2008
Budget Review Presentation
Le Meridien Kathmandu
27/09/2007
1
Executive Summary - Overview

Overview of market conditions
Demand
 Economic indicators
-
GDP growth – 2.7%, Inflation – 5.4%
-
NRS appreciated by 10% in comparison
to US$ in 2007.
-
Key feeder market is India. As the Indian
economy continues to grow, the inflow of
Indian tourists and business people are
likely to increase as well.
 Tourism indicators


-
35.6% increase in International tourists in
the first half of 2007 compared to first
half of 2006.
-
Increase of International carriers as a
result of relative stable political scenario.
Supply
 Compset update
-
Shangri La and Malla hotels have been
upgraded as five stars. Around 200
rooms increase in Five Star category.
 New entrants
-
Possible reopening of Kathmandu Hotel
and probable introduction of Surya
Hotels in 2008 which is a brand of ITC
India. Approx. 300 rooms supply to
existing market.
Hotel positioning statement
Gokarna Forest Resorot Kathmandu is considered to be one of the premium property existing in
Nepal. Its spacious rooms, one of the best golf courses in Asia, the best spa in Nepal, 470 acres of
serene forest and being the only Certified property of the World Eco Hotels and also recommended
by the Lonely Planet Guide book and are also the Member of IAGTO. However, being located
outskirts of the city, difficulty in the approach roads, lack of shopping opportunities in and around the
property often deters suppliers to select the property for corporate guests and tourists.
2
Executive Summary - Key Performance Indicators
In Local Currency (000s)
Use latest available data for non-financial indicators and state period (eg TeamHot @ Aug 07)
Key Performance Indicators
Occupancy %
ADR
RevPAR
RPI
RPI Ranking
GOP $ (in 000s)
GOP %
Starwood's EBITDA (in 000s)
2006
Actual
22%
3,259.2
702.3
2007
FYF
33%
3,855.5
1,259.3
(4,609)
-10%
6,428
9%
16,718
16%
1,208
1,603
711
2008
Growth
Budget
07 vs 06 08 vs 07
51%
11.11
51.31
4,179.8
18%
8%
2,144.5
79%
70%
-239%
-193%
160%
73%
70%
33%
LRA
GSI
StarVoice
TeamHot ($000s)
SPG Enrolment
SPG Redemptions ($000s)

Highlight key strategies (including S&M and Operations) to achieve 2008 Budget
-
Add another 9 Deluxe rooms to the inventory.
-
Increase two Spa rooms.
-
Add another large banquet hall to the property.
-
Procure at least one more vehicle for the fleet.
3
Competitive Set Update
LM Kathmandu
% Var YOY
Occ
ADR
22% 3,291.6
RevPar Ranking
721.1
5.0
Occ
51%
55%
ADR
RevPar
4,179.8
2,144.5
9%
71%
65% 4,875.0
3,168.8
1.0
67%
3%
4,975.0
2%
3,333.3
5%
1.0
68%
1%
4,985.0
0%
3,389.8
2%
Hyatt Regency
% Var YOY
65% 3,900.0
2,535.0
2.0
50%
-23%
4,350.0
12%
2,175.0
-14%
4.0
55%
10%
4,550.0
5%
2,184.0
0%
Radisson
% Var YOY
62% 3,250.0
2,015.0
4.0
65%
5%
3,575.0
10%
2,323.8
15%
3.0
67%
3%
3,595.0
1%
2,409.0
4%
Soaltee Crowne Plaza
% Var YOY
70% 3,250.0
2,275.0
3.0
73%
4%
3,500.0
8%
2,555.0
12%
2.0
75%
3%
3,550.0
1%
2,662.5
4%
#DIV/0!
#DIV/0!
#DIV/0!
OI
2008 Budget
ARI
RPI
#DIV/0! #DIV/0!
OI
2006 Actual
ARI
RPI
Ranking
OI
2007 FYF
ARI
#DIV/0!
RPI
Ranking
LM Kathmandu
0%
0.9
0.3
5.0
1%
1.0
0.5
5.0
1%
1.0
0.6
Dwarikas
1%
1.4
1.4
1.0
1%
1.3
1.4
1.0
1%
1.3
1.4
Hyatt Regency
1%
1.1
1.1
2.0
1%
1.1
0.9
4.0
1%
1.2
0.9
98%
0.9
0.9
4.0
1%
0.9
1.0
3.0
1%
0.9
1.0
1%
0.9
1.0
3.0
1%
0.9
1.1
2.0
1%
0.9
1.1
Radisson
Soaltee Crowne Plaza

