Hotel development project carried out in areas close to intermodal hubs - completion of business plan. An international hotel company has decided to enter the Italian tourism and hospitality market. The Group's strategy, as it did in other countries where it operates, is the creation of structures near connection points between intermodal hubs. The development plan foresees the opening of five new hotels, even of different placement and consistency in the vicinity of the following hubs: - 3 airports (with more than 5 mln pax /year) - 3 ports (with more than 2 million pax/year) - 2 railway stations In order to conduct studies in the area, define the right placement of structures and evaluate the overall feasibility of the initiative, the group engages a specialized company. The project has been carried out by a group of MTM 6 students in cooperation with the consultancy TEH Ambrosetti.

1. 1 BSMART&INNOVATIVE

2. Introduction: product and services Target Analytical framework Excluded destinations Selected destinations: analysis and highlights Investment Plan Hotel data 2 Index

3. 3 Introduction This project is based on a real case: an international hotel chain decided to invest in Italy opening five hotels in five different locations. Due to discretionary policy, some of the locations chosen for this analysis differ from the real project. The aim is to launch a new combination of product and services, as a reaction to the complex situation of Italian hospitality sector.

4. Strong focus on low-cost culture, following its great success in foreign markets 4 Introduction The project is innovative asitaimstobring in Italy the realmeaningof the low-cost market whichisnottobeperceivedassomething LOW QUALITY butas the attentiontobasicservicesoffering HIGH QUALITY

5. 5 Introduction LOW COST IS NOT LOW QUALITY

6. 6 Concept This project envisions a new idea: creatingnewhotelsclosetostrategichubs, offeringanessential and standardisedproductfordifferentsegments

8. Breakfast (on payment)

9. TV

10. Wi-Fi

11. Parking

12. VendingmachineStrategic position 7

13. Index Introduction: product and services Target Analytical framework Excluded destinations Selected destinations: analysis and highlights Investment Plan Hotel data 8

14. 9 Target profile BUSINESS LEISURE Interested in a strategiclocations so toeasilymovearound Theypayattentiontoa goodquality standard service and wi-fi and parking availability Interested in stayingnexttomainattractionsites Theypayattentiontoreasonableprices

15. Index Introduction: product and services Target Analytical framework Excluded destinations Selected destinations: analysis and highlights Investment Plan Hotel data 10

16. Analyticalframework/1 Airports: Milan-Malpensa, Rome-Fiumicino, Venice-Tessera Seaport: Olbia, Naples, Genoa Railwaystations: Bologna, Milan, Mestre

17. 12 The criteria examined are the following: Geographical position Socio-economic background Distances from main attraction sites Tourist flows Potential development of the area (infrastructures) Competitors (the hotels within 10km with more than 50 rooms) Others Analyticalframework/2

18. Index Introduction: product and services Target Analytical framework Excluded destinations Selected destinations: analysis and highlights Investment Plan Hotel data 13

19. 14 The 4 excludeddestinations

20. Index Introduction: product and services Target Analytical framework Excluded destinations Selected destinations: analysis and highlights Investment Plan Hotel data 15

21. 16 The selecteddestinations Milan (via Lepetit) : railway station Milan-Malpensa : airport Rome-Fiumicino : airport Mestre ( via ca’ Marcello) : railway station Venice-Tessera : airport

22. 17 Milan (via Lepetit)

23. Milan (via Lepetit) Malpensa 50 km Fiera Rho-Pero 10,6 km Linate 9 km 18

24. Milan (via Lepetit) Highway Milan-Brescia 7,8 km Highway Milan-Turin 11 km University Bocconi 4 km Railway station Cadorna 3,5 km University statale 2,7 km University Iulm 5,6 km City centre 3 km 19

25. 20 Milan / Generaltrends Demographictrends Milano Socio-economic background Source: demo.istat.it

26. 21 Milan TouristFlows Source: osservatorio turismo Milano

28. 24 platforms

29. 600 trains per day

30. 320.000 pax per day

33. 2015: Expo will take place in Rho exhibition with an expected number of 20 million visitors

35. 25 Milan (via Lepetit) Le Méridien Gallia 650m Hotel Michelangelo 450m Starhotels Splendido 700m Una Hotel Century 350m Albergo Auriga 500m Hotel Cristallo 400m Hotel Andreola 400m Hotel Mediolanum 200m

36. 26 Milan-Malpensa

37. 27 Milan-Malpensa University Insubria 10 km Highway E62 7 km University Liuc 14 km A8 Highway (autostrada dei laghi) 20 km Fiera Rho-Pero 30 km City centre 45 km

38. Malpensa / Generaltrends Demographictrends Somma Lombardo Gallarate Busto Arsizio Varese Socio-economic background Source: demo.istat.it

39. 29 Milan TouristFlows Source: osservatorio turismo Milano

41. Malpensa will recover and increase air traffic in the next yearsAnalysisofMilan-Malpensa/1 * Source: Sea-Aeroporti

43. 2015: Expo will take place in Rho exhibition with an expected number of 20 million visitors

45. 33 Malpensa-competitors Crowne Plaza Milan Malpensa Airport 850 m Holiday Inn Express Milan Malpensa Airport 750 m Hotel Villa Malpensa 1 km First hotel1,3 km

