BUSINESS PLAN

2022- 2027

Fusion Hotel and Spa Limited

Contact
The Directors
P.O. Box 21040
Kampala Wavah
Road, Munyonyo
Tel 07529333 905 or 0782199639
Table of Contents
1. Executive Summary
 Introduction
 Brief on the applicant
 Legal status
 Directors/Promoters
 Past Financial performance

2. Market Analysis
 The product or services
 Industry Analysis
 Demand Analysis
 Prices
 Competition Analysis
 Marketing, Sales and Distribution

3. Technical Aspects
 Location
 Existing infrastructure and Assets
 Projected volume of production
 Production process
 Raw materials and labour availability

4. Implementation
 Implementation time table

5. Organization and Management

 Organization Structure
 Management and key personnel
 Manpower schedule and remuneration

6. Financial Aspects
 Total project investment costs
 Source of financing
 Working capital
 Projected Profit and Loss
 Projected Cash Flow

7. Risk Analysis
 Market and Economic
 Political
 Financial
 Other risks if any

8. SWOT Analysis

9. Socio Economic Aspects

 Employment
 Government Revenue
 10. Environmental Aspects
 Key aspects of environmental concern
 Action to be taken by the promoter

11. Final Observation

1. EXECUTIVE SUMMARY
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 1.1 Introduction

As a business and a 4-Star Hotel, attaining a permanent place in the local and
market place is our primary goal. We wish to acquire national and international
repute as an exclusive destination within the next 5 years.We see it as our main mission to
provide high quality accommodation, associated amenities and services at justified prices to our
targeted clients.

Our spa will offer extraordinary wide range of sauna, steam baths and medical therapies,
executed by high end professionals.All our services will be offered in a unique fashion, but
mostimportantly, thebasic business objective will be reflected in everything that we do, which
is, to contribute to the enrichment of the quality of lives of theclients that visit Fusion Hotel and
Spa Limited (FHSL).

Due to the development, hotel management and experience of the Directors, the hotel will be
able to create a high satisfaction level for our clientsand visitors, businesstravellers and the local
economy. Our hotel rooms and facilities including our extraordinary Spa&Health Club will
meet the highest standards of the industry and will enable us to offer a high quality product mix
in a prime location of Kampala City.

Given the wide market and the fact that there is high aggregate demand for quality hotel
services, FHSL will be established.The purpose of this plan is to provide strategic direction to
the promoters, financial partners and other stakeholders towards an efficient and effective
financing, implementation and management of the hotel. It is designed to provide guidance to
the company over a five (5) year period 2022 - 2027.

1.2 Brief on the Applicant

FSHL is an indigenous company limited by shares and dully incorporated under the laws of
Uganda. Overthepastfewyears,thecompanyhasinvestedmassivelyinthehotelandrecreationsector.
The company is in the final stages of launching full scale 4-star hotel establishment at a prime
location in Munyonyo along Wavah Road leading to the CommonwealthResort.The services
in recreation cover swimming pool, gym, sauna bar and beauty parlor. The direct hotel
services include cafeteria, outside catering, events, car-hire, children play centre and more.
Along with other landed properties, the current assets profile of the company includes
executive cars, pickup trucks, lorries, luxurious chairs, public address systems, tents and many
estate items as need in the hotelbusiness.

1.3 Legal Status

FSHL is a legally registered business in the Republic of Uganda with Uganda Registration
Service Bureau (URSB). Our registration certificate number is …………………………....

1.4 Directors/Promoters

The shareholders of the company are all Ugandan businesspersons of good repute. These are:
Ssemwogerere Robert owning 30% shares, Nampijja Theresa 20%, Kato Joseph 10%, Mukiibi
Lawrence 10%, Luyima Michael 10%, Mutyaba Adrian 10% and Ssemakula Mathew 10%.

1.5 Past Financial performance

Not applicable because FSHL is a new company in a new business.

2. MARKET ANALYSIS
According to Uganda Hospitality Institute, Uganda has over 3,000 hotel establishments with
over 20,000and30,000roomsandbedsrespectively.Thenationalaverageroomrateisslightly over
UGX 30,000 ($12) and the annual revenue contribution is over UGX 40 billion ($16M). The
national average room occupancy is approximately 28% with central regional (Kampala, Jinja
and Entebbe) at approximately 50%.The average room and bed occupancy range between 30 -
40%.