ADR
RevPar Ranking
3,844.8 1,254.5
5.0
17%
74%
Dwarikas
% Var YOY
Comp 5
% Var YOY

Occ
33%
50%
Comp 5
-
-
Dwarikas have the highest ADR with the luxury of high occupancy.
Current target for LM Kathmandu is to increase occupancy and build RevPar on it.
4
SWOT Analysis (of your hotel)
S - Strengths
W - Weaknesses
 One of the best Golf Courses in the world.
 Difficulty in road communication from the city.
 470 acres of serene forest within the boundary of
 Lack of Air Conditioning in all rooms and conference
the property in the proximity of the city.
halls.
 Largest guest rooms in Kathmandu after Dwarikas.
 Lack of good conference hall and break out rooms.
 The Brand
 Lack of entertainment options and nearby shopping
 Warm and hospitable service personnel.
O - Opportunities
 Increase in foreign airlines operating directly to
Kathmandu ( Etihad Airways, Silk Air, Korean Air,
China Southern Airlines etc ).
 New exploration of Middle East as a supply market
for Nepal.
 Declaration of more tourist destination in Nepal
including virgin mountains.
 Exploration of new market in Bangladesh.
 Growing number of International Conferences in
opportunities.
 Lack of development trainings.
T- Threats
 Breakdown in the peace process.
 Election being deferred or even worse cancelled.
 Continuation and increase of political agitation
specially in plain lands bordering India in South which
is the main route to the regular supply for Nepal.
 Deteriorating law and order situation.
 Excessive negative exposure in the International
Media and travel advisory being imposed by foreign
governments on Nepal.
Nepal.
 Extensive use of Starwood marketing channels.
5
2008 Budget – Financials Overview
In Local Currency (000s)
Rooms Profit ($)
Rooms Profit Margin (%)
Rooms Profit Flowthrough vs LY
F&B Payroll & Benefits
F&B Other Expenses
F&B Profit ($)
F&B Profit Margin (%)
F&B Profit Flowthrough vs LY
Deductions
Deductions % of GOR
Total Payroll & Benefits
Total Payroll & Benefits % of GOR
Total FTE
GOP
GOP %
GOP Flowthrough
Starwood's EBITDA
Equity Earnings
Base/License Fees
Incentive Fees
Non-Bills
Starwood's EBITDA
10,716.5
77%
3,475
7,665
5,187.7
32%
27,883.4
59%
17,926.9
37.8%
216.0
(4,609.1)
-9.7%
711.1
711.1
20,686.8
82%
88%
3,604
14,215
6,013.2
25%
11%
32,768.0
46%
17,978.9
25.2%
221.0
6,427.7
9.0%
46.0%
1,071.2
136.8
1,208.0
41,977.3
84%
87%
4,248
16,318
9,689.8
32%
44%
39,109.0
36%
22,794.8
21.1%
223.0
21,464.2
20.1%
42.4%
1,603.3
1,603.3
93%
103%
4.90
1.91
-1%
16%
61%
(6.54)
6.80
303%
18%
19%
(12.93)
(9.75)
0%
27%
(12.64)
2%
(4.11)
1%
-239%
234%
18.72
11.08
-8%
51%
50%
-100%
70%
33%
Can be dow nloaded from Cognos
6
Compset Update – Drill Down by Segment (Occ)

