Table of Contents
List of Tables .............................................................................................................................................................................. 2
List of Figures............................................................................................................................................................................. 2
1. Executive Summary .......................................................................................................... 3
2. Business Overview ............................................................................................................ 7
2.1 Introduction .......................................................................................................................................................................... 7
2.2 Mission Statement .............................................................................................................................................................. 7
2.3 GreenStay Hotel & Suites Overview ........................................................................................................................... 7
2.4 Goals ...................................................................................................................................................................................... 7
2.5 Regina Hotel Industry ....................................................................................................................................................... 8
3. Operations Plan ................................................................................................................ 8
3.1 Location................................................................................................................................................................................. 8
3.2 Site Plan ................................................................................................................................................................................ 9
3.3 Building Floor Plan ......................................................................................................................................................... 10
3.4 Room Floor Plans............................................................................................................................................................. 11
3.5 Average Business Actions ............................................................................................................................................. 13
3.6 Environmental Initiatives............................................................................................................................................... 16
3.7 Environmental Certifications........................................................................................................................................ 18
3.8 Supply Analysis ................................................................................................................................................................ 20
3.9 Service Providers.............................................................................................................................................................. 20
3.10 Capital Budget ................................................................................................................................................................ 21
3.11 Operating Expenses....................................................................................................................................................... 22
4. Human Resource Plan .................................................................................................... 23
4.1 Organizational Structure ................................................................................................................................................ 23
4.2 Training Programs ........................................................................................................................................................... 24
4.3 Human Resource Costs .................................................................................................................................................. 24
4.4 Human Resources Strategy ........................................................................................................................................... 24
5. Marketing Plan............................................................................................................... 25
5.1 Industry Trends ................................................................................................................................................................. 25
5.2 Competitors ........................................................................................................................................................................ 26
5.3 Consumers .......................................................................................................................................................................... 26
5.4 Target Market .................................................................................................................................................................... 27
5.5 Competitive Advantage .................................................................................................................................................. 28
5.6 Marketing Strategy .......................................................................................................................................................... 28
5.7 Pricing policy..................................................................................................................................................................... 29
5.8 Advertising ......................................................................................................................................................................... 29
5.9 Customer Loyalty ............................................................................................................................................................. 31
5.10 Public Relations.............................................................................................................................................................. 32
5.11 Marketing Budget .......................................................................................................................................................... 32
6. Financial Plan ................................................................................................................. 33
6.1 Financing structure .......................................................................................................................................................... 33
6.2 Capital Spending .............................................................................................................................................................. 33
6.3 Dividend Policy ................................................................................................................................................................ 34
6.4 Ratio Analysis ................................................................................................................................................................... 34
6.5 Financial Analysis............................................................................................................................................................ 35
6.6 Risk Analysis ..................................................................................................................................................................... 35
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6.7 Contingency Plan ............................................................................................................................................................. 36
7.0 GreenStay Summary .................................................................................................... 37
9 Appendices ...................................................................................................................... 38
Appendix-1 Competitors Pricing Strategy ...................................................................................................................... 38
Appedix-2 SWOT Analysis ................................................................................................................................................. 39
Appendix-3 Survey Results.................................................................................................................................................. 41
Appendix-4 Room Furnishing Cost Breakdown ........................................................................................................... 44
Appendix-5 Power Estimations .......................................................................................................................................... 47
Appedix-6 Financials ............................................................................................................................................................. 48
Appendix-7 References ......................................................................................................................................................... 49
List of Tables
Table E.1 Key Financial Statistics .................................................................................................................... 6
Table 3.10 Capital Expendatures..................................................................................................................... 21
Table 3.11 Yearly Expenses ............................................................................................................................... 22
Table 4.3 Hourly & Annual Wages .................................................................................................................. 24
Table 5.11 Marketing Budget ........................................................................................................................... 32
Table 6.1 Brnancing Breakdown ...................................................................................................................... 33
Table 6.2 Capital Expendatures ....................................................................................................................... 33
Table 6.4 Economic Ratios ................................................................................................................................ 34
Table 6.5 Key Fiancial Statistics ....................................................................................................................... 35
Table A.1 competitor’s Prices from October 2008..................................................................................... 38
Table A.2a Strengths ........................................................................................................................................... 39
Table A.2b Weaknesses ..................................................................................................................................... 39
Table A.2c Opportunities ................................................................................................................................... 40
Table A.2d Threats ............................................................................................................................................... 40
Table A.4a Queen Room Furnishing Costs ................................................................................................... 44
Table A.4b Regular King Furnishing Costs..................................................................................................... 45
Table A.4c King/Jacuzzi Suite Furnishing Costs ........................................................................................... 46
List of Figures
Figure 3.1 Location (Google Maps Sept 20th , 2008 ) ................................................................................ 8
Figure 3.2 Site Plan ................................................................................................................................................. 9
Figure 3.3a First Floor ......................................................................................................................................... 10
Figure 3.3b Floors 2-4 ......................................................................................................................................... 12
Figure 3.4a Queen Double Layout ................................................................................................................. 12
Figure 3.4b Regular King Layout ...................................................................................................................... 13
Figure 3.4c King/ jacuzzi suite Layout ............................................................................................................ 13
Figure 4.1 Corporate Structure ........................................................................................................................ 23
Figure 6.6 Risk Analysis ...................................................................................................................................... 36
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1. Executive Summary
The concept of the GreenStay Hotel is inspired from a simple yet ingenious idea— “Sleep Better
Because You Feel Better.” The primary goal of GreenStay is to build an environmentally
friendly 101-unit hotel in Regina, Saskatchewan.
The GreenStay Hotel will be the first of its kind in Saskatchewan to provide a stay that has been
designed with the consideration of environmental-friendliness. Due to increasing environmental
concerns, GreenStay has taken the initiative to address this important and emerging opportunity
by making it an integral focus of the company.
This innovative hotel will consist of a one hundred and one-room facility spanning four levels.
Additionally, the hotel will feature a swimming pool and hot tub, business and fitness centre, a
boardroom and a state-of-the-art conference room that can accommodate up to one hundred
people. Above all, the hotel will be built according to the specifications required for
environmentally friendly accreditation. All aspects of the construction and operations side of
GreenStay will be delivered with the highest levels of environmental conscience.
All hotels in Saskatchewan currently fail to adequately provide consumers with an environmental
hotel. This is a rapidly growing market as recent survey results found that almost 20 per cent of
travelers choose hotels because of their environmental practices (Vancouver Sun). GreenStay
will become Saskatchewan’s only option for this growing market. In fact, we are aiming to
reduce energy use by 75% and water usage by 25%. The justification behind these ambitious
goals stems from results seen in the Factor 9 home in Regina, Saskatchewan. The construction
phase of the GreenStay hotel will be modeled after many of the specifications and practices used
in the construction of this home. The largest and most visible environmental aspect of the
GreenStay Hotel will be its use of two wind turbines and a vast network of solar photovoltaic
panels. Both of these systems will be used to produce electricity and will essentially help
GreenStay to control one of the fastest growing costs for hotels, utilities. The GreenStay hotel
will also utilize the stability in ground temperatures through a geothermal system that will heat
and cool the building year round. The use of these three systems (solar, wind & geothermal) will
work harmoniously together towards cementing in GreenStay as one of Canada’s largest net-zero
carbon emission hotels. Ironically, this is also one secret behind GreenStay’s attractively high
profit margins. In essence, GreenStay will be evidence of a rare and lethal combination.
GreenStay will provide consumers with a highly differentiated product and service while being a
low-cost producer.
GreenStay captured the attention of over 120 respondents (approx. 100 from Diefenbaker Airport) who
were surveyed at Diefenbaker International Airport and the University of Saskatchewan. Respondents
were notified of the following on the top of each survey: For the purpose of this survey, an
Environmental Hotel/Motel is defined as one which produces 100% of its own energy through sources
such as wind and solar power. It also produces its own heat through geothermal energy. This aims to
reduce energy and water consumption by using efficient utilities and will overall produce less carbon
emissions into the environment than current hotels.
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The following reveals the results to a few questions asked on our survey:
1) On a scale of 1 to 10, please rate how much you would prefer to stay at an “Environmental
Hotel” that strives to reduce its environmental impact. (Circle the number that best describes
your answer)
(Low Preference) 1 - 2 - 3 - 4 - 5 - 6 - 7 - 8 - 9 - 10 (High Preference)
Mean – 7.59
2) If price and services were comparable, would you be more inclined to visit a hotel/motel
which is an “Environmental Hotel”? (Please Circle One)
No
0%
Probably Not
2.5%
Maybe
19.5%
Probably would
36.4%
definitely would
41.5%
3) If there were a premium charged for staying at an “Environmental Hotel”, how much would
you be willing to pay extra per night? (Circle One)
$0/night
16.2%
$1-$10/night $11-$20/night $21-$30/night $31 or more/night
52.1%
22.2%
8.5%
0.9%
At GreenStay, we are committed to providing environmentally sustainable accommodations
while delivering an exceptional guest experience. Backed by this mission statement,
GreenStay intends on becoming one of Canada’s largest and most environmentally friendly
independent hotels. As management of GreenStay, we intend on exploiting this unique advantage
by harnessing the power of the media to promote the amenities and nature of our hotel. This free
publicity will give GreenStay national attention and will initially act as a powerful and highly
effective marketing medium.
Saskatchewan also has a large government sector. GreenStay will utilize this opportunity by
contacting Crown Corporations such as SaskPower, SaskEnergy and others, with the message ‘to
put their money where their mouth is.’ Both companies attempt to appear “green” with the
advertisements and rebate programs they have in place to reduce the amount of energy that
people use. Essentially, we want them to ‘practice what they preach’ by having their traveling
employees stay at a hotel that uses less energy and is very environmentally friendly. As well,
countless other private and public companies have been attempting to associate their names with
being environmentally friendly.
It is GreenStay’s objective to acquire approximately 2% of Regina’s market share through the
use of competitive pressures to gain existing hotel customers, as well as the generation of new
customers. This will be accomplished by appealing to GreenStay’s target market, which reaches
far beyond the environmentalists who travel through Regina. The target market for GreenStay is
segmented into three groups: business traveler, leisure travelers and group travelers. The
average age of our guests will be between 25 and 55 years old with moderate incomes. As well,
GreenStay’s strategic location near the intersection of Lewvan Drive and the Trans Canada
Highway gives us the benefit of being conveniently located to both business and leisure travelers
4
coming from the airport and the #1 highway. This location also minimizes our upfront capital
costs while increasing our profit margins, as land values are considerably cheaper here compared
to the downtown area of Regina.