The sector employs over 16,000 persons both men and women.The hotel ownership structure is
approximately 90% owned by the private sector as opposed to 10% public aided. Out of these,
68% is owned by domestic private players. The major hotels are Serena, Sheraton, Hotel
Africana, while others are owned by a few individuals and are managed through hotel chains
including the Ruperelia Group, Imperial Group, Marasa Holdings and Geo-Lodges among
others.

2.1 Product or Service

FHSL will offer a wide range of services including accommodation consisting of various
suites (honeymoon, deluxe, business) and rooms (single and double rooms). Each room
includes a bathroom, TV, mini bar, air conditioner and internet access. Several rooms will
have a panoramic view while most other rooms have a garden view. Additionally
we will offer security coded entrance to building and rooms, safety deposit boxes, secure
luggage storage, 24-hour reception and business amenities.

Food Service/Room Service (Grill):Food service is intended to serve a complimentary

breakfast. Room service will offer lunch and dinner to guests, but also will cater to convention
customers during meetings. Due to the nature of our hotel, we will serve healthy foods, and
can even provide a special diet service.

Recreation: FHSL will offer several recreational facilities on the grounds. Facilities available
will include pool and sauna/whirlpool and access to activities in the surrounding area and
other amenities as can be expected of the location. Amenities available within the immediate
area include: walking, hiking, bicycling, parasailing, boating and other water sports, tours of
the city, and many more.

Conference facilities: The hotel will have 5 conference areas/rooms which can be used
throughout the year for meetings, seminars, parties, and corporate gatherings. Seating in our
largest area will accommodate up to 600 persons seated at tables, 1,000 in chairs.
Equipment such as overhead projectors, telephone, fax, copiers, and services such
as securitywill be provided.

2.2 Industry Analysis

The hotel industry is highly diversified in the types of businesses that operate under its
auspices in Uganda. Globally the industry is highly fragmented, with around 20 per cent of the
workforce located within multinational enterprises compared to 80 per cent in SMEs. A few
hotel establishments have a departmentalized structure with top-mangers, middle-level
managers, and supervisors. Majority of hotels have a single manager executing all the
functions and activities of the hotel. As for classification, there is no recognizable
classification system. The hotels are currently referred to as luxury; mid-range and budget
facilities mainly based on room price tags and self-class awards. Possible parameters used
include size, perception, service quality, price, and comparison with others. Majority of hotels
do not meet the international standards of excellence with regard to design and service
standards. Some offer little value for money. Popular hotels in the central region generally
offer acceptable services to their clients and those in protected areas such as parks are
perceived as good but expensive with lessvariety.
Looking at the industry labor prospects; the labor market for country’s hotel sector has
brighter prospect than ever before, characterized by; labor mobility, increase in skilled labor,
labor diversity, non-traditional markets and others. Much has to be pursued to make such a
prospect, a reality (actions for improvement). Actions for improvement can/have to be
undertaken at industry level by government and at individual enterprise level all aimed at
enhancing labor force and ultimately productivity and sector wise profitability.

In conclusion, the hotel sub-sector labor market in Uganda is generally unique and its analysis
and improvement must utilize a multi sector – multilayer approach. From the labor market in
the local township through to national and cross boarder levels. Any delay in the improvement
of Uganda’s hotel sector labor market will hamper the overall sector yield and directly affects
Uganda’s image. Losses of all kind are also being registered at enterprise level because of
human resource problems.

2.3 Demand Analysis

FHSL is considered to be appropriate to be set up in Munyonyo area because it fits with the
character of other city hotels, usually to accommodate guests whose aim is for business or
service. The location is conduciveand easily accessibleto offices or businesses in the area
andwill have a substantial demand; the price/rates will be affordable.Demand for the hotel
business is also directly tied to or influenced by “outside” parties including travel agents,
internet sites and booking online.

Others are economic and demographic analysis, population and retail sales, employees’
characteristics, major businesses and industry, highway traffic and airport arrivals, service
availability. Number of rooms, food and beverage facilities, meeting facilities, recreational
and retail amenities, physical condition andfunctionality to mention but less.

