LEAF CAY BAHAMAS BUSINESS PLAN
Leaf Cay is a 15 acre island in the Exumas in the Bahamas. Leaf Cay will provide luxury and quality resort
service , land subdivision development, and a full service marina located in the popular Exumas island
chain just 80 miles from Nassau, the capital of the Bahamas and only one hour by air from southeast
Florida cities.
Executive Summary:
We seek funding for the development and construction for this marine oriented destination
resort/community in a small private island setting. The resort community is located in the center of
current island ownership and development by well known celebrities, heads of state and captains of
industry. Recently, in the Friday, July 29, 2011 Real Estate section of the Wall Street Journal, an article
was published detailing the discovery of this beautiful chain of islands (The Exumas) by the Rich and
Famous of the world. See the attached Wall Street Journal article marked Exhibit A for full details of
other island construction and ownership.
This particular private island, Leaf Cay, is the only private island in this area that is connected to the
main electrical grid, BEC (Bahamas Electric Company) via a 2 mile underwater electrical cable. This
eliminates the usual costly expense of supplying power via Diesel operated generators.
The resort community will offer luxury hotel, hospitality, restaurant and marina services hereto never
offered in a private island atmosphere within this unique area. Complete with private community
swimming pool, private beaches, restaurant, marina slip rentals, guest accommodations, planned island
events, entertainment, and retail marine and gift shops. The planned resort community will also offer
the opportunity for guests to purchase land for private villas development, as well as townhome villas.
The planned resort community will also offer the unique over water bungalows for rental like those
seen in the South Pacific. Leaf Cay will be the first project within the Bahamas Archipelago to offer
these types of accommodations in a resort environment.
Ideal property location:
The resort community is located just two miles from Staniel Cay, a well known moderately priced major
resort hub with a 3,000 foot public runway, small hotel and marina with regular air service. It is also
located in the well traveled Exumas chain frequented by large Private and charter Mega yachts, cruising
yachts and hotel guests seeking the ultimate island experience.
The Bahamian government is currently planning the extension of the runway at Staniel Cay from 3,000
feet to 5,000 feet. In addition, it has already built a new Customs / Immigrations building that is
scheduled to open in the very near future. As such, non-stop direct air travel to Staniel Cay will become
possible from anywhere in the world.
The resorts in the area include: Highborne Cay, Marina, see:
http://marinas.com/view/marina/6284_Highbourne_Cay_Marina_EX offering only marina services.
Staniel Cay Yacht Club: http://www.stanielcay.com/ marina and limited moderate accommodations.
Airstrip, air service. 2 miles from Leaf Cay)
Musha cay, a private home without marina, beginning at $150,000 for 4 days.
http://www.m ushcay.com
Sampson Cay offering marina, individual accommodations, limited dining;
http://www.sampsoncayclub.com owned by John Malone of telecommunications fame.
Compass Cay: offering small marina and 2 moderate priced guest homes: see: http://
www.compasscay.com
The foundation for this plan is a combination of primary and secondary research and experience in the
area upon which the marketing strategies are built. Discussions and interviews were held with a variety
of individuals involved with other similar venues to develop the pro-forma data, review the market
potential and competitive situation.
Leaf Cay’s Operational partners, Peter Vazquez, and Kimberly Thomas have been providing Mega Yacht
charter service through the Exumas chain of islands for the last 10 years. Their Yacht management
company, Island Time Ventures, owns and manages a variety of yachts based in Nassau, whose primary
cruising grounds are the Exumas Islands. The company has a well established, long term clientele list
that it will use to draw upon for potential private and townhome villas purchasers, as well as guests for
the main resort. Island Time Ventures has a long standing relationship with the Atlantis Resort based in
Nassau, and is the primary entity providing yacht charter services for the Atlantis properties, as well as
for the Bahamian government. See Exhibits B, & C, for Resumes for Peter Vazquez and Kimberly
Thomas respectively.
Business Plan Purpose:
Considering the current economic climate whereby lenders have numerous investment opportunities
from which to choose, this plan describes our vision and how we intend to implement and make it a
successful entity.
Leaf Cay partners have made an in depth analysis of the intense demand for these private island
properties and the resultant competitive atmosphere and concluded that the project has an excellent
chance for success. The Government of the Bahamas can no longer offer islands for sale. The only way
to purchase an island is to buy an existing island from a private seller. The demand for these unique
private islands in this area has continued to grow, while the supply has steadily dwindled to only a
remaining couple of islands.