GreenStay will be unique in the way it interacts with its customers. For example, two people will
be on front desk duty at all times. One employee will check guests in while another can offer
guests with a variety of personalized services. The friendly and open demeanor of our front desk
staff may catch first-time customers by surprise as they will help customers with luggage, get to
know our customers on a more personalized level, as well as educate our customers on
GreenStay’s environmental initiatives, and how they work. The energy conserving goals we have
in place will leave a lasting impression with our customers that should generate brand loyalty.
Our zero-carbon emission goal will be equivalent to taking an estimated 300 cars off the road
each year. What does this mean to each individual that chooses us? Every night a customer
chooses GreenStay over our competitors it is like taking their vehicle off the road for nearly 160
kilometers. At GreenStay, we will sincerely applaud our customers for these differences they are
making in the environment every time they stay with us. It is GreenStay’s goal to create this
emotional connection with our customers; and is further expressed in our slogan: “Sleep Better
Because You Feel Better.”
The strategic combination of our competitive advantages will make GreenStay financially viable.
The list below entails some of the key aspects to the sustainability of GreenStay’s future success:

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
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More responsive to changes – GreenStay will not have to follow franchise head quarter
instructions allowing us to quickly respond directly to the Regina market
Higher profit margins
Environmental brand & accommodations
Superior Service
Differentiated position/ cost leader
Lower operating costs
Since majority of our costs are fixed, the most sensitive determinant of GreenStay’s financial
success is our ability to generate customers. This is another reason why we are choosing Regina
as the location for GreenStay. Regina/Saskatoon have the 3rd highest occupancy rates out of
major cities in Canada, allowing GreenStay to provide you with one of the largest cushions
between average occupancy rates and break-even occupancy rates in the country. The table on
the next page provides a snapshot of our key financial projections:
5
Table E.1 Key Financial Statistics
2009
2010
2011
Year
Occupancy
50%
60%
70%
Revenue
$2,796,350 $3,458,975 $4,160,632
Expenses
$2,110,642 $2,454,309 $2,381,645
N.I. Before
Tax
$685,709
$1,004,666 $1,778,987
Income
Tax
$140,784
$231,853
$442,616
Net
Income
$544,924
$772,813
$1,336,371
Net Present Value (NPV)
Expected Internal Rate of Return (IRR)
Cash Flow Payback Period
2016
2017
2018
72%
72%
72%
$5,010,248
$5,170,576
$5,336,034
$2,541,503
$2,652,620
$2,717,570
$2,468,746
$2,517,956
$2,618,464
$573,686
$585,989
$611,116
$1,895,059
$1,931,967
$2,007,348
$3,453,358
34.6%
3.38 years
Management Team
The manager, Cody Dumonceaux, will be in control of many aspects of GreenStay. One of the
more important aspects under Cody’s job scope will be cost control. Cody’s past experience as a
non-operations accountant with Canadian Natural Resources Ltd. (CNRL) gives him sufficient
enough of a background to be successful in this area. Cody will be comfortable dealing with the
magnitude of expenditures facing GreenStay; as last summer he analyzed, disputed, resolved and
cleared over $700,000 worth of outstanding invoices for CNRL within a few months period.
Cody will also be completing his Bachelor of Commerce degree from the University of
Saskatchewan as a Finance Major in April 2009.
The assistant manager, Blaine Roth will be in control of many aspects of the hotel. Maximizing
customer satisfaction and building a strong brand are major aspects of Blaine’s job scope.
Blaine’s past experience in project management as an engineer for EnCana ensures that aspects
of his position such as hotel upgrades, renovations, and staffing will be dealt with effectively.
Blaine will be graduating with a degree in Mechanical Engineering in April 2009.
The remainder of the GreenStay business plan provides a detailed action plan outlining the
necessary steps to achieve future financial prosperity. In return, we are asking for $3.86 million
in exchange for 62% of GreenStay. The $3.86 million equity investment is the required start-up
capital for this venture. The remaining 60% of financing will be raised through debt. This will
ensure the successful completion of GreenStay, from the initial construction phase to our
inaugural grand opening.
In essence, the GreenStay venture can provide you with the best of both worlds. GreenStay will
generate healthy returns while making an unprecedented impact on the Saskatchewan hotel
industry, and the community we operate in. We believe this push towards environmentalism is
not a trend, but an emerging shift in our culture. We are eager to get this project underway with
you.
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2. Business Overview
2.1 Introduction
GreenStay Hotel & Suites is a 101-room environmentally friendly hotel to be built on the south
end of Regina, Saskatchewan at the intersection of Lewvan Dr. and the Trans Canada Highway.
The goal is to provide a hotel experience that is similar to other mid scale hotels but with as
little environmental impact as possible. The GreenStay hotel looks to take advantage of
growing environmental concerns of consumers. By using the environmental aspect, GreenStay
plans to use the most recent technology to minimize its dependence on non-renewable
resources by producing our own electricity.
2.2 Mission Statement
We are committed to providing environmentally sustainable accommodations while delivering
an exceptional guest experience.
2.3 GreenStay Hotel & Suites Overview




Saskatchewan’s 1st Net Zero Hotel
Self-sustainable
Reduces energy consumption by 75%
Reduces water consumption by 25%
2.4 Goals
Year 1








Year 4




Top Green Key and Green Leaf ratings
50% occupancy
Approximately $2.8 million in revenue
Environmental & ethical leader in the community
Approx 13.4% ROE
Low employee turnover
High customer satisfaction
Build a strong brand and loyal customer base
72% occupancy rate
Approximately $4.4 million
ROE increasing to 31.1%
Established brand
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2.5 Regina Hotel Industry
In general, the hotel industry has been moving to become more efficient. Hotel chains
have been implementing policies, such as a towel reuse program, to help cut down on costs.
The Regina hotel industry is currently booming with the past strength of the
Saskatchewan economy. New hotels are being built and opened such as the Wingate located in
the downtown core, the new Holiday Inn Express on the south end of Albert St as well as a Four
Points by Sheraton located on the east end of the city. Even with the influx of new hotels
within Regina, people within the industry still believe there is a shortage of hotel rooms within
Regina. As well, Regina and Saskatoon currently share the 3rd highest occupancy rates in Canada
(Macdonald, 2007).
The recent downturn in the economy may influence occupancy rates in Regina. Traditionally the
hotel industry is relatively stable as earnings are closely correlated to the strength of the
market as a whole. Our conservative occupancy rate forecasts of 50% in year 1 and 60% in year
2 are adjusted for the potential of a strong economic slowdown.
3. Operations Plan
3.1 Location
GreenStay will be located in Regina Saskatchewan. The specific location of the hotel is
proposed to be at 5050 Lewvan Drive, just north of the Trans Canada Highway. The map below
Figure 3.1 shows the location of the hotel, as well as competitors, food services, and other
major landmarks.
Figure 3.1 Location
(Google Maps Sept 20th , 2008 )
8
The location is just minutes away from the airport and is close to restaurants such as Kelsey’s,
Montana’s, and Earls. This location should allow us to be competitive as it is an area of the city
that has not been saturated by many other hotel chains. In fact, there is only one other hotel in
our area. It is also very close to high traffic routes. This location also gives us the benefit of
being the most strategically placed hotel for eastbound travelers on the Trans Canada Highway.
As well, land values and property taxes are considerably cheaper in this area of the city. This
location will also allow us to give our patrons more of an environmentally friendly feel. To the
west there is virtually an unlimited amount of open, green space for patrons to enjoy a
beautiful sunset over the open prairie sky.
3.2 Site Plan
The hotel is the central feature in the 3-acre site plan. There are 183 parking stalls located
around the hotel to accommodate guests and staff. There is an entrance to our parking lot
from the southbound section of Lewvan Drive. To accommodate patrons traveling on the north
bound section, a service road will be built so they can cross Lewvan Drive. These patrons would
enter at the rear of the hotel. The rear of the hotel also houses an industrial loading area with
enough space to maneuver large transport vehicles. In the front of the hotel there is a loading
and unloading area for guests. Located on either side of the hotel would be the wind turbine
sites.
Figure 3.2 Site Plan
9
3.3 Building Floor Plan
The main floor is shown in Figure 3.3a. The main floor of the hotel will include a large lobby
area and reception desk. Behind the reception area would be the office space for managers
and supervisors as well as a business centre for guests. There would be a small store for
ordinary concessionary products along with environmental products such as household
cleaners etc. The hotel also would have a conference room, which will be able to hold 100
people in theater style seating. The conference room is equipped with a stage, which has builtin storage underneath. The conference room is located on the opposite side of the hotel than
the guestrooms so if there is a loud function it will not disturb our guests on the main floor.
The conference room will also have a separate entrance/exit area so customers using the room
will not have to go through the main lobby.
The swimming pool and hot tub area will house a 15x25 foot pool and a 10-person hot tub. The
pool is situated in close view of the front desk so our staff can occasionally check on the patrons
using the pool. There will be no lifeguard on duty at the pool and the use of that facility will be
at the risk of the patron. There is also a fitness area which contains basic cardio equipment
such as a treadmill and stationary bike along with free weights.
Figure 3.3a First Floor
Next to the pool area is the mechanical room which houses building heating and power
equipment, as well as janitorial supplies and maintenance equipment. The
laundry/housekeeping area includes large industrial washers and dryers for linens and
housekeeping supplies. There are also guest laundry services that include coin operated
laundry machines for extended stay patrons. There is also a staff room for employees to eat
and take breaks in as well as a staff washroom. A 20-inch LCD television will also be placed in
the staff room.
10
On the main floor there are 9 guest rooms. There is also a recycling area to promote guests to
recycle products such as drink containers and newspapers. There are two stairwells at opposite
sides of the hotel and a set of two elevators. There is a vending area near the elevators. There
is a business centre with computers, fax machines and other business utilities for guests to use.
There is a carport in front of the hotel to protect guests from the elements during the year.
There is also a proposed site considered for a future restaurant if the opportunity arises. A
proposal may be offered to restaurants to gauge the interest in building a restaurant in this
location. This restaurant would be financed and operated by the restaurant owners.
Figure 3.3b shows Floors 2-4 of the hotel. Each floor contains 31 rooms. There are also varying
sized rooms for different suites that will be available. There are two stairwells at opposite ends
of the hotel as well as a more central location for elevators shown by the crossed boxes. There
will be recycling centers; ice and vending machines available near the elevators. On each floor
there are also more guest laundry services for long stay guests.
Figure 3.3b Floors 2-4
3.4 Room Floor Plans
GreenStay has 3 different room layouts, they are a double queen room, regular king room, and
king suite. The rooms vary in size depending on where they fall in our layout but contain mostly
the same furnishing. The rooms all contain standard items such as free WIFI Internet, free local
calls, cable TV, in room movies, iron and ironing board, etc. All of the rooms in this hotel are
non-smoking.
