Magsaya Hotel

Business Plan

Submitted to the Faculty of Hospitality Management

University of Eastern Pangasinan

Binalonan, Pangasinan

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 Executive Summary

MAGSAYA hotel, it is a “nature hotel” hotel that makes you feel at home and

welcome and help you to forget certain problems that you have in a while, it

offers (25-40 rooms) accommodation, serve exotic and unique Filipino

delicacies and a budget friendly hotel. Magsaya Hotel will be located San Juan

,La Union, Pangasinan. We all know that la union is the best among the best

place here in Pangasinan; it is known for the surfing capital of the north

Luzon. This would be suitable for the all types of tourist. The hotel will be

convenient located to have direct access to the beach. Our strategy will allow

us to communicate the values and local suppliers and to identify the needs of

our guest. The competition of every hotel is an important factor to success.

The Magsaya hotel will target revenues about 500,000 pesos to 700,000

pesos in the first year of operation with the net profit after tax 250,000 pesos.

The Magsaya Hotel will require an initial funding of 4.5 million in order to

cover the capital investment for land, building and equipment’s. The net cash

will remain a point of concern until the initial funding is paid back to the

investors. Magsaya hotel would be partnership by (group natin) We both

agreed that the Magsaya Hotel will be managed by us as we prepared this

business plan. It will take a massive responsibility and effort in order to have

the greatest outcome of this business.

The Magsaya Hotel will be committed and dedicated to provide its

guest with the quality of our room’s still simple and nature environment. It

will value the place in the community within and will cooperate and work to

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develop the relationship and to respect nurture, preserve and protect the

environment. The Magsaya Hotel will continuously strive to make creativity in

diversity toward the business owners, and people in the community. And

showing or exposing the native’s products of La union in tourist industry. The

one objective of this business is to help the community and people in order to

develop human resources and physical infrastructure and improvement in

conservation of natural resources.

The Hotel will offer value and benefits to our clients, over and above

the standard of our facilities and affordable rates. We provide our guests with

an ideal service, and level of recognition that they have come to rely upon.

We will provide to our guest with an old fashioned style, relaxing environment

within which to conduct vacations and that our hotel customers would not be

able to find to other hotels competitors.

This business plan is truly made in order to create changes in the

community, you’ll see the step by step process on how we build this business

and all about the hotel business from what is our inspirations to style of the

hotel, services, food and drinks, and where it is located and ways on how to

go at the hotel. On how we market our business, people who are responsible

for the business and also on how we spend the money and what our aims

and goals to this business.

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 Chapter I

Introduction

On this chapter, we will elaborate the contents of our vision and mission and

perspective in hotel, we will show here our goals and execution that we’re

going through, we will also discuss about our concept, availability of our

services and on how to map and locate our hotel.

Company Description

It is related to Nature environment because the furniture’s are made

by woods which is offer (25-40 rooms), convenient located to have

direct access to the beach. It will offer a relaxing environment for not

only international tourist but also for the local people looking for a nice

place to spend the weekends or short vacations. It will also serve

Filipino delicacies with the collaboration of local native food business

like adobo, sisig shrimp, sugar cane and etc. The MAGSAYA hotel has

an acronym M for manageable, A for affordable, G for glamour, S for

satisfying, and for other information AYA means lets go, lets enjoy and

have fun, lets relax. This hotel is Unforgettable one, because of the

good service, food, cleanliness and staff attitude and also the place. A

short history about la union, the province was created on March 2,

1850, out of towns then belonging to Ilocos Sur and Pangasinan.

Luciano Almeda headed the provincial government for the time during

the Philippine Revolution, while General Manuel Tinio occupied San

Fernando in May 1898. After the battle on November 19, 1899, the
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 American troops took control of the province. In 1901, a civil

government was established in La Union. A year later, La Union ceded

a narrow strip of land to Amburayan, which later became a sub-

province of the old Mountain Province.

https://www.islandsproperties.com/places/launion.htm

Branded Cover

Figure 1

Magsaya Hotel Business Logo

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Concept

We define room as safes closed by walls, windows and doors, to spend

a night or a day to sleep. The styles that we want to make in our Hotel from

front of the hotel, back of the hotel, lobby, rooms, comfort rooms and the

dining area are made in variety of woods and metals that could help the

woods to remain stable.

