The document summarizes Banyan Tree Resort's plans to expand to Palawan, Philippines. It discusses the company's background and mission, an analysis of Palawan's environment, and a proposed development plan. The resort aims to open in March 2010 with an investment of $92 million. Financial forecasts predict profitability within 6 years. Goals include receiving 10 awards by 2013 and becoming one of Banyan Tree's flagship locations.

2. Banyan Tree Resort Expansion Banyan Tree Resort Expansion To the pristine island of Palawan, Philippines … Keith Bergh, Brianne McElhiney, Patti Grandidge, Kari Goebel April 16th, 2008

3. What is our Business?

4. Company Background Banyan Tree’s Mission Statement: “We want to build a globally recognized brand which by inspiring exceptional experiences among our guests, instilling pride and integrity in our associates and enhancing both the physical and human environment in which we operate, will deliver attractive returns to our shareholder.”

6. Development, Management, & Ownership of luxury Resorts, Spas, & Hotels

7. Received over 300 Awards

8. Dedicated to Preserving the Environment

10. 312.257M USD Total

11. Net Profit in 2007

12. 75.831M USD

13. Stock prices continuing to rise at steady rate

14. Due to future development & expansion

15. Issued 16,000,000 New Shares last year

16. Issue 15,000,000 for this year

17. Current Ratio: 6.11

19. Social Forces Demographics Population: 91 Million Age Structure 0-14: 34.5% 15-64: 61.3% 65+: 4.1% Birth Rate: 24.48/1,000 Life Expectancy: 70.51 Median Age: 22.7 Population Growth Rate: 1.764% Death Rate: 5.36/1,000 Fertility Rate: 3.05

20. Social Forces Culture Family-based Groups Materialism & Leisure Motivated to Work Hard Religions 80.9% Roman Catholic Language Filipino & English

21. Economic Forces Macro Effects (Philippines) GDP Average Growth since 2001: 5% 2007: 7% $144.13B USD (2007) PPP 298.9B USD (2007) BOP 1.9B USD (2007) Unemployment is about 7.3% (2007) 30% of pop. is under poverty line (2003) “First World Country” by 2020

22. Economic Forces Micro Effects (Banyan Tree) 2005 2006 2007 Revenues $187.3 $335.3 $429.9 (in millions) 2005 vs. 2006-79% increase 2006 vs. 2007- 26% increase 2005 2006 2007 Total Expenses $153.4 $224.9 $301.6 (in millions) 2005 vs. 2006-57% increase 2006 vs. 2007- 34% increase

23. Technological Forces Innovation/Changes Tropical Garden Spa Restaurants Facilities Classes Rooming Upgrades Integration of Electronic Systems

24. Competitive Forces Competitive Environment Driven by Business & Tourist Travel Smaller companies stay competitive through destination & premium service Hoover’s Top 5 List of Upscale/Luxury Hotel Companies: Marriott International Inc. Global Hyatt Corporation Hilton Hotels Corporation Starwood Hotels & Resorts Worldwide, Inc. Wyndham Worldwide Corporation

25. Regulatory Forces Philippine Environmental Impact Statement Labor Code Philippine Immigration Act Business Registration Procedures

26. Political Forces WWII: Japan Rule 1946: Independence 1965-1988: Ferdinand Marcos Suppression of democratic institutions, corruption & restriction of civil liberties 1988: Corazon Aquino Less effective to stabilize nation 2001: Gloria Macapagal-Arroyo Economic Growth Still Poverty Problems Terrorist Threats

27. Natural Forces/Acts of God Philippines Typhoons & Cyclonic Storms Volcanoes Earthquakes Tsunamis Palawan Generally safe from natural disasters, but must always prepare for the worst

28. S.W.O.T Analysis

29. Strengths Natural Sanctuary Transportation & Travel Communication Peace & Order First Aid Testimonies Company Growth & Health

30. Weaknesses Politics & Corruption Economic Instability Natural Hazards Current Environmental Issues Disease

31. Opportunities Global Prospect for Hospitality Investment Natural Environment Wellness Vacations Palawan’s Development Program

33. Clientele Similar to Banyan Tree

37. Legal Concerns

39. Government Intervention

42. Pegged to the US Dollar; Minimize Peso fluctuation

43. Standard Beach Villa: $350 USD - $550 USD

44. Beach Villas w/ Plunge Pools: $450 USD - $650 USD

45. Duplex Beach Villas: $800 USD - $1000 USD

47. Seasonal (Low-Season)

48. Quantity

50. For imported wines, beers, certain foods, accommodation necessities at other resort locations

51. JIT System

52. Reduce inventory costs of goods

53. Need a communicative & cooperative supply chain

55. Travel Magazines, Billboards, Select Internet Sites

56. Standardized with minimal changes to adapt to the culture

57. Public Relations

59. Travel Agents

60. Suggest to Clients

62. Positioned towards target market

63. Wealthy Families

64. Retired Couples

65. Honeymooners

69. Costs & Timeline

70. Cost of Development 92M USD Capital 60M from Banyan Tree Holdings Limited 32M loan

71. Timeline Gantt Chart Would like to open March 2010 Quick process to stay ahead of other new entries

72. Forecast & Future .Outcomes

73. Financial Forecast Operating Expenses increase 1.16% a year Based on Inflation Increases Make profit and pay off debt and loan after 6 years

75. Including membership into the “Leading Hotels of the World”

76. Featured in write-ups and travel documentaries

77. Credentials & Recognition from Government

78. For Social Responsibility & Attracted Tourists as FDI

79. Average Daily Occupancy Rate: 75%