|ASSESSMENT 3 – Investment Pitch|
|Subject Code and Title||HOT301 Hospitality Entrepreneurship|
|Assessment||Assessment 3 – Investment Pitch|
- Forecast and justify future performance of a hospitality entrepreneurial venture.
- Critically evaluate key elements that influence the success of a hospitality entrepreneurial venture.
|Total Marks||100 marks|
Entrepreneurs are rarely successful on their own, they know when to partner with stakeholders to execute, operationalize or fund their vision in order to make their business idea a reality. All businesses rely on the interplay of their stakeholders being productive in order to yield the business outcomes necessary for the business to thrive. Investors are one such stakeholder who provide the capital required for entrepreneurs to fund the creation or maintenance of their business. Investors number one priority is a return on their investment and usually receive incentives to encourage for their initial involvement. The relationship between entrepreneurs and their investors must be based on the values of integrity and transparency for the relationship to be sustainable, this is facilitated through the preparation and presentation of financial and strategic data.
Student will complete this assessment in the groups formed for Assessment 2. Over the last 5 years, the group has implemented a number of strategies in an attempt to improve the financial and operational performance of the hotel. The group is now looking towards the future and considering new markets and opportunities to support future growth and innovation. The hotel currently does not have adequate funds to implement new strategies, so the group has decided to pitch their growth plan to investors to seek a capital injection.
The investors have already reviewed the Business Performance Analysis (Assessment 2) so have a clear understanding of the hotel’s current financial performance.
Students are required to present their investment pitch to the investor, addressing the following criteria:
- Provide a brief overview of hotel facilities & the location (as chosen in Assessment 2).
- Considering the location, select one (1) customer segment from the list below that the hotel is planning to pursue. Discuss the characteristics that make this group unique as consumers.
- Bleisure travellers
- Empty nesters
- Multi-generational families
- Outline two (2) emerging consumer trends that the hotel could leverage to expand revenue streams.
- Develop at least three (3) financial targets to be achieved within the next 5 years. These targets should align to the SMART goal principle.
- Incorporating all of the above, propose at least three (3) strategies that the hotel will implement if investment funds are secured. These strategies should be impactful, bold, and innovative.
- Indicate the total investment amount, providing a breakdown of capital required for each strategy.
- Offer attractive financial incentives to the investors to secure their support, e.g., percentage return on investment, guaranteed payback period, profit-sharing arrangement, prioritisation for future investment opportunities, etc.