Menu/Services Offered

Below there are sample of Foods and Drinks Menus that will make your

tummy full and thought to come back to visit again our hotel and refer to

other.

Figure 1

Magsaya Hotel Sample Menu

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https://www.facebook.com/LantawFloatingNativeRestaurant/photos/

pcb.1801557983268064/1801557099934819

Location with Vicinity Map

Magsaya Hotel is located at San Juan La union, surrounded by the city

of San Fernando la union that not so far and in heading to San Juan, La Union

you’ll see every barangays has banner or a sign that could help heading to

San Juan and that has convenient road, perfect for those who has own

vehicles and also it will took 5-7 hours like from manila depending on traffic.

Figure 3

Magsaya Hotel Vicinity Map

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Perspective

Figure 4

Magsaya Hotel inspired Perspective

The Magsaya hotel will target revenues about 500,000 pesos to 700,000

pesos in the first year of operation with the net profit after tax 250,000 pesos.

The Magsaya Hotel will require an initial funding of 3.5 million on in order to

cover the capital investment for land, building and equipment’s.

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 Chapter II

Market Overview

Marketing is a set of process that is very vital of every business, all the

activities in business or other organization pursues to attract and retain

customers. Gathering information about potential customers, choosing the

types of products to offer, setting prices, making products available to

consumers and promoting products through advertising are all key aspects of

marketing. Marketing strategies are the basic guiding form to follow to

achieve the marketing goals.

Marketing and Publicity

These are the following marketing and publicity that the Magsaya

Hotel will be used in promoting the Hotel.

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 Social medial- we all know that social media nowadays are

literally on demand like Facebook, twitter, and Instagram etc.,

Figure 5

Magsaya Hotel FB Page

 Advertising in television and radio people want information from

reliable source so we choose this in promoting in our hotel especially

for the people who do not have any social Medias account.

 Banners/ Billboard in highway and flyers this is to notice for those

people who do not have time in social media and

watching televisions.

Figure 6

Magsaya Hotel Sample Banner

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Comparison of the Product and Competitors

Competitions are inevitable but it is an important factor of every

Hotel to success. Every hotel has a lot to offer for their

potential customers sometimes they almost have the same offers but

it is already depend on them on how to attract customers in

order for them to be chosen.

There are few Hotels competitors which are the Little Surfmaid

hotel and Resort, the Circle Hostel, and the Cv Bed N Bath Hotel this 3

hotels offers the same accommodation and delicacies and for travellers

to have fun but what makes the Magsaya Hotel distinct from them and

must visit.

The Magsaya Hotel has its own uniqueness because of the place

and Vibes of the hotel. But what Magsaya Hotel differ from them, we

have affordable cost of food and rooms, has good location surrounded

by a lot of trees and easy to locate and also accessible since it is along

the highway the customers would easy to get a transportation.

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 Chapter III

Management Team Business Structure

In making a business is that not simple you have to be well prepared

to the struggles that going to face it and sometimes the other part of the

business will become more difficult to control and managed. Having lack

of adequate knowledge sometimess make you realize, am I capable of

operating of this kind of business? Am I flexible of managing this

business? Those thoughts would have in your mind that you’ll need to

study or have research from bottom to top.

Business structure will represent what kind of business ownership we

have. Magsaya hotel would be partnership by Mr. Jerryco V. Nanalis as

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 General Manager and Ms. Aila mae Caberoas Executive Manager. We

both agreed that the Magsaya Hotel will be managed by us as we

prepared this business plan.

Having an advantage and disadvantage has a huge significant in every

business. Knowing the advantages and disadvantages will lead and assist

the business to analyze and understand that conducting a business isn’t

easy and simple, some of the advantage and disadvantage might cause

of delay or fast progress of running a business, having a positive mind

and creating solution from the problem could make the business

successful.

Here are the Advantages and Disadvantages:

Advantages:

 more ideas

 Bringing their skills and experience

 Sharing of risk

Disadvantages:

 Sharing of profits

 Transferring of partnership

 Liabilities

The Organizational Chart has role in every business in order to

organize everything.

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 Figure 6

Organizational Chart

General
Manager
Human
resources

Executive
manager

Director of Director of Director of

Operation Finance Business

Maintenance Information
Sales Marketing
and system and
manager manager
housekeeping manager
manager

Duties and responsibilities

Every department has its own roles in the hotel from General

Manager to staff.

