Establishment of the "Easy Hotel"in Madrid

Résumé du document

EasyHotel is a chain of ‘no frills' hotels run by the privately held conglomerate EasyGroup. We chose to base our research on such a hotel chain as we feel the low cost concept hospitality sector is an important growing sector. EasyHotel is a novel and exclusive concept; we have all been attracted by this ‘super budget' concept. Youth, in general, would prefer to stay in an EasyHotel while traveling somewhere. Usually, cheap hotels are old, poor, and not really pleasant. However, EasyHotel is the total opposite: it is modern, comfortable, and attractive.

Furthermore, we chose EasyHotel as it is part of the EasyGroup. With the backing of such a mammoth conglomerate, the hotel chain can always count on it to cover its back in case of financial instability. We also chose the European city of Madrid regarding the establishment of the hotel as it is a tourist hotspot and a city familiar to each member of our group.

Mission Statement:
EasyHotel is a "no frills super budget" hotel operator with hotels located in South Kensington, Victoria, Paddington, Heathrow, and Earls Court, London, Luton, Basel, Zurich, Budapest, Larnaca, Berlin, and Dubai. Booking options open to guests are either via the company website or directly at the hotel. Rooms are priced on the basis of how early one books the room; the earlier the booking is done, the less you pay with periods of high demand costing more than less popular periods (Yield Management).

Generally, prices are cheap relative to the traditional hotels. While rooms are generally small, they do vary in size; guests have to pay extra to occupy a room with a window or more space. Rooms contain a double bed; wall panels are generally orange in color with the corporate logos featured on the wall and doors. Toiletries (except soap/shampoo) are not supplied and the use of TV and housekeeping facilities comes at an additional charge.

We chose EasyHotel as low cost hospitality is an important growing sector. Owing to the affordable accommodation offered by EasyHotels, clients have the opportunity to travel and visit major cities on minimal budgets.

We could like to open an EasyHotel in Spain, in Madrid, as it is a city that attracts tourists from across the globe. Apart from the numerous global companies located in the city, Madrid is a veritable cultural cornucopia. Indeed, the city boasts many major museums including El Prado or Reina Sofia. So, people visit Madrid for purposes pertaining to both business and pleasure.

Internal rivalry is emerging as a sore point for the EasyHotel owing to the presence of other international chains of "super low budget" or "no frills" hotels such as Formule 1; the hotel chain also faces mounting competition from independent hotels such as youth hostel (Hostal in Spanish) and cheap Bed & Breakfast (B&B). As these competitors too offer low prices, their customer base is massive. Thus, competitive intensity poses a formidable threat.

Tags: EasyGroup, EasyHotel in Madrid, Hospitality sector in Spain

Extraits

[...] Differentiation & the 4 P's Product EasyHotel is a cheap hotel operator. It is a subsidiary of Easygroup. Rooms contain a double bed, and one wall panel is orange in colour with corporate logos on the wall and doors. Toiletries (except soap/shampoo) are not supplied and the use of the TV and the housekeeping facility is at an additional charge. Rooms are very small, about 7m2 per room. Place Guests can only book an easyHotel on the website Easyhotel.com and directly at the hotel. [...]

[...] - All the 11 EasyHotels existing are based in Europe. - All the competitors like Accor and Ibis are already established in Madrid. - The Easy Group is already looking for franchisers to settle in Spain b. Entry mode and growth strategy To open an EasyHotel we don't have any other choice than franchising it. The Easygroup propose to private individuals to franchise an Easyhotel and benefit from all the advantages that it brings. It gives us the benefit of running our own business, but also gives us the advantages of Brand recognition, Brand marketing, A reservations system. [...]

[...] Positioning Implementation 10 a. Franchising 10 b. Differentiation & the 4 P's 11 c. Particularities of finance and accounting 13 d. logistics & supplies 14 e. Payments and collections, Risk management and Asset protection 15 f. Governance and Human resources 17 g. Cultural aspects to note Setup costs, three year budget forecast and estimated financial results 18 Conclusion 20 Sources 21 Introduction Easy hotel is one of the Easy group's field. We chose a hotel for this project because we think that it is an important growing sector, specially for low cost ones. [...]

[...] He is the handy man of the hotel. Franchise fees: - 30 once (entry fee year - and of the annual turnover Cars: - Year we buy one shuttle (10 + gas and maintenance - Year 2 and gas and maintenance Utilities: - We hire a dry-cleaner company and a housekeeper company Loan: - loan for the construction - The interest is This is the evolution of our cash position a period of 3 years : This is the occupancy per months of EasyHotel in Madrid : Conclusion EasyHotel is a frills super budget” hotel operator depending on EasyGroup. [...]

[...] Of course the company is affected by the slow down demand so they have decided to open few new hotels this year. But the figures are good, well ahead of what the market is doing: the occupancy rose from 90 to 94% while in this market is decreasing, and the average rate increased from 38 to 40 euros. d. SWOT of Easy Hotel and 2 of his competitors Easy Hotel Hotel F1 Etap Hotel 3. New international growth strategy a. Location comparative advantage analysis We plan to settle the hotel in Europe either in Barcelona, Madrid or Brussels. [...]