By Market Segment (Your hotel’s four main segments)
Retail - Occupancy
2007FYF
LM Kathmandu
Dwarikas
Hyatt Regency
Radisson
Soaltee Crowne Plaza
TOTAL
Annual
Occupied
Retail
393
1,779
10,320
4,345
18,077
34,915
Mix
6%
10%
15%
12%
25%
5%
Market
Share
1%
5%
30%
12%
52%
100%
Corporate - Occupancy
Penetration
15%
17%
280%
45%
219%
100%
Mix
Market Penetratio
Share
n
14%
30%
20%
40%
10%
6%
2%
13%
33%
35%
17%
100%
29%
42%
313%
125%
73%
100%
Wholesale - Occupancy
Mix
7%
60%
55%
40%
40%
13%
Market
Share
0%
12%
41%
16%
31%
100%
Penetr
ation
6%
38%
388%
56%
132%
100%
Available
Annual Room Nights by Segments - 2007FYF
Total Annual
Rooms Retail
Corporate Wholesale Group
Others
Occupied
LM Kathmandu
55
6%
14%
7%
19%
0%
6,550
Dwarikas
75
10%
30%
60%
0%
0%
17,794
Hyatt Regency
290
15%
20%
55%
10%
0%
68,803
Radisson
160
12%
40%
40%
8%
0%
36,208
Soaltee Crowne Plaza283
25%
10%
40%
25%
0%
72,307
Available
Annual Room Nights by Segments - 2007FYF
Rooms Retail
Corporate Wholesale Group
Others
LM Kathmandu
55
393
917
459
1,245
Dwarikas
75
1,779
5,338
10,676
Hyatt Regency
290 10,320
13,761
37,842
6,880
Radisson
160
4,345
14,483
14,483
2,897
Soaltee Crowne Plaza283 18,077
7,231
28,923
18,077
-
Total Annual
Occupied
6,550
17,794
68,803
36,208
72,307

Being a resort outside of the city penetration in corporate will always be minimum.

Could not penetrate wholesale business the way it was supposed to be but efforts are on.
7
Rooms – RevPAR Trend
In Local Currency
Occupancy
2006
2007
2008

Jan
21%
31%
48%
Feb
11%
32%
54%
Comments
Mar
24%
24%
47%
Apr
9%
34%
53%
May
8%
24%
37%
Jun
18%
28%
45%
Jul
23%
32%
52%
Aug
32%
24%
42%
Sep
10%
32%
53%
Oct
28%
54%
65%
Nov
43%
39%
63%
Dec
29%
38%
52%
FY
22%
33%
51%
Mar
3,759
3,752
3,828
Apr
3,083
4,279
3,819
May
2,951
3,817
4,006
Jun
2,598
3,634
4,158
Jul
2,768
3,879
4,144
Aug
3,241
3,721
4,968
Sep
3,948
3,918
3,811
Oct
3,269
3,918
3,979
Nov
3,109
4,044
3,979
Dec
3,930
4,109
3,890
FY
3,292
3,844
4,084
Mar
902
900
1,814
Apr
277
1,455
2,029
May
236
916
1,484
Jun
468
1,018
1,884
Jul
637
1,241
2,164
Aug
1,037
893
2,066
Sep
395
1,254
2,015
Oct
915
2,116
2,597
Nov
1,337
1,577
2,518
Dec
1,140
1,561
2,029
FY
724
1,269
2,083
ADR - Local Currency
2006
2007
2008
Jan
3,142
3,523
4,220
Feb
3,033
3,382
4,349
RevPAR - Local Currency
2006
2007
2008
Jan
660
1,092
2,042
Feb
334
1,082
2,343
3,050
RevPAR
2,550 1450
RevPAR
2,050 1250
1,550
1050
850
1,050
650
550
450
8
Rooms – Market Mix and Pricing Strategy
Retail
Corporate
Wholesale
Group
Crew
Discount & Award
Other
Total

