In today's highly competitive environment, formal business planning is an essential element in achieving business success. A well-written business plan is primarily a communication tool used to obtain financing. In certain instances, particularly with our early stage company, this business plan also serves as a strategic plan.
Considering that lenders are inundated by numerous investment opportunities from which they choose only a few, this business plan describes our story and how we intend to grow. Seven Elms Resort, Inc. management team has made an in-depth analysis of its opportunities and weaknesses and it has concluded that the company has an excellent chance to succeed.
Methodology for Business Planning
Sophisticated business planning helps management answer questions, such as: What will be our record of achievement? How have we fared compared to our competitors? Are we setting realistic and attainable goals and objectives?
Constructive and useful business planning requires a broad-based understanding of changes taking place in the marketplace in which the company competes, or plans to compete, and the ever-changing financial markets. In-depth technical skills in a variety of disciplines such as financial analysis, sales and marketing, latest technology, and managing growth are critical components in assessing a company's opportunities and risks.
Developing the Business Plan
The management of Seven Elms Resort, Inc. has developed this disciplined planning methodology to help the company anticipate its start-up costs and other critical information to arrive at this realistic plan.
Guidance from Outside Professionals
Mr. Blackburn has sought legal assistance and advisors to develop the Seven Elms Resort concept. Steve will maintain an active management involvement in every aspect of daily resort operations. This plan reflects his vision.
Five Objectives of Seven Elms Resort, Inc.
- Attract $1.4 million mortgage/investment capital;
- Focus ideas and establish goals;
- Identify and quantify objectives;
- Track and direct growth;
- Create benchmarks for measuring success.
The business of Seven Elms Resort, Inc. is the creation of and funding of an adult couples' 17-room hotel, specializing in a "getaway" atmosphere to provide relaxation and recreation in the Greater Benzie County/Lake Michigan area. Management is soliciting commercial finance partners who share its vision and desire to participate in this exciting business opportunity in the resort community of Benzie County, Michigan. The integration of these disciplines results in extensive and innovative services, set in a unique Prairie Style surrounding for our prospective guests.
Ideal Property Location
The preferred location is a 10-acre parcel with 8 acres of woods. Of the 18 rooms, 3 are executive suites, with Jacuzzi tubs, and one of them will be converted to an onsite manager's apartment. Each room has individual climate control, direct-dial phones, and televisions. The facility has a large main lobby area, indoor pool/Jacuzzi/sauna, lighted tennis court, 2-car garage, storage shed, ample parking, and all equipment necessary for operation of the motel. The separate onsite manager residence and meeting room complex will serve as a future lounge/grill space. The grounds are beautifully landscaped.
The motel is located in the motel district of Benzie County and is situated on 9.43 beautifully landscaped, wooded acres. Approximately 7 of the 9.43 acres are wooded and undeveloped, which creates an opportunity for significant expansion or potential for an entirely new enterprise.
This facility consists of one building, built in two phases: a 22- and 15-year-old two- and one- story wood frame 18-unit motel and manager's/owner's apartment, which when combined, total approximately 14,787 square feet of living area. The 18-unit motel includes a lobby with a fireplace, reception area, storage area, laundry room, bathroom, meeting rooms, a balcony, 18 room units, a men's and women's bathroom, kitchen, a whirlpool/sauna room, an indoor swimming pool, and mechanical room. The motel has a partial basement and includes a laundry room with two washers and two dryers.
The manager's apartment (future piano bar and basement bar/meeting room area) offers a living room, kitchen, dining area, family room, half bath, and gift shop on the first floor with 3 bedrooms and 2 baths on the second floor. The home has a concrete block basement that is partially finished with a recreation room and a 3/4 bathroom.
The exterior is cedar and the roof is pitch and pebble. The building is seated on a poured concrete and a concrete block foundation. Interior walls are concrete block and drywall. The flooring is carpet and ceramic tile. There are casement windows and wood storms and screens. There is a basement area under the living quarters and a portion of the motel.
Other improvements include a 2-car garage with 2 electric door openers. A detached storage shed is located to the rear of the manager's apartment. Land improvements include a blacktop driveway and parking lot with 23 parking spaces, concrete sidewalks, a lighted tennis court, street signage, and beautiful landscaping with a mature variety of trees and shrubs.
Mechanical systems include five gas hydropic, two gas forced air furnaces, electric baseboard heat, individual heat, and central air for each unit; 120-gallon hot water heater, 600-amp electrical service, intercom system, two central vacs, water softener, sump pump, 4-camera security system, cable television, smoke alarms, and telephone system.
Mission Statement
Seven Elms Resort, Inc.'s mission is to provide quality hospitality services to our guests in a comprehensive and cost competitive manner, providing the finest accommodations in Benzie County, Michigan.
Company Business Plan Objective
This business plan serves to detail the direction, vision, and planning to achieve our goal for providing superior and comprehensive hotel and lounge services. Our plan objectives are:
- Attract $200,000 bridge loan to secure $1.4 M property mortgage
- Focus ideas and establish goals
- Identify and quantify long-term expansion
- Track and direct growth
- Create benchmarks for measuring success
Seven Elms Resort shall fill a niche not presently available, namely a moderately priced (under $130 per night, summer rate) resort. Combined with an on-site lounge, a grilled food service, an indoor and outdoor pool bar, and a morning continental breakfast offering, we shall differentiate ourselves by becoming a "boutique style" resort versus simply another motel. With the construction of an outdoor pool adjacent to the present indoor pool/whirlpool/sauna complex and our other refurbishment and new amenities, Seven Elms Resort will form the basis of a highly profitable venture set in a Prairie Style environment.