2.4 Prices of the product

In the hotel business, there is an overall tendency to consider the competitive offers as
well as the degree of acceptance by the customers when planning a pricing strategy.
FHSL will follow this tendency. The services will be priced at parity with or at a slight
premium over competitive offerings. Extensive promotional activities, including daily and
holiday specials, help to ensure that customers perceive that they are receiving higher quality
products and prompt, courteous service in exchange for the slight premium in price.
2.5 Competition
The identity of FHSL will be made clear by its architecture, interior and exterior design, the
decorations and furnishings that will reflect a modern technical environment. The exclusive
Spa & Health Club with a beautiful backyard as social meeting area will contribute to the
extravagance of this special hotel in order to withstand competition.

We will have to embrace competition in the hotel industry which is healthy for market. In a
competitive marketplace, up-to-date information can make a difference between keeping pace,
getting ahead, or being left behind. We shall also use a smart intelligence operation as an early-
warning system for disruptive changes in the competitive landscape, or a rival’s new product or
pricing strategy or the entrance of an unexpected player into the market.

2.6 Market, Sales and Distribution Strategy

Marketing, sales and distribution of the hotelservices and products will be a key strategic
function in this industry. The business growth is as good as the product volumes (services) sold
in the market. It is therefore the key determinant of profitability and or return on investment,
which FHSL will capitalize on. A multi-pronged market penetration and sales strategy is going
to be vital for the success of the hotel business.

With a first priority, we will sell the biggest share of our services in the central region with
clients mostly from the districts of Kampala, Mukono, Luwero, Wakiso and Masaka and a
lesser exstent countrywide. In this way, marketing costs can be efficiently leveraged and well
managed. After securing the high potential national market, the second stage will be to explore
regional markets from Kenya, Rwanda, South Sudan and DRC.
3. TECHNICAL ASPECTS
3.1 Location
The Hotel will be located at Munyonyo in Kampala, Uganda

3.2 Existing Infrastructure and Assets

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3.3 Projected Volume of production

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Key facts of the premises

 2900 m² property
 600 m² backyard Garden
 1,050 m² of hotel rooms, featuring at least 30 m² per room
 35 luxury Deluxe Rooms and Suites
 400 m² Spa & Health Club
 800 m² Function rooms, reception, public area etc.
 Ample parking facilities will be made available

3.4 Production process

3.5 Raw materials and labour availability

4. Implementation

4.1 Implementation time table

The table below shows the implementation timetable of the investments and other activities
especially procurement of key equipments, HR recruitment and launch of operations among
others.

No. Items to be Procured Timelines in Months

Jan Feb March April May

2022 2022 2022 2022 2022
1. Contractor

2. Hotel Equipments

2. Vehicles

4. Flexography Machines

5. Plastic Raw Materials

6. Other Assorted Machines

7. Furniture, Equipment & Fittings

8. Machines Installation

9. Human Resource Recruitment

10. Two Motor Vehicles

11. Arrangement of site location

12. Launch of Operations

5. Organization and Management
The company will have its activities divided, organized and coordinated in various ways from
the Board of Directors (BODs), management and all staff who will play different roles.
Organizational structure of CBC is shown below:

5.1 Organization Structure of CBC

Board of Directors

General Manager

Finance & Admin Production Sales/Marketing Manager

Manager Manager

Accountant Hotel Staff Sales Executives

Store Keeper Security Guard

Cleaners Drivers Cooks

5.2 Management and Key Personnel
The Hotel will have a well established human resource policy to handle the planned
investment. Key among the facets of the policy is an underlying dogma that all jobs should go
to indigenous persons and should be well-paying. In general the staff shall be placed into three
different categories: Administration/Management, Guest Services and Maintenance/Support
staff. Administration positions shall range from managers to secretaries. Guest services staff
are maids, waiter/waitress and cooks. Finally, the support staffs to maintain the hotel are
electricians, plumbers, gardeners and cleaners.

Managers will have wide range of duties than other members of staff. The Managing Director
will deal with the finance and staffing issues surrounding the hotel, while General Managers
will have more flexible list of duties, which could include working in any area of the hotel.
Executive Housekeeper will be responsible for the smooth running of the guest rooms. The
Front Office Manager will be responsible for guest reservations while the Restaurant Manager
would be in charge of the foods and drinks provided by the hotel. The Convention Manager
will be employed to coordinate all activities relating to meetings, these will include meeting
with the guests to ensure that the required schedule is correctly planned.