2006 Actual
Rooms
No.
%
ADR
2,120 51% 3748
357 8% 3224
1,755 41% 2754
0%
0%
0%
4,232 100% 3292
2007 Budget
2007 YTD
Rooms
Rooms
No.
%
ADR
No.
%
ADR
4,809 58% 3640
2,064 61% 3820
0%
0%
268 8% 3058
3,090 37% 3640
1,032 31% 3992
0%
0%
359 5% 3850
8,258 100% 3649.12 3,364 100% 3812
2007 FYF
Rooms
No.
%
ADR
3,969 61%
3881
469
2,112
6,550
7%
32%
3448
3866
100%
3845
2008 Budget
Rooms
No.
%
ADR
1,792 15% 4972.97
0%
5,417 45% 3509.57
2,887 24% 3746.38
0%
1,828 15% 2084.42
0%
11,924 100% 4179.79
Market Mix and Pricing Strategy (use more than 1 slide if necessary)
-
Please see next slides.
9
Market Mix Strategy
-(2006)
Market Mix
Proper segmentation not being followed till march.
52% of business from leisure and commercial retail.
37% from Groups
Initiatives to Achieve the same.
Leisure retail-pitching for existing and new series and FIT
business from Local agents.
Commercial Group-Resident sales team actively combing market
for local groups.
Sales Blitzes with GSO in India for MICE business
Sales team of One SM, Two ASM and Sales coordinator in place
for Nepal from April 06.DSM and GM handling international S&M.
10
10
Market Mix Strategy
2007
58% i.e. 4809 rms from leisure series and FITS
This include Business from international Tour operators and local Handlers
37% i.e. 3090 rms from M.I.C.E.
Initiatives to achieve the same
Leisure Groups – IBT Series-position as a upgrade from the regular city chain
hotels, being used by running series ,at comparable rates.
Commercial Groups - Corporate MICE from local Mkt–position as the ideal location
for upper vertical meetings.
Transient FIT-Position resort as the premium FIT hotel in Kathmandu
This includes business from India & Nepal.
Sales team would have been in place for more than months. This will drive more
local business to the hotel.
11
11
Rooms – Market Mix and Pricing Strategy
2008
- Retail to remain number one in the market mix even in 2008.
Production of Wholesale is expected to grow in 2008. With the new
initiative to enhance relationship with wholesales suppliers locally
and with main feeder market-India, production from this segment is
likely to increase substantially. The post election positive changes
in sociopolitical arena should contribute to this effort. Bangladesh is
another target market in this effort.
- The basic initiative to be conducted by the DOSM in conjunction
with the GM in this respect. The GSOs around the world and the
RSOs in India to be utilized in wider manner.
- One commission based marketing partner has already been
appointed in Bangladesh for the purpose.
12
Rooms – Distribution Channel Analysis

Please outline the % mix of total room nights of your distribution channels and their avg. rate per the below
CHANNEL
GDS
CCC
Brand Web
Third Party
Web (ctrip,
wotif, ikkyu
etc.)
Hotel Direct
% of Total Room Nights
2006 FY
2007 YTD
Avg rate
2006 FY
2007 YTD
1.42
1.74
5573.85
6766.5
16.94
25.94
3595.98
4062.5
13
Rooms - Top 10 Accounts (Wholesale)
TOP 10 ACCOUNTS
2007 FYF
Worldw ays Tours & Travels
Raika Tours & Travels
Nataraj Tours & travels
Skybridge Tours & Travels
Malla Travels & Tours
Explore Nepal
My Holidays Tours & Travels
Tzell Travel LLC.
Sea & Sky Travels
Yeti Travels
TOTAL
2007
FYF
RNs
95
75
40
20
20
20
20
20
20
20
2007
Net
Rate
C o nt ra c t e d
2,210
3,250
5,850
5,200
3,900
3,250
3,900
3,250
3,575
3,900
2007
YTD
Rate
2,210
3,250
5,850
5,200
3,900
3,250
3,900
3,250
3,575
3,900
350
% of Total
Wholesal
e RNs
20%
16%
9%
4%
4%
4%
4%
4%
4%
4%
% of
Total
RNs
2%
2%
1%
1%
1%
1%
1%
1%
1%
1%
75%
9%
TOP 10 ACCOUNTS
2008 Budget
2008
RNs
2008
Net
Rate
C o nt ra c t e d
Worldw ays Travels
650
3,250.00
Tradew inds
250
3,958.00
Kapico Travels
300
5,850.00
Kuoni Travels
275
4,225.00
Malla Travels
250
3,900.00
Airspan Ltd.
200
4,225.00
Nataraj Tours & Travels
200
3,900.00
Raaika Tours & Travels
200
3,575.00
Skybridge Tours & Travels
175
3,900.00
Yeti Travels
175
4,225.00
TOTAL
2675
% of Total
Wholesal % of Total
e RNs
RNs
21%
7%
8%
3%
10%
3%
9%
3%
8%
3%
6%
2%
6%
2%
6%
2%
6%
2%
6%
2%
85%
28%
* Pls use base room types for Net Rate w hich refers to net corporate contracted rate and does not include service and tax and other inclusions eg breakfast

