Executive Summary
Mission Statement
To Build an American and European recognized hotel franchise in Cusco, Peru to welcome and meet the standards of American and European Tourists.
Business Opportunity
There are no major Hotel names in the City of Cuzco to welcome the high numbers of European and American tourists who represent a near 75% of all toursim in the city.
There is a need for a recognized franchised Hotel where they can expect to receive the hospitality standards they are accustomed to. We will provide these high standards of hospitality at competitive city prices. In addition, Machupichu, Cuzco’s main attraction, has recently been voted one of the new 7 wonders of the world. This has already generated very positive advertising and it is expected to raise tourism numbers to an already increasingly popular destination.
Overview of the Industry
The city of Cuzco is a Historic Inca city. Cuzco was the capital of the Inca Empire. The city and its out skirts are filled with ancient architecture. In the city, there are many ruins of ancient stone temples which after the Spanish conquest where used as the foundation for Spanish Churches and command centers. City authorities will not allow any major alterations or misuse of these historic spaces.
Around the main plaza there are many hotels from no star rating to only one 5 star hotel. Prices range from 50 dollars per night to over $1,000 per night. The average price of a 4 star hotel is in the low to mid 200’s. However, the city is completely built out and there is an expected rise in the number of tourists arriving to the city. Cuzco’s main attraction is the ancient ruin of Machupichu, which is four hours away from the city.
Cuzco’s only airport is 20 minutes from the city center, where all the hotels and tourist attractions are located. There is no open land anywhere and new competition would have to acquire an existing hotel or buy a historic structure to adapt it as best as possible to serve their needs. Our piece of land is in a prime location.
The 4 Star Hotels run at an average of 75-79% occupancy. However, a brand new 5 star hotel can expect to be “the place” to stay in Cuzco as a result of a recognizable franchise name presence which the city lacks.
Future Vision of our Company
The leader in hospitality services in the city of Cusco, Peru. The main projected customers are American and European tourist. We also expect to capture a fair share of domestic traffic from tourism and business travel. It is very difficult to find availability in the higher end hotels any time of the year and yet these hotels do not carry the name of a Major Franchise. We expect to build a hotel that will quickly become the one to operate at the highest occupancy rate in the city.
