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Project Analysis
Student's Name
Institutional Affiliation
Course Name and Number
Instructor's Name
Assignment Due Date
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Introduction
Sweet House, also known as the Sweet House, is located 1814 19th Street North in
Arlington Avenue in Bessemer, Alabama, United States of America. Sweet House. is part of the
properties owned by the city of Bessemer. Sweet Home Alabama is a landmark in Bessemer,
Alabama, located at Arlington Avenue and 19th Street South. Henry W. Sweet, Bessemer's first
undertaker and furniture merchant, was the house's initial owner. Although it shares its name with
the most popular southern rock song of all time is completely coincidental, Alabamians welcome
the association.
The house, which was built in 1906, is remarkable in that it combines Queen Anne and
Neo-Classical architectural styles. It stands on a corner in a remote portion of downtown Bessemer,
with its double-entry façade, octagonal tower, and imposing columns evoking its past grandeur.
During its construction time, Sweet House on Arlington Avenue was on a corner property and had
dramatic dual entryways, one facing Arlington and 19th Street South. The fluted columns support
the porticos. There are wraparound porches on the first and second storeys, and one of the corners
features an octagonal corner tower. The home, which cost $10,000 to build, was temporarily used
as an event centre in recent years. The Alabama Historical Association has designated the Sweet
Home as a landmark, and a memorial was placed in 2006.
The Sweet House has stood at 1830 Arlington Avenue for more than a century, as Bessemer
City council flourished, busted, and revived around it. Sweet House has a literal title on the
historical plaque outside. Still, it is a designation applied only after releasing the renowned Lynyrd
Skynyrd song, which drew history enthusiasts and tourists. Recently, Sweet House is also
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attracting filmmakers. For example, Sweet House was used to filmmaking and shooting in the
"Truth or Dare" TV movie. Sweet House is currently being utilized as a venue for events. Sweet
House currently can be potentially used as an event centre, workforce development centre,
community services facility, and bed and breakfast inn.
This paper will offer an insightful analysis of Sweet House - 1814 Arlington Avenue
especially considering its potential use as a bed and breakfast inn, such as the Savannah Bed &
Breakfast Inn in Savannah, USA. This paper aims to determine the viability of the Sweet House 1814 Arlington Avenue endeavour. This feasibility study provides more information about the
Sweet House building, its location, local market area, and competition. The report provides data
about Sweet House market conditions in Bessemer, which can be used to forecast future occupancy
levels and pricing. Considering Sweet House as a bed and breakfast inn, this paper analysis will
help answer several marketing questions such as:
1. What are the industrial bed and breakfast trends occurring around Sweet House in
Bessemer?
2. What are the strengths and weaknesses of the Sweet Home location?
3. What are the major competitors of Sweet House in Bessemer?
4. What are the local visitations and economic trends favourable to Sweet House?
5. What are the potential market segments available for bed and breakfast in
Bessemer?
6. What are the average room rates and occupancy levels that could be potentially
achieved?
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This plan aims at establishing the feasibility of the Sweet House bed and breakfast hotel's
venture successful outcome. The study aims to determine opportunities with the highest potential
for fresh business enterprise in Bessemer, Alabama. This feasibility study offers more detailed
information about the proposed location, meals in the menu, and the contractual plans. The study,
therefore, comes with a detailed financials' list, which includes: Expenses of operation, Start-up
cost, Forecasting, and Income statements. The financial analysis is followed by the marketing
analyses breakdown for the business enterprise. The feasibility was analyzed for a prospective
operation of a bed and breakfast restaurant. The analysis comprises a start-up plan that outlines the
operation costs at the initial and the subsequent stages and the efforts needed to market the venture
towards its mission realization. The study's objectives are to understand the necessary inputs
needed to run the business venture in the most effective way to make the hotel a reality (Moyer
and Pantel, 1984). This will help to establish knowledge, interest and growth in the long term.