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 General Manager – its duties such as planning, training staff, hiring,

discipline employees and solving problems.

 Executive Manager – its task is to executing wide policies of

every department, and ensuring that every department should

perform their duties without any problem.

 Human resources – it is one of the important department in this

business, its duties is to implementing good relations to employer

towards the employees and vice versa, they also responsible for

interviewing, safety and health of every individual and also giving

the right information of what are their benefits in the business.

 Director of Operation – improving the facilities operational

efficiency, coordinate staff development activities and create

productive working environments, providing solution and ensuring

compliance of rule.

 Maintenance and housekeeping manager – its responsibilities

is to ensure the cleanliness of rooms, laundering bed linen and

maintaining furnishing and other equipment.

 Director of Finance – its role is to overseeing all financial

activities, reporting on revenue, training accounting staff,

budgeting, disbursing funds to departments, managing risk,

implementing policies, and improving financial processes.

 Information system and manager – its duty is to ensure that

the data or information entering the hotel files including the hotel

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 transaction of customers like for booking or cancellation of

booking.

 Director of business – its duty is to recommending ways to

improve operations planning, attending meetings with clients and

advisors, and notifying partners of key business developments and

also to increase company revenue by identifying profitable

business opportunities and developing long-term business growth

strategies.

 Sales manager – its tasked is to develop and foster business

through direct sales, marketing, telemarketing, direct mail,

appointment calls and tours of the hotel. Also develops strategic

action plans for hotels to drive measurable, progressive sales

revenue.

 Marketing manager – its task is to maintain the awareness of

the factors that might influence the hotel an d gain deeper

understating of the needs and wants of the customers and also for

coordinating marketing and promotional activities to meet guests’

needs. And of course closely working with the other hotel staff to

ensure guests are satisfied with the facilities and their time.

Operations

Operations are the day to day activities of every business. Giving

smile on the faces of our customers is a big achievement for us to

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 say that we did or we give our best customer service.

Our hotel is 24 hours open and the staff has a shifting hour from

5am to 2pm for AM shift, 2pm to 10pm NIGHT shift and 10am to

6am for GRAVEYARD shift.

Safety management (new normal)

Safety is the condition of being protected and avoiding from

various illnesses. Customer and staff is a must observe and

maintain the rules in terms of safety, now that we are facing a

severe illness which is the COVID-19. Here are the things that we

must do.

In Hotel:

 In hotel every room must have a sanitizer and strict sanitized

before and after using it.

 In food, we will deliver the food right at the door of the room to

eliminate interaction.

 Must have a social distancing signage and a sanitizer in very

corner of the hotel to eliminate the viruses.

 Every room is only available for 2 people only.

For employees:

 Employees must wash and sanitize their hands every after

20minutes at all times.

 Ongoing Employees training in good health practices.

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  Employees must do social distancing.

 Employees must wear face shield and face mask.

For customer:

 Customer should wear face mask and face shield before entering

the hotel even while inside the hotel.

 Customer must follow the social distancing 2 meters away before

checking in and while inside the hotel.

 Signage and rules must follow by the customer inside the and out

the hotel.

 Customer should sanitize their belonging before entering the hotel.

Chapter IV

Financial

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The Magsaya Hotel will require enough capital to start the business.

Before commencing the business will have to think about the expenses

that we spend to establish the business. The table below it indicates

the tentative prices to spend for the utilizations in our business.

ITEM’S COST

Permit PHP, 25, 000

Electrical PHP, 100, 000

Interior PHP, 200, 000

Infrastructure and structure PHP, 3,000,000

Mechanical PHP, 150,000

Lot PHP, 1,000,000

Furniture’s and fixture’s PHP, 500,000

Conclusion

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 Hospitality management is an important thing in every country’s

economy. Hospitality management is a huge profit-generating industry

of some progressive country. It is accountable for a major portion of

the national economic growth. Different factors of hospitality industry

bring foreign visitors, which open millions of doors of opportunities for

the country, Cultural exchange, foreign collaborations, and

employment opportunities for local people.

As a conclusion, all the employees of per department of the

hotel and also the owner have its own duties and responsibilities that

must do. We are convinced that our business plan could create a

successful and recognize in the hotel industry.

We would like to conclude that this hotel business would have a

lot of opportunities to local towards to international in order to obtain

more revenues, and to help the community of la union.

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