Tradewinds have been appointed as the exclusive agent in Singapore.

Airspan has been appointed as the marketing partner in Bangladesh.

Kapico is leading the travel agents in Dubai.

Working on new surface with Kuoni to generate new tour groups.

Malla Travels to promote new packages in WTM for LMK.
14
Rooms – Key Sales & Marketing Strategies to Achieve the Budget

Key Strategies/Initiatives to Leverage the Brand
-Increase partnership with other renowned brand name e.g Standard Chartered Bank,
Life Style Magazines, Famous liquor companies etc.
-Introduction of a in house news magazine which will emphasize the brand and will be
distributed to all the major stakeholders.
- Have increased joint ventures with electronic media e.g private TV channels and FM
Radios.

Identify your emerging markets and describe your strategy to tap on these emerging markets
-
Bangladesh, China, Middle East and Singapore are emerging market for Kathmandu.
-
Efforts are on for joint exercise in different avenues with the airlines that operates directly to
Kathmandu or will operate soon shortly ( e.g Silk Air, Etihad etc. ).
-
One marketing partner in Bangladesh has already been appointed on commission basis.
-
One travel agent has been appointed in Dubai for Middle Eastern market.
-
Working with two travel agents in Malaysia and Singapore to promote business.
-
Planning to tap into Chinese market specially in Chengdu from where China Southern Airlines operates
directly to Kathmandu.
-
Use the Starwood Marketing channels more aggressively to procure business directly from overseas.
Special emphasis to Internet & CRS reservations.
15
Rooms – Key Sales & Marketing Strategies to Achieve the Budget
 Key Sales Strategies/Initiatives
-Maintain rate integrity at US$ 60 and parity of rate in all channels.
-Pursue local and overseas incentive groups. Use Starwood GSOs around the
world for the purpose.
-Enhance relationship with local and international tour operators.
 Key Marketing Strategies/Initiatives
-Use marketing outlets of Starwood with greater vigour.
- Appoint one marketing agent in Bangladesh.
-Increase partnership program with local corporate houses and other stakeholders.
16
F&B Budget
In Local Currency
Total Labour Costs
3,474.7
% of F&B Revenue
21%
Other Expenses
7,665.0
% of F&B Revenue
47%
Total Expenses
11,139.7
F&B Profit
F&B Profit Margin (%)
F&B Profit Flowthrough
(f or Hot els wit h large weddings only)
Ave Check per Outlet Cover
Ave Check per Banquet Cover
Ave Check per Wedding Cover
Ave Check per Cover
(f or Hot els wit h large weddings only)
15%
14,214.8
60%
17,819.2
4,248.2
14%
16,317.6
54%
20,565.8
4%
18%
(6.16)
(1.08)
85%
15%
12.70
(5.71)
60%
15%
5,187.7
32%
6,013.2
25%
11%
9,689.4
32%
44%
16%
61%
(6.54)
6.79
36
36
34
0
-0.05556
Total F&B FTE
No. of Outlet Covers
No. of Banquet Covers
No. of Wedding Covers
Total No. of Covers
3,604.4
45,595
45,595
41,052
41,052
46,059
1,724
47,783
-10%
12%
-10%
16%
358.1
-
580.5
-
626.0
823.7
-
62%
8%
Can be downloaded from Cognos
Food Safety Hygiene Audit Score - Overall (%)