46. 34 Rome-Fiumicino

47. 35 Rome-Fiumicino Rome-Termini 41 km Highway (autostradaazzurra 26,3 km Highway A90 33 km Fair of Rome 7,3 km Highway Fiumicino-Rome 8,9 km

48. Rome / Generaltrends Demographictrends Fiumicino Socio-economic background Source: demo.istat.it

49. 37 AnalysisofRome-Fiumicino/2 Passenger traffic + 29% * Source: Adr-Aeroporti di Roma

50. 38 Rome-TouristFlows EBTL.it -ente bilaterale turismo Lazio

52. The project of the new“Porto della Concordia” in Fiumicino represents the top in termsofqualityofservices in the fieldofitalian and no italiantouristichubs. Itis the largesttouristichubofEurope, a kindofsustainablehubAnalysisofRome-Fiumicno/3

53. 40 Rome-Competitors

54. 41 Rome-Fiumicino Hotel Mach 2, 15 km Hilton Garden Inn Rome Airport Hotel ‎1,7 km Courtyard by Marriot 3,5 km Hilton Rome airport hotel 500 m Hotel Euro House 3 km Seccy Hotel 4,2 km

55. 42 Mestre (via Ca’ Marcello)

56. 43 Mestre (via Ca’ Marcello) Highway A57 2 km Marco Polo Airport 12 km European Institute of Design 5 km Venice 10 km University Ca’ Foscari 12 km

57. Mestre / Generaltrends Demographictrends Mestre Socio-economic background Source: demo.istat.it

58. 45 Mestre-Touristflows * Source: comune.venezia.it

59. 46 Analysisof Mestre/1 Strategic position: Gate to Venice It is an important alternative for tourists that want to visit Venice without spending a lot of money. Mestre is well connected to Venice Mestre is the last railway station on dry land before reaching Venezia Santa Lucia station, located in a lagoon. It takes 10 minutes to reach VeneziaSanta Lucia by train. Trains to Venice leave every 15 minutes. Mestre railway station is a very important hub for passengers and goods, with more than 35000 pax per day

60. 47 Analysisof Mestre/2 FUTURE DEVELOPMENT Improvement of the traffic mobility through the construction of bridges and underpasses to free the city centre and the tangenziale (highway) by the congestion Mestre will be one of the railway stations of the Corridor n°5, part of the Pan-European transport corridors, one of the biggest project of the European Union. The corridor n° 5 will connect Lisbon to Kiev, passing through Mestre Italy will have a strategic role in connecting and integrating those countries that entered the EU in 2004.

61. 48 Mestre-Competitors

62. 49 Mestre Quality Hotel Delfino Venezia Mestre 1 km Best Western Hotel Bologona 400 m Hotel Plaza 400 m Hotel Tritone 300 m Hotel Mondial 1,5 km Hotel Lugano 1,4 km

63. 50 Venice/Tessera

64. 51 Venice-Tessera Venice –Tessera Airport 2 km A4 highway Venice-Mestre 154 km Santa Lucia railway station 15 km University Ca’ Foscari 15 km City Centre 12 km

65. Venice / Generaltrends Demographictrends Venice Socio-economic background Source: demo.istat.it

66. 53 TouristFlows

67. 54 AnalysisofVenice-Tessera/1 Passenger Traffic 2000-2009 + 102% * Source: Marco Polo airport

69. Venice still remains one of the most appealing tourist destination

70. Venice airport system including Treviso is the third Italian biggest one after Rome and Milan-Malpensa in terms of passengersAnalysisofVenice-Tessera/2

71. 56 AnalysisofVenice-Tessera/3 FUTURE DEVELOPMENT “Quadrante Tessera”: project of a new green area, withsports and leisurefacilities New transport system (tram su gomma) High speed network (railway) New areasfor social housing

72. 57 Venice-Tessera Venice-Tessera Hotel Ducale 4,7 km Annia Park Hotel 3,3 km Titian Inn Hotel 3,6 km Hotel Venice Resort 3,7 km Courtyard by Marriott 3 km

73. 58 Venice-Competitors

74. Index Introduction: product and services Target Analytical framework Excluded destinations Selected destinations: analysis and highlights Investment Plan Hotel data 59

75. 60 Investmentplan

76. 61 Investmentplan Assuming the creation of a hotel chain and the feasibility of the investment, the size of each hotel may be no smaller than 120 rooms. The hotels’ capacity ranges from 120 to 150 rooms Every room has 14 sqm

77. The options for the hotel managers are two: pay the 4% of total investment as minimum guarantee, or pay 50% of total GOP 62 Management Agreement

79. Building costs

80. Security

81. Urbandevelopment and planning

82. Authorizations/licenses

83. Market valueof the area (e.g. Milan via Lepetitis in the city center)

84. The complexityconstruction ( e.g. Mestre lies on water)Investmentplan

85. Index Introduction: product and services Target Analytical framework Excluded destinations Selected destinations: analysis and highlights Investment Plan Hotel data 64

88. the rooms’ costs

90. 69 Operatingcosts

91. 70 Total GOP