11
The Double Queen Suite is shown below and features two queen beds, desk, and entertainment
centre. Figure 3.4a shows the layout of the room.
Figure 3.4a Queen Double Layout
The regular king room shown below features one king bed, a desk, a coffee area, and an
entertainment centre. Figure 3.4b Shows the regular king room layout.
Figure 3.4b Regular King Layout
12
The King Suite rooms similarly have one king bed, an entertainment center and desk. They also
have a rolling armchair sectional sofa, and Jacuzzi tub with shower. Figure 3.4c shows the room
Layout of the King/Jacuzzi Suite Layout.
Figure 3.4c King/Jacuzzi Suite Layout
There is also going to be a variation of the King Suite called the Jacuzzi Suite, which will contain
similar furnishings but have more room for the guests.
3.5 Average Business Actions
Our hotel will be open for business 24 hours a day and will generally be comprised of 3, 8-hour
shifts for employees. The following is a list of daily, monthly, and annual duties for each person
on our staff.
Manager – 7am – 4pm (1 hr lunch)
Day
 Oversee all operations
 Resolve major conflicts with guests
 Resolve conflicts between employees
 Approve expenditures
 Meet with potential guests
 Recruit new corporate guests
Month
 Approve work schedules
 Analyze key financial ratios
Year
 Compile financials
 Ensure taxes are completed and filed
 Analyze past year and set strategy for upcoming year
 Evaluate managers and staff
13

Firing of staff when needed
Assistant Manager – 7am – 4pm (1hr lunch)
Day
 Order supplies
 Look after booking the conference rooms
 Ensure conference rooms are set up and occupants are looked after
 Ensure hotel brand is being maintained and strengthened
Month
 Schedule managers
 Assist manager
 Analyze competitor’s room rates
 Seek out new clients
 Meet with other managers to coordinate events
Year
 Yearly room inspections
 Prepare yearly reports
 Ensure licenses are up to date i.e. swimming pool, elevator, SaskPower Electrical
Inspection
 Coordinate hotel upgrades / renovations
The manager, assistant manager and front desk supervisor will alternate weekends.
Front Desk Supervisor – Shift: 8am - 5pm (1hr lunch)
Day
 Oversee front desk operations
 Answer phones
 Take reservations
 Check in/out guests
 Get pillows, blankets etc for guests
 Set up conference rooms
 Decorate lobby
 Stock lobby store
 Compile daily reports
 Prepare cleaning lists
 Educate customers on environmental initiatives
Week
 Schedule front desk staff
 Train new front desk staff
Year

Evaluate front desk staff
14
Front Desk Staff - Shifts: 7-3, 3-11, 11-7
Day
 Answer phones
 Take reservations
 Check in/out guests
 Get pillows, blankets etc for guests
 Set up conference rooms
 Decorate lobby
 Stock lobby store
 Guest call backs to ensure quality service
 Monitor hotel security
 Keep an eye on the pool to ensure guest safety
 Educate customers on environmental initiatives
Week
 Phone other hotels to check what rates are being charged
Year
 Inventory office supplies
Maintenance Supervisor – 7-4 (1hr lunch)
Day
 Organize housekeepers, maintenance/janitorial, and laundry staff
 Oversee all Maintenance and renovations
Week
 Schedule housekeepers
 Request new supplies
 Train new staff
Year
 Evaluate staff
Housekeepers – Shifts: 8 and 9 till finish
Day
 Clean rooms
 Load cleaning carts
 Vacuum room
 Minor room maintenance
 Report major room maintenance needed
 Take out garbage
 Sort recyclables
Week
 Extra cleaning – vents, behind TV, furniture etc
Year
 Inventory cleaning supplies
15
Maintenance/Janitorial – 7-3, 3-11
Day
 Maintenance
 Clean sidewalks and driveway
 Clean lobby and public areas
 Coordinate renovation projects
 Maintain pool
 Empty public garbage
 Sort and remove recyclables
Week
 Report any recurring problems
 Report on renovation projects
Year
 Inventory Supplies
Laundry – 9-till finish
Day
 Strip rooms of used linen
 Wash and fold laundry
Week
 Request supplies
Year
 Inventory Supplies
As a precaution, one maintenance employee will be on call for serious events only.
3.6 Environmental Initiatives
The GreenStay hotel will have many initiatives that will make it more efficient than any other
competitor. These initiatives will vary in nature. Some will have only minor effects while others
will make a huge difference to how the hotel operates. The primary goals of the hotel are to
reduce the overall power usage to a point where it can produce enough electricity to cover its
needs. GreenStay will reduce its use of water, paper and non-renewable resources such as
natural gas. It is our goal to reduce energy consumption by 75% and water consumption by
25%. The justification behind this ambitious conservation goals stem from results actually seen
in the Factor 9 home in Regina, Saskatchewan (Saskatchewan Resource Council, 2008). As well,
many policies and practices will also be in place.
The largest and most visible environmental aspect of GreenStay will be its use of two wind
turbines and a vast network of solar photovoltaic panels. Both systems will be used to produce
electricity. They will be tied into the SaskPower grid and when the systems are producing more
power than being used by the hotel the excess will be put into the grid and the hotel will
16
receive credit. These credits will be redeemed when the systems are not producing enough
electricity.
The reduction of electricity use is also a key component to GreenStay’s principles. This relies on
the choices made by the hotel such as choosing energy efficient appliances. Whenever
possible, Energy Star appliances will be used. This will not only help in the building obtaining an
Energy Star rating but it will also reduce the amount of electricity used. This initiative will also
include using appliances such as energy efficient LCD TV’s.
Key card activators will be installed in all rooms. When a guest enters the room they will be
required to place their key card into a key slot that will allow electricity to all the lights and
electrical sockets in the room. The devices will ensure lights and other electronics such as TV’s
are turned off when no one is in the room.
To further reduce the amount of electricity used, all lights will use either fluorescent or LED
bulbs. The hallways on each floor will also be equipped with motion sensors. When no one is in
the hallway the lights will be dimmed to reduce power usage. When someone enters the
hallway the sensors will activate the lights. The same system will be used in other public areas
such as the business center, fitness center, public laundry room and the public bathrooms.
To heat and cool the building a geothermal heat pump will be used. This system uses the
earth's ability to store heat in the ground and water thermal masses. This system operates
based on the stability of underground temperatures: the ground a few feet below surface has a
very stable temperature throughout the year. A geothermal heat pump uses that available
heat in the winter and puts heat back into the ground in the summer. The system will also be
used to pre heat the hot water for the building as well as the water for the pool and hot tub.
This will reduce the amount of natural gas required to heat the water.
To improve the buildings ability to be heated and cooled 12” highly insulated walls will be used
in the construction phase of GreenStay. This will ensure that the building has a R60 rated value.
Currently most hotels are built to R20 standards. This will result in the building needing less
heat in the winter and less air conditioning in the summer.
Programmable thermostats will also be used in the rooms. Through an Energy Management
System, the front desk will also be able to control them. As a result, the room can be heated or
cooled only if someone is staying in the room. Also, when a guest makes a reservation they will
be required to give an approximate time of arrival. This will enable our front desk staff to run
the air conditioning or heating in the room to have it ready by the time the guest gets to the
hotel.
Reducing the amount of water used for the hotel will also be a key component to making the
hotel environmentally friendly. The water efficiency plan has four components. It will utilize
dual flush toilets. These toilets allow for the option of using different amounts of water for
different operations. GreenStay will also landscape its property using many beautiful plants
17
native to Saskatchewan. This will significantly reduce our watering costs during the hot summer
months. Lastly is the use of water efficient taps and showerheads. These faucets use vacuum
flow valves that pump air into the water stream but will not compromise the guest experience.
Recycling will play a large role in the hotel. A recycling center will be set up on the main floor in
which guests will be encouraged to use. Each garbage container on the premises will also have
a recycling container included. Finally, each guest room will have garbage bins and recycling
bins. This will give each guest ample opportunity to reduce the amount of garbage that ends up
in landfills.
To reduce the amount of waste the hotel uses it will make use of large shampoo dispensers,
rather than small individual ones. The rooms will include reusable glasses rather than
disposable plastic glasses. Every morning customers will have access to an online newspaper
subscription therefore reducing the demand for a paper edition.
Conventional hotels use a large amount of paper in the check-in and checkout process. By
utilizing the latest technology GreenStay will use a minimal amount of paper. Using electronic
signature pads and emailing bills to the guests once they check out will the use of paper for
every guest. If guests need a paper copy it will be printed on 100% recycled paper. In the
conference rooms, whiteboards will be provided. This will further reduce the need for paper.
3.7 Environmental Certifications
While there are many different certifications available from different agencies the GreenStay
Hotel will focus on three. They will include LEED, Green Leaf and Green Key. These will be key
in promoting the hotel and ensuring guests that their stay is legitimately environmentally
friendly.
The Leadership in Energy and Environmental Design (LEED) Green Building Rating System is a
system used to certify buildings as being environmentally friendly (Canadian Green Building
Council, 2008). The Canadian Green Building Council runs the program. LEED has a varied
scoring systems based on a set of required "prerequisites" and a variety of "credits" in the six
major categories: sustainable site, water efficiency, energy and atmosphere, materials and
resources, indoor environmental quality, innovation and design process. For LEED certification
for new construction for commercial buildings there are 69 possible points and buildings can
qualify for four levels of certification: certified (26-32 points), silver (33-38 points), gold (39-51
points), platinum (52-69 points). Our goal is to certify in the platinum level and use this in
promotional material for the hotel.
TerraChoice Environmental Marketing and Audubon International have partnered to offer the
Audubon Green Leaf Program (Audubon International, 2008). The Program is a great resource
for the hospitality industry. Offered at two levels, it enables hotels to succeed with their ecoefficiency savings and environmental commitment. The Program also provides the professional
18
and leisure traveler verified environmentally responsible options. TerraChoice Environmental
Marketing Inc. is an environmental consulting agency based in Ottawa, Canada. The company
stewards the Environmental Choice Program for the Government of Canada. GreenStay aims to
earn the 5 Leaf rating which is the highest attainable.
The Green Key program is a self-administered program run by the Canadian Hotel Association
(Hotel Association of Canada, 2008). The Hotel Association of Canada's (HAC) Green Key EcoRating Program is a graduated rating system designed to recognize hotels, motels, and resorts
that are committed to improving their fiscal and environmental performance.
Based on the results of a comprehensive environmental audit, hoteliers are awarded a 1-5
Green Key rating and given guidance on how to "unlock" opportunities to reduce operating
costs and environmental impacts through reduced utility consumption, employee training, and
supply chain management. Members also benefit from powerful sales, marketing, public
relations, and team building opportunities, not to mention positive feedback from guests.