Business Plan: Leaf Cay partners have developed this disciplined planning methodology to assist the
project to anticipate its start up costs and other critical information to arrive at their realistic plan.
Outside guide from Government and Professionals:
Leaf Cay partners has sought and recruited services from architects, Bahamas government officials,
marine consultants and financial advisors. They will continue to seek out any and all required
professional entities to complete their vision.
Objectives of Leaf Cay Partners:
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Attract investment/mortgage funding
Focus ideas and implement vision
Identify and quantify objectives
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Track and direct growth
Create benchmarks for targeting success.
The goal of Leaf Cay partners is the creation and funding of a marine oriented destination resort,
specializing in the private island “getaway” atmosphere to provide the ultimate island experience in the
Bahamas island chain. Leaf Cay partners is soliciting commercial finance partners who share its vision
and desire to participate in this unique and exciting business opportunity in the resort area of the
Bahamas. The integration of these disciplines results in extensive and innovative services set in a private
luxury island surrounding for our prospective guests whether they come by private yacht, jet or
commercial airline carrier.
Management &Organization Summary.
Peter Vazquez and Kimberly Thomas will manage all aspects of the business and service development to
ensure effective customer responsiveness. Qualified resort associate professionals will provide
additional support services. Support staff will be added as guest and or patron load factors mandate.
The resort will hire Bahamian personnel to staff the majority of all aspects of the resort drawing from a
pool of qualified applicants from Black Point, Long Island, Nassau and other surrounding areas. Leaf Cay
partners will institute a very regimented training program for these personnel specifically targeted in the
areas of service for the resort market.
Corporate Development Plan
For the purposes of this Business Plan document, Leaf Cay Partners, Phase I, Phase II and Phase III, for
developmental growth are defined below.
Phase I.
After closing on the purchase of the island, our intentions are as follows for Phase I of this project.
Initiate and conclude the required Environmental Impact Study.
Submit to the BIA (Bahamas Investment Authority) the finalized overall Development project for the
island.
Dredge the areas designated for the marina / docks.
After completion of dredging, begin the construction of the new marina docks.
Build out the overwater bungalows for the resort
Complete site survey and designate the lot lines for the various private villas and townhome villas
Complete overall site survey for all common areas, pools, spa, restaurant, bar, staff housing, etc.
Phase II
Initiate all marketing plans and utilize the bungalows and marina docks as ways to bring prospective
property buyers to the island.
Initiate construction of the Restaurant / Bar / Pool areas
Build out a Model Private Villa
Build out a Model Townhome villa building
Begin overall Landscaping as designated per site plan
Phase III
Complete construction of all common areas, including Restaurant / Bar, pools, etc.
Follow up with mass marketing for the real estate sales for private and townhome villas
Begin building out of Pre –sales units
Complete all common areas, and Landscaping as per site plan
Resort and Marina Overview:
Establishing an island resort venture will take some time as the research revealed word of
mouth/recommendations/referrals and value as the primary way in which the hotel, marina, resort
services are selected by new guests. The uniqueness of a private island destination resort will stand
alone above other venues in the area. The Island of Leaf Cay offers a very unique opportunity for the
ownership of both private villas as well as townhome villas not currently available anywhere else within
this region. The combination of the resort environment consisting of private and townhome villas
available for rental, along with the unique overwater bungalows, makes this project attractive to a wide
array of clientele. The marina aspect, capable of handling yachts of all sizes from mid size to mega
yachts, will provide another dimension which will ensure the success of the project. Leaf Cay will be
positioned as the Premier Exclusive destination in the Exumas for property owners, resort guests, and
the yachting community.
Competitive Advantage:
The strengths of Leaf Cay Partners include Peter Vazquez’s broad base of experience in the Bahamas
developed over the past ten years, along with his close association with the Atlantis Resort. In addition,
a ten year client base of upper level wealth clients who have chartered the numerous yachts that Island
Time Ventures has managed, will provide an excellent and lucrative prospective client base for villas
sales as well as future resort guests. His own individual cruising experience and associations brings an
additional advantage to this venue.
Currently the range of venues consist of marinas only, small island outposts and extremely high priced
individual island rentals without marina accommodations. There is no other resort destination in the
area that can offer competition in the way of ambience, service and accommodations combined with a
marina environment.
With respect to the sale of real estate including private villas or townhome villas, this opportunity does
not exist anywhere within this chain of islands within a private island resort environment.
Market Analysis:
Leaf Cay partners like all business ventures is affected by forces and trends in the market environment.
These include economic, geographical, competitive, legal/political and technical.