Include explanations on key variances and other comments
17
F&B – Key Strategies To Achieve Budget


Key S&M strategies/initiatives, including restaurant, banquet and catering
Restaurant: Tie up with various Corporate sponsored promotions: eg: October fest with a Beer company or Kids
special menu with a soft drink or juice companies
TV campaign ; to showcase our Chefs and our cuisines in cook shows with various TV companies
Poster Campaign in the market at key points
Online campaign to database; have online F & B calendar for events & promos.
Catering: Sales calls to various corporate houses for conferencing business .
Special packages for diverse corporate business; For corporate retreats or team building.
Launch tailor-made menus as per the market requirement.
Sales calls for meeting/conferencing incentives.
Corporate dinners/Cocktails/lunches, for specific sectors {eg; Travel, Exporters, etc} hosted by the management.
Key F&B operating strategies/initiatives, including initiatives to enhance F&B service delivery
Enhanced training for BWCB.
Launch incentive/reward plan for MICE drivers ,eg; Event management companies.
Enhance SOE/FFNE inventory, to keep in line with Brand standards.
Continue with Special promotions in Beverages & food
Improved breakfast service to insure enhanced satisfaction.
Improve in house capture ratio.
Guest Feed back tools to be enhanced to get a more realistic responses.
Operational strategy to reduce systems costs in delivery, to maximize profitability.
Regular rotation of menus to ensure interest for regular visitors.
18
F&B – Key Strategies To Achieve Budget






New innovations/changes to enhance and refresh F&B concepts, including any proposed
refurbishment/changes to F&B concepts
Have specialty food promotions once a month in restaurants & bars
Introduce Lunch specials for Golfers on weekends
Branding of the Bars by corporate identity.
BBQ weekend packages to be reworked & also re-priced to make it more attractive to locals & expatriates.
Rudra nite to be promoted more aggressively with corporate sponsorship.
Describe initiatives to extend revenue management to F&B
Re-pricing of all menu items to be done. Sales % hike to the tune of 12-18%
Increase the F & B component for the packages making it more cost effective
Reduce Costs by Vendor identification & negotiating for more comprehensive pricing structures, with contracts ,etc
Increase revenue by maximization of available space for POS.

Key best practice:

Aggressively promote MICE and Banquets to corporates, NGOs through telecalling, personal sales calls by F & B
executives and associates.

Update and maintain guest profile regularly using F & B outlets and services.

Promote BBQ & Rudra nite packages to Corporates & Expatriate community for bulk reservations.
19
MOD Budget
2006
Actual
MOD Revenue
Telecommunications
Laundry
Health club
Garage
Golf
Rental Income
Total MOD Revenue
MOD Expenses
Telecommunications
Laundry
Health club
Garage
Golf
Rental Income
Total MOD Expenses
MOD GOP
Telecommunications
% of Revenue
FTE
Laundry
% of Revenue
FTE
2007
Forecast
2008
Budget
392100
635741 1103000
192562
336561
380000
7149000 9064286 12377000
118450
232009
191000
7782750 10579723 12077000
1514582 1512492 1664400
17149444 22360812 27792400
Growth
07 vs 06
08 vs 07
62%
75%
27%
96%
36%
0%
30%
73%
13%
37%
-18%
14%
10%
24%
496350
374100
3735785
62%
126%
73%
42%
6791290 6815683 10233557
0
0
0
9874061 9992422.5 14839792
0%
50%
1%
49%
62%
0%
73%
0%
-4%
-45%
-92%
-93%
0%
-77%
-80%
0%
-18%
0%
176445 286083.45
116848
264240
2789478 2626416
215655 349657.55
606650
55%
55%
55%
0
0
0
75714
72321
5900
39%
21%
2%
84
72
72
Health club
4359522
% of Revenue
56%
75%
15%
82%
34%
96
118450
100%
108
232009
100%
108
191000
100%
96%
0%
FTE
Garage
% of Revenue
7953307 1843443.1
FTE
Golf
% of Revenue
FTE
Rental Income
991460
13%
882
1514582
3764040 1843443.1
36%
15%
864
876
1512492
1664400
280%
179%
-51%
-57%
1%
0%
10%
20
Overheads and FTE