Currently the highest level attained by Regina hotels is 4 Green Key’s. Those hotels are the
Sandman and The Delta. GreenStay will easily achieve 5 Green Key’s and will be the only one at
this level.
The design, functionality and cost of the GreenStay Hotel are based largely on three houses that
have previously been built. These houses include the Dumont house in Saskatoon (built 1992),
the Factor 9 house in Regina (built 2007) and the Riverdale Net Zero duplex in Edmonton (built
2008). These houses have been developed and proven to be sustainable and very efficient.
Our project has been adapted from the functionality and costs of these buildings to suit a
hotel’s needs.
The latest building, the Riverdale duplex is expected to have a net zero effect on the
environment. It will produce enough power to cover the amount it uses throughout the year.
The most efficient feature of these buildings is its insulation, which reduces its costs for heating
and cooling. This is a very important feature of buildings on the prairies. Each of the three
buildings have been constructed it is most notable that the R-values of the insulation has
increased. The Riverdale duplex has an attic R-value of 100 (RSI 17.6), the walls R-value of 56
(RSI 9.9) and a basement floor R-value of 24 (RSI 4.2). It also includes triple (S) and quadruple
(N,E,W) glazed windows with low e and argon gas, passive solar space heating, active solar
space and water heating, and a photovoltaic system for electricity generation (Saskatchewan
Resource Council, 2008).
Other energy efficient measures include energy star appliances, compact fluorescent lamps, a
drain water heat exchanger, air-to-air heat exchanger with high effectiveness and a whole
house electricity-monitoring device.
Through the building and monitoring of these houses some very important discoveries have
been made. Some of the lessons learned include: It is very important to develop an integrated
design—one in which the entire building is designed as a system and not as a group of
19
unrelated components. Energy conservation measures in the building envelope, in addition to
lowering fuel and energy bills, can also reduce the capital cost of a heating system by reducing
the size and possibly the complexity. Heat recovery on the ventilation air is very important, but
more work needs to be done on improving reliability, and reducing maintenance in arctic
conditions. Reliable defrosting is a key issue. These cold climate houses would perform
extremely well in moderate climates. For instance, the Dumont residence in Saskatoon and the
Factor 9 Home in Regina needs no space heating until the outdoor temperature is below about
4oC. The average temperature in the coldest month of the year in Vancouver, B.C. is 4 oC.
Each building has achieved very positive results while only slightly increasing the cost of
construction, as compared to a conventional building built to building guide specifications. The
Dumont house achieved energy performance of 14,900 Btu/ft2 while construction costs
increased by 7%. The Factor 9 House achieves energy performance of 9,500 Btu/ft 2 while costs
increased by 12%. The Riverdale complex achieved energy performance 0 Btu/ft 2 while costs
rose by 35%. All increases are calculated excluding the cost of land.
The reason for such a large increase in the Riverdale complex was because of a $100,000 solar
photovoltaic system for electricity production. This is a very significant increase, which is a
result of the relatively small size of the complex. With the much bigger size of a hotel it is
expected that the costs for energy efficiency can be brought down through economies of scale
and further reducing the buildings energy requirements.
3.8 Supply Analysis
To supply office furniture fixtures and some equipment we plan to use Millwork Plus out of
Regina. All of the furniture stores will be contacted in regards to the room furnishings to
determine who can provide the quantity and quality of furniture we require, at the best price
possible. For supplies such as room amenities, cleaning products, and paper products a contract
will be established with Country Club Distributors as our vendor.
3.9 Service Providers
We will be supplying our own power but will also be tied into the SaskPower grid in order to do
net metering. Net metering is the amount of power you supplied to the grid minus the power
you used to determine what power you owe. GreenStay plans on being a net-zero hotel in this
regard. To make this feat possible GreenStay will have a total energy production capacity
equivalent to our average annual needs. For example, at certain times of the year GreenStay
will be producing more electricity than we need. It is during these times that GreenStay will be
sending power back into the SaskPower grid and in turn collecting a credit. In peak energy
consuming seasons GreenStay will use these credits to compensate for its additional power
needs. If GreenStay happens to produce slightly more energy than we use we will sell our green
power back to the grid at $.0647/ kW-h. If GreenStay happens to produce slightly less than our
annual need we will purchase green power back from the grid. SaskPower ensures the green
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power is only produced by using environmentally sustainable methods. Any utilities we do not
supply on our own will be supplied by the city of Regina’s services. This includes water and
sewage needs. For servicing of our geothermal systems we will be using Dwight’s Geothermal
and Drilling. Mech-EL Services will be used for our repairs and maintenance of our solar energy
system while we plan on contracting our wind power servicing needs to Black & McDonald.
Any minor maintenance including landscaping work (grass cutting, watering plants, etc) and
pool maintenance will be done by our in house maintenance staff. Our maintenance staff will
also be able to perform small-scale electrical and plumbing projects. City Bobcat Services will
be contracted out for any cases in the winter when parking lot snow removal is necessary. To
ensure that our computer systems are working properly we will contact Computer Repair
Regina if we have any issues. Sasktel will be our phone services provider. We have an
accountant on staff that also acts as our manager. As well, a Chartered Accountant at Meyers
Norris Penny can help with any of the more complicated matters. For legal services we plan to
have a lawyer on retainer.
3.10 Capital Budget
The main capital expenditure this business has is the hotel building. The construction costs are
higher than regular hotels of the same size to account for increases in efficiency and the extra
cost of implementing the environmental initiatives.
Table 3.10 shows the capital start up budget including the sub costs of the environmental
capital. The total startup capital needed for this business is $10,225,000.
Table 3.10 Capital Expenditures
Initial Capital Purchases
Land
Building
Environmental Capital:
Solar
Wind
Geothermal
Computers & Operating System
Telephone/ Communication
Furnishings, Fixtures & Equipment
Total
Cost
700,000
8,000,000
870,000
740,000
40,000
90,000
135,000
60,000
460,000
10,225,000
A more detailed cost breakdown of furnishing, fixtures and equipment can be found in
appendix 4.
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3.11 Operating Expenses
Table 3.11 shows the operating expenses for year one of the businesses. The main expenses
that this business will have to deal with are fixed expenses such as wages, dept payments, and
insurance.
Table 3.11Yearly Expenses
Expenses
Wages
Employee Benefits
Utilities:
Fixed
Variable
Interest on LT Debt (Mortgage)
Insurance
Property Taxes
Credit Card Interchange Fees
Capital Cost Allowance
Supplies Expense
Fixed
Variable
Ads & Promotions
Accounting & Legal Expense
Repairs & Maintenance
Total Operating Expenses
Cost($)
641000
86,400
67,988
44,000
23,988
377,000
150,000
120,000
41,945
320,900
105,750
30,000
75,750
85,000
35,000
69,909
2,110,642
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4. Human Resource Plan
4.1 Organizational Structure
Figure 4.1 shows the staff hierarchy of GreenStay. The board of directors includes the manager
and assistant manager along with a lawyer, hospitality industry expert, and 2 investors. The
assistant manager will be a qualified accountant so outside expertise in this area would not be
required. Both the manager and assistant manager will have business backgrounds and
university degrees.
Figure 4.1 Corporate structure
The front desk supervisor will undertake regular front desk tasks as well as manage the other
front desk employees. He/she will be compensated accordingly. The maintenance supervisor is
in charge of all other staff and is required to ensure the hotel is running effectively. The
maintenance supervisor along with the maintenance staff will ideally have some background
experience working in trades under an electrician or carpenter. The house keeping and laundry
staff would have little prerequisite experience needed.
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4.2 Training Programs
Most of the training for the positions at the hotel would be done in house. New employees will
be trained by the employees currently working at the hotel. Every employee will also be
educated about the sustainable initiatives that the hotel offers. This would be especially
important for the front desk staff as they have the most interaction with the customers.
4.3 Human Resource Costs
Table 4.3 shows the annual and hourly wages of all employees. It also shows the total wages
expense for the first year.
Table 4.3 Hourly & Annual Wages
Position
Hotel Manager
Hotel Assistant Manager
Front Desk Supervisor
Front Desk Staff
Maintenance Supervisor
Maintenance Staff
Housekeeping Staff
Laundry Staff
Total
Year 1 positions
1.0
1.0
1.0
7.0
1.0
1.0
8.0
2.0
Hourly Wage
($/hr)
25
25
13
11.5
14
12.5
12
11
Annual wage
($/yr)
90,000
75,000
26,000
23,000
28,000
25,000
24,000
22,000
576,000
4.4 Human Resources Strategy
The HR strategy that we will employ will be based on creating a sense of pride for our
employees. Since our hotel will be a leader in environmental initiatives we want to inform our
employees how their work helps to benefit a sustainable future. By educating our employees
about these benefits they will become more engaged in their work. In turn, this new knowledge
for employees will be passed on to our customers, which will lay a strong foundation towards
building GreenStay’s brand loyalty.
We will encourage new sustainable initiatives from all employees. Prizes or bonuses will help
motivate employees to identify new areas for improvement.
The workplace we build will have a more personalized family feel. Recognizing employees’
birthdays and other important dates provide a small example to how we intend on creating a
comfortable and friendly workplace environment. Monthly team meetings will also be held
with all staff. These meetings will ensure that everyone understands all of the current issues
facing the hotel. As well, employees will have the chance to share their ideas. As management
of GreenStay, we also want to practice an open door policy. We will create an environment
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that employees will feel comfortable expressing their feelings to us, whether it be face-to-face
or anonymously. This plan will help us make any necessary adjustments in our management
style. GreenStay will foster a cohesive workplace culture that will provide the encouragement
and opportunities for employees to build on their roles in the organization. Employees will
continuously be further educated about new environmental issues and initiatives, and how they
are making a positive impact by being a part of the GreenStay team. Another goal of the
GreenStay management team is to create a strong vision based around our mission statement:
we are committed to providing environmentally sustainable accommodations while delivering
an exceptional guest experience. This will be developed through inspirational and trusted
management. In essence, fairness and consistency in our management practices is a top priority.
GreenStay will target potential employees who seem to have a vested interest in the
environment. For example, students enrolled in environmental or earth studies programs will
be sought after, especially for the front desk staff positions. While being interested in
sustainability, these students will also be busy with their studies at different times, allowing us
to be more flexible in scheduling.
5. Marketing Plan
5.1 Industry Trends
The boom in the Saskatchewan economy in recent years has made finding hotel rooms hard to
come by. Hotels in Regina are very busy resulting in a shortage of rooms, especially during
large events held in the city.