Name of Legal Structure: Sweet House and bed and breakfast inn
Having a unique name is crucial for this business enterprise. The unique name will help
show the venture's uniqueness and make it as popular as we can. Other than the exceptional
restaurant's name, "Sweet House and bed and breakfast inn ", having unique beds that are well
customized make it attractive for people to not only love the food but the accommodation. I believe
that this will brand the hotel as a place to get very nice meals, including breakfast, nice
accommodation and the results being ultimate satisfaction for our clients. The name came across
because the Hotel will be branded and well known for its nice and really comfortable beds and the
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nice breakfast that's offered. The business's unique selling proposition will be included in the
business advertisements, brochures, and marketing campaigns.
Description of the Business
Mission
The mission for the business enables a company to achieve the set business goals
consistently, reinforce positive long-term relationships with clients, partners, stakeholders, and
increase profitability. Sweet Houses house bed and breakfast hotel mission may be as follows:
sharing our food and offering luxurious accommodation while delivering a superior customer
service and dining experience.
Vision
Sweet Houses house bed and breakfast hotel's vision is to positively impact the customer's
experience while providing them with classy meals, drinks and accommodation. It also aims to be
the go-to hotel in the country.
Business Purpose
Many of the operational facilities of bed and breakfast establishments are similar to those
in large hotels, only that it is on a smaller scale and with fewer barriers to entry. Recently there
has been an increasing demand for bed and breakfast facilities in the United States and other
regions of the world. The name of the business will be "Sweet House bed and breakfast." It will
operate as a standard bed and breakfast service with seventeen rooms and additional facilities such
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as social halls, a fitness room, a self-service room and a business centre. The aim is to provide an
unforgettable experience for clients such that they leave the Hotel and have an urge to come back
and recommend their friends, family and business associates. Thus, this will be an investment to
enhance our referral system. Accommodation at Sweet House will comprise seventeen
comfortably furnished rooms, each having queen-size beds, for the clients' pleasure.
Additionally, two cots will be available for family groups or in cases where there are
overflows in bookings. When it comes to a full breakfast, guests should have a variety of meals
and drinks (Lee et al., 2003). They may choose from this menu: Toast, French toast, Pancakes,
Fruit juice, Waffles, Fruit salad, Bacon, Sausages, and Kippers. Apart from bed and breakfast,
other activities that will be available to guests include drinks (Beverages, Wines, and non-alcoholic
drinks), a self-service laundry room, gym and fitness, and a mini-mart. In addition to common
areas, all rooms will have a separate living space that will enable guests to have a comfortable
place to spend their leisure time on their own. The products and services will be offered to the
satisfaction of the clients' needs. A large percentage of bed and breakfast business will come from
repeat clients and recommendations made by family and friends (Lee et al., 2003). As a result, a
good first impression will ensure that the business is successful in the long term.
Local Market Area
Sweet House bed and breakfast hotel will operate in Alabama, specifically in Bessemer.
Therefore, the hotel will target all people who are seeking comfortable accommodation and an
environment that is fresh and social. However, to make it so specific for the hotel here is a
description of the ideal client for the business:
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1. They are either in the top middle-class or high-end class, who earn between 150,000 and
500,000 dollars every year (AL Real Estate Market Data, 2021)).
2. They are people who travel and look for nice places to dine and stay the night while
accomplishing their intended purpose, whether in business, tourism, travel and more.
3. They are constantly travelling into Alabama state and constantly have activities in the state,
whether business or personal.
4. They are people who are looking for an experience of their life when travelling into the
country.
Therefore, here is just a description of the people who could fit into the circle, keeping in mind
that the Hotel is enhanced to meet their needs independently.
Segmentation of the Market
The target of the market strategy works on developing a home for the people looking for a
place to spend their time, vacations and moments. According to Hsu & Powers (2008), the strategy
of marketing is founded on the high performance of the areas below:
1. A beautiful location.
2. Quality facilities and fittings.
3. Exceptional Services to the customers and clients.
Generally, the target market is divided into two segments; "Drop-ins" and "Vacationers".
The key marketing opportunity is selling to the segments of the target markets available in
recreational needs and vacations.
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Drop-ins
Drop-in customers willing to spend a night in the hotels are welcomed to the several
available rooms in the hotel. However, the hotel expects a few drop-ins.