Economic Environment:
Positive forces include the vast array of developments and construction currently in the area, ( see
attached Wall Street Journal Article , Exhibit A ) as well as being within close reach from all major U.S.
markets and being within reach of thousands of boaters, and frequent travelers from Florida, the
Northeast and Midwest U.S. and Canada. The close proximity to Florida offers an affordable alternative
to a long distance overseas vacation destinations. Currently, the yacht charter market in the Bahamas is
enjoying large success due to its close proximity to the yachting capital of the U.S., the Ft. Lauderdale /
Miami area as well as other East coast Florida areas.
Geographical/Competitive Environment:
Leaf Cay is Located within the Exumas chain and close proximity to Nassau, the capital of the Bahamas.
It is only an hour flight from the East coast of Florida. This area lies within the popular cruising ground
of Florida and international boaters as well as air travelers. The Exumas chain has several opportunities
for the marine and flying community to visit various sites of interest including, Thunderball Cave of
James bond fame, the swimming pigs at Big Majors, The Exumas Land and Sea Park, as well as various
scattered towns and developments.
Legal/Political Environment:
Leaf Cay partners will not move the project forward until it has obtained all needed licenses required by
the Bahamian government. As faced by all business, the proper insurance needs shall be met and all
operations and policy manuals shall be reviewed by needed legal expertise. The resort will obtain all
necessary building and licenses prior to construction. The Bahamian government is a politically stable
environment with numerous investor incentives.
Resumes:
Operational Partners, Peter Vazquez and Kimberly Thomas. Financial Partner / Owner, Roger Cardinale.
See Exhibits B, C, and D respectively.
Mission Statement:
The goal of Leaf Cay partners is to provide the ultimate tropical private island experience to the owners
of the villas and guests of the resort, as well as the yachting community.
Company Business Plan Objective:
This business plan serves to detail the direction, vision and planning to achieve our goal for providing the
ultimate private island experience and comprehensive hospitality services. Our plan objectives are:
Attract $3,700,000 loan to secure the purchase and development of the property.
Secure and Establish long term financing for construction build out
Secure and provide traditional financing for clients for the purchase of private and
Townhome villas.
Focus ideas and establish goals
Identify and quantify long term expansion
Leaf Cay will fill a niche not presently available, namely a private island experience within reach of a
large demographic population. Combined with an on site restaurant, infinity pool and bar, marina, spa,
hotel guest accommodations, private and townhome ownership, and private beaches, we will
differentiate ourselves from others by becoming a boutique style island resort located in the Exumas
Archipelago. With planned construction of unique over water bungalows and marina, Leaf Cay will
form the basis of a highly profitable venture set in a unique island setting.
Company Summary:
Ownership: : corporation, LLC , how structured?
Leaf Cay Partners is an investment syndicate consisting of Roger Cardinale, Peter Vazquez and
Kimberly Thomas.
Peter and Kim will oversee the day to day operations of the resort and marina along with a dedicated
and well trained staff comprised of Bahamians from various areas.
Technology Environment:
Ready access to the internet provided by Exumas Wifi will be implemented and used to cut
telecommunications costs as well as being in constant contact with our Florida location.
Computer programs greatly simplify the financial recordkeeping for today’s business and as such Leaf
Cay partners will need to watch and monitor costs closely. By utilizing software packages available in
the marine and hotel industry, including room and facility management database, controlled bar and
inventory measuring systems, and room key cards that allow guests to charge directly to their room or
marina slip account, this technology shall assist management in controlling costs, reducing cash
management and maximizing revenue. Leaf Cay partners shall attract the resources necessary to train
and operate the system in order to generate the reports and manage inventory.
Competitive Environment:
A list of other marine resorts in the Exumas is as follows:
Highborne Cay marina only rate:
See Exhibit E
Sampson Cay marina & cottages: Rate: See Exhibit F
Compass Cay, marina & guest cottages: rate: See Exhibit G
Staniel Cay Yacht Club: marina & guest cottages: rate: See Exhibit H
Musha Cay: private estate no marina; $150,000 4/nights minimum)
Leaf Cay partners resort is attempting to carve out a distinct segment of the resort market, that of a
boutique style, high line private island experience at pricing geared to a wide spectrum of groups.
A review of competitors marketing strategies, reveals no one targeting or offering this market segment.
The resort business is a referral driven business, and new business can be obtained by encouraging and
rewarding present guests to refer future guests. Networking with the long term yachting community
that has been cruising through this area for years will provide an excellent initial marketing target
segment. Live entertainment on the weekends will add excitement to the resort and draw community
residents and guests from other properties.