Managers will have a variety of assistants, whose job descriptions will depend on the hotel's
expansion overtime. It shall be the role of the Assistant Managers to employ and arrange the
training of new staff, supervise staff and organize the running of their departments like
ordering of supplies. Managers and Assistant Managers could have a personal assistant and/or
secretary to do secretarial duties.

Guest Services Positions

Unlike the managerial side, the Guest Service human resource will have various qualifications.
Therefore, their roles are ideal for apprentices. Cashiers, doorman and receptionists are some
of the few jobs that will be available. The biggest employees of the hotel shall be the
housekeeping department and the food service department. A worker could be employed by
the hotel as an apprentice in the kitchen but after a few years with hard work and perseverance
could find themselves as a Chef for example or even a Head Chef in charge of the complete
service of food and drinks.
5.3 Manpower Schedule and Remuneration - Monthly

Management Staff Nos. UGX USD Total USD

Managing Director 1 12,000,000
General Manager 3 27,000,000
Executive House Keeper 1 3,600,000
Front Office Manager 1 2,800,000
Restaurant Manager 4 8,000,000
Convention Manager 1 1,900,000
Assistant Managers 6 9,000,000
Chef De Party 1 6,000,000
Head Chef 1 2,500,000
Marketing Manager 1 8,000,000
Purchasing Manager 1 7,000,000
Concierge 5 3,000,000

Administration Staff    
Secretaries/ Personal Assistants 12 14,400,000
Cashiers 6 5,400,000
Doormen 4 3,200,000
Waiters/Waitresses 8 4,800,000
 Housekeepers 46 13,800,000
Front Desk Clerks 7 4,900,000
Maintenance 48 21,600,000

Others    
Porters/Cleaners 24 12,000,000

 Total  

6. FINANCIAL ASPECTS

6.1 Total Project Investment Costs

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6.2 Source of Financing

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6.3 Working Capital

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6.4 Projected Profit and Loss

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6.5 Projected Cash Flow

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7.0 RISK ANALYSIS

No business is without risks. This Plan is based on the strong assumptions that the Hotel
will make profits; thereby more investment funds will be available for expansion into
other product portfolio. It is also further assumed that there will be no major business
interruption either due to the global financial meltdown or market dynamics or further
lockdown due to COVID19 pandemic. Lastly, we hope that FHSL will grow from
strength to strength to withstand any future risks.

7.1 Market Risks

The capacity to generate cash flows from the hotel business is subject to general
economic, market, competitive, regulatory and other risk factors, many of which are
outside the Company’s control. For example, our competitors can cut prices of their
products or a key customer cancels a major contract. Another competitor may introduce a
new, better product or service at a lower price. FHSL shall have contingency plans to deal
with the market risks.

7.2 Political and Economic Conditions

We must be cognizant of the risks like decline in economic growth that could decrease
demand for the hospitality industry, potentially reducing profitability hence reducing cash
flows. For example, an economic crisis decreases the purchasing power of customers and
negatively affects the financial condition and creditworthiness of customers. Further
economic risk can arise from new unforeseen regulatory requirements like rise in taxes
that can negatively impact on sales and the industry's growth rate drops. Operational costs
can exceed our forecasts; hence sales projections would not be achieved.

7.3 Financial Risks

The ability to meet the financial obligations and provide for planned growth depends on
the Hotel having access to adequate sources of working capital. Other financial risks are
lack of working capital to enhance operations of the hotel, underestimating costs;
overestimating the growth of sales; and or fast growth which may not be properly dealt
with by the hotel in the short term.