Vacationers
During the summer and spring months, the Sweet House bed and breakfast area offer a
beautiful zone of retreats with over fifty hiking centres and other outdoor recreational activities
(outsourced from the Hotel for serving clients' needs).
Potential Clients
Business people
Business people, particularly those travelling into the country, or those under business
activities like conferences and forums, are major potential customers of Sweet House bed and
breakfast hotel. They mostly look for a one-time experience that makes Hotel bed and breakfast a
special experience for them, such that they want to dine in the place again, and they make it a goto hotel while in Bessemer.
Families
Families that would like to go on a night out are visiting Bessemer City and Alabama and
would like a nice experience to sit together with the family and enjoy their family time together.
The hotel will also have a well-designated area for family dinners. All kinds of families will have
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friendly services and accommodative menus to satisfy their needs. However, the adults are the
ones to enjoy the hotel services in most cases.
Blissful Couples
Sweet House bed and breakfast hotel will have an atmosphere that is sophisticated with
intimate romance. These couples are generally very successful but balanced. The beautiful layout
and decor will attract the Singles in the hotel, excellent services and outstanding quality of food,
and the ambience in the hotel.
Tourists
The hotel will be a perfect home for hosting both domestic and international tourists
visiting Bessemer as there are several key tourist attraction sites and destinations in the area. Some
examples of tourist's destinations near the proposed Sweet House bed and breakfast location
include:
1. North Bessemer Diamond Railroad Crossing is located 0.5 miles and 3 minutes car drive
away from Sweet House location
2. Watercress Darter National Wildlife is located 2.3 miles and 6 minutes car drive away from
Sweet House location
3. Alabama Adventure & Splash Adventure is located 4.9 miles and 15 minutes car drive
away from Sweet House location
4. East Hueytown Diamond Railroad is located 5.0 miles and 12 minutes car drive away from
Sweet House location
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5. Autobahn Indoor Speedway & events located 5.4 miles and 11 minutes car drive away
from Sweet House location
6. Park at Ros Bridge located 6.1 miles and 12 minutes car drive away from Sweet House
location
7. Russet Woods Park is located 7.6 miles and 16 minutes car drive away from Sweet House
location
8. Hirani Park is located 10 miles and 17 minutes car drive away from Sweet House location
9. Lover's leap is located 11.6 miles and 20 minutes car drive away from Sweet House
location
10. Blue Ridge nature trail located 12.2 miles and 22 minutes car drive away from Sweet House
location
11. Park at Ross Bridge located 12 miles and 6.1 minutes car drive away from Sweet House
location
Sweet House bed and central breakfast location to the above tourist attractions sites and
destinations would make the house a perfect and ideal lodging and restaurant location to host
Bessemer's domestic and international tourists.
College Students
Several learning institutes and colleges are surrounding the proposed Sweet House bed and
breakfast, which would attract many college students to the hotel. College students are likely to be
Sweet House bed and breakfast's potential clients. College students and youths living around
Bessemer are likely to visit Sweet House bed and breakfast to dine, adventure, part-time
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employment, learning purposes, dates, trips, and as a getaway place. Some of the learning
institutions and colleges surrounding Sweet House include Miles College, Lawson State
Community College, Brown Mackie College, Virginia College, and Fortis Institute.
Potential major competitors
Bessemer's bed and breakfast restaurants act as major market competitors for Sweet House
bed and breakfast hotels. Examples of some bed and breakfast hotels and restaurants within
Bessemer is shown in the table below.
Table 1
Summary of Sweet House bed and breakfast hotel's major competitors
No. Bed and Breakfast restaurants
and hotels
1.
Renaissance Birmingham Ross
Bridge Golf Resort & Spa
2.
Holiday Inn Express & Suites
3.
Comfort Inn Bessemer
4.
Red Roof Inn & Suites
5.
Quality Inn Bessemer
6.