Market Research:
Throughout the past 10 years, we have had the opportunity of experiencing first hand the request and
demand for a quality resort environment within the Exumas Cay areas, specifically the area between
Highborne Cay and Staniel Cay. This area is the prime cruising area for private and charter mega yachts,
as well as the general boating community. This specific target area does not currently provide the
opportunity for land ownership on a private island or resort setting. The close proximity to Nassau also
provides the attractive option of villa ownership by local Nassau residents, as well as nearby Florida
residents. With the expansion of the runway at nearby Staniel Cay, along with the Customs facility, this
will provide a unique and convenient opportunity for travelers worldwide to access Leaf Cay.
Northern vacationers are drawn to warmer climates to escape the winter months. The yachting sector
might be guests on a charter yacht or a Florida boater looking for an alternative to the other islands.
Marketing strategies will build on this model, taking advantage of precipitating events, fostering word of
mouth recommendations and creating satisfaction through interacting with future or present guests.
Industry keys to success:
A private island destination resort designed for the villa owners, guests and marina patrons
Frequent Guest reward program
Controlled overhead and operations costs
Regular and ongoing guest feedback
Latest technology/software capacity
Weekend events, entertainment
Unique and comfortable atmosphere
Dedicated management and associated support staff
Summary of opportunities and Threats in the Environment
Overall the private island environment appears very positive for Leaf Cay Partners. The forces driving
the market demand, mainly economic and geographical are strong for this sector with more people
choosing to stay closer to the United States for shorter getaways and their comfort level of visiting the
Bahamas, one of the worlds premier travel destinations. The competition that exists is minimal and not
in the same genre.
Strategy & Implementation: This business is driven by referrals a repeat business, so for the first few
years Leaf Cay Partners will need to be aggressive in attracting new guests. The marketing strategy is
subject to change upon guest feedback and surveys.
Marketing Strategies:
Target markets, the yachting sector, the yacht charter sector, major cities with an hour flight from the
island, including the Florida markets.
Target Markets – Consumer:
New visitors traveling to the area.
Middle and upper income bracket
Returning visitors to the area
Business needing a small enclave for events
Area weddings
Destination weddings
Couples
Yacht charter captains
Florida boating population
Yacht Regatta Planners
Yacht Clubs
Waterfront communities that have marinas
Event Planners
Second home owners and renters of same.
Positioning and Product Strategy:
For its guests, Leaf Cay will be positioned as a new, beautifully landscaped, nature filled unique island
atmosphere resort hotel, with bar lounge, marina, pool service that fits an adult “getaway” market
niche, as well as a family resort. A full range of referral services, ie, restaurant, recommendations,
events will be made available and tailored to the needs of the particular guest.
Business services range from island wi-fi internet and telephone availability to each room along with on
site-fax services. Leaf Cay partners will aim to attract business guests and their partners who need a
small enclave to hold private meetings in an island setting in order to even out revenues throughout the
week.
Distribution Strategy:
Unlike products that are produced, then distributed and sold, hotel and resort services are produced
and consumed simultaneously in a real time environs. Thus, distribution issues center on making the
services available in a convenient manner to the greatest number of potential guests. Leaf Cay Partners
will maintain a main office staff member and on site managers available 24 hours day so that guests are
able to get answers and solutions to any questions or needs that they have. This flexibility is especially
attractive to the business and vacation traveler. Clients will be able to contact Leaf Cay Partners by
telephone, fax and internet.
Pricing Strategy:
Resort and marina fees have been developed. The fee schedule takes into account seasonal rates that
are common in the area. For business and other large group functions pricing can be discounted
depending upon the number of rooms or marina slips reserved. The following are sample rates.
Marina Rates:
Slip Rental Fees
$ 2.75 / ft
Electric
$ .65 / KW
Water
$ .50 / Gl
Villa & Bungalow Rentals:
Overwater Bungalow Rentals
$ 400 - $500 / night
Beachfront Villa Rentals
$ 2,000 / night
Other Villa Rentals
$ 1,500 / night
Townhome Villas Rentals
$ 1,000 / night
Service and support philosophy:
By giving care and consideration to customer responsiveness, Leaf cay Partner’s goal will be to meet and
exceed every service expectation of its hotel, marina and restaurant bar services. Our guests can expect
quality service and a total quality management philosophy throughout all levels of the staff.
Promotion Strategy:
Promotion strategies will vary depending on the target market segments. Given the importance of word
of mouth referrals among all market segments when choosing a destination resort or small business
meeting place, our efforts are designed to create awareness and build referrals. A cost effective
campaign focused on direct marketing, publicity, our frequent guest reward program and targeted
advertising is being proposed.
