Dreschler Hotel Trend Analysis

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Register to read the introduction… I would start with making changes in the rooms, amount of rooms, and types of rooms. For starters, let us cut back on the amount of rooms that are sharing bathrooms and create more privacy for the guest. I would ensure that all rooms and suites have their own lavoratory at minimum. Single rooms with only bedroom setting and sitting nook should have a bathroom with toilet, sink, and shower. There should be a choice of which type of single room a guest would want by changing up the beds. Offer some with two twins, or single twin and hide-a-bed sofa and of course the queen. Next room style would be more like a mini apartment suite. This would have a sitting area separate from the bedroom and bathroom. Also offer the choices of bed set-ups in the larger suites such as double twins, queen, and king. The bathroom would be the same as with the single rooms as well. There has to be a deluxe suite of some sort, a couple would be good like a Honeymoon suite or an Executive suite, or maybe both. The honeymoon suite would be approximately 800 square feet of luxury. The bedroom would be separate from the sitting room, breakfast nook just inside the balcony doors; the bathroom would be private with a bath as well as the toilet, sink, and shower. I would probably suggest this room be on the second floor with a balcony overlooking the garden and possible put a Jacuzzi on this …show more content…
We could go public and offer shares to raise money to invest into the modifications, but the problem with this is that as a business owner you will not get to keep 100% of the profits; you will be paying your shareholders a dividend. Equity investors will require a percentage of ownership as well as the return on their investment. This can also wind up being costly down the road. Another option is to acquire a loan, but most lending institutes will only lend 60%-70% of the requested amount leaving the borrower having to raise the other 30%-40% in equity. This may not be a bad deal if the equity investor does not demand a large portion of ownership and is patient on returns. Another option is a 7(a) loan since they are the simplest and most common loan type from the Small Business Association. The financing of a 7(a) loan can be guaranteed for a variety of general business purposes such as working capital, machinery and equipment, furniture and fixtures, and debt refinancing (under special conditions). Loan maturity is up to 10 years for working capital and generally up to 25 years for fixed assets (http://www.sba.gov). These types of loans are easily obtained since many banks in America participate in SBA’s program and structure the loans according the requirements of this program. The SBA shares the risk with the bank if the borrower defaults. The eligibility requirements are fairly

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