Motel 6 Bessemer
Rates
($)
169
Distance of separation
Class
6.4 miles
4 Stars hotel
159
100
89
86
78
5.4 miles
5.5 miles
5.7 miles
5.4 miles
3.6 miles
2 Stars hotel
2 Stars hotel
2 Stars hotel
2 Stars hotel
2 Stars hotel
Marketing Promotion
Website
The creation of a website for Sweet House bed and breakfast hotel is needed to capture
more customers. Today, the internet is part of us, and the shift in people to adapting the internet
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makes it necessary for the Hotel to have a website. The website will thus display more information
about the restaurant such as the location, mission statement, Food menu and drinks menu, how to
book reservations and FAQ (Frequently Asked Questions page), among others. It will also be ideal
for the target clients, mostly travellers and people who book reservations and make distant
bookings. An app will also work in tune with the website.
Social media platforms
Social media platforms such as Facebook and Instagram will act as a public profile on the
social platform to help publicize and share the restaurant's products and services to over 30 million
users of Facebook. It displays key detail of the hotel like location, directions and hours of
operation. The idea behind this is that many people are embracing the internet. Also, Facebook
helps us join hotel forums and groups to understand their needs and wants and stay in tune with
other competing businesses and identify what they have that we could update and innovate on.
Flyers
Flyers effectively market Sweet House bed and breakfast because they are easy to read,
simple, and cheap. Flyers display important information about the business, the address, phone
number. The flyers will be distributed across Bessemer City and target market places and
destinations such as Bessemer's tourist destinations, colleges and learning institutions, train
stations, and hang out joints for tourists, business people and other target market individuals.
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Analysis Summary of the Market
The Sweet House bed and breakfast strategy of the market are aimed at forming a firstchoice destination for all travellers, including business people, couples, families, those seeking
vacations, and places to relax will be targeted for the hotel. The hotel will be customized to be a
natural destination people's choice by the setting and the available facilities.
Organizational Chart
The Sweet House bed and breakfast will require several qualified work staff for it to operate
effectively. The following is a list of some of the essential working personnel that will guarantee
effective management and success of Sweet House bed and breakfast:
1. General Manager/ Dining Manager
2. Bookkeeper
3. Kitchen Manager or Head Chef
4. Assistant Cook/Line Cook
5. Hotel Hostess
6. Waiter/Server
Financial Considerations
Sweet house bed and breakfast will be developed using the Small Business loans, and 20%
of the funds coming from the buyers. The first capital start-up is estimated in the following startup table for the expenses used to operate the business available. We expect an average fixed cost
every month comprising the mortgage payment and operating expenses as shown in the financial
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plan below. A significant impact on the earnings for every month is expected to result from the
peak and off-seasons. As Sweet house bed and breakfast, our market position among other patrons
makes the revenues for the off-season for that time.
Start-up Summary
Heavy investments will come from Mr Toraine Norris, our client. Sweet House bed and
breakfast will be developed using the Small Business loan and a down payment from the owner of
the property, the city of Bessemer. The following are the summaries for the estimated start-up
funds for renovating and developing Sweet House bed and breakfast:
Table 1
Estimation of Sweet House bed and breakfast hotel start-up funds
Funds
Assets to Fund the venture
$43,175
Start-up Expenses
Overall Funds needed
$63,033
$106,208
Assets
Cash Requirements from the time Start-up
Non-cash Assets from the time Start-up Cash
raised by cash
Starting Date cash Balance
Total value of Assets
$18000
$25033
$205,582
$223,582
Capital and Liabilities
Liabilities of the longterm
$232, 000
Current Borrowing
Bills
$0
$1,047
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Interest free Current Liabilities
The total value of Liabilities
$744
$233,791
Capital
Investment planned for the Venture
Owner
Investor
Investment needed in addition
The total value of the Investment
$78,000
$0
$0
$73,000
$0
Expenses to Startup
The overall price of the Capital
($64,175)
$14,325
Overall Liabilities
$248,616
Total Funds
$317,791
Table 2
Estimation of funds for starting up Sweet House bed and breakfast hotel
Enterprise Start-up
Venture Necessities
Expenses necessary for the start up
Start Up
Stationery. Lodge Setup
Down payment of property
Venture Necessities
Bronchus
Lease to the Property closing
Insurance
Direct-Tv
Total Expenses at Start-Up
$75
$2300
$200
$58,000
$75
$600
$1,300
$500
$200
$63,175
Assets to start up
Cash Needed
$18,900
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Inventory for a start-up
Assets of the long term
Current Assets (Others)
Assets overall amounts
Bronchus
Lease to the Property closing
$00
$15,206
$9,827
$43,033
$600
$1,300
Total Requirements
$106,208
Predictable Cash Flow
The projections of the cash flows are drawn in the following table. The predictions have
been assumed to be with generation income factors taking the outcome with the more weight (Felix
et al., 2008). There is no requirement to invest in any added capital to the enterprise while healthy
cash flows are considered.