Being as environmentally friendly as GreenStay intends on being immediately creates a large
hurdle for competitors. Our energy and water conservation techniques are only possible if a
hotel is originally constructed this way. No renovations or refurbishing will bring competitors
even close to the savings and benefits GreenStay will achieve. Therefore, if a firm plans to
duplicate our environmental initiatives it will take them approximately two years to have this
hotel constructed. This two-year window leaves GreenStay with ample opportunity to build up
clientele before a competing environmentally friendly hotel can open its doors.
Many hotels throughout North America are becoming green. These transitions are usually
done through retrofits. Many of these green hotels are boutique hotels and only offer a few
rooms per facility. GreenStay will offer a large amount of regular environmentally friendly hotel
rooms.
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5.2 Competitors
We have analyzed our competitors through SWOT analysis and have found these are our
competitor’s main strengths shown below. The full SWOT analysis can be found in appendix 2.
Location & Brand Recognition
 Best Western
 Holiday Inn Express
 Holiday Inn
 Travelodge
 Comfort Inn
 Howard Johnson
 Sandman Inn
Strong Business focus
 Wingate
Large Conference Capabilities
 West Harvest Inn
The biggest factor that we will face from competitors is their brand name recognition. As a new
hotel, we will not have the experience in the hospitality industry that the others have. They
already have an extensive marketing strategy in place and have contacts with companies with
hotel needs. The brands also have a standard that has to be met at all hotels within the chain
and customers know that they will have an experience that is similar at all hotels anywhere in
the world. These hotels will also have a client base already built up and we will be forced to
attract customers from these competitors.
The biggest weakness of all of GreenStay's competitors is that they all fail to properly address
increasing environmental concerns. There are not any hotels currently enrolled in the Green
Leaf eco-rating program and there are only a few involved with the Green Key rating program,
with the highest being rated at 4 keys out of a possible 5. These programs are designed to help
environmentally conscious consumers choose which hotels are acting in an environmentally
conscious matter.
5.3 Consumers
Anyone who stays at a hotel has the potential to buy our service. When guests are looking for a
hotel there are four major factors that come into play. Here are the main factors and how we
address them.
 Price- we would be comparable to other hotels in our market segment
 Location – close to major routes and airport
 Amenities – offer similar amenities as other hotels with less environmental impact
 Brand/Reputation – Try to inform people about our environmental initiatives and
become involved in the community
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5.4 Target Market
The target market of GreenStay reaches far beyond the environmentalists who travel
through Regina. The target market for GreenStay is segmented into three groups: business
traveler, leisure travelers and group travelers. The GreenStay will be positioned as an
environmentally friendly alternative to other hotels in the mid range market. GreenStay
will offer similar amenities as other hotels in this market with the added bonus of a smaller
environmental footprint.
The average age of the guest will be between 25 and 55 years old with moderate incomes.
Younger guests will not be attractive as their incomes usually draw them to a more
economical choice.
During weekdays, especially during the winter months (September thru May) GreenStay
will focus on business travelers. These are guests who are in Regina on work related
events such as sales people working within the city. This group is attractive because it is
usually their employer who makes the reservations and pays for the room. This will
require building relationships with various other businesses and government
organizations which regularly have employees working in and around Regina.
During the summer months (June thru August) and on weekends the focus will be on
leisure travelers who are in Regina for vacation or other personal events. This will include
families who are on vacation or here for family events such as reunions and weddings.
Also, due to the hotels location and easy access to the airport it will be an attractive place
for guest to stay prior to and after flights in and out of Regina.
Group travelers are larger groups of customers that are in the city for various events such
as hockey and soccer tournaments. These group travelers will be important for filling the
hotel on weekends when business travelers have gone home for the weekend and during
the winter when less people are vacationing.
Attracting teams will be important as they involve group bookings. These bookings can be
very profitable, as they will take a large block of rooms, usually 10-20 rooms, and only
require one reservation. As a result sponsoring sporting events throughout the city will get
our hotel’s name into tournament event information packages that usually include a list of
hotels in which the tournament organizers will send out to the teams that are participating.
The midrange market has the greatest potential because it is the largest market as seen by
the amount of hotel rooms already in the market. It shows that there is a demand in this
market. It also provides the least risk as we will only be seeking 2% of total market share,
as the 2% is divided among all the hotels they will see very little overall loss and then we
are less likely to face major retaliation from competitors. It is also of lower risk because
building a midscale hotel is less expensive than trying to enter the high-end market. We
would have an advantage over other hotels in this market by providing the same amenities
with the lower environmental impact.
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5.5 Competitive Advantage
GreenStay will have a definite advantage over its competitors by offerings guests a choice
of staying at a hotel, which leaves a smaller footprint on the earth. The following is a list of
more sustainable advantages:







More responsive to changes - don’t have to follow franchise head quarter
instructions and we will be able to respond directly to the Regina market
Higher profit margins
Environmental brand & accommodations
Superior Service
Differentiated position/ cost leader
Environment – currently environmentally conscious consumers do not have a
visible choice
Lower operating costs – Our operating cost will be lower as we eliminate our
electric bill and reduce water and other costs
5.6 Marketing Strategy
We want to be the dominant environmental hotel and also a mid-scaled hotel market share
leader in capacity levels by year 5. In the short term, first 2-5 yrs, hotels will have difficulty
duplicating our environmental initiatives; we also have very high profit margins in the
industry so we hold both a competitive advantage with our environmental initiatives and
niche marketing, product leadership along with being a low-cost producer.
Overall we will focus on presenting the hotel as an environmentally friendly experience.
We will be the environmental choice, as consumers do not currently have this choice.
We want to avoid price wars, we feel that we provide a hotel that is differentiated in what
we offer and will be able to capture existing hotel’s market share. We will look into the
opportunity of forming alliances with other environmental hotels across Canada that meet
the same environmentally friendly standards as ourselves. We also intend on capturing
existing customers from any hotel, but will focus our marketing efforts on appealing to our
target market.
The midrange market has the greatest potential because it is the largest market as seen by
the amount of hotel rooms already in the market. It shows that there is a demand in this
market. It also provides the least risk, as we will be seeking 2% of total market share, and
approximately 5% of the midrange market share. Since we are penetrating the largest
market our competitors will see the smallest reductions in revenues. Their small loss in
sales makes it financially unfeasible for them to retaliate with major competitive pressures
directly to GreenStay.
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Midscale hotel market
 5% of midscale market share
 2% of overall market share
 Strong environmental initiative
 Personalized quality service
 Market leader
- Dominate in the environmental market
- Capacity rate leader in midscale market by year 5
 EnergyStar rated building
 Green Key rating
 Green Leaf rating
 LEED Certified
5.7 Pricing policy
GreenStay will use a market-based differential pricing policy. This means that GreenStay
will charge similar prices as competitors but differentiate the service we sell (see appendix
1 for our competitors’ average room rates). However, marketing research we conducted
revealed that nearly 84% of customers would be willing to pay a premium for GreenStay.
Appendix 3 provides the breakdown on how much more customers are willing to pay. The
results to our survey have been taken with caution, as we do not want to price ourselves
out of the market. We do feel that the results and sample size we generated is sufficient
enough to warrant a 5-7% premium at our hotel. This minor pricing premium will be based
on hotels with similar amenities. If we find this strategy to be ineffective our prices can be
adjusted immediately.
Since our prices must be competitive with other hotels of similar service level the largest
factor to meet our profit objectives is the volume of sales that can be generated. In the
hospitality industry there is also variable pricing, which can be done such as charging more
on weekends or during other high demand periods. Discounts will be offered to groups
such as corporate clients, seniors, and frequent users. We also offer an added value for
families to stay at our hotel by having children 12 and under stay for free.
5.8 Advertising
The comprehensive advertising and promotion plan for GreenStay will be implemented
according to the budget table found within Table 3.6 in section 3.6. The advertising will be
focused on getting the customers to the hotel where we feel our hospitality and
environmentally friendly initiatives will make us a hotel of continued choice.
The objectives of our advertising are to inform people that they have a choice in
environmental accommodations and to create awareness of the hotel. We will use various
customer retention initiatives to create brand loyalty and familiarity. GreenStay will be the
brand associated with the environment.
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Our slogan will be: “Sleep Better Because You Feel Better,” which portrays the message that
guests will have a better night’s sleep at our hotel because they feel better about their stay.
In other words, they will feel like they are doing something good for the earth by staying at
our hotel.
Our guests will be informed through our advertising that one night’s stay in our hotel
would be equivalent to keeping their car off the road for 160 kilometers. We would also
inform people that our hotel operating at full capacity for a year would effectively take 300
cars off the road for a year if you compare carbon emissions (National Energy Foundation,
2008).
Every advertisement will contain two features from the hotel. The first feature will be an
environmentally friendly initiative and the other will be an amenity offered by the hotel.
This is meant to show that the hotel offers the best of both worlds; it has environmentally
friendly rooms without sacrificing regular amenities that one would expect at a similar
hotel.
When guest arrive to the hotel, the lobby will have a very trendy look which will give the
image of a hotel that is very advanced and on the cutting edge. A video display will also be
featured in the lobby, which will constantly show a slideshow presentation that outlines
the features of the hotel with emphases on the environmentally friendly initiatives and how
they work. Education through the front desk staff will be key to explaining how the
features work so that they are being used to their full potential. In such a case as the dual
flush toilets, one may not realize how they work or how to use them properly. Also, given
the increasing popularity of environmentalism both government agencies and private and
public companies have been attempting to associate their names with going green.
GreenStay will exploit this as an opportunity by offering government and other companies
the chance to have their name placed on a plaque in our front lobby. This plaque will list
and commemorate organizations that are trying to make a difference in the environment
by staying with GreenStay. These organizations will only be identified on our plaque if they
have corporate/government accounts with us and stay with us a particular number of
times per month. This plaque will give these organizations a good name to our widecustomer base while showing legitimacy and professionalism on GreenStay’s part.
The guests will find in each room a pamphlet that changes every few months. These
pamphlets will contain environmentally friendly initiatives that have been implemented
into the hotel. This will include our more common initiatives such as fluorescent lighting
along with less known initiatives such as the reasoning behind 12-inch walls. The focus
will be educating the guests so they understand what makes our hotel different.
The Internet presence is an integral aspect of the promotion. The hotel’s website URL can
potentially be www.GreenStay.com. This website URL is currently for sale for $500.
GreenStay’s website will also be accessed through Internet search engines such as Google
and online booking providers such as Expedia. Advertisements will also be placed on
theweathernetwork.com Regina weather forecast page. The website offers good value in
terms of advertising costs and webpage hits and we forecast that many people who plan to
pass through or stay in Regina will access this webpage.
30
During the first three years of operation a spokesperson will be sent to different trade
shows throughout Saskatchewan, Alberta, and Manitoba with a display to talk to potential
customers that will be visiting Regina and need a place to stay during their visit.