8. SWOT ANALYSIS
For the hotel business to prosper a SWOT analysis will be able to position the business to
maximize its strength, leverage on the opportunities that will be available, mitigate the
risks and be well equipped to deal with the threats.
 STRENGTH:
 Vast experience of Directors who understand how to grow the business
 Creative and innovative management crew
 A new brand entering the hospitality market
 Good location with adequate space available for expansion
 Present lowered costs for construction
 Positive focus on job skills training/internships/job creation endeavors
 Increased unemployment figures will provide optimal opportunity for full staff

WEAKNESS:
 Lack of well-developed marketing network
 Strong competition from well-established hotels
 Finding qualified personnel can be a tedious task
 Need for increased staff and marketing skills
 Increased risk management issues

OPPORTUNITIES:
 Cheap and locally available labor force
 Offer excellent value for money
 Established Board of Directors with community members
 Job creation and skills training brings hope and economic uplift to community
 Specific catering for conference needs, complimentary breakfasts and room
service available

THREATS:
 Economic downturn due to COVID 19 pandemic
 Unfavorable government policies and taxation
 Strong competition from well established hotels in the area
9. SOCIO-ECONOMIC ASPECTS
Uganda’s hospitality sector has been steadily growing over the last two decades especially
the Small and Medium scale Enterprises (SMEs). SMEs like FHSL present the greatest
opportunity to generate employment, increase productivity, generate taxes for Government
coffers and stimulate economic growth in the country. The favorable macro-economic
environment has enabled various economic activities to flourish and improved people’s
livelihood country wide, although the COVID 19 disruptions has heavily and negatively
impacted on the sector since 2020.

Government is committed to full opening of the economy starting in January 2022 and
provision of favorable environment to allow the private sector to provide employment
opportunities to Ugandans. The private sector likewise enjoys a healthy dialogue with
Government over policy through umbrella bodies/lobby groups such as Private Sector
Foundation Uganda (PSFU), Uganda Manufacturers Association (UMA), the Uganda
National Chamber of Commerce and Industry (UNCCI), Uganda Tourism Board as well as
Uganda Hotel Owners Association.

9.1 Employment
FHSL will provide direct employment to over 200 workers. Indirectly, the hotel will
contribute incomes to companies supplying raw materials and foodstuffs. Overall, we
anticipate providing direct and indirect employment to thousands of people going forward.

9.2 Government Revenues

Government of Uganda tax systems administered by Uganda Revenue Authority (URA)
includes 30% corporate tax, 17% Value Added Tax (VAT), Customs and Excise duty and
stamp duty. Other statutory levies are National Social Security Fund (NSSF) and Pay-As-
You-Earn (PAYE). As a law-abiding company, we shall pay the required levies/dues to URA
as by-law to avoid any penalties and interest on non-compliance. URA conducts routine
audits and investigations of taxpayers throughout the country.

10. ENVIRONMENTAL ASPECTS

A hotel is an environmentally sound industry because not much waste if any is generated that
can adversely affect the environment. However, FHSL will maintain a proper waste disposal
system to mitigate against any environmental threat to society.

10.1 Key aspects of Environmental Concerns

Waste Water
The quality and quantity of the plant effluent can fluctuate significantly as it depends on the
various different processes that take place within the hotel such as raw material handling,
product preparation among others.

By-Products
By volume the largest proportion of the operational waste is organic by-products from the
hotel. Other waste water will be disposed-off in a suitable manner.

10.2 Mitigation Actions

FHSL shall mitigate environmental concerns through purchase of raw materials, lubricants
and auxiliary materials as far as possible in reusable bags, and or returnable containers. Any
hazardous materials will be properly stored before being disposed-off in a responsible
manner. We shall ensure that the hotel premises are kept as clean as possible to avoid any
contamination to both the hotel guests and the community at large

11. FINAL OBSERVATION

This is a viable and worth capital-intensive business undertaking and the required
investments is profitable. The risks associated with the business can be mitigated in the short
term so as to build a strong foundation for future growth. Nonetheless, the higher the risks,
the higher the returns on investment, hence the faster the business growth. Besides, the
business will create direct and indirect employment to thousands of people. It will also
generate the much-needed revenues to the Government coffers.

Lastly and most importantly, the plan is designed to guide the company in its business
establishment processes and seeking for investment financing from prospective financial
institutions. Success will however, entirely depend on the consistency, commitment and
objectivity in implementation to the letter by the BOD, Management and all stakeholders.

A prominent businessperson once said: “My job gets difficult in two situations: when the
business goes very badly and when the business does very well. FHSL is positioning itself to
contend with either of the two situations whichever may arise”.