Table 3
Projected cash flows for Sweet House bed and breakfast for three consecutive years
Money Received
Cash from Operations
Sales cash
Operations Subtotal Cash
Cash Received in addition
VAT, Sales Tax, HST
Received
Current Borrowing
Free Interest liabilities
Liabilities in the long term
Asset sales
Assets sales in the long
term
Current Investment
Year 1
$
Year 2
$
Year 3
$
151,394
151,394
915,000
915,000
1,022,000
1,022,000
00
00
00
Nil
Nil
Nil
00
00
Nil
Nil
00
00
00
Nil
Nil
Nil
00
00
00
00
00
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Overall earned cash
151,394
915,000
1,022,000
2,4000
78,649
81,349
00
257,000
357,192
608,192
268,000
407,641
673,641
00
00
00
00
00
00
00
12,000
30,000
30,000
00
18,000
00
Expenditure
Operations Expenditure
Spent cash
Payment of bills
Overall operation cash
Cash Spent, in addition,
HST/GST, VAT, Sales Tax
Paid Out
Principal
Current
repayment on loans
Principal
Refunds
liabilities (refunds)
Long-term
Liabilities
Principal
Refunds
Current Assets purchase
(others)
Long-term
Assets
purchasing
Dividends of to the profit
Subtotal Cash Spent
00
20,000
784,641
00
93,349
00
676,192
30,000
21,000
Net Cash Flow
Cash Balance
58,044
281,627
238,808
520,435
237,359
757,794
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References
AL Real Estate Market Data (2021). BESSEMER, AL REAL ESTATE & DEMOGRAPHIC
DATA. Retrieved 19 November 2021, from
https://www.neighborhoodscout.com/al/bessemer
Felix, D., Broad, S., & Griffiths, M. (2008). The bed-and-breakfast experience: An analysis of
hosts’ and guests’ expectations. Global cases on hospitality industry, 55-77.
Hsu, C. H., & Powers, T. (2008). Marketing hospitality. John Wiley and Sons.
Lee, S., Reynolds, J., & Kennon, L. (2003). Bed and Breakfast Industries. Journal of Travel &
Tourism Marketing, 14(1), 37-53. http://dx.doi.org/10.1300/j073v14n01_03
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Appendix
Figure 1
Sweet House location
Source: https://www.google.com/maps/place/Sweet+House/@33.4014032,86.9507387,15.5z/data=!4m5!3m4!1s0x0:0x8798e6974a1e61ea!8m2!3d33.39994!4d86.9494355
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Figure 2
Sweet Home outside view
Source: Street Vie and 3600
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Figure 3
Tourists’ destinations around Sweet House
Source: https://www.google.com/maps/search/tourist+places/@33.3529802,87.1043459,11z/data=!3m1!4b1!4m8!2m7!3m6!1stourist+places!2sSweet+House,+1830+Arling
ton+Ave,+Bessemer,+AL+35020,+United+States!3s0x8888de29c8f6f791:0x8798e6974a1e61ea
!4m2!1d-86.9494355!2d33.39994
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Figure 4
Learning Institutions and colleges around Sweet House
Source: https://www.google.com/maps/search/college/@33.4564969,86.866159,11.5z/data=!4m8!2m7!3m6!1scollege!2sSweet+House,+1830+Arlington+Ave,+Bess
emer,+AL+35020,+United+States!3s0x8888de29c8f6f791:0x8798e6974a1e61ea!4m2!1d86.9494355!2d33.39994