A&G Labour Costs
% of GOR
A&G Others
% of GOR
S&M Labour Costs
% of GOR
S&M Others
% of GOR
Property Ops Labour Costs
% of GOR
Property Ops Others
% of GOR
Utilities
% of GOR
2006
Actual
3848.78
2007
Forecast
3918.325
2008
Budget
4499.4
8%
5%
0%
5068.12693
7386.40133
9787.02893
11%
10%
9%
1649.987
1336.089
2433.975
3%
2%
2%
2187.578
2854.331
5946.19162
5%
4%
6%
1332.536
1359.442
1322.19
3%
2%
1%
3566.8525
3355.6166
4922.65
8%
5%
5%
10229.513
12557.7468
14697
22%
18%
14%
27883.3734
32767.9517
43608.4356
59%
46%
41%
Growth
07 vs 06 08 vs 07
2%
15% 
46%
33%
-19%
82%
30%
108%
2%
-3%
-6%
47%
23%
17%
18%
33%
4%
0%
3%
0%
0%
0%
20%
2%
11%
-6%
6%
22%
14%
-29%
-100%
1%
Include explanations on key
variances and other comments
Key best practice:

Multi Skilling

Reviewing the qualification,
capabilities & productivity of all
associates and removing the
deadwoods.

Proper evaluation of associates
to be practiced by HODs by
purely based on performance.
Others
% of GOR
Total overheads
% of GOR
FTE
Rooms
F&B
MODs
A&G
S&M
Prop Ops
Other departments
Total Hotel FTE
Contract labor (FTE)
Outsouced (if applicable)
Total FTE
27.0
36.0
93.0
27.0
7.0
21.0
5.0
216.0
28.0
36.0
96.0
27.0
7.0
21.0
6.0
221.0
31.0
34.0
102.0
33.0
8.0
15.0
223.0
216.0
221.0
223.0
21
Overheads – Energy Efficiency Initiatives
2006
Actual
Utilities
2007
Forecast
10229.51 12557.7468
2008
Budget
14697
% of GOR
22%
18%
14%
% of Total Overheads
37%
38%
38%
Growth
07 vs 06 08 vs 07
23%

Highlight initiatives and actions plans to reduce energy costs

Describe key best practice/Six Sigma project ideas focusing on reducing energy costs
17%
22
Capital Plan
2006 Opening Balance
-
Add Contribution
-

Increase of 9 new Deluxe Rooms.
Less Expenditure
-

Increase of three spa treatment rooms.
2006 Closing Balance
-

Procurement of vehicles.

Fire and Safety compliance as per Starwood audit.

Extension of Kitchen.
2006 Opening Balance
Add Contribution
Less Expenditure
2006 Closing Balance
-
2007 Opening Balance
Add Contribution
Less Expenditure
2007 Closing Balance
36,916,450.0
16,500,000.0
(21,000,000.0)
32,416,450.0
2008 Opening Balance
Add Budgeted Contribution
Less Budgeted Expenditure
2008 Closing Balance
32,416,450.0
71,662,325.0
(71,662,325.0)
32,416,450.0
In 000s (Local Currency)
Total
Project Description
Priority
Project Cost
Fire and Safety
1
5671390
800000
Laptop, Computers & Printers
Vehicles for GM, Sales Asso & Guests
1
6500000
Addition of Guest Rooms as per Brand Standard1
2130750
Increase in Spa Facility
1
1323000
Banquet Hall
1
9000000
Q1
2671390
300000
3500000
1000000
523000
3000000
2008 Budget
Q2
Q3
1000000
10000
200000
2000
1000000
10000
500000
3300
300000
3000
2000000
20000
23
SPG Objectives and Strategies
Room
Nights

