3. Holiday Inn Express Hotel & Suites RIVERPORT-RICHMOND 10688 No.6 RD, Richmond, BC V6W 1F7 Hotel Front Desk: 1-604-2411830 | Hotel Fax: 1-604-2411840
4. Holiday Inn Founded by Kemmons Wilson in 1952 Franchised 1,405 inns around the world by 1972 Created the standard for inns and became the standard Holiday Inn Express InterContinental Hotels Group in 1991 Offers rates for both business and leisure travelers
8. Customer Business Profile Trend Analysis The industry is in a better situation than the overall economy Support from the Government of Canada’s Renewable Energy Deployment Initiative “Clean Energy Dialogue” -- PM Harper & US President Obama Contributed to the increasing awareness and installation of geothermal systems within North America
9. Customer Business Profile Trend Analysis Real estate market is on a steep slide in B.C. Geotility needs to sustain business and minimize capital expenditure effects Financial Confidentiality policies: Geotility’s profit margins and costs cannot be disclosed However, it is believed that Geotility is financially stable
10. Customer’s Goal & CSFs Goal Be the leader of the industry by providing the highest quality products, technical knowledge, and services to clients Minimize overall costs without affecting product and service quality CSFs Cut down administration costs by receiving cost-effective rates from hotel suppliers
11. Opportunity Profile Geotility currently has numerous local projects in progress E.g. BCIT Aviation Technology Campus, The Lotus (both in Richmond) Geotility’s needs: To temporary transfer talent from main branch in Kelowna to Richmond in order to complete projects A cost-effective, comfortable, and convenient hotel to stay in
12. Compelling Event Geotility has to act now to accommodate employees and to facilitate the company's numerous ongoing commercial and residential projects If Geotility does not act now or delays action: A significant rate increase in hotel costs Operations may be affected (e.g. expenses) Holiday Inn Express can provide Geotility with: the Corporate Rates Program free facilities – wireless internet, a complimentary hot breakfast, room-suites, parking location convenience – 10 minutes drive from Geotility's Richmond office Air miles rewards
20. Unique Business Value Holiday Inn Express just renovated in 2008 Holiday Inn Express is closer to Geotility’s office in Richmond Close to business parks (i.e. Ironwood Business Park, Crestwood Corporate Center) Corporate Rates Program helps customer to save and add strategic value to business
21. Financials Short-term Revenue (counted monthly) $109 per room night Total average expected returns of $160 15-20 room nights per month Monthly room night revenue = $1,635 - $2,180 Expected monthly return = $ 2,400 - $ 3, 200
22. Financials Long-term Revenue (counted annually) 175 room nights per year $ 135 per night charged in summer season, $ 109 in winter season 88 * $135 = $ 11, 880 87 * $109 = $ 9,483 Revenue per year = $ 21, 363
23. Financials Profit Margin Approximately $25 - $30 in expenses per room night The profit margin is expected to be $79-$84 This deal is important as it can be profitable for Holiday Inn Express The risks in terms of business venture and the rates itself are low The risk of Geotility using our competitors’ hotels is high
27. Our Goal Renew the Corporate Rates Program agreement Increase the likelihood of Geotility staying with us Add more tailored services to help secure future business Help Geotility to cut costs with minimal side-effects on service quality Long-term Gain: Future revenue from business with Geotility as they are expected to expand in the near future
28. Competitive Strategy Flanking – Solution AND Reputation Strong reputation Strong inside support from Geotility Strong solution fit
29. Our Critical Success Factors Add new amenities & services E.g. microwaves and kitchen amenities within rooms, fax machines, low roaming rates, and other business-friendly facilities to better serve the specific needs of our clients
30. Our Critical Success Factors Further understand who Geotility is and what they are about Interview Geotility executives who have previously used the Holiday Inn Express By doing this, we can increase Holiday Inn’s responsiveness and empathy as well as give tangibility to our services