Tradeshows to attend include the Western Canadian Agribition, Farm Progress show,
Calgary Stampede, and Klondike Days.
Throughout the year money will be given to individual groups for advertising and charities.
This will help promote the hotel’s name and role in the event as well as carry a significant
profile in the community for the hotel.
An aggressive approach will be taken to entice groups, companies, government agencies
and sports teams to stay at the GreenStay Hotel. Phone calls to potential customers will be
made. In some cases, meetings will be set up so they can meet a company face to face to
explain what we have to offer. In some cases we will take them out for dinner or bring the
potential clients to our hotel to give them a seminar or a tour of the facilities. Specifically,
we will contact Crown Corporations such as SaskPower, SaskEnergy and others, with the
message ‘to put their money where their mouth is.’ Both companies attempt to appear
“green” with the advertisements and rebate programs they have in place to reduce the
amount of energy that people use. Essentially, we want them to ‘practice what they preach’
by having their traveling employees stay at a hotel that uses less energy and is very
environmentally friendly. All government sectors will be approached with a presentation
as to why they should stay at the GreenStay versus any of the other hotels in the city.
Additional advertising funds will be allocated towards radio, city transit, and magazine ads.
As well, since GreenStay is aiming to become one of Canada’s largest environmental hotels
this will attract a lot of positive media attention that GreenStay management intends on
taking advantage of. GreenStay management plans on using the media for free publicity as
much as possible.
5.9 Customer Loyalty
The existence of the GreenStay store is in place to promote customer loyalty. Customers
will receive loyalty points as a part of our Green Rewards Program that can be used
towards having every 10th stay free, as well as items in our store. The GreenStay loyalty
points will be awarded each time a customer chooses to stay with us. Our GreenStay
website will allow customers to see their loyalty point totals along with a list of items they
can get with these points. The GreenStay store will provide customers with the chance to
take home many green household items that we use in our hotel’s operations. These
household items include personal hygiene and household cleaning supplies. We have
elected to keep the GreenStay store out of our revenue statements to keep our forecasts
conservative. In essence, the GreenStay store is viewed by management as more of an
amenity and loyalty median as opposed to a revenue generator.
31
5.10 Public Relations
Public relations will be part of promoting the hotel within Saskatchewan. Being involved in
various environmental programs will help solidify the hotels approach to environmentally
friendly accommodations. Promotions will also serve as a chance to build GreenStay’s
reputation as a community partner. Throughout the year activities will be held at the hotel
to promote environmentally friendly initiatives. This will include events to commemorate
Earth Day. Sponsorships of various community events will also be used, such as tree
planting initiatives. To become more involved in the community GreenStay would sponsor
local teams such as minor hockey teams or other sports teams.
5.11 Marketing Budget
To raise the awareness of this new hotel there will need to be large marketing effort which
will be costly for the first couple years. Table 3.6 shows the marketing budget for year 1.
After the first year the effectiveness of each marketing expense will be reviewed and
money will be transferred to channels that are more effective.
Table 5.11Marketing Budget
Marketing Budget
Television Commercials
Internet
Newspaper
Radio
Magazines
Billboards
Sponsorships
Annual Events
Brochures
Promotional Giveaways
Trade Shows
Website
City Transit
Total
Cost
$25,000
$13,000
$7,500
$8,000
$2,000
$8,000
$3,500
$4,000
$5,000
$1,500
$1,000
$1,000
$5,500
$85,000
32
6. Financial Plan
6.1 Financing structure
We will use a 60/40 split between debt and equity financing for the business. The 60% debt
financing should be obtainable based on the total value of our assets. The hotel land and
building could be used as collateral. We will also have a $50,000 line of credit in case a need for
it arises. Table 6.1 shows the financing budget.
Table 6.1Financing breakdown
Finance Type
Amount
Long Term Debt
Common Shares
Total Financing Required
$5,800,000
$3,866,667
$9,666,667
Note: The high cash flow generation of this business allows us to raise less long-term financing
than capital required in year 1.
6.2 Capital Spending
GreenStay’s total capital budget is $10,225,000. The capital budget breakdown is shown in table
6.2 and can also be seen in appendix 6. The computers & operating system capital expenditure
includes a one-time cost for a website and website reservation system, as well as an Energy
Management System (EMS) (source). The EMS system will be able to control room heating and
lighting requirements from a central location. This will allow rooms to be heated before guests
arrive if rooms are pre booked. The energy management system will be integrated with the key
card system to power down all electrical devices when nobody is in the room. The energy
management system costs most mid-scale hotels $100,000 but provides an average payback
period of four years (Office of Energy Efficiency, 2005).
Table 6.2 Capital Expenditures
Initial Capital Purchases
Year 1
Land
Building
Environmental Capital:
Solar
Wind
Geothermal
Computers & Operating System
Telephone/ Communication
Furnishings, Fixtures & Equipment
Total
$ 700,000
$8,000,000
$870,000
$740,000
$40,000
$90,000
$135,000
$60,000
$460,000
$10,225,000
GreenStay intends on upgrading some capital beginning in year 5 (2013). These upgrades
include $25,000 towards new computer/ operating systems and $60,000 for telephones &
33
communications upgrades. To stay on the leading edge of environmental equipment and
efficiency there will also be a $100,000 upgrade to improve the hotels sustainability and market
position as an environmental leader. These upgrades will be needed again in 2017. The effect of
these upgrades can be seen in the financial model in Appendix 6.
The furnishings in the hotel rooms will start needing replacement after seven years. A third of
the rooms will be refurnished in each year at a cost of $172,215 per year. The refurnishing will
go for 3 years and then after four years it will be started again. All future capital expenditures
will be financed through cash on hand.
The solar system will be installed on the roof and will produce approximately 433,000 kW hrs/
year. This size of system is estimated to cost $740,000. The wind power system will produce
approximately 76,000 kW hrs/ year and will have a total installed cost of $40,000. The
geothermal heating equipment and installation costs total $90,000. This cost includes the
trenching required for the installation of ground loops. See appendix 5 for the cost and energy
breakdown on capital.
6.3 Dividend Policy
GreenStay is proposing to pay all of its excess cash flows as dividends. The first two years of
GreenStay operations will be primarily used towards building a healthy level of cash and
retained earnings for day-to-day operations and future hotel upgrades. The remainder of future
generated cash flows will be as dividend payouts. If the hotel is as successful as forecasted the
opportunity of expanding into new locations can be explored. In this case shareholders will be
consulted and asked to vote on the option to wave their dividends to finance a new hotel. This
would help increase the dividends they receive once the new hotel would be built.
6.4 Ratio Analysis
There are some specific ratios that need to be addressed for the hotel industry. These ratios are
shown in Table 6.4. The RevPAR is the revenue per available room. In year 1 this ratio shows
that the revenue we are making is equivalent to having every room in the hotel rented out at $75
per night. The average daily rate is the average room rate that is being charged. The RevPAR
over the Average Daily Rate would give you the occupancy of the hotel for the year. These
ratios can be used to track hotel performance and ensure occupancy goals are being met.
Table 6.4 Economic Ratios
Ratio
Net Profit Margin
RevPAR
Average Daily Rate
ROE
Year 1
Year 5
19.5%
75
150
12.4%
35.2%
123
170
33.0%
34
6.5 Financial Analysis
The Net Present Value of this business is $3,453,358. This large positive NPV shows that
GreenStay is not only profitable but can produce more than the required return of 20%. The
Internal Rate of Return or expected return is 3.6%. The high rate of return comes from the fact
4that the IRR is leveraged due to debt financing. The total unleveraged rate of return for
GreenStay is 19.5%. Using the higher debt financing improves the rate of return but does add
some additional risk due to the higher mortgage payments. The high quantity of projected cash
flows for this business will be sufficient to cover the loan payments. Table 6.5 shows a summary
of the projected financial results for the first three and last three predicted years.
Table 6.5 Key Financial Statistics
2010
2011
2016
2009
Year
Occupancy
50%
60%
70%
Revenue
$2,796,350 $3,458,975 $4,160,632
Expenses
$2,110,642 $2,454,309 $2,381,645
N.I. Before
Tax
$685,709
$1,004,666 $1,778,987
Income
Tax
$140,784
$231,853
$442,616
Net
Income
$544,924
$772,813
$1,336,371
Net Present Value (NPV)
Expected Internal Rate of Return (IRR)
Cash Flow Payback Period
2017
2018
72%
72%
72%
$5,010,248
$5,170,576
$5,336,034
$2,541,503
$2,652,620
$2,717,570
$2,468,746
$2,517,956
$2,618,464
$573,686
$585,989
$611,116
$1,895,059
$1,931,967
$2,007,348
$3,453,358
34.6%
3.38 years
6.6 Risk Analysis
A large portion of GreenStay’s costs are fixed. As a result, the most critical factor to GreenStay’s
success is generating occupancy. To determine our overall risk, a break even analysis was
performed to gauge GreenStay’s likeliness for success. This analysis was based on two
scenarios: the first scenario was a net income breakeven and the second scenario was an
economic break even. The economic break even equals a zero NPV. Figure 6.6 on the following
page displays this.
35
Figure 6.6 Risk Analysis
The base case shows a conservative estimate of expected occupancy since the average
occupancy in Regina is actually 72% (MacDonald, 2008). Our base case estimations have
GreenStay reaching and maintaining industry average occupancy levels by year four. To
obtain a net income break even GreenStay requires an average of 35 rooms to be rented
per night (35% occupancy) in year 1. The large gap between GreenStay’s base case
occupancy rates and net income break-even occupancy rates in Figure 6.6 offer peace of
mind to investors. As Figure 6.6 reveals, our conservative occupancy rates provide us a
comfortable 40-room cushion above our net income breakeven levels.
Over the first four years of GreenStay’s operations, economic and net income break evens
are equal. In other words, to maintain the 20% required return on your investment
GreenStay can operate at the net income break-even occupancy rates until year 4. After
year 4, occupancy levels must then increase by 10% per annum to ensure GreenStay fulfills
your required rate of return. In this scenario the average occupancy rate of 72% will not be
met until year nine. This shows that if GreenStay occupancy grows slower than anticipated
there is still ample opportunity to make adjustments to our strategy in order to maintain
your 20% return on equity.
Appendix 2 also provides a SWOT analysis outlining weaknesses and threats to GreenStay’s
performance.
6.7 Contingency Plan
The inability for GreenStay to meet the required occupancy levels listed above in Section
6.6 provides virtually the only scenario to GreenStay’s failure. If this failure occurs
GreenStay will be able to do the following:
 Liquidate – sell off assets and recover investment
 Change brand- manage hotel under a popular hotel brand
36

Change focus- given the aging population of Canadians, some relatively minor
renovations could quickly shift this building into a retirement home for the
elderly
7.0 GreenStay Summary
The hospitality industry has been plagued by consumption and waste for far too long.