Marketing Plan:
New Business Segment;
A direct marketing package consisting of a tri fold brochure, letter of introduction and reply card will be
sent to a list of potential guests. This list will be compiled from various sources including previous yacht
charter clients, U.S. Documented lists of yacht owners and Secretary of State Incorporation registrations,
business license applications, and announcements from both U.S. and Bahamian Press. An online email
campaign will be directed at yacht owners and crew of yachts over 40 feet both domestic and
internationally.
The brochure and letter introduces Leaf Cay, stresses the importance of having a great time in a private
island setting, provides information on our resort services and describes what sets us apart from other
venues in the area. The initial mailing may contain promotional offer, the opportunity to receive a
discounted rate for first time visitors.
Approximately two months after the mailing, an additional letter shall be sent. The potential guest
would be asked to address any questions and the follow up would remind them to visit the property on
their next sojourn to the Bahamas. Additionally, new businesses will be targeted and sent information.
The cycle would repeat itself with new target communities and select businesses and would continue
through the first year. After that additional mailings would be conducted as needed based upon
occupancy goals.
Leaf Cay will also institute an interactive website and develop a mailing list with on going events, photos
of guests, and newsletters. The newsletter will be used to update clients of the resort and potential
guests on area related developments but also serves as a reminder of the uniqueness of the Leaf Cay
resort. The newsletter will also be available in printed form for current visitors and guests, potential
guests at the property itself and will be in the welcoming package which will be given to marina slip
occupants.
Publicity and Public Relations:
A news press release will be sent to marine publications and magazines announcing the launch of Leaf
Cay resort. Area talent searches will be conducted to secure weekend entertainment.
Membership in the Bahamas Hotel Association as well as in the Bahamas Marina association will be
secured in order to provide networking within the community as a low coast way of increasing
awareness and building goodwill within the Bahamas community.
Guest Reward Programs:
For present guests, Stay 6 nights and get the seventh night for free promotion as a means of building
business by word of mouth, present customers should be encouraged and rewarded for referring future
guests. This can be accomplished by offering a small rebate (5% or 10% rebate on first night stay) to
current customers who successfully refer a new guest.
Advertising:
Advertising is utilized primarily to attract new guests and serves to build awareness and brand
recognition of the resort in general, which is important for word of mouth referrals.
Periodic advertising in target market area newspapers both in the U.S. and the Bahamas will afford Leaf
Cay name recognition benefits. From quarter page ads announcing its ongoing events and promotions
to business size card sized logo ads.
Internet, Google, directory paid advertising and advertising on travel and marine sites will direct
potential visitors looking for a destination not previously known. Publications such as the Complete
Angler, which is targeted towards the marine visitor and distributed throughout the Bahamas would be
a consideration.
Reciprocal trade agreements: reciprocal trade agreements with broadcast media will be explored to
deliver the most potential guest base.
Trade only marine publications would bring awareness of the resort to the professional marine
community.
Free boating magazines will be placed at various locations with a “courtesy of leaf cay resort” label
attached.
Flyers and printed announcements will be passed out to fuel docks, posted on public bulletin boards,
Passing boaters, including a coupon for one free drink, first time visitors only.
Example Promotion Budget 2012
Interactive web site development
& internet advertising
$ 7,000
Newspaper advertising
$ 10,000
Database development
$ 5,000
Printed color brochures
$ 10,000
Print Advertising
$ 20,000
Promotional opening event
$ 20,000
Reciprocal trade agreements
(actual costs based on 2 for 1 ratio)
$ 10,000
Total:
$ 82,000
Objectives have been established for Leaf Cay Resort so that actual performance can be measured and
thusly at the end of the first year of operation, Leaf Cay should have an occupancy rate of 50% percent.
Each subsequent year new objectives will be set for these benchmarks and actual performance will be
measured against them. If actual performance falls short of objectives, investigation will be made into
the cause, plans will be adjusted accordingly.
In addition, it is recommended that Leaf Cay resort keep track of the source of all new clients, ie, where
did you hear about us, in order to measure the effectiveness of each type of promotion. Each
subsequent year’s budget should adjust spending towards the types of promotions that reach the most
new guests.
Customer satisfaction is most directly reflected in year to year customer retention percentage. All lost
customers should be investigated to find out why they left. A customer satisfaction survey may be
considered after 3 to 4 years of operation.
Start – Up and Financial Projections: