December 2011, Half-Year 0/16

IndustryMasters Hotel

Manage a hotel group and expand into different market segments. You compete against four virtual competitors, the 'US Resorts Corp', 'EuroComfort Group', 'Gulf Star' & 'Global Inn'.

Simulation Run Time
The simulation will run for 16 Half-Years (8 years), at a screen-refresh rate of 6 minutes per simulated Half-Year. The simulation round therefore lasts 96 minutes - plus some start up time, as you familiarise yourself with the screens.

Topics Covered
Strategy, Market Segmentation, Product Lifecycle, Portfolio Management, Competitive Advantages, HR Management, Asset Management, Finance, Issue/Buyback Shares.

Your Starting Position
The initial share capital is 60.00M$ and your available investment budget is 54.20M$. Your company has already invested into 3 product lines: New York City Budget, Paris City Budget and Berlin City Budget. You are competing against 4 virtual competitors: EuroComfort Group Inc., Global Inn Inc., Gulf Star Inc. and US Resorts Corp Inc.

Hotel Categories

Berlin City Budget

Initial Investment: 27.60M$
# Rooms: 230
Product Life Cycle: 54 months
Construction Time: 12 months

Room Rate: 100$
Room Revenue: 0.69M$ / Month
Staff: 36

London City Budget

Initial Investment: 23.04M$
# Rooms: 192
Product Life Cycle: 54 months
Construction Time: 12 months

Room Rate: 100$
Room Revenue: 0.58M$ / Month
Staff: 30

New York City Budget

Initial Investment: 31.20M$
# Rooms: 260
Product Life Cycle: 54 months
Construction Time: 12 months

Room Rate: 100$
Room Revenue: 0.78M$ / Month
Staff: 41

Paris City Budget

Initial Investment: 21.12M$
# Rooms: 176
Product Life Cycle: 54 months
Construction Time: 12 months

Room Rate: 100$
Room Revenue: 0.53M$ / Month
Staff: 27

Copenhagen City Budget

Initial Investment: 23.60M$
# Rooms: 197
Product Life Cycle: 54 months
Construction Time: 12 months

Room Rate: 100$
Room Revenue: 0.59M$ / Month
Staff: 31

Mumbai City Budget

Initial Investment: 28.80M$
# Rooms: 240
Product Life Cycle: 54 months
Construction Time: 12 months

Room Rate: 100$
Room Revenue: 0.72M$ / Month
Staff: 37

Stockholm City Budget

Initial Investment: 22.00M$
# Rooms: 183
Product Life Cycle: 54 months
Construction Time: 12 months

Room Rate: 100$
Room Revenue: 0.55M$ / Month
Staff: 29

Rio De Janiero City Budget

Initial Investment: 30.00M$
# Rooms: 250
Product Life Cycle: 54 months
Construction Time: 12 months

Room Rate: 100$
Room Revenue: 0.75M$ / Month
Staff: 39

Buenos Aires City Budget

Initial Investment: 28.60M$
# Rooms: 238
Product Life Cycle: 54 months
Construction Time: 12 months

Room Rate: 100$
Room Revenue: 0.72M$ / Month
Staff: 37

Abu Dhabi Business

Initial Investment: 45.00M$
# Rooms: 223
Product Life Cycle: 57 months
Construction Time: 12 months

Room Rate: 160$
Room Revenue: 1.07M$ / Month
Staff: 60

Beijing Business

Initial Investment: 54.19M$
# Rooms: 269
Product Life Cycle: 57 months
Construction Time: 12 months

Room Rate: 160$
Room Revenue: 1.29M$ / Month
Staff: 72

Berlin Business

Initial Investment: 44.51M$
# Rooms: 221
Product Life Cycle: 57 months
Construction Time: 12 months

Room Rate: 160$
Room Revenue: 1.06M$ / Month
Staff: 59

Cape Town Business

Initial Investment: 41.61M$
# Rooms: 206
Product Life Cycle: 57 months
Construction Time: 12 months

Room Rate: 160$
Room Revenue: 0.99M$ / Month
Staff: 55

Chicago Business

Initial Investment: 45.96M$
# Rooms: 228
Product Life Cycle: 57 months
Construction Time: 12 months

Room Rate: 160$
Room Revenue: 1.09M$ / Month
Staff: 61

Dubai Business

Initial Investment: 40.64M$
# Rooms: 202
Product Life Cycle: 57 months
Construction Time: 12 months

Room Rate: 160$
Room Revenue: 0.97M$ / Month
Staff: 54

London Business

Initial Investment: 48.38M$
# Rooms: 240
Product Life Cycle: 57 months
Construction Time: 12 months

Room Rate: 160$
Room Revenue: 1.15M$ / Month
Staff: 65

New York Business

Initial Investment: 53.22M$
# Rooms: 264
Product Life Cycle: 57 months
Construction Time: 12 months

Room Rate: 160$
Room Revenue: 1.27M$ / Month
Staff: 71

Hong Kong Business

Initial Investment: 43.28M$
# Rooms: 215
Product Life Cycle: 57 months
Construction Time: 18 months

Room Rate: 160$
Room Revenue: 1.03M$ / Month
Staff: 58

Johannesburg Business

Initial Investment: 43.65M$
# Rooms: 217
Product Life Cycle: 57 months
Construction Time: 12 months

Room Rate: 160$
Room Revenue: 1.04M$ / Month
Staff: 58

Sao Paulo Business

Initial Investment: 57.19M$
# Rooms: 284
Product Life Cycle: 57 months
Construction Time: 12 months

Room Rate: 160$
Room Revenue: 1.36M$ / Month
Staff: 76

Cairo Business

Initial Investment: 38.63M$
# Rooms: 192
Product Life Cycle: 57 months
Construction Time: 12 months

Room Rate: 160$
Room Revenue: 0.92M$ / Month
Staff: 52

Shanghai Business

Initial Investment: 45.76M$
# Rooms: 227
Product Life Cycle: 57 months
Construction Time: 18 months

Room Rate: 160$
Room Revenue: 1.09M$ / Month
Staff: 61

Singapore Business

Initial Investment: 47.04M$
# Rooms: 233
Product Life Cycle: 57 months
Construction Time: 18 months

Room Rate: 160$
Room Revenue: 1.12M$ / Month
Staff: 63

Nairobi Business

Initial Investment: 39.70M$
# Rooms: 197
Product Life Cycle: 57 months
Construction Time: 12 months

Room Rate: 160$
Room Revenue: 0.95M$ / Month
Staff: 53

Abu Dhabi 5 Star Luxury

Initial Investment: 65.05M$
# Rooms: 141
Product Life Cycle: 63 months
Construction Time: 18 months

Room Rate: 350$
Room Revenue: 1.48M$ / Month
Staff: 86

Dubai 5 Star Luxury

Initial Investment: 68.01M$
# Rooms: 147
Product Life Cycle: 63 months
Construction Time: 18 months

Room Rate: 350$
Room Revenue: 1.55M$ / Month
Staff: 90

London 5 Star Luxury

Initial Investment: 62.83M$
# Rooms: 136
Product Life Cycle: 63 months
Construction Time: 18 months

Room Rate: 350$
Room Revenue: 1.43M$ / Month
Staff: 83

Los Angeles 5 Star Luxury

Initial Investment: 66.53M$
# Rooms: 144
Product Life Cycle: 63 months
Construction Time: 18 months

Room Rate: 350$
Room Revenue: 1.51M$ / Month
Staff: 88

New York 5 Star Luxury

Initial Investment: 88.70M$
# Rooms: 192
Product Life Cycle: 63 months
Construction Time: 18 months

Room Rate: 350$
Room Revenue: 2.02M$ / Month
Staff: 117

Paris 5 Star Luxury

Initial Investment: 81.31M$
# Rooms: 176
Product Life Cycle: 63 months
Construction Time: 18 months

Room Rate: 350$
Room Revenue: 1.85M$ / Month
Staff: 107

Mumbai 5 Star Luxury

Initial Investment: 67.76M$
# Rooms: 147
Product Life Cycle: 63 months
Construction Time: 12 months

Room Rate: 350$
Room Revenue: 1.54M$ / Month
Staff: 89

Riyadh 5 Star Luxury

Initial Investment: 61.29M$
# Rooms: 133
Product Life Cycle: 63 months
Construction Time: 18 months

Room Rate: 350$
Room Revenue: 1.39M$ / Month
Staff: 81

Doha 5 Star Luxury

Initial Investment: 55.24M$
# Rooms: 120
Product Life Cycle: 63 months
Construction Time: 18 months

Room Rate: 350$
Room Revenue: 1.26M$ / Month
Staff: 73

Bahrain Star Luxury

Initial Investment: 58.15M$
# Rooms: 126
Product Life Cycle: 63 months
Construction Time: 18 months

Room Rate: 350$
Room Revenue: 1.32M$ / Month
Staff: 77

Macao Wellness SPA

Initial Investment: 66.24M$
# Rooms: 120
Product Life Cycle: 69 months
Construction Time: 18 months

Room Rate: 400$
Room Revenue: 1.44M$ / Month
Staff: 92

Mauritius Wellness SPA

Initial Investment: 72.86M$
# Rooms: 132
Product Life Cycle: 69 months
Construction Time: 18 months

Room Rate: 400$
Room Revenue: 1.58M$ / Month
Staff: 101

Maldives Wellness SPA

Initial Investment: 69.55M$
# Rooms: 126
Product Life Cycle: 69 months
Construction Time: 18 months

Room Rate: 400$
Room Revenue: 1.51M$ / Month
Staff: 97

Marketing Campaigns
City Campaign	Business Campaign	5 Star Campaign	SPA Campaign

Monthly Costs: 100K$ Validity 6 months	Monthly Costs: 100K$ Validity 6 months	Monthly Costs: 100K$ Validity 6 months	Monthly Costs: 100K$ Validity 6 months
City Budget: Demand +10.0%	Business: Demand +8.0%	5 Star Luxury: Demand +6.0%	Wellness SPA: Demand +8.0%

Online Reservation System	Yield Management System	Chef Training School	Training Centre

Investment: 3.00M$ Construction Time 6 months	Investment: 4.00M$ Construction Time 6 months Prerequisite: Online Reservation System	Investment: 2.00M$ Construction Time 6 months	Investment: 2.50M$ Construction Time 6 months
Demand +5.0% G&A Expenses +10.0%	Room Rate +8.0% G&A Expenses +10.0%	G&A Expenses +8.0% Wellness SPA: Demand +10.0% Business: Demand +8.0% 5 Star Luxury: Demand +6.0%	Staff Expenses -6.0% G&A Expenses +8.0% Training Efficiency +10.0%

Simulation Parameters

Prime Interest Rate	3.00%
Income Tax Rate	30.00%
Payable Days	30 days
Receivable Days	40 days
Average Salary	5,000$
Hiring Cost	5,000$
Layoff Cost	10,000$
Annual Training Cost	3,000$