GreenStay has finally taken the initiative to address this important and emerging
opportunity by making the environment an integral focus of the company. Backed by
healthy margins, GreenStay signifies a cunning transformation in the industry. Together,
GreenStay will emanate a positive public image while satisfying the hungry appetites of its
bottom line.
37
9 Appendices
Appendix-1 Competitors Pricing Strategy
This appendix shows the prices of all competitors in Regina. It also shows the number of
rooms and the total potential revenue per night.
Table A.1 Competitor’s prices from October 2008
Hotel Name
Days Inn
Holiday Inn Express and Suites
West Harvest Inn
Sandman Hotel and Suites
Holiday Inn Hotel and Suites
Travelodge
Comfort Inn
Quality Hotel
Super 8
Country Inn and Suites
Howard Johnson
Budget Inn Express
Best Western
Wingate
Victoria Park Motor Inn
Travel Inn
Sherwood House Inn
Holiday Inn Express and Suites
Radisson Plaza
Delta
Ramada
Regina Inn
Average
Price
121
153
95
172
134
143
127
141
112
119
101
95
131
154
94
94
94
115
219
199
145
171
133
Number of Room Revenue/
Rooms
Night
97
10,767
78
8,814
105
10,500
132
14,916
102
12,546
200
24,000
100
10,500
125
15,750
59
4,425
77
7,469
181
16,833
197
16,154
157
16,485
118
14,750
66
5,610
67
5,695
100
8,500
102
11,730
217
39277
274
47676
233
29591
235
35015
3022
$430,100
38
Appedix-2 SWOT Analysis
This appendix shows the SWOT analysis performed for the Regina hotel market.
Table A.2a Strengths
FACTORS
Clients
Economic
STRENGTHS
Very convenient location for business or leisure trips, travelers in overnight transit at the airport, and
people who are interested in sporting and social events
Can also leverage our environmental position in the market to attract business and government
attempting to go green
Our market research concluded that our customers are willing to pay a premium for our hotel
Economic
Long-term savings with the use of energy-efficient technologies
Environmental First environmentally-friendly hotel in Saskatchewan
Strong relationship with surrounding businesses that operate local events, as well as environmental
Partnerships
activist groups
Political
Grants for being environmentally friendly
Resources
Knowledgeable employees who are aware of the hotel and what the city has to offer
Social
Employees are our assets, we treat them with respect and reward them for a job well done
Social
Organize a variety of social events and activities for customers & staff
Social/
Cultural
There are many nearby attractions/ conveniences, such as: Regina International Airport, Ipsco
Place, Taylor Field, Trans-Canada Highway, car rentals, shopping, RCMP Heritage Centre, etc.
Table A.2b Weaknesses
FACTORS
WEAKNESSES
Clients
Customers who are indifferent to the environment and believe they are paying a premium for a hotel
with new environmental technology
Competition
We will initially have an unestablished brand. It has to be built through hard work and providing
excellent customer services for our clients
Economic
Regulatory
Funding constraints, faced with higher start-up costs associated with new environmental technology
Certain regulations must be met in order to achieve a particular environmental designation, such as
ISO 14001 for environmental management
Resources
Internal knowledge and expertise to serve customers
Resources
Resources
Social/
Cultural
Suppliers
Employees with specialized skills, especially pertaining to the use of environment technology
Business management in early stages will be inexperienced, as we will a brand new company
Limitation of languages offered
Difficulty in finding suppliers who also share our environmental philosophy
39
Table A.2c Opportunities
FACTORS
OPPORTUNITIES
Competition
Be the first dominant hotel in the west end of Regina
Competition
Be the first environmentally friendly hotel in Regina
Customers
Strengthen and leverage relationships with customers, offering repeat customers with loyalty cards
to strengthen their relationship to our establishment
Customers
Strive to be the best place to stay by providing enhanced security, broadening our services and
offering a relaxing atmosphere
Environment
Building a good environmentally-friendly business image in the customer’s mind as well as with the
general public
Management
Enhance customer experience by re-designing business processes from the customer perspective
(processes, job rotations, employee-incentives based on customer satisfaction, etc.)
Partnerships
Watch for new investments and sponsor future social events at the targeted locations, Ipsco Place
and Mosaic Stadium
Partnerships
Create and maintain strong relationship with suppliers and partners
Resources
Using the large talent pool of Regina and the surrounding areas to look for new skilled employees
Social/
Cultural
Enhance diversity in the workplace by offering a varied workforce with a multitude of languages,
different perspectives on different cultures
Table A.2d Threats
FACTORS
THREATS
Competition
Other competitors moving into the area to capitalize on what we have accomplished
Competition
As environmental technology becomes cheaper and more known, other hotels will adopt our
methods
Economic
Economic
Labour shortage
Rising building costs and inflation from the time of budget to the time of build
Environmental
The environmental technology used, such as solar heating, electricity generation, etc., may be
unreliable due to the relatively new product.
Environmental/
Potential crisis including severe economic down turn, vandalism, fire, tornado, etc.
Economic
Political
Potential changes in government regulations, causing quality standards to be changed
Resources
Attracting employees with specialized expertise and bilingual capabilities
Social
Social
Potential that environmental concern is simply a fad
Potential that the growth of Regina is short-term and may reduce to previous numbers
40
Appendix-3 Survey Results
This appendix shows results of a survey conducted by a group of students in Comm 357
form the Edwards School of Business.
This study is being conducted by a group of students from the Edwards school of business as a requirement for Marketing Research class. It is
a survey on the topic of Environmental hotels and is being conducted for Blaine Roth and Cody Dumonceaux. The information you provide
will be anonymous and/or confidential. By completing the survey you are consenting to participate in this student project. You have the
right to withdraw at any time and not to respond to questions as you choose. If you have any questions or concerns about this research,
please contact the Edwards School of Business at 966-4794.
For the purpose of this survey, an Environmental Hotel/Motel is defined as one
which produces 100% of its own energy through sources such as wind and solar
power. It also produces its own heat through geothermal energy. This aims to
reduce energy and water consumption by using efficient utilities and will overall
produce less carbon emissions into the environment than current hotels.
1) In a typical year, how often do you travel where you need to stay in a hotel/motel?
(Circle One)
* If your answer is never, please skip to question #12
Never
2.5%
1-6 times
per year
69.2%
7-10 times
per year
11.7%
11-14 times
per year
4.2%
15 or more
times
per year
12.5%
2) What percentage of the travel is for business and what percentage is for leisure?
(Should total 100%)
Business_____% - 34.72%
Leisure_____% - 65.28%
3) On a scale of 1 to 10, please rate how much you would prefer to stay at an
“Environmental Hotel” that strives to reduce its environmental impact. (Circle the number
that best describes your answer)
(Low Preference) 1 - 2 - 3 - 4 - 5 - 6 - 7 - 8 - 9 - 10 (High Preference) Mean – 7.59
4) If price and services were comparable, would you be more inclined to visit a
hotel/motel which is an “Environmental Hotel”? (Please Circle One)
No
0%
Probably Not
2.5%
Maybe
19.5%
Probably would
36.4%
definitely would
41.5%
5) If there were a premium charged for staying at an “Environmental Hotel”, how much
would you be willing to pay extra per night? (Circle One)
$0/night
16.2%
$1-$10/night $11-$20/night
52.1%
22.2%
$21-$30/night
8.5%
$31 or more/night
0.9%
6) Which of the hotels would you rather stay at? (Circle One)
41
Environmental Hotel/Motel
without Restaurant
33.6%
Regular Hotel/Motel
with Restaurant
66.4%
7) Please rate how large an improvement you feel producing 100% of the energy a
hotel/motel uses is over existing green programs offered at current hotels. (Circle a
number that best describes your answer)
(Little Improvement) 1 - 2 - 3 - 4 - 5 - 6 - 7 - 8 - 9 – 10 (Large Improvement) Mean – 7.24
8) When traveling for business, what level of service hotel/motel do you commonly stay
in? (Circle One)
Economy
3.5%
Mid-Scale
-No Restaurant
9.6%
Mid-Scale
With Restaurant
53.9%
Luxury
3.5%
I don’t travel for
business
29.5%
9) When traveling for leisure, what level of service hotel/motel do you commonly stay in?
(Circle One)
Economy
8.6%
Mid-Scale
-No Restaurant
9.5%
Mid-Scale
-With Restaurant
69.0%
Luxury
12.1%
I don’t travel for
leisure
0.9%
10) Do rewards programs (e.g. Airmiles) influence your decision in choosing a hotel?
(Low Influence) 1 - 2 - 3 - 4 - 5 - 6 - 7 - 8 - 9 - 10 (High Influence) Mean – 4.59
11) What type of rewards Program would you prefer from a hotel? (please Circle One)
Internal Rewards Program
(e.g. stay 10th night free)
20.7%
External Rewards Program
(e.g. Airmiles or Aeroplan)
62.9%
None
16.4%
12) Please choose the name you feel best represents an environmental hotel. (Please
Choose Only One)
28.2% .Solstice: Environmental Hotel and Suites.
17.9% .Paradise Greens
9.4% .Aurora Greens
8.5% .Canyon Greens
35.9% .Green Stay
13) Circle the age category that you fit in.
Under 18
0.8%
18-25
29.7%
26-35
8.5%
36-45
15.3%
46-55
23.7%
56-64
13.6%
65+
8.5%
14) What is the highest level of formal education you have received? (Please Circle One)
Less than a High
High School
Some Post-
Completed Post-
42
School Diploma
3.4%
Diploma
15.1%
Secondary
36.1%
Secondary
45.4%
15) Are you male or female?
Male
54.6%
Female
45.4%
16) What is your approximate personal yearly Income?
Under $25K
22.4%
$26K-$50K
20.6%
$51K-$75K
$75K-$100K
$100K+
21.5%
16.8%
18.7%
 Thank-you for your participation 
43
Appendix-4 Room Furnishing Cost Breakdown
This appendix shows the costs of furnishing each of the different suite types. These room
furnishing costs make up the majority of the costs of our total fixture furnishing and
equipment costs in our capital budget.
Table A.4a Queen room furnishing costs
Part
Queen Mattress
Queen Frame
Queen
Bedspread
Queen Sheets
Queen Mattress
Pad
Queen
Headboard
Pillows
Nightstand
Lamp
Upholstered
Chair
Desk
Phone
Alarm Clock
Framed Artwork
TV Stand
TV (26" LCD)
Coat Rack
Coat Hangers
Luggage Rack
Coffee Maker
Coffee cups
Iron & Board
Waste Basket
Recycling Bin
Ice Bucket
Water Glass
Curtains
Do Not Disturb
Sign
Towel Set
Shower Curtain
Toilet paper
holder
Faucet
Total room cost
Quant.