Qualifed
Enrolments
2006 Actual
325
-
2007 YTD
2007 Budget
YTD Achievement over Budget
280
-
2008 Budget
400
Free Nights
Redemption
US$
-
In Hotel
Redemption
US$
-
-
N/A
N/A
2008 Key Objectives and Initiatives to Drive Enrolment, Redemption and Recognition
-
Annual cash incentive to be given to the employee who achieves highest enrollment of SPG members.
-
Appointment of one Guest Relation Manager for SPG.
-
Front Office to take initiative to find out whether a guest is SPG member or not.
-
Non resident guests to be encouraged by F & B and Spa to become SPG member.
24
Human Resources – Objectives and Initiatives

General HR Overview:

- Two HODs have left the property in last one year.

- Employee turnover - 220 in 2007.

Major HR Challenges:
-
- Absence of qualified HRM.
-
- Emergence of new workers union in the property ( Maoist )
-
- Lack of participation in the Starwood training programs.
-
- Lack of participation in the HR tools.

Plans to address Challenges
-
- Appointment of a Qualified HR & Training Manager
-
- Ensure participation in Starwood programs.

List new initiatives to address building organization bench strength:
-
- Review the qualification & abilities of existing HODs & to strengthen their skills by providing proper training
and exposure to Starwood tools.
-
- Hiring of new HODs to be approved by Starwood.

List department heads and above positions which are vacant at the moment:
-
HR/Training Manager
-
Director F & B
-
Revenue Manager
-
Spa Manager
25
2007 Year End Projects, Resources and Forecasted Financials
Director of Six Sigma, Black Belt Name :
Green Belts Name
Job Title
*Active / Inactive
Inactive
*(Active is defined as completing at least 1 project in 2007)
Projects Completed or in Progress
Project #
Project Title
Addition of a new and larger banquet hall
Depts
Affected
F & B and
Rooms
Division
Process
Impacted
MICE
Project
Classification
Category
Construction
Benefit
Type
1
Phase
Revenu
e
Generati
on
Total
Financial
Benefit
Impact
NRS’000
5832
26
2008 Projects Pipeline
Project #
Project Title
(if any)
BB, GB or
Regional *
Benefit Type
Type 1 or 2
Total Financial
Benefit Impact
NRS’000
GSI / StarVoice
(if any)
1
Construction of Banquet Hall
1
369
2
Increase in spa Facilities
1
820
*(Enter Regional if you believe the project should be a regional project as it impacts and will benefit multiple hotels in the area.)
27
2008 Six Sigma Budget Cost Summary
Training Type
Training Information & Budget Requirements
GB Training
High Potential GMs Candidates must be GB trained. Goal is to have
minimum 3 Active Green Belts.
Individual EXCOM
Required SSC
Training
New Executive Committee Members with no previous SSC Training
# of
Participants
1
Total Cost
in NRS
3,20,000
28
Financial Risks and Opportunities (not included in Budget)
Highlight any risks (ie downsides or negative impact) and opportunities (ie upsides or positive impact) in the Budget.
Quantify the impact of these risks and opportunities on GOP and Starwood EBITDA
Note that the financial impact of these risks and opportunities are NOT included in the Budget (upsides or downsides to the Budget)
R
Delay in construction of Spa Rooms
High
-820
R
Constitutional Assembly Election not held in time
High
Sub-total - Risks
O
Increase in operation of International Airlines
-9,189
High
Sub-total - Opportunities
Net Risks & Opportunities - Impact on Starwood EBITDA
4,000
4,000
TOTAL RISKS & OPPORTUNITIES
Net Risks & Opportunities - Impact on GOP
-8,000
-5,189
Low
Medium
High
Total
0
0
-5,189
-5,189
-460
29