2
2
Price/unit
($us)
325.00
57.95
Price/unit
($can)
336.70
60.04
total
cost
($)
673.4
120.1
Supplier
National Hospitality Supply
National Hospitality Supply
4
4
39.95
7.25
41.39
7.51
165.6
30.0
National Hospitality Supply
National Hospitality Supply
4
7.95
8.24
32.9
National Hospitality Supply
2
4
2
2
88.95
8.00
153.00
39.95
92.15
8.29
158.51
41.39
184.3
33.2
317.0
82.8
National Hospitality Supply
Pineapple Hospitality
National Hospitality Supply
National Hospitality Supply
1
1
1
1
2
1
1
1
4
2
1
4
1
2
1
1
4
2
79.95
198.00
15.95
6.50
13.95
333.00
449.99
32.95
0.54
14.95
16.95
1.00
29.90
2.50
2.50
1.33
1.92
36.95
82.83
205.13
16.52
6.73
14.45
344.99
466.19
34.14
0.56
15.49
17.56
1.04
30.98
2.59
2.59
1.38
1.99
38.28
82.8
205.1
16.5
6.7
28.9
345.0
466.2
34.1
2.2
31.0
17.6
4.1
31.0
5.2
2.6
1.4
8.0
76.6
National Hospitality Supply
National Hospitality Supply
National Hospitality Supply
National Hospitality Supply
National Hospitality Supply
National Hospitality Supply
Best Buy
National Hospitality Supply
National Hospitality Supply
National Hospitality Supply
National Hospitality Supply
National Hospitality Supply
National Hospitality Supply
National Hospitality Supply
National Hospitality Supply
National Hospitality Supply
National Hospitality Supply
National Hospitality Supply
1
2
1
0.25
7.18
11.95
0.26
7.44
12.38
0.3
14.9
12.4
National Hospitality Supply
National Hospitality Supply
National Hospitality Supply
1
1
3.50
36.95
3.63
38.28
3.6
38.3
National Hospitality Supply
National Hospitality Supply
$3,073.7
44
Table A.4b Regular King furnishing costs
Part
King Mattress
King Frame
King Bedspread
King Sheets
King Mattress
Pad
King Headboard
Pillows
Nightstand
Lamp
Upholstered
Chair
Coffee Table
Desk
Phone
Alarm Clock
Framed Artwork
TV Stand
TV (26" LCD)
Coat Rack
Coat Hangers
Luggage Rack
Coffee Maker
Coffee Cups
Waste Basket
Recycling Bin
Ice Bucket
Water Glasses
Curtains
Do Not Disturb
Sign
Towel Set
Shower Curtain
Toilet Paper
Holder
Faucet
Total cost
Quant.
1
1
2
2
Price/unit
($us)
459
76.95
45.95
8.75
Price/unit
($can)
475.52
79.72
47.60
9.07
Total
cost
($)
475.5
79.7
95.2
18.1
Supplier
National Hospitality Supply
National Hospitality Supply
National Hospitality Supply
National Hospitality Supply
2
1
2
2
2
9.25
112
9
153
39.95
9.58
116.03
9.32
158.51
41.39
19.2
116.0
18.6
317.0
82.8
National Hospitality Supply
National Hospitality Supply
Pineapple Hospitality
National Hospitality Supply
National Hospitality Supply
3
1
1
1
1
2
1
1
1
4
1
1
2
2
1
1
2
2
79.95
116
198
15.95
6.5
13.95
333
449.99
32.95
0.54
14.95
16.95
1
2.5
2.5
1.33
1.92
36.95
82.83
120.18
205.13
16.52
6.73
14.45
344.99
466.19
34.14
0.56
15.49
17.56
1.04
2.59
2.59
1.38
1.99
38.28
248.5
120.2
205.1
16.5
6.7
28.9
345.0
466.2
34.1
2.2
15.5
17.6
2.1
5.2
2.6
1.4
4.0
76.6
National Hospitality Supply
National Hospitality Supply
National Hospitality Supply
National Hospitality Supply
National Hospitality Supply
National Hospitality Supply
National Hospitality Supply
Best Buy
National Hospitality Supply
National Hospitality Supply
National Hospitality Supply
National Hospitality Supply
National Hospitality Supply
National Hospitality Supply
National Hospitality Supply
National Hospitality Supply
National Hospitality Supply
National Hospitality Supply
1
2
1
0.25
4.69
11.95
0.26
4.86
12.38
0.3
9.7
12.4
National Hospitality Supply
National Hospitality Supply
National Hospitality Supply
1
1
3.5
36.95
3.63
38.28
3.6
38.3
National Hospitality Supply
National Hospitality Supply
$
2,884.8
45
Table A.4c King/Jacuzzi Suite furnishing costs
Part
King Mattress
King Frame
King Bedspread
King Sheets
King Mattress
Pad
King Headboard
Pillows
Nightstand
Lamp
Couch
Rolling Arm
Chair
Coffee Table
Desk
Phone
Alarm Clock
Framed Artwork
TV Stand
TV (26" LCD)
Coat Rack
Coat Hangers
Luggage Rack
Coffee Maker
Coffee Cups
Waste Basket
Recycling Bin
Ice Bucket
Water Glasses
Curtains
Do Not Disturb
Sign
Towel Set
Shower Curtain
Toilet Paper
Holder
Faucet
Total
Quant.
1
1
2
2
2
1
2
2
2
1
Price/unit
($us)
459
76.95
45.95
8.75
Price/unit
($can)
475.52
79.72
47.60
9.07
total
cost
($)
475.52
79.72
95.21
18.13
supplier
National Hospitality Supply
National Hospitality Supply
National Hospitality Supply
National Hospitality Supply
9.25
112
9
153
39.95
9.58
116.03
9.32
158.51
41.39
400.00
19.17
116.03
18.65
317.02
82.78
400.00
National Hospitality Supply
National Hospitality Supply
Pineapple Hospitality
National Hospitality Supply
National Hospitality Supply
The Brick
1
1
1
1
1
2
1
1
1
4
1
1
2
2
1
1
2
2
116
198
15.95
6.5
13.95
333
449.99
32.95
0.54
14.95
16.95
1
2.5
2.5
1.33
1.92
36.95
40.00
120.18
205.13
16.52
6.73
14.45
344.99
466.19
34.14
0.56
15.49
17.56
1.04
2.59
2.59
1.38
1.99
38.28
40.00
120.18
205.13
16.52
6.73
28.90
344.99
466.19
34.14
2.24
15.49
17.56
2.07
5.18
2.59
1.38
3.98
76.56
The Brick
National Hospitality Supply
National Hospitality Supply
National Hospitality Supply
National Hospitality Supply
National Hospitality Supply
National Hospitality Supply
Best Buy
National Hospitality Supply
National Hospitality Supply
National Hospitality Supply
National Hospitality Supply
National Hospitality Supply
National Hospitality Supply
National Hospitality Supply
National Hospitality Supply
National Hospitality Supply
National Hospitality Supply
1
2
1
0.25
4.69
11.95
0.26
4.86
12.38
0.26
9.72
12.38
National Hospitality Supply
National Hospitality Supply
National Hospitality Supply
1
1
3.5
36.95
3.63
38.28
3.63
38.28
National Hospitality Supply
National Hospitality Supply
$3,076.31
46
Appendix-5 Power Estimations
Assumptions (Office of Energy Efficiency, 2005)
Power estimation 2.7 GJ/m2
Electricity/heat split 65/35
Use 75% less power
1GJ=277.8 kW.h
Total Power of regular hotel
Total power of our hotel
783749.7 kW.h
Electrical Power
Solar Power =
A 100 kW system is needed to produce this power requirement. Cost of this system would
be approximately $740,000 (Heckman, 2008)
Wind Power
A 20 kW system is needed to produce this power requirement. Cost of this system would
be approximately $740,000 (Heckman, 2008)
Since there is more insulation lower heating power will be required (25% less than average
through insulation and other initiatives)
Heating Power =
This system will have an installed cost of approximately $90,000 (Department of Design
and construction, 2002).
47
Appedix-6 Financials
48
Appendix-7 References
Audubon International “Audubon Green Leaf Eco-Rating Program” Terra Choice Environmental
Marketing. Viewed Nov. 2008
< http://www.terrachoice.ca/hotelwebsite/indexcanada.htm>
Canada Green Building Council. “ New construction” Canada Green Building Council
Viewed Nov. 2008 < http://www.cagbc.org/cagbc/index.htm>
Department of Design and Construction. “Geothermal heat pump manual.”2002. New York
City. Viewed Oct. 2008
http://www.nyc.gov/html/ddc/downloads/pdf/ geotherm.pdf
Hotel Association of Canada “Green Key Eco-Rating Program” 2007. Hotel Association of
Canada. Viewed Nov. 2008
< http://www.hotelassociation.ca/site/programs/green_key.htm>
MacDonald, B. “Year-to-Date RevPAR Performances” Canadian Lodging Outlook. (July 2007).
Smith Travel Research. 2008
National Energy Foundation. “Simple Carbon Calculator” 2008. National Energy Foundation.
Veiwed Nov. 2008. <http://nef.org.uk/greencompany/co2calculator.htm>
Natural Resources Canada. “Commercial Earth Energy Systems: A Buyer’s Guide” 2002.
Natural Resources Canada. Viewed Oct. 2008
<http://www.canren.gc.ca/app/filerepository/EARTH-BuyersGuideCommercialEarthEnergySystems.pdf>
Office of Energy Efficiency. “Hospitality Sector-Saving Energy Dollars in Hotels, Motels, and
Restaurants.” 2005. Natural Resources Canada. Oct. 2008
<http://oee.nrcan.gc.ca/Publications/commercial/pdf/m144-10-2003e.pdf >
Painter, M. Commerce 447. Saskatoon: University of Saskatchewan, 2008
Saskatchewan Resource Council “Factor 9 Home: A New Prairie Approach” SRC. Viewed Sept.
2008 <http://www.src.sk.ca/html/research_technology/manufacturing/build_perform/Factor_9/>
SaskPower. “Small Power Producers Policy” 2007. SaskPower. Viewed Nov. 2008.
<http://www.saskpower.com/poweringyourfuture/opportunities/smallpp.shtml>
Solar Electric Supply. “Residential, Commercial & Industrial Solar Systems” 2008. Solar
Electric Supply. Veiwed Sept. 2008
<http://www.solarelectricsupply.com/systems/commercial/index.html>
WSE Technologies. “Wind Turbine Generator” 2008. WSE Technologies. Viewed Oct. 2008.
<http://www.wsetech.com/